RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/GEO/31
31 August 1999
(99-3583)
Working Party on the
Accession of GeorgiaOriginal:  English
REPORT OF THE WORKING PARTY ON
THE ACCESSION OF GEORGIA TO THE
WORLD TRADE ORGANIZATION
INTRODUCTION
1. The Government of Georgia applied for accession to the World Trade Organization in
June 1996.  At its meeting on 18 July 1996, the General Council established a Working Party toexamine the application of the Government of Georgia to accede to the World Trade Organization
under Article XII of the Marrakesh Agreement Establishing the WTO.  The terms of reference and the
membership of the Working Party are reproduced in document WT/ACC/GEO/2/Rev.4.
2. The Working Party met on 3 March 1998 under the Chairmanship of H.E. Ms E.L. Herfkens
(Netherlands); and on 13 October 1998 and 28 July 1999 under the Chairmanship of
H.E. Ms A. Anderson (Ireland).
DOCUMENTATION PROVIDED
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Georgia (WT/ACC/GEO/3), the questions submitted by Members on the
foreign trade regime of Georgia, together with th e replies thereto, and other information provided by
the authorities of Georgia (WT/ACC/GEO/4, WT/ACC/GEO/7 and Adde ndum 2, WT/ACC/GEO/10,
WT/ACC/GEO/12, WT/ACC/GEO/ 16, WT/ACC/GEO/18, and WT/ACC/GEO/25), including the
legislative texts and other documentation listed in Annex I.
INTRODUCTORY STATEMENTS4. In his introductory statement, the representative of Georgia said that Georgia, although
relatively small in size and population, was located in a strategically important transit corridor
between the Black and Caspian Seas.  Membership in the WTO was the most important step inGeorgia's full integration into the world trading system.  His Government had declared rapid entry
into the WTO the most important priority of its foreign economic policy, and a Commission on
Accession had been established with representatives from virtually all ministries and departments.
5. Georgia was undergoing economic transition from a centrally-planned to a market based
economy, with major reforms of its trade regime, banking sector and privatization of State property.
Georgia had adopted a new Constitution in 1995, and had since then undertaken a major overhaul of
its legal system to harmonize to international norms.  In addition to basic legislation such as the Civil
Code and the Tax and Customs Codes, Georgia was introducing new legislation in key trade-related
areas such as maritime and air transport, intellectual property, standardization and certification,government procurement, privatization, and business legislation.  Parliament had made a commitment
that all new legislation, starting from 1 September 1998, should be in full compliance with the legal
norms of the European Communities.  Georgia was receiving technical assistance from individualWT/ACC/GEO/31
Page 2
WTO Members and international organizations in its process of reform and accession to the WTO.
He assured the Working Party that the Government of  Georgia would do everything required to fulfill
the commitments Georgia would be undertaking in acceding to the WTO.
6. In their opening remarks, members of the Working Party welcomed the request from Georgia
to accede to the WTO.  Many Members were impressed by Georgia's strong efforts from the outset to
provide information on its foreign trade regime, and noted that the bilateral market negotiations had
made a good start.  Although Georgia maintained so me measures which were inconsistent with WTO
rules, such anomalies were not unusual at the beginning of an accession process.  Georgia was
encouraged to continue its economic and trade reform s, which would assist in accelerating the process
of its accession to the WTO.
7. The Working Party reviewed the economic policies and foreign trade regime of Georgia and
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of
the Working Party on the various aspects of Georgia's foreign trade regime, and on the terms and
conditions of Georgia's accession to the WTO, are summarized below in paragraphs 8 to 179.
ECONOMIC POLICIES
Monetary and Fiscal Policy
8. The representative of Georgia said that the National Bank of Georgia was responsible for the
design and implementation of monetary policy.  The National Bank had been established in 1991, and
the final version of the Law "on National Bank" had been approved in June 1995.  In practice, the
National Bank worked closely with the Ministry of Finance as monetary and fiscal policies were
closely linked.
9. Georgia's fiscal policy aimed at boosting revenue to a level to finance most current
government expenditure, while relying in the main on external sources for capital outlays.  Georgia
had strengthened its tax and customs administration to improve revenue performance, and maintained
a restrained expenditure programme with emphasis on health and education.  The principal taxes
levied in Georgia were value added tax;  profit tax;  income tax;  a fixed tax on small enterprises;
excises;  customs duty;  social security levy, medical tax and employment fund tax levied on
enterprises and employees;  property tax;  and agricultural and urban land tax.  In response to aspecific question, he said that local administrations could levy taxes within the framework of national
legislation (Article 6.3 of the Georgian Tax Co de) on entrepreneurial activities, gambling business,
health resorts, hotels, advertising, car parking, and on the use of local symbols.  He confirmed that
local administrative bodies had no right to impose any other kind of taxes.
Foreign Exchange and Payments
10. The representative of Georgia said that the national currency – the Lari – was traded on the
Tbilisi Interbank Currency Exchange (TICEX) as well as in the Foreign Exchange Bureau
Market (FXB).  TICEX functioned as a wholesale market for foreign exchange between banks, whilelarge volumes of small retail transactions were ca rried out in the FXB.  The Government's exchange
rate policy was based on "managed float".  No fixed target was set for the exchange rate of the Lari,
but the National Bank of Georgia could intervene in the TICEX auction market as a buyer or seller to
smooth out temporary imbalances between supply and demand for foreign exchange.
11. Georgia had become a member of the International Monetary Fund in May 1992 with a quota
of SDR 111 million.  Georgia had accepted Article V III of the Articles of Agreement of the IMF in
early 1997.  He confirmed that the national currency was convertible on current account without any
restrictions.  No requirements existed on the right of legal and natural persons to obtain, bank orWT/ACC/GEO/31
Page 3
dispose of foreign exchange, and there were no requirements to surrender foreign exchange earned
from export operations.  He also confirmed that foreign currency needed for imports was equally
available for goods subject to import licensing.  In response to a specific question, he confirmed that a
court order was required to freeze the bank accounts of domestic and foreign-owned firms.
Investment Regime
12. The representative of Georgia said that foreign and domestic investment on the territory of
Georgia was regulated under the Law "on Promoti on and Guarantees of Investment Activity" of
12 November 1996.  Foreign investors enjoyed the same rights and protection as physical and legal
persons of Georgia according to paragraph 1, Article 3 of the Law.  Under this law, disputes between
foreign investors and enterprises registered in Georgia could be settled in the courts of Georgia or inother fora, including arbitration, such as the International Center for the Settlement of Investment
Disputes.  A registration requirement for foreign investors had been abolished by the Law "on
Amendments and Changes to the Law on Promotion and Guarantees of Investment Activities" of
26 June 1998.  He added that Georgia had concluded bilateral investment agreements with 22
countries and was currently negotiating such agreements with 7 more countries.  These countriesincluded the United States, Canada, China, and many States in Europe, the CIS, and the Middle East.
Information on investment was available from the Agency for Foreign Investment within the Ministry
of Trade and Foreign Economic Relations.
13. The representative of Georgia said that, subject to the payment of taxes and other compulsory
levies, every foreign investor had the right to transfer abroad freely and without delay all
contributions to capital, profit and other monetary proceeds generated by investment activity
(paragraph 5, Article 3 of the Law).  These rights could be restricted by decision of court in case of
bankruptcy proceedings, criminal offence or failure to meet civil obligations.  A foreign investor had
the right to transfer abroad property owned by him.
14. Investment in certain sectors was prohibited or subject to licensing (Article 9).  Permission
was required in order to engage in the production of weapons and explosives;  narcotic, poisonous and
pharmaceutical substances;  exploration and exploitation of any renewable or non-renewable
substances;  exploration of deposits of natural resources;  establishment of casinos and gambling
houses and the organization of games and lotteries;  banking;  insurance;  issuance of securities;
wireless communication services and the establishment of radio and television channels;  and anyother activities stipulated by the legislation of Georgia.
15. According to the Law "on Amendments and Changes to the Law on Promotion and
Guarantees of Investment Activities", investment was prohibited with regard to the creation,
production and proliferation of nuclear, bacteriological and chemical weapons;  construction ofpolygons for testing nuclear, bacteriological and chemical weapons;  importation of radioactive and
toxic waste;  scientific research activities connected with human cloning;  production of narcotic
substances;  cultivation of poppy, coca and hemp;  and activities prohibited by international legislative
acts, agreements, conventions and protocols to which Georgia was a contracting party.
16. Concerning land ownership, the representative of Georgia said that land was being privatised
under two laws.  The Law on Declaration of Privat e Ownership of Land in Use by Physical and
Private Legal Persons, adopted on 28 October 1998, provided that non-agricultural land could be
privatised by any Georgian natural or legal person, including 100 per cent foreign-owned legal
persons.  Privatisation of urban land had proceeded rapidly under this law.  As of 1 May 1999,approximately 3,000 parcels had been privatised.  Ag ricultural land could be privatised only by
Georgian natural persons under the Law of Agricultural Land Ownership of 22 March 1996.
Approximately 800,000 hectares of agricultural land had been privatised by about 1 million farmers
under this law as of May 1999.WT/ACC/GEO/31
Page 4
State Ownership and Privatization
17. The representative of Georgia said that the privatization process in Georgia had been divided
into "small" and "medium/large" scale privatization.  Small scale privatization had begun byidentifying some 12,088 "objects", including both unincorporated enterprises and simple assets such
as machinery, buildings and vehicles.  In some  cases, these "objects" had been transformed into
limited liability companies under the laws in force at the time;  in other cases blocks of assets had
been sold directly and possibly subsequently incorporated in some form by the buyers.  The total
number of "objects" sold exceeded the number originally identified because in some cases the objects
originally identified had been divided into two or more units for sale.
18. Small scale privatization had largely been completed by May 1999, with 13,148 objects sold
and a total of 405 remaining.  Of the latter, some 195 objects in the health care area included a
number of small hospitals and clinics, while the "Industry" category included a number of unfinished
construction projects which had been impossible to sell to date.  Most of the remaining marketable
objects in the small privatization category would be sold by the end of 1999.  "Medium/large" scale
privatization had proceeded by first identifying some 1,300 enterprises in 12 sectors.  By May 1999,
1,156 of these had been converted into joint stock companies and 929 of them had been sold (i.e. the
Government no longer held a majority of the shares).  In many cases, all shares in these companies
had been sold, and the Government continued to offer for sale the remaining shares held by it.  Of the
original 1,300 companies, 175 remained to be conver ted to joint stock companies, and of those that
have been converted, some 227 remained to be sold.  Enterprises not yet converted to joint stock
companies included strategic units such as the railroads, airports, ports, municipal utility systems,
Tbilisi subway, and major health and educational in stitutions - some of which would be sold, and
some of which would remain in Government ownershi p.  The unsold joint stock companies included a
number of large insolvent enterprises which had proved difficult to sell.  Lists of 220 joint stockcompanies in which the Government still held at least 50 per cent of the shares was made available to
the Working Party.  The objective of the Government was to complete the privatization process
substantially by the end of 2000.  The development and status of Georgia’s program of privatization is
presented in Table 1.
19. Georgian and foreign natural and legal persons could take part in the process of privatization
of enterprises with one restriction;  Georgian enterprises in which the Government owned more than25 per cent of the authorized capital could not purchase privatized property.  Privatization was carried
out by the State Property Management Ministry throug h auctions of blocks of shares, direct sales and
tenders. The Government intended to retain contro lling blocks of shares (51 per cent) only in
exceptional cases when an enterprise was of strategic interest, and the number of such enterprises was
strictly limited.  Employees had preference in the allocation of a certain number of shares.  Thegreater part of State property had been privatized by vouchers, and thousands of citizens had become
new owners of these assets.
20. A specific list of objects to be privatized was approved annually by the Ministry of State
Property Management in consultation with the Ministry of Economy, Justice and other appropriateministries.  The following enterprises were scheduled for privatization in the period 1997-2000:
(i) telecommunication enterprises, except cable and radio broadcasting networks of strategic
importance, including the First State television channel;  (ii) fuel and energy sector enterprises,
including electric energy, the coal industry, gas, oil extraction, and the supply of oil products;  (iii)
manufacturing enterprises;  (iv) agriculture and food industry except training and research institutes ofthe Academy of Agricultural Sciences of Georgia;  (v) construction related enterprises except: main
municipal pipelines, water supply, sewage and a technical evaluation bureau;  (vi) transport sector
units except "Sakaeronavigatsia";  (vii) health services excluding State medical organisations of vital
importance;  and (viii) education services.  Preparations to privatize Georgia's railway infrastructureWT/ACC/GEO/31
Page 5
had begun.  Georgian Railway would be transforme d into an LLC (limited liability company), and
only the railway tracks would remain State property.  The representative of Georgia provided a list of
joint-stock companies with the controlling block of shares kept temporarily in State hands in
document WT/ACC/GEO/10, pages 3-5.  Detailed lists of  firms owned wholly or in part by the State
as of May 1999, and objects planned for privatization in 1999, were also provided to the WorkingParty.  He also noted that information on the privatization process in Georgia was available on the
Internet at www.casebycase.org.ge  and www.georgia.net.ge/
mospm .
21. Article 4 of the Law "on Privatization of State Property" of 30 July 1997 defined State
property not subject to privatization.  Excluded fr om privatization were land of strategic importance,
minerals, water resources, territorial waters and marine economic border zones;  units of historical,
cultural and artistic value, State archives of historical and cultural importance, film and photodocuments, State funds, State museums, archives and funds of ministries, and scientific research
institutes;  Georgia's treasury and monetary reserves, reserves of precious metals, funds of national
value, social security, medical insurance and other national funds;  mobilization reserves and State
reserves;  institutions of the Academy of Sciences of Georgia;  roads for general use;  national
cemeteries and pantheons;  administrative buildings of organs of State administration; and enterprisesproducing radioactive materials and materials for military purpose, and testing, designing and
scientific institutions.
22. Asked specifically about plans to privatize the energy sector, the representative of Georgia
said that restructuring of the energy sector would be completed.  The State monopoly would be
eliminated gradually, and Georgia would invite foreign investment to help relieve the energy crisis.
Privatization of the electric energy sector was expected to be completed in 18 months, and would
proceed in several stages, as follows:
(a) In electric distribution, approximately 75 per cent of the shares of the Tbilisi electric
distribution company "Telasi" had already been privatized.  Beyond that, Presidential
Decree No. 58 of 14 February 1999 on Rehabilitation and Development of Georgian
Electric Distribution Companies and Generation Assets placed priority on the
privatization, in two lots, of the electricity distribution companies of eastern and
western Georgia.  The Ministry of Stat e Property Management and the investment
bank Merrill Lynch had prepared a proposal for presentation to interested parties.
Georgia proposed to lease the management rights of each group of companies for aperiod of not less than 25 years, with no right of purchase.  The participants could be
either Georgian or foreign legal persons;
(b) (In electricity generation, the Ministry of State Property Management had prepared a
proposal to transfer the management rights of the joint stock companies in the
hydroelectric plants to private investors for a period of at least 25 years.  A tender toaccomplish this had been published on 20 May 1999;
(c) Enterprises in the coal industry would be tr ansformed into joint stock companies, but
the State would retain 51 per cent ownership until investors could be found who
would undertake the necessary rehabilitation and modernization;  and
(d) The controlling block of shares in the joint stock companies in the oil and gas
industry would be sold by tender to investors willing to keep the companies in
business and rehabilitate them within two years.  The State companies
"Saktransgasmretsvi" (gas pipeline from Russia to Armenia) and "Saktkhevadgasi"
(import and export of refined oil products) would remain temporarily in State hands.
The decision to privatise "Saktkhevadgasi" would be taken in agreement with theMinistry of Energy and Fuel.  The State company "Saknavtobi" (oil exploration and
extraction) would be transformed into a joint stock company; the shares, except for
those granted to employees, would temporarily remain State property.  ControllingWT/ACC/GEO/31
Page 6
blocks of shares in other State-owned joint stock companies in this sector would be
sold in tenders, and remaining shares would be auctioned.
23. The representative of Georgia said that reliable statistics on the share of GDP accounted for
by State and private sectors were not available.  Roughly speaking, one third of the labour force was
employed by the State and two thirds by the private sector.  Of the State sector, a substantial fraction
was in government.  A generally accepted, but very rough estimate, was that 80 per cent of GDP was
produced by the private sector.  No statistics were available on the share of imports or exports
accounted for by State-owned companies.  On the import side, the State share was likely to be quite
small, because the majority of imports consisted of consumer goods imported by private trading
companies.  On the export side, the State share was larger, but no exact measure was available.
24. The representative of Georgia confirmed the readiness of Georgia to ensure the transparency
of its ongoing privatization programme and to keep WTO Members informed of its progress in the
reform of its transforming economic and trade regime.  He stated that his Government would provide
annual reports to WTO Members on developments in its programme of privatisation as long as the
privatization programme would be in existence along the lines of the information provided to theWorking Party during the accession process, as well as on other issues related to its economic reforms
as relevant to its obligations under the WTO.  The Working Party took note of this commitment.
Pricing Policies
25. The representative of Georgia said that the Cabinet of Ministers had adopted a series of
Resolutions in the first four months of 1992, leading to a broadbased liberalization of prices.
Additional Cabinet Resolutions in 1993 and 1994 had removed virtually all State administrative
controls on prices for energy, transport and other social services.  Price controls had been replaced by
tariff regulation of local governments or, in the case of electricity and natural gas, by independentdepartments set up for this purpose.  Milk prices had been liberalized in 1995 and the price of bread
had been deregulated in June 1996.  As a result, only natural gas, electricity and urban transport
remained subject to price control.  Prices for all other goods and services were determined freely by
the market.
26. The representative of Georgia stated that in the application of price cont rols or State guidance
now or in the future, Georgia would apply such m easures in a WTO-consistent fashion, and take account
of the interests of exporting WTO members as provided for in Article III:9 of the GATT 1994.  Georgia
would publish information on any State controls on g oods or services that may be introduced or re-
introduced in the future in its Official Journal, in cluding any changes in current controls.  The Working
Party took note of this commitment.
Competition Policy
27. The representative of Georgia said that the first steps to implement an anti-monopoly policy
in Georgia had been taken in September 1992, when the State Council had adopted a Decree "On the
Restriction of Monopoly Activities and the Devel opment of Competition in Georgia" and an Anti-
monopoly Policy Department had been established within the Ministry of Economy.  Parliament had
adopted a more comprehensive Law on Monopolistic Activity and Competition in June 1996.  An
independent regulatory commission had been established to regulate prices in energy distribution, and
a similar commission was under consideration in the telecommunications sector.
