Interview of the Director of the Research Center for the Problem of the Non-Proliferation of Weapons of Mass Destruction Karen Gasparyan to Mediamax Agency

- How do you assess the situation of export control in Armenia?

- Export control in Armenia has started to take more or less concrete shapes in late 90s. If we draw parallels and compare export control of that period with the one we have today, the difference is huge.

Today, export control in Armenia practically meets the international level. 90% of all our procedures correspond to the international norms and standards and at various forums and conferences we can talk to many countries practically on equal terms. Undoubtedly export control in countries, such as for instance, Russia or the USA, significantly differs from export control in small countries, since we have the opportunity of almost total inspection in the view of the smallest flow of cargoes. The notion “catch all” is popular in the entire world. According to its principle, all goods, which cause doubt, should be checked. Although “catch all” principle was not adopted in Armenia, in fact it is implemented, since over 80% of cargoes are physically inspected. So, we can state that export control in Armenia is at a quite good level.

- In April, 2010, Armenian parliament approved a law on “Export Control over Dual-Purpose Goods”. Can we say that the legislation in the given sphere meets international standards? 

- Yes. Last year a law on control over dual-purpose goods and technologies was approved and in late 2009, the government approved a resolution on control over military goods. These are two different lists, which are controlled basing on different principles. Military goods are licensed, and their control is realized both during import and export, and as to dual-purpose goods control is implemented only during export, and for these goods its not a licence issued, but permission.

- How do the matters stand as to the problem of identification of military goods in the process of export and import control?

- Our organization deals with the problem of identification of dual-purpose goods. The technical expertise is quite a complex process, since the expert, who deals with identification of goods, besides encyclopedic knowledge should also have certain experience in working exactly in military industry. This is one of the most difficult issues in our work, since the average age of experts, who do this, makes around 60, and there is the acute problem of lack of personnel. Young specialists, who tend to want to have everything and right away, do not want to deal with this, since this is quite a responsible and hard job. I can only say that if an expert makes a mistake, he/she can be charged for that with imprisonment term of 6-8 years.

- How are the rights of exporters and importers protected in terms of defining the boundaries for differentiation of military goods and dual-purpose goods?

- The procedure provides that the first guideline for a customs officer, dealing with registration of documents on a particular good, is the code of the CN FEA (the commodity nomenclature for foreign-economic activity- editor). While entering the particular code into the customs program, a red flag shows, warning that special attention should be paid to this particular good. The second step is the work of the customs officer on defining the good. If he can understand without assistance that the particular good is not dangerous, he makes a decision independently and continues filling in the declaration, taking the responsibility for that. But if the customs officer has doubts concerning the good, he sends the exporter/importer to us for technical expertise of the good. Around 70% of cargoes and goods, which come to our organization, are not military or dual-purpose goods. However, there are cases, when the exporter/importer does not agree to the expert conclusion. In that case negotiations are initiated. The expert, who wrote the conclusion and the technical personnel of the organization of the sender and the recipient of the cargo, are invited, and technical meeting is held, as a result of which the sides try to come to common grounds. Fortunately, so far all problems have found their final solution at this stage.

Concerning a particular good, in case if, let’s say, the Ministry of Economy, Minister of Foreign Affairs, the National Security Service cannot come to a common opinion whether to issue permission for import of that good or not, the issue is sent to the Prime Minister, who should make a decision, backed with his signature, in the course of 5 days.

- For the reader it may not be completely clear what goods we are talking about.

- I will try to bring a quite simple example. Often people come here and, for instance, say that they have been given a particular code and were told that their good may be a military good, while it, for instance, is a remote controller. Naturally, the remote controller from a TV set or a conditioner cannot be a military good. But, at the same time, there are remote controllers, which, for instance, control rocket launchers. Naturally, the sizes of such a controller are far bigger, but it should be noted that the customs system in the CIS and in the world in general is not that developed as to understand all this in that 9 or 10 digit code. A code for a controller is issues and then comes the mechanical work of the customs officer, who should understand that this controller can be used to control for instance an unmanned aircraft. If the customs officer has doubts and the controller looks unusual, it is bigger than usual, has numerous indicators, etc, then we have to recheck it. 

Another example of a dual-purpose good can be various capacities, which have a certain internal coverage, resistant to “aggressive” chemical elements. In such capacities, for instance, one can carry out chemical reactions, aiming at making chemical weapon.

- And what about goods, which are not material, for instance, if it is a file with software?

- There is the notion of export control on dual-purpose technologies. We have customers, who import software, engineering plans and graphics, and there have been cases, when those were classified as dual-purpose goods and received special permission. In this case again the entire documentation is presented and experts give their conclusion on technologies. And this is a very delicate moment, since if the exporter turns out to be unfair and does not provide documentation it will become practically impossible to control such export. The soft can simply be sent by mail, and this will not be controlled. But we should take into account the fact that such an unscrupulous exporter may face up to 8 years of imprisonment. So, I believe that reasonable people will not do that. In any case, this is a serious problem, and it is urgent in the whole world.

- Armenia is among around 60 countries, in which U.S. The Export Control and Related Border Security Program is being implemented. How do we benefit from participation in this program?

- This program helps in very many cases, related to border security in terms of transportation of particular goods, radioactive cargoes, chemical elements, etc. Today, a great number of various devices to reveal radioactive elements, toxic and chemical elements are installed on the borders of Armenia. All this is achieved due to EXBS Program, which directly participated both in financing and in installation of the devices, involving specialists, etc. Moreover a large number of educational programs and trainings for customs officers, border officers, technical experts, etc, are held due to EXBS program. So, this Program is quite efficient.

- How does the issue of export control influence development of business in Armenia? Won’t this create any obstacles for local and foreign entrepreneurs?

- In the entire world, this will not create any problems, since organizations, which deal with external economic activity and have the corresponding licenses and permissions, know about export control. Moreover, over 90% of such organizations have special departments, which deal exactly with export control.

Certain problems occur in Armenia in the view of lack of organized attitude among our entrepreneurs. But I should say that as compared to 2003, when we started issuing conclusions, today the level of awareness among businessmen is far higher.

Mediamax’s Aram Araratyan talked to Karen Gasparyan.