Project: Prospects of Georgias Integration In the EU Customs Union

Overview of Georgian Customs System

Bondo Bolkvadze
Senior Consultant Policy and Management Consulting Group - PMCG

Tbilisi, Georgia June- 2010

Organization: Policy and Management Consulting Group -PMCG Funder: German Marshall Fund of the United States

Funding was provided by The Black Sea Trust, a project of German Marshall Fund of United States. Opinions expressed in the written or electronic publications do not necessarily represent those of the Black Sea Trust, the German Marshall Fund, or its partners.

Table of Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. General information ............................................................................................ 3 Organization and structure of Georgian customs ........................................ 5 Human resource management ......................................................................... 7 Customs legislation ............................................................................................ 8 Post-clearance Customs Control ................................................................... 10 Risk management .............................................................................................. 11 Customs valuation ............................................................................................ 12 Import-export duties and revenue collection .............................................. 13 Customs disputes resolution.......................................................................... 15 Authorized economic operators ..................................................................... 17 IT implementation .............................................................................................. 17 Intellectual property rights .............................................................................. 18 Trade across border ......................................................................................... 19

Georgia

1. General information
Independence from the Soviet Union declared - April 9, 1991 Capital (largest city) - Tbilisi 4143N 4447E Official language(s) - Georgian Ethnic groups - 83.8% Georgian, 6.5% Azeri, 5.7% Armenian, 1.5% Russian, 2.5% other [3]

Government - Unitary semi-presidentialrepublic Area (Total) - 69,700 km2 (120th) Population 2009 estimate - 4,385,400(Statistics Georgia) (122nd) Density - 61.1/km2 (134th) GDP (PPP) 2009 estimate - $20.862 billion; per capita - $4,757 GDP (Nominal) 2009 estimate - $10.737 billion; per capita - $2,448 HDI (Human Development Index 2007) - 0.778 (medium) (89th) Currency Lari () (GEL) Time Zone - UTC (UTC+4) Member of WTO since June 14, 2000 Member of WCO since October 29, 1993 Exports - $ 1.766 billion (2009 est.); Main exported product - scrap metal, wine, mineral water, fruits and nuts; Main partners Turkey 17.6%, Azerbaijan 13.7%, Ukraine 9%, Canada 8,8%, Armenia 8.2%, Bulgaria 7.2%, USA 6.8% Import - $ 4.477 billion (2009 est.); Main imported product fuels, vehicles, machinery and parts, foods, pharmaceuticals; Main partners Turkey 14.9%, Ukraine 10.4%, Azerbaijan 9.6%, Germany 7.9%, Russia 6.8%, USA 5.7%, China 4.7%, UAE 4.4%.

Abbreviations:
MoF Ministry of Finance; RS Revenue Service; MoIF Ministry of Internal Affairs; LEPL Legal Entity of Public Low; SAD Single Administrative Document; EU European Union; EC European Commission; WTO World Trade Organization; WCO World Customs Organization; UNCTAD United Nations Conference on Trade and Development; CIS Commonwealth of Independent States; FTA Free Trade Agreement; IT Information Technology; IPR Intellectual Property Rights.

