RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/GEO/7 
24 February 1999 
 (99-0698) 
Working Party on the  
Accession of Georgia  
 
 
ACCESSION OF GEORGIA 
 
Elements of a Draft Report  
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 to 
examine 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 re ference and the 
membership of the Working Party are re produced in document WT/ACC/GEO/2/Rev.1. 
2. The Working Party met on 3 March 1998 under the Chairmanship of H.E. Ms E.L. Herfkens 
(Netherlands);  and 13 October 1998, …………  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 Addendum 2, WT/ACC/GEO/10, 
WT/ACC/GEO/12, WT/ACC/GEO/16, WT/ACC/GEO/18 ….), including the legislative texts and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 4. In his introductory statement, the representa tive of Georgia said that Georgia, although 
relatively small in size and popul ation, was located in a strategically important transit corridor 
between the Black and Caspian Seas.  Membership  in the WTO was the most important step in 
Georgia'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 fr om virtually all ministries and departments. 
5. Georgia was undergoing economic transition fro m a centrally-planned to a market based 
economy, with major reforms of its trade regime, ba nking sector and privatization of State property.  
Georgia had adopted a new Constitution in 1995, an d 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, intellect ual 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 individual 
WTO Members and international organizations in its process of reform and accession to the WTO.  WT/ACC/SPEC/GEO/7 
Page 2  
 
 He assured the Working Party that the Government of Georgia would do everything required to fulfill 
the commitments Georgia would be un dertaking in acceding to the WTO. 
6. In their opening remarks, members of the Work ing 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 refo rms, which would assist in accelerating the process 
of its accession to the WTO. 
7. The Working Party reviewed the economic polici es and foreign trade regime of Georgia and 
the possible terms of a draft Protocol of Accessi on to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Geor gia's foreign trade regime, and on the terms and 
conditions of Georgia's accession to the WTO, are summarized below in paragraphs 8 to ..... 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
8. The representative of Georgia said that the Nati onal 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" ha d 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 agri cultural and urban land ta x.  In response to a 
specific question, he said that local administrations could levy taxes within the framework of national 
legislation (Article 6.3 of the Georgian Tax C ode) on entrepreneurial activities, gambling business, 
health resorts, hotels, advertising, car parking, a nd 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 nati onal 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 mark et for foreign exchange between banks, while 
large volumes of small retail transactions were carri ed 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 Interna tional Monetary Fund in May 1992 with a quota 
of SDR 111 million.  Georgia had accepted Article VIII of the Articles of Agreement of the IMF in 
early 1997.  He confirmed that the national curre ncy was convertible on current account without any 
restrictions.  No requirements existed on the right of legal and natural pers ons to obtain, bank or 
dispose of foreign exchange, and there were no requirements to surrender foreign exchange earned  WT/ACC/SPEC/GEO/7 
 Page 3 
 
 
 from export operations.  He also confirmed that foreign currency needed for imports was equally 
available for goods subject to import licensing.  In re sponse to a specific question, he confirmed that a 
court order was required to freeze the bank acc ounts of domestic and foreign-owned firms. 
Investment Regime  
12. The representative of Georgia said that forei gn and domestic investment on the territory of 
Georgia was regulated under the Law "On Promotion 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 pa ragraph 1, Article 3 of the Law.  A registration requirement for 
foreign investors had been abolished with the en try into force of the Law "On Amendments and 
Changes to the Law on Promotion and Guarantees of Investment Activities". 
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 mone tary 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;  expl oration and exploitation of an y renewable or non-renewable 
substances;  exploration of de posits of natural resources;  est ablishment of casinos and gambling 
houses and the organization of games and lotteries;  banking;  insurance;  issuance of securities;  
wireless communication services and the establishmen t of radio and television channels;  and any 
other activities stipulated by the legislation of Georgia. 
15. According to the Law "On Amendments a nd Changes to the Law on Promotion and 
Guarantees of Investment Activities", investment  was prohibited with regard to the creation, 
production and proliferation of nuclear, bacteriol ogical and chemical weapons;  construction of 
polygons for testing nuclear, bacteriological and ch emical weapons;  importation of radioactive and 
toxic waste;  scientific research activities connect ed with human cloning;  production of narcotic 
substances;  cultivation of poppy, coca and hemp;  an d 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 joint-ventures had the 
right to buy only agricultural land. 
State Ownership and Privatization
 
17. The representative of Georgia said that priva tization had begun following the adoption of the 
Law "On Privatization of State Enterprises" and the State Programme of Privatization in 1992.  
Medium sized and large State enterprises had been  transformed into joint stock companies in 
accordance with Resolution No. 288 of the Cabinet of Ministers of 14 April 1993 as part of the 
privatization process.  In total, Georgia had 1,072 medium sized and large enterprises organized as 
joint-stock companies in mid-1997.  The privati zation of small entities, the first step of the 
privatization process, had been almost completed by 1997.  The status of Georgia's progress in privatization is presented in Table 1. 
18. Georgian and foreign natural and legal persons could take part in  the process of privatization 
with one restriction;  Georgian enterprises in wh ich the Government owned more than 25 per cent of 
the authorized capital could not purchase privatized property.  Privatization was carried out by the WT/ACC/SPEC/GEO/7 
Page 4  
 
 State Property Management Ministry through auctions  of blocks of shares, direct sales and tenders. 
The Government retained controlling blocks of shar es (51 per cent) only in exceptional cases when an 
enterprise was of strategic interest, and the num ber of such enterprises was strictly limited.  
Employees had preference in the allocation of a certain number of shares.  The greater part of State property had been privatized by vo uchers, and thousands of citizens had become new owners of these 
assets. 
19. A specific list of objects to be privatized w as approved annually by the Ministry of State 
Property Management in consultation with the Mini stry of Economy, Justice and other appropriate 
ministries.  The following enterp rises were scheduled for privatization in the period 1997-2000:  
(i)  telecommunication enterprises, except cable and radio broadcasting ne tworks of strategic 
importance, including the First State television cha nnel;  (ii)  fuel and energy sector enterprises, 
including electric energy, the coal industry, gas, oil extraction, and the supply of oil products;  (iii)  manufacturing enterprises except defence-relate d industry;  (iv)  agriculture and food industry 
except: veterinary services, plant protection servi ces, services controlling the quality of seeds and 
plant materials, testing stations, and training and research institutions of th e Academy of Agricultural 
Sciences of Georgia;  (v) construction-related en terprises except: main municipal pipelines, water 
supply, sewage and a technical evaluation bureau;  (vi) transport sector units except "Sakaeoronavigatsia", the airline companies "Aisi" and "Abavia", the ports of Batumi, Poti, Sukhumi, 
the airports of Tbilisi, Kutaisi, Batumi, Poti and Senaki, and the Tbilis i underground system;  
(vii)  health services excluding State medical organisa tions of vital importance;  and (viii)  education 
services.  Preparations to privatize Georgia's ra ilway infrastructure had begun.  Georgian Railway 
would be transformed into a joint-stock company,  and only the railway tracks would remain State 
property.  The representative of Georgia provided a list of joint-st ock 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 th e State as per October 1998, and objects planned for 
privatization in 1999, were also provided to the Work ing Party.  He also noted that information on the 
privatization process in Georgia was available on the Internet at three different addresses. 
20. Article 4 of the Law "On Privatization of State Property" of 30 July 1997 defined State 
property not subject to privatization.  Excluded fro m privatization were land of strategic importance, 
minerals, water resources, territorial waters and ma rine economic border zones;  units of historical, 
cultural and artistic values, State archives of historical and cultural importance, film and photo documents, State funds, State museums, archives a nd funds of ministries, and scientific research 
institutes;  Georgia's treasury and monetary reser ves, reserves of precious metals, funds of national 
value, social security, medical insurance and othe r 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 enterprises 
producing radioactive materials and materials fo r military purpose, and testing, designing and 
scientific institutions. 
21. Asked specifically about plans to privatize the energy sector, the representative of Georgia 
said that the energy sector would be restructured , dividing the regulatory functions and commercial 
activities.  The State monopoly would be eliminated  gradually, and Georgia would invite foreign 
investment to help relieve the existing crisis in th e energy sector.  Privatization of the electric energy 
sector would proceed in several stages.  Having dete rmined the authorized cap ital of the joint-stock 
companies, the controlling block of shares of distribution and production enterprises would be 
tendered and the remaining 49 per cent auctioned.  Unfinished plants, except "Khudonhesi", would 
also be privatized.  The State would retain 51 per cent of hydroelectric power stations on a temporary 
basis.  Enterprises in the coal industry would be tr ansformed into joint-stock companies and the State 
would retain 51 per cent ownership until an i nvestor could be found who would undertake the 
necessary investments to rehabilitate and modernize th e enterprise.  The controlling block of shares of 
joint-stock companies in the gas industry would be  sold by tender on the condition that each company  WT/ACC/SPEC/GEO/7 
 Page 5 
 
 
 would continue its activities and unde rgo full technical rehabilitation within 2 years.  The companies 
"Saktransgazmretsvi" and "Saktkhevadgazi" would rema in temporarily in State hands;  the decision to 
privatize "Saktkhevadgazi" would be taken in agreem ent with the Ministry of  Energy and Fuel.  The 
State company "Saknavtobi", engaged in oil extrac tion, would be restructured, transformed into a 
joint-stock company (except for its joint-ventures with foreign companies), and all shares, except 
those granted free of charge to employees, would temporarily remain State property.  Joint-stock 
companies engaged in the supply of oil products would have the controlling block of shares sold 
gradually by tenders, and the remaining 49 per cent w ould be auctioned.  Privatization of the energy 
sector was envisaged to be completed in 18 months.  Some 76 per cent of the shares of "Telasi" (the electric energy distribution network of Tbilisi) had already been privatized. 
22. The representative of Georgia estimated that pr ivatized and private enterprises accounted for 
approximately 80 per cent of Georgia's GDP.  Info rmation on the portion of Georgia's foreign trade 
accounted for by government-owned firms was not available at present.  Georgia expected to 
conclude its privatization process by 2000.  Parliament had approved a new Law on the 
Administration and Disposal of State-owned Non-Agricultural Land, and a large number of 
individuals and enterprises were in the process of purchasing land they had previously rented. 
23. The representative of Georgia confirmed that his Government would provide annual reports 
to WTO Members on developments in its programme  of privatization as long as the programme of 
privatization would be in existence along the lines of the information provided to the Working 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
 
24. The representative of Georgia said that the Cabinet of Ministers had adopted a series of 
Resolutions in the first four months of 1992, le ading 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 soci al services.  Price controls had been replaced by 
tariff regulation of local governments or, in the case of electricity and natural gas, by independent 
departments 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 a ll other goods and services were determined freely by 
the market. 
Competition Policy
 
25. The representative of Georgia said that the fi rst steps to implement an anti-monopoly policy 
in Georgia had been taken in September 1992, wh en the State Council had adopted a Decree “On the 
Restriction of Monopoly Activities and the Develo pment of Competition in Georgia” and an Anti-
monopoly Policy Department had been established with in the Ministry of Economy.  Aware of the 
possibility that privatization of State monopolies a nd mergers could lead to new private monopolies, 
the Government had decided to strengthen competiti on legislation further and Parliament had adopted 
the Law "On Monopolistic Activity and Competition" in June 1996. 
26. Georgia had established the legislative basis for competitive markets, in particular by 
deregulating prices and rescinding exclusive rights pr eviously granted to certain economic agents, and 
through the abolition of restrictions on competiti on in certain activities.  The new Anti-monopoly Law 
required the establishment of a State register of natural monopolies.  According to this register, 
natural monopolies existed in the provision of pos tal services, distribution of frequency spectrum, 
railway transport, pipe line services (the State Co mpany "Sakgazi"), high-voltage power transmission WT/ACC/SPEC/GEO/7 
Page 6  
 
 (the State Company "Sakenergo"), air traffic cont rol and dispatcher services (the State Company 
"Sakaeronavigatsia"), and in port services (the  sea ports of Poti, Batumi and Sukhumi). 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES Powers of Executive, Legislative and Judicial Branches of Government
 
27. The representative of Georgia said that the ac tivities and scope of competence of executive, 
legislative and judicial authorities were regulated by the Constitution of Georgia, the Law “On 
Judicial System in the Republic of Georgia” of  28 December 1990, the Law "On Constitutional Court 
of Georgia" of 31 January 1996,  the Law "On Constitutional Jurisprudence" of 21 March 1996, the 
Law "On Structure of Executive Power and Rule of  its Activities" of 13 June 1997, and the organic 
Law "On General Courts". 
28. 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 th e State, and ensured the functioning of governmental 
authorities in accordance with the Constitution.  Th e President exercised executive power himself as 
well as through ministries and other governmental au thorities and institutions.  The State Chancellery 
was headed by the State Minister.  The Governme nt was a consultative body of the President of 
Georgia, and consisted of the State Minister and [20] 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 Mini stries of Economy, Foreign Affairs, Trade and 
Foreign Economic Relations, and Finance.  Th e President had created coordination bodies and 
advisory and consultative institutions to regul ate relations among the entities of executive power. 
29. 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 dete rmined 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. 
30. 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 
Constitutional Court" of 31 January 1996, th e Law "On Constitutional Jurisprudence" of 
21 March 1996, the Law "On Judicial System in  the Republic of Georgia" and the Law "On 
Arbitration Court in the Republic of Georgia" of 23 April 1991.  The Constitu tional Court ensured the 
primacy of the Georgian Constitution, constit utional legacy, and the protection of human 
constitutional rights and freedom.  The Supreme Court of Georgia supervised the implementation of 
justice in law courts and considered cases determined by law by first instance.  The Supreme Courts of the Abkhazian and Ajarian Autonomous Republi cs were the highest judicial bodies in these 
autonomous regions.  The City Court of Tbilisi consid ered cases by first instance within the limits of 
its powers and supervised the activities of region al 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 arbitr ation court system had been abolished with the 
entry into force of the current Constitution of Georgia.  Decisions or actions of customs bodies and their officials 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. 
31. 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 judici ary for traders contesting administrative rulings by  WT/ACC/SPEC/GEO/7 
 Page 7 
 
 
 executive agencies such as in the area of customs valuation, classification and duty, taxation of 
imports, standards and sanitary certification and insp ection, application for import or export licences, 
measures taken against dumping and subsidized imports, and intellectual property protection. 
32. The representative of Georgia replied that pe rsons engaged in commercial activities could 
contest decisions by applying to the Court of First Instance in accordance with Article XI of the Civil 
Procedure Code.  The Decisions of the Court of Firs t Instance could be appealed to appellate courts.  
He added that, although the right of appeal was ment ioned in specific laws and regulations (such as in 
regulations on customs valuation and rules of origin), Parliament wa s considering a general 
Administrative Procedure Act, providing for a gene ral right of appeal of administrative decisions, 
including in the areas of business licensing, export and import licensing decisions, etc.  Parliamentary 
approval of the new Act was expected in Spring 1999. 
33. Parliament was responsible for ratification of international treaties, while the President of 
Georgia and the other executive authorities were r esponsible for implementation.  Parliament adopted 
a resolution on accession to an international treaty by simple majority of its entire composition.  Ratification by Parliament was required to co mplete 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 whic h addressed the responsibilities of various 
government institutions in fulfilling Georgia's obligations vis-à-vis the WTO. 
34. 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 Parliame nt 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 and 
Article 20 of the Law "On Normative Acts".  Laws , regulations and administ rative orders could be 
applied retroactively, but normative acts establis hing or approving responsibilities could not be 
applied retroactively. 
Authority of Sub-Central Governments
 
