RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/GEO/18
4 February 1999
(99-0417)
Working Party on the
Accession of Georgia
ACCESSION OF GEORGIA
Additional Questions and Replies
The Permanent Mission of Georgia has submitted replies to additional questions raised after
the meeting of the Working Party held on 13 October 1998, with the request that they be circulated tothe members of the Working Party.  The questions and replies are reproduced hereunder.  Annexes I
and II are available in the Secretariat (Accessions Division, Room 1126) for consultation by interested
members.
_______________
TABLE OF CONTENTS
Page
No.Question
No.
I. INTRODUCTION 1 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions of the ongoing economic policies
Privatization 1 2-5
(b) Monetary and fiscal policies
Fiscal policy 2 6
(d) Foreign and domestic investment policies 2 7-8
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN GOODS
AND TRADE IN SERVICES
3. Division of Authority Between Central and Sub-Central
Governments39
4. Any Legislative Programmes or Plans to Change the
Regulatory Regime4 10-11
5. Laws and Legal Acts 7 12-15
6. Description of Judicial, Arbitr al or Administrative Tribunals
or Procedures81 6
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import RegulationWT/ACC/GEO/18
Page ii
(a) Registration and right to trade 9 17-18
(d) Other duties and charges 9 19-22
(f) Import licensing procedures 11 23-24
(h) Customs valuation 11 25
(j) Pre-shipment inspection 11 26(k) Application of internal taxes on imports
Value Added Tax 12 27
Excise and other taxes 12 28-34
(l) Rules of origin 15 35
(m)(n)(o) Antidumping regime, Countervailing duty regime, Safeguard
regime15 36-37
2. Export Regulation 16 38
(h) Import duty drawback schemes 16 39
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policies 16 40-41(b) Technical regulations and standards 17 42-43
(c) Sanitary and phytosanitary measures 17 44-45
(d) Trade-related investment measures 19 46
(e) State-trading practices 19 47
(l) Government procurement practices 20
4. Policies Affecting Foreign Trade in Agricultural Products
(b) Exports 20 48
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
2. Substantive standards of protection, including procedures for
the acquisition and maintenance of intellectual property
rights
(a) Copyright and related rights 20 49-52
(b)(c) Trademarks, including service marks, Geographical
indications21 53-57
(d) Industrial designs 23 58
(e) Patents 23 59-61
(g) Layout designs of integrated circuits 24 62-63
(h) Requirements on undisclosed information 25 64
4. Enforcement 25 65-67
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral agreements relating to foreign trade in goods and
services26 68
2. Economic integration:  customs union and free-trade area
agreements26 69-70
Annex I List of remaining un-privatized wholly or partially-
government owned firms
Annex II Decree N 391of  The President of Georgia "On Activities
Addressing Regulation of Production, Import, Wholesale and
Retail Trade in Tobacco Products in Georgia"WT/ACC/GEO/18
Page 1
I. Introduction
Question 1.
Could Georgia keep the Working party updated  on the developments concerning the law on
foreign Trade?
Answer:
It has been decided that the Presidential Decree on Managing the WTO Relationship would
be adopted instead of the Law on Foreign Trade. The Ministry of Trade and Foreign Economic
Relations has prepared a draft presidential decree assigning the responsibilities for managing various
aspects of the relationship between Georgia and the WTO after accession is achieved.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions of the ongoing economic policies
Privatization
Question 2.
For the firms not yet privatized, which according to WT/ACC/GEO/10 account for about 20
per cent or Georgia's GDP, what portion of Georgia's imports and exports are accounted for
by these government-owned firms?
Answer:
This kind of information is not available at the present stage.
Question 3.
The response to question 6 of WT/ACC/GEO/10 lists about 60 Joint