MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

• Working on the matters related to country’s foreign trade policy;
• Elaborate drafts for international trade agreements between the Governments, launch negotiations, coordination and monitor their implementation;
• Working on Georgia’s trade regimes development issues;
• Prepare analysis for country’s foreign trade balance and proposals for its improvement;
• Analysis for the implementation of obligations under the World Trade Organization (WTO), working on matters related to WTO activities and conduct notification procedures;
• Under competence, working on EU integration issues and cooperation with relevant EU agencies;
• Participate in the implementation process of the Association Agreement with the EU;
• Coordination of the implementation of the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU among state entities and cooperation with relevant EU bodies

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.
 

Indirect Tax

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.   

• Most Favored Nations (MFN)

Majority of the trade partners of Georgia are members of World Trade Organization (WTO), thus among the WTO member States (164 countries) trade relations are regulated on the basis of MFN principles.
 

• Generalized System of Preferences (GSP)

Major essence of Generalized System of Preferences is to establish low rate tariffs of the base import tariff on goods imported from the beneficiary countries, which facilitates access of goods from developing countries to the markets of developed countries.

Georgia is the beneficiary of GSP regime of the following countries:  USA, Japan and Canada. 
 

• Free Trade Regime

Free Trade Regime implies liberalization of trade from custom import taxes among the contracting parties, except the agreed exceptions.

Georgia has free trade regime with all CIS countries, Turkey, European Union, Peoples Republic of China and European Free Trade Association (EFTA).

In foreign trade with CIS countries (except Republic of Uzbekistan and Russian Federation) is applied the decree of 30 November 2000 year issued by the CIS council of Heads of State on “Rules determining the county of origin of goods”.

In foreign trade with Republic of Uzbekistan is applied the decree of 24 September 1993 year issued by the CIS council of Heads of State on “Rules determining the county of origin of goods”. 

In trade with the Russian Federation, is applied the criteria defined by Article 1 and Article 2 of the Free Trade Agreement between Georgia and Russia. 

“Free Trade Agreement between the Government of the Georgia and the Government of People’s Republic of China”.

Georgia – People’s Republic of China’s Free Trade Agreement body text 

CHINA’S SCHEDULE OF SPECIFC COMMITMENTS ON SERVICES 

GEORGIA’S SCHEDULE OF SPECIFC COMMITMENTS ON SERVICES 

SCHEDULES IN RELATION TO ARTICLE 2.4 (ELIMINATION OF CUSTOMS DUTIES) 

Schedule of the People’s Republic of China 

Schedule of Georgia (Section A) 

Schedule of Georgia (Section B) 

Product Specific Rules of Origin (ANNEX II-A) 

Certificate of Origin (Annex II-B)

Free trade agreement between Georgia and European Free Trade Association (EFTA) was signed on 27 June 2016. The agreement entered into force for Iceland and Norway from September 1st, with Switzerland and Liechtenstein from May 1, 2018.

Text of the agreement: 

FTA - Main Agreement 
Annex I - Product Coverage NAMA 
Annex II - Rules of Origin
Annex III - Trade Facilitation 
Annex IV - Mandate Sub-Committee 
Annex V - Tariff Concessions Agriculture - GE-IS 
Annex VI - Tariff Concessions Agriculture - GE-NO 
Annex VII - Tariff Concessions Agriculture - GE-CH 
Annex VIII - Schedules of Specific Commitments 
Annex VIII - Schedule of Specific Commitments - Appendix 1 GE 
Annex VIII - Schedule of Specific Commitments - Appendix 2 IS 
Annex VIII - Schedule of Specific Commitments - Appendix 3 LI 
Annex VIII - Schedule of Specific Commitments - Appendix 4 NO 
Annex VIII - Schedule of Specific Commitments - Appendix 5 CH 
Annex IX - MFN Exemptions 
Annex IX - MFN Exemptions - Appendix 1 GE 
Annex IX - MFN Exemptions - Appendix 2 IS 
Annex IX - MFN Exemptions - Appendix 3 LI 
Annex IX - MFN Exemptions - Appendix 4 NO 
Annex IX - MFN Exemptions - Appendix 5 CH 
Annex X - Financial Services 
Annex XI - Telecommunications Services 
Annex XII - Maritime Transport and Related Services 
Annex XIII - Energy Related Services 
Annex XIV – Reservations 
Annex XIV - Reservations - Appendix 1 GE 
Annex XIV - Reservations - Appendix 2 IS 
Annex XIV - Reservations - Appendix 3 LI
Annex XIV - Reservations - Appendix 4 NO 
Annex XIV - Reservations - Appendix 5 CH 
Annex XV – IPR
Annex XVI - Government Procurement