2. Organization and structure of Georgian customs

Georgian customs was merged with tax administration creating Revenue Service as main revenue collecting agency in 2007. However, as in most other countries with a similar organizational framework, integration is limited to human resources management and a few other headquarters functions. Revenue Service of Georgia has a status of Legal entity of public law under supervision of MoF. The Law on Revenue Service defines services functions and objectives; specific functions of each department and unit are detailed in internal provisions decree of Revenue Service. Central headquarters: Supervisory body of all customs agencies. There are nine departments that define customs strategy; methodology; action plan; Solve customs disputes; elaborate legislation; monitor law enforcement process etc. Regional Centers: Customs operations are handled by seven regional centers. Regional centers plan and control activities of Customs checkpoints and clearance offices. Border Customs checkpoints: Border checkpoints are operating every day 24 hours. However they have anti-smuggling functions, but Georgian Customs is mainly oriented on fiscal targets. Resources are used on search and inspections of individuals and means of transport, as well as electronic and documentary registration of shipments for further customs clearance needs. Because of lack of adequate infrastructure at the border crossing points, imported goods are generally transferred to private owned ICDs (abbreviation) for customs clearance. Border customs checkpoints provide only registration of imported goods, but there is no room for logistics and warehousing, which is so crucial for customs clearance. Even Poti sea port facilities dont allow going through all customs procedures in docks. In total there are sixteen border customs checkpoints, though only eleven of them are fully operational without any restriction on movement of cargo or passengers. Customs Clearance offices: There are ten customs clearance offices under the regional centers that clear all cargo in Georgia, except minor imports by passenger, who are served at border checkpoints. Customs clearance offices work eight hours a day except weekends. Overtime service is available due to payment of additional overtime fee. Staff is divided according to operational lines: 1) unit that serves only documentary control of goods, 2) unit that serves both documentary and physical inspections of shipment; and 3) unit that serve to specific regimes other than import.

Revenue service
Central headquarters Regional centers

Administrative department 32 Apparatus of head of revenue service 6 Legal department 11 Disputes department 30 Department of methodology 35 Customs control department 65 Internal audit 15 Revenue collection department 38 Bureau of international relations 7

Tbilisi (detailed structure see below) Rustavi

Telavi

Gori

Kutaisi

Poti

Batumi

Akhaltsikhe

Guria

Abkhazia

Tbilisi Regional Center

Administrat ion 38

Legal unit 24

IT and analytical unit 7

Service unit 154

Control unit 148

Unit for special measures

Customs clearance and control unit 121

Customs checkpoint Tbilisi Airport 39

Customs checkpoint Kazbegi 42

3. Human resource management

Reforms: Customs staff reform was the first important step taken by Georgian Government for modernization of the system. At present, over nine hundred customs officers work in Georgian Customs offices. Since 2005, more than 95% of the staff has been changed. Reforms intended to remove all corrupt personal and replace them with young motivated staff. Administration has elaborated standard rules, according to which new recruits have to go through two month training and four-month internship program before appointed. Replacement process was very intensive and it went by eliminating any links between new and old staff, which resulted in two outcomes: 1) New team was prevented to inheriting a total corruption from their predecessors; 2) they lack practical experience and skills. Nowadays its difficult to find a customs officer with more than two or three years experience. Anyway, such radical approach to staff reform is approved by Georgian customs administration, as they got rid of corruption (level of corruption was dramatically reduced in last five years), but it brought to another problem that seriously damages business climate and trade facilitation Lack of professionalism and skill of Customs officials. Training: Training capacity isnt highly developed, though RS made significant progress in this direction last year. Nowadays customs officers are trained mainly in the Academy of MoIF, while the Financial Academy of MoF is newly established and just began working on the strategy and action plans. 189 customs officers were trained in various professional courses during 2009. Training materials are developed by trainers who have biggest positive experience of working in the Georgian customs system, though they arent certified trainers. Weakness: Very high turnover of customs staff is still evident. 167 new recruits were trained only on 2009. Customs administration doesnt have any effective program for retention, motivation and long term development of personal.

The roles and responsibilities of each function, and of employees working at all levels within each function, arent clearly defined. Job descriptions highlighting the minimum levels of knowledge, skills and aptitude required for competent performance is not in place. Code of conduct for customs officers isnt elaborated. Only a few provisions can be found in various regulations about customs officers behavior. Anyway, customs became much more user-friendly and consumer oriented during recent 2-3 years, but there is a lot more to be done.

