Trade in Goods
The Agreement regulates conditions and liberalization of customs fees for bilateral trade of products. As per the Agreement’s preliminary entry into force on 1 September 2014, all customs duties for goods originating in Georgia being imported into the EU are eliminated.
The following arrangements apply for certain products exported from Georgia to the EU:
- The EU “Entry Price” – Ad Valorem fee and– on 28 tariff lines (0.3% (9383) of the full tariff list) the European Union “Entry Price” will be in effect (i.e. fixed fee on imports). In such cases, when importing into the EU, if a product originating in Georgia carries a lower invoice price than the EU-enacted fixed fee, the importer will pay the difference between the fixed and the invoice prices. However, if the product carries a matching or higher price than the EU-enacted fixed fee, the product will be absolved of the “Entry Price” mechanism. Additionally, Ad Valorem customs duties do not apply on products originating in Georgia, that applies to aforementioned 28 types of products during ordinary trade regimes.
- Anti-circumvention Mechanism – 277 tariff lines (3% of the full tariff list (nomenclature)) of agricultural and processed agricultural products are subject to the anti-circumvention mechanism. The mechanism works the following way. During each calendar year, once the import volume of one or more products subject to the anti-circumvention mechanism reaches 70% of the fixed threshold, the EU will notify Georgia about the exact volume of the imported products. Georgia may then present the EU with arguments (e.g. growth of production, harvest abundance, etc.) on the possible grounds for exceeding the import limit. In this case Georgia will be able to proceed with product exports in excess of the quantity of the anti-circumvention mechanism without EU customs duties.
- Tariff rate quota – the tariff rate quota (termination of customs duties within the limits of a fixed amount) applies only to garlic and amounts to 220 tons. During each calendar year, garlic originating in Georgia can be imported up to this set amount without customs duties.