28. Georgia had established the legislative basis for competitive markets, in particular by
deregulating prices and rescinding exclusive rights previously granted to certain economic agents, and
through the abolition of restrictions on competition in certain activities.  The new Anti-monopoly Law
required the establishment of a State register of natural monopolies.  According to this register,WT/ACC/GEO/31
Page 7
natural monopolies existed in the provision of postal services, distribution of frequency spectrum,
railway transport, pipe line services (the State Company "Sakgazi"), high-voltage power transmission
(the State Company "Sakenergo"), air traffic control and dispatcher services (the State Company
"Sakaeronavigatsia"), and in port services (the sea ports of Poti, Batumi and Sukhumi).  Information
on privatization of such monopolies is provided in paragraphs 20 and 22.
FRAMEWORK FOR MAKING AND ENFORCING POLICIESPowers of Executive, Legislative and Judicial Branches of Government
29. The representative of Georgia said that the activities of executive, legislative and judicial
authorities were regulated by the Constitution of Georgia, the Law on the Constitutional Court ofGeorgia of 31 January 1996, the Law on Constitutional Jurisprudence of 21 March 1996, the Law on
the Structure of Executive Power and Rule of its Activities of 15 April 1997, and the organic Law on
General Courts.
30. The President of Georgia, the State Chancellery, ministries and other governmental
institutions exercised executive powers.  As head of State, the President of Georgia conducted and
carried out the internal and external policies of the State, and ensured the functioning of governmental
authorities in accordance with the Constitution.  The President exercised executive power himself as
well as through ministries and other governmental authorities and institutions.  The State Chancellery
was headed by the State Minister.  The Government was a consultative body of the President ofGeorgia, and consisted of the State Minister and 21 Ministers.  Each Minister was accountable before
the President for his area of responsibility.  The main ministries involved in the formulation and
implementation of trade policy were the Ministries of Economy, Foreign Affairs, Trade and Foreign
Economic Relations, and Finance.  The President had created coordination bodies and advisory and
consultative institutions to regulate relations among the entities of executive power.
31. Parliament was the highest representative body of the State according to Article 48 of the
Constitution.  It exercised legislative power and general control over the Government in the areas
defined by the Constitution, and determined the main directions of domestic and foreign policy.  The
President submitted the structure of executive power and rules of its activities to Parliament for
approval.  Parliament meetings were public.  The representative of Georgia stated that international
treaties and agreements ratified by Parliament, including the WTO Agreement, had precedence overdomestic laws and other acts in Georgia other than the Constitution and constitutional law.  The
hierarchy of laws in Georgia is provided in paragraph 37.
32. Georgia's court system exercised judicial power independent of the other branches of
Government in accordance with the Constitution of Georgia of 24 August 1995, the Law on theConstitutional Court of 31 January 1996, and the Law on Constitutional Jurisprudence of
21 March 1996.  The Constitutional Court ensured the primacy of the Georgian Constitution,
constitutional legacy, and the protection of human constitutional rights and freedom.  The Supreme
Court of Georgia supervised the implementation of justice in courts and considered cases determined
by law by first instance.  The Supreme Courts of the Abkhazian and Ajarian Autonomous Republicswere the highest judicial bodies in these autonomous  regions.  The City Court of Tbilisi considered
cases by first instance within the limits of its powers and supervised the activities of regional courts of
Tbilisi.  Regional (town) courts considered all cases of civil or criminal law or administrative
infringements except cases under the jurisdiction of another court.  The Procurator’s Office
implemented criminal legal prosecution and supervised enquiries and sentences.  Georgia's arbitrationcourt system had been abolished with the entry into force of the current Constitution of Georgia.
Decisions or actions of customs bodies and their offi cials could be appealed in the courts of Georgia.
The right of appeal in customs valuation matters would be regulated by the new legislative act on
customs valuation.WT/ACC/GEO/31
Page 8
33. Noting that the right of appeal of administrative decisions to an independent body was a
critical component of the rule of law embodied in WTO provisions, a member requested Georgia to
describe in detail the process of appeal to the judiciary for traders contesting administrative rulings by
executive agencies such as in the area of customs valuation, classification and duty, taxation ofimports, standards and sanitary certification and inspection, application for import or export licences,
measures taken against dumping and subsidized imports, and intellectual property protection.
34. The representative of Georgia replied that persons engaged in commercial activities could
contest decisions by applying to the Court of First Instance in accordance with Article 11 of the Civil
Procedure Code.  The jurisdiction of the court extended to "cases arising out of public law,
administrative law, tax and other relations."  The Decisions of the Court of First Instance could beappealed to appellate courts.  In addition to rights of appeal mentioned in specific laws and
regulations, Article 4 of the draft Code of Administrative Court Procedures provided a general right of
appeal of administrative decisions in that the legality of any normative act, individual administrative
action or inaction, contract of an administrative agency or obligation of compensation was an
"administrative dispute" that could be appealed to specialized administrative chambers of the regionalor city courts.  Parliamentary approval of th e new Code, however, had been delayed to the 2000
session.
35. The representative of Georgia confirmed that from the date of accession Georgia’s laws
would provide for the right to appeal administrative rulings on matters subject to WTO provisions toan independent tribunal in conformity with WTO obligations, including but not limited to
Article X:3(b) of the GATT 1994.  The Wo rking Party took note of this commitment.
36. Parliament was responsible for ratification of international treaties, while the President of
Georgia and the other executive authorities were responsible for implementation.  Parliament adopteda resolution on accession to an international treaty by simple majority of its entire composition.
Ratification by Parliament was required to complete the national procedures relating to WTO
accession.  The Ministry of Trade and Foreign Economic Relations had prepared a Presidential
Decree on Managing the WTO Relationship which addressed the responsibilities of various
government institutions in fulfilling Georgia's obligations vis-à-vis the WTO.
37. The hierarchy of normative acts in force in Georgia comprised:  (i) the Constitution of
Georgia and the Constitutional Law of Georgia;  (ii) international treaties and agreements ratified by
Georgia;  (iii) the Organic Law of Georgia;  (iv) Laws and Presidential Decrees;  (v) Orders of the
President of Georgia;  (vi) Resolutions of the Parliament of Georgia;  and (vii) Orders of a Minister or
head of another central governmental authority of executive power.  International agreements had
direct applicability in the national legal system in accordance with Article 6 of the Constitution andArticle 20 of the Law "on Normative Acts".  Laws, regulations and administrative orders could be
applied retroactively, but normative acts establishing or approving responsibilities could not be
applied retroactively.
Authority of Sub-Central Governments
38. The representative of Georgia said that the principles of coordination between the executive,
legislative and judicial authorities were determined by the organic Law of Georgia on Local
Governance and Self-Governance of 16 October 1997 and the Law on the Structure of Executive
Power and Rule of its Activities of 15 April 1997.  The Service of local administration and regionalpolicy, responsible for implementing State policy in the area of local administration, had been
established by Presidential Decree No. 105 of 14 February 1997.WT/ACC/GEO/31
Page 9
39. Local representative organs could levy local taxes and fees according to the Law of Georgia
on Local Governance and Self-Governance of 16 October 1997.  He added that in accordance with
Article 3 of the Constitution, Georgia's supreme na tional bodies had exclusive power to administer
important trade-related areas, including customs and tariff regimes; foreign trade;  standards and
measurements, and sanitary measures at the border;  State finances and loans, minting of money andlegislation on banking, credit, insurance and taxes;  legislation on intellectual property;  and
legislation on trade, criminal law, civil law, and administrative and labour law.  He confirmed that
sub-central entities within territory controlled by the Georgian Central Government had no
autonomous authority over issues of subsidies, taxation, trade policy or any other measures covered
by WTO provisions.  The autonomous region of Abkhazia was included in the customs territory of
Georgia, but due to the existing political situation there this region was not de facto  under the
jurisdiction of the Central Government at present, and the local authorities did not apply the national
customs tariff and other taxes.  Negotiations aimed at enforcement of national legislation in Abkhazia
and the former South Ossetian Autonomous Region were ongoing.  There were no regions other than
Abkhazia and Ossetia in which the Government an ticipated any difficulty in enforcing laws and
customs procedures in accordance with WTO requirements.
40. The representative of Georgia confirmed that Georgia would apply the WTO provisions,
including Georgia’s Protocol of Accession, uniformly throughout the entire customs territory
controlled by the Georgian Central Government, including in regions engaging in border trade or
frontier traffic, special economic zones, and other areas where special regimes for tariffs, taxes and
regulations are established.   He further confirmed that, upon accession to the WTO, Georgian CentralAuthorities would ensure that the laws, regulations and other measures of government entities at the
sub-national level would conform to the obligations  undertaken in Georgia' s Protocol of Accession
and the WTO Agreement, and would enforce them at the sub-national level in all areas controlled by
the Central Government.  He added that when apprised of a situation where WTO provisions were not
being applied or were applied in a non-uniform manne r, central authorities would act to enforce WTO
provisions without requiring affected parties to petition through the courts.  The Working Party took
note of these commitments.
POLICIES AFFECTING TRADE IN GOODSTrading Rights
41. The representative of Georgia said that all natural and legal persons, foreign or domestic,
could engage in importation and exportation activities provided they were registered with the
Taxation Department of the Ministry of Finance a nd with the State Department for Statistics.  The
Law on Business Licensing had been enacted on 14 May 1999.  The Law authorized licenses in the
following areas (with the responsible agency):  (i ) Insurance activities and mediation in insurance
business (State Agency for Insurance Control);  (i i) Banking activity, activity of currency exchange
shops (National Bank);  (iii) Production and repair of weapons and other military products and their
sale (Ministry of Justice, within limits set by the National Security Council of Georgia);  (iv) Air
shipping, marine shipping and towing (Ministry of Transport);  (v) Securities industry, i.e. the
activities of broker companies, brokers' activities, activities of stock exchanges, activity of the central
depositary of securities, activity of securities registering clerks (Ministry of Finance);  (vi) Lotteries
and other profitable games (Ministry of Finance);  (vii) Production and sale of pharmaceutical
products, substances subject to special control, and medical products used in veterinary activity;
activity of medical organizations (Ministry of Health);  (viii) Activity of diagnostic centers in charge
of technical assessment of motor transport means (Interior Ministry);  (ix) Design and constructionactivity (Ministry of Urbanization and Construction);  (x) Activities of audit firms (Auditing Council
of the Parliament);  (xi) Activities of private educational institutions (Ministry of Education); and (xii)
Metrology and Measurement activities and repair services (State Department for Standardization,
Metrology and Certification).WT/ACC/GEO/31
Page 10
42. According to Article 1, the Law did not apply to:  (i) the activities subject to Article 1.2 of the
Georgian Law on Entrepreneurs;  (ii) export or import of goods or services;  (iii) activities connected
with environment protection or use of natural resources, electricity or natural gas, or
telecommunications and postal services, which were regulated by special laws;  and (iv) production offood, including baby food, and tobacco products.  Article 1.2 of the Law on Entrepreneurs stated that
"Artistic, scientific, medical, architectural, advocating and notary, auditing, agricultural or forestry
related activities performed by natural persons shall not be considered as Entrepreneurial activity,"
and such activities were thus not subject to the Business Licensing Law.   For the spheres which it
regulated, the Law provided detailed procedures which the responsible agencies were obliged to
follow in issuing any required licenses.  These procedures were limitations on the authority of
ministries to restrict or deny licenses, and were de signed to protect businesses from arbitrary decisions
of ministries.
43. The representative of Georgia confirmed that the former State monopoly in foreign trade had
been abolished and that no restrictions existed on the right of individuals and enterprises to import and
export goods into Georgia's customs territory, except as provided in WTO Agreements.  He confirmedthat individuals and firms were not restricted in their ability to import or export based on their
registered scope of business and the criteria for registration were generally applicable and published
in the official journal.
44. The representative of Georgia confirmed that from the date of accession Georgia would
ensure that all its laws and regulations relating to the right to trade in goods, and all fees, charges or
taxes levied on such rights would be in full conformity with its WTO obligations, including
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws
and regulations in full conformity with these obligations.  The Working Party took note of this
commitment.
A. IMPORT REGULATIONOrdinary customs duties
45. The representative of Georgia said that customs duties were established according to the Law
No. 1316-IIs "on Customs Tariff and Duty" of 20 March 1998.  Section III of the new Customs Code
of 14 November 1997 also contained provisions regarding customs duties.  Article 6 of the Law "on
Customs Tariff and Duty" authorized the use of special tariffs and seasonal tariffs – for periods not
exceeding six months in a year – to regulate trade in goods with particular variations in production or
consumption.  He added that that although the legal authority to apply seasonal rates existed, Georgia
had so far never used seasonal rates in practice .
46. Georgia was using the 1996 version of th e Harmonized System nomenclature as of
1 January 1998 in accordance with Decree No. 249 of 24 December 1997 of the Chairman of the
Customs Department of Georgia.  Tariff revenue amounted to 58.7 million Lari, collected on imports
worth some 1.2 billion Lari (US$930 million) in 1997, and 58.1 million Lari on imports worth
US$1,048.6 million in 1998.
47. Customs tariffs were levied at the rate of zero, 5 per cent or 12 per cent.  All customs duties
were ad valorem  rates.  Most imports were subject to the 12 per cent rate, while the 5 per cent rate
was applied to imported pharmaceuticals;  capital goods, including spare parts and supplementaryequipment;  and specific goods used in product ion (listed in document WT/ACC/GEO/3, page 24).
The average trade-weighted tariff amounted to 4.9 per cent in 1997.  This average had declined as
substantial imports were allowed in duty free as a result of free-trade agreements and free imports ofWT/ACC/GEO/31
Page 11
donor-provided goods.  The trade-weighted tariff for 1998, excluding goods entering duty-free, was
10.3 per cent.
Other duties and charges levied on imports but not on domestic production
48. The representative of Georgia confirmed that Georgia levied no duties and charges on imports
other than ordinary customs duties and fees and charges for services rendered.  Any such charges
applied to imports after accession would be in accordance with WTO provisions.  He further
confirmed that Georgia would not list any other charges in its Goods Market Accession Schedule
under Article II:1(b) of the GATT 1994, binding such charges at "zero".
Tariff rate quotas, tariff exemptions
49. The representative of Georgia said that tariff exemptions were authorized in accordance with
the Law "on Customs Tariff and Duty" of 20 March 1998 (Article 18) for: (i) goods for export;
(ii) re-exports (against payment of customs duty, subsequently refunded, or deposition of a bank
guarantee or imported goods of equal value with the Georgian Customs Department;  the conditionsare described in further detail in paragraph 88);  (iii) goods in transit;  (iv) imported goods placed in
customs warehouses (dutiable upon withdrawal from the warehouse or under the terms of other
customs regimes);  (v) goods imported in relief due to natural disasters, accidents and catastrophes, or
as humanitarian aid;  (vi) goods financed by grants or concessional credits of a foreign governmental
body or international organization, including a grant element of at least 25 per cent (defined by theMinistry of Finance);  (vii) goods designated for official and personal use by foreign diplomatic and
similar missions and their staff, and property imported from Georgia's diplomatic missions;  (viii)
goods imported temporarily into the territory of Georgia;  (ix) imported raw materials and semi-
finished products designated for the production of exported products, including packaging materials;
(x) goods brought by natural persons to the value of up to 300 Lari, per entry, in accordance with a listdefined by Resolution of the Parliament of Georgia No. 273-II of 13 June 1996; (xi) imports of baby
food and baby hygiene products as well as diabetic products;  (xii) imports of Georgian classical
literature and literary, artistic or scientific works of Georgian citizens published abroad; (xiii)
imported pharmaceutical products (16 products in accordance with a list approved by the Ministry of
Finance, the Ministry of Health and the Ministry  of Food and Agriculture, enumerated in document
WT/ACC/GEO/4, page 20);  and (xiv) aviation fuel, lubricants and other consumables in accordance
with international aviation regulations.
50. The representative of Georgia confirmed that tariff exemptions, except those applied in the
context of a customs union or free trade agreement, were applied on an MFN basis.  Parliament could
accord preferences under the Generalized System of Preferences, but this scheme had not yet been
implemented.
Fees and charges for services rendered
51. The representative of Georgia said that a customs clearance fee equal to 0.3 per cent of the
customs value was applied to import and export (other than temporary imports and exports) of allkinds of goods.  There were no exceptions to this fee.  Some members pointed out that this ad
valorem  fee, although modest, did not conform to the requirements of GATT Article VIII.  In reply,
the representative of Georgia said that Georgia had revised its legislation in this area so as to comply
with GATT Article VIII.  Under amendments to the Law of Georgia on Customs Fees, enacted
28 May 1999, the customs clearance fee had been reduced from 0.3 per cent ad valorem  to 0.2 per
cent ad valorem  effective 1 June 1999, and would be further reduced to 0.15 per cent  ad valorem,
with a minimum charge of GEL 50 and a maximu m charge of GEL 2,000 effective 1 January 2000.
With these changes, Georgia believed this fee to be consistent with GATT Article VIII.  The charge
was roughly proportional to the cost of the service rendered because larger transactions involved moreWT/ACC/GEO/31
Page 12
effort than smaller transactions.  At the same time, the cap on the fee ensured that large transactions
would not pay significantly more than the cost of the service rendered.  The level of the fee had been
set so as to recover only about half of the estimated direct and related indirect costs of providing
customs inspection and clearance services.  Approximately fifty percent of the time of Customs
employees was spent processing imports and exports, thus half of the total direct and indirect costs ofoperating the Customs Department should be reco verable through the fee.  According to the most
reliable estimate, the fee stipulated in the new amendments would produce revenues of about
US$746,000 annually, or less than 23 per cent of the total cost of operating the Customs Department,
estimated at US$3.3 million in 1998.
52. Transit cargoes were charged clearance fees of 100-300 Lari, depending on mode of transport.
Temporary imports were charged 10 Lari per ton up to  ten tons, and 3 Lari per ton above that amount.
Fees for veterinary border services were established in accordance with Article 37 of the Veterinary
Law.  Fees ranged from 70-120 Lari per consignment for imported goods, 60-110 Lari for goods in
transit and 75-125 Lari for exported goods.  The veterinary service could charge additional fees
according to established price lists, for example on animal cargoes on suspicion of disease or for
violation of transportation rules.  A charge for quarantine services was imposed on cargo held inquarantine, including fumigation and storage.
53. The representative of Georgia confirmed that the fees described in paragraphs 51 and 52 were
the only fees for services related to imports and exports, and that, from 1 January 2000 and from the
date of accession, Georgia would apply the customs declaration fee as described in paragraph 51, andwould impose any fees or charges for services rendered related to importation or exportation only in
conformity with Article VIII of the GATT 1994.  Information regarding the application and level of
any such fees, revenues collected and their use, would be provided to WTO Members upon request.
The Working Party took note of these commitments.
Application of internal taxes to imports
54. The representative of Georgia said that caviar, alcoholic beverages, mineral water, tobacco
and tobacco products, petrol, tyres, jewellery and motor vehicles were subject to excise tax in
Georgia.  Article 130 of the Tax Code stipulated the same tax rate for imported and domesticproducts.  Excise taxes were applied at the border to imported goods at the moment of importation,
and at the place of production (within 90 days of delivery or reimbursement) for domestic goods.Concerning the taxation of motor vehicles, he added that Georgia also charged owners of motor
vehicles an annual tax to the benefit of the road fund, and motor vehicles were subject to a tax upon
entry (including transit) into the territory of Georgia.  Imported motor vehicles resold in Georgia were
not subject to additional excise tax.  The difference in taxation of petrol was maintained for ecological
reasons.
