Unitrans Ltd International Freight-Forwarder Hanrapetutyan 22 section 4

Unitrans Ltd. International Freight-Forwarder Hanrapetutyan 22, section 4, Yerevan, Republic of Armenia tel: +(374 10) 520293 fax: +(374 10) 516016 e-mail: unitrans@unitrans. am , unitrans@arminco. com http: //www. unitrans. am

ABOUT UNITRANS

History v. A group of “UNITRANS” transporting companies was founded by Mr. Albert Papoyans in 1966 first in different countries worldwide. v. Armenian branch was established in Yerevan in 1994. v. Since 2000 Unitrans is DHL Danzas Air & Ocean (now DHL Global Forwarding) Exclusive agent in Armenia. v. In February, 2005 “UNITRANS” Ltd. , first in Armenian forwarding companies, was awarded ISO 9001: 2000 SGS Certificate.

Mission Decrease influence of the blockade for Armenian businesses, providing customers with a superior level of service at competitive rates.

Transportation routes Because of transport blockade from Azerbaijan and Turkey since end of 80 s – beginning of 90 s all Armenian cargoes come via territories of Georgia and Iran. So, for sea freight Armenia uses mainly 2 ports: Poti (Georgia) and Bandar Abbas (Iran).

Unitrans Transportation Sea Ports Statistics, 2014 Hamburg, Germany, 3% Bandar Abbas, Iran, 14% Poti, Georgia, 83%

SERVICES

PROFESSIONAL SERVICES v Truck transportation (FTL, LTL, Refrigerated Trucks) v Air transportation v Ocean transportation (FCL, LCL, Refrigerated container, Bulk, Ro-Ro) v Combined transportation v Heavy Lift and Oversized Cargoes Transportation v Project transportation COMPLIMENTARY SERVICES v Packing v Insurance v Customs clearance v Local delivery v Loading/ unloading v Warehouse handling

Customs-related issues…

Certificates within EEU v Certificates for light industry production v Veterinary Certificates v Certificates of Origin v Certificates of Conformity (post-declaration period)

Good news! v Shipments with value less then 200 EUR v Period of declaration up to 4 months v Experience of Armenia: quantity restrictions for physical entities v Temporary import for 2 years period

Changes v Indirect taxes accounting within 180 days v Anti-dumping duties v Customs duties at temporary import

Transit period v Customs clearance brokerage offices financial guarantee till 300 mln amd (? ) after 2016 summer v EEU Customs transporter institute after 2015 summer v 700 commodities with privileged customs duties till 2024

List of privileged commodities • Bottles, tare, pots, etc. • Bulldozers, excavators and other heavy machinery • Electrical equipment for commutation and electric network • Fabric and yarn • Insecticides, fungicides, etc. • Motor vehicles for people and cargo transportation and special purpose • Polymers of vinyl acetate, acryl, plastic, etc. • Soap and detergents • Tires • Watch frames and parts • Animal food • Blood • Chemicals • Fertilizers • Fruits • Medical items like cotton, bandage • Medicine • Milk or cream with sugar • Oil and oil products • Pork • Poultry • Rice • Spirits • Starch • Tea • Tobacco raw material

STATISTICS

Average increase difference/ first 17 positions Fertilizers, 8. 15 Tissue, 8. 4 Paper, 14. 3 Organizers, note-books, 13. 25 Bags, 8. 5 Music equipment, 8. 65 Hygiene stuff , 13. 1 Transformers, converters, 8. 8 Lighting, 8. 850000001 Cosmetics, 12. 75 Metal constructions, 9 Laboratory stuff, 9. 15 Detergents, 9. 15 Metal fittings for furniture, 9. 3 Malt, malt extract, 9. 5 Lubricants, 9. 3 Metric and measurement equipment, 10

Tariffs increased for non-EEU countries, % Before EEU rate Average prev. level Average increase Average difference Paper 0 10 -18. 6 0 14. 3 Organizers, note-books 0 12. 5 -14 0 13. 25 Hygiene stuff 0 12. 9 -13. 3 0 13. 1 Cosmetics 0 12. 2 -13. 3 0 12. 75 Metric and measurement equip. 0 0 -20 0 10 10 Malt, malt extract 0 5 -14 0 9. 5 Lubricants 0 5 -13. 6 0 9. 3 Metal fittings for furniture 0 0 -18. 6 0 9. 3 Detergents 0 5 -13. 3 0 9. 15 Laboratory stuff 0 8. 3 -10 0 9. 15 Metal constructions 0 0 -18 0 9 9 10 18. 3 -19. 4 10 18. 85 Transformers, converters 0 0 -17. 6 0 8. 8 Music equipment 0 4 -13. 3 0 8. 65 10 18 -19 10 18. 5 0 -10 8. 3 -18. 5 5 13. 4 8. 4 0 7. 5 -8. 8 0 8. 15 Lighting Bags Tissue Fertilizers

Average decrease difference/ first 17 positions Parts of bulldozers, tractors and other Motors, engines, equipment, -2. 5 Shoes, -1. 4 generators, -2. 5 Filters, -2. 5 Furniture plastic fittings, 10 Chocolad, -2. 5 Accumulators, -3. 35 Air conditioners, -10 Tires for special machinery, -5 Packaging, cleaning equipment, -5 Motor parts, -7. 5 Corks natural, -5 Printers, office printing equipment, -7. 5 Coffee, -5. 35 Parts of telecom. equipment, -6. 25 spare parts, -7. 5 Cars Pumps, -7. 5

Tariffs decreased or remained same for non-EEU countries, % Before EEU rate Average prev. level Average decrease difference Furniture plastic fittings 10 0 Air conditioners 10 0 Motor parts 10 0 -5 10 2. 5 Printers, office printing equipment 10 0 -5 10 2. 5 Pumps 10 0 -5 10 2. 5 Cars spare parts 10 0 -5 10 2. 5 Parts of telecom. equipment 10 0 -7. 5 10 3. 75 Coffee 10 0 -9. 3 10 4. 65 Corks natural 10 5 0 -10 0 5 0 Tires for special machinery 10 5 Accumulators 10 0 -13. 3 10 6. 65 Chocolad 10 5 -10 10 7. 5 0 -10 0 -5 5 2. 5 10 0 -15 10 7. 5 0 -10 0 -5 5 2. 5 Packaging, cleaning equipment Filters Motors, engines, generators Parts of bulldozers, tractors and other equip. -10 -7. 5 -6. 25 -5. 35 -5 -3. 35 -2. 5

Customs duty of more than 20% increase Commodity Customs duty , some positions Meat, beef 50% Pork 65% Poultry 25%, 80% Milk for babies 22. 5% Some sorts of cheese 22. 5% Canned meat and meat products 23. 3% Sugar 140 USD-263. 33 usd for 1000 kg, which is up to about 30% of the market value Spirit ethyl non-denaturated, 80% 100% Cigars 23. 3%, 27. 4%, 27. 5% Motor vehicles for 10 and more people 24% Cars, motor vehicles for people transportation 25%

Questions, please

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