Large Customs Duties for Imported Cream and Butter in Armenia Not Paid Due to Fraud

The Investigative Committee of Armenia is investigating the circumstances surrounding the non-payment of particularly large customs duties, initiated under Article 290, Part 3, Clause 2 of the Criminal Code of the Republic of Armenia. The investigation reveals that S.H., a representative and actual head of the "AREN-GROUP" LLC, concealed taxable objects with fraudulent intent to avoid paying substantial customs duties required by the state budget.

Through extensive procedural and other evidentiary activities, as well as joint measures undertaken with the State Revenue Committee, it was established that S.H. concealed the subject of taxation with the aim of not paying a total of 170,897,286 AMD in customs duties. Specifically, he unlawfully imported a total of 283,250 kg of cream and butter, valued at 700,000 USD, into the territory of the Republic of Armenia on April 15, 2023, using eleven transit declarations. He allegedly did this under the name of a foreign legal entity based in the Islamic Republic of Iran, intending to sell it in Armenia, while violating provisions of the Eurasian Economic Union Customs Code.

On April 22, 2023, based on misleading documents that were submitted under the direction of S.H., claiming that the mentioned products belonged to the aforementioned foreign legal entity and were intended for its needs, the Armenian customs authorities allowed the 283,250 kg shipment to enter the country with 'released' status without collecting customs duties. As a result, S.H. provided distorted information regarding the property that generated the obligation to calculate or pay customs duties, leading to the failure to declare and pay customs duties amounting to 170,897,286 AMD, which includes 51,630,600 AMD in customs tax and 119,266,686 AMD in VAT.

Based on the facts collected during the preliminary investigation, the prosecuting body presented a request to the supervising prosecutor to initiate public criminal proceedings against S.H. under Article 290, Part 3, Clause 2 of the Criminal Code of the Republic of Armenia, which was granted, and charges were filed against him. The accused S.H. has been arrested pending court presentation.

The Criminal Court of General Jurisdiction of Yerevan, by decision dated July 22, 2023, has approved the request of the prosecuting body, applying detention as a precautionary measure for a period of two months. The preliminary investigation is ongoing.