55. Some members noted that excise taxes on alcoholic beverages differed widely, and asked
Georgia to explain the rationale for this tax structure, and identify the kind of wines and spirits
produced domestically.  Georgia was requested to implement an excise tax regime that would meet
the criteria of Article III of the GATT, conforming to the principles outlined in recent disputesettlement panels clarifying the scope of national treatment obligations in the application of excise
taxes.  The representative of Georgia replied that dry, semi dry and semi sweet grape wines accounted
for 80 per cent of Georgia's production of alcoholic beverages, with sparkling wines (9 per cent),
brandy (3 per cent), liqueur-vodka (6 per cent) and ethyl spirits (2 per cent) constituting the
remainder.  His Government recognized that certain aspects of its treatment of alcoholic beverageswere not fully consistent with WTO rules.  The system of customs duties, excise tax and VAT
applicable to imported alcoholic beverages had accordingly been reviewed during 1998, and more
recently, new amendments to the excise rates had been enacted on 25 June 1999.  Effective
1 January 1999, the special rules applied to imported alcoholic beverages had been revoked, thus theWT/ACC/GEO/31
Page 13
same excise rates applied to imported and domestic products.  In addition, the recent amendments had
established uniform excise rates within the classifications of sparkling wines, fortified wines, natural
wines, most spirits, and beer, reflecting the requ irements of recent WTO decisions concerning excise
taxation of alcoholic beverages.  The applicable excise tax rates under the recent amendments are
provided in Table 2.  Georgia had introduced excise stamps for wine and spirits effective20 March 1999, and for cigarettes effective 1 April 1999.  Detailed regulations governing the
administration of the excise stamps had been elaborated.
56. Some members also noted the differentiation in taxation pertaining to tobacco and tobacco
products.  The representative of Georgia replied that his Government understood that the present
system was not fully consistent with WTO rules.  The taxation of imported tobacco products had
recently been reviewed in order to bring the taxe s into full compliance with WTO requirements.  The
differential rates on domestic and imported tobacco products would be unified by the date of
accession.
57. The representative of Georgia confirmed that, by the date of accession, all excise taxes would
be applied uniformly to imported and domestic products, including cigarettes and other tobaccoproducts, and would otherwise conform in all respects  to the requirements of Article III of the GATT
1994.  In particular, the excise tax on vodka would be increased to conform to Article III requirements
as interpreted in recent dispute resolution cases.  The Working Party took note of these commitments.
58. The representative of Georgia said that the Law on Value Added Tax, one of the constituent
parts of Georgia's Tax Code, had been adopted by Parliament and entered into force on
1 September 1997.  Value added tax was levied at a general rate of 20 per cent.  VAT was applied to
the wholesale price plus excises for domestic products, and the customs value, including import duty
and excises, for imports.  Exempt from VAT (Article 101 of the Tax Code as recently amended) were
postage stamps (except for collection);  Georgian and foreign currency (except for numismaticpurposes) and securities;  valuables confiscated or with no known owner, and valuables inherited by
the State;  gold to be transferred to the National  Bank of Georgia;  imported books and journals on
science, art and fiction written by Georgian citizens;  school books approved by the Ministry of
Education in agreement with the Ministry of Finance;  goods given to State bodies of Georgia as
humanitarian assistance or charity, or in relief of natural disasters, accidents, and catastrophes;  goods
provided as grants, approved according to a procedure specified by Presidential Decree;  goods
provided in the form of grants or concessional lo ans (minimum 25 per cent grant element) by bilateral
or multilateral international organizations;  medicines falling within HS Chapter 30 (an exact
enumeration of exempted products is contained in document WT/ACC/GEO/4 pages 41-81);  medical
technology (HS codes 90.18-90.22);  baby food;  fixed assets and spare parts (HS Chapters 84, 85 and
90);  goods in transit and temporary imports;  re-imported goods;  imports for official or personal use
of staff of diplomatic and similar representative offices to the extent required by relevant internationalagreements;  private imports of goods valued at less than the threshold amount for imposition of
customs duty;  goods processed abroad by the exporter of the raw materials;  raw materials guaranteed
by collateral for the purpose of processing and exportation;  and goods intended for re-export,
guaranteed by collateral.
59. Some members considered the VAT exemption for works of Georgian authors and Georgian
classical literature published abroad to be inconsistent with Article III of the GATT.  The
representative of Georgia replied that, in the view of his Government, the exemption for imports of
works produced abroad by Georgian authors did not violate Article III because, as an exemption for
imported products, it could not disadvantage imports in relation to domestic products.  It was not inviolation of Article I because it applied equally to imports from all nations.  The representative of
Georgia stated further that the Tax Code had been amended recently to extend the VAT exemption for
certain domestic publications equally to similar imported publications.  Georgia believed that these
amendments had brought this part of the Tax Code fully into compliance with GATT requirements.WT/ACC/GEO/31
Page 14
60. Concerning the taxation base for the imposition of excises and VAT, a member noted a
provision in the tax code that the taxable transaction be the customs value of the goods, but not less
than the "wholesale market price, excluding the ex cise and VAT" (Article 125(2)).  In reply, the
representative of Georgia noted that excise taxes on tobacco and alcoholic products were specificrather than ad valorem  rates.  He confirmed that the phrase "but not less than the wholesale market
price" in the tax code had become obsolete with the implementation of new customs valuation
regulations; its purpose had been to deal with situations in which the invoice value of imports was not
a fair representation of the transaction value.  It  was expected to be deleted in the next general
revision of the tax code; thus the basis for ad valorem  excise taxes on imported goods was the
customs value, determined in accordance with th e Customs Valuation Agreement, plus the applicable
tariff and other duties.
61. The representative of Georgia said that Georgia applied the destination principle in VAT
taxation as from 1 September 1997.  The VAT rate was accordingly identical for locally produced and
imported products, including imported goods originating in other CIS countries (Article 100).
62. The representative of Georgia confirmed that, from the date of accession, Georgia would not
use minimum values, including domestic wholesale prices or any other domestic prices, for the
application of its domestic taxes to imports, and would apply its domestic taxes, including those on
products listed in paragraphs 54 to 61 and Table 2, in strict compliance with Article III of the
GATT 1994.  The Working Party took note of this commitment.
Quantitative import restrictions, including prohibitions, quotas and licensing systems
63. The representative of Georgia said that licences were required for importation of certain
agricultural chemicals, wild animals and plants, medicines, arms, explosives, nuclear materials,industrial waste, and tobacco products (Table 3).  The licensing system was maintained to protect
public health, safety and the environment, and was not intended to restrict the quantity or value of
imports.  He confirmed that imports from CIS and non-CIS countries were subject to equal treatment.
The representative of Georgia confirmed that Georgia had no licensing requirements or quantitative
restriction of any kind on imports other than those listed in Table 3.
64. Import licences were obtained from the Ministry of Trade and Foreign Economic Relations or
the Ministry of Health Protection, with the consen t of the relevant ministry or department.  Any
person, firm or organization could apply for an import licence.  The decision to grant a licence was
required to be taken within 5 working days from the date of registration of the application.  A licence
was valid for the period fixed in the import contract, but not for more than one calendar year.  The
validity could be extended upon request.  A licence could not be transferred to another importer.Asked to describe briefly the licence requirements for importation, production and sale of tobacco
products, he referred to Presidential Decree No. 391 "On Activities Addressing Regulation of
Production, Import, Wholesale and Retail Trade in Tobacco Products in Georgia", but noted that this
decree had not been implemented and that, in practice, such licenses were not required.  The
representative of Georgia confirmed that should the requirements of this Decree on the manufacture,sale and importation of tobacco products be implemented, all provisions would be applied equally to
domestic and imported goods in accordance with the provisions of Article III of the GATT.
65. The representative of Georgia confirmed that, from the date of accession, Georgia would not
introduce, re-introduce or apply quantitative restrictions on imports, or other non-tariff measures suchas licensing, quotas, bans and other restrictions having equivalent effect that could not be justified
under the provisions of the WTO Agreement.  If ba lance-of-payment measures were ever necessary in
the future, Georgia would impose them in a manner consistent with the relevant WTO provisions,WT/ACC/GEO/31
Page 15
including Article XII of the GATT 1994 and the Understanding on Balance-of-Payments Provisions
of the GATT 1994.  The Working Party took note of these commitments.
Customs valuation
66. The representative of Georgia said that instructions on the determination of customs value had
been adopted by Resolution No. 843 of the Cabinet of Ministers of 5 December 1994.  These
instructions provided for six methods of valuation, of which the primary method was based on the
transaction value.  The Ministry of Economy had been responsible for preparing a list of goods
subject to minimum import prices affecting 20 product groups, including alcoholic beverages, wheat
flour, oil margarine, butter, frozen fish, sugar, juices, tomato paste, cigar tobacco and jewellery
products.  However, the minimum import price system had been abolished in March 1998.  Askedspecifically about the use of world average prices in customs valuation, he confirmed that Article 5(6)
of the 1996 Law on Customs Tariff had authorized such measures.  However, the new Law "on
Customs Tariff and Duty", adopted on 20 March 1998, revoked the 1996 law and contained no
reference to world market prices in the valuation rules established in its Article 10.
67. Having reviewed Georgia's customs valuation legislation, a member noted that Georgia had
not implemented in full the Agreement on Implementation of Article VII of the General Agreement
on Tariffs and Trade (the Customs Valuation Agreement).  According to this member, Georgia's laws
and regulations failed to address the following critic al areas:  (i) the provisions for assists/"goods and
services" found in Article 8 and the Interpretative Notes in Annex I to the Customs ValuationAgreement did not appear to be fully implemented;  (ii) the royalty provision and proceeds of
subsequent resale, disposal or use provision of Article 8 of the Customs Valuation Agreement were
merged with the provision for assists/"goods and services";  (iii) the related party provisions in
Article 1 and the Interpretative Notes in Annex I to the Customs Valuation Agreement did not appear
to be fully implemented;  (iv) Georgia did not provide for Article 4 of the Customs ValuationAgreement, allowing only the importer to reverse the order of use of deducted or computed valuation
methods;  (v) Georgia did not include the provision concerning objective and quantifiable data and no
additions other than those provided for to be included in the price actually paid or payable
(Article 8(3) and (4));  (vi) Georgia did not include several prohibited methods of appraisement
required by Article 7 of the Customs Valuation Agreement, as well as the obligation to inform the
importer in writing of the method of appraisement us ed by Customs;  (vii) the obligation to publish
laws, regulations, etc. pursuant to Article 12 did not appear to be implemented;  (viii) theInterpretative Notes in Annex I of the Customs Valuation Agreement did not appear to be fully
implemented in Georgian law;  (ix) Article 15(5) of the Customs Valuation Agreement concerning
sole agent, sole distributor or sole concessionaire had not been implemented;  (x) the Committee on
Customs Valuation Decision 4.1 concerning the "Valuation of Carrier Media Bearing Software for
Data Processing Equipment" had not been implemented;  and (xi) the Committee on CustomsValuation "Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods"
had not been implemented.
68. In reply, the representative of Georgia said that the Law "on Customs Tariff and Duty" (1998)
provided for customs valuation of goods based on internationally recognized practices.  In accordancewith this Law, new regulations had been prepared that were fully consistent with the Customs
Valuation Agreement, including the Interpretative Notes to the WTO Valuation Agreement and the
Decisions on "Valuation of Carrier Media Bearing Software for Data Processing Equipment" and
"Treatment of Interest Charges in the Customs Value of Imported Goods."  The Ministry of Justice
had approved the new regulations on 31 May 1999.  Parliament had enacted an amendment to theLaw on Customs Tariff and Duty, ensuring implementation of Article 13 of the Customs Valuation
Agreement, on 25 June 1999.  He added that within that amendment, the phrase "maximum customs
value" should be interpreted to mean the customs value as determined by the Customs authorities in
accordance with the Customs Valuation Regulations.WT/ACC/GEO/31
Page 16
69. The representative of Georgia confirmed that from the date of accession, Georgia would fully
apply the WTO provisions concerning customs valuation without recourse to a transition period,
including in addition to the Agreement on the Implementation of Article VII of the GATT 1994,
Annex I (Interpretive Notes) and the provisions on the Treatment of Interest Charges in CustomsValue of Imported Goods and for the Valuation of Carrier Media Bearing Software for Data
Processing Equipment (Decision 4.1).  In accordance with these latter provisions, only the cost of the
carrier medium itself would be accounted for in the customs value.  He stated that Georgia would not
use any form of reference price or fixed valuation schedule for the valuation of imports or to apply
duties and taxes.  He confirmed that, before the date of accession, the customs valuation regulations
would be amended in Article 15 to provide that the right of appeal is without penalty, and in
Article 10(1)(a)(iv) to provide that transportation costs are limited to "the cost of transport of theimported goods to the place of importation into Georgia".  He further confirmed that Georgia intends
to annex a copy of the WTO Interpretative Notes to the Customs Valuation Agreement to its
Regulations prior to accession, and will provide a copy of this annex to the Working Party.  The
Working Party took note of these commitments.
Other customs formalities
70. The representative of Georgia said that the Cu stoms Code contained rules of origin.  Georgian
legislation required indication of the country of origin of goods for both imported and domestic
products.  A certificate issued by the competent authority in the country of origin was necessary onlyfor goods imported under preferential trade.  CIS countries applied a uniform C-1 certificate, and had
concluded an agreement on the general rules of determining the country of origin.  Georgia did not
require authentication of import/export documents by its consulates overseas.
71. Detailed rules of origin had been laid down in the Decree "On Customs Tariff" of
21 October 1992.  Origin criteria were based on the principles of wholly obtained or sufficient
processing in another country.  The wholly obtained criterion would typically be applied to minerals;
plant products;  livestock and livestock products;  products of hunting, fishery and sea fishery;  and
secondary raw materials and wastes obtained from manufacturing and other operations.  Sufficient
processing was defined in terms of change of tariff position, the technology employed in the
processing, or defined in accordance with established cost ratios.  Mere storage and packaging,
preparation, sorting, repackaging, simple assembly operations or mixing of goods (components)would not be considered sufficient processing.
72. The representative of Georgia said that the new Law "on Customs Tariff and Duty", adopted
by Parliament on 20 March 1998, stipulated that Georgia's rules of origin should be based on
international experience.  Accordingly, new regulati ons on rules of origin had been prepared which
were fully consistent with the Agreement on Rules of Origin.  The Ministry of Justice had approved
the new regulations on 31 May 1999.  The new rules of origin regulations provided for acceptance of
a certificate of origin from all countries.  By contract, Georgia would require that any PSI company
engaged by Georgia would be required to observe the provisions of the WTO Agreement on Rules of
Origin.
73. The representative of Georgia confirmed that from the date of accession its laws and
regulations on rules of origin would be in conformity with the provisions of the Agreement.  In this
regard, the requirements of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential
and preferential rules of origin, respectively, its customs authority or preshipment inspection authorityacting on its behalf will provide upon request an assessment of the origin of the import and outline the
terms under which it will be provided.  The Working Party took note of this commitment.WT/ACC/GEO/31
Page 17
Preshipment inspection
74. The representative of Georgia said that Georgia had thus far not used preshipment inspection
services and had no legal regulation on preshipment inspection.  However, having examined proposals
to improve customs collection in Georgia, his Government had decided to impose a preshipmentinspection requirement on exporters.  A tender to select a contractor had been issued in early 1999,
and a contract was being negotiated as of July 1999.  The contract was expected to run for at least two
and a half years, and could be extended if deemed necessary by the Government.
75. Georgia had selected a pre-shipment inspection firm, and a contract had been signed.  The
negotiations on the final contract terms were expected to result in amendments to the Customs Code
and implementing regulations.  His Government expected that use of a pre-shipment inspection firmwould improve customs collections primarily by reducing the incidence of under-valuation of imports.
In addition to verifying the price of imports, the PSI  firm would also be expected to verify quantity
and quality in some cases, and indicate the proper customs classification.  The PSI firm would be
subject, by contract, to Georgian law in all of these matters.  The decisions of the PSI firm would be
advisory to the Customs Department, which would make the final decisions in all cases, includingvaluation.  The decisions of the Customs Department  were subject to judicial appeal.  In order to
protect confidentiality of business information, the recommendations of the PSI firm would not be
published.  Subsequent Customs Department decisions  would, however, be published as provided for
in Article X of the GATT.  The fee structure of the contract involved a 1.19 per cent ad valorem
charge, based on the FOB value of the goods, to the exporter.
76. The representative of Georgia confirmed that his Government would ensure that the
operations of preshipment inspection entities would be consistent with the relevant WTO Agreements,
in particular GATT Article VIII, the Agreement on Preshipment Inspection, the Recommendations of
the Working Party on Pre-Shipment Inspection of 2 December 1997 and any subsequentrecommendations issued by that Working Party, th e Agreement on the Implementation of Article VII
(the Customs Valuation Agreement), and the Agre ements on Import Licensing Procedures, Rules of
Origin, Implementation of Article VI (Antidum ping), Subsidies and Countervailing Measures,
Safeguards, and Agriculture.  Georgia would ensure that any private firm performing customs duties
covered by WTO rules would publish their practices and procedures as required by GATT Article X,
that rulings by the firm would be advisory only to the State Department of Customs and would be
appealable to the judiciary, that any rulings of general applicability would be made available to WTOmembers and to importers and exporters upon request, and that Georgia would, upon request of WTO
members, meet to discuss the activities of such firms and their impact on trade with a view to
resolving problems.  He recognized that the fee structure in the PSI contract was not fully consistent
with GATT Article VIII.  The Government would bring the fee structure into full compliance within
two years.  In any renewal of the PSI contract or any new contract, the fee structure would be fullyconsistent with WTO provisions, in particular Article VIII of the GATT.  The Working Party took
note of this commitment.
Anti-dumping, countervailing duties, safeguard regimes
77. The representative of Georgia said that Articles 10-13 of the Decree of the Council of State
"On Customs Tariff" of 21 October, 1992, contained provisions on the imposition of anti-dumping
and countervailing duties.  He added that the 1992 decree had been replaced with the Law on Customs
Tariff and Duty of 20 March 1998, which provided the legal basis, in principle, for the imposition of
anti-dumping, countervailing or safeguard measures.  However, this legislation had never been used.