35. The representative of Georgia said that the prin ciples of coordination between the executive, 
legislative and judicial authorities were determined  by the Law “On Rules of Structure and Activities 
of Executive Authority” of 8 December 1995.  Interim regulations “On Local Administrative 
Authorities in the Republic of Georgia”, established by Decree No. 362 of the Head of State of 
Georgia of 16 September 1995, regulated the establishm ent of local authorities and the scope of their 
competence, their activities and relations with St ate authority and administration bodies, branch 
services, enterprises, institutions and organizations.  State policy in the sphere of local administration 
was determined by Regulations of the Coordina tion Service of local administration and regional 
policy, adopted by Presidential Decree No. 107 of 6 January 1996.  The service of local 
administration and regional policy was a State service accountable to the President of Georgia 
according to Presidential Decree No. 105 of 14 February 1997. 
36. Local representative organs could levy local ta xes and fees.  Local taxes and fees were listed 
in the Law of Georgia "On Principles of Taxatio n System".  He added that in accordance with 
Article 3 of the Constitution, Georgia's supreme national bodies had exclusive power to administer 
important trade-related areas, including customs, ta riff regimes and foreign trade;  standards and 
measurements, and sanitary measures at the border;  State finances and loans, minting of money and 
legislation on banking, credit, insurance and tax es;  legislation on intellectual property;  and 
legislation on trade, criminal law, civil law, and administrative and labour law.  The autonomous 
regions of Abkhazia and Ajaria were included in the customs territory of Georgia, but due to the WT/ACC/SPEC/GEO/7 
Page 8  
 
 existing political situation in the autonomous repub lic of Abkhazia this region was not de facto under 
the jurisdiction of the Central Government at pr esent, and the local authorities did not apply the 
national customs tariff and other taxes.  Negotiations  aimed at enforcement of national legislation in 
the former South Ossetian Au tonomous Region were ongoing. 
37. The representative of Georgia confirmed that  Georgia would apply the WTO provisions, 
including Georgia’s Protocol of Accession, uni formly throughout the entire customs territory 
controlled by the Georgian Central Government .  He further confirmed that, upon accession to the 
WTO, Georgian Central Authorities would ensure th at the laws, regulations and other measures of 
government entities at the sub-national level would conform to the obligations undertaken in its 
Protocol of Accession and the WTO Agreement, a nd would enforce them at the sub-national level 
controlled by the Central Government. 
POLICIES AFFECTING TRADE IN GOODS Trading Rights
 
38. The representative of Georgia said that all na tural 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 and with the State Department for Statistics.  
Parliament was considering [February 1999] a new draft law on business licensing.  The [draft] law 
restricted the authority of Ministries to control business activity through licensing to circumstances 
involving safety, consumer protection, environmental protection, or national security issues.  The law 
would apply equally to domestic and fo reign-owned enterprises in Georgia. 
39. The representative of Georgia confirmed that the former State monopoly in foreign trade had 
been abolished and that no restrictions existed on th e right of individuals and enterprises to import and 
export goods into Georgia's customs territory, excep t as provided in WTO Agreements.  He confirmed 
that 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. 
40. 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 c onformity 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 oblig ations.  [The Working Party took note of this 
commitment.] 
[Market Access Negotiations
 
Georgia presented its initial offer on goods in February 1998 (documen t WT/ACC/SPEC/GEO/4).  
Revised offers on goods have been circulated in April 1998, September 1998 and December 1998 
(document WT/ACC/SPEC/GEO/4/Rev.3).  An electr onic copy of Georgia's current HS tariff is 
available for consultation in the WTO Secretariat.  According to Georgian estimates, the average 
weighted tariff in the initial offer equals 6.74 pe r cent (9.22 per cent for agricultural products and 
5.38 per cent for manufactures).]  WT/ACC/SPEC/GEO/7 
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 A. Import Regulation  
Ordinary customs duties  
41. The representative of Georgia said that custom s duties were established according to the Law 
"On Customs Tariff and Duty" of 20 March 1998.   Section III of the new Customs Code of 
14 November 1997 also contained provisions re garding customs duties.  Article 6 of Law 
No. 1316-IIs "On Customs Tariff and Duty" of 20 Ma rch 1998 authorized the use of special tariffs 
and seasonal tariffs – for a period not exceeding six mont hs in a year – to regulate trade in goods with 
particular variations in producti on or consumption.  [The products  subject to seasonal rates and the 
corresponding seasons had not yet been stipulated in Georgia's legislation.] 
42. Georgia was using the 1996 version of the 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 61 million Lari, collected on imports 
worth some 1.2 billion Lari (US$ 930 million) in  1997, and 209.2 million Lari on imports worth 
US$ 1,048.6 million in 1998. 
[Customs tariffs were levied at the rate of zero,  5 per cent or 12 per cent.  All customs duties were 
ad valorem  rates, except for specific duties on certain types of cigarettes (until 1 September 1997).  
Most imports were taxable at 12 per cent, while  the 5 per cent rate was applied to imported 
pharmaceuticals;  capital goods, including spare part s and supplementary equipment;  and specific 
goods used in production (listed in document WT/ACC/GEO/3, page 24) .  The average trade-
weighted tariff amounted to 5.1 per cent in 1997.] 
Other duties and charges levied on imports but not on domestic production  
43. The representative of Georgia confirmed that, other than ordinary customs duties, Georgia 
levied no duties and charges on imports in the sense of Article II:1(b) of the GATT 1994.  The Law "On Customs Tariff and Duty" of 20 March 1998 envisaged the imposition of seasonal or special 
duties, however, Georgia had never used th ese types of customs duties in practice. 
Tariff rate quotas, tariff exemptions
 
44. The representative of Georgia said that tariff ex emptions were authorized in accordance with 
the Law "On Customs Tariff and Duty" of 20 Marc h 1998 (Article 19) 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 Cu stoms Department);  (iii) goods in 
transit;  (iv) imported goods placed in custom s warehouses (dutiable upon withdrawal from the 
warehouse or under the terms of other customs regim es);  (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 the Mi nistry of Finance);  (vii) goods designated for 
official and personal use by foreign diplomatic a nd 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-fi nished 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 list defined by Resolution of the Parliament of 
Georgia No. 273-II of 13 June 1996; (xi) imports of  wheat, baby food and baby hygiene products as 
well as diabetic products;  (xii) imports of Georgian classical lite rature and literary, artistic or 
scientific works of Georgian citizens published ab road; (xiii) imported pharmaceutical products 
(16 products in accordance with a list approved by the Ministry of Finance, the Ministry of Health and WT/ACC/SPEC/GEO/7 
Page 10  
 
 the Ministry of Food and Agriculture, enumerat ed in document WT/ACC/GEO/4, page 20);  and 
(xiv) aviation fuel, lubricants and other combus tibles in accordance with international aviation 
regulations. 
45. 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
 
46. The representative of Georgia said that fees for services rendered were established by 
Resolution No. 333 of 27 April 1993 of the Cabinet of  Ministers and Decree No. 409 of the President 
of Georgia of 24 June 1996.  These regulations woul d be superseded by a new Law on Customs Fees.  
Charges for veterinary border services were estab lished in accordance with Article 37 of the 
Veterinary Law.  Fees ranged from 70-120 Lari pe r 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 exampl e on animal cargoes on suspicion of disease or for 
violation of transportation rules.  A charge fo r quarantine services was imposed on cargo held in 
quarantine, including fumigation and storage. 
47. A customs declaration fee equal to 0.3 per cent of the customs value was applied to all kinds 
of goods. 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 would revise its legislation to bring the customs de claration fee into conformity with Article VIII.  
The ad valorem  rate would be reduced to 0.2 per cent on 1 April 1999, and reduced further to 
0.15 per cent upon accession to the WTO.  His aut horities were considering the establishment of 
specific minimum and maximum levels of the fee. 
Application of internal taxes to imports
 
48. The representative of Georgia said that caviar,  alcoholic beverages, tobacco and tobacco 
products, petrol, tyres, jewellery and motor vehicles were subject to excise tax  in Georgia.  The list of 
affected products and the respective tax rates are enumerated in Table 2.  Article 130 of the Tax Code 
stipulated the same tax rate for imported and dom estic products.  Excise taxes were applied at the 
border to imported goods at the moment of importa tion, 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 re sold in Georgia were not subject to additional excise tax.  The 
difference in taxation of petrol was maintained for ecological reasons. 
49. Some members noted that excise taxes on alc oholic beverages differed widely, and asked 
Georgia to explain the rationale for this tax stru cture, and identify the kind of wines and spirits 
produced domestically.  Georgia was requested to im plement an excise tax regime that would meet 
the criteria of Article III of the GATT, conforming to the principles outlined in recent dispute settlement panels clarifying the scope of national tr eatment obligations in the application of excise 
taxes.  The representative of Georgia replied that dr y, 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 beverages 
were not fully consistent with WTO rules.  The system of customs duties, excise tax and VAT applicable to imported alcoholic beverages had acco rdingly been reviewed during Summer 1998 with  WT/ACC/SPEC/GEO/7 
 Page 11 
 
 
 a view to reaching compliance with WTO requirement s.  Legislation equalizing excise tax rates for 
imported and domestically-produced goods ha d entered into force on 1 January 1999. 
50. Some Members also noted the differentiation in  taxation pertaining to tobacco and tobacco 
products.  The representative of Georgia said that  about 70 per cent of Georgia's production of 
cigarettes were of class 3 type, and 30 per cent ciga rettes of tax class 5.  His Government understood 
that the present system was not fully consistent with WTO rules.  The taxation of imported tobacco 
products had been reviewed in Summer 1998 to bring the taxes into full compliance with WTO 
requirements.  The excise tax di fferentiation for imported cigarettes would expire on 1 April 1999.  
The tax differentiation between high-quality and low-quality cigarettes was under review. 
51. Georgia introduced excise stamps for cigarettes and alcoholic beverages on 1 February 1999.  
Detailed regulations governing the administration of  the excise stamps had been elaborated. He 
confirmed that Georgia applied the excise stamps on tobacco and alcoholic beverages consistently to 
imported and domestic products  without discrimination against imported products. 
52. 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 produc ts, and the customs value, including import duty 
and excises, for imports.  Exempt from VAT (Artic le 101 of the Tax Code) were postage stamps 
(except for collection);  Georgian and foreig n currency (except for numismatic purposes) and 
securities;  valuables confiscated or with no known ow ner, and valuables inherited by the State;  gold 
to be transferred to the National Bank of Georgi a;  imported books and journals on science, art and 
fiction written by Georgian citizens;  school boo ks 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 disaster s, 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 loans (minimum 25 per cent grant element) by bilateral or multilateral 
international organizations;  medicines falling wi thin 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 th e extent required by relevant international 
agreements;  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 e xportation;  and goods intended for re-export, 
guaranteed by collateral. 
53. Some members considered the VAT exemption fo r 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 his Government  intended to abolish this provision and the issue 
would be discussed in Parliament during its Autumn  session in 1998.  Parliament would also examine 
a VAT exemption for religious items and construc tion materials currently only available to the 
Patriarchate of Georgia.  The Tax Code of Geor gia would be revised to ensure compliance with 
Article III of the GATT. 
54.  Concerning the taxation base for the imposition of excises and VAT, a member noted a 
provision in the tax code that the taxable transac tion be the customs value of the goods, but not less 
than the "wholesale market price, excluding the excise and VAT" (Article 125(2)).  In reply, the representative of Georgia noted that excise taxes on tobacco and alcoholic products were specific 
rather than ad valorem  rates.  He confirmed that the phrase "but not less than the wholesale market 
price" in the tax code would be deleted prior to accession, thus the basis for ad valorem  excise taxes WT/ACC/SPEC/GEO/7 
Page 12  
 
 on imported goods would be the customs value, determined in accordance with the Customs 
Valuation Agreement, plus the a pplicable tariff and other duties. 
55. The representative of Georgia said that Georgia applied the destination principle in VAT 
taxation as from 1 Septembe r 1997.  The VAT rate was accordingly identical for locally produced and 
imported products, including impor ted goods originating in other CIS countries (Article 124). 
Quantitative import restrictions, includin g prohibitions, quotas and licensing systems 
 
