Trade Facilitation and Information Exchange in Georgia

1 Georgia-Eurasian Transit Corridor

Georgia is a member since 1993 Georgia is a member since October 2016

Georgia

Georgia

2 Rapidly Increasing Market Size by FTAs

Simple and Service Oriented Customs Policy and Administration

No Quantitative Restrictions or Tariff Barriers CIS - FTA EFTA - FTA

80% of Goods Free From Import Tariff Turkey - FTA EU - DCFTA

China - FTA US, Canada, Japan - GSP

India – Ongoing Consultations on Israel – Signed Memorandum on FTA FTA 3 Integrated Border Management concept

SPS border control

Customs control 2006

Tax 2007 administration 2010 Passport Control One Stop Shop Principle Revenue Service

• Reduced transit formalities

• Paperless environment

• Effective control mechanism based on risk management

One Stop Shop Principle

5 Customs Clearance Zone - One Place, Multiple Services Revenue Service

Clearance of goods

Free Parking Zone Different options for clearances

Bank Service Certificates and permits

Physical inspection of goods and commodity expertise 6 Unified Electronic System of Licenses, Permits and Certificates

Digital customs

• At present 7 state agencies are part of the system issuing about 25 Ministry of Culture Ministry of health licenses/permits/certificates. and Sport

• More than 50% among them are issued by Georgia Revenue Service. Ministry of Economy Ministry of Agriculture and and Sustainable Natural Resources • Online validation of Certificate of Origin development for CT1 in place.

• Same system is Planned with China Ministry Ministry of Defense of Interior

7 Exchange of advance information

Digital customs

Ongoing Projects Joint Customs Control

International cooperation and coordination

Summary Summary declaration declaration

Control Control

9 Data Transmission

Some of data elements include: - Informational about the driver - Truck number - Consignor - Consignee - HS code - Weight - Seal number - Exchange of X-ray images Benefits of JointAdvantages Customs Control

- Streamlined procedures at Customs Crossing Points

- Avoiding duplications of procedures at CCPs

- Risk based customs control

- Facilitation of trade Information Exchange

CAREC - Advanced transit System – CATS Georgia, Azerbaijan and Kazakhstan (Customs Information Common Exchange - ICE) project

Implementation of API/ PNR eTIR –TIR Computerization- Intermodal corridor between Ukraine, Georgia, Azerbaijan, Kazakhstan Integration with EU

>> New Customs Code in compliance with Union Customs Code

>> Simplified customs procedures

>> Stabile business environment

>> Reduced costs for private sector

13 Authorized Economic Operator-AEO

14 Transit – Twinning project

Supporting the Accession of Georgia to the Conventions on Transit Area and Launching of the New Computerised Transit System (NCTS)

Objective of the project is to facilitate Georgia’s connectivity with existing EU customs systems in line with the provisions envisaged under AA/DCFTA

The Consortium of Finland, Poland and Latvia

Project duration: 24 months

Budget: 1.5 M €

15 Time Release Study 2016, 2019

Regime Minimum time Maximum time Average Moda

Transit 2 min 24 min 7 min 5 min.

Import 2 min 26 min 7 min 5 min

Average 2 min 29 min 7 min 5min

Regime Minimum time Maximum time Average Moda Transit 2 min 14 min 4 min 4 min

Import 2 min 17 min 6 min 3 min

Export 2 min 17 min 5 min 3 min DOING BUSINESS, 2019

New Zeland 1 Singapore 2 Hong-Kong 4 Georgia 6 Norway 7 USA 8 United Kingdom 9 Lithuania 14  Estonia 16 Ist place in Europe and Central Asia Region Latvia 19 Germany 24  12 place in Paying taxes Azerbaijan 25 Kazakhstan 28  43th place in Trading Across Borders Russia 31 Poland 33 Czhech Republic 35 Armenia 41 Slovak Republic 42 Turkey 43 Ukraine 71 THANK YOU FOR YOUR ATTENTION

Irina SIGUA Advisor International Relations Department 68a, Kostava St., 0179 Tbilisi, Georgia Tel : +995 322 26 28 01 Georgia Revenue Service E-mail: [email protected] Tax and Customs Administration Web : www.rs.ge SPS Border Control Agency

18