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Improving economic ties with trading partners to help Georgia join worldwide economic communities.

 

Development of preferential and free trade regimes as well as bilateral, regional, and multilateral trade relations; as a result, support for the implementation of a deep and comprehensive free trade agreement with the EU and other FTAs with the aim of assisting in the reduction of technical trade barriers and bringing Georgian goods and services in line with global and European best practices.  

 

To improve Georgia's negative trade balance and encourage exports, conduct frequent analyses of the country's international trade performance and economic ties with trading partners. 

 

coordination between state entities in the DCFTA implementation process and collaboration with pertinent EU structures.  

Responsibilities for Foreign economic activity participants 

  1. There are several responsibilities that participants should consider:
  2. working on issues pertaining to the nation's trade policy;
  3. create drafts for government-to-government trade agreements, start negotiations, coordinate them, and track their implementation;
  4. working to address trade and development concerns in Georgia;
  5. Prepare a foreign trade balance analysis and recommendations for the country;
  6. analysis for the WTO's (World Trade Organization) responsibilities' implementation, working on WTO-related issues, and conducting notification processes;
  7. working on EU integration issues and collaborating with the EU agencies under your purview;
  8. participate in the EU's Association Agreement's implementation process;
  9. coordination between state agencies and cooperation with relevant EU bodies in implementing the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU

Foreign Trade Policy of Georgia

One of the main tenets of Georgia's economic policy is a liberal approach to international commerce.

 

Both in the area of technical regulations and tariff policy, the Georgian government enacted reforms. As a result, Georgia today boasts one of the most open foreign trade policies in the world, which entails simplified customs procedures and foreign trade regimes, low import duties, and few non-tariff regulations.

 

Import Tariff Policy

 

One of the world's most open and competitive trading systems is found in Georgia. Since 1 September 2006, import tariffs have dropped from 16 tariff rates to 3 (0%, 5%, and 12%), in compliance with legal changes. About 85% of products no longer have import tariffs. Additionally, there are no seasonal tariffs. The Tax Code of Georgia's Article XXVIII regulates changes to import tariffs.

 

Export Tariff Policy

Export and re-export from Georgia are exempt from customs taxes, according to Georgian law. Due to Georgia's implementation of the country-of-destination concept for value added tax (VAT) on September 1, 1997, exports from Georgia are exempt from paying VAT.

 

Added Taxes

The value added tax and excise duty rates for domestic and imported items are equal, as stated in the Georgia Tax Code.

Permits and Licenses

According to Georgia Law on Licenses and Permits, the law does not take into account any non-tariff restrictions on international trade (licenses, quotas, prohibitions, and other), unless those limits are required for reasons of healthcare, security, or environmental protection. The following licenses and permissions are specifically issued:

  • Veterinary and Phytosanitary Control Goods Import Permit (National Agency for Food Safety, Georgian Ministry of Agriculture);
  • a license from Georgia's Ministry of Internal Affairs allowing the export and import of electronic surveillance equipment;
  • a permit issued by the Georgian Ministry of Environment and Natural Resources Protection for the import, export, re-export, or transit of goods with a restricted circulation;
  • the Ministry of Energy's Permit on Import, Export, or Transit of Nuclear and Radioactive Objects, Nuclear Materials, Radioactive Substances, Radioactive Waste, and Minerals (Subsoil);
  • the Georgian Ministry of Defense's Permit on Import, Export, Re-Export, and Transit of Arms and Ammunition;
  • Permit on Transit, Import, Export, or Re-Export of Items with Dual Use (LEPL "Revenue Service"); 
  • the Georgia Ministry of Labor, Health, and Social Affairs' Permit on Import or Export of Medicines and Pharmaceuticals Subject to Special Control;
  • Non-iodized salt import permits are issued by the Georgian Ministry of Agriculture, and permits for the import, export, re-export, and introduction from the sea of species listed in the CITES Annexes as well as their parts and derivatives are issued by the Georgian Ministry of Environment and Natural Resources Protection.
  • The Ministry of Culture and Monument Protection of Georgia has compiled a list of items with cultural value that are barred from export.

 Documents of Origin

  • The rules of the Decree No420 of the Government of Georgia, issued 29 December 2010, govern the exportation of commodities from the economic territory of Georgia and the granting of Certificates of Origin.
  • The LEPL "Revenue Service" of Georgia's Ministry of Finance issues the preferential origin certificate EUR.1 confirming Georgia's origin for goods produced in free industrial zones and wineries when they are exported from Georgia's customs territory. 

 

 

 

 

 

 

 

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