56. The representative of Georgia said that licences were required for importation of certain 
agricultural chemicals, wild animals and plants, me dicines, arms, explosives, nuclear materials and 
tobacco products (Table 3).  The licensing system w as maintained to protect public health, safety and 
the environment, and was not intended to restrict the quantity or value of imports.  Import permits 
were not required for food imports nor for impor ts from other CIS countries.  [He confirmed that 
imports form CIS and non-CIS countries were subject to equal treatment.] 
57. Licences were obtained from the Ministry of Tr ade and Foreign Economic Relations or the 
Ministry of Health Protection, with the consent of the relevant ministry or department.  Any person, 
firm or organization could apply for an import lic ence.  The decision to grant a licence should be 
taken within 5 working days from the date of re gistration of the application.  The licensing fee 
amounted to 60 Lari (around US$45), payable in advance.  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 anot her importer.  Asked to describe briefly the licence 
requirements for importation, production and sale of  tobacco products, he referred to Presidential 
Decree N 391 "On Activities Addressing Regulation of  Production, Import, Wholesale and Retail 
Trade in Tobacco Products in Georgia". 
Customs valuation
 
58. The representative of Georgia said that instructi ons 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 valuati on, 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 prod uct groups, including alcoholic beverages, wheat 
flour, oil margarine, butter, frozen fish, sugar, ju ices, tomato paste, cigar tobacco and jewellery 
products.  However, the minimum import price system was abolished in March 1998.  Asked 
specifically 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,  contained no reference to world market prices 
in the valuation rules established in its Article 10. 
59. Having reviewed Georgia's customs valuation le gislation, a member noted that Georgia had 
not implemented in full the Agreement on Implemen tation of Article VII of the General Agreement 
on Tariffs and Trade (the Customs Valuation Agreemen t).  According to this member, Georgia's laws 
and regulations failed to address the following criti cal areas:  (i) the provisions for assists/"goods and 
services" found in Article 8 and the Interpretativ e Notes in Annex I to the Customs Valuation 
Agreement did not appear to be fully implemente d;  (ii) the royalty provision and proceeds of 
subsequent resale, disposal or use provision of Ar ticle 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 Valuation 
Agreement, 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 qua ntifiable data and no  WT/ACC/SPEC/GEO/7 
 Page 13 
 
 
 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 in clude several prohibited methods of appraisement 
required by Article 7 of the Customs Valuation Agre ement, as well as the obligation to inform the 
importer in writing of the method of appraisement u sed by Customs;  (vii) the obligation to publish 
laws, regulations, etc. pursuant to Article 12 di d not appear to be implemented;  (viii) the 
Interpretative Notes in Annex I of the Customs Va luation 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 concessionair e had not been implemented;  (x) the Committee on 
Customs Valuation Decision 4.1 concerning the "Val uation of Carrier Media Bearing Software for 
Data Processing Equipment" had not been impl emented;  and (xi) the Committee on Customs 
Valuation "Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods" 
had not been implemented. 
60. In reply, the representative of Georgia sai d that the Law "On Customs Tariff and Duty" 
(1998) provided for customs valuation of goods b ased on internationally recognized practices.  New 
regulations had been prepared in accordance with  the new Law "On Customs Tariff and Duty" in 
close cooperation with the Institutional Reform  and Informal Sector (IRIS, USAID).  These 
regulations were in full compliance with the releva nt WTO Agreements.  [The draft regulations were 
submitted to the Secretariat in July 1998.]  The [draft] regulations [of 9 December 1998] had been 
revised to incorporate the contents of the Interp retative Notes to the WTO Valuation Agreement as 
well as the Decisions concerning the "Valuation of Carrier Media Bearing Software for Data 
Processing Equipment" and the "Decision on the Treatm ent of Interest Charges in the Customs Value 
of Imported Goods" [formal issuance is pending]. 
Other customs formalities  
61. The representative of Georgia said that the Custom s Code contained rules of origin.  Georgian 
legislation required indication of the country of  origin of goods for bot h imported and domestic 
products.  A certificate issued by the competent aut hority in the country of origin was necessary only 
for goods imported under preferential trade.  CIS co untries applied a uniform C-1 certificate, and had 
concluded an agreement on the general rul es of determining the country of origin. 
62. Detailed rules of origin had been laid dow n 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 livestoc k 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 establishe d cost ratios.  Mere storage and packaging, 
preparation, sorting, repackaging, simple asse mbly operations or mixi ng of goods (components) 
would not be considered sufficient processing. 
63. The representative of Georgia said that the ne w 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 and established by legislativ e acts (Article 12, paragraph 4).  New regulations 
on rules of origin had been prepared in clo se cooperation with IRIS (USAID) and would be 
promulgated by the Ministry of Finance.  Th ese regulations would be based on, and be fully 
consistent with, WTO requirements.  [The draft re gulations were submitted to the WTO Secretariat in 
July 1998;  formal issuance of the regulations has been delayed.] WT/ACC/SPEC/GEO/7 
Page 14  
 
 Preshipment inspection
 
64. The representative of Georgia said that Georgia had thus far not used preshipment inspection 
services and had no legal regulation on preshipment in spection.  However, having examined proposals 
to improve customs collection in Georgia, his Government had decided to impose a preshipment 
inspection requirement on exporters.  A tender to sel ect a contractor had been issued in early 1999, 
and the target date for implementation was 1 Apr il 1999.  The Agreement on Preshipment Inspection  
and the Report of the Working Party on Preshipment  Inspection (December 1997) had been translated 
into Georgian for use by the Ministry of Finance. 
65. 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 and the Agreement on the 
Implementation of Article VII of the GATT 1994. 
Anti-dumping, countervailing duties, safeguard regimes  
66. The representative of Georgia said that Articles 10-13 of the Decree of the Council of State 
"On Customs Tariff" of 21 October 1992  contai ned provisions on the imposition of anti-dumping and 
countervailing duties.  The level of anti-dumping or  countervailing duty would be determined by the 
Customs-Tariff Council of the Government, followi ng investigation and economic analysis carried 
out by the Ministry of Economy in collaboration with the Customs Department, the Ministry of Industry and the State Department for Statistics.  However, this legislation had never been used. 
67. He added that existing legislation would be replaced by provisions in the new Law "On 
Foreign Trade" which would provide the legal basis,  in principle, for the imposition of special duties 
in connection with anti-dumping, countervailing or  safeguard measures.  However, the law would 
stipulate that measures could be taken only after im plementing regulations consis tent with the relevant 
WTO Agreements had been promulgated. 
68. The representative of Georgia said that Georgia would not apply any anti-dumping, 
countervailing or safeguard measure until it had implemented appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI, on Subsidies and 
Countervailing Measures, and on Safeguards.  In th e elaboration of any legislation concerning anti-
dumping duties, countervailing duties and safeguards,  Georgia would ensure their full conformity 
with the relevant WTO provisions, including Article VI and XIX of the GATT 1994 and the 
Agreement on the Implementation of Article VI , the Agreement on Subsidies and Countervailing 
Measures and the Agreement on Safeguards.  After su ch legislation was implemented, Georgia would 
only apply any anti-dumping duties, countervailing du ties and safeguard measures in full conformity 
with the relevant WTO provisions.  [The Wo rking Party took note of these commitments.] 
B. Export Regulations
 
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports  
69. The representative of Georgia said that all expor ting 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. 
70. As a general rule, Georgia did not apply cust oms duties on exports as exported or re-exported 
goods were exempt from customs duties.  As of 1 September 1997, when the new Tax Code entered 
into force, Georgia imposed VAT according to the destination principle and all exports, including to  WT/ACC/SPEC/GEO/7 
 Page 15 
 
 
 CIS countries, were zero rated.  The regional customs offices performed customs clearance on all 
export cargoes, and charged an ad valorem  fee of 0.3 per cent of the customs value of the cleared 
goods. 
71. Effective 1 July 1998, exports of scrap metal became subject to special duty in accordance 
with the Law on Regulation of Export and Re-ex port of Scrap and Waste of Black and Coloured 
Metals.  The special duty has been set at 475 Lari per ton for copper, 320 Lari per ton of aluminium, 
and 28 Lari per ton of other metal scrap. 
Export restrictions  
72. The representative of Georgia said that Georgia maintained some export prohibitions or 
restrictions to protect public health, consumer welfare, the national environment, the national 
patrimony and national security.  The prohibitions or restrictions were applied equally to exports to all 
countries.  Exportation of arms and gunpowder,  artwork and antiques of museum value was 
prohibited.  The items subject to export prohibition or  licensing are enumerated in Table 4.  Exports of 
timber (logs) were licensed to ensure the ecological balance in Georgia's forests and optimal use of 
forestry resources in accordance with Law No. 1469 -IIs "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. 
73. Export licences were issued by the Ministry of  Trade and Foreign Economic Relations, except 
for medicines and medical supplies (Ministry of H ealth 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 y ear.  The validity of a licence could be extended 
upon request.  A licence could not be transferred to another exporter.  The licensing fee amounted to 
60 Lari for exports to all countries. 
74. 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 th em into conformity with WTO provisions prior to 
accession, or according to a time-table agreed with  WTO Members.  In reply, the representative of 
Georgia said that a prohibition on export of scrap meta l had been lifted in June  1998, and replaced by  
licensing and payment of special duty.  A special li censing 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 conf ormity with the requirements of the State Forest 
Department. 
Export subsidies
 
75. The representative of Georgia said that Georgia ma intained no export subsidies.  Other than 
ordinary bank loans, no official or other export financing facilities were available for exporters. 
76. Imported raw materials and semi -manufactured goods used in the production of goods for 
export were exempt from customs duties accord ing to Law No. 1316-IIs "On Customs Tariff and 
Duty" of 20 March 1998.  Raw materials and semi -finished goods imported under the existing import 
duty drawback scheme were physically incorporated  in the exported goods.  Import duty was paid at 
the time of importation and subsequently refu nded upon exportation of the processed goods.  
Alternatively, the manufacturer could provide a bank guarantee for the amount of duty due.  Imported 
inputs used in exported goods were 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. WT/ACC/SPEC/GEO/7 
Page 16  
 
 C. Internal Policies Affecting Foreign Trade in Goods
 
Industrial policy, including subsidies  
77. The representative of Georgia said that the general objective of Georgia's economic policies 
was to create a market economy through privati zation of publicly-owned commercial enterprises, 
deregulation of prices and foreign investment.  St ate-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 en ergy supplies.  He identified the 12 largest loss-
making State enterprises to be the Rustavi's "Azo ti", the electromechanical factory at Kutaisi, 
Rustavi's "Kimbochko", the joint-stock company "Maudi ", 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 privatizati on had proved difficult. 
78. The representative of Georgia confirmed that Georgia did not maintain subsidies including 
export subsidies which met the definition of a prohib ited subsidy, within the meaning of Article 3 of 
the Agreement on Subsidies and Countervailing Measures and that it would not introduce such 
prohibited subsidies in the future. 
79. The representative of Georgia confirmed that any subsidy programmes would be administered 
in line with the Agreement on Subsidies and Countervailing Measures and that all necessary 
information on programmes to be notified, if su ch exist, would be provided to the Committee on 
Subsidies and Countervailing Measures in accordan ce with Article 25 of the Agreement upon entry 
into force of Georgia's Protocol of Accession.  [T he Working Party took note of this commitment.] 
Technical barriers to trade, sanitary and phytosanitary measures  
Standards and certification  
80. The representative of Georgia said that the Laws  "On Standardization" and "On Certification 
of Products and Services" constituted the basic le gal framework for activities in this area.  The 
Ministries of Construction and Urbanisation, Pr otection 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 Certificati on ("Sakstandarti") was the national body of 
standardization, metrology and certification in Geor gia.  "Sakstandarti" operated centres 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 memb er of the Interstate Council of Western Countries 
for Standardization, Metrology and Certification,  and had become a correspondent member of the 
International Organization for Sta ndardization (ISO) on 1 January 1998. 
81. Mandatory intergovernmental (GOST) standards of the CIS countries were used widely in 
Georgia, but Georgia intended to m ove gradually from the use of old State standards to the use of new 
international standards for food products;  environmental protecti on;  and labour, consumer and 
industrial product safety.  The timetable for this  conversion depended on funding of work in the 
sphere of standardization. 
82. Georgia required a certificate of conformity i ssued by "Sakstandarti" and, depending on the 
product, a hygienic certificate from the Ministry of  Health Protection.  A list of imported products 
subject to mandatory certification is provided in Ta ble 5.  He added that Georgian standards and 
certification requirements were not intended to distort trade or establish technical barriers to trade.   WT/ACC/SPEC/GEO/7 
 Page 17 
 
 
 Domestically-produced and imported goods, regardl ess of country of origin, complied with the same 
requirements on standards and certification.  "Sakstandarti" had introduced a system of certification and documentation to eliminate technical obstacl es in trade.  Georgia would recognize product 
certificates of third countries provided the pro ducts were imported through a country with a 
certification system recognized by Georgia.  The Mi nistries of Health Protection and Agriculture and 
Food were actively involved in the certification proce dure, 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 "O n Protection of Consumers' Rights" (Chapter 1, 
Article 6).  The Ministry of Protection of Envir onment and Natural Resources and the State Inspection 
for Technical Supervision were involved in certif ication 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 de partments with the assistance of "Sakstandarti". 
83. Some members noted that Georgia's legislation and practices in the area of standards did not 
meet the requirements of the Agreement on Tec hnical 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 dom estic 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 national post-market surveillance system;  and the repl acement of mandatory standards with voluntary 
standards.  Georgia should outline the specific defici encies 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 ce rtificate of conformity requirements were not 
related to the establishment of additional barriers to trade. 
84. The representative of Georgia replied that "S akstandarti" 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 Agre ement.  A Presidential Decree "On Measures 
Implementing the Requirements of the WTO Agreem ent on Technical Barriers to Trade" had been 
adopted on 5 December 1998.  This Decree contai ned a detailed action pl an and time-frame for 
implementation by the relevant authorities.  The TBT enquiry point had been established under 
"Sakstandarti", and work was going on to bring this  enquiry point into full compliance with the TBT 
Agreement.  "Sakstandarti" had also establis hed a publishing house ("Standarti") which issued 
information bulletins, standard catalogues and other materials related to standardization, metrology 
and certification.  "Sakstandarti" thus provided pu blication of draft standards and other measures for 
prior comment. 
Sanitary and phytosanitary measures
 
