Basic information
Outline of the system
Imports of natural gas and electrical energy are regulated by the Law “On Licensing” of the Republic of Armenia (hereinafter referred to as RA), the Law "On Energy" of the RA and the Public Services Regulatory Commission Decree No. 24 of 3 April, 2002 “On Approval of the temporary order of the licensing for import and export of natural gas and electrical energy in the power engineering sector of the Republic of Armenia”.
Product coverage
Imports of natural gas and electrical energy are subject to non-automatic licensing.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The import licensing system is not intended to restrict the quantity of imports. The licensing purposes to protect the consumers’ rights, to support the regulation of developing market relations, to increase the quality of products and services and to administer control over persons engaged in the types of activities that are potentially most risky as threatening to the life and health of individuals, property, state and public interests.
Questions for products under restriction as to the quantity or value of imports
There are no quantitative restrictions.
The system applies to products originating from which country?
The system applies to goods originating in (intended for export) and coming from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The licensing is statutorily required. The licensing is regulated by the Law "On Licensing" of RA, Law "On Energy" of RA and the Public Services Regulatory Commission Decree No. 24 of 3 April 2002 "On Approval of the temporary order of the licensing for import and export of natural gas and electrical energy in the power engineering sector of the Republic of Armenia".
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The legislation does not leave designation of products subject to licensing to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
The government can not abolish the system without a legislative approval.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Only legal persons are eligible to apply for a licence.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
License for Energy.pdfWhat documents is the importer required to supply with the application?
The following information is required in an application:
(a) A copy of a charter;
(b) A copy of a state registration certificate;
(c) Information about stockholders and their shares;
(d) The financial statement of common nature of a firm (if available also the copies of the inspection acts made by other bodies and auditor's conclusion of a firm made up during last year);
(e) Outline contract (agreement) on import concluded with a foreign dealer or memorandum of intentions about import or a final contract on import which will be considered to be in force from the point of obtaining an import licence;
(f) The conclusion of the system operator about the possibility of realizing the proposed regimes of importation;
(g) Financial guarantees according to the order established by the Commission;
(h) A receipt of state duty payment in accordance with the Law "On State Duties" of the RA.
Window of submission of an application
How far in advance of importation must application for a licence be made?
To obtain a licence an applicant shall submit the application and all necessary documents to the Public Services Regulatory Commission of the RA. The Commission shall consider the application and shall adopt a decision within 60 days from the date when all the required documents are submitted by an applicant. There is no time-limit for submitting an application.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations as to the period of the year during which an application for a licence and/or importation may be made.
Issuing the license
Can a licence be granted immediately on request?
There are no circumstances under which a licence can be granted immediately on request.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
Only the Public Services Regulatory Commission of the RA shall consider the application for a licence and adopt a final decision.
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
No, there are no other conditions attached to the issue of a licence.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
As provided by the Law "On State Duties" of RA AMD 10,000,000 (Armenian Dram) must be paid for a licence.
Is there any deposit or advance payment required associated with the issue of licences?
A legal person applying to the Commission for obtaining an import licence shall submit financial guarantees, by which the legal person or the guarantee are obligated to transfer the defined sum to the state budget of the RA.
Amount or rate?
The amount of the financial guarantee for obtaining an import licence comprises 10 million Armenian Drams.
Is it refundable?
In case of meeting the requirements set out in the licence, the Commission adopts a decision on reimbursement of the financial guarantee.
What is the period of retention?
It is guaranteed for the whole period of importation.
What is the purpose of this requirement?
It is a financial penalty, in case the legal person or the guarantee do not meet the requirements of the licence in the due manner.
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
The application for a licence shall be refused if:
(a) An applicant is adjudicated a bankrupt or insolvent;
(b) The specifications set out in the application do not comply with the technical requirements operating in the RA;
(c) In case of issue of a licence the right of another licence holder is limited;
(d) An applicant does not submit the required additional information or documents or the additional decision of the commission of experts, the absence of which do not permit to continue the consideration of the application;
(e) Documents or information submitted by an applicant are defective, obviously false or distorted and do not comply with the legislation of RA;
(f) The import or export may result in security and safety distortions of the power system as well as the rise of the statutory prices of natural gas and electrical energy sold to consumers of RA.
Are the reasons for any refusal given to applicants?
The reasons and legal bases for the refusal to issue a licence are clearly laid down in the decision on the refusal of the application for a licence which is given to the applicant in the due manner.
Have applicants a right of appeal in the event of refusal to issue a licence?
Applicants have a right of appeal.
If so, to what bodies and under what procedures?
The decision on the refusal of the application may be appealed to a court according to the legislation of RA.
Importation
Are there any limitations as to the period of year during which importation may be made?
There are no limitations as to the period of the year during which an application for a licence and/or importation may be made.
What documents are required upon actual importation?
See point 10 above.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Administrative procedures are stipulated by the acquisition of the required documents for obtaining a licence designated in point 10 of this document.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Import licences are mainly granted according to the date specified in the contract of import concluded with a foreign dealer. In case of necessity of the extension of the validity period of a licence, the licence holder shall apply to the Commission at least 15 working days before the end date of the validity of a licence, designating the time required.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
If licence holders breach the requirements of the Law "On Energy" of the RA, do not meet or fulfil inappropriately or violate the requirements of the legal acts of the Commission and of the licences, the Commission is eligible to commission with the elimination of the violations and apply the following penalties:
- Warning;
- Tariff reduction;
- Suspension of a licence operation;
- Deprivation of a licence.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between importers. A licence does not apply to the other legal persons jointly working with a licence holder, as well as to the legal persons established and acting by the participation of a licence holder.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.