The subject of “Aravot” online “Face to Face” program is debated by the Chairman of the Union of Exporters of Armenia, Raffi Mkhchyan, and the Minister’s Senior Advisor on International Economic Integration and Reform, Hovhannes Azizyan.
Lusine Budaghyan – On November 23, at the NA extraordinary session, Republican MP Aleksan Petrosyan expressed concern on behalf of businesses that the goods exported to Russia, when for some reason are brought back to Armenia, are taxable by VAT at the border of Armenia. Mr. Mkhchyan, do you share the concern of the parliamentarian and what other problems will you mention?
Raffi Mkhchyan – I do not know what problems Aleksan encountered, but generally, our global problem in the EaEU is related to the value-added tax (VAT), which was not thought about from the very first day of the EaEU and how we should work. I will bring a simple example. When we sell a product to someone and we do not know this person, we are obliged to export this product from Armenia on zero value, after that, within 180 days, the importer shall pay the VAT on this goods and give a reference on his payment and we shall submit to our tax authorities and will be able to return this VAT. What is the problem? At first glance, it seems like everything is normal, but generally it is not the case. When Russia sell a product to Armenia or to a local businessman, it demands paying the VAT, but we are forced to take the product out by the zero value. The first injustice incurs from here. The second problem is that we are unable to develop this job in the sense that when a person wants to import an Armenian product, and you force him to leave a deposit in the amount of 20% VAT, and when he will pay the VAT of my product in Russia and will give me a reference, I will return him this deposit, naturally, he does not agree with these terms and the deal does not take place. This is the main problem. On October 17, I had the opportunity to speak with Mr. Prime Minister, he said that there is a meeting in Kazakhstan and this issue will be resolved in 15 days. But I still do not see the solution of the problem.
L. B. – Mr. Azizyan, why weren’t these problems solved in advance so that the businesses does not have to appear in the red tape, and whether the meeting in Kazakhstan will solve this problem?
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Hovhannes Azizyan – The meeting in Kazakhstan was held and this issue was raised. It will be regulated within the EaEU, and as Mr. Mkhchyan mentioned, the regulation is about it. Initially, there were problems in three countries, in other words, it is the problem of the contracting partied, more trusting each other or working together, it was a problem of having a history. It also took time with them, but the problems in this regard were significantly reduced. Armenia is new to the EaEU, if they have worked together for a long time, there are no problems, but when a new supplier or a new importer appears, these problems arise because there is a certain lack of trust that the other side will implement the VAT liabilities and the corresponding reference will be given. In this respect, yes, these problems exist and the solution to the problem that we are trying to offer now is the fact that given that Armenia has no common border with the EaEU, they have tried to solve this problem with the help of one common document, which is the corresponding transit declaration, based on which we will fix that the problem is solved. Everybody understands what the solution is, but it is a certain peculiarity of Armenia in the EaEU area, and other EaEU countries, in any case, are trying to discuss and understand what consequence can this solution cause to them. The proposal was submitted and is in the stage of discussion, it implies a special clause to be included in the agreement, which will enable to solve this problem. We hope that by the end of the year we will come to a common agreement with all countries. The problem is as follows: all countries should agree to this scheme. Armenia is trying to substantiate that it will cause no harm to any other countries, given that Armenia has no opportunity for the border, and in any case, the goods reach the EaEU countries thru transit.
R. M. – I think that either our government officials do not dare to solve the issue with their partners on peer to peer, or do not want to deal with it. Mr. Azizyan said very well as we do not have a common border with the EaEU, we pass transit through Georgia. This transit imposes the customs authorities of Armenia to conduct a preliminary checking, publication of the declaration, final inspection, product dispense, and after doing all of this, our tax authorities must be confident as there are one body, one Ministry of Finance, and one ministry trust the other ministry, let them admit our export according to that declaration that was issued by their bodies, in other words, there is no problem here. The remaining countries, when they accept us as a member of the EaEU, they knew for sure that we have no borders and had to give us peculiarities to be able to maneuver in this Union. Today, we are trying to do our exports, but, we encounter problems everywhere. I conducted 2-3 monitoring and sending my product produced to Russia, I saw what problems we have and what difficulties our drivers have. The first promise of the government was that one separate green road will definitely be created for Armenian vehicles that are traveling to the Russian Federation, until now, nothing has happened. The second problem, if the Customs Union starts from the Russian border for us, it means that we should not be looked at the Russian border as I do not know what, we are robbed openly, I have personally seen it. I am not a member of any party, nor an opposition, nor a government authority. I am purely defending the interests of my exporters.
L. B. – How are they robbed …?
Raffi Mkhchyan – The vehicle gets there, makes a stop, a hairdresser collects these documents from everybody, checks, and everyone has to pay his shares of bribe to have their formulations done. This is very shameful if we are an EaEU members, the same customs area, we do not deserve such an attitude.
H. A. – I agree that the problems actually exist, an agreement was reached on Lars checkpoint during the last Armenia-Russian intergovernmental commission, and the Russian side informed us that these works are currently underway, and certain progress has already been made. Just one road is given, but they have promised that the work will be done, for which a definite deadline is fixed, and it is also fixed that the Russian side will solve these problems related to Larch checkpoint by the end of the year, even the proposals are presented with drawings. As for the question that we are weak in the EaEU, I think it is true. Our work experience has shown that they have the status of a full member, but any question needs to be agreed upon and this agreement process often requires certain time in some cases because different sides want to understand the solution of the problem whether it can harm them or not. In any case, they are guided by their own interests. Complete discussion below:
Lusine BUDAGHYAN, “Aravot” daily