85. The representative of Georgia said that Georgia had revised its quarantine requirements and 
adopted new legislation including the Law "On Prot ection of Plants from Harmful Organisms" of 
14 October 1994, the Law "On Agricultural Quarantin e" of 15 May 1997, and a new Veterinary Law 
reflecting the standards established by the Office In ternational des Epizooties (OIE).  The new Law 
"On Foreign Trade" also required sanitary and phytosanitary measures to conform with the 
Agreement on the Application of Sanitary and Phyt osanitary Measures (the SPS Agreement).  A new 
law on phytosanitary controls refl ecting international standards established by the European Plant 
Protection Organization had been  submitted to Parliament. WT/ACC/SPEC/GEO/7 
Page 18  
 
 86. Concerning relations with relevant internati onal organizations, he said that Georgia had 
applied for membership in the joint FAO/WH O Food Standards Programme-Codex Alimentarius 
Commission on 17 October 1997.  Georgia also intende d to join the International Convention on Plant 
Protection and the European and Mediterranean International Plant Protection Organization.  
Georgia's Veterinary Department received in formation from the Office International des 
Epizooties (OIE) concerning diseases existing in vari ous countries in the world and assessed the risks 
regarding dangerous infectious diseases on the basis of this information. 
87. The representative of Georgia stated that Georgi a's sanitary and phytosanitary standards were 
intended solely for the purpose of protecting the hea lth of human, animal and plant life, and not to 
create technical barriers to trade or to protect domestic producers.  Compliance with Georgia's 
regulations was determined by the State Sanita ry 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 Vete rinary, Sanitary and Phytosanitary Service. 
88. The State Border Veterinary Supervision Inspec tion checked all imports of live animals, meat 
and fish, animal and fish products, animal fodder a nd feed supplements and veterinary preparations.  
A licence from the State Inspection of Plant Quar antine was required for importation, re-export or 
transit of goods covered by plant quarantine re gulations.  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 cultur es;  collections of insects, which could bring 
plant diseases;  herbaria and seed collections;  agricultural machinery, aggregates for land 
development, vehicles, vessels, packaging material s and industrial plants;  and soil samples which 
could carry plant diseases.  Preshipment inspection, l eading to an international veterinary certificate, 
should be carried out where appropriate.  Importati on of commodities of plant origin and other items 
subject to quarantine required a phytosanitary cer tificate issued by the quarantine service of the 
exporting country as well as a certificate on the condi tion of the commodity delivered by the relevant 
division of Georgia's Ministry of Food and Agri culture (Article 8 of the Law on Agricultural 
Quarantine).  Infested or infected  shipments which could not be disinfected would be returned to the 
country of origin or destroyed with the owner' s consent.  The representative of Georgia provided 
detailed information on procedures followed in im plementing Georgia's sanitary and phytosanitary 
regime, requirements for imported animal and plan t products, and a list of all quarantine pests in 
document WT/ACC/GEO/4, pages 99-110. 
89. Some members noted that Georgia's legi slation and practices covering SPS measures 
appeared not to meet the requirements of the SPS Ag reement.  Georgia was asked to provide further 
information on ongoing efforts to bring its SPS legisl ation into conformity with the SPS Agreement, 
including additional steps to be taken, a time-fra me for implementation, and details on any problems 
Georgia might have with implementation of the SPS Agreement upon accession.  A member sought a 
commitment from Georgia to abide by the requireme nts 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. 
90. The representative of Georgia replied that Ge orgia 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 th e 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 In terministerial Coordinating Body for SPS 
Implementation (ICB) had been formed and Georgi a had also established the SPS enquiry point, as  WT/ACC/SPEC/GEO/7 
 Page 19 
 
 
 required by the WTO.  The Interministerial Coordinating Body was chaired by the Deputy Minister of 
Agriculture responsible for international issu es, and included a working-level body with 
representation from each agency concerned.  The enquiry point had been fully operational as of 
July 1998. 
Trade-related investment measures  
91. The representative of Georgia stated that Geor gia maintained no measures inconsistent with 
the Agreement on Trade-Related Investment Measur es (TRIMs) at present, and Georgia was ready to 
undertake the obligations of the TR IMs Agreement upon accession to the WTO. 
92. The representative of Georgia said that Georgia would not maintain any measures 
inconsistent with the TRIMs Agreement and woul d apply the TRIMs Agreement from the date of 
accession without recourse to any transitional peri od.  [The Working Party took note of this 
commitment.] 
State-trading entities  
93. The representative of Georgia said that all public sector monopolies for the supply of goods 
and services had been eliminated, and there were no  parastatal or government -mandated private sector 
monopolies in Georgia.  Remaining State-owne d enterprises had no access to preferential State 
funding, and acted purely on the basis of commercia l 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 authorized any other firm , to purchase domestic and/or imported agricultural 
products for export or domestic distribution.  Ac cordingly, Georgia maintained no State-trading 
enterprises as defined by GATT Article XVII an d the Understanding on the Interpretation of 
Article XVII of the GATT 1994. 
94. The representative of Georgia confirmed that his Government would apply its laws and 
regulations governing the trading activities of St ate-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 U nderstanding on that Article and Article VIII of 
the GATS.  He further confirmed that Georgia woul d notify any enterprise falling within the scope of 
Article XVII.  [The Working Party took note of these commitments.] 
Free zones, special economic areas  
95. The representative of Georgia said that his Government planned to establish free economic 
zones in Poti and Batumi following the adoption of th e appropriate legal basis for the creation of such 
zones.  However, Parliament had reject ed the draft law on free economic zones. 
Government procurement  
96. The representative of Georgia said that government 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, the 
Ministry of Internal Affairs, and the State Depa rtment of State Border Protection.  Government 
procurement was carried out in a non-discriminator y manner between domestic and foreign suppliers, 
except for procurement of certain types of goods fo r the armed forces, in which case the participation WT/ACC/SPEC/GEO/7 
Page 20  
 
 of foreign companies was restricted.  No statisti cal data was collected on government procurement in 
Georgia. 
97. Parliament had adopted a new law on govern ment procurement based on the UNCITRAL 
model law, and prepared in close cooperation w ith 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. 
98. The representative of Georgia said that Georgia intended to join the Agreement on 
Government Procurement.  Some members were ve ry pleased to note this and requested Georgia to 
submit an entity list to initiate the negotiations w ithin three months of Georgia's accession to the 
WTO, with the understanding that negotiations w ould be completed within one year after that. 
99. The representative of Georgia confirmed th at Georgia will initiate negotiations for 
membership in the Agreement on Gove rnment by [date] by tabling an entity offer.  He also confirmed 
that, if the results are satisfactory to Georgia a nd the other members of the Agreement, Georgia will 
complete negotiations for membership in the Agreem ent by [date].  [The Working Party took note of 
this commitment.] 
Transit
 
100. The representative of Georgia said that goods tr ansported through the territory of Georgia 
were exempt from customs duty, VAT and excise taxes. 
101. [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  
[Information on domestic support and export subsidies in agriculture was circulated in document 
WT/ACC/SPEC/GEO/2 on 28 November 1997.  Geor gia has provided additi onal information on 
domestic support and export subsidies in documen t WT/ACC/SPEC/GEO/2/Add.1 of 10 June 1998, 
and document WT/ACC/SPEC/GEO/2/Add.2 of 6 October 1998.] 
102. The representative of Georgia said that imports of  agricultural  products were subject to tariffs 
(zero, 5 or 12 per cent) and sanitary and phytosan itary measures.  No other border measures were 
applied to agricultural goods.  There was no special  export regime applicable to agricultural goods, no 
export credits other than those available from co mmercial banks, and no system of export credit 
guarantees or insurance cover arranged by the Government. 
103. Concerning internal policies, he said that his Government was coope rating with multilateral 
and bilateral organizations to transform the collectiv e 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, an d the development of research, education and 
extension services.  With the assistance of European Communities counterpart funds (CPF), the 
Government provided - through the commercial ba nking system - short term working capital to 
traditional suppliers of inputs of fertilizers, seeds,  and energy products, as well as to grain producers 
and traders.  The Government did not engage in agricultural subsidies through price support, direct 
payments to farmers or in subsidized credit ar rangements, other than to grape producers.  No 
budgetary resources were available to assist the re sidual State farms sector.  The Government did not 
provide any export subsidies.  WT/ACC/SPEC/GEO/7 
 Page 21 
 
 
 104. The representative of Georgia confirmed that Georgia would bind its agricultural export 
subsidies at zero. 
[to be completed] Trade in civil aircraft
 
105. The representative of Georgia said that Geor gia maintained a duty-free regime for the 
importation of aircraft parts and other supporting e quipment used in international transportation.  
Georgia intended to join the Agreement on Tr ade in Civil Aircraft upon accession to the WTO. 
106. The representative of Georgia [said that Georgi a would implement the Agreement on Trade in 
Civil Aircraft without exceptions or transitional pe riod at the time of accession.  The representative of 
Georgia] confirmed that Georgia would become a signatory to the Agreement on Trade in Civil 
Aircraft upon accession to the WTO[, however, Georgi a was requesting a five-year staging period for 
full implementation of the Agreement].  [The Working Party took note of this commitment.] 
Textiles regime  
107. A member asked whether Georgia would notify an y quantitative restrictions on its exports of 
textiles to the Textiles Monitoring Board. 
108. The representative of Georgia said that Geor gia did not maintain any quantitative import 
restrictions on textile and clothing products.  Ac cording to an Agreement with the European 
Communities (1993), Georgia's exports of textile an d clothing (HS Chapters 50 to 63) could become 
subject to quantitative restrictions in the Eur opean Communities' market if the exported volume 
exceeded 0.35 to 4 per cent, depend ing on the product, of total Community imports in the previous 
year.  The Agreement also contained provisions agains t Georgian exports of tex tile products at prices 
"…abnormally lower than the normal competitive leve l".  However, these provisions had never been 
invoked, and the quantitative limits had not been applied. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME General
 
Industrial property protection  
109. The representative of Georgia said that the prot ection of intellectual property rights was an 
essential element of Georgia's economic policy.  Intell ectual 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 leadi ng multilateral treaties in this field, including the 
Agreement on Trade-Related Aspects of Intellect ual Property Rights (the TRIPS Agreement), the 
Paris Convention for the Protection of Industrial Pr operty and the Berne Convention for the Protection 
of Literary and Artistic Works. 
Responsible agencies for policy formulation and implementation  
110. The representative of Georgia said that Georgian National Intellectual Property Center 
(Sakpatenti) was responsible for matters involving  industrial property (inventions, utility models, 
industrial designs, trade marks, service marks), and would also become also responsible for matters 
involving appellations of origin and layout designs of  integrated circuits.  The Copyright Agency dealt 
with matters involving copyrights and neighbouri ng rights, and the Ministry of Agriculture was 
responsible for matters involving plant variety protection. WT/ACC/SPEC/GEO/7 
Page 22  
 
 Participation in international  intellectual property agreements
 
111. The representative of Georgia said that Georgia was a member of WIPO and a party to the 
Paris Convention for the Protection of Industrial Pr operty (18 January 1994);  the Patent Cooperation 
Treaty (18 January 1994);   the Berne Convention fo r the Protection of Literary and Artistic Works 
(15 May 1995);  and the Protocol Relating to th e Madrid Agreement Concerning the International 
Registration of Marks (20 August 1998).  Georgi a intended to join the Rome Convention for the 
Protection of Performers, Producers of Phonogram s and Broadcasting Organizations (1961);  the 
Budapest Treaty on the International Recognitio n on the Deposit of Microorganisms for the Purposes 
of Patent Procedure;  and UPOV (Geneva Act, 19 91).  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 th e patent offices of Georgia and Austria.  Georgia had also 
concluded bilateral agreements with Kazakstan, the Russian Federation, Moldova, Belarus, and Italy 
on mutual protection of copyright and neighbouring rights. 
Application of national and MF N treatment to foreign nationals  
112. The representative of Georgia said that Georgia granted national treatment in accordance with 
the Paris Convention for the Protection of Industrial Property to nationals of signatory States of the 
Convention (Statute On Inventions, Statute On Industrial Designs, Statute On Trademarks) and 
national treatment for the protection of copyri ght under the Berne Convention.  According to 
Article 1018 of the Civil Code copyright was exte nded to works protected by those international 
agreements to which Georgia was a party.  Ge orgia would grant national and MFN treatment to 
Members of the WTO upon accession to the WTO. 
Fees and taxes  
113. The representative of Georgia provided informa tion on State fees for patenting inventions, 
utility models, industrial designs, and for regist ration 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 Pr ocedures for the Acquisition and Maintenance of 
Intellectual Property Rights  
Copyright and related rights  
114. The representative of Georgia said that Geor gia provided copyright protection under Book 4, 
section 1 of the Civil Code.  The provisions of the Civil Code on copyright would be supplemented by 
a new law on copyright and neighbouring rights [s ubmitted to Parliament for its Autumn 1998 
session, first hearing in Parliament in April 1999].  The Copyright Law of Georgia had been prepared 
on the basis of the WIPO model law. 
115. The Civil Code (Article 1017) protected the moral and economic rights of authors, and 
neighbouring rights connected with performer s, producers of phonograms and broadcasting 
organizations.  The rights of performers, producer s of phonograms and broadcasting organizations 
were defined in Articles 1056 to 1069.  Computer  program issues were regulated in Articles 1021, 
1038, 1044 and 1045.  Protection did not depend on an y 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, which should be read together w ith Articles 1039, 1040 and 1041, provided for the 
authors' rights concerning cinematographic adaptati on or reproduction envisaged in Article 14 of the  WT/ACC/SPEC/GEO/7 
 Page 23 
 
