How to Calculate Customs Duties and Taxes When Importing Goods into Armenia

Author: Mariam Khachikyan Published: June 25, 2026

How to Calculate Customs Payments When Importing Goods into Armenia

Before diving into the calculation, let’s first understand what customs payments are.

Customs payments are mandatory charges paid when goods cross the customs border of the Eurasian Economic Union (EAEU).

What Do Customs Payments Include?

Import customs duty
Value Added Tax (VAT)
Excise tax
Customs fees

Let’s go through each of them step by step.

1. Import Customs Duty

The general formula for calculating import customs duty is:

Customs Duty = Customs Value × Duty Rate

Where:

Customs Value is the customs value of the goods.
Duty Rate is the applicable customs duty rate based on the HS (TN VED) code.

What Is the Customs Value and How Is It Determined?

The EAEU Customs Code provides six methods for determining customs value. These methods are applied sequentially, starting with the first. If the first method cannot be used, the second one is applied, and so on.

The most commonly used approach is the transaction value method, which is based on the purchase price of the imported goods.

Under this method, the customs value includes:

the value of the goods declared in the customs declaration; and
all documented costs incurred to transport the goods to the EAEU customs border, such as packaging, loading, and freight expenses.

The applicable customs duty rate can be determined using the product’s HS (TN VED) code.

2. Value Added Tax (VAT)

VAT must generally be paid by anyone importing goods into Armenia.

The formula is:

VAT = (Customs Value + Customs Duty) × VAT Rate

Where:

Customs Value is the customs value of the goods.
Customs Duty is the amount of import duty.
VAT Rate depends on the relevant HS (TN VED) classification.

The standard import VAT rate is 20%, although certain goods may qualify for exemptions or preferential treatment.

3. Excise Tax

Excise tax applies only when importing excisable goods into Armenia.

The list of excisable products is set out in Article 87 of the Tax Code of the Republic of Armenia and includes items such as:

alcoholic beverages,
cigarettes and tobacco products,
gasoline.

Different categories of excisable goods are subject to different tax rates, as specified in Article 88 of the Tax Code of Armenia.

4. Customs Fees

Customs fees are charges collected for customs processing and control services.

The applicable rates are established by the Armenian law “On Customs Regulation.”

Example: Calculating Customs Payments for Watermelons

Suppose you import 1,000 kg of watermelons (gross weight: 1,050 kg) purchased for USD 1,200.

Delivery terms are CIP Yerevan, meaning no additional transportation costs need to be added for this example.

For simplicity, calculations are made in U.S. dollars. The final amounts can later be converted into Armenian drams using the Central Bank exchange rate.

Step 1: Calculate Import Duty

The HS code for watermelons is 08071100000, with an import duty rate of 5%.

USD 1,200 × 5% = USD 60

Step 2: Calculate VAT

Watermelons are subject to the standard 20% VAT rate.

VAT base:

USD 1,200 + USD 60 = USD 1,260

VAT amount:

USD 1,260 × 20% = USD 252

Step 3: Add Customs Fees

Customs clearance fee – AMD 3,500
Customs control fee (up to 1 ton) – AMD 1,000
Additional customs control fee (over 1 ton) – AMD 300

Total customs fees: AMD 4,800

Summary

Import customs duty: USD 60
VAT: USD 252
Customs fees: AMD 4,800