Statistics and Development Trends

678.1

Import,

million USD

300

2000 2003

1269.4

2000 2003

840

Railway cargo transportation is increased by 5.3 % against 2002 and made up 2125.5 thous. tones

Export, million USD

Railway cargo turnover is raised by 17.1% against 2002 and totaled 529.2 million tones/km

17 % growth in cargo turnover in 2003 –the highest indicator among CIS countries

SIMPLE SIMPLE

Transit Customs Declaration(TCD) /3copies

Transit Customs Declaration(TCD) /3copies

Exit Customs PointExit Customs PointTime of Transit

Shipment (10 days)Time of Transit

Shipment (10 days)

Verification of dataVerification of data

If Yes: Export If Yes: Export

If No:Transit Banned

If No:Transit Banned

Transit Procedures in Armenia

Simple

Change By

Transport Mode

Complicated

Armenia permits unimpeded and tax free transit of goods

Transit Procedures in Armenia

TRANSIT

ComplicatedBy Changing of Transport Mode

Entry into free Warehouse

Entry into FreeCustoms

RE-exportRe-export

Shipment Manifest

(Customs sequrity) Transit Shipment Declaration for Cargo subject to transit (3 copies)

Intermediary Customs House

Simple

For customs convoy of goods via the territory of the Republic of Armenia the Customs Fee is collected at 10,000 drams per 100 km. In the event that the vehicle of transit shipment and customs safeguard is broken, the customs convoy of goods is compulsory, while in the other cases it is performed at the forwarder's request in writing

Transit Achievments

TRACECA TRACECA

Common Legal Basis for Transit Transportation

Common Legal Basis for Transit Transportation

Transit Fees and TariffsTransit Fees and TariffsHarmonization of Border

Crossing Procedures

Harmonization of Border Crossing Procedures

Modern technical standards for road vehicles and operations

Modern technical standards for road vehicles and operations

Road transit fees, commercial analysis, cost accounting methodology

Road transit fees, commercial analysis, cost accounting methodology

Model documents, training , Institute of Customs Brokers Model documents, training ,

Institute of Customs Brokers

Legal: Transit shipment of goods and means of transportation via the RA is regulated by Articles 27, 28 of the RA

Customs Code and by the RA Government Decree N 887, which are in full conformity with Article V of the GATT 1994

on Freedom of Transit

Institutional: The RA joined TIR International Convention in September 1993; Full Membership of European

Conference of Transport Ministers (April 2003)

Infrastructure: Construction of Kajaran Tunnel; Opening of new transport terminal at the Iranian-Armenian border (v.

Norduz) in 2004; construction of Bagratashen-Marneli road is under construction

Development of PPP in transport sector: Establishment of Business Council chaired by Prime Minister, ArmPro

Committee for TTF, Armenian International Road Carries Association (AIRCA)

Transit Bottlenecks via Armenia

Problems Problems

Legal Legal Infrastructure Infrastructure Finance Finance Capacity BuildingCapacity Building

11 22 33 44 55 66 77 88

2. Weak legal environment for Freight Forwarders

3. Shortage of tracks meeting international standards

4. Absence of modern information system

5. Lack of state budget funding to maintain and recover physical infrastructure 6. Poor record in traffic safety 7. Lack of management skills8. Weak institutional capability in all levels of public administration

1. Armenia is not signatory to International Convention on Freight, Convention on trade transit of land locked countries, Convention on free

transit status, etc.

Transit Bottlenecks via Georgia Not providing with MFN and National Treatment status to

Armenia; filer of bilateral interstate auto-transport agreement for exemption of customs duties in Georgia within specified quotas

Mistreatment of transportation means under the TIR carnet Mandatory announcement of data in Commercial invoice Application of two types of transit customs declarations Excessive paperwork for Phytosanitary and Veterinary control

procedures for Armenian imports takes about 2-3 days with extra payments

Special permission for transit of double-purpose goods Special permission for excise goods Various approaches in identification of excise goods across

Georgia Unclear approach in identification of overloaded tracks, which

lead to additional payments totaled $ 250-300 Numerous checking points, extensive delays while customs

procedures, Mandatory Convoy Service and Georgian Insurance, unofficial payments

Freight-forwarding companies pay CCD fees and port charges in USD instead of lari.

Backlog in maintenance, absence of modern information system

PROBLEMS

LEGAL

PROCEDURS

INFRASTRUCTURE

Georgian Interstate Road Status Bagratashen-Marneli 30- km poor road

Transport Problems

Unresolved political and border disputes Weak local and regional legal framework for transport

sector along with weak execution of existing Laws and regulations

A severe shortage of funds to maintain and improve infrastructure, especially technical re-equipment of Railway

Very high logistics cost ( the highest in the region and in average twice higher than in the rest of the world)

Underdeveloped Multimodal transport, due to the lack of economy of scale, imperfect legal environment, absence of logistics centers, complicated border crossing procedures

Non trade barriers

Transport Development Policy The market economy dictates new directions toward development of comprehensive Transport policy:

To set up legal environment (currently new transport Law package is under consideration in the Government )

To further develop transport infrastructure (Construction of railway line Vanadzor-Fioletovo (21 km)

Capacity Buliding in Transport sector

INFRASTRUCTURE & FINANCE

CAPACITY BUILDING

LEGAL

From National Development to Regional Integration

Establishment of the necessary political will as a foundation stone upon which all other factors have to rest Perfection of transport and trade legal framework across region

Construction and upgrading of roads and railway lines and installation of related combined transportation

Harmonization of Customs Procedures across borders

Improvement in coordination of international organizations (ECMT, UN ECE, UC, WB, EBRD, and others) to maximize synergy and minimize overlapping activities in the region

Human capital development, constant coordination of educational programs in all levels across region

Conclusion: We have to work toward evaluation of mutual benefits and

come up with solutions targeted at further transport integration by

enlarging our scope of work considering harmonized customs

procedures within the unified legal environment along with growing

demand for combined shipment, multimodal transport and

international logistics.