4. Customs legislation
Structure and hierarchy: Georgian Customs legislation consists of International Conventions, international bilateral and multilateral agreements, Customs code of Georgia and Secondary customs legislation. International Conventions and agreements take priority over national legislation where it contradicts. They are signed by Government of Georgia and ratified by Parliament. Customs code is the main document laying down general provisions and policies of customs administration. Present Georgian Customs code was elaborated on bases of EU customs code in 2006 and entered into force from January 1, 2007. Customs code is approved by Parliament of Georgia and it takes priority over secondary customs legislation. Secondary customs legislation generally provides implementing provisions for Customs code. Secondary legislation is approved by decrees of President, Government of Georgia and Minister of Finance. List of international conventions in customs area that Georgia has signed: 1. International convention on harmonized commodity description and coding system since 2009 2. Convention on Containers since 1999 3. International convention on mutual administrative assistance for the prevention, investigation and repression of customs offences (Nairobi convention) since 2009 4. International convention on harmonization of frontier controls of goods since 1999 5. Customs convention on international transport of goods under cover of TIR carnets (TIR convention) since 1994 6. Convention on the contract for the international carriage of goods by road (CMR convention) since 1999 8

Overview of Georgian customs legislation: Customs legislation was elaborated according to EU model in 2006. However some gaps and differences between Georgian and EU legislation are evident. Customs regimes Seven customs regimes are in place: Release for free circulation; Export; Transit; Temporary import; Customs warehousing; Inward processing relief; Outward processing relief. Processing under customs control doesnt exist as a separate regime, but its provisions were merged with Inward processing relief creating one regime. Besides, there are approved treatments like re-export, abandonment of cargo with transfer of ownership to Government, destruction of goods under customs control and allocation of goods in free zones or free warehouses. Relation between traders and customs: Traders can have direct relation with customs or exploit customs representative (customs clearing agent). Customs representative shares responsibility on procedures he caries out on behalf of trader. To operate as authorized customs representative, any company is required to produce financial security covering at list 50 000 GEL. Binding information In many developed countries if trader doubts about the legality of operations he wants to perform, he can require (an approval?) from customs to make a decision prior to importation of goods. It applies not only on imported cargo, but any operation which must be approved by customs authorities. Such information has binding power and trader cannot be subject to any punishment or prosecution if he follows the prior decision made by customs authorities. Georgian customs has an obligation to provide prior decisions upon traders request but without binding power. It means that if trader wants to put goods under specific regime and he asks customs about the legality of such operation, he may receive prior approval (prior customs decision), but he isnt insured from punishment, even in case, when he follows such decision, because any other customs officer can interpret the legislation in different way. Customs penalties Penalties are addressed to specific violations and the amount of penalty is firmly defined for each case. This doesnt give customs officer flexibility in decision-making. On one hand flexibility is very important to make fair and reasonable decisions, but on the another hand such approach eliminates corruption risks. Total exclusion of human factor resulted unfair treatment to traders who make mistakes. If two traders reduced duties but first did it by mistake and another did it intentionally, both are treated with the same severe measures because legislation doesnt allow investigation of cases to find out whether it was a fraud or mistake. This problem requests immediate respond. Voluntary compliance In any normal trade relation there are cases when certain financial aspects concerning to shipment became clear after goods

are imported and released. Amendment (correction) of customs declaration is standard action to keep records clean in such cases. In Georgia voluntary amendment of SAD is available after the release of goods, but legislation doesnt protect trader from penalties or any other punishment measures applicable to the mistake made at the moment of release of goods. Such provisions do not stimulate traders to keep their records clean and remain compliant. Origination of goods Georgian legislation provides rules for preferential and non-preferential origination of goods. Preferential origination applies to goods imported from Turkey and former CIS countries with which Georgia has Free Trade regime. Rules are defined in relevant FTA documents. Customs warehouses and ICDs Majority of shipments are cleared in customs warehouses, which are authorized by customs. Unfortunately, legislation does not differentiate customs warehouses and ICDs. These are private owned bonded terminals with very strict security requirements, authorized for temporary storage of goods until it is cleared. They are also authorized to serve for commercial long-term storage of un-cleared goods. So, Georgian legislation establishes some kind of syndicate of ICD and customs warehouse.

