New Regulation on Dual-Use Products in Armenia

Current Situation and the Need for Legislative Action

The import, export, and transit of military and dual-use goods in Armenia required obtaining licenses and permits. To classify goods within these categories, businesses needed examinations from accredited organizations. These examinations determine if goods align with government-designated lists from RA Government Decisions N 1308-N (2009) or N 1785 (2011). However, a substantial portion of examined goods are found to lack military or dual-use purposes, yet still require examination to complete customs declarations, adding unnecessary financial and administrative costs. Accredited companies charge fees of 48,000 to 60,000 AMD per examination, which can burden businesses.

The State Revenue Committee (SRC) publishes lists of goods considered non-military and non-dual-use to alleviate some of these burdens. However, no legal framework defined the criteria, frequency of updates, or legal standing of this list, leading to inconsistencies and limited formal impact on business operations.

Nature of the Proposed Regulation

The proposed legislation seeks to formalize the publication of a non-dual-use list for goods that have undergone examination and were not classified as military or dual-use. This would streamline customs procedures and reduce administrative costs, particularly benefiting technology companies. The legal framework aims to eliminate redundant examinations, promoting a more efficient business environment.

Expected Outcomes

After the adoption  of the reform, it is anticipated to reduce administrative and financial costs associated with re-examinations of non-dual-use goods. Additionally, the draft legislation requires the SRC to update its list of controlled goods and assets when changes occur, ensuring businesses have accurate, up-to-date information to guide compliance.

Development Process

The RA Ministry of High-tech Industry spearheaded this project, collaborating with the EBRD’s Investment Council of Armenia and the RA Ministry of Economy.

Alignment with Strategic Documents

This legislative effort aligns with Armenia's "SME Development 2020-2024 Strategic Action Plan," specifically under its objective to evaluate and simplify administrative burdens for SMEs, as outlined in Government Decision N 1443-L (August 27, 2020).