 
 Berne Convention.  The limitations and exceptions on  the rights of authors stipulated in Articles 1050 
through 1061 were confined to cases which did not c onflict with normal exploitation of the work and 
did not unreasonably prejudice the right holder's legitimate interests. 
116. Article 6.1(k) of the [draft] law on copyright  and neighbouring rights defined as objects of 
copyright:  (i) literary works (books, brochures, articles, computer programs, etc);  (ii) drama or 
musical-dramatic works, choreographic, mime, and ot her theatrical works;  (iii) musical works, with 
or without text;  (iv) audio-visual works (movies, television and video films, etc.);  (v) sculptures, paintings, and architectural, graphic, lithographic and other work of visual art;  (vi) pieces of decorative-applied and monumental art;  (vii) pi eces of theatrical-decorative art;  (viii) photographic 
works, and works created by means analogous to  photography;  (ix) maps, plans, sketches, 
illustrations and other three-dimensional works belonging to geography, photography or other 
sciences;  (x) derivative works (translations, interlin es of fictions, adaptations, reviews, dramatisation, 
compilation, musical arrangement, and other kinds of derivation of pieces of art);  and  (xi) collection of works or data, such as encyclopaedia, anthologies,  data bases, and other composite works, which, 
according to selection and disposition of materials, represented results of intellectual creative activity, 
and other works. 
117. The [draft] law on copyright and neighbouring rights included specific provisions on 
economic rights (Article 16), the rights of produc ers of phonograms (Article 39), the rights of 
producers of videograms (Article 40), the distribu tion of phonogram and vide ograms (Article 41), and 
the rights of broadcasting organizations (Article  42), as well as certain provisions which were not 
reflected in the Civil Code, for example on rent al 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)).  In these 
cases, the Civil Code would be amended following Parliament's adoption of the new law on copyright 
and neighbouring rights. 
118. A court could order confiscation of copies of counterfeit works and phonograms and the 
materials and equipment needed for their reproduc tion, 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 (Article 1098). 
Trademarks, including service marks
 
119. The representative of Georgia said that the existing legislation on trademarks - the Statute on 
Trademarks of 16 March 1992 – would be replaced  by a new Law "On Trademarks", adopted by 
Parliament on 5 February 1999 a nd entering into force in Summer 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 Impl ementation of the Agreement Concluded in the 
Framework of the Uruguay Round. 
120. The Law defined a trademark as a sign or a co mbination of signs which could be expressed 
graphically and was capable of distinguishing the goods and/or services of one enterprise from those 
of another.  A sign could be a word;  integrit y 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 combin ation 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. WT/ACC/SPEC/GEO/7 
Page 24  
 
 121. Protection of a trademark was acquired through registration with the Georgian National 
Intellectual Property Center "Sakpatenti".  The s ubstantive examination of a trademark should be 
effected within 8 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 be appealed before a court. 
122. Registration of a trademark did not depend on use, but a trademark registration could be 
cancelled after 5 years of continuous non-use in Ge orgia according to the Law.  Service marks were 
protected in the same way as trademarks, and Ge orgian 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 the Protection of Industrial Property (Article 6 bis) for the definition of a "well known" 
mark.  Specific criteria would be determined by the courts should such a case arise.  The requirement 
of Article 16.1 of the TRIPS Agreement that th e 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 th e protection to similar signs for similar products.  
Article 16.2 and 3 of the TRIPS Agreement were im plemented through Article 6.4 of the Trademark 
Law. 
123. A trademark certificate was valid for an initial te rm 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
 
124. Some members asked about the status of pr otection of geographical indications, including 
appellations of origin in Georgia, noting that the Statute of Trademarks was deficient in a number of 
areas 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 protection 
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 e xpressions such as "kind", "type", "style", etc;  
and refusal or invalidation, with certain exceptions , of trademark registrati ons containing geographical 
indications for wines and spirits if they did not originate in the place named. 
125. The representative of Georgia replied that geogra phical indications as such were not protected 
in Georgia.  However, the Georgian National Inte llectual Property Center had prepared a Law "On the 
Protection of Appellations of Origin and Geographi cal Indications" based on Articles 22 to 24 of the 
TRIPS Agreement and European Communities Counc il Regulation (EC) No. 2081/92 of 14 July 
1992.  The draft law had been submitted to mini stries and departments for comment, and their 
remarks were currently being reviewed.  Article 5.5 of the Trademark Law stipulated that a trademark 
should not be registered if identical or similar to  an appellation of origin or geographical indication 
protected in Georgia.  This provision cove red wines and spirits as well as other products. 
Industrial designs
 
126. The representative of Georgia said that industrial designs were protected by granting of a 
patent under the Statute on Industrial Designs of 16  March 1992.  The new patent law, adopted by 
Parliament on 5 February 1999, would regulate the pr otection of industrial designs in Georgia upon its 
entry into force in Summer 1999.  Applications for registration were filed with "Sakpatenti", which  WT/ACC/SPEC/GEO/7 
 Page 25 
 
 
 granted patents to industrial designs  considered novel, original and i ndustrially applicable.  The term 
of validity of the patent was 15 years from the date of filing of the application.  A licence agreement 
could be registered with "Sakpatenti".  Any pers on engaged in non-authorized use of an industrial 
design could be ordered to suspend its use and the ow ner of the patent could claim damages.  Neither 
the Statute on Industrial Designs nor the patent la w contained any special requirements regarding the 
protection of textile designs. 
Patents  
127. The representative of Georgia said that patents were regulated by the Statute on Inventions of 
16 March 1992, which would be replaced by a new Patent Law entering into force in Summer 1999.  
The Georgian National Intellectual Property Center "S akpatenti" 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. 
128. Patents would not be granted for surgical, ther apeutic and diagnostic methods of treatment of 
people and animals;  species of plants and animal s, and particular biological methods for breeding 
plants and animals;  or inventions which could provoke 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;  indus trial design and diagrams for 
planning of buildings, cons tructions and territories;  and presen tation of information would not be 
regarded as inventions. 
129. According to the Patent Law, the patent owner ha d the exclusive right to use or dispose of an 
invention at his discretion, to make a product protect ed by the patent, to place the object in commerce, 
and to derive income from its use.  The patent owne r could sell or otherwise al ienate 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 73) .  Importation satisfied the "use" requirement under 
Georgian law.  Disputes regarding the granting of compulsory licences, or partial or full annulment of 
a patent, could be subject to judicial review (Ar ticle 84).  The issue of shifting the burden of proof 
(Article 38 of the TRIPS Agreement) was a ddressed in Article 60 of the Patent Law. 
Plant variety protection  
130. 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 the 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
 
131. The representative of Georgia said that the Patent Office of Georgia was preparing a draft law 
on protection of layout designs of integrated circu its.  [The draft Law will be submitted to Parliament 
for its Autumn 1999 session.] 
Requirements on undisclosed information,  including trade secrets and test data  
132. The representative of Georgia said that the La w "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 proprieto r.  The Law did not, however, define the terms 
"trade-related information" or "commercial secrets"  precisely.  Commercial secrets were defined and 
protected by Article 1105 of the Civil Code.  Acco rding to a Presidential Decree of 24 January 1994 WT/ACC/SPEC/GEO/7 
Page 26  
 
 information regarded as State secrets included “i nformation on licences to be sold or purchased, 
technological processes, technical documentation on equipment models, purchases of foreign patents 
and technical documentation, licensing conditions of  specific domestic inventions, and scientific or 
technical achievements”. 
133. Georgia's law did not contain any express provi sion protecting test data for pharmaceuticals 
and agricultural chemicals, but relevant legislation w as expected to be prepared and enacted in 1999.  
Agricultural products were tested a nd 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 until 
registration.  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
 
134. The representative of Georgia said that the St ate Anti-monopoly Service was authorized to 
take measures against acts of unfair competition acco rding to Article 21 of the Law "On Monopolistic 
Activity and Competition".  The Service could initia te court proceedings, re questing 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  
135. The representative of Georgia said that the Code  of Civil Procedure, which would enter into 
force on 20 May 1999, stipulated that intellectual property cases was under the jurisdiction of circuit 
courts.  The judicial authorities could order a part y to desist from an infringement.  The Statute on 
Trademarks (Article 44) [Article 45.2 of the La w on Trademarks] allowed the holder of a trademark 
whose rights had been violated to file a civil suit requesting the defendant to cease the infringing 
activities, order destruction of all materials obtaining the registered trademark or copy, and to claim damages.  The infringer could also be fined or imprisoned.  Persons e ngaged in non-authorized 
manufacture of patented inventions were liable to payment of indemnity and a fine under the Statute 
of Inventions. 
Provisional measures
 
136. The representative of Georgia said that provisi onal measures were envisaged in the new Code 
of Criminal Procedure and the new Code of Civil Procedure. 
Administrative procedures and remedies  
137. The representative of Georgia said that the [draft] Code of Administrative Infringements 
contained provisions regarding inte ntional violation of copyright and patent rights (Article 218), and 
misappropriation of trademarks (Article 253). 
Special border measures  
138. The representative of Georgia said that the Statute on Trademarks provided for goods 
unlawfully bearing a trademark to be seized upon importation into Georgia at the request of the public 
prosecutor, any competent authority,  or any interested party.  Th e new Copyright Law would include 
provisions on special border measures in case of copyright infringement.  He noted that Georgia had never applied special border measures to seize impor ts of counterfeit or pirated goods.  The Customs  WT/ACC/SPEC/GEO/7 
 Page 27 
 
 
 Department was preparing regulations on special border measures against pi rated copyrighted works 
and counterfeit trademarked produc ts to conform with Articles 51-60 of the TRIPS Agreement. 
Criminal procedures  
139. The representative of Georgia said that a comm ission 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 intellect ual property rights (Article 172), restriction of 
monopolistic activities and competition (Article 199), misappropriation of trad emarks (Article 200), 
false advertising (Article 201) and illegal provision or distribu tion of information containing 
commercial or banking secrets (Article 202).  Pena lties ranged from a fine e qual to 300-1,000 times 
the minimum wage and up to two years' imprisonment. 
POLICIES AFFECTING TRADE IN SERVICES 
[Information on policy measures affecting trade in services was circulated in document 
WT/ACC/SPEC/GEO/1 of 27 November 1997.  Geor gia's initial commitments on trade in services 
were presented in February 1998 (document WT/ACC/SPEC/GEO/3);  a revised offer was circulated 
in document WT/ACC/SPEC/GEO/3/Rev.1 on 13 May 1998.  Georgia has submitted a preliminary 
list of concessions and commitments in services (November 1998), as well as a revised preliminary 
list, circulated in document WT/ACC/S PEC/GEO/6/Rev.1 of 4 February 1999.] 
140. The representative of Georgia said that services sectors accounted for approximately 
42 per cent of Georgia's GDP in 1996.  Georgia was in the process of drafting and adopting new laws, 
and amending existing legislation related to trade in  services to make the legislative basis consistent 
with the Agreements of the World Trade Organizatio n.  General laws related to services included the 
Constitution of Georgia;  the Law “On Promotion a nd Guarantees of Investment Activity”;  the Law 
“On Entrepreneurship”;  the Law “On the Legal C onditions 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.  The Law on Bookkeeping and 
Accounting had been adopted by Parliament on 5 February 1999.  The procedure for obtaining 
permission to engage in activities such as ba nking, insurance, issuance of securities and 
communications applied equally to domestic and foreign investors. 
141. Concerning specific services sectors, he said th at banks registered with the Courts, and 
licences on banking activities were issued by the Na tional 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” (February 1996).  A singl e shareholder or group of shareholders could, 
in principle, not own or dispose of more than 25 per cent of the stated or declared capital of a 
commercial bank, however, the National Bank could au thorize exemptions for banks or holders of a 
banking licence.  Foreign banks operated in accord ance with Georgia's common banking legislation 
and were not subject to any special or additiona l requirements.  The Insurance State Supervision 
Service controlled insurance activities.  According to  the Insurance Law, in force since 2 May 1997, 
insurance could be provided only by legal persons  organized as joint-stock companies or limited 
responsibility societies.  Licences were granted for an  indefinite period of time.  The Insurance Law 
had been amended in October 1998 , abolishing restrictions on fo reign 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 mark et and issuance of securities.  Parliament had 
approved a law establishing a stock market and pr oviding for registration a nd regulation of securities 
in Autumn 1998.  Parliament had also approved  amendments to the Law "On Entrepreneurship" 
providing for improved stockholder pr otection and other provisions to  encourage the development of 
a securities market in Georgia. WT/ACC/SPEC/GEO/7 
Page 28  
 
 142. The Ministry of Telecommunications and Post al Services regulated the telecommunication 
sector and postal services in accordance with the Law "On Telecommunications" No. 568 of 12 October 1994.  The Ministry formulated legislati on, 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 do cumentation.  Georgian and foreign firms were 
licensed under equal conditions;  to receive a licence the firm would need to be registered in the 
territory of Georgia.  Telecommunication services we re provided by State-owned and private firms.  
Postal services were a State monopoly in accordance with Presidential Decree No. 334 of 20 May 1996.  However, foreign service suppliers ( DHL, UPS) were also engaged in postal services 
in Georgia. 
143. The Ministry of Justice regulated legal services.  Legal services by foreign lawyers were not 
regulated or restricted by Georgian legislation in  force.  Audit services were regulated by the Audit 
Board established under the Parliament of Georgia. 
144. The regulatory regime in the tourism sector comprised the Tourism Chart and Tourism Code 
(September 1995), the Law "On Tourism and Re sorts" 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 equa lly to domestic and foreign firms. 
[to be completed] Transparency
 