78. The representative of Georgia confirmed that Georgia would not apply any anti-dumping,
countervailing or safeguard measure until it had notified and implemented appropriate laws in
conformity with the provisions of the WTO Agreements on the Implementation of Article VI, onWT/ACC/GEO/31
Page 18
Subsidies and Countervailing Measures, and on Safeguards.  In the elaboration of any legislation
concerning such anti-dumping, countervailing and safeguard measures Georgia would ensure their
full conformity with the relevant WTO provisions, including Article VI and XIX of the GATT 1994
and the Agreements on the Implementation of Article VI, the Agreement on Subsidies and
Countervailing Measures and the Agreement on Safeguards.  After such legislation was implemented,Georgia would only apply any anti-dumping duties, countervailing duties and safeguard measures in
full conformity with the relevant WTO provisions.  The Working Party took note of these
commitments.
B. EXPORT REGULATIONSCustoms tariffs, fees and charges for services rendered, application of internal taxes to exports
79. The representative of Georgia said that all exporting legal and natural persons were required
to register with the State Department for Statistics.  The general State register was decentralized, i.e.
the entrepreneur was included in the register of any regional statistical office after registration at the
local court.  The State register maintained no restrictions on registration.
80. Georgia did not apply customs duties on exports, except as indicated in paragraph 81.
Exported or re-exported goods were exempt from cu stoms duties.  As of 1 September 1997, when the
new Tax Code had entered into force, Georgia imposed VAT according to the destination principle
and all exports, including to CIS countries, were zero rated.  The regional customs offices performedcustoms clearance on all export cargoes.
81. Effective 1 July 1998, exports of scrap metal had become subject to special duty in
accordance with the Law on Regulation of Export and Re-export of Scrap and Waste of Black and
Coloured Metals.  The special duty had been set at 475 Lari per ton for copper, 320 Lari per ton ofaluminium, and 28 Lari per ton of other metal scrap.  However, Parliament had passed an amendment,
eliminating the special duty, on 25 June 1999.
82. The representative of Georgia confirmed that after accession to the WTO, Georgia intended to
minimize the use of export taxes and any such taxes applied would be in accordance with the
provisions of the WTO Agreement and published in the Official Journal.  Changes in the application
of such measures, their level, scope, or justification, would also be published in the Official Journal.The Working Party took note of these commitments.
Export restrictions
83. The representative of Georgia said that Georgia maintained some export prohibitions or
restrictions to protect public health, consumer welfare, the environment, the national patrimony and
national security.  The prohibitions or restrictions were applied equally to exports to all countries.
Exports of arms and gunpowder, artwork and antiques of cultural value, as determined by a special
commission within the Ministry of Culture, were prohibited.  The items subject to export prohibition
or licensing are enumerated in Table 4.  Exports of timber were licensed to ensure the ecologicalbalance in Georgia's forests and optimal use of forestry resources in accordance with the Law "on
Regulating the Consumption of Forests on the Territory of Georgia" of 25 June 1998.  Exports of
Caucasian Fir seeds were also subject to licensing.
84. Export licences were issued by the Ministry of Trade and Foreign Economic Relations, except
for medicines and medical supplies (Ministry of Health Protection).  Licences were granted within
5 working days from the date of registration of the application.  A licence was valid for the period
stipulated in the export contract;  maximum one year.  The validity of a licence could be extended
upon request.  A licence could not be transferred to another exporter.WT/ACC/GEO/31
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85. Some members noted restrictions on exports of ferrous and non-ferrous scrap metal and
unprocessed timber, and stated that these appeared to violate Article XI of the GATT 1994.  Georgia
was requested to revise the restrictions and bring them into conformity with WTO provisions prior to
accession, or according to a time-table agreed with WTO Members.  In reply, the representative ofGeorgia said that a prohibition on export of scrap metal had been lifted in June 1998, and replaced by
licensing and payment of special duty.  A special licensing fee of 60 Lari per cubic metre of timber,
which had been introduced in March 1998, had also been terminated in June 1998.  Export licences
would be granted for all types of logs cut in co nformity with the requirements of the State Forest
Department, which required information on the forest, farm, region and section where the wood was
to be cut;  quantity, date and type of cutting;  and information on the forest user, all in accordance
with regulations issued by the State Forestry Department.
86. The representative of Georgia confirmed that any remaining export control requirements
would be applied in a manner fully consistent with WTO provisions, including those contained in
Articles XI, XVII, XX and XXI of the GATT 1994.  The Working Party took note of this
commitment.
Export subsidies
87. The representative of Georgia said that Georgia maintained no export subsidies.  Other than
ordinary bank loans at market interest rates, no official or other export financing facilities wereavailable for exporters.
88. Imported raw materials and semi-manufactured goods used in the production of goods for
export were exempt from customs duties under Article 18 of the Law "on Customs Tariff and Duty"
of 20 March 1998, which had superseded the Law on Customs Tariffs of 27 December 1996.Article 18 provided an exemption from customs duties for the "import of raw materials and semi-
finished goods intended for the manufacture of export goods as well as the import of packaging
material to the extent of actually exported finished products.  Upon importing said raw materials,
semi-finished goods and packaging material the pa yment of Customs duty or the retention of a bank
guarantee is effected to the extent of the actually exported finished goods."  The phrase "to the extent
of actually exported finished products" should be interpreted as limiting the drawback to duties paid
on goods incorporated in actually exported finished products.  Imported inputs used in exported goodswere also exempt from VAT.  He confirmed that the amount of duty drawback on exports of finished
goods did not exceed the original duty paid on the imported raw materials and semi-manufactured
inputs.
89. The representative of Georgia stated that from the date of accession Georgia would not
maintain any subsidies, including export subsidie s, which met a definition of a prohibited subsidy
within the meaning of Article 3 of the Agreemen t on Subsidies and Countervailing Measures, and
would not introduce such prohibited subsidies.  The Working Party took note of this commitment.
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODSIndustrial policy, including subsidies
90. The representative of Georgia said that the general objective of Georgia's economic policies
was to create a market economy through privatization of publicly-owned commercial enterprises,deregulation of prices and foreign investment.  State-owned enterprises no longer received subsidized
credits from the banking system or the Government, but some enterprises had covered their losses by
running arrears on payments of taxes, wages and energy supplies.  He identified the 12 largest loss-
making State enterprises to be the Rustavi's "Azoti", the electromechanical factory at Kutaisi,WT/ACC/GEO/31
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Rustavi's "Kimbochko", the joint-stock company "Mau di", the automobile plant at Kutaisi, the Poti
shipyard, "Metsi", "Orioni", the manufacturer of agricultural machinery "Lilo", the joint-stock
company "Metei", the turbine plant of Mtskheta "Tolia", and the paper mill in Tbilisi.  The
Government intended to privatize these enterprises, but their privatization had proved difficult.
91. The representative of Georgia confirmed that Georgia did not maintain any prohibited
subsidies, including export subsidies, within the meaning of Article 3 of the Agreement on Subsidies
and Countervailing Measures.
92. The representative of Georgia confirmed that  upon accession any subsidy programmes would
be administered in conformity with the Agreement on Subsidies and Countervailing Measures.  All
necessary information on such programmes would be notified to the Committee on Subsidies andCountervailing Measures in accordance with Article 25 of the Agreement.  The Working Party took
note of this commitment.
Technical barriers to trade, sanitary and phytosanitary measures
Standards and certification
93. The representative of Georgia said that the Laws "on Standardization" and "on Certification of
Products and Services" constituted the basic legal framework for activities in this area.  A new
standards law, however, had been drafted by European experts to meet the requirements of the TBTAgreement and enacted by Parliament.  The Ministries of Construction and Urbanisation, Protection
of Environment and Natural Resources, Health Protection and other departments ensured product
safety requirements, construction norms and regulations, and sanitary norms and regulations.  The
State Department of Georgia for Standardization, Metrology and Certification ("Sakstandarti") was
the national body of standardization, metrology and certification in Georgia.  "Sakstandarti" operatedcentres working on standardization, metrology and certification in Tbilisi and seven provincial cities,
and State supervision of standard requirements and metrology norms was carried out by
"Sakstandarti" through its local organizations.  "Sakstandarti" was a member of the Interstate Council
of Western Countries for Standardization, Metrology and Certification, and had become a
correspondent member of the International Organization for Standardization (ISO) on 1 January 1998.
94. Although conformity with mandatory intergovernmental (GOST) standards of the CIS
countries was still technically required in Georgia, virtually all imports were allowed entry without
being required to meet these standards.  Georgia was moving rapidly towards reliance on voluntary
standards, based on international standards, in many areas.  The application of mandatory standards to
approximately 121 categories of products (as detailed in Table 5(b)) had been formally terminated by
Government decree on 28 May 1999.  In the remaining areas, existing GOST standards would bereplaced by voluntary standards or technical regulations based on international standards in
accordance with a transition plan and as rapidly as funding allowed.  A plan for the development and
implementation of standards in Georgia (1999- 2002) was provided in document WT/ACC/GEO/28.
95. Georgia required a certificate of conformity issued by "Sakstandarti" and, depending on the
product, a hygiene certificate from the Ministry of Health Protection.  The list of imported products
still technically subject to mandatory certification is provided in Table 5(a).  In practice, however, the
vast majority of imports were not required to meet these standards.  He added that Georgian standards
and certification requirements were not intended to distort trade or establish technical barriers to trade.
Domestically-produced and imported goods, regardless of country of origin, complied with the samerequirements on standards and certification.  "Sakstandarti" had introduced a system of certification
and documentation to eliminate technical obstacles in trade.  Georgia recognized product certificates
from the CIS countries, and was negotiating agreements to recognize certificates from Poland,
Bulgaria, and Romania.  Georgia would agree to recognize certificates of other countries in the nearWT/ACC/GEO/31
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future.  The Ministries of Health Protection and Agriculture and Food were actively involved in the
certification procedure, in particular in testing health, hygiene and veterinary products, and the
certification of bread.  Food safety standards and requirements and labelling requirements were laid
down in the Law "on Protection of Consumers' Rights" (Chapter 1, Article 6).  The Ministry of
Protection of Environment and Natural Resources and the State Inspection for Technical Supervisionwere involved in certification related to environmental protection and safety of technical processes.
Documentation had been harmonized with analogous European documents, and Western countries
had recognized 55 certification bodies and 78 testing laboratories established in educational, research
and other departments with the assistance of "Sakstandarti".
96. Some members noted that Georgia's legislation a nd practices in the area of standards did not
meet the requirements of the Agreement on Technical Barriers to Trade (the TBT Agreement).Georgia was requested to complete a "Statement of Implementation" on technical barriers to trade and
to provide specific information on the move from domestic to international standards;  the provision
of an operational enquiry point;  acceptance of the TBT Code of Good Practice by Georgia;
information on the procedure and terms for issuing certificates of conformity, including fees, required
documentation, sampling, etc.;  the use of manufacturers' certification;  the adoption of a nationalpost-market surveillance system;  and the replacement of mandatory standards with voluntary
standards.  Georgia should outline the specific deficiencies vis-à-vis WTO provisions in this area, and
indicate a schedule for achieving compliance.  A member sought a commitment from Georgia to
abide by the requirements outlined in the Agreement on Technical Barriers to Trade as of the date of
WTO accession, and confirmation that Georgia's certificate of conformity requirements were notrelated to the establishment of additional barriers to trade.
97. The representative of Georgia replied that "Sakstandarti" was working closely with the
Georgian-European Policy and Legal Advice Cent re (GEPLAC) to bring Georgia's standards
legislation in compliance with the TBT Agreement.  A Presidential Decree "On MeasuresImplementing the Requirements of the WTO Agreement on Technical Barriers to Trade" had been
adopted on 5 December 1998.  This Decree contained a detailed action plan and time-frame for
implementation by the relevant authorities.  The new Law on Standards had been approved by
Parliament on 25 June 1999.  The TBT enquiry point had been established under "Sakstandarti" and
notified officially to WTO in July 1999 (document G/TBT/ENQ/15).  Article 14.5 of the new
standards law required the enquiry point to publish in formation on standards, technical regulations and
proposals.  Article 15 required that time be allo wed for comment and that comments received be taken
into account with respect to both technical regulations  and conformity assessment procedures, and that a
reasonable time be allowed for producers to adjust.  Article 13.2 required that conformity assessment
procedures of other countries be accepted as required by Article 6 of the TBT Agreement.  Article 14.4
established that the official publication of standard s, technical regulations and conformity assessment
procedure was in "Sakartvelos Standartebi" (publis hed by the State Departme nt of Standards) and
"Sakartvelos Kanonmdeblobis Matsne" (Georgian Legi slative News).  Both these publications were
available to the public.
98. The representative of Georgia confirmed Georgia’s intent to comply with the provisions of the
TBT Agreement upon accession.  In this regard, it was Georgia’s intention that standards, technicalregulations and conformity assessment procedures would be based on relevant international standards,
where they exist, except where use of different standards, technical regulations and conformity
assessment procedures are justified to the TBT Committee pursuant to Article 2.4 of the
TBT Agreement as necessary to fulfil the legitimate objectives of national security;  prevention of
deceptive practices;  or protection of human health or safety, animal or plant life or health, or theenvironment.  Any such standards, technical regulations and conformity assessment procedures would
be administered so as not to create unnecessary barriers to trade.  Furthermore, Georgia would accept
as equivalent, technical regulations of other Member s, even if those regulations differed from theirWT/ACC/GEO/31
Page 22
own, provided its officials were satisfied that these regulations fulfilled adequately the objectives of
Georgia’s own regulations.
99. The representative of Georgia confirmed that fr om the date of accession, all existing Soviet-
era "GOST" and other regional st andards would be voluntary with respect to products imported from
WTO member countries or from other non-CIS count ries.  GOST and other regional standards would
continue to apply mandatorily only to products produced in Georgia or imported from non-WTO
member CIS states.  These standards would be replaced with international standards, or technical
regulations based on international standards, in accordance with the timetable outlined in
WT/ACC/GEO/28, and be fully replaced by May 2002.  With respect to the items for which
certification remained mandatory in Georgia (Table 5(a)), he further confirmed that imported products
meeting either international, European, or GOST standards would be accepted.  Georgia would acceptconformance assessment certificates issued by internationally recognized authorities of the exporting
countries, or approvals provided by recognized i ndependent conformity assessment bodies or agencies
recognized by "Sakstandarti", with respect to these standards.  Georgia would also reduce further the
number of categories of imported products subject to mandatory certification prior to the end of 1999,
notifying the revised list to the WTO by 1 January 2000, and would complete the process ofconversion to voluntary certification in accordance with the timetable outlined in WT/ACC/GEO/28.
Upon request of WTO members, Georgia would meet to discuss these measures and their impact on
trade with a view to resolving problems.  The Working Party took note of these commitments.
100. The representative of Georgia confirmed that Georgia would comply with all obligations
under the WTO Agreement on Technical Barriers to Trade from the date of accession without
recourse to any transition period.  The Working Party took note of this commitment.
Sanitary and phytosanitary measures
101. The representative of Georgia said that Georgia had revised its quarantine requirements and
adopted new legislation, including the Law "on Pr otection of Plants from Harmful Organisms" of
14 October 1994, the Law "on Agricultural Quaran tine" of 15 May 1997, and a new Veterinary Law
reflecting the standards established by the Office International des Epizooties (OIE).  A Presidential
Decree on SPS Measures had been drafted to meet the requirements of the SPS Agreement, and issued
on 28 July 1999.
102. Concerning relations with relevant international organizations, he said that Georgia had
applied for membership in the joint FAO/WHO Food Standards Programme-Codex Alimentarius
Commission on 17 October 1997.  Georgia also intended to join the International Convention on Plant
Protection and the European and Mediterranean  International Plant Protection Organization.
Georgia's Veterinary Department received information from the Office International desEpizooties (OIE) concerning diseases existing in various countries in the world and assessed the risks
regarding dangerous infectious diseases on the basis of this information.
103. The representative of Georgia stated that Georgia's sanitary and phytosanitary standards were
intended solely for the purpose of protecting the health of human, animal and plant life, and not tocreate technical barriers to trade or to protect domestic producers.  Compliance with Georgia's
regulations was determined by the State Sanitary Service and Department of Hygiene under the
Ministry of Health Protection;  the Sanitary, Qu arantine and Supervision Department of the State
Inspection on Plant Quarantine;  and the Department of Veterinary under the Ministry of Agriculture
and Food, in cooperation with the Border Veterinary, Sanitary and Phytosanitary Service.
104. The State Border Veterinary Supervision Inspection checked all imports of live animals, meat
and fish, animal and fish products, animal fodder and feed supplements and veterinary preparations.
A licence from the State Inspection of Plant Quarantine was required for importation, re-export orWT/ACC/GEO/31
Page 23
transit of goods covered by plant quarantine regulations.  Traded goods covered by quarantine
regulations included agricultural products, timber, seeds and seedlings, plants and plant parts, and
plant products that could carry infectious diseases; hides and unprocessed wool; mushrooms, bacteria,
viruses, nematodes and insects on living cultures; collections of insects, which could bring plant
diseases; herbaria and seed collections; agricultural machinery, aggregates for land development,vehicles, vessels, packaging materials and industrial plants; and soil samples which could carry plant
diseases.  Preshipment inspection, leading to an international veterinary certificate, should be carried
out where appropriate.  Importation of commodities of plant origin and other items subject to
quarantine required a phytosanitary certificate issued by the quarantine service of the exporting
country as well as a certificate on the condition of the commodity delivered by the relevant division of
Georgia's Ministry of Food and Agriculture (Art icle 8 of the Law on Agricultural Quarantine).
Infested or infected shipments which could not be disinfected would be returned to the country oforigin or destroyed with the owner's consent.  The representative of Georgia provided detailed
information on procedures followed in implementing Georgia's sanitary and phytosanitary regime,
requirements for imported animal and plant products, and a list of all quarantine pests in document
WT/ACC/GEO/4, pages 99-110.
105. Some members noted that Georgia's legislation and practices covering SPS measures
appeared not to meet the requirements of the SPS Agreement.  Georgia was asked to provide further
information on ongoing efforts to bring its SPS legislation into conformity with the SPS Agreement,
including additional steps to be taken, a time-frame for implementation, and details on any problems
Georgia might have with implementation of the SPS Agreement upon accession.  A member sought acommitment from Georgia to abide by the requirements outlined in the SPS Agreement as of the date
of accession to the WTO, adding that the establishment of a certification system for imports that did
not present unnecessary barriers to trade prior to accession would be a fundamental factor in
completing Georgia's accession process.
106. The representative of Georgia replied that Georgia was working closely with GEPLAC (the
Georgian-European Policy and Legal Advice Centre) and the Institutional Reform and Informal
Sector (IRIS) to identify the specific aspects of the SPS Agreement not covered by Georgia's existing
regime.  A detailed plan had been prepared on steps to bring Georgia's SPS procedures into
conformity with WTO requirements.  An Interministerial Coordinating Body for SPS
Implementation (ICB) had been formed and Georgia had also established the SPS enquiry point, as
required by the WTO.  The Interministerial Coordinating Body was chaired by the Deputy Minister ofAgriculture responsible for international issues, and included a working-level body with
representation from each agency concerned.  The Presidential Decree on SPS Measures, issued in
July 1999, provided for observance of the requirement s of the SPS Agreement.  Article 2 required the
establishment of the SPS Enquiry Point, which had become operational in August 1998, and notified
officially to WTO in April 1999 (document G/SPS/E NQ/8).  Article 3.1 required SPS measures to be
applied only to the extent necessary to protect huma n, animal, or plant health, and be based on scientific
principles and supported by adequate scientific evid ence.  Article 3.2 required SPS measures to be based
on international standards or else notified to WTO in accordance with Annex B of the SPS Agreement.
