Armenian producers suffer significant losses due to restrictions on Wildberries

Armenia’s Ministry of Economy announced yesterday that a certificate of origin will now be required for the sale of Armenian products on Wildberries.

“According to our national legislation, when products are imported from third countries into Armenia, both customs duties and VAT are paid in the Republic of Armenia. If those goods are later re-exported, the state must refund the VAT to the economic entity,” economist Suren Parsyan explained in an interview with Aysor.am.

“Recently, Armenian importers were bringing goods from China and other countries into Armenia, clearing customs and paying VAT locally, but then selling the products in the Russian Federation. Under both Armenian and Russian legislation, VAT must be paid in the country where the product is sold. As a result, when goods were exported from Armenia to Russia, VAT was not paid there, but in Armenia,” he noted.

According to Parsyan, the mandatory certificate of origin requirement was introduced to prevent such issues and ensure that Armenian-made goods can continue to be sold in Russia without obstacles.

“If the goods were produced in Armenia, there will be no export-related issues. But if they were imported from China, VAT must be paid in Russia,” he said.

Parsyan also noted that Armenia could adopt a mirror-like approach toward Russian companies selling Chinese and Vietnamese goods in Armenia through Wildberries.

Armenian manufacturers had been unable to sell products on Wildberries for an extended period.

The economist added that there are no official statistics regarding the losses suffered by Armenian businesses during that time.

“Of course, the losses were significant, especially for local manufacturers entering the EAEU market of 180 million consumers through online platforms,” he said.