Importing Cell Phones Into Armenia

With a virtual monopoly on everything else, why should cell phones be any different?

...the elder son of the Armenian President Sedrak Kocharyan controls the imports of mobile phones...a decision was made at the top level to transfer the monopoly of imports of mobile phones to...through Samvel Alexanyan, the sole importer of sugar to Armenia. It means Alexanyan is now a shareholder of Sedrak Kocharyan’s business...

...importers of cannot get customs clearance for a long time now. Meanwhile, it is impossible to get the mobiles to the market without customs clearance first...In addition, the National Security Service has displayed interest in companies which have been importing mobile phones to Armenia so far.

There you have it!

Source: Lragir

Imported Cars Met With Stiff Fees

If you're one of the many people sending cars to be sold in Armenia, have a look:

...26,157 cars were imported to Armenia 7,302 of which of Russian trade mark and 18,855 of foreign mark.

According to the law on environmental payments, 5-10 years old cars have to pay additional environmental fees in the amount of 2 percent of customs duty. Cars 10-15 years old have to pay 10 percent of the amount and 15 and more years old cars pay 20 percent of the customs duty.

The ministry of nature protection explains that new cars are less harmful for the environment and people will be encouraged to buy more new cars, thus causing less environmental damage.

Since when does the Armenian government tax imports to help the environment? I think what they're really doing is promoting the import of newer cars, which in turn means higher customs duty. Regardless of how they may claim to assess duty - and they refused to estimate how much they've collected from imported cars - more expensive cars end up paying much more than their less expensive counterparts.

Source: Panorama

From Glendale, With Fraud

Don't think that just because I am an Armenian and this is Armenia Blog that I'm only going to talk about positive things as they relate to our people. From the "not so great" department, I give you this:

Eight people connected to a Glendale-based charity were arrested on suspicion of fraud after the Los Angeles Police Department linked them to an international crime ring.

Global Human Services, which posed as an organization that regularly sent humanitarian aid overseas to the Republic of Georgia, Jordan, Armenia and Russia, was actually a front for international car theft and fraud...

In June, an Immigrations and Customs Enforcement search of two of the organization’s shipping containers in Houston uncovered a shipment of women’s shoes and two late-model sport utility vehicles hidden behind false walls in each container...

It’s estimated that the GHS shipped $5 million worth of cars in the past few years, not including the loss to insurance companies through fraudulent claims.

Those in custody are: GHS operators Rita Gervorkyan, 27, and Garegin Narinyants, 32, both of Burbank, who are being held on $500,000 bail. Co-operators Lioudvig Gevorkian, 57, and Gayk Gevorkian, 21, are believed to be out of the country but are also wanted by the LAPD.

Six car owners and lessees who allegedly participated in the scam were arrested last night and early this morning. Each was being held in lieu of $30,000 bail, according to the LAPD.

Stories like these don't make me proud to be Armenian, because these people only serve to create stereotypes for the rest of us. The Armenians that I like to think of are artists, musicians, businessmen, and others of positive influence.

Source: CBS

Robert Kocharyan Urges Fight Against Shadow Economy

From the horse's mouth:

The country's taxation and customs services do not show due eagerness in struggling against the "shady" economy. Kocharyan pointed out the impropriety of reminding the services of the large volume of "black" economy and their duties. Although certain progress has been recorded in the sphere, the process is far from being satisfactory, Kocharyan said.

The country's president and the government will have higher requirements towards the work of the taxation and customs services in 2007, Kocharyan said.

Oh, by the way, the term "shadow economy" is used to describe any business that is illegal, in terms of under-reporting taxes, illegally importing goods without paying fees, and so on.

One has to wonder how much Kocharyan has at stake!

Source: Arka