5. Post-clearance Customs Control

Capacity: Post-Clearance control remains a biggest challenge of modern Georgian Customs administration. However, top management understands the importance of high-qualified post-clearance team and is fully committed to the idea. Customs is in need of qualified post-clearance team that can effectively eliminate any financial risks caused by simplification of customs clearance procedures at the frontier. Unit is in place within the customs control department responsible for customs audit, though it needs long-term development strategy to comply to necessary standards. Auditors are trained in various fields relevant to their duties: customs procedures and rules that have to be applied risk analysis and risk assessment bookkeeping, Electronic data processing (EDP) auditing. Trainings are not provided on a continuous basis. Legislation: Relevant Customs legislation is under construction. When new customs code entered into force in January 2007, post-clearance control

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regulating provisions were missing due to lack of capacity for its implementation. In 2009 Revenue Service decided to begin implementation of post-clearance control and relevant Chapter IV was added to the Customs Code, but regulations are very general and poor mainly repeating regulating provisions of tax audit. Detailed instructions should be elaborated providing detailed guidelines for customs officers. Guidelines should cover: Valuation audit, Origination of goods, Commodity classification, Audit of specific customs procedures (IPR, PCC, Warehousing, End use relief, etc); instructions for field audit, interviewing techniques; etc Existing practice: Nowadays, RS has slightly developed methods of auditing customs warehouses. Customs valuation inspection is carried out regularly, but approach is very standardized, mainly they use the method of doublechecking of exported value of goods in the country of export. This method is based on intergovernmental cooperation and there were cases when it helped to disclose fraud, nevertheless, sometimes it is not effective especially in trade relations with countries with liberal economies like Dubai, that dont control export value of goods.

6. Risk management
Overview: Risk based cargo selectivity program was implemented in Georgian customs in 2009. At this stage risk-management operates in inland customs clearance offices, but not at the border checkpoints. Risk criteria integrated in customs information processing program ASYCUDA WORLD enables automatic selection for physical inspection of declared cargo. Now only 10-15% of all cargo is selected for physical inspection instead of total inspections that used to be pure formality and absolute waste of time and resources for customs because of low effectiveness. As a result customs uses its resources more effectively now. Physical inspections are carried out according to specific instructions provided by legislation or generated by electronic system based on risk analysis. Declared goods can go through one of the four channels: - Green (automatic release) - Yellow (only documentary inspection) - Red (documentary and physical inspection) - Blue (same as green but subject to post-clearance audit) However, no similar systems are in place for anti-smuggling, anti-contraband and protective measures at the border checkpoints. Risk management

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doesnt apply to transit module. This fact proves once again that Georgian customs administration is mainly oriented on fiscal targets and pays less attention to original function of customs Protection of society. Benefits: Reduction of customs clearance time; reduction of customs clearance costs; creation of non-corrupt environment by minimizing human factor in decision-making process; Weakness: - Criteria must be updated regularly to keep the system effective and address to risky cargo. Unfortunately, current system doesnt immediately respond to any changes in import-export risks. - Georgian customs administration has simply defined the percentage of how much cargo must be subject to physical inspection and this threshold is uncial for entire country. Unfortunately, this decision isnt based on any justified judgment of risks according to regions, clearance offices, seasonal risks, human resources etc. - Risk Criteria should be further developed and fine-tuned and a data collection system for risk analysis in ASYCUDA World application should be implemented to fully benefit from risk modules.

7. Customs valuation
Correct implementation of customs valuation rules ihas been problematic in Georgia since long time. As any developing country, we find it difficult to follow rules provided by GATT. Georgia is a member of WTO since 2000, so by joining this international organization we took an obligation to implement all those trade related issues according to WTO frameworks. However if we analyze legislation in the area of customs valuation, we could hardly notice minor differences between Georgian legislation and Agreement on implementation of article VII of GATT. Georgian customs code covers all aspects of customs valuation in line with international standards, though we experience big problems in practical implementation of what is written on the paper. Problems are the following: No adequate capacity for valuation audits No professional resources for valuation audits Instructions for valuation audit arent developed Very high risk trade partners Undervaluation causes huge budgetary problems due to significant share of customs duties in state budget.