Article 3.3 stipulated that they be based on risk  assessments, and Article 3.4 that they would not
discriminate unjustifiably between countries.  Article 4 required the SPS measures of countriesexporting products to Georgia to be accepted as equivalent, even when different from SPS measures
adopted in Georgia, when the exporting country could demonstrate that its SPS measures achieve the
same or a higher level of protection.  Article 5 pr ovided that compliance measures be consistent with
Annex C of the SPS Agreement, and for a right of judicial review of administrative decisions in this
area.
107. The representative of Georgia confirmed that Georgia would comply with all obligations
under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures from the dateWT/ACC/GEO/31
Page 24
of accession without recourse to any transiti on period.  The Working Party took note of this
commitment.
Trade-related investment measures
108. The representative of Georgia stated that Georgia maintained no measures inconsistent with
the Agreement on Trade-Related Investment Measures (TRIMs) at present, and Georgia was ready to
undertake the obligations of the TRIMs Agreement upon accession to the WTO.
109. The representative of Georgia said that Georgia would not maintain any measures inconsistent
with the TRIMs Agreement and would apply the TRIMs Agreement from the date of accession
without recourse to any transitional period.  The Working Party took note of this commitment.
State-trading entities
110. The representative of Georgia said that all public sector monopolies for the supply of goods
and services had been eliminated except as indicated in paragraph 27 above, and there were noparastatal or government-mandated private sector monopolies in Georgia.  Remaining State-owned
enterprises had no access to preferential State funding, and acted purely on the basis of commercial
considerations in a non-discriminatory manner consistent with Article XVII of the GATT 1994.  No
Georgian enterprise carried special or exclusive privileges in the production of any good or service.
At present, Georgia did not operate any State enterprise or agency, or authorize any other firm, topurchase domestic and/or imported agricultural products for export or domestic distribution.
Accordingly, Georgia maintained no State-trading enterprises as defined by GATT Article XVII and
the Understanding on the Interpretation of Article XVII of the GATT 1994.
111. The representative of Georgia confirmed that his Government would apply its laws and
regulations governing the trading activities of State-owned enterprises and other enterprises with
special or exclusive privileges in full conformity with the provisions of the WTO Agreement, in
particular Article XVII of the GATT 1994 and the Understanding on that Article and Article VIII of
the GATS.  He further confirmed that Georgia would notify any enterprise falling within the scope of
Article XVII.  The Working Party took note of these commitments.
Free zones, special economic areas
112. The representative of Georgia said that his Government planned to establish free economic
zones in Poti and Batumi following the adoption of the appropriate legal basis for the creation of such
zones.  However, Parliament had rejected the draft law on free economic zones.
113. The representative of Georgia confirmed that if Georgia established any free zones or special
economic areas, it would administer any such areas  in compliance with WTO provisions, including
those addressing subsidies, TRIMs, and TRIPS, a nd that goods produced in these zones under tax and
tariff provisions that exempt imports and imported inputs from tariffs and certain taxes would be subject
to normal customs formalities when entering the rest of Georgia including the application of tariffs and
taxes.  The Working Party took note of this commitment.
Government procurement
114. The representative of Georgia said that gove rnment procurement, whether by a ministry,
agency or other governmental body, was carried out by competitive tender under Presidential Decree
No. 162 of 11 February 1996 and the Cabinet of Ministers' Resolution No. 264 "On Delivery of
Products and Goods for State Needs of the Republic of Georgia" of 30 March 1993.  The main entities
involved in government procurement were the Ministry of Defence, the Ministry of State Security, theWT/ACC/GEO/31
Page 25
Ministry of Internal Affairs, and the State Department of State Border Protection.  Government
procurement was carried out in a non-discriminatory manner between domestic and foreign suppliers,
except for procurement of certain types of goods for the armed forces, in which case the participation
of foreign companies was restricted.  No statistical data were collected on government procurement in
Georgia.
115. Parliament had adopted a new law on gove rnment procurement based on the UNCITRAL
model law, prepared in close cooperation with  GEPLAC (Georgian-European Policy and Legal
Advice Centre), in December 1998.  The Law would be amended to ensure full compatibility with the
Agreement on Government Procurement.
116. The representative of Georgia said that Georgia intended to join the Agreement on
Government Procurement.  He confirmed that Georgia had requested observer status in the
Committee on Government Procurement on 9 July 1999 (document GPA/W/89).
117. The representative of Georgia confirmed that, upon accession to the WTO, Georgia would
initiate negotiations for membership in the Ag reement on Government Procurement by tabling an
entity offer.  He also confirmed that, if the results of the negotiations were satisfactory to the interests
of Georgia and the other members of the Agreement, Georgia would complete negotiations for
membership in the Agreement by 31 December 2000.  The Working Party took note of this
commitment.
Transit
118. The representative of Georgia said that goods transported through the territory of Georgia
were exempt from customs duty, VAT and excise taxes.  On 16 April 1999, Georgia had acceded to
the Convention and Statute on Freedom of Transit of 20 April 1921;  the Convention on Transit Tradeof Land-Locked States (New York, 8 July 1965);  and the International Convention on the
Harmonization of Frontier Controls of  Goods (Geneva, 21 October 1982).
119. The representative of Georgia confirmed that his Government would apply its laws and
regulations governing transit operations and would act in full conformity with the provisions of the
WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this
commitment.
Agricultural policies
120. The representative of Georgia said that imports of agricultural products were subject only to
tariffs (zero, 5 or 12 per cent) and sanitary and phytosanitary measures.  There was no special exportregime applicable to agricultural goods, no export credits other than those available from commercial
banks, and no system of export credit guarantees or insurance cover arranged by the Government.
121. Concerning internal policies, he said that his Government was cooperating with multilateral
and bilateral organizations to transform the collective agricultural system to a market-based system.Programmes included land reform, privatization of farms and agro-industry, the establishment of
competitive markets in distribution services, and the development of research, education and
extension services.  With the assistance of European Communities counterpart funds (CPF), the
Government provided - through the commercial banking system - short term working capital to
traditional suppliers of inputs of fertilizers, seeds, and energy products, as well as to grain producersand traders.  The Government did not engage in agricultural subsidies through price support, direct
payments to farmers or in subsidized credit arrangements, other than to grape and tea producers.  No
budgetary resources were available to assist the residual State farms sector.  The Government did not
provide any export subsidies.WT/ACC/GEO/31
Page 26
122. The representative of Georgia confirmed that Georgia would bind its agricultural export
subsidies at zero.
123. Georgia's commitments on agricultural tariffs, on domestic support and export subsidies for
agricultural products are in the Schedule of Concessions and Commitments on Goods annexed to
Georgia's Protocol of Accession to the WTO.
Trade in civil aircraft
124. The representative of Georgia said that Georgia maintained a duty-free regime for the
importation of aircraft parts and other supporting equipment used in international transportation.Georgia intended to join the Agreement on Trade in Civil Aircraft upon accession to the WTO.
125. The representative of Georgia said that Georgia would, from the date of accession,
implement the Agreement on Trade in Civil Aircraft without exceptions or transitional period.  The
representative of Georgia confirmed that Georgia would become a signatory to the Agreement onTrade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this
commitment.
Textiles regime
126. A member asked whether Georgia would notify an y quantitative restrictions on its exports of
textiles to the Textiles Monitoring Board.
127. The representative of Georgia said that Georgia did not maintain any quantitative import
restrictions on textile and clothing products.  According to an Agreement with the EuropeanCommunities (1993), Georgia's exports of textile and clothing (HS Chapters 50 to 63) could become
subject to quantitative restrictions in the European Communities' market if the exported volume
exceeded 0.35 to 4 per cent, depending on the product, of total Community imports in the previous
year.  The Agreement also contained provisions against Georgian exports of textile products at prices
"…abnormally lower than the normal competitive level".  However, these provisions had never been
invoked, and the quantitative limits had not been applied.
TRADE-RELATED INTELLECTUAL PROPERTY REGIME
General
Industrial property protection
128. The representative of Georgia said that the protection of intellectual property rights was an
essential element of Georgia's economic policy.  Intellectual property rights were inviolable according
to Article 23 of the Constitution.  The system of intellectual property protection in Georgia was
designed to comply with the requirements of lead ing multilateral treaties in this field, including the
Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement), the
Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection
of Literary and Artistic Works.  The specific provisions of Georgian law meeting the requirements of
each article of the TRIPS Agreement are summarized in Table 6.
Responsible agencies for policy formulation and implementation
129. The representative of Georgia said that the Georgian National Intellectual Property Center
(Sakpatenti) was responsible for matters involving industrial property (inventions, utility models,WT/ACC/GEO/31
Page 27
industrial designs, trade marks, service marks), and for matters involving appellations of origin and
layout designs of integrated circuits.  The Copyright Agency dealt with matters involving copyrights
and neighbouring rights, and the Ministry of Agriculture was responsible for matters involving plant
variety protection.
Participation in international intellectual property agreements
130. The representative of Georgia said that Georgia was a member of WIPO and a party to the
Paris Convention for the Protection of Industrial Property (18 January 1994); the Patent Cooperation
Treaty (18 January 1994); the Berne Convention for the Protection of Literary and Artistic Works
(15 May 1995); and the Protocol Relating to the Madrid Agreement Concerning the International
Registration of Marks (20 August 1998).  Georgia intended to join the Rome Convention for theProtection of Performers, Producers of Phonogra ms and Broadcasting Organizations (1961); the
Budapest Treaty on the International Recognition on the Deposit of Microorganisms for the Purposes
of Patent Procedure; and UPOV (Geneva Act, 1 991).  Georgia had concluded a bilateral agreement
with Uzbekistan on cooperation in the field of industrial property protection in 1996, and an
agreement on cooperation between the patent offices of Georgia and Austria.  Georgia had alsoconcluded a bilateral agreement with Kazakstan (11 November 1997) on industrial property.  This
agreement was based on the Paris Convention.  None of these agreements provided protection in
excess of that required by the TRIPS Agreement.
Application of national and MFN treatment to foreign nationals
131. The representative of Georgia said that Georgia granted national treatment in accordance with
the Paris and Berne Conventions.  According to Article 1018 of the Civil Code copyright was
extended to works protected by those international agreements to which Georgia was a party.  Georgia
would grant national and MFN treatment to Members of the WTO upon accession to the WTO.
Fees and taxes
132. The representative of Georgia provided information on State fees for patenting inventions,
utility models, industrial designs, and for regi stration of trade marks (document WT/ACC/GEO/3,
page 42).  There were no fees for the protection of copyrights.  Fees for other areas of intellectual
property rights had not been established so far.
Substantive Standards of Protection, Including Procedures for the Acquisition and Maintenance of
Intellectual Property Rights
Copyright and related rights
133. The representative of Georgia said that Georgia provided copyright protection under Book 4,
section 1 of the Civil Code.  The provisions of th e Civil Code on copyright had been supplemented by
a new law on copyright and neighbouring rights, adopted by Parliament on 22 June 1999.  The
Copyright Law of Georgia had been prepared on the basis of the WIPO model law.
134. The Civil Code (Article 1017) protected the moral and economic rights of authors, and
neighbouring rights connected with performers, producers of phonograms and broadcasting
organizations.  The rights of performers, produc ers of phonograms and broadcasting organizations
were defined in Articles 1082 to 1091.  Computer program issues were regulated in Articles 1060-61.
Protection did not depend on any kind of formal procedure nor on the level of protection in the
country of origin.  The term of protection began from the moment of creation of the work and lasted
50 years beyond the death of the author according to the Civil Code, Articles 1062 (duration), 1063
(validity) and 1508 (application of copyright law norms on pre-existing works).  Article 1045, whichWT/ACC/GEO/31
Page 28
should be read together with Articles 1039, 1040 and 1041, provided for the authors' rights concerning
cinematographic adaptation or reproduction envisaged in Article 14 of the Berne Convention.  The
limitations and exceptions on the rights of authors stipulated in Articles 1050 through 1061 were
confined to cases which did not conflict with normal exploitation of the work and did not
unreasonably prejudice the right holder's legitimate interests.
135. Article 6 of the Copyright law and Article 1024 of the Civil Code defined copyrightable
material as (i) literary works (books, brochures, articles, computer programs, etc);  (ii) drama or
musical-dramatic works, choreographic, mime, and other theatrical works;  (iii) musical works, with
or without text;  (iv) audio-visual works;  (v) sculptures, paintings, and architectural, graphic,
lithographic and other work of visual art;  (vi) pieces of decorative-applied and monumental art;  (vii)
pieces of theatrical-decorative art;  (viii) photographic works, and works created by means analogousto photography;  (ix) maps, plans, sketches, illust rations and other three-dimensional works belonging
to geography, photography or other sciences;  (x) derivative works;  and (xi) collection of works or
data representing results of intellectual creative activity.
136. The representative of Georgia stated further that rights of producers of phonograms were
protected under the Law on Copyright.  Article 48 granted producers of phonograms exclusive rights
to use the phonogram, including the right to use, to permit or to prohibit reproduction, first
distribution of a phonogram, rental of a phonogram, distribution of a phonogram by sale, rental, or by
transferring ownership of copies of a phonogram;  import of the copies of a phonogram for the
purposes of distribution, including copies made with the consent of the right holder.  Article 51.1permitted use of a phonogram without permission or remuneration only when making (i) limited
quotations for scientific, polemic, critical and informational purposes or (ii) short insertion of excerpts
in the reviews of current events;  with paying remuneration, during public performance and broadcast.
Article 57.3 protected rights of producers of phonograms for 50 years from the first recording.  If
within this period a phonogram was lawfully published or broadcast, the term would be extended for50 years from such event.  Phonograms in Georgia were also protected by the Berne Convention.  In
addition, Georgia undertakes to join the International Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting  Organizations within five years.
137. The law on copyright and neighbouring rights included specific provisions on economic rights
(Article 16), the rights of producers of phonograms (A rticle 39), the rights of producers of videograms
(Article 40), the distribution of phonogram and videograms (Article 41), and the rights ofbroadcasting organizations (Article 42), as well as certain provisions which were not reflected in the
Civil Code, for example on rental rights in respect  of computer programs, cinematographic works and
phonograms (drafted on the basis of the EC Directive of 14 May 1991 on the Legal Protection of
Computer Programs), and cable transmission rights (Article 16(g)).  Articles 18-25 of the new
copyright law detailed the limitations and exceptions to the copyright owner’s exclusive rights.  Thesewere limited to cases that did not conflict with normal exploitation of the work or unreasonable
prejudice the legitimate interests of the right holder.  The representative of Georgia stated further that
the provisions in the Civil Code were considered to  be compatible with the copyright law, but that in
case of conflict, the provisions of the copyright law would govern.  It was expected that the provisions
in the civil Code would eventually be revoked, but th at this probably would not happen until a general
revision of the Civil Code was undertaken.
138. With respect to pre-existing works, the represen tative of Georgia stated that Section 3 of the
new Copyright Law provided protection for "other works . . . which are protected in accordance with
those International agreements to which Georgia is a party."  Georgia was a member of the BerneConvention;  therefore this provis ion protected any work required to be protected by that Convention.
Article 27 of the Law provided that works were pr otected from "the moment of creation of the work"
until 50 years after the death of the author.  There was no distinction between works created before or
after the Berne Convention came into force in Georgia; protection applied equally to both.WT/ACC/GEO/31
Page 29
139. A court could order confiscation of copies of counterfeit works and phonograms and the
materials and equipment needed for their reproduction, which would be handed over to the right-
holder or destroyed.  Counterfeit copies of works and phonograms, obtained by third parties in good
faith, were not subject to confiscation (Civil Code Article 1098).
Trademarks, including service marks
140. The representative of Georgia said that a new Law "on Trademarks" had been adopted by
Parliament on 5 February 1999 and had entered into force on 22 May 1999.  The new Law was based
on the standards of the TRIPS Agreement and the European Communities Council Regulation (EC)
No. 40/94 of 20 December 1993 on the Community Trade Mark, as amended by Council Regulation(EC) No. 3288/94 of 22 December 1994 for the Implementation of the Agreement Concluded in the
Framework of the Uruguay Round.
141. The Law defined a trademark as a sign or a combination of signs which could be expressed
graphically and was capable of distinguishing the goods and/or services of one enterprise from thoseof another.  A sign could be a word;  combination of words (including personal name, letters and
numerals);  figure;  design sound mark;  or three-dimensional configuration, including the shape of
goods or their packaging as well as colours and combination of colours.  The exclusive rights of the
trademark owner, the scope of protection, and the scope of the exclusive rights were enumerated in
Articles 6 and 7 of the Law.  Well-known tradem arks were protected by Article 3 of the Law.
142. Trademarks were protected through registration with the Georgian National Intellectual
Property Center "Sakpatenti".  The substantive examination of a trademark should be effected within
eight months from the date of filing with Sakpatenti.  Decisions regarding trademark registration
could be challenged in the Chamber of Appeal, and the decision of the Chamber of Appeal could beappealed before a court.
143. Registration of a trademark did not depend on use, but a trademark registration could be
cancelled after five years of continuous non-use in Georgia.  Service marks were protected in the
same way as trademarks, and Georgian legislation protected well-known marks.  Well-known marks
were protected without registration by virtue of Article 6 bis of the Paris Convention according to
Article 3.4 of the Trademark Law.  Georgian legislation referred to the Paris Convention on theProtection of Industrial Property (Article 6 bis) for the definition of a "well known" mark.  The
requirement of Article 16.1 of the TRIPS Agreement that the law should presume confusion where an
identical mark was used without authorization on identical goods and services was addressed in
Article 5(1) and 6.2 of the Law.  Article 6 of the Law extended the protection to similar signs for
similar products.  Articles 16.2 and 3 of the TRIPS Agreement were implemented through Article 6.4of the Trademark Law.
144. A trademark certificate was valid for an initial term of 10 years from the date of registration,
and could be renewed indefinitely for additional periods of 10 years.  Agreements to transfer or
licence a trademark needed to be registered with Sakpatenti to have juridical force.
