Armenia Import Tax

Armenia, located in the South Caucasus region, maintains a diverse and structured tariff regime that plays a crucial role in regulating imports, protecting domestic industries, and generating government revenue. As a member of the Eurasian Economic Union (EAEU), Armenia follows a unified customs tariff system alongside other member countries such as Russia, Kazakhstan, Belarus, and Kyrgyzstan. The country’s tariff system is designed to protect key sectors of the economy, such as agriculture and manufacturing, while ensuring the availability of essential goods at competitive prices. Armenia’s trade policies are also shaped by its bilateral and multilateral trade agreements, which provide preferential tariffs for imports from specific countries or regions.

Custom Tariff Rates by Product Category in Armenia

1. Agricultural Products

Armenia’s agricultural sector is vital for its economy, employing a significant portion of the population and contributing to rural development. To protect local farmers and boost domestic production, Armenia applies tariffs on a variety of imported agricultural products. However, the country still imports a large quantity of food products to meet domestic demand, and tariffs vary depending on the type of product.

1.1 Basic Agricultural Products

• Cereals and Grains: Armenia imposes relatively low tariffs (0% to 5%) on imports of basic staples such as wheat, rice, and corn, to ensure food security and affordability.
• Vegetables and Fruits: The tariff rates on fresh produce vary depending on seasonality and local supply.
  • Potatoes and onions: 10% to 15%
  • Citrus fruits (oranges, lemons): 15% to 20%
  • Apples, pears, and other fruits: 10% to 15%
• Sugar and Sweeteners: Imports of sugar are subject to a 5% to 10% tariff, while other sweeteners may face tariffs up to 15%.

1.2 Livestock and Dairy Products

• Meat and Poultry: Meat imports, including beef, chicken, and pork, are generally taxed at 10% to 20% to protect the local meat industry.
• Fish and Seafood: Fish and seafood imports are subject to tariffs of 5% to 10%, with lower rates applied to fresh fish.
• Dairy Products: Dairy items such as milk, cheese, and butter are taxed at rates between 10% and 20%, depending on the type and processing level of the product.

1.3 Special Import Duties

Armenia, as part of the Eurasian Economic Union (EAEU), applies a common external tariff to agricultural imports from non-member countries. However, goods imported from EAEU member countries benefit from zero tariffs. Armenia also has trade agreements with countries such as Iran and members of the Commonwealth of Independent States (CIS), which may result in reduced or preferential tariff rates on certain agricultural products.

2. Industrial Goods

Industrial goods represent a significant portion of Armenia’s imports, particularly machinery, equipment, and construction materials. Tariffs on industrial products are designed to protect local industries while allowing access to necessary technologies and materials.

2.1 Machinery and Equipment

• Industrial Machinery: Tariffs on industrial machinery used in sectors such as construction, manufacturing, and mining typically range from 5% to 15%, depending on the type of machinery.
• Electrical Equipment: Tariffs on electrical equipment, including generators, transformers, and industrial-scale electronics, are generally 10% to 20%.
• Construction Equipment: Heavy machinery for construction projects, such as cranes, excavators, and bulldozers, may be taxed at rates between 5% and 15% to support infrastructure development.

2.2 Motor Vehicles and Transportation

Armenia applies tariffs on imported motor vehicles to regulate the market and promote environmental sustainability, with higher tariffs on luxury and large-engine vehicles.

• Passenger Vehicles: Import tariffs for passenger vehicles vary depending on engine size:
  • Small vehicles (under 1,500cc): 10% to 15%
  • Larger vehicles (over 2,000cc): 20% to 30%
• Commercial Vehicles: Trucks, buses, and other commercial vehicles are subject to tariffs ranging from 5% to 15%, depending on the type and use of the vehicle.
• Vehicle Parts and Components: Tariffs on vehicle parts and accessories, such as tires, batteries, and engine components, range from 5% to 15%.

2.3 Special Import Duties for Certain Countries

As part of the EAEU, Armenia applies preferential tariffs on industrial goods imported from other member states, resulting in zero tariffs for most products from these countries. For non-EAEU countries, the common external tariff applies, which may be higher, especially for products from regions like the European Union (EU) and Asia.

3. Textiles and Apparel

The textile and apparel industry in Armenia is small but growing, with a focus on traditional crafts and garment manufacturing. Tariffs on imported textiles and finished clothing are designed to protect local producers and encourage domestic production.

3.1 Raw Materials

• Textile Raw Materials: Imports of raw materials such as cotton, wool, and synthetic fibers used in the production of clothing are subject to low tariffs (0% to 5%) to support local manufacturers.

3.2 Finished Clothing and Apparel

• Clothing and Apparel: Finished clothing imports, including garments, outerwear, and accessories, are subject to tariffs of 15% to 30%.
• Footwear: Imported footwear faces tariffs ranging from 15% to 25%, depending on the type of footwear and the material used.

3.3 Special Import Duties

Textiles and apparel imported from EAEU countries are exempt from tariffs under the common market agreement, while those imported from other regions may be subject to the common external tariff applied to non-EAEU countries.

4. Consumer Goods

Consumer goods represent a significant share of Armenia’s imports, especially electronics, household goods, and personal care products. The government imposes variable tariffs on these items, balancing the need to generate revenue with ensuring access to essential goods.

