YEREVAN. – Increase in the invoice amount was the reason behind the late-August hike in the price of sugar in Armenia, State Commission for the Protection of Economic Competition Chairman Artak Shaboyan stated during a briefing with news reporters on Thursday.

During customs clearance of goods, the amount indicated in the invoice is accepted as basis. “At present, the invoice amounts correspond to international prices,” Shaboyan assured.

As Armenian News-NEWS.am reported earlier, the Alex Grig Company, which has a monopoly over Armenia’s sugar market, was clearing the imported sugar from customs at the very low price of 120 drams (32 cents US)/kg. And since the customs authorities did not carry out such reduced customs clearance for other companies, an unlevel playing field was established in the country’s sugar market, since Alex Grig was able to sell sugar at a lower price in the domestic market. To note, such conduct by customs officers essentially contains a criminal element.         

Ever since July 2011, however, Alex Grig was required to clear imported sugar from customs at a price of 300 drams (80 cents)/kg, and consequently the Company paid more taxes. But in order to cover these “damages,” the price of sugar was increased in the market by approximately 20 percent.