Part of Customs Duties for Cars from Third Countries to Be Paid by the State if Cleared by December 31

The government of Armenia will provide financial support for customs duties on light passenger vehicles temporarily imported from countries that are not members of the EAEU for free circulation in the country. This decision was presented by Artem Smbatian, Deputy Chairman of the State Revenue Committee, at the government meeting on November 30.

Under the program, the state will reimburse customs duties to all citizens who have temporarily imported light passenger vehicles from third countries by December 4, 2023, and will complete the customs clearance of these vehicles from December 5 to December 30 inclusive.

The reimbursement will be as follows: for vehicles released up to 5 years ago, 40 percent of the payable amount will be reimbursed, meaning that citizens will pay 60 percent of the customs duties, while the state will cover the remaining 40 percent. For vehicles released more than 5 years ago, the reimbursement will amount to 70 percent of the total cost, meaning citizens will only pay 30 percent of the calculated customs duties and VAT, and the state will reimburse the remaining 70 percent,” said Smbatian.

Another draft law proposes that as of January 1, 2024, monetary guarantees will be required for personal vehicles temporarily imported into Armenia, meaning that after January 1, 2024, citizens will need to ensure the payment of customs duties and taxes for the temporary importation of vehicles with third-country license plates through a special deposit account where 100 percent of the calculated taxes and customs fees will be deposited.

“It is noteworthy that the proposed regulations will not apply to citizens of EAEU member states who arrive in Armenia with vehicles registered in EAEU countries, nor to citizens of third countries arriving with their registered vehicles. Therefore, the amendments proposed for auto tourists and business visitors using personal vehicles will not have any negative consequences,” he explained, adding that the requirement will apply when Armenian citizens or citizens of other EAEU countries arrive in Armenia with vehicles registered in a third country.

“On one hand, starting January 1, 2024, strict requirements will prevent the formal temporary importation of vehicles with third country license plates by Armenian citizens, while on the other hand, these citizens will have the opportunity to benefit from state support programs and clear these vehicles until December 30, 2023,” Smbatian stated.

Prime Minister Nikol Pashinyan noted that the need for such regulation arose when the number of Georgian vehicles in Armenia increased; according to some data, there are about 9,000 such vehicles in the country. “With all due respect to the Georgian vehicle owners, I believe we have a problem here, including towards the state, as even the vehicle registration plate is a certain attribute of statehood, and we think this situation cannot continue like this,” Pashinyan said, recalling that customs duties in Georgia are significantly lower than in Armenia. He pointed out that a decision could also be made to lower customs duties, but this is an EAEU regulation, and Armenia cannot solve this issue unilaterally.

Deputy Prime Minister Tigran Khachatryan added that the regulation will be in effect for 30 days. “Those who take advantage of the opportunity will be able to clear their vehicles in accordance with the regulations set by Armenian law and will receive support from the government. Those who do not take advantage of this opportunity by December 31 will have to provide a monetary deposit when their designated deadline arrives (usually they have 12 months of import rights), and they will not be able to clear their vehicles with reduced amounts through government support anymore. Citizens should keep in mind that they have 30 days,” he said.