GEORGIA – HONG KONG, CHINA FREE TRADE AGREEMENT

GEORGIA – HONG KONG, CHINA FREE TRADE AGREEMENT - Main Agreement 
ANNEX 2-1 GEORGIA'S EXCLUSION LIST
ANNEX 3-1 PRODUCT SPECIFIC RULES OF ORIGIN
ANNEX 3-2 CERTIFICATE OF ORIGIN1
ANNEX 8-1a HONG KONG, CHINA’S SCHEDULE OF SPECIFIC COMMITMENTS
ANNEX 8-1b GEORGIA’s SCHEDULE OF SPECIFIC COMMITMENTS
ANNEX 8-2 INTERNATIONAL MARITIME TRANSPORT
ANNEX 10-1a HONG KONG, CHINA’S SCHEDULE OF RESERVATIONS
ANNEX 10-1b GEORGIA’S SCHEDULE OF RESERVATIONS
ANNEX 16-1RULES OF PROCEDURE OF ARBITRAL TRIBUNAL

GEORGIA – THE UNITED KINGDOM STRATEGIC PARTNERSHIP AND COOPERATION AGREEMENT

GEORGIA – THE UNITED KINGDOM STRATEGIC PARTNERSHIP AND COOPERATION AGREEMENT

Multilateral International Agreements on Free Trade

Free trade regimes among the CIS countries, except Russian Federation, are regulated by the Multilateral Agreement on Creation of Free Trade Zone among the CIS countries (1994), and also in bilateral format with those countries Georgia has signed the bilateral agreements thereto.

Georgia is also a member of the multilateral Agreement on Creation of Free Trade Zone in the frame of the Organization for Democracy and Economic Development GUAM (2002).

Agreement on the creation of deep and comprehensive free trade area between Georgia and EU is effective since 1 September 2014.

On 20 March, 2018 the meeting of Customs Sub-committee under Association Agreement between Georgia and EU was held in Brussels (Kingdom of Belgium). During the meeting the decision was signed according to which the Protocol I to the Association Agreement between Georgia and EU concerning the definition of the concept of “originating products” and methods of administrative cooperation was replaced by the respective annex of the Pan-Euro-Mediterranean Convention on Preferential Rules of Origin.
 
The abovementioned amendments envisage diagonal cumulation to come into force between the EU, Georgia and the Republic of Turkey after the Turkish side has ratified respective amendments to the Free Trade Agreement (FTA) between Georgia and the Republic of Turkey. It is notable that Georgia has already finalized ratification procedures of the amendments to the FTA with the Republic of Turkey.

REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN PREFERENTIAL RULES OF ORIGIN

The “Strategic Partnership and Cooperation Agreement between the United Kingdom of Great Britain and Northern Ireland and Georgia” signed on October 21, 2019, entered into force from 31 December 2020.

Strategic Partnership and Cooperation Agreement between the United Kingdom of Great Britain and Northern Ireland and Georgia

Bilateral International Agreements on Free Trade

Georgia has signed Free Trade Agreements with the following countries: Russian Federation, Azerbaijan, Armenia, Ukraine, Moldova, Kazakhstan, Uzbekistan, Turkmenistan and Turkey.

Thus, the existing free trade regimes with Russian Federation and Turkey, unlike the other countries, envisage exceptions, in particular, the removal of certain goods from the free trade regime.

WTO Agreements

Major principle of General Agreement on Tariffs and Trade (GATT) is to liberalize trade, limit trade barriers, by lowering levels of protectionism tariffs.

General Agreement on Trade in Services (GATS) provides trade rules and code of norms agreed on multilateral levels, which regulated trade in services on international arena.

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) mostly obliges countries on the issues of abrogating intellectual property rights.

In accordance with the Agreement on Technical Barriers to Trade (TBT) each member shall issue technical regulation, avoiding any obstacles to foreign trade.

Agreement on Sanitary and Phytosanitary Measures (SPS) does not include any restrictive measures or licenses on import, re-export, and transit of goods, except the measures, which aim to protect human health, animals and plants.