Geographical indications, including appellations of origin
145. Some members asked about the status of protection of geographical indications, including
appellations of origin in Georgia, noting that the Statute of Trademarks was deficient in a number ofareas with respect to Articles 22 to 24 of the TRIPS Agreement.  In particular, Article 22.3 of the
TRIPS Agreement required a Member to refuse to register or invalidate registrations containing
geographical indications except in instances in which such marks had been used continuously for at
least 10 years or in good faith before 15 April 1994, and the TRIPS Agreement stipulated protectionWT/ACC/GEO/31
Page 30
against use of geographical indications even when literally true but which falsely represented that the
goods originated in another territory;  protection, with certain exceptions, of appellations of origin for
wines and spirits even against use accompanied by expressions such as "kind", "type", "style", etc;
and refusal or invalidation, with certain exceptions, of trademark registrations containing geographical
indications for wines and spirits if they did not originate in the place named.
146. The representative of Georgia replied that a new Law "on the Protection of Appellations of
Origin and Geographical Indications" had been prepared based on Articles 22 to 24 of the TRIPS
Agreement and European Communities Council Regulation (EC) No. 2081/92 of 14 July 1992.  The
new law had been enacted by Parliament on 22 June 1999.  The Government believed that the new
Law met all the requirements of Articles 22-24 of the TRIPS Agreement.
Industrial designs
147. The representative of Georgia said that a new patent law, adopted by Parliament on
5 February 1999 and effective 27 May 1999, regulated the protection of industrial designs in Georgia.
Applications for registration were filed with "Sakpatenti", which granted patents to industrial designsconsidered novel, original and industrially applicable.  The term of validity of a patent was 15 years
from the date of filing of the application.  A licence  agreement could be registered with "Sakpatenti".
Any person engaged in non-authorized use of an industrial design could be ordered to suspend its use
and the owner of the patent could claim damages.  Neither the Statute on Industrial Designs nor the
patent law contained any special requirements regarding the protection of textile designs.
Patents
148. The representative of Georgia said that a new Patent Law had entered into force on
27 May 1999.  Under this law, the Georgian National Intellectual Property Center "Sakpatenti"granted patents for inventions which were considered novel, involved an inventive step, and were
industrially applicable.  The term of a patent was 20 years from the date of filing of the application.
149. Patents would not be granted for surgical, therapeutic and diagnostic methods of treatment of
people and animals; species of plants and animals, and particular biological methods for breeding
plants and animals; or inventions which could pr ovoke or encourage inhumane, immoral and/or anti-
social actions.  Discoveries, scientific theory, or mathematical methods; results of artistic work;computer algorithms and programs; intellectual implementation methods, including education and
training methods; organizational and management methods; industrial design and diagrams for
planning of buildings, constructions and territories; and presentation of information would not be
regarded as inventions.
150. According to the Patent Law, the patent owner had the exclusive right to use or dispose of an
invention at his discretion, to make a product protected by the patent, to place the object in commerce,
and to derive income from its use.  The patent owner could sell or otherwise alienate a patent, or grant
a licence.  Non-exclusive compulsory licences could be granted after 4 years of patent issuance upon
the request of any interested persons (Article 61), provided that the proposed user had made efforts toobtain a license from the right holder on reasonable terms.  By the date of accession, Georgia will
establish regulations concerning licensing terms and conditions that full satisfy the detailed requirements
of TRIPS Article 31.
Plant variety protection
151. The representative of Georgia said that the Law on Protection of Selection Achievements
protected plant variety and animal breeders by granting a certificate.  The certificate confirmed theWT/ACC/GEO/31
Page 31
exclusive right of its holder on selection achievement.  The Law had been prepared according to the
standards of the UPOV Convention (1991).
Layout designs of integrated circuits
152. The representative of Georgia said that the Patent Office of Georgia had prepared a new law
on protection of layout designs of integrated circuits.  The Law on Topographies of Integrated
Circuits had been enacted by Parliament on 22 Ju ne 1999.  His Government believed the new Law
met the requirements of Articles 35-38 of the TRIPS Agreement.  The Law was provided to the
Working Party.
Requirements on undisclosed information, including trade secrets and test data
153. The representative of Georgia said that the Law "on Monopolistic Activity and Competition"
(Article 9.7) prohibited the collection, use and/or distribution of trade-related information or
commercial secrets without consent of the proprietor.  Commercial secrets were also defined and
protected by Article 1105 of the Civil Code.
154. Georgia's law did not contain any express provision protecting test data for pharmaceuticals
and agricultural chemicals, but relevant legislation was expected to be prepared and enacted in 1999.
Agricultural products were tested and registered by  the Plant Protection Department of the Ministry of
Foods and Agriculture.  Test data and other data were protected and not subject to disclosure untilregistration.  Pharmaceutical products were tested by the Ministry of Healthcare.  Applications were
registered and marked "for internal use only", and could not be copied or disclosed to outside persons.
Measures to Control Abuse of Intellectual Property Rights
155. The representative of Georgia said that the State Anti-monopoly Service was authorized to
take measures against acts of unfair competition according to Article 21 of the Law "on Monopolistic
Activity and Competition".  The Service could initiate court proceedings, requesting the cessation or
prohibition of activities violating Georgia's anti-monopoly legislation, and raise the issue of
administrative and criminal liability.
Enforcement
Civil judicial procedures and remedies
156. The representative of Georgia said that the Code of Civil Procedure, which had entered into
force on 20 May 1999, stipulated that intellectual property cases were under the jurisdiction of circuitcourts.  The judicial authorities could order a party to  desist from an infringement.  Article 45.2 of the
Law on Trademarks allowed a trademark owner whose rights had been violated to file a civil suit
seeking cessation of the infringing activities, destruction of all materials carrying an infringing
trademark, and damages.  The infringer could also be fined or imprisoned.  Article 69 of the Patent
Law provided similar protection against infringement of patents, and Articles 47-49 of the Law onCopyright provided equivalent protection to copy right owners.  Similar protection was provided by
Article 16 of the Law on Geographic Indications, and by Article 15 of the Law on Topographies of
Integrated Circuits.
Provisional measures
157. The Law on Intellectual Property Related Border Measures, enacted by Parliament on
22 June 1999, provided for provisional measures to prevent the import or export of goods infringing
copyrights or trademarks protected under Georgian law.  This Law implemented Articles 50-60 of theWT/ACC/GEO/31
Page 32
TRIPS Agreement.  Additional protection was provided under Article 53 of the Administrative
Procedure Code, and Articles 103-5 and 134 of the Civil Procedure Code.
Administrative procedures and remedies
158. The representative of Georgia said that the draft Code of Administrative Infringements
contained provisions regarding intentional violation of copyright and patent rights (Article 52), and
misappropriation of trademarks (Article 268).
Special border measures
159. The representative of Georgia said that the Law on Intellectual Property Related Border
Measures provided that goods infringing copyright or trademark under Georgian law could, upon
order of the court based on an application of the copyright or trademark holder, be detained for up to
ten days.  Within that time the right holder would need to initiate proceedings on the merits against
the alleged infringer.  The Law had been prepared  specifically to implement Articles 50-60 of the
TRIPS Agreement.
Criminal procedures
160. The representative of Georgia said that a commission within the Ministry of Justice had
prepared the draft Criminal Code of Georgia.  The draft Criminal Code stipulated criminal penalties
with respect to violation of intellectual propert y rights (Article 194), restriction of monopolistic
activities and competition (Article 200), misappropriation of trademarks, including well-known
trademarks (Article 201), false advertising (Article 205) and illegal provision or distribution of
information containing commercial or banking secrets (Article 200).  Penalties ranged from a fine
equal to 300-1,000 times the minimum wage and up to two years' imprisonment.
161. The representative of Georgia stated that Georgi a would comply with all the provisions of the
Agreement on Trade-Related Aspects of Intellectual Property Rights from the date of its accession to
the WTO, without recourse to any transitional period.  The Working Party took note of this
commitment.
POLICIES AFFECTING TRADE IN SERVICES162. The representative of Georgia said that services sectors accounted for approximately
32 per cent of Georgia's GDP in 1998.  Georgia had drafted and adopted new laws and amended
existing legislation related to trade in services to make the legislative basis consistent with the
Agreements of the World Trade Organization.  General laws related to services included theConstitution of Georgia;  the Law "on Promotion a nd Guarantees of Investment Activity";  the Law
"on Entrepreneurship";  the Law "on the Legal Conditions of Foreigners";  the Law "on Temporary
Entry, Residence and Exit of Foreigners from Georgia";  the Law "on Monopoly Activities and
Competition";  and the "Bankruptcy Law" of 25 July 1996.  Licensing requirements in the services
area were detailed in docu ment WT/ACC/GEO/4, pp. 129-137.
163. Concerning specific services sectors, he said that a Law on Business Licensing, enacted on
14 May 1999, provided the framework for licensing the sectors of insurance, banking, securities, air
and maritime transport, auditing services, construction and design, and private education services,
including licensing agency and uniform procedures to be followed.  The representative of Georgiaexplained earlier that banks were required to be registered with the Courts, and to hold a banking
licence issued by the National Bank of Georgia.  The National Bank based its administrative decisions
on the Law on the National Bank of 28 June 1995 and the Law on Commercial Banks Activities of
February 1996.  Foreign banks operated in accordance with Georgia's common banking legislationWT/ACC/GEO/31
Page 33
and were not subject to any special or additiona l requirements.  The Insurance State Supervision
Service controlled insurance activities.  Licences were  granted for an indefinite period of time.  The
Insurance Law had been amended in October 1998 to abolish restrictions on foreign ownership of
insurance companies, effective upon Georgia's accession to the WTO.  The Ministry of Finance
established and enforced the regulatory regime for the stock market and issuance of securities.Parliament had approved a law establishing a stock market and providing for registration and
regulation of securities in Autumn 1998.  Parliament had also approved amendments to the Law "on
Entrepreneurship" providing for improved stockholder protection and other provisions to encourage
the development of a securities market in Georgia.
164. The Ministry of Telecommunications and Post al Services regulated the telecommunication
sector and postal services in accordance with the Law on Telecommunications No. 568 of12 October 1994.  The Ministry formulated legislation, regulated tariffs and charges and participated
in the establishment of industry standards.  Licences were issued by the Ministry of
Telecommunications, on the basis of a decision of a Licensing Committee (approved by the Minister)
within one month of submitting the application and documentation.  Telecommunication services
were provided by both State-owned and private firms.  Postal services were a State monopoly inaccordance with Presidential Decree No. 334 of 20 May 1996.  However, foreign express companies
also operated in Georgia.
165. The Ministry of Justice regulated legal services.  Legal services by foreign lawyers were not
regulated or restricted by Georgian legislation.  A new Law on Bookkeeping and Accounting hadbeen adopted by Parliament on 5 February 1999.  Audit services were regulated by the Audit Board
established under the Parliament of Georgia.  Audit firms needed to have a licence from the Audit
Council in order to provide audit services in Georgia.
166. The representative of Georgia confirmed that for sectors subject to domestic regulation,
including licensing, Georgia applied its domestic regulatory regimes in accordance with
GATS Article VI and other GATS requirements and did not discriminate against foreign suppliers.
167. The regulatory regime in the tourism sector comprised the Tourism Chart and Tourism Code
(September 1995), the Law "on Tourism and Resorts" of 6 March 1997, and Amendments and
Changes to the Law on Tourism and Resorts of 20 March 1998.  The fee for licensing tourist activities
was set at 245 Lari and applied equally to domestic and foreign firms.
168. Georgia's Schedule of Specific Commitments on Services is annexed to its draft Protocol of
Accession reproduced in the Appendix to this Report (see paragraph 181 below).  This Schedule of
Specific Commitments on Services contains the legally binding market access commitments of
Georgia in respect of services.
Transparency
Publication of information on trade
169. The representative of Georgia said that a normative act could not take effect before its official
publication (Article 38, paragraph 5 of the Law on Normative Acts of 29 October 1996).  Normative
acts for enactment were published either in "Sakartvelos Kanonmdeblobis Matsne" (Georgian
Legislation News), "Sakartvelos Parlamentis Utskhebani" (Georgian Parliament News), "Sakartvelos
Respublica" (official newspaper), or in the official publishing organ of the authority adopting thenormative act.  Publication of laws, regulations and administrative orders was a legal obligation, and
laws, regulations and administrative orders could not take effect before their publication.  Asked to
clarify the relationship between these requirements and Article X of the GATT 1994, he confirmedWT/ACC/GEO/31
Page 34
that Georgia published all laws, regulations, judicial decisions and administrative rulings of general
application prior to implementation.
170. A member noted that normative acts could be published in a variety of journals and asked
Georgia to indicate specifically which organs were relevant to the obligations contained in Article Xof the GATT and the WTO Agreements on SPS, TBT, TRIPS, GATS, Import Licensing Procedures,
and Customs Valuation.  Reminding Georgia that  Article X and several WTO Agreements required
laws, regulations, judicial decisions, and administrative rulings of general application dealing with
trade to be published in a manner which permitted governments and traders to become acquainted
with them, and in some cases for comment prior to finalization, this member requested Georgia to
review its current diffuse publication strategy and to consider focusing its publication requirements on
WTO issues in a relatively small number of publications.  The current system of publication ofnormative acts in various publishing journals coul d be a source of serious confusion and lack of
proper information for foreign traders.
171. The representative of Georgia replied that Art. 38.5 of the Law on Normative Acts provided
the legal requirement for the publication of trade laws (among other laws).  Although individualministries and agencies could publish enactments in various ways, two sources were authoritative.
"Sakartvelos Kanonmdeblobis Matsne" (Georgian Legislative News) was published weekly in three
parts:  (i) Parliamentary enactments;  (ii) international treaties and agreements to which Georgia was a
party;  and (iii) regulations and other enactments of the various ministries, as approved and registered
by the Ministry of Justice.  A separate publication, "Sakartvelos Presidentis Budzanebulebebi daGankargulebebi" (Decrees and Orders of the President of Georgia), published bi-weekly, contained
Presidential enactments.  These publications were, of course, in Georgian.  Unofficial English
translations were available for many important enactments from various commercial sources.   He
added that, from the date of accession, Georgia would publish all laws, regulations, judicial decisions,
and administrative rulings of general application dealing with trade in full conformity with Article Xof GATT 1994, Article III of the GATS and the other transparency requirements in WTO Agreements
requiring notification and publication.
Notifications
172. The representative of Georgia said that, at the latest upon entry into force of the Protocol of
Accession, Georgia would submit all initial notifications required by any Agreement constituting partof the WTO Agreement.  Any regulations subsequently enacted by Georgia which gave effect to the
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also
conform to the requirements of that Agreement.  The Working Party took note of this commitment.
Trade Agreements
173. The representative of Georgia said that Georgia was a member of several multilateral
economic organizations, including the Customs Coope ration Council (CCC);  the European Bank for
Reconstruction and Development (EBRD);  the United Nations Economic and Social Council
(ECOSOC); the European Teleco mmunications Satellite Organization (EUTELSAT);  the Food and
Agriculture Organization (FAO);  the International Atomic Energy Agency (IAEA);  the International
Civil Aviation Organization (ICAO); the Internat ional Fund for Agricultural Development (IFAD);
the International Labour Office (ILO);  the Intern ational Monetary Fund (IMF);  the International
Maritime Organization (IMO);  the International Maritime Satellite Organization (INMARSAT);  the
International Organization for Migration (IOM);  th e International Road Traffic Organization (IRTO);
the International Trade Centre (ITC);  the International Telecommunications Union (ITU);  the
Organization for Security and Cooperation in Euro pe (OSCE);  the United Nations Conference on
Trade and Development (UNCTAD);  the United Nations Development Programme (UNDP);  the
United Nations Economic Commission for Europe (UNECE);  the United Nations EnvironmentalWT/ACC/GEO/31
Page 35
Programme (UNEP);  the United Nations Indus trial Development Organization (UNIDO);  the
Universal Postal Union (UPU);  the World Food Programme (WFP);  the World Health Organization
(WHO);  the World Intellectual Property Organization (WIPO);  the World Meteorological
Organization (WMO);  the World Bank;  the International Bank for Reconstruction and Development
(IBRD);  the International Development Association (IDA),  the International Finance Corporation(IFC);  the Multilateral Investment Guarantee Agency (MIGA);  and the World Tourism
Organization.
174. Georgia had signed 30 bilateral agreements containing substantive provisions directly
affecting foreign trade in goods and/or services.  Georgia had concluded Free Trade Agreements with
Armenia, Azerbaijan, Kazakstan, Moldova, the Russian Federation, Turkmenistan, Ukraine and
Uzbekistan, but only those with Armenia, Azerbaijan, the Russian Federation and Ukraine had beenratified and were effective.  Georgia had also signed 22 agreements on trade and economic
cooperation or economic relations, as well as a number of agreements and treaties on the promotion
and reciprocal protection of investment (the respective agreements are listed in document
WT/ACC/GEO/3, Annex 7).  Georgia had signed a Pa rtnership and Cooperation Agreement with the
European Communities on 22 April 1996.  The agreement was based on reciprocal application of theMFN principle.  Georgia was a participating State in the Black Sea Economic Cooperation (BSEC),
established on 25 June 1992.
175. Concerning relations with the Commonwealth of  Independent States (CIS), he said that
Georgia had become a CIS member on 9 December 1993.  Georgia had signed the Agreement on theCreation of an Economic Union of  24 September 1993 and the Agreement on Creation of Free Trade
Area within the CIS, but these agreements had never been ratified, and the Government had no
intention of seeking ratification.  The Agreement on Creation of Free Trade Area within the CIS
bound signatories not to impose import or export duties or quantitative restrictions on goods
originating in signatory countries.  The Agreement provided that the parties would agree on goods tobe excluded from the free trade regime, but this had not been done.  The Agreement required each
party to authorize free transit over its territory of goods originating in another party and destined for a
third party.  The Agreement also required the signat ories to accord national treatment with respect to
(i) domestic taxes and levies of a fiscal character, (ii) other restrictions or requirements, and (iii) rules
on transit, warehousing and payment.  Parties were free to take quantitative or other protective
measures in response to shortages;  for balance of payments reasons; or to redress significant injury
caused by imports, or threat thereof, to domestic producers.  Each party remained free to adoptmeasures to protect public health, morals, order and security, plants and animals, national treasures
and intellectual property.  The Coal and Metal Association Agreement, signed by 11 CIS countries,
provided for the establishment of a Eurasian Association for Coal and Metal to further rational
development of the coal and metal-producing industries, coordination of scientific, technical and
investment policies, and promotion of beneficial conditions of supply and terms of sale.  The Coal andMetal Association Agreement aimed at elaborating "recommendations for implementation of general
industrial and economic policy in the field of coal and metallurgy", but did not contain any provisions
relating to preferential market access.  The Agreement had never been ratified and was not in force,
and the Government had no intention of seeking ratification.
176. The representative of Georgia stated that Georgia did not conduct any trade on the basis of
government-mandated countertrade or barter.  An agreement with the Russian Federation for 1996-97
had envisaged duty exempt barter of agricultural products in exchange for industrial goods between
private sector entities, but no such trade had actually taken place, and the agreement had expired.
