In light of the Globalization process and due to the location of Georgia, the country’s economic development is directly related to the proper and effective functioning of the transport sectors.
Georgia is located at the crossroad of Europe and Asia where the transportation of strategic goods is conducted. Therefore, one of the top priorities of the Government of Georgia is coordinated functioning of the transport sectors, modernization/construction of transport infrastructure in accordance with international standards, harmonization of the country’s legislation with international law and integration into the Trans-European Transport Network.
Considering the above-mentioned, the Government of Georgia undertakes significant infrastructure projects that will facilitate additional flows of goods towards Georgia and increase the effectiveness of transport systems.
Liberal foreign trade policy is one of the major principles of the economic policy of Georgia.
The Government of Georgia implemented reforms in tariff policy as well as in technical regulations sphere. As a result, nowadays Georgia has one of the most liberal foreign trade policies in the world, which implies the facilitated foreign trade regimes and customs procedures, low import tariffs and minimal non-tariff regulations.
Tariff Policy on Import
Georgia has one of the most liberal and competitive trade regimes across the world. In accordance with legislative changes, since 1 September 2006 tariffs on import decreased from 16 tariff rates to 3 (0%, 5% and 12%). Tariffs on import were abolished on about 85 % of goods. There are no seasonal tariffs as well. Tariffs on imported goods are adjusted by the Article XXVIII of the Tax Code of Georgia.
Tariff Policy on Export
According to the Georgian legislation, export and re-export from Georgia are free from customs duties. Hence, that since 1 September 1997 Georgia imposes value added tax (VAT) based on the principle of country of destination, the export from Georgia is free from VAT.
According to the Tax Code of Georgia, value added tax and excise duty rates are equal for local and imported goods.
Licenses and Permits
Based on the Law of Georgia on Licenses and Permits, the legislation does not consider any non-tariff limitations in foreign trade (licenses, quotas, prohibitions and other) except, when restrictions are necessary for healthcare, security and environment protection purposes. Specifically, the following licenses and permits are issued:
- Permit on Import of goods subject to phytosanitary and veterinary control (National Agency for Food Safety under the Ministry of Agriculture of Georgia);
- License on Export-Import of means of electronic surveillance (Ministry of Internal Affairs of Georgia);
- Permit on Import, Export, Re-export or Transit of materials of limited circulation (Ministry of Environment and Natural Resources Protection of Georgia);
- Permit on Import, Export or Transit of nuclear and radioactive objects, nuclear materials, radioactive substances, radioactive wastes and minerals (subsoil) (Ministry of Energy);
- Permit on Import, Export, Re-export, and Transit of arms and ammunition (Ministry of Defense of Georgia);
- Permit on Import, Export, Re-export or Transit of dual use items (LEPL “Revenue Service”);
- Permit on Import or Export of medicines and pharmaceuticals subject to special control (Ministry of Labor, Health and Social Affairs of Georgia);
- Permit on Import of non-iodized salt(Ministry of Agriculture of Georgia);
- Permit on Import, Export, Re-export, and Introduction from the Sea of Species, Their Parts and Derivatives Included in the Annexes of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (Ministry of Environment and Natural Resources Protection Protection of Georgia).
The export of goods of cultural value, which are included in the list determined by the Ministry of Culture and Monument Protection of Georgia, is prohibited.
Certificates of Origin
Exportation of goods from the economic territory of Georgia and issuance of Certificates of Origin is regulated by the provisions of the Decree №420 of the Government of Georgia, dated 29 December 2010.
While exporting from the customs territory of Georgia, the preferential origin certificate EUR.1 on winery products and on goods produced in free industrial zones, the respective form of certificate confirming the origin of Georgia is issued by the LEPL “Revenue Service” of the Ministry of Finance of Georgia.
In all other cases, while exporting from the customs territory of Georgia, the certificate of origin is issued as by the LEPL “Revenue Service” so by the Chamber of Commerce of Georgia. In case the certificate of origin is issued by the LEPL “Revenue Service”, the application for the certificate and other necessary documentation can be submitted electronically.