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ORDER OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA

of February 15, 2003 No. 2182-N

About approval of implementation of operations procedure according to the order some goods transferred to safe custody to customs authorities and which are stored under customs supervision, considered as direct object of smuggling or customs offense

Accepted the Government of the Republic of Armenia on October 31, 2002

According to Item 1 of Article 235 of the Customs code of the Republic of Armenia the Government of the Republic of Armenia decides:

1. Approve procedure of actions according to the order by some goods transferred to safe custody to customs authorities and which are stored under customs supervision, considered as direct object of smuggling or customs offense according to Appendix.

2. Declare invalid the Order of the Government of the Republic of Armenia of August 15, 2000 No. 476 "About approval of procedure for the order the goods which are direct object of customs offense or smuggling, confiscated (taken) customs authorities".

3. This Resolution becomes effective for the tenth day after its official publication.

Prime Minister of the Republic of Armenia

R. Kocharyan

Appendix

to the Order of the Government of the Republic of Armenia of October 31, 2002 No. 2182-N

Procedure of actions according to the order some goods transferred to safe custody to customs authorities and which are stored under customs supervision, considered as direct object of smuggling or customs offense

1. This Procedure establishes procedure of actions according to the order by the perishable goods (including goods, which expiration date comes to end) transferred to safe custody to customs authorities and stored under customs supervision, considered as direct object of smuggling or customs offense (further - goods).

2. During the order goods perform the following functions:

a) transportation, loading and unloading of goods;

b) warehousing of goods;

c) providing necessary conditions for storage of goods;

d) crushing (division) of job lots of goods;

e) sorting of goods, including allocation from batches of damaged goods and goods expired;

e) sales of goods;

g) under the organization of goods in case of need - packaging, repacking, mark, marking (including excise stamps) and other;

h) creation of the act of damaged goods or goods expired, allocated from batches based on the conclusion of state body of certification of the Republic of Armenia, realization of these goods in case of suitability for recycling or destruction.

3. The actions specified in Item 2 presents of the Procedure are performed by customs authorities based on written consent of persons transporting goods and at the expense of last resorts. The form of consent is approved by higher customs authority.

4. The higher tax authority according to the procedure, established by this Resolution, can also dispose of the goods which are not specified in Item of 1 this Procedure, transferred to safe custody to customs authorities or considered as direct object of smuggling or customs offense if about it there is written consent of persons transporting these goods.

5. Customs authorities shall begin the actions specified in Item 2 presents of the Procedure right after receipt of consent on it of persons transporting goods.

6. The expenses which arose in the course of the order goods are calculated only proceeding from the actions connected with the order, at the same time all expenses made in the course of implementation of each action according to the order shall be proved by the relevant documents.

7. The separate actions connected with the order goods: warehousing of goods, allocation from batches of damaged goods and goods expired, packaging, repacking, marking, mark, sales of goods, - are performed through the relevant specialized organizations, including:

a) warehousing of goods - through the organizations having the license for activities for storage of goods on customs warehouses under customs supervision;

b) allocation from batches of damaged goods and goods expired - the test laboratories accredited by council on accreditation, the authorized Government of the Republic of Armenia;

c) packaging, repacking, marking, mark of goods - through the organizations which are engaged in the specified actions or production of the corresponding goods;

d) sales of goods - through the specialized organizations realizing goods according to the procedure of auctions or in the special Item of realization created by order of the head of higher customs authority.

8. Sales of goods is enabled by means of classical auction. During the classical auction starting sales prices of goods can be significantly lower than market prices of these goods, and they are determined with the consent of person transporting goods, or person authorized by it.

In case of not sales of goods in the period of the term of its validity by means of classical auction for previously agreed prices the higher customs authority with the consent of the person transporting these goods, or authorized by it persons has the right to make the decision on the organization of sales of goods by method of the Dutch auction.

9. The expenses connected with actions according to the order goods are made by higher customs authority on condition of recovery of the made expenses from the amount received from sales of goods. The expenses connected with actions according to the order goods by the supreme customs authority are compensated in 5-day time after sales of goods.

10. The amounts received from sales of goods except for of the expenses made by higher customs authority, the stipulated in Item 9 presents About are enlisted on special the account open for this purpose.

11. In case of sales of goods these goods are released by customs authorities without submission of the customs declaration by the new buyer, based on the document proving the fact of recognition by the winner in auction.

12. In case of giving by the person who is transporting goods, gave goods to safe custody to customs authorities and provided consent to the order back customs authorities suspend the statement for their obtaining from customs authorities, connected with the order, and after compensation for expenses, made by higher customs authority, and the obligation fulfillments established by the legislation of the Republic of Armenia return to person transporting goods, the unrealized part of goods which is in safe custody at customs authorities.

13. In the presence of the decision on imposing of administrative penalty for customs offense and the consent of person transporting goods, dispose of the amounts received from sales of goods in the following sequence:

a) the expenses connected with the order goods higher customs authority are compensated;

b) penalty fee and penalties, stipulated by the legislation the Republic of Armenia are paid;

c) the customs payments which are subject to payment according to the customs legislation of the Republic of Armenia are paid;

d) the difference amount returns to ten-day time to person transporting goods.

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