4th December 2024

Assistance program for certifications of the Armenian producers. IC Armenia new reform

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The purpose of the adoption of the assistance program in the form of the Government Decree is to partially compensate for the costs of certification in accordance with the requirements of quality management systems implemented for the production of products and (or) payments for consultant services, which will contribute to increasing the competitiveness of Armenian products, expanding the geography of trade, diversifying trade markets and ensuring access to foreign markets. At the initial stage of entering international markets, entrepreneurs are faced with the problem of costs associated with the introduction of a quality management system in the organization of the production process. They are often disproportionately large in relation to sales volumes, but are important and can serve as a guarantee of compliance of the product with minimum safety standards, and in some cases, to prove its high quality and competitiveness. The provision of support will contribute to the diversification of trade and to the successful promotion of products in new markets.

Discussions with businesses indicate that there is a growing awareness of the importance of implementing quality management systems in production processes, the latter also being an important factor in negotiating the sale of Armenian products with various partners abroad. However, due to financial constraints, many are unable to implement such systems. Statistics also indicate that the number of companies in Armenia that have implemented internationally recognized quality management systems is small both in absolute terms and in comparison with competing and similar countries in international trade. In terms of the number of businesses with production quality management systems, Armenia lags behind all comparable countries, with the exception of Kyrgyzstan and Tajikistan. Under these conditions, the opportunities for diversification of trade markets are extremely limited, since for the Republic of Armenia, higher requirements for products and production processes operate outside the traditional markets, which are confirmed by assessment documents received from internationally recognized organizations - certificates. The certification process involves additional costs associated with obtaining advice, improving production organization processes, and payments for the certification process itself. As a rule, the certification contract is concluded for a period of three years, since an audit is planned to be conducted every year. The consulting fee is formed as follows: The average daily fee for an expert is 100,000 AMD. The minimum required is 45 working days (ISO 9001 and 14001), and in the case of ISO 22000 - about 120 days. In addition to the above costs, there is also a one-time certification fee (indicative amounts are provided in the project).Often, businesses do not have enough money to carry out the above processes, which prevents them from considering a wider geography of exports.

 

 

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The draft decree proposes to partially compensate for the costs of certification and (or) consulting services incurred by commercial organizations and individual entrepreneurs registered and actually carrying out activities in the Republic of Armenia, which carry out activities in the "Classifier of Types of Economic Activities" approved by the Order of the Minister of Economy of the Republic of Armenia No. 874-N of September 19, 2013, in groups 01.1 (Growing of non-perennial crops), 01.2 (Growing of perennial crops), 01.3 (Growing of seedlings and other planting materials), 01.4 (Animal husbandry) and 03.2 (Fish farming), in the "C (SI) Manufacturing" section (except for 18 "Printing activities, reproduction of recorded media", 33 "Repair of machinery and equipment" and installation) classes). Compensation is provided in the following amounts: a. In the case of ISO 9001 and ISO 14001 certificates, 100% of the certification cost (but not more than 1,000,000 (one million) AMD) and 50% of the payments made by the beneficiary for the consultant's services (but not more than 1, 500,000 (one million five hundred thousand) AMD),b. In the case of Global G.A.P., ISO 22000 and FSSC 22000 certificates, 100% of the certification cost (but not more than 1,500 thousand AMD) and 50% of the payments made by the beneficiary for the consultant's services (but not more than 3,000 thousand AMD),c. In the case of "organic", "bio" and "wild collection" certificates, 100% of the certification cost (but not more than 1,500 thousand drams).