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Due to abovementioned problems, Georgian customs tried to control undervaluation problem by unacceptable measures during 2005-2008. The price list was issued establishing prices (customs value) for all kinds of cargo, according to which customs was clearing imported goods. It was critically discriminative for shipments from specific risky countries because invoices of such shipments were totally rejected and clearance was possible only on basis of customs values given in price lists. Definately such rules were against any civilized standards of international trade relations and customs got reed of this practice from 2008. Now absolute majority of shipments are cleared according to transaction value method (first method) but there still are cases when customs administration violates valuation rules and makes unreasonable correction of declared customs value. Despite of such changes (switching to first method of customs valuation) I would say that problem isnt solved. Problem is only partially solved, or maybe we can say that its solved for business only. On another side, there are increased risks of undervaluation due to weakening of valuation control at the frontier while no effective post-clearance valuation audit systems are in place. Possible solution: Only strong capacity building within customs administration (post-clearance valuation audit) can balance risks and normalize relations between customs and trade sector. Within the implementation of GATT valuation standards, a system to properly monitor invoice values needs to be put in place urgently to mitigate the risks on undervaluation. The importance of this issue is doubtless, as it is directly connected to one of two major interests of customs trader - How much customs duty I have to pay?

8. Import-export duties and revenue collection

Georgian Customs administrates import duties that include import VAT and Excise, Customs duty and Customs fee. Government was following a strategy intending to reduce Customs duty gradually until the absolute abolition. During 2007-2009 only food products and narrow range of constriction materials were charged by customs duty, but due to increased financial needs during global economic crisis Government

13

increased the number of goods that are charged by customs duty. Duty rate differs up to 12% and is calculated based on customs value of goods. Import VAT has the biggest share in import duties. VAT rate is 18% and is calculated based on import customs value of goods plus all applicable other import duties according to Georgian legislation. Excise is charged according to amount of imported goods with no respect of value of goods. Customs fee is charged for customs services like clearance, registration of goods, paperwork etc. Customs fee is 60 EURO per SAD. No export duties are in place with only exception of Iron wastes, which is excisable. VAT and Excise duty is zero rated on export.

Table 1. Revenue performancecentral government, 200509 (GEL millions) 2005 Total collections Including: Indirect taxes 1 - VAT - Excises Direct taxes - Corporate income tax - Personal income tax Other taxes Customs duty 2,411.5 1,273.8 987.4 286.4 500.0 210.3 290.7 513.2 123.4 2006 3,149.4 1,668.3 1,332.7 335.6 727.0 341.1 385.9 621.7 132.4 2007 4,391.7 2,402.3 1,973.7 428.6 1,081.6 554.8 526.8 855.3 52.0 2008 4,752.7 2,587.5 2,069.0 518.5 1,888.6 592.3 1,296.3 224.7 51.9 2009 4,388.9 2,494.9 2,051.7 443.2 1,636.3 518.4 1,118.9 220.6 35.9

6065 percent of VAT and 7075 percent of excise taxes are collected on imports.

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Table 2. Customs collectionsdistribution by regional centers (2009) (GEL millions) VAT - Tbilisi Regional Center - Kutaisi Regional Center - Rustavi Regional Center - Poti Regional Center - Batumi Regional Center - Telavi Regional Center - Akhaltsikhe Regional Center Total 911.7 32.3 18.0 109.6 148.6 0.6 5.2 1,226.4 Excises 202.0 16.4 34.5 37.9 36.6 0.9 0.4 328.9 Others 3.1 0.2 2.3 1.6 1.6 0.0 0.0 9.1 Customs duties 19.6 0.5 4.2 6.1 4.2 0.1 0.8 35.9 Total 1,136.6 49.6 59.1 155.3 191.1 1.7 6.7 1,600.4

Duties are paid via bank transfer upon submission of Customs clearance documents. The process is paper based and requires simplification. Payment of liabilities or potential liabilities is required, or the appropriate security must be in place, before goods are released for free circulation; exceptions are available only for compliant traders (Gold list members who can credit duty payment without interest).

