From January 1, 2024, only the requirements set forth in the provisions of the Customs Union Technical Regulations on Tobacco Products apply to tobacco products. Accordingly, consumer packs of tobacco products must display graphic warning images that will inform consumers about the consequences of smoking on their health. During 2024, however, a number of local manufacturers continued to fail to comply with the established requirements for various reasons and produced and circulated them in old-style packs without graphic warnings.
The RA NA Standing Committee on Economic Affairs debated the proposed amendments to the Code on Administrative Offenses in the first reading at an extraordinary sitting on May 5. The above-mentioned issues were presented by the Minister of Economy of the Republic of Armenia Gevorg Papoyan. Economic operators guided by the new rules are forced to increase costs, also increasing the selling price. Such a situation has created unfair competitive conditions.
According to Gevorg Papoyan, the current fine of 400.000 AMD for this offense is not a significant financial burden for business operators and contributes to the continuation of illegal practices. In order to ensure a fairer competitive environment in the Armenian tobacco market and provide a legitimate solution to the problem, a legislative amendment has been initiated, proposing to increase the fine to one percent of the revenue of the previous year of the offense.
According to the assessment of the Deputy Chair of the Standing Committee on Economic Affairs Babken Tunyan, this had created an unequal competitive situation in the market. The MP proposed to organize the adoption of the bill in the second reading within 24 hours after the adoption in the first reading, since the desire of law-abiding companies operating in the market is to adopt this regulation as soon as possible. The Deputy Chair of the Committee clarified that this responsibility will apply to tobacco products produced and imported after January 1, 2024. “It should not be the case that the Competition Protection Commission and inspection bodies go and consider everyone on the same level,” the MP noted and spoke about the possibility of clarifying the date of production of cigarettes. According to him, QR codes provide a technical opportunity to check the date of production and import.
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In response to the deputies’ questions, the Minister clarified that there is no requirement regarding export, the manufacturer will be primarily responsible for non-compliance with the rules and assured that short-term economic interest is replaced by a long-term one.
As a result of the debates, the issue was endorsed by the Committee.
RA NA