177. In response to specific questions on Georgia's economic relations with other CIS countries,
the representative of Georgia reiterated that only the Free Trade Agreements with Armenia,
Azerbaijan, the Russian Federation and Ukraine were actually in force.  The Free Trade Agreement
with Ukraine had entered into force on 4 June 1996.  The CIS Agreement on the Creation of anWT/ACC/GEO/31
Page 36
Economic Union was a framework agreement which required separate agreements in specific areas of
economic activity to become effective.  No free circulation of goods, services, capital or manpower
had yet been implemented on the basis of this Agreement.  He stressed that Georgia had no intention
of joining the CIS Customs Union.  He agreed th at the Agreement "On Creation of Zone of Free
Trade of the Commonwealth of Independent States" would need to be notified under Article XXIV ofthe GATT 1994 and Article V of the GATS when and if that Agreement became effective, but added
that the agreement was not yet in force.
178. A member requested Georgia to submit notifications and copies of its Free-trade Area and
Customs Union Agreements to the Committee on Regional Trade Agreements (CRTA) upon
accession.
179. The representative of Georgia stated that his Government would observe the provisions of the
WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its participation in
trade agreements, and would ensure that the provisions of these WTO Agreements for notification,
consultation and other requirements concerning free trade areas and customs unions of which Georgia
was a member were met from the date of accession.  He confirmed that Georgia would, uponaccession, submit notifications and copies of its Free Trade Area and Customs Union Agreements to
the Committee on Regional Trade Agreements (CRTA).  He further confirmed that any legislation or
regulations required to be altered under its Trade Agreements would remain consistent with the
provisions of the WTO and would, in any case, be notified to the CRTA during its examination of the
same.  The Working Party took note of these commitments.
CONCLUSIONS180. The Working Party took note of the explanations and statements of Georgia concerning its
foreign trade regime, as reflected in this Report.   The Working Party took note of the commitments
given by Georgia in relation to certain specific matters which are reproduced in paragraphs 24, 26, 35,
40, 44, 53, 57, 62, 65, 69, 73, 76, 78, 82, 86, 89, 92, 99, 100, 107, 109, 111, 113, 117, 119, 125, 161,
172 and 179 of this Report.  The Working Party took note that these commitments had been
incorporated in paragraph 2 of the Protocol of Accession of Georgia to the WTO.
181. Having carried out the examination of the foreign trade regime of Georgia and in the light of
the explanations, commitments and concessions made by the representative of Georgia, the WorkingParty reached the conclusion that Georgia be invited to accede to the Marrakesh Agreement
Establishing the WTO under the provisions of Article XII.  For this purpose, the Working Party has
prepared the draft Decision and Protocol of Accession reproduced in the Appendix to this Report, and
takes note of Georgia's Schedule of Specific Commitments on Services (document
WT/ACC/GEO/31/Add.2) and its Schedule of Conc essions and Commitments on Goods (document
WT/ACC/GEO/31/Add.1) that are annexed to the Protocol .  It is proposed that these texts be adopted
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of
Accession would be open for acceptance by Georgia which would become a Member thirty days after
it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its work
concerning the negotiations for the accession of Georgia to the Marrakesh Agreement Establishing theWTO.WT/ACC/GEO/31
Page 37
Table 1:  Progress in privatization in Georgia
Privatization of enterprises, 1 January 1993 – 15 May 1999
(a) Medium/Large enterprises converted to Joint Stock Companies and subsequently sold
Enterprises converted to JSCs, by sector
Originally 1993 1994 1995 1996 1997 1998 1999 Total Remain
Industry 192 7 122 2 79470 1 7 6 1 6
C h e m .  E n g . 3 1 2 1 072121 2 56
N a t u r a l  g a s 5 7 0 31 11 5 31 1 14 41 3
B r e a d  P r o d . 6 1 012 1 8210 2 4 3 7
Agriculture 383 6 192 59 42 14 10 4 327 56
A r c h . & C o n s t . 2 1 9 2 9 4 9 0 1 5481 2 1 45
T r a d e / N a t .  R e s . 8 1 0 3 1 2 28540 7 0 1 1
Oil Products 49 0 1 984110 3 3 1 6
T r a n s p o r t 1 1 6 3 6 5 2 85342 1 1 06
S o c i a l  S v c s 4 9 2 1 6 1 84110 4 27
Energy 60 1 2 4 28 32 21 3 91 0
S e a p o r t s 2 000000002
Total 1,300 23 555 276 150 70 70 12 1,156 175
Joint Stock Companies privatized by sale of more than 50 per cent of shares, by sector
Originally 1993 1994 1995 1996 1997 1998 1999 Total Remain
Industry 176 8
Chem. Eng. 25 25 0
Natural gas 44 24 20
Bread Prod. 24 24 0
Agriculture 327 259 68
Arch.&Const. 214 170 44
Trade/Nat. Res. 70 44 26
Oil Products 33 27 6
Transport 110 110 0
Social Svcs 42 31 11
Energy 91 47 44
Seaports 0 0 0
Total 1,156 2 108 204 214 273 128 0 929 227WT/ACC/GEO/31
Page 38
Privatization of enterprises, 1 January 1993 – 15 May 1999
(b) Small enterprises ("Objects") sold without conversion to Joint Stock Companies
Originally 1993 1994 1995 1996 1997 1998 1999 Total Remain
Total: 12,088 1,310 1,370 4,701 2,247 1,474 1,910 136 13,148 405
By Sector:
  Industry: 345 26 35 103 50 30 22 3 269 76
  Construction 224 11 70 67 58 40 35 3 284 2
  Food/Agric. 584 54 29 125 76 92 112 5 493 91
  Transport 101 4 4 40 31 20 22 0 121 0
  Trade 4,532 394 717 2,184 464 465 584 59 4,867 0
  Public Svc 4,970 644 481 1,685 1,160 664 999 62 5,695 0
  Health Care 747 0 0 285 207 42 18 0 552 195
  Oil Products 166 149 1 011140 1 6 60
  Social Svc 246 23 20 154 171 97 100 4 569 0
  E n e r g y 3 354 1 33350 3 30
  Bread Prod. 140 0 0 44 26 20 9 0 99 41
Notes :
1. Total privatized exceeds the number originally identified because some units were divided.
2. Remaining unsold "Health Care" includes a number of smaller hospitals and clinics.
3. Remaining unsold "Industry" includes a number of unfinished construction projectsWT/ACC/GEO/31
Page 39
Table 2:  Rates of Excise Tax (Imported and Domestic)
No. Commodity HS Codes Quantity Rate (Lari or
per cent)
1 Sparkling wines, including champagne 2204.10, 2204.21.10,
2204.29.101 Liter 0.50
2 Fortified wines 2204.21.90,
2204.29.901 Liter 1.00
3 Vermouth and other natural wines flavoured with
extracts2205 1 Liter 2.00
4 Natural wines made of grapes which are not
included in lines 1 or 22204 1 Liter 0.20
5 Other fermented beverages (apple cider, perry,
mead); mixtures of fermented beverages, mixtures
of fermented and non-alcoholic beverages notelsewhere specified2206 1 Liter 2.00
6 Ethyl spirits 2207 1 Liter 0.70
7 Alcoholic beverages distilled from grape wine;
Chacha2208.20 1 Liter 2.00
8 Whiskey 2208.30 1 Liter 2.00
9 Rum and tafia 2208.40 1 Liter 2.00
10 Gin 2208.50 1 Liter 2.00
11 Liqueurs 2208.70 1 Liter 2.00
12 Vodka 2208.60 1 Liter 1.00
13 Other distilled alcoholic beverages 2208.90 1 Liter 2.00
14 Beer 2203 1 Liter 0.12
15 Tobacco products (except raw materials)
Cigars and cigarillos 2402.10 1000 pcs 150.00
Filter cigarettes 2402.20 1000 pcs 7.50
Non-filter cigarettes 2402.20 1000 pcs 2.50
Other tobacco products and substitutes 2403 1 kilo 20.00
Rates on imported tobacco products:
Cigars and cigarillos Each 0.25
Filter cigarettes Pack 0.25
Non-filter cigarettes Pack 0.19
Other tobacco products 1 kilo 20.00
16 Jewelry 7113, 7114, 7116 35%
17 Passenger automobiles 8703 15%
18 Passenger automobile tires 4011, 4012 15%
19 Salmon and sturgeon caviar; delicacy products of
fish1604.30, 1605 20%
20 Oils and other products of distillation of coal tar at
high temperature2707 except 2707.40
and 2707.9960%
21 Petroleum oils from bituminous materials, crude 2709 60%
22 Light, medium, and heavy distillates of oil 2710.00.10 to
2710.00.7080%
23 Liquified petroleum gases 2711.12, 2711.13,
2711.14, 2711.1960%WT/ACC/GEO/31
Page 40
No. Commodity HS Codes Quantity Rate (Lari or
per cent)
24 Other oil products produced from raw oils and
bituminous minerals2710 (except
2710.00.110 – 690
and 710-780)60%
25 Mineral water in bottles for retail sale 2201.10 and 2202.10 1 liter 0.10
Note: As of June 1999, a specific tax in lieu of excise, duty and VAT was levied on imported tobacco
products as follows:  filter cigarettes 0.25 lari per pack, non-filter cigarettes 0.19 lari per pack, cigars 0.25 lari
per piece, and pipe tobacco 20 lari pe r kg.  Excise taxes on domestic and imported tobacco products will be
unified by the date of accession.WT/ACC/GEO/31
Page 41
Table 3:  Items subject to import licensing
(a) Chemical agents for protection of plants: HS
3808.Licence is granted by the Ministry of
Trade and Foreign Economic Relations
with the consent of the Ministry of
Protection of Environment and NaturalResources, the Ministry of Agriculture
and Food.
(b) Wild animals and birds, fish, bones and hoofs
of extinct animals, wild plants, seeds of wood
species of forest and similar materials: HS
0101.19; 0102.90; 0103.90; 0104; 0105.99;
0106 (only wild animals); 0301-0303; 0407
(except poultry eggs); 0507; 0508; 0604;
0802.20; 1209.99; 1211; 1212.20; 1401-1404;
9601.Licence is granted by the Ministry of
Trade and Foreign Economic Relations
with the consent of the Ministry of
Protection of Environment and Natural
Resources, the Department of Forestry,
the Ministry of Agriculture and Food.
(c) Remedies, medicines and their raw materials,
narcotic and psychotropic remedies, poisons:HS 0206; 0507; 0510; 1211; 1212.20; 1302;
1504 (only pharmacological preparations and
their raw materials); 3001-3004; 300660.Licence is granted by the Ministry of
Health Protection.
(d) Weapon and military equipment, special
completing products, works for their
production, services in the field of military
technical cooperation:  HS 8506 (militarypurpose only); 8710; 8802 (except 8802.11;
8802.12; 8802.20; 8802.30; 8802.40);
8803.90 (except 8803.90.91); 8805.10; 8906;
9013.10; 9013.20; 9013.80, 9014; 9301; 9302;
9305 (only for fighting arms); 9306 (except:
9306.10; 9306.29; 9306.29; 930629; 930630);Licence is granted by the ministry of
Justice.
(e) Gunpowder, explosives, pyrotechnic
substances: HS 3601 (except gunpowder for
hunting); 3602-3604.Licence is granted by the Ministry of
Justice.
(f) Nuclear materials, technologies, equipment
and installations, special non-nuclearradioactive radiation sources:  HS ; 2844;
2845; 8401.Licence is granted by the Ministry of
Justice.
(g) Industrial wastes. Licence is granted on the basis of the
consent of the Ministry of Protection ofEnvironment and Natural Resources.
(h) Tobacco products: 2402 and 2403 Licence granted by the Ministry of
Trade and Foreign Economic Relations
The import of non-toxic industrial wastes is allowed only for the purpose of industrial
processing. Import of toxic and radioactive industrial wastes for the purpose of their utilisation, safe
disposal, processing, interment and any other purposes is prohibited.WT/ACC/GEO/31
Page 42
Table 4:  Exports subject to prohibition or licensing
According to Resolution No. 744 of 30 November 1995 of the Cabinet of Ministers of Georgia, the
Law of Georgia on Regulation of Forest Exploitation of 26 June, 1998, and the Law of Georgia of
Export of Scrap Metals of 26 June, 1998,  export of the following is prohibited or licensed as
indicated:
Prohibited:
HS 9701-9703, 9706 Artwork and antiques of
museum value
HS 9301, 9302, 9305, 9306 Weapons and gunpowder
Subject to licensing:
HS 9705 Collection materials of
biology, mineralogy,
archaeology, paleontology,
ethnography andnumismatics:Licence is granted in agreement
with the Ministries of Finance,
Protection of Environment and
Natural Resources, Culture andthe Department of Geology
respectively.
HS 4401, 4403, 4404, 4406,4407Timber and lumber Licence is granted by the Ministry
of Trade and Foreign Economic
Relations on the basis of  permit
for cutting timber Issued by the
State Forestry Department
HS 0206; 0510; 1211;13021; 1504.20; 1505;
3001; 3002Raw materials of animal
and plant origin for
medicines, substances
received from humanorganismLicence is granted by  the
Ministry of Health Protection.
HS1209.99 Caucasian Fir seed Licence is granted by the Ministry
of Trade and Foreign Economic
Relations in agreement with the
Ministry of Protection of
Environment and Natural
Resources.
