Georgia has a very distinct economic direction: According to the website of the Ministry of Economy and Sustainable Development of Georgia, our country prioritizes an open and free trade environment for local entrepreneurs as well as international partners and foreign countries.

The main goal is to integrate Georgia into international economic circles, to generate bilateral and multilateral trade in the region and worldwide free trade. This means reducing existing technical barriers so that both products and services produced in Georgia catch up to European standards.

The country's trade course is to actively analyze the results of international trade, correct existing gaps and encourage exports. The relevant authorities conduct active negotiations regarding the implementation of the DCFTA (Deep and Comprehensive Free Trade Agreement) in cooperation with the relevant structures of the European Union.

The Ministry of Economy and Sustainable Development of Georgia operates for citizens interested in trade, export and import, and its duties include:

• Elaboration of the country's foreign trade policy;

• Development of projects of international trade agreements between governments, initiation of negotiations, coordination and monitoring of their implementation;

• Working on issues of development of trade regimes of Georgia;

• Preparation of the analysis of the country's foreign trade balance and proposals for its improvement;

• Analysis of the fulfillment of the obligations of the World Trade Organization (WTO), work on issues related to WTO activities and conducting notification procedures;

• Within the scope of competence, work on issues of integration into the European Union and cooperation with relevant agencies of the European Union;

• Participation in the process of implementation of the Association Agreement with the European Union;

• Coordination of the implementation of the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union between state entities and cooperation with the relevant bodies of the European Union.

Enterprise Georgia was established under the Ministry of Economy and Sustainable Development of Georgia in 2014. Enterprise Georgia is the first governmental institution in Georgia with a mandate to promote the development of the private sector (especially small and medium-sized businesses) through various financial and technical support mechanisms, as well as export support. The agency was initiated by Prime Minister Irakli Gharibashvili to encourage domestic production and increase the productivity and competitiveness of small and medium-sized businesses.

 

The purpose of the agency is:

• To introduce schemes to enable local enterprises to easily start up and operate efficiently;

• To encourage a high entrepreneurial culture among small and medium-sized businesses through training, consulting, business networking and matching;

• To give small and medium-sized businesses access to local and international financial instruments;

• To provide access to financing for SMEs through various schemes (interest rate financing, collateral insurance, grants, etc.);

• To promote local production technical assistance mechanisms in the production process, operations management and business cycle improvement;

• To carry out the international promotion of Georgian products in the target markets: exhibition, trade missions, online marketing, giving the final shape of the products;

• To help export-oriented companies gain access to a business knowledge base (market reports, target market guides).

 

Product preparation:

License and Permits

Generally, under the Georgia Licenses and Permits Law, restrictions on international trade are fairly harmless, although there are exceptions. To see the complete list, follow the link on the "Produce Georgia" website.

 

Certificates of Origin

The export of goods from the economic territory of Georgia and the issuance of certificates of origin are regulated by the Resolution No. 420 of the Government of Georgia dated December 29, 2010.

When exporting from the customs territory of Georgia, the certificate of preferential origin is EUR.1 for wine products and goods produced in free industrial zones. This certificate of origin is issued by the State Revenue Service of the Ministry of Finance of Georgia.

In all other cases, upon export from the customs territory of Georgia, the certificate of origin will be issued by the State Revenue Service and the Chamber of Commerce of Georgia. In situations where the Certificate of Origin is issued by the State Revenue Service, applications and other essential documentation can be submitted electronically.

 

Logistics

Due to its strategic location and historical importance, Georgia plays an important geopolitical role as a transit point of the Silk Road - it provides a well-established and reliable gateway for trade between the countries of Central Asia and Europe.

Of the three main roads leading from Europe to Asia, the road through Georgia is the most durable and safest. In addition, under the more or less stable political and economic climate of Georgia, the Caucasian Corridor is becoming more and more attractive for operators involved in international trade.

Realizing that the Suez Canal has reached its maximum capacity, there is clearly an opportunity to open up North-South land transport through Georgia.

 

Construction of deep-sea port of Anaklia

One of the priorities of the Georgian government is the port infrastructure, that is why great importance was attached to the construction of Anaklia port. Anaklia port will create favorable conditions for logistics services and the development of an industrial zone in the surrounding area. This development also provides an opportunity for value-added services and will lead to a significant increase in freight traffic throughout Georgia. Upon completion of the project, the country will have competitive advantages:

• Strategic location

• Possibility of receiving panamax vessels

• One-stop shop solutions

• Simple and effective procedures

• Safe navigation all year round

 

Construction of new Baku-Tbilisi-Kars railway line

The introduction of the new Baku-Tbilisi-Kars railway line will create an alternative railway route connecting Asia and Europe. Together with the TRACECA transport corridor, it will contribute to the development of the historical Silk Road and strengthen Georgia's position as a competitive route connecting Europe and Asia.

 

Development of logistics centers

The development of logistics centers will contribute to the expansion of logistics services throughout Georgia, including the expansion of value-added services. This will, over time, increase the country's transit and logistics potential and encourage a greater volume of export activity.

 

Trade Agreements

As mentioned above, Georgia is trying to strengthen its position in international economic circles and ensure further relations with its trading partners around the world. This is achieved through bilateral, regional and multilateral trade agreements, as well as the development of preferential and free trade regimes. By implementing broad and comprehensive free trade agreements with the European Union and other countries, Georgia can reduce technical barriers to trade and bring goods and services produced in Georgia in line with international and European standards.

 

Foreign trade policy of Georgia

Liberal foreign trade policy is one of the main principles of Georgia's economic policy. In accordance with this position, the Government of Georgia carried out reforms in both tariff policy and technical regulations. As a result, Georgia has one of the most liberal foreign trade policies in the world, including foreign trade regimes and customs procedures, low import tariffs and minimal non-tariff regulations.

 

Tariff policy on imports

Georgia has one of the most liberal and competitive trade regimes in the world. As of September 1, 2006, and in accordance with the changes made in Article XXVIII of the Tax Code of Georgia, import tariffs were reduced from 16 to 3 (0%, 5% and 12%). Along with seasonal tariffs, tariffs on about 85% of imported goods have been abolished.

 

Tariff policy on exports

According to the legislation of Georgia, export and re-export from Georgia is free from customs duty.

 

Indirect tax

According to the Tax Code of Georgia, the rates of value added tax and excise duty are the same for both domestic and imported goods.

 

Obtaining finances

Enterprise Georgia's mission is to support domestic exporters abroad through various financial support mechanisms. EG organizes and co-finances the participation of Georgian entrepreneurs in international trade fairs, exhibitions and showrooms. Beneficiary selection criteria, (showroom) co-financing models, company's export preparations, credits, leasing, credit guarantee mechanisms, and conditions can be found in detail on the "Trade With Georgia" website.

 

International exhibitions

Every year, thousands of associations run shows around the world. Trade shows for specific industries are sponsored by various organizations.

Exhibiting at a trade show is a great way to find customers that will help your business grow. According to a study by the Center for Exhibitions Industry Research (CEIR), 86% of show attendees were decision makers or influenced purchasing decisions. Trade shows are also a cost-effective way to make sales. According to CEIR, closing a sale that begins with a trade show contact is half the cost of closing a sale that did not have a trade show advantage.

Lastly, trade shows are popular and it's fairly easy to find one that fits your industry and your company's needs. At this link you will find Enterprise Georgia’s list of important international exhibitions

The main sectors of projects included in Enterprise Georgia are food and beverage, apparel and leather, professional services, chemicals and pharmaceuticals, heavy industry and other industries. For detailed directions, visit their website.