9. Customs disputes resolution

Dispute solution system remains biggest challenge in Georgian Customs which needs immediate respond. How it works: In current customs code there is a direct link to Tax code dispute solution system saying that all customs disputes should be solved similarly to tax disputes. We have three-stage appeals system with relevant hierarchy. First and second stages are within the MoF system. Any customs decision or can be appealed in Revenue Service. Decision made by Revenue service can be appealed in the Dispute solution council of the MoF. The third and highest step in the hierarchy is court where any previous decisions can

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be appealed. However, if customs trader prefers, he can directly appeal in the court ignoring all previous stages. Right of appeal: Due to recent changes in Georgian Customs Code right of appeal is firmly granted to anybody despite the circumstances and his identity. Cost effectiveness: Cases of customs disputes is much less than tax disputes. There are specific reasons why traders avoid having disputes with customs. Georgian legislation doesnt allow release of goods before any customs liability is fulfilled. If a trader appeals against customs decision then his shipment is generally arrested at customs, until everything becomes clear. Dispute solution process can last several weeks or even months if it goes through all three stages of appeal system. While appeal is under process trader has to pay all logistical costs related to keeping goods in clearance depot, container costs and any other treatment costs if necessary; obviously it becomes not cost effective. General provisions of Georgian Customs Code article #86 allows release of good if financial security (Bank guarantee; Insurance policy; cash deposit) covering all possible liabilities is provided, though there are no exact rules of implementation of this norm. Competence of court: Court should balance decisions made by customs as it is the only authority outside the MoF system where trader can appeal. Unfortunately, Courts are characterized with lack of competence in fiscal area. There arent any fiscal specialized units within the court unlike criminal and multiple administrative directions. There were cases when traders appealed in the court against customs decisions and court addressed to customs administration for clarification of certain technical details described in the appeal because in most cases court has no adequate professional resources to discuss customs appeals. Such facts prove that Georgia cant have fair dispute solution system if there is only one competent authority that makes decisions and discusses appeals against his decisions himself. Transparency of decisions: Another problem is transparency and power of precedent. Decisions made by Revenue Service and MoFs dispute solution council arent transparently published and accessible. Subsequently decisions dont have power of precedent which could be helpful.

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10.

Authorized economic operators

Georgian customs legislation provides simplified procedures for compliant companies who meet certain criteria set by, so called, gold list program. The program can be considered as analog of EU concept of authorized economic operators. Criteria are based on trustworthiness and solidity of companies; they should have clear records with tax and customs authorities. At present over two hundred Georgian companies are participants of the gold list program and enjoy all its benefits. Benefits of program: Credit in payment of customs duties Importer can pay duties within one-month time from importation; Possibility to clear the goods directly at importers premise Program members dont need to visit ICD to carry out clearance operations. They can directly take the goods from borders to their warehouse; Electronic submission of customs declaration (SAD) Any importers other then gold list member is not authorized to use internet access to the customs system to submit documents; Documents are not necessarily required Participants of program should provide customs documentation only in case if the shipment is recognized risky by the system. Weakness: Criteria set for participation in the program are discriminative for small traders, as only large traders are accepted. At present, program covers only limited amount of customs regimes but it is still under intensive development process.

11.

IT implementation

IT is one of the most reformed areas in customs administration during last five years. It is very important that IT department was restructured recently and it became LEPL under the umbrella of ministry of finance. IT implementation strategy covers four directions: Support and development of existing systems; Support for business continuity; Expansion of electronic services; Development of new integrated solution. The MoFs IT department is planning to implement the ITSM (Information Technology systems management) methodology and prepare a full transition to ITIL (information Technology Infrastructure Library) standards next year. Complex Security and ICT Systems assessment that should become a foundation for the transition to ITIL standards was implemented in early 2010. Disaster recovery/ Business Continuity Center will be completed