Publication of information on trade  
145. The representative of Georgia said that a normative act could not take effect before its official 
publication (Article 38, paragraph 5 of the La w "On Normative Acts" of 29 October 1996).  
Normative acts for enactment were be published either in "Sakartvelos Kanonmdeblobis Matsne" 
(Georgian Legislation News), "Sakartvelos Parlam entis Utskhebani" (Georgian Parliament News), 
“Sakartvelos Respublica” (official newspaper), or in the official publishing organ of the authority 
adopting the normative act.  Publication of laws, re gulations and administrative orders was a legal 
obligation, and laws, regulations and administrati ve orders could not take effect before their 
publication.  Asked to clarify the relationship between these requirements and Article X of the 
GATT 1994, he confirmed that Georgia published a ll laws, regulations, judicial decisions and 
administrative rulings of general a pplication prior to implementation. 
146. A member noted that normative acts could be publ ished in a variety of journals and asked 
Georgia to indicate specifically which organs were relevant to the obligations  contained in Article X 
of the GATT and the WTO Agreements on SPS, TBT, TRIPS, GATS, Import Licensing Procedures, Customs Valuation.  Reminding Georgia that Artic le X and several WTO Ag reements required laws, 
regulations, judicial decisions, and administrative ruli ngs of general application dealing with trade to 
be published in a manner which pe rmitted 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 cons ider focusing its publication requirements on WTO 
issues in a relatively small number of publications.  The current system of publication of normative acts in various publishing journals could be a source of serious confusion and lack of proper 
information for foreign traders. 
147. The representative of Georgia replied that o fficial publication of a normative act implied 
publication of the entire text in "Sakartvelos Ka nonmdeblois Matsne (Georgian Legislation News).   WT/ACC/SPEC/GEO/7 
 Page 29 
 
 
 He added that organs relevant to  the obligations of Article X of the GATT were indicated in the 
[draft] "Decree of the President of Ge orgia on Managing the WTO Relationship". 
Notifications  
[to be completed] 
Trade Agreements  
148. 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 Telecommunications Sa tellite Organization (EUTELSAT);  the Food and 
Agriculture Organization (FAO);  the International At omic Energy Agency (IAEA);  the International 
Civil Aviation Organization (ICAO); the Internati onal Fund for Agricultural Development (IFAD);  
the International Labour Office (ILO);  the Intern ational Monetary Fund (IMF);  International 
Maritime Organization (IMO);  the International Maritime Satellite Organization (INMARSAT);  the 
International Organization for Migration (IOM);  the International Road Traffic Organization (IRTO);  
the International Trade Centre (ITC);  the Inte rnational Telecommunicati ons Union (ITU);  the 
Organization for Security and Cooperation in Eu rope (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 Environmental 
Programme (UNEP);  the United Nations Industr ial 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 Inte rnational Bank for Recons truction and Development 
(IBRD);  the International Development Associati on (IDA),  the International Finance Corporation 
(IFC);  the Multilateral Investment Guarant ee Agency (MIGA);  and the World Tourism 
Organization. 
149. Georgia had signed 30 bilatera l 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 Ru ssian Federation, Turkmenistan, Ukraine and 
Uzbekistan, 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 
Partnership and Cooperation Agreement with the European Communities on 22 April 1996.  The 
agreement was based on reciprocal application of the MFN principle.  Georgia was a participating 
State in the Black Sea Economic Cooperation (BSEC), established on 25 June 1992. 
150. 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 the Creation of an Economic Union of 24 September 1993 (the CIS Economic Union Agreement), and the 
Agreement on Creation of Free Trade Area within the CIS, but Parliament ha d not ratified  them.  
Parties to the Agreement on Creation of Free Trade Area  within the CIS agreed not to impose import 
or export duties, levies of equivalent effect, or quantitative restrictions on originating goods in trade 
among themselves.  The Agreement foresaw that th e parties would agree mutually on what goods to 
exclude 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 orig inating in another party and destined for a third 
party.  The Agreement also required the signatories 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:  (i) in response to shortages;  (ii) for balance of payments reasons;  or (iii) to redress WT/ACC/SPEC/GEO/7 
Page 30  
 
 significant injury caused by imports, or threat ther eof, to domestic producers.  Each party remained 
free to adopt measures to protect public health, morals, order and security, plants and animals, national treasures and intellectual property.  The Co al and Metal Association Agreement, signed by 
11 CIS countries, provided for the establishment of a Eurasian Association for Coal and Metal with 
the objective to further rational development of th e coal and metal-producing industries, coordination 
of scientific, technical and investment policies, a nd promotion of beneficial conditions of supply and 
terms of sale.  The Coal and Metal Association Ag reement did not contain any provisions relating to 
preferential market access. 
151. The representative of Georgia stated that Ge orgia 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. 
152. In response to specific questions on Georgia's economic relations with other CIS countries, 
the representative of Georgia added that only the Fr ee Trade Agreements with 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 Agreemen t on the Creation of an Economic Union was a 
framework agreement which required separate agreem ents in specific areas of economic activity to 
become effective.  No free circulation of go ods, services, capital or manpower had yet been 
implemented on the basis of this Agreement.  He st ressed that Georgia had no intention of joining the 
CIS Customs Union.  He agreed that the Agreement "On Creation of Zone of Free Trade of the Commonwealth of Independent States" would n eed to be notified under Article XXIV of the 
GATT 1994 or Article V of the GATS, but added that the agreement was not yet in force. 
153. A member requested Georgia to submit notifications and copies of its Free-trade Area and 
Customs Union Agreements to the Committe e on Regional Trade Agreements (CRTA) upon 
accession.  The representative of Georgia replied th at Georgia was not a member of any free trade 
area or customs union at present. 
154. The representative of Georgia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Artic le V of the GATS in its participation in 
trade agreements, and would ensure that the provi sions 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 acce ssion.  [The Working Party took note of these 
commitments.] 
CONCLUSIONS 
155. The Working Party took note of the explanati ons 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 specifi c matters which are reproduced in paragraphs 
............................ of this  Report.  The Working Party took note that these commitments had been 
incorporated in paragraph 2 of the Prot ocol of Accession of Georgia to the WTO. 
156. 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 Working 
Party 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 Accessi on reproduced in the Appendix to this Report, and 
takes note of Georgia's Schedule of Specific Co mmitments on Services (doc ument...............) and its 
Schedule of Concessions and Commitments on Goods  (document ..........) that are annexed to the 
Protocol.  It is proposed that these texts be adopted  by the General Council when it adopts the Report.   WT/ACC/SPEC/GEO/7 
 Page 31 
 
 
 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 Agre ement Establishing the WTO. 
 WT/ACC/SPEC/GEO/7 
Page 32  
 
 Table 1:  Progress in privatization in Georgia
 
(a) Privatization by Sector as of 1 July 1997 
Sector Approved Privatized 
(total) Privatized in 
1997 
 Total number 10,355 10,093 296 
 Industry 319 223 2 
 Energy 31 28 0 
 Bread products corporation 139 95 0 
 Food and agriculture 548 341 26 
 Construction 165 252 10 
 Trade 4,056 3,897 57 
 Every day repairs and other services 4,106 3,891 22 
 Oil products 164 164 0 
 Health 669 523 18 
 Social services 85 396 8 
 Transport 73 90 6 
 Non-dwelling space  193 147 
 
(b) Establishment of Joint-Stock Companies by Sector (1992-1999) 
Sector Number of State 
property objects 
planned for 
privatization Number of joint-
stock companies 
founded Percentage 
(%) 
Industry 192 174 90 
Chemical engineering 31 25 80 
Bread products 61 24 39 
Agriculture 383 326 85 
Architecture and construction 219 212 97 
Trade and material resources 81 70 86 
Oil products 49 26 53 
"Sakgazi" (Georgian gas) 57 44 77 
Transport 116 110 95 
Social services 49 42 86 
Energy 60 91 152* 
Poti and Batumi seaports 2 0 0 
TOTAL 1,300 1,144 88 
Note :  Figures may differ as some enterprises have been re organized and restructured, and thus divided into 
several new independent entities.  WT/ACC/SPEC/GEO/7 
 Page 33 
 
 
 Table 2:  Rates of excise tax  
HS code Product description Tax rate 
(% or Lari per litre)
 Caviar of sturgeon and trout, fish and seafood delicacy products 20%
 Beer  0.12 Lari
 Grape wines and wine materials, with the content of alcohol not 
exceeding 13%: 
-Unbottled 
-Bottled Lari
0.20 Lari
 Champagne 4.00 Lari
 Sparkling wines made of: 
-grapes -fruits 0.50 Lari
2.00 Lari
 Fruit wines 1.70 Lari
 Strong wines and wine materials, with the content of alcohol 
exceeding 13%: - made of grapes, unbottled - made of grapes, bottled 
- made of fruits and other materials 0.50 Lari
1.00 Lari
2.00 Lari
 Cognac and cognac materials 6.70 Lari
 Whisky, gin, rum 4.00 Lari
 Brandy and brandy materials 2.70 Lari
 Vodka 1.00 Lari
 Liquor 2.70 Lari
 Other alcoholic drinks 1.00 Lari
 Ethyl spirits 0.70 Lari
 
2402 20 2402 20 
2402 10 
 2403 Tobacco products, except tobacco raw materials: 
- high, class 1, 2, per 1,000 pieces - class 3, 4, 5, 6, per 1,000 pieces 
-cigars, cheroots and cigarillos containing tobacco, per 1,000 pieces 
-other manufactured tobacco and manufactured tobacco substitutes;"homogenized" or "reconstituted" tobacco;  tobacco extracts and
essences, per kg 7.50 Lari
2.50 Lari
150 Lari
20 Lari
 
  2710 00 Petrol: 
- ethylated petrol - non-ethylated Petroleum oils and oils obtained from bituminous minerals, othe
r
than crude 100%
60%60%
 Automobile tyres 15%
 Jewellery 35%
 Automobile tyres 
Automobiles 15%
15%WT/ACC/SPEC/GEO/7 
Page 34  
 
 Table 3:  Items subject to import licensing
 
(a) Chemical agents for protection of plants: 380 8. Licence is granted with the consent of the 
Ministry of Protection of Environment and Natural Resources, 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: 010119; 010290900; 
010391900; 010392900; 010410900; 010420900; 010599; 010600910; 010600990 (only wild animals); 0301-0303; 040700 (poultry except eggs); 0507; 050800000; 0604; 080221000; 080222000; 120999100; 1211; 121220000; 1401-1404; 9601. Licence is granted 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: 
020610100; 020622100; 020629100; 020630100; 
020641100; 020649100; 020680100; 020690100; 121220000; 150420; 29 (only pharmacological preparations and their raw materials); 3001-3004; 300660; 0507; 051000000; 1211; 1302. 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: 871000000; 8802 (except: 880211100; 
880212100; 880220100; 880230100; 880240100); 
8803 (except: 880310100; 880320100; 880330100; 880390910); 8805 (except 880520100); 890600100; 930100000; 930200; 9305 (only for fighting arms); 9306 (except: 930610100; 
930629100; 930629200; 930629400; 930630900); 
901310000; 901320000; 901380000; 9014; 8506 - only for military purpose. Licence is granted by the ministry of 
Justice. 
(e) Gunpowder, explosives, pyrotechnic substances: 
360100000 (except gunpowder for hunting); 360200000-3604. Licence is granted by the Ministry of 
Justice. 
(f) Nuclear materials, technologies, equipment and 
installations, special non-nuclear radioactive radiation sources: 3612; 2344; 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 of Environment and Natural Resources. 
(h) Tobacco products: 2402 and 2303 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 industria l wastes for the purpose of their utilisation, safe 
disposal, processing, interment and any other purposes is prohibited.  WT/ACC/SPEC/GEO/7 
 Page 35 
 
 
 Table 4:  Exports subject to prohibition or licensing  
According to Resolution No. 744 of 23 November 1995 of the Cabinet of Ministers of Georgia 
and Resolution No. 637-II of 21 Fe bruary 1995 of the Parliament of Georgia, export of the 
following is prohibited: 
CN 9701-970300000, 
970600000 Artwork and antiques of 
museum value  
CN 930110000, 930200, 
9305, 9306 Weapons and gunpowder  
Export of the following kinds of goods is subject to licensing in Georgia: 
970500000 Collection materials of 
biology, mineralogy, archaeology, paleontology, 
ethnography and 
numismatics: Licence is granted in agreement 
with the Ministries of Finance, Protection of Environment and 
Natural Resources, Culture and the 
Department of Geology respectively. 
4401, 4403, 4404, 4406, 4407 Timber Licence is granted on the basis of 
issued permission on manufacturing of timber. 
020610100; 020622100; 020629100; 020630100; 020641100; 020649100; 020680100; 020690100; 051000000; 1211; 13021; 
150420; 1505; 3001; 3002 Raw materials of animal 
and plant origin for medicines, substances received from human organism Licence is granted in agreement 
with the Ministry of Health Protection. 
120999101 
CN 7204, 7404, 7602 Caucasian Fir seed 
Ferrous and non-ferrous 
metal scrap Licence is granted on the basis of 
licence for their laying-in issued by 
the Ministry of Protection of Environment and Natural Resources. 
 
