Armenia-China deal to streamline freight transportation

A high-level meeting on the Trans-Caspian International Transport Route was recently held in Beijing at the initiative of China’s Ministry of Transport, with the participation of an Armenian delegation. During the meeting, an agreement was signed between the two countries under which Armenia and China will facilitate freight transportation.

In an interview with Armenpress, Kristine Ghalechyan, a member of the delegation and Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia, said that the meetings had been quite productive and stood out for their concrete results.

“First, I would like to note that the meeting addressed issues aimed at increasing the efficiency of the Trans-Caspian International Transport Route and expanding freight volumes. The key priorities were infrastructure development, simplification of border and customs procedures, and digitalization. In particular, I would like to emphasize the agreement on international road transportation of passengers and goods between Armenia and China, which was signed during this very meeting,” Kristine Ghalechyan said.

Speaking about the importance of the agreement, the deputy minister noted that it would make it possible to facilitate freight transportation between Armenia and China in both directions.

“Freight transportation between the two countries is already taking place. Under the new agreement, freight carriers will now obtain the relevant permits through a specially introduced system, which will be recognized by both countries and will make it possible to carry out freight transportation under more streamlined procedures. The permits will be issued at two levels: for general freight transportation and for special cargo,” Kristine Ghalechyan said, emphasizing that companies will not be able to transport goods within Armenia or China, as the agreement concerns exclusively international and transit transportation.

The deputy minister also considers it important that, under the agreement, carriers will be exempt from a number of road taxes and fees. In particular, the agreement provides for transportation on a reciprocal basis that will be exempt from taxes or fees established for the use of public roads, as well as special charges and duties stipulated by the national legislation of the respective party.

“One important reservation must be made here. This exemption will not apply to taxes, duties and fees levied under the legislation of each party to compensate for damage caused on roads by vehicles. This is the exception,” the deputy minister said.

Kristine Ghalechyan emphasized that the agreement would help enhance Armenia’s transit and logistics role, expand trade turnover between Armenia and China, and deepen strategic cooperation.

Transportation permits will be issued by the competent authorities of the respective countries. In Armenia, the competent authority is the Ministry of Territorial Administration and Infrastructure of the Republic of Armenia; in China, it is the Ministry of Transport. The agreement provides for the possibility of organizing both regular and non-regular international passenger bus transportation, along agreed routes and through agreed border crossing points.