PVDZ Reports Violations at the Ministry of Economy and the State Revenue Committee

The Republic of Armenia's State Supervisory Service (PVDZ) has identified a number of violations following an investigation linked to the Ministry of Economy and the State Revenue Committee. According to PVDZ's press service, between 2018 and 2022, over 381 tons of used catalytic converters containing precious metal waste were exported from Armenia to third countries by 11 companies.

"During this period, the Ministry of Economy failed to evaluate the credibility of the information presented in the license applications submitted by organizations for the export of ceramic waste and issued export licenses despite the fact that the acquisition costs as well as the prices indicated for sale were significantly lower than the market minimum values—almost 10 times lower," the PVDZ statement noted.

It was also found that the quantities of precious metals reported were significantly understated. Furthermore, despite the increase in prices for precious metals, the quantities reported in the findings were correspondingly lower. As a result, the value of the exported product remained unchanged.

The customs authority also failed to exercise proper customs control regarding the export process of ceramic waste and the mandatory license requirements, and no customs examinations were ever initiated. In 87 cases, the export of ceramic waste was carried out without the state oversight act established by the government, and in 66 cases, the state oversight acts presented in the export packages did not characterize the entire scope and characteristics of the exported goods and batches.

"The investigation also revealed that between 2015 and 2018, two organizations exported approximately 28 tons of ceramic waste from Armenia to third countries in 22 batches without an export license or a state oversight act," PVDZ reported.

Based on market minimum prices, the total value of ceramic waste exported from Armenia to third countries from 2018 to 2022 would amount to around 26 billion AMD, which would generate a tax liability of about 5.5 billion AMD. Meanwhile, the values presented in the export documentation clearly did not match reality.

In response to the recorded violations, PVDZ has submitted appropriate recommendations to the Ministry of Economy and the State Revenue Committee. Considering that some violations may contain signs of apparent criminal offenses, the compiled reports have been submitted to the Prosecutor General's Office of Armenia to ensure further proceedings.