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in 2010 creating a guarantee for the stability and reliability of MoFs ICT systems, providing continuous support for all business processes. Weakness: Regular traders (except gold list members), customs warehouses, freight and customs agents dont have internet access to the system. therefore, paperless customs operations arent enabled in Georgia. Implementation of services like e-filling, e-payment, e-submission of document can dramatically change the Level of development of Georgian Customs. Georgian customs clear about 1000 SAD daily. Due to technical inefficiency this declarations can be submitted only through Customs clearing agents (customs brokers). Clearing agents have access to customs electronic system through fiber optics cable. This service costs on average 50 GEL which means that by proper implementation of customs e-filling trade sector can save 50 000 GEL daily operational costs. ASYCUDA WORLD: Customs is using ASYCYDA system for information processing and data exchange. IT department is upgrading the system from old ASYCUDA++ version to a new ASYCUDA WORLD version, which is already installed in all customs offices throughout the country. Several crucial modules such as E-filling, E-payment, Safe-TIR, e-exchange of information between other governments agencies arent implemented yet though these topics are in IT departments priority list for nearest future. System was audited by several European experts from different organizations and they concluded that it can meet highest operational standards. Revenue Service receives very big support in this area from international donor organizations. UNCTAD took responsibility to assist in implementation of ASYCUDA WORLD; assistance includes training of staff, technical assistance, etc.

12.

Intellectual property rights

Legal basis for enforcement of IPR exists. Law about border operations concerning to IPR protection contains relevant regulations though it may not be fully compliant with International agreements and standards (e.g. TRIPs agreement, EC regulations). Customs authorities can take action against goods suspect infringing IPR under any customs procedure. An IPR IT database is established to provide tools for customs risk management with the possibility to access list of companies and key products. Specific risk-analysis modules for control of counterfeit and pirated goods arent developed and implemented. There is no systematic, in-house training to ensure expertise in the IPR field.

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13.

Trade across border

This page shows summary of World Bank Doing Business 2010 data for Georgia. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. The rest of the tables summarize the key indicators for Trade across Border.

Georgia
Region: Eastern Europe & Central Asia Income category: Lower middle income

Ease of...
Doing Business Starting a Business Dealing with Construction Permits Employing Workers Registering Property Getting Credit Protecting Investors Paying

Doing Business 2010 rank

Doing Business 2009 rank

Change in rank
+5

11

16

+2

10

+1

30

27

-3

41

38

-3

64

112

+48

19

Taxes

Trading Across Borders Enforcing Contracts Closing a Business

30

85

+55

41

42

+1

95

95

Trading Across Borders

DB10 rank:

30
DB09 rank:

85
Change in rank:

+55 The costs and procedures involved in importing and exporting a standardized shipment of goods are detailed under this topic. Every official procedure involved is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods.

Indicator
Documents to export (number) Time to export (days) Cost to export (US$ per container) Documents to import (number) Time to import (days)

Georgia
4 10 1,270 4 13

Eastern Europe & Central Asia

6.5 26.8 1,581.8 7.8 28.4

OECD Average
4.3 10.5 1,089.7 4.9 11.0

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Cost to import (US$ per container)

1,250

1,773.5

1,145.9

Trading Across Borders in Georgia

This section covers the procedural requirements for domestic businesses in Georgia to export and import a standardized cargo of goods by ocean transport. Every official procedure for exporting and importing the goods is recorded along with the time and cost necessary for completion. The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009. The tables below list the procedures necessary to import and export a standardized cargo of goods. The documents required to export and import the goods are also shown.

Nature of Export Procedures

Duration (days)
4

US$ Cost
255

Documents preparation Customs clearance and technical control Ports and terminal handling Inland transportation and handling Totals:

30

2 2 10

235 750 1270

Nature of Import Procedures

Duration

US$

21

(days)

Cost

Documents preparation Customs clearance and technical control Ports and terminal handling Inland transportation and handling Totals:

255

60

2 2 13

235 700 1250

Export documents
Bill of lading Certificate of origin Commercial invoice Customs export declaration Export license Packing list Technical standard/health certificate

Import documents
Bill of lading Certificate of origin Commercial invoice Customs import declaration Import license Packing list Terminal handling receipts

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