Table 5:  Imported products subject to mandatory certification  
 Description of Product Position Code 
1 Meat and meat products Group 2 
2 Fish, crustaceans, marine mammals and other aquatic 
invertebrates Group 3 
3 Milk and dairy products, bird s’ eggs, natural honey, edible 
products of animal origin  Group 4 
4 Vegetables and bulbs, tuberous roots Group 7 (except 0701 10 000 
0703 10 110) 
5 Edible fruit or nuts, citrus and its shells and peel Group 8 
6 Coffee, tea, spices Group 9 
7 Grain for bread Group 10 
8 Cereals, starch, inulin (except wheat gluten) Group 11 (except 1109 00 000) 
9 Foliage beet, edible roots, lucern, edible cabbage, hay 
whether or not granulated  1214 WT/ACC/SPEC/GEO/7 
Page 36  
 
  Description of Product Position Code 
10 Fats, oils and their fractions, of fish or marine mammals 
whether or not refined, but not chemically modified. 1504 
11 Other oils their fractions obtained solely from olives, 
whether or not refined, but not chemically modified, 
including blends of theses oils or fractions with oils of other 
type.  151000 
12 Lard and poultry fat whether or not pressed or solvent 
extracted 1501 (except 1501 00 110) 
13 Fats of bovine animals, sheep or goats  raw or rendered 1502 (except 1502 00 100) 
14 Soya-bean oil and its fractions, whether or not refined but 
not chemically modified 1507 (except 1507 10 100,  
1507 90 100) 
15 Peanut oil and its fractions, whether or not refined but not 
chemically modified 1508  
(except 1508 10 100 1508 90 100)
16 Olive oil and its fractions, wh ether or not refined but not 
chemically modified 1509 (except 1509 10 100) 
17 Palm tree oil and its fractions , whether or not refined but 
not chemically modified 1511  
(except 1511 10 1001511 90 910)
18 Sunflower-seed, safflower or cotton-seed oil and fractions 
thereof whether or not refined, but not chemically modified1512 (except 1512 11 100, 
 1512 19 100, 1512 21 100) 
19 Coconut oil, palm kernel or babassu oil and fractions 
thereof, whether or not refined, but not chemically modified1513  
(except 1513 11 100, 1513 19 300 
1513 21 110, 1513 29 300,  1513 29 990, 1513 21 190) 
20 Rape, colza or mustard oil and fractions thereof, whether or 
not refined, but not chemically modified 1514  
(except 1514 10 100 1514 90 100)
21 Vegetable fats and oils and their fractions 1515 20 (except 1515 20 100) 
22 Animal fat and their fractions 1516 10 
23 Corn oil and its fractions (edible) 1515 21 900 
24  Margarine 1517 
25 Meat, fish or crustaceans or other aquatic invertebrates Group 16 
26 Cane or beat sugar and chemically pure sucrose, in solid 
form 1701  
(except 1701 11 900 1701 99 900
27 Glucose and glucose syrup, not containing fructose or 
containing in the dry state l ess than 20% by weight of 
fructose 1702 40 (except 1702 40 100) 
28 Other fructose and fructose syrup, containing in the dry 
state more than 50% by weight of fructose 1702 06 
29 Sugar confectionery (including white chocolate), not 
containing cocoa 1704 
30 Cocoa and cocoa preparations Group 20 
31 Preparations of cereals, flour, starch or milk, pastrycook 
products Group 19 
32 Preparations of vegetables, fruit, nuts or other parts of 
plants Group 20 
33 Miscellaneous edible preparations Group 21 
34 Beverages, spirits and vinegar Group 22 
35 Residues and waste from the food industry used for animal 
feed, prepared animal food Group 23 
36 Tobacco and manufactured tobacco substitutes Group 24 
37 Edible salt 2501 00 910  WT/ACC/SPEC/GEO/7 
 Page 37 
 
 
  Description of Product Position Code 
38 Engine and aviation petroleum 2710 00 310 
39 Engine petroleum containing lead no more than  0.013 g/l 2710 00 330 
40 Engine petroleum containing lead more than 0.013 g/l 2710 00 350 
41 Kerosene 2710 00 510 
42 Diesel fuel 2710 00 690 
43 Liquid fuel (mazout) 2710 00 790 
44 Lubrication and other oils 2710 00 990 
45 Medical oxygen 2804 40 000 
46 Gauze and its preparations 3005 90 310 
47 Ammonium sulfate 3102 21 000 
48 Superphosphates 3103 10 000 
49 Essential oils and resinoids, perfumery, cosmetic or toilet 
preparations Group 33 
(except 3303, 3307 10 000, 3307 30 000, 3307 41 000, 
3307 49 000 
 3307 90 000 
50 Toilet soap 3401 11 000 
51 Detergents, packed for retail sale 3402 20 900 
52 Detergents and other cleansing materials 3402 90 900 
53 Lubrication means for cars, equipment and transportation 
means 3403 19 910 
54 Matches 3605 00 000 
55 Photographic or cinematographic goods Group 37 
56 Copper sulfate, packed for retail prices 3808 20 100 
57 Herbicides 3808 30 100 
58 Disinfectants, for use in health protection and veterinary 3808 40 000 
59 Flexible insulation tubes of ethylene, vinyl chloride or other 
plastic polymers 3917 31 900 
60 Diaphragm of polymers of ethylene 3920 10 
61 Insulation materials from tar and othe r plastic 3921 90 2003921 90 3003921 90 
500 
62 Plastic bags 3923 21 000 
63 Plastic bags and containers of mo re than 2 litres in volume 3923 30 900 
64 Rubber  4011 (except 4011 30) 
65 Contraceptives 4014 90 
66 Latex baby’s dummy, rubber ice bubbles, rubber hothouses, 
medical rubber tubes 4014 990 
67 Appliances for individual safety  reasons, rubber masks 4015 90 000 
68 Surgical gloves 4015 11 000 
69  Timber boards 4410 
70 Plywood veneer sheets of leaf- bearing sorts with outward 
layers, veneer sheets of coniferous sorts with outward layers4412, 4412 12 0004, 412 19 000 
71  Veneer preparations 4415 10 000 
72 Filter for grocery products 4805 40 000 
73 Wrapping paper for grocery products 4805 80 900 
74  Wall paper 4814 
75 Hard paper boxes  4819 10 000 WT/ACC/SPEC/GEO/7 
Page 38  
 
  Description of Product Position Code 
76 Hard and soft paper boxes,  including bending ones, paper 
bags and bags of combined materials, glass and paper 
bottles 4819 50 100 
77 Insulation fabric 5903 90 100 
78 Male, female and children kn itted garments, including the 
clothing for babies and children before school age - knitted 
garments - male, female an d children swimming and skiing 
suits - foot ware (socks, warm pants and sweat pants)  61076108, 61096111 / 61126115 
79 Male, female and children sew ing garments male, female 
and children sewing suits for swimming and skiing 
purposes 6207 / 6208, 6209 
6211 11 000, 6211 12 000 
80 Male, female and child ren jersey ware 61056106 
81 Children shoes (leather, rubber polymer, rubber textile, 
woollen) 6401; 6402, 6403; 6404;6405 
82 Uncut diamond instruments – sewing discs, cutting discs 6804 21 000 
83 Abrasion instruments - sewing discs, cutting discs 6804 22 
84 Abrasion powder instruments 6805 
85 Friction materials and preparations 6813 (except 6813 10 100, 
6813 901000) 
86 China dinner, kitchen, other household and toilet articles 6911 
87 Dinner, kitchen, other house hold ceramic dishes and toilet 
articles 6912 
88 Multi-layer glass for ground tr ansport 7007 11 000, 7007 21 910 
89 Glass containers for storage, transportation and packaging 
(for medical, food and industrial use) 7010 90 
90  Metal cans for preserves and chemical products, cisternas 7310 (except 7310 10 000) 
91 Ferrous metal containers with more then 50 litre capacity 7310 10 010 
92 Air balloons of 50 litre capacity  at burst  pressu re of 1.6 Pa  7311 00  (except 7311 00 990) 
93 Heaters, kitchen ovens, food heaters and other similar non 
electrical equipment made of fe rrous metal, related supplies7321 (except 7321 90 000) 
94 Copper enamelled household articles  7323 92 000 
95 Articles out of rust proof metal 7323 93 
96 Iron enamelled household articles 7323 94 
97 Steel dishes 7418 10 000 
98 Aluminum containers not expa nding the 50 litres capacity 7612 90 990 
99 Aluminum kitchenware and dishes 7615 10 
100 Manual garden tools (knives, etc.) 8201 10 000, 8201 20 0000, 
8201 30 000, 8201 50 000 
101 Wood-cutting instruments - plate saws  8202 32 
102 Screwdrivers 8203 20 
103 Hammers, planes 8205 20 000, 8205 30 000 
104 Guts 8205 40 000 
105 Milling cutters 8207 70 900 
106 Caps for glass bottles, corks, etc. 8309 90 900 
107 Internal burning engine 8407 21  WT/ACC/SPEC/GEO/7 
 Page 39 
 
 
  Description of Product Position Code 
108 Motorcycle and car engines 8407 31 000, 8407 32 000, 
8407 33 (except 8407 33 100) 
8407 34 (except 8407 34 100, 8407 34 300) 8407 90 (except 8407 90 500, 8407 90 700) 
109 Car internal burning engines 8408 20 (except 8408 20 100, 
8408 20 310, 8408 20 350,  8408 20 370) 
110 Household liquid pumps, manual 8413 20 900 
111 Manual household pumps 8414 20 990 
112 Compressors used in refrigerating plants 841430 
113 Electronic engine air conditioners for tables, wall, floor, 
ceiling with capacity of 125 kWh 8414 51  
(except 8414 51 100) 
114 Air conditioner supplies for measuring air temperature and 
humidity; conditioners without a separate regulator of humidity; - for wall or window - other 8415 10 000, 8415 82 900,  
8415 83 900 
115 Refrigerator closets and containers 8418 10 900 
116 Family refrigerators – compressive - electric, absorbing -
other 8418 21, 8418 22 000, 
8418 29 000 
117 Refrigerator shelves 8418 50 190 
118 Water heaters or water accumulators 8419 19 000 
119 Medical, surgical sterilisers 8419 20 000 
120 Machines, equipment and other for preparing warm drinks 
or heating up dishes 8419 81 (except 8419 81 100) 
121 Electric milk separators with capacity of 1 kWh and manual 
capacity of 50 litre/hour 8421 11 000 
122 Household air cleaning machine 8421 39 300 
123  Household dish washers 8422 11 000 
124 Machines for weighting and acknowledging the wrapped 
goods 8423 81 300 
125 Motor operated cultivators 8432 29 100 
126 Machines for cutting the hay, grass, etc. 8433 118433 19 
127 Machines used in milk industry 8434 (except 8434 90 000) 
128 Electric incubators with capacity of 4kWh 8436 21 000 
129 Mixers and related machines in f ood industry 8438 (except 8438 30 000,  
8438 40 000) 
130 Binding machines for brochures 8440 
131 Machines for textile fibre weaving: - carding machines;-
looms 8445 11 000,8446 
132 Household or laundry washing machines 8450 (except 8450 90 000) 
133 Dryers for clothing 8451 21 
134 Automatic or other sewing machines 8452 21 0008452 29 000 
135 Electric household sewing machines 8452 10 
136 Metal cutting machinery 84588459 
137 Household wood work machinery 8465 
138 Non-electric, manual tools 8467 (except 8467 91 000  
8467 92 0008467 99 000) WT/ACC/SPEC/GEO/7 
Page 40  
 
  Description of Product Position Code 
139 Automatic and electrical typing machines, machinery for 
textile work 8469  
(except 8469 31 0008469 39 000)
140  Calculators, counting machines, ticke t apparatus, etc. 8470 (except 8470 10 000 
8470 30 000 ,8470 40 000,  
840 90 000) 
141 Machines and blocks for automatic information processing; 
magnetic and optical counting machines, machines for 
transmitting coded messages 8471 (except 8471 10 100,  
8471 20 100, 8471 91 100,  
8471 92 100, 8471 93 100, 8471 90 100) 
142 Electronic machines for counting, sorting, binding and 
wrapping banknotes 8472 90 100 
143 Other office electrical equipment: document binding 
machines, paper disposal machines, electric pencil 
sharpeners and etc. 8472 90 900 
144 Concrete mixer 8474 31 000 
145 Equipment for making mixtures of building materials 8474 39 000 
146 Rubber and rubber product making machinery 8477 (except 8477 90) 
147 Taps and other products for tubes, pipes, reservoirs, cisterns 
and other containers including thermoregulators  8481 
148 General machinery reductors and transmissions 8483 40 930  
149 General machinery moto-reductors 8483 40 990 
150  Electric engines (except aviation ones)- engines with 
capacity not expanding 37.5w- AC/DC Universal engines with capacity not expanding 37.5w 8501 108501 20  
(except 8501 20 100) 
151 - engines with constant electricity supply with capacity not 
extending 750w - engines with constant electricity supply 
with capacity over 750w but below 75kWh - one line engines with changeable electricity supply and capacity not 
expanding 7.5kWh – multi-line engines with changeable 
electricity supply 8501 31 (except 8501 31 100) 
8501 32 (except 8501 32 100) 8501 40 900 8501 51 (except 8501 51 100, 
8501 51 910) 
152 Complex electro generating equi pment with internal engine 
of capacity not expanding 7.5Kwh 8502 20 910 
153 Throttles for discharge lamps and tubes 8504 10 (except 8504 10 100) 
154 Liquid dielectric operated transformators (3000v) - capacity 
not expanding 650 kWh - capacity more than 650kWh but below 1000 kWh 8504 21 0008504 22 
155 Measuring transformators with capacity not expanding 1 
kWh 8504 31 (except 8504 31 100) 
156 Other transformators with capacity more than 500w (with 
electricity more than 3000v) 8594 24 000 
157 Welding 8504 40 910 
158 Charging machinery, accumulating equipment 8504 40 930 
159 Basic elements and batteries 8506  
(except 8506 20 0008506 90 000)
160 Electric accumulators including their apparatus of different 
shapes 8507 (except 8507 10 100,  
8507 20 100, 8506 30 100, 8507 40 100, 8507 80 100, 
8507 90)  WT/ACC/SPEC/GEO/7 
 Page 41 
 