HS 7204, 7404, 7602Ferrous, copper and
aluminum metal scrapLicence is granted  by the
Ministry of Trade and Foreign
Economic Relations.WT/ACC/GEO/31
Page 43
Table 5(a):  Products Subject to Mandatory Certification
Description of Product Position Code
1 Meat and meat products Group 2
2 Fish and other aquatic invertebrates Group 3
3 Milk and dairy products, birds’ eggs, natural honey, edible
products of animal originGroup 4
4 Coffee, tea, spices Group 9
5 Grain for bread Group 10
6 Cereals, starch, inulin Group 11
7 Fats, oils and their fractions of animal or plant origin. Group 15
8 Meat and fish ready for use products Group 16
9 Sugar and sugar confectionery Group 17
10 Cocoa and cocoa preparations Group 18
11 Preparations of cereals, flour, starch or milk; pastrycooks’
productsGroup 19
12 Preparations of vegetables, fruit, nuts or other parts of
plantsGroup 20
13 Miscellaneous edible preparations Group 21
14 Beverages, spirits and vinegar Group 22
15 Prepared animal food Group 23
16 Tobacco and tobacco products Group 24
17 Edible salt 2501 00 910
18 Organic and non-organic sands 2505, 2517, 2518.20, 2513, 2514,
2620, 2530.10
19 Clay, Portland cement and related stuff 2523, 2522, 2520.20, 2570, 2617,
2508.70, 7019
20 Engine petroleum containing lead no more than  0.013 g/l 2710.00.330
21 Engine petroleum containing lead more than 0.013 g/l 2710.00.350
22 Kerosene 2710.00.510
23 Diesel fuel 2710.00.690
24 Liquid fuel (mazout) 2710.00.790
25 Lubrication and other oils 2710 00 990
26 Liquid gas for everyday purposes 2711.12.190, 2711.13.900, 2711.19
27 Fertilizers Group 31
28 Coloring materials 3204, 3207
29 Essential oils and resinoids, perfumery, cosmetic or toilet
preparationsGroup 33
30 Washing and cleaning preparations 3401, 3402, 3405
31 Casein, caseinates, prepared glues etc. 3501.00.100, 3506.10, 4410, 4411,
4442, 2509, 5904, 6802.91,4409.20.910
32 Photographic or cinematography goods Group 37
33 Hydraulic brakes fluid 3819
34 Floor coverings of plastics etc. 3917, 3918
35 Plastics goods 3921, 3922, 3923, 3924
36 Pneumatic tires of rubber 4011, 4012
37 Clothing 6105, 6106, 6107, 6108, 6112, 6115,6207, 6208, 6209, 6211
38 Children’s shoes 6401, 6402, 6403, 6404, 6405WT/ACC/GEO/31
Page 44
Description of Product Position Code
39 Natural and artificial stones 6802, 2516, 2515, 1100,
40 Slag wool, rock wool and similar warm materials 6806, 6808, 7019.51
41 Wall materials 6810.11, 6809
42 Hydroisolation materials 6811, 7212.10.100, 6810.19.100,
6807.10.100, 2714
43 Articles of cement, concrete or artificial stone 6810
44 Traffic and road works 6801, 6815, 6810.19.310, 6807
45 Ceramic articles 6901, 6904, 6914, 6910.10
46 Fire resisting materials and articles 6902, 2524, 8544
47 China dinner, kitchen, other household and toilet articles 6911
48 Dinner, kitchen, other household ceramic dishes and toilet
articles6912
49 Steel and steel products 7210, 7216, 7219.12, 7212.20, 7217,
7304, 7306, 7307, 7309, 7314, 7317,7604, 7606, 7608
50 Steel constructions 7308, 7610, 7612
51 Aluminum containers not expanding the 50 litres capacity 7612.90.990
52 Locks 8301
53 Caps for glass bottles, corks, etc. 8309
54 Wire, rods, tubes, plates, electrodes and similar products, of
base metal or of metal carbides, coated or cored with flux
material, of a kind used for soldering, brazing, welding8311
55 Compressors and other parts for refrigerators 8418.99
56 Household air cleaning machine 8421.39.300
57 Household dish washing machines 8422.44
58 Desk, wall, floor fans 8444.51
59 Household refrigerators and freezers 8444.80
60 Air conditioning appliances 8445.10
61 Medical, surgical sterilizers 8449.20
62 Household or laundry washing machines 8450
63 Household wood work machinery 8465
64 Electric motors not exceeding 37.5 watts 8501.10
65 Motors and generators with constant electricity supply 8501
66 Motors of an output not exceeding 750 W 8501.51
67 Electric generating sets and rotary converters 8502, 8504
68 Basic elements and batteries 8506
69 Electric accumulators including their apparatus of different
shapes8507
70 Electrical engine operated manual electric-mechanical
instruments with indulged8508
71 Electrical engine operated household electric mechanical
machines8509
72 Electrical engine operated electric shavers and hair cutters; 8510
73 Alarm and lighting equipment 8512
74 Other electric household items 8516
75 Tape players and similar devices 8519
76 Tape recorders and other recording devices with or without
players8520
77 Video recording and playing devices 8521WT/ACC/GEO/31
Page 45
Description of Product Position Code
78 Fire and safety electronic alarms 8531
79 Electric devices for turning on/off the electricity, contacts,
with voltage over 100 V (switches, switchboards, power
reducers, fluctuation reducers, electric load, usingequipment, etc.)8535
80 Electric filament or discharge lamps, including sealed beam
lamp units and ultra-violet or infra-red lamps; arc-lamps8539
81 Vehicles carrying 10 or more persons (except used) 8702
82 Trucks (except used, ones for transporting radioactive
products)8704
83 Trucks specifically used for city communication purposes 8705.90
84 Car devices and details 8708
85 Motorcycles, bikes with supporting engines with or without
additional seats (except the used and sport cars)8711
86 Baby carriages 8715
87 Pacemakers for stimulating heart muscles 9021.50
88 Appliances and devices used in medicine, surgery,
dentistry, other electric medical facilities9048
89 Seating furniture 9401
90 Household furniture 9403
92 Prefabricated buildings 9406
93 Various prepared stuff 9613, 9616, 9617
Table 5(b):  Products Removed from Requirement for Mandatory Certification
Description of Product Position Code
Vegetables and bulbs, tuberous roots Group 7
Edible fruit or nuts, citrus and its shells and peel Group 8
Foliage beet, edible roots, lucern, edible cabbage, hay whether or
not granulated1214
Engine and aviation petroleum 2710
Medical oxygen 2804.40
Gauze and its preparations 3005.90
Lubrication means for cars, equipment and transportation means 3403.19
Matches 3605.00
Copper sulfate, packed for retail prices 3808.20
Herbicides 3808.30
Disinfectants, for use in health protection and veterinary 3808.40
Flexible insulation tubes of ethylene, vinyl chloride or other plastic
polymers3917.31
Diaphragm of polymers of ethylene 3920.10
Contraceptives 4014.90
Latex baby’s dummy, rubber ice bubbles, rubber hothouses,
medical rubber tubes4014.99
Appliances for individual safety reasons, rubber masks 4015.90
Surgical gloves 4015.11WT/ACC/GEO/31
Page 46
Description of Product Position Code
Plywood veneer sheets of leaf-bearing sorts with outward layers,
veneer sheets of coniferous sorts with outward layers4412
Veneer preparations 4415.10
Filter for grocery products 4805.40
Wrapping paper for grocery products 4805.80
Hard paper boxes 4819.10
Hard and soft paper boxes, including bending ones, paper bags and
bags of combined materials, glass and paper bottles4819.50
Insulation fabric 5903.90
Male, female and children knitted garments, including the clothing
for babies and children before school age - knitted garments -
male, female and children swimming and skiing suits - foot ware
(socks, warm pants and sweat pants)6109, 6111
Uncut diamond instruments – sewing discs, cutting discs 6804.21
Abrasion instruments - sewing discs, cutting discs 6804.22
Abrasion powder instruments 6805
Friction materials and preparations 6813
Air balloons of 50 litre capacity  at burst  pressure of 1.6 Pa 7311
Heaters, kitchen ovens, food heaters and other similar non
electrical equipment made of ferrous metal, related supplies7321
Copper enameled household articles 7323.92
Iron enameled household articles 7323.94
Manual garden tools (knives, etc.) 8201.10, 8201.20, 8201.30,
8201.50
Wood-cutting instruments - plate saws 8202.32
Screwdrivers 8203.20
Hammers, planes 8205.20, 8205.30
Guts 8205.40
Milling cutters 8207.70
Motorcycle and car engines 8407.34, 8407.90
Household liquid pumps, manual 8413.20
Manual household pumps 8414.20
Compressors used in refrigerating plants 8414.30
Electronic engine air conditioners for tables, wall, floor, ceilingwith capacity of 125 kWh8414.51
Air conditioner supplies for measuring air temperature and
humidity; conditioners without a separate regulator of humidity; -for wall or window - other8415.10, 8415.82, 8415.83
Refrigerator closets and containers 8418.10
Family refrigerators: compressive-electric, absorbing, other 8418.21, 8418.22, 8418.29
Refrigerator shelves 8418.50
Water heaters or water accumulators 8419.19
Medical, surgical sterilisers 8419.20
Machines, equipment and other for preparing warm drinks or
heating up dishes8419.81
Electric milk separators with capacity of 1 kWh and manual
capacity of 50 litre/hour8421.11
Household dish washers 8422.11
Machines for weighting and acknowledging the wrapped goods 8423.81WT/ACC/GEO/31
Page 47
Description of Product Position Code
Motor operated cultivators 8432.29
Machines for cutting the hay, grass, etc. 8433.11, 8433.19
Machines used in milk industry 8434
Electric incubators with capacity of 4kWh 8436.21
Mixers and related machines in food industry 8438
Binding machines for brochures 8440
Machines for textile fibre weaving: - carding machines;- looms 8445.11, 8446
Dryers for clothing 8451.21
Automatic or other sewing machines 8452.21, 8452.29
Electric household sewing machines 8452.10
Metal cutting machinery 8458, 8459
Non-electric, manual tools 8467
Automatic and electrical typing machines, machinery for textile
work8469
Concrete mixer 8474.31
Equipment for making mixtures of building materials 8474.39
Rubber and rubber product making machinery 8477
General machinery reducers and transmissions 8483.40
General machinery motor-reducers 8483.40
Electrical equipment with internal burn engine for automobile
transport (ignition coils, spark-plugs, starters);generators (of
constant and changeable electricity supply)8511
Industrial or laboratory used electric ovens and containers
including special machinery for thermo-works8514
Soldering irons and soldering apparatuses 8515.11
Automatic and half automatic machines and apparatus for arc
welding of metals8515.31
Electric phone system 8517.10
Electric door bell systems 8517.81
Electrical voice devices, microphones 8518.50
Broadcasting devices and apparatus for radio/ television, television
cameras8525
Radio-phone devices, radio-telegraph devices and other apparatus
for radio broadcasting8527
Television receivers including video monitors and video
projectors, with or without voice recording and playing devices8528
Constant electric network condensers of 50/60Hz. 8532.10
Electric devices for switching on/off, breaking and protecting the
electricity supply or for connection to electric circuits (switches,
sockets, cords, etc.)8536
Electric-laser hoses for television receivers including video
monitors with:  - coloured vision - black and white vision -
vacuum display hoses8540.11, 8540.12, 8540.89
Isolated electric tubes with or without connective details, optic
cables8544
Cars (except used, sport, snow equipped, field games vehicles) 8703
Electrical transport devices for transporting goods to ware-houses 8709 11 900
Two wheel bikes without engine 8712 00WT/ACC/GEO/31
Page 48
Description of Product Position Code
Photo cameras with flashes 9006 (except 9006.10, 9006.20,
9006.30, 9006.91, 9006.99)
Cine-projectors 9007.21
Slide projectors 9008.40
Electric devices and apparatus for medical, surgical, dental,veterinarian, etc. uses9018
Individual safe breathing devices 9020
Cardiostimulator 9021.50
Changeable electricity measurers - one line - multi line 9028.30
Electricity measurers and other 9018.30
Automobile speedometers 9029.20
Cathode-beam oscilloscopes and oscillographs 9030.20
Mixed electromeasuring devices 9030.31
Voltmeters, ampere meters and other electric devices 9030 (except 9030.39)
Electric clocks 9105
Medical, surgical, dentist, veterinarian furniture 9402
Lighting devices for stage, television and movie studios; for photo
and movie filming; for industrial purposes; for tables andprojectors9405
Human doll toys 9502
Receiver operated video games 9504.10
Coin or toil operated toys 9504 (except 9504.30)
Rubber masks and related diving gear 9506.29
Building material out of cement and metal Groups 25 and 69 (except 2515,
2516, 2517, 2523, 6904, 6908)
T-shirts and similar vests 6109
Liquid gas 2711.11, 2711.12
Coal 2701
Artificial leather 4111
Curing remedies 3003, 3004
Synthetic ammonia 2814
Calcium carbide 2819.10
Steel tubes 7304.10
Caprolactam
Chemical fibre and threadWT/ACC/GEO/31
Page 49
Table 6:  Status of Legislation on Intellectual Property in Georgia
TRIPS Part/Section Article Current Law OK Comments
Part I: General Article 1 LNR
Article 2 LNR Member Paris Convention
Article 3 PL/CL/TL/CC1018(f) Member Paris, Berne
Conventions
Article 4 LNR
Article 5 LNR
Article 6 LNR
Article 7 LNR
Article 8 LNR
Part II: Standards
  Section 1:  Copyright Article 9 LNR Member Berne Convention
Article 10 CC 1060-61,CL 10,25
Article 11 CC 1088,CL 16(3) , 39,40 Cinema, video
Article 12 CC 1062-63,CL 27,28
Article 13 CC 1050-61,CL 18-26
Article
14(1)CC 1082(1)(a)
Article
14(2)CC 1082(1)(b)
Article
14(3)CC 1091
Article
14(4)CC 1089,CL 16(3)
Article
14(5)CC 1062-63,CL 27-28
Article
14(6)LNR Permissive
  Section 2: Trademarks Article 15 TL 3,15
Article 16 TL 3(4),6
Article 17 TL 7
Article 18 TL 20
Article 19 TL 27
Article 20 LNR Negative requirement
Article 21 TL 25(2),26
  Section 3:  Geographical
IndicationsArticle 22 TL 5(e),LGI 3-5,11(1)
Article 23 TL 5(e),LGI 6,11(1)(b),(c)
Article 24 LGI 14(7) Art 24(5) only, others LNR
  Section 4: Industrial Designs Article 25 PL 14 Art 25(2) LNR
Article 26 PL 5(4),48(1),52
  Section 5: Patents Article 27 PL 12,17
Article 28 PL 48,49,59-62
Article 29 PL 24,26
Article 30 PL 52
Article 31 PL 52,61
Article 32 CPC/APA
Article 33 PL 5(1)WT/ACC/GEO/31
Page 50
TRIPS Part/Section Article Current Law OK Comments
Article 34 PL 49
  Section 6: Layout Designs Article 35 LIC 1,2,3,8
Article 36 LIC 5
Article 37 LIC 6,7
Article 38 LIC12
  Section 7:  Trade Secrets Article
39(1)LNR Member Paris Convention
Article
39(2)CC 1105
Article
39(3)LNR Data not required
  Section 8:  Anti-
CompetitionArticle 40 LNR
Part III: Enforcement
  Section 1:  General
ObligationsArticle 41 CPC 191-199, 364, TL45, Dft
APC 53APC to be enacted spring
2000
  Section 2:  Civil/Admin.
ProceduresArticle 42 CPC2,5,83,102,103,201
Article 43 CPC 134
Article 44 CPC 191-199, Draft APC 53 APC to be enacted spring
2000
Article 45 CC 408-415, CPC 43-54
Article 46 CC 1098, TL 45,LBM 9(2)
Article 47 LNR Permissive
Article 48 CC 408-415, CPC 43-54
Article 49 Draft APC 5 APC to be enacted spring
2000
  Section 3:  ProvisionalMeasuresArticle
50(1)LBM 3,4, CPC 191-199
Article
50(2)LBM 3-5, APC 53, CPC 191-
199
Article
50(3)CPC 103-5, 134
Article
50(4)CPC 194, 286
Article
50(5)LBM 5, CPC 198
Article
50(6)LBM 6, CPC 192
Article
50(7)LBM 7, CPC 199
Article
50(8)APC 5
  Section 4:  Border Measures Article 51 LBM 3-5
Article 52 LBM 5
Article 53 LBM 5,7
Article 54 LBM 5
Article 55 LBM 6
Article 56 LBM 7WT/ACC/GEO/31
Page 51
TRIPS Part/Section Article Current Law OK Comments
Article 57 LBM 8
Article 58 LNR Permissive
Article 59 LBM 9
Article 60 LBM 10
  Section 5:  Criminal
ProceduresArticle 61 Old Cr C 162, new CrC 194,201
Part IV:  Acquisition
ProceduresArticle 62 PL23-47,TL12-18,CC1024
Part V:  Dispute Sett lement Article 63 LNA 38, 61
Article 64 LNR
Part VI:  Transitional
ArrangementsArticle 65-
67LNR
Part VII:  Institutional
ArrangementsArticle 68-
73LNR WTO Institutional
Arrangements
LEGEND (KEY): APC Administrative Procedure Code
CC Civil Code
CL Copyright Law
CPC Civil Procedures Code
CrC Criminal Code
CrPC Criminal Procedure CodeLBM Law on Border Measures
LIC Law on Integrated Circuits
LGI Law on Appellations of Origin and
Geographical Indications
LNA Law on Normative Acts
LNR Legislation Not Required
PL Patent Law
TL Trademarks LawWT/ACC/GEO/31
Page 52
ANNEX I
Laws, Regulations and Other Information Provided to the Working Party by Georgia
- Draft Decree of the President of Georgia "On Foreign Trade Responsibilities with
respect to the World Trade Organization";
- Tax Code of 13 June 1997, as amended to 8 June 1999;- Law on Promotion and Guarantees of Investment Activity of 12 November 1996, with
amendment of 26 June 1998;
- Law on Concessions of 21 December 1994;
- Resolution of the Tbilisi Municipality City Board No. 07.03.45 of 29 September 1994 On
Making Minor Corrections to the Tbilisi Municipality City Board's Resolution No. 03.06 of
24 April 1993 and Approving the Instruction for Fixing Rental Change For the Use of Land
Plots in Tbilisi;
- Law on Privatization of State-owned Property of 30 May 1997, as amended to
24 December 1998;
- Law on Administration and Allocation of Stat e-owned, Non-allocated, Non-Agricultural Land
of 28 October 1998;
- Law on Declaration of Private Ownership of N on-Agricultural Land in Possession of Physical
Persons and Private Legal Persons of 28 October 1998;
- List of remaining non-privatized government owned firms as of May 1999;
- Draft General Administrative Code of Georgia (May 1999);
- Draft Code of Administrative Court Procedures of Georgia (May 1999);
- Law on Entrepreneurs No. 577-16 of 28 October 1994, as amended to 19 February 1999;- Customs Code of Georgia of 14 November 1997, as amended to 13 October 1998;
- Law on Customs Tariffs and Duty of 20 March 1998, as amended to 2 April 1999;
- Law on Customs Fees of 18 February 1998, as amended to 28 May 1999;
- Regulations Concerning Order of Determin ing the Customs Value of Goods Imported to
Georgia, approved on 31 May 1999;
- Regulations for Determining the Country of Or igin of Goods Imported to Georgia, approved
on 31 May 1999;
- Decree No. 391 of the President of Georgia "On Activities Addressing Regulation of
Production, Import, Wholesale and Retail Trade in Tobacco Products in Georgia", as
amended to 7 June 1999;
- Presidential Decree No. 322 of 23 June 1997 On the Regulation for Admission of Goods
Received Through Grants at the Customs of Georgia, Registration of Grants and Control OverTheir Application, as amended by Presidential Decree of 28 October 1997;
- Presidential Decree of 5 December 1998 "On Measures for the Implementation of
Requirements of the Agreement on Technical Barriers to Trade of the WTO";
- Law on Establishing of the Unified Meteri ng System No. 374-IS of 6 September 1996;
- Law on Standardization of 25 June 1999;- Law on Product and Service Certification of 6 September 1996, as amended to 30 April 1999;
- Plan of the measures on the consecutive planning of the requirements of international
standards, sanitary, veterinary, phytosanitary and ecological norms;
- Decree of the Ministry of Agriculture and Food No. 2-166 of 19 June 1997 On Approval of
the Regulation for Use of Paid Service Tariff of the State Inspection of PhytosanitaryQuarantine;
- Law on Agricultural Quarantine of 15 May 1997;
- Law on Government Procurement of 9 December 1998;
- Civil Code of Georgia of 26 June 1997;
- Law on Copyright and Neighbouring Rights of 22 June 1999;- Law on Trademarks of 5 February 1999;
- Law on Appellations of Origin and Geographical Indications of 22 June 1999;WT/ACC/GEO/31
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- Law on Patents of Georgia of 5 February 1999;
- Law on Layout Designs of Integrated Circuits of 22 June 1999;
- Articles 194/201of the Draft Crim inal Code of Georgia (May 1999);
- Law on Intellectual Property Related Border Measures of   25 June 1999;
- Law on Protection of Selected Achievements of 18 October 1996;
- Law on Protection of Consumer Rights of 20 March 1996;
- Law on Monopolistic Activities and Competition of 25 June 1996;
- Law on Advertising of 18 February 1998;
- Law on Audit of 7 February 1995, as amended to 27 June 1997;
- Law on the National Bank of Georgia of 23 June 1995, as amended to 13 October 1998;
- Law on Activities of Commercial Banks of 23 February 1996, as amended to
24 December 1998;
- Law on Insurance of May 2, 1997, as amended to 30 October 1998;
- Law on the Securities Market of 24 December 1998;
- Free Trade Agreement between Geor gia and Armenia of 14 August 1995;
- Free Trade Agreement between Georgia and Azerbaijan of March 1996;
- Free Trade Agreement between Georgia and the Russian Federation of 3 February 1994;- Free Trade Agreement between Georgia and Ukraine of 4 June 1996;
- Free Trade Agreement between Georgia and Uzbekistan of 4 September 1995;
- Agreement on Establishment of the Inter-State Euro-Asian Corporation of Coal and
Metallurgy of 24 September 1993;
- Agreement between the European Communities and the Republic of Georgia on Trade in
Textile Products;
- Law on Statistics of 12 November 1997;
- Statistical data on foreign trade of Georgia by commodity groups (1996);  and
- Statistical data on foreign trade of Georgia by HS (1996-1997).WT/ACC/GEO/31
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APPENDIX
ACCESSION OF GEORGIA
Draft Decision
The General Council,Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Republic of Georgia to the Marrakesh Agreement Establishing the World
Trade Organization and having prepared a Protocol for the Accession of Georgia,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of Georgia may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/GEO/31
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PROTOCOL OF ACCESSION OF GEORGIA
TO THE MARRAKESH AGREEMENT ESTABLISHING THE
WORLD TRADE ORGANIZATION
Draft
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh AgreementEstablishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and theRepublic of Georgia (hereinafter referred to as "Georgia"),
Taking note of the Report of the Working Party on the Accession of Georgia to the WTO in
document WT/ACC/GEO/31 (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Georgia to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, Georgia accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Georgia accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referredto in paragraph 180 of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in the para graphs referred to in paragraph 180 of the
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO
Agreement that are to be implemented over a period of time starting with the entry into force of that
Agreement shall be implemented by Georgia as if it had accepted that Agreement on the date of itsentry into force.
4. Georgia may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocoland meets the conditions of the Annex to the GATS on Article II Exemptions.WT/ACC/GEO/31
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Part II - Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred toas the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement
on Trade in Services (hereinafter referred to as "GATS") relating to Georgia.  The staging of
concessions and commitments listed in the Schedules shall be implemented as specified in therelevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance,  by signature or otherwise, by Georgia until
1 March 2000.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification ofacceptance thereto pursuant to paragraph 7 to each member of the WTO and Georgia.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
Done at Geneva this ... day of  .... one thousand nine hundred and ninety ….., in a single copy
in the English, French and Spanish languages each text being authentic, except that a Schedule
annexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/GEO/31
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ANNEX
SCHEDULE CXLV - GEORGIA
Part I - Goods
WT/ACC/GEO/31/Add.1
Part II - Services
WT/ACC/GEO/31/Add.2
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