Tariff and non-tariff regulation of Georgia's foreign trade
Georgia has one of the most liberal and competitive trade regimes in the region. As of September 1, 2006, changes in tariff policy reduced the number of import duty rates from 16 to 3-0%, 5%, and 12%. At the same time, customs duties have been eliminated on approximately 85% of imported goods. Seasonal tariffs are also not applied. Under Georgian law, exports and re-exports from Georgia are exempt from customs duties.
Since September 1, 1997, Georgia has applied a value-added tax (VAT) based on the destination principle. Consequently, exports of goods from Georgia are exempt from VAT, and VAT and excise tax rates are the same for both domestically produced and imported goods.
A free trade regime for goods is in effect between the Republic of Belarus and Georgia. Following Georgia’s withdrawal from the CIS, the Republic of Belarus and Georgia, through an exchange of notes, confirmed their readiness to apply in their mutual trade the provisions of the Agreement on the Establishment of a Free Trade Area dated April 15, 1994, as well as the relevant rules for determining the country of origin of goods.
In regulating foreign trade, Georgia generally does not apply non-tariff restrictions, including quotas, licenses, permits, and bans, except in cases where such measures are necessary to protect public health, ensure safety, safeguard the environment, and fulfill international obligations.
The licensing procedure applies, in particular, to certain categories of goods subject to special control. These include products subject to veterinary and phytosanitary control; electronic surveillance equipment; waste, ozone-depleting substances, and certain environmentally sensitive goods; nuclear and radioactive materials; weapons, ammunition, and military goods; dual-use goods; medicines and pharmaceutical products subject to special control; non-iodized salt; as well as species of wild flora and fauna, their parts, and derivatives listed in the appendices to the CITES Convention.
Permits for these categories of goods are issued by authorized Georgian government agencies, including the National Food Agency, the Revenue Service of the Ministry of Finance, the Ministry of Environment and Agriculture, the Agency for Nuclear and Radiation Safety, the Ministry of Defense, the Ministry of Internal Affairs, the Ministry for the Affairs of Forcibly Displaced Persons from the Occupied Territories, Labor, Health, and Social Protection, as well as other competent authorities, depending on the type of goods and the nature of the foreign trade transaction.
To check rates for import duties, VAT, excise taxes, exemptions, restrictions, and required documents, use the “HS Codes” section on the Georgian Revenue Service website.
Resource link: https://www.rs.ge/CommodityCodes-en?cat=1&tab=1
For goods that may be subject to non-tariff controls, you should also check the sections of the Georgian Revenue Service website related to dual-use goods, technical regulations, pharmaceutical products, pesticides, chemicals, radioactive materials, and other special categories.
Resource link: https://www.rs.ge/LegalEntityNonTariffControl-en?cat=2&tab=1
