Published since 07.2002
Published on April 25, 2008
CUSTOM OF CHEATING: AVERAGE TRADERS SUFFER FROM CRACKDOWN ON IMPORT TARIFFS
- Traders and merchants from Yerevan markets staged a protest action near the government building early this week expressing their discontent with having to pay more at customs for imported goods. “The State Customs Committee decided to raise the customs dues for imported clothes items. While in the past people paid about $3 for one kilogram of imported goods depending on the type of the merchandise, then today the amount of that duty has reached $8,” says Ashot Petrosyan, a trader at one of Yerevan’s biggest and most popular trade fairs in Malatia. “Instead of $7 that importers used to pay for clothes imported from China, now they have to pay more than twice as much - $15.” Sona Poghosyan, 55, who has traded for years at a fair, Firdus, in central Yerevan, says: “We sit there all day long, most of the people are insolvent, these goods sell bad, but now that their price will go up, how will we sell them or who will buy them?” Changes in the State Customs Committee began especially after a working meeting with President Serzh Sargsyan late last week during which Sargsyan, acknowledging the achievements of the sphere, also lambasted corrupt practices and ugly phenomena existing in it, such as bribery, protectionism, which, he said, obstructed economic development and aroused rightful anger among those dealing with the system. The president said that those who were not ready to work honestly had to leave the system. “There can be no individuals, structures in our country that would have an opportunity to put pressure on customs bodies or that can be engaged in smuggling,” Sargsyan said sternly. Traders said that before that event they had decided to apply to the new president for taxies levied from them to be lowered, however they did not manage, they were instead raised. “Everything in this country becomes more expensive from day to day. My goods have arrived from Turkey, now it is at the customs, let them keep it for themselves until I pay the sum they demand,” says 40-year-old Gayane Hovhannisyan. Nevertheless, according to the State Customs Committee no changes had been introduced. Simply, they began to take tougher and more effective steps to tackle smuggling. Still during his meeting with customs officials President Sargsyan said that engaging in smuggling is tantamount to having unearned incomes, which breaks the economy, creates unequal conditions and entrepreneurship becomes a hardship for a decent entrepreneur. He said he considered it a priority to clamp down on so-called “illicit files”. Khachatur Vardanyan, a department chief at the Ministry of Territorial Administration, who came out to meet the protesters said that the law had not been changed, simply until now for unclear reasons the law did not work properly and will now be enforced properly. “There was no change in tariffs and that was stated aloud both by the Customs Committee and the government. Now there are internal issues that need to be discussed,” Vardanyan told the protesters. The traders explained that they paid taxes at the customs house to be permitted to make trade. They feared that rising costs would spell out a debacle for small businesses, many of which represent “importers” who travel by bus to Turkey, buy goods, then make “agreements” with custom officials on discounted tariffs. Union of Merchants Chairperson Tsolvard Vardanyan also says that no change was made in the law. Simply, according to Vardanyan, after the meeting with the president changes began within the customs system. “The law is the same as it was. Simply it is unclear why they had provided customs clearance at a price lower than that stipulated by law. I think that the budget was short of revenues because the dues were paid in amounts less than stipulated,” Vardanyan said. And ‘internal issues’ appear to have emerged from the moment when the president stated that by its work the customs system must contribute to the development of business, improvement of the business environment. Nevertheless, the created confusion leads one to assume that corruption practices are being revealed in customs houses about which it is not yet spoken publicly. As a result, traders think that tariffs have been raised. In an unknown way traders and organizations providing customs clearance services for them for years managed to clear goods through customs with a much lower payment than the foreseen rate. Hidden corruption risks in the customs committee become obvious when a decision is made to follow the law. In fact, none of the traders have imported goods at rates foreseen by the law now. Therefore, where did the money go? Who had decided the customs due of three dollars per kilo? “As to why the dues were low it is their internal kitchen where no one can enter,” says Gevorgyan. Shoghik Saghatelyan, one of the traders at Tashir, says that the economic protest may turn into a political one. “Because we feel that an anti-Armenian policy is being conducted. A person who earns daily bread for his children is now deprived of that bread. I had gone to Turkey knowing that I was to pay $3.5 per kilo for imported goods, now it is already $8 for the same kilo. I can’t,” she says. Answers to all these questions will now have to be provided from the “internal kitchen” where they managed to use internally concocted tariffs in gross violation of those envisaged by law.
- Gayane Mkrtchyan
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Today in Armenian history- 1828 Griboedov is appointed Russian ambassador in Persia.
- 1888 Death of novelist Raffi (Hakob Melik-Hakobyan) in Tbilissi (Georgia). He was born in 1835.
- 1918 The Turkish army re-occupies Ghars (Western Armenia).
- 1918 Stepan Shahoomyan creates and leads the Council of People's Commissars in Baku.
- 1959 Death of painter Hakob Kodjoyan. He was born in 1883.
- 1990 The Greek Parliament approves a law designating April 24 as Remembrance Day of the Armenian victims of the Genocide perpetrated by Turkey.
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