 
  Description of Product Position Code 
161 Electrical engine operated manual electric-mechanical 
instruments with indulged 8508 (except 8508 10 100, 
8508 80 100, 8508 80 300,  
8508 90 000) 
162  Electrical engine operated household electric mechanical 
machines  8509 (except 8509 90) 
163 Electrical engine operated electric shaver s and hair cutters; 8510 (except 8510 90 000) 
164 Electrical equipment with internal burn engine for 
automobile transport (ignition coils, spark-plugs, starters);generators (of consta nt and changeable electricity 
supply) 8511 (except 8511 10 100 
8511 20, 8511 30 100, 8511 40 100, 8511 50 100 
8511 808511 90 000) 
165 Alarm and lighting equipment 8512 (except 8512 10) 
166 Industrial or laboratory used electric ovens and containers 
including special machinery for thermo-works 8514  
(except 8514 10 9908514 90 000, 8514 90) 
167 Soldering irons and soldering apparatuses 8515 11 000 
168 Automatic and half automatic machines and apparatus for 
arc welding of metals 8515 31 000 
169 Electric accumulating water heaters; sinking electric 
boilers; heating systems for houses; electric irons and other 
electric household items 8516  
(except 8516 80 8516 90 000) 
170 Electric phone system 8517 10 100 
171 Electric door bell systems 8517 81 100 
172 Electrical voice devices, microphones 8518 50 900 
173 Tape players and similar devices not including recording 
supplies (more than 363 v) 8519  
(except 8519 91 1008519 91 910)
174 Tape recorders and other recording devices with or without 
players 8520  
(except 8520 31 110,  8520 31 300, 8520 90) 
175 Video recording and playing devices with or without 
videotuner 8521 (except 8521 10 100) 
176 Broadcasting devices and apparatus for radio/ television, 
television cameras 8525  
(except 8525 10 1008525 20 100)
177 Radio-phone devices, radio-telegraph devices and other 
apparatus for radio broadcasting 8527 (except 8527 11 
8527 19 0008527 90) 
178 Television receivers including video monitors and video 
projectors, with or without voice recording and playing 
devices 8528 
179 Fire and safety electronic alarms 8531 10 900 
180 Electronic bells and indicative panels 8531 80 900 
181 Constant electric network c ondensators of 50/60Hz. 8532 10 000 
182 Electric devices for turning on/off the electricity, contacts, 
with voltage over 1000 V(switc hes, switchboards, power 
reducers, fluctuation reducers, electric load, using 
equipment, etc.) 8535 (except 8535 90 000) 
183 Electric devices for switching on/off, breaking and 
protecting the electricity supply or for connection to electric 
circuits (switches, sockets, cords, etc.) 8536 (except 8536 10 900 
8536 20 900, 8536 30 900, 8536 418536 90) 
184 Electric and air-discharge incandescent lamps, including 
hermetically sealed lamps of directed light, also ultra-violet and infra-red lamps  8539 (except 8539 10 100 
8539 40 900 8539 90) WT/ACC/SPEC/GEO/7 
Page 42  
 
  Description of Product Position Code 
185 Electric-laser hoses for television receivers including video 
monitors with:  - coloured vision - black and white vision - 
vacuum display hoses 8540 118540 128540 89 110 
186 Isolated electric tubes with or without connective details, 
optic cables 8544 (except 8544 11 900 
8544 20, 8544 30 100 
8544 41, 8544 49 8544 60 110, 8544 60 910 8544 70 000) 
187 Small trucks for agricultural works 8701 108701 20 100 
188 New 10 people vehicles 8702 
189 Cars (except used, sport, snow equipped, field games 
vehicles) 8703 
190 Trucks (except used, ones for transporting radioactive 
products) 8704 
191 Cement mixing vehicles 8705 40 000 
192 Trucks specifically used for city communication purposes 8705 90 000 
193 Car devices and details:  bum pers, safety belts, breaks, 
amortizators, noise reductors, wheel related mechanisms 8708 10 9008708 21 9008708 80 
9008708 92 9008708 93 900 
194  Electrical transport devices for transporting goods to 
ware-houses 8709 11 900 
195  Motorcycles, bikes with supporting engines with or without 
additional seats (except the used and sport cars) 8711 (except 8711 10 000) 
196 Two wheel bikes without engine 8712 00 
197 Children cabs 8715 00 100 
198 Yachts and other swimming devices like boats and canoe 
(except sport ones) 8903 
199 Photo cameras with flashes 9006 (except 9006 10 000 
9006 20 000, 9006 30 000 
9006 91, 9006 99 000) 
200 Cine-projectors 9007 21 000 
201 Slide projectors 9008 40 000 
202 Electric devices and apparatus for medical, surgical, dental, 
veterinarian, etc. uses 9018 
203 Individual safe breathing devices 9020 00 900 
204 Cardostimulator 9021 50 000 
205 Changeable electricity measurers - one line - multi line 9028 30 110, 9028 30 190 
206 Electricity measurers and other 9018 30 900 
207 Automobile speedometers 9029 20 310 
208 Cathode-beam oscilloscopes and oscillographs 9030 20 900 
209 Mixed electromeasuring devices 9030 31 900 
210 Voltmeters, ampermeters and other electric devices 9030 (except 9030 39 100) 
211 Electric clocks 9105 (except 9105 11 100 
9105 29, 9105 91 000, 9105 99) 
212 Electrical music instruments with electrical sound 
frequency generators or s ound improving devices (like 
guitar, organ)  9207 
213 Seating furniture 9401 (except 9401 10 , 
9401 50 000, 940190) 
214 Medical, surgical, dentist, veterinarian furniture 9402  WT/ACC/SPEC/GEO/7 
 Page 43 
 
 
  Description of Product Position Code 
215 Other furniture (except the ones for public aviation usage) 9403 (except 9403 20 100 
9403 70 100, 9403 80 000 
9403 90) 
216 Lighting devices:  - for stage, television and movie studios - 
for photo and movie filming - for industrial purposes - for 
tables and projectors 9405 (except 9405 10 000 
9405 50 000, 9405 60 100,  
9405 91, 9405 92, 9405 99) 
217 Children’s toys on wheels (like three wheel bike, little 
manual cars),toy cabs 9501 00 
218 Human like toys 9502 
219 Other toys of reduced shapes, fun movable or straight 
devices, puzzles 9503 
220 Receiver operated video games 9504 10 000 
221 Coin or toil operated toys 9504 (except 9504 30 900) 
222 Rubber masks and related diving gear 9506 29 900 
223 Chargeable electronic lighter for stove, for cigarettes 9613 80 000 
224 Building material out of cement and metal Group 686813 (except 2515; 
2516; 2517; 2523; 6904; 6908 
225 Light industrial goods in contact with human body 6105; 6106; 6107; 6108; 6109; 
6115 
226 Liquid gas 2711 11 000, 2711 12 110 
227 Coal 2701 
228 Artificial leather 4111 00 000 
229 Curing remedies 3003; 3004 
230 Synthetic ammonia 2814 
231 Calcium carbide 2819 10 000 
232 Steal tubes 7304 10 
233 Caprolactam  
234 Chemical fibre and thread  
 WT/ACC/SPEC/GEO/7 
Page 44  
 
 ANNEXES 
[to be completed] 
ANNEX I 
Laws, Regulations and Other Information Pr ovided to the Working Party by Georgia
 
- Draft Ordinance of the President of Georgi a on some measures for the implementation of 
requirements for the accession of Georgia to the WTO; 
- Draft Decree of the President of Georgia "On Accession of Georgia to WTO"; - Draft Tax Code of 5 November 1996; - Tax Code of Georgia of 9 July 1997; - Law On Promotion and Guarantees of Investment Activity; 
- Concession Law; 
- Decree of the Head of State of the Republic of Georgia on the Establishment of Agricultural 
Land Use Tax; 
- Resolution of the Tbilisi Municipality City Board No. 07.03.45 of 29 September 1994 On 
Making Minor Corrections to the Tbilisi Munici pality 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; 
- Presidential Decree No. 322 of 23 June 1997 On the Regulation for Admission of Goods 
Received Through Grants at the Customs of Georgi a, Registration of Grants and Control Over 
Their Application; 
- Law No. 743-IIS of 30 May 1997 On Privatization of State-owned Property; 
- Law "On Administration and Allocation of P ublicly-owned, Non-allo cated, Non-Agricultural 
Land"; 
- Law "On Declaration of Private Ownership of Non-Agricultural Land in Possession of 
Physical Persons and Private Legal Persons; 
- List of remaining un-privatized wholly or partially-owned government owned firms; 
- Consumer Rights Protection Law of 20 March 1996; 
- Law on Monopolistic Activities and Competition; - The Code of Administrative Court Procedures of Georgia; - Law on Entrepreneurs No. 577-16 of 28 October 1994; - Customs Law; - A Summary (Synopsis) of the Draft Customs Law of Georgia; 
- Draft Customs Code of Georgia; 
- Customs Code of Georgia of 14 November 1997; - Law of 27 December 1996 On Customs Duty; - Law on Customs Tariffs and Duties of 19 March 1998; - Decree of the Republic of Georgia No. 30 of 21 October 1992 Concerning Customs Tariffs; 
- Law on Customs Fees of 18 February 1998; 
- Law on Value Added Tax; - Resolution of the Cabinet of Ministers No. 843 of 5 December 1994 Concerning Approval of 
the Instructions On Order of Definition (Deter mination) of Customs Value of Goods Imported 
into the Territory of the Republic of Georgia; 
- Regulations Concerning the Order of Determin ing the Customs Value of Goods Imported to 
Georgia (draft); 
- Draft Regulations Concerning Order of Dete rmining the Customs Value of Goods Imported 
to Georgia; 
- Regulations for Determining the Country of Or igin of Goods Imported to Georgia (draft); 
- Decree N 391 of the President of Georgia "On Activities Addressing Regulation of 
Production, Import, Wholesale and Retail Trade in Tobacco Products in Georgia";  WT/ACC/SPEC/GEO/7 
 Page 45 
 
 
 - Resolution of the Cabinet of Ministers No. 744 of 30 November 1995 On Further 
Liberalization of Export and Import Activities in the Republic of Georgia; 
- Resolution of the Cabinet of Ministers No. 334 of 7 June 1995 About the Temporary Rule on 
Regulating Harvesting, Delivery, Transportati on and Re-export of Scrap and Wastes of Black 
and Colour Metals in the Republic of Georgia; 
- Programme of the implementation of the requirements of the WTO Agreement on Technical 
Barriers to Trade; 
- Resolution No. 678 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; 
- Standardization Law No. 372-II of 6 September 1996; 
- Law on Product and Service Certification of 6 September 1996; - Plan of the measures on the consecutive pla nning 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 Tari ff of the State Inspection of Phytosanitary 
Quarantine; 
- Law No. 716-IIS of 15 May 1997 On Agricultural Quarantine; - Resolution of the Cabinet of Ministers No. 264 of 30 March 1995 On Supply of Goods and 
Products for State Needs; 
- Georgian Law on State Procurement; 
- Statute On Inventions (approved by Decisi on of the Cabinet of Ministers No. 302 of 
16 March 1992); 
- Book Four - Intellectual Property Statute (Draft Civil Code); - Civil Code of Georgia of 26 June 1997; - Draft Law on Copyright and Neighbouring Rights; 
- Draft Law on Trademarks; 
- Statute on Trademarks, approved by the Decision of the Council of Ministers No. 304 of 
15 March 1992; 
- Draft Law on Appellations of Or igin and Geographical Indications; 
- Statute on Inventions, approved by the Deci sion of the Council of Ministers No. 302 of 
16 March 1992; 
- Draft Patent Law; 
- Statute on Industrial Designs, approved by th e Decision of the Council of Ministers No. 303 
of 15 March 1992; 
- Law of Georgia "On Protection of Selected Achievements"; - Law on Protection of Consumer Rights of 20 March 1996; 
- Law on Advertising of 18 February 1998; 
- Law on Audit; - Law on the National Bank of Georgi a No. 764-IIs of 23 June 1995; 
- Law No. 121-IIS of 23 February 1996 On Activ ities of Commercial Banks (with amendments 
of 21 March 1996); 
- Law of 2 May 1997 On Insurance; 
- Draft Law of Georgia "On Commodity Markets and Exchange Business"; 
- Free Trade Agreement between Georgia and Armenia; - Free Trade Agreement between Georgia and Azerbaijan; - Free Trade Agreement between Georgia and the Russian Federation; - Free Trade Agreement between Georgia and Ukraine; 
- Free Trade Agreement between Georgia and Uzbekistan; 
- Agreement on Establishment of the Inter-Sta te Euro-Asian Corporation of Coal and 
Metallurgy; 
- Agreement between the European Communities and the Republic of Georgia on Trade in 
Textile Products; WT/ACC/SPEC/GEO/7 
Page 46  
 
 - Law on Statistics of 12 November 1997; 
- Statistical data on foreign trade of Georgia by commodity groups (1996); - Statistical data on foreign trade of Geor gia by commodity groups (January-November 1997 
- Statistical data on foreign trade of Georgia by HS (1996-1997);   WT/ACC/SPEC/GEO/7 
 Page 47 
 
 
 APPENDIX 
ACCESSION OF GEORGIA 
Draft Decision  
 The General Council,  Having regard
 to the results of the negotiations di rected 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 Ge orgia may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol. WT/ACC/SPEC/GEO/7 
Page 48  
 
 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 accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic 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/.... (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, Ge orgia 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 inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred 
to in paragraph […] of the Working Party Report, sh all be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in the para graphs referred to in paragraph […] of the 
Working Party Report, those obligations in the Multilateral Trade Agreemen ts 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 its 
entry 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 Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
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 to 
as 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 Schedu les shall be implemented as specified in the 
relevant 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 resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol.  WT/ACC/SPEC/GEO/7 
 Page 49 
 
 
 Part III - Final Provisions  
7. This Protocol shall be open for acceptance, by signature or ot herwise, by Georgia until ......... 
8. This Protocol shall enter in to 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 certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Georgia. 
10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations. 
 Done at Geneva this ... day of  .... one thou sand nine hundred and ninety ….., in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages. WT/ACC/SPEC/GEO/7 
Page 50  
 
 ANNEX
 
SCHEDULE …. - GEORGIA  
 
Part I - Goods  
[to be completed] 
 
Part II - Services  
[to be completed] 
 
__________