2024-03-18 22:40:17
The government has adopted a decision “On applying a temporary ban on the export of a number of products from the Republic of Armenia”, by which a temporary ban on the export of cattle, sheep, and horse furs is established for 6 months. It is due to the need to limit the export of a product (raw leather), which is important for Armenia, to protect local production and provide a raw material base, as well as to promote the activities of Armenia’s manufacturing industry. Adoption of the decision will enable, within the framework of EAEU legislation, to apply restrictions on the export of such products, which, by processing on the spot, will contribute to the protection and security of the country.
According to the rationale, the RA government is taking steps to process secondary raw materials on site and to enable local industrial enterprises to develop their own production using raw leather products.
At present, the local industrial companies carrying out leather processing activities in Armenia have a demand for leather raw materials and the possibilities of the raw material base are still not being used to their full capacity. The conducted studies show that from December 16 of this year to April 30 of this year, 623,819 kg of raw beef and 4768 pieces of raw sheep skin were accepted by the companies from the adoption of the decision of the RA government on the ban on leather. As a result of the decision, the processing of local leather increased and there was no need to import raw materials from abroad. Leather processing by processing companies has increased more than 4 times and the adoption of the decision has enabled companies to fully use local raw materials without importing additional batches. The number of employees of the company also increased in the production process. The final products of the companies have increased, as a result of which the demand for Armenian products in the local market has increased.
In the local production value chain, the use of locally processed leather by shoe manufacturers has increased. The provision of local raw materials has enabled companies to expand production volumes and sell almost completely local raw materials.
Adoption of the decision will enable, within the EAEU legislation, to apply restrictions on the export of such goods, which, by processing on the spot, will contribute to the protection and security of the country.