4.1 Electronics and Home Appliances

• Household Appliances: Import tariffs on home appliances such as refrigerators, washing machines, and air conditioners range from 10% to 20%.
• Consumer Electronics: Electronics, including televisions, laptops, and smartphones, are subject to tariffs ranging from 10% to 15%, with higher rates applied to luxury brands and high-end models.

4.2 Furniture and Furnishings

• Furniture: Imported furniture, including home and office furniture, is generally subject to tariffs of 10% to 25%, depending on the material and design.
• Home Furnishings: Items such as carpets, curtains, and home decor are taxed at 15% to 20%.

4.3 Special Import Duties

Consumer goods from EAEU countries are generally exempt from tariffs, while those imported from non-EAEU countries are subject to Armenia’s common external tariff, which ranges depending on the product and its classification.

5. Energy and Petroleum Products

Armenia imports most of its energy and petroleum products, with tariffs aimed at ensuring affordable prices while generating revenue for the government.

5.1 Petroleum Products

• Crude Oil and Natural Gas: Armenia imports crude oil and natural gas with low tariffs (0% to 5%) to maintain a stable energy supply.
• Refined Petroleum Products: Gasoline, diesel, and other refined petroleum products are generally subject to tariffs of 5% to 10%, depending on the type and usage.

5.2 Renewable Energy Equipment

• Solar Panels and Wind Turbines: To promote renewable energy projects, Armenia applies low tariffs (0% to 5%) on equipment used for solar and wind energy installations.

6. Pharmaceuticals and Medical Equipment

Armenia places a strong emphasis on ensuring affordable healthcare for its population, resulting in low or zero tariffs on essential medicines and medical equipment.

6.1 Pharmaceuticals

• Medicines: Essential medicines are generally exempt from tariffs, with zero tariffs applied to life-saving drugs. Non-essential pharmaceutical products may face tariffs of 5% to 10%.

6.2 Medical Devices

• Medical Equipment: The importation of medical devices, including diagnostic tools and hospital equipment, is subject to low tariffs (0% to 5%) to ensure access to healthcare services.

7. Special Import Duties and Exemptions

7.1 Special Duties for Non-EAEU Countries

For countries outside the Eurasian Economic Union (EAEU), Armenia applies the common external tariff, which may result in higher tariffs compared to imports from EAEU countries. However, Armenia has also signed bilateral agreements with several countries, including Iran and CIS member states, which may provide preferential tariff rates for certain products.

7.2 Bilateral and Multilateral Agreements

Armenia benefits from several free trade agreements (FTAs) and preferential trade arrangements that influence its tariff structure. Notable agreements include:

• Eurasian Economic Union (EAEU): Armenia benefits from zero tariffs on most goods traded with other EAEU member states.
• Commonwealth of Independent States (CIS): Armenia has preferential trade agreements with CIS countries, which often result in reduced tariffs for goods imported from these countries.
• GSP (Generalized System of Preferences): Armenia benefits from the GSP program with the European Union, which allows for reduced tariffs on a wide range of products imported from the EU.

Country Facts

• Official Name: Republic of Armenia
• Capital City: Yerevan
• Largest Cities:
  • Yerevan (Capital and largest city)
  • Gyumri
  • Vanadzor
• Per Capita Income: Approx. $4,600 USD (2023 estimate)
• Population: Approx. 3 million (2023 estimate)
• Official Language: Armenian
• Currency: Armenian Dram (AMD)
• Geographical Location: Armenia is located in the South Caucasus region, bordered by Georgia to the north, Azerbaijan to the east, Iran to the south, and Turkey to the west.

Geography of Armenia

Armenia is a landlocked country with a mountainous terrain, making it one of the most rugged regions in the world. It covers an area of 29,743 square kilometers, and its diverse geography includes mountains, rivers, and fertile valleys.

• Mountains: Armenia is part of the Caucasus Mountains, with Mount Aragats being the highest point at 4,090 meters.
• Lakes: Armenia is home to Lake Sevan, one of the largest freshwater high-altitude lakes in the world.
• Climate: The country experiences a continental climate with hot summers and cold winters, which varies across regions.

Economy of Armenia

Armenia has a developing economy that has shown resilience despite regional challenges. The economy is largely based on services, industry, and agriculture, with increasing emphasis on high-tech industries.

1. Agriculture

Agriculture accounts for a significant portion of Armenia’s GDP, employing a large part of the population. The country produces fruits, vegetables, and livestock products, but it still relies on imports to meet domestic food demand.

2. Mining and Industry

Armenia’s industrial sector is dominated by mining, which includes the extraction of copper, molybdenum, and other minerals. The country also has a growing manufacturing sector, with textiles, electronics, and food processing being important industries.

3. Services and Tourism

The services sector, including tourism, is a major driver of the Armenian economy. Yerevan, in particular, attracts tourists due to its historical sites, cultural attractions, and proximity to natural landmarks like Mount Ararat.

4. High-Tech Industry

Armenia has been positioning itself as a hub for high-tech and information technology (IT) industries, with growing numbers of startups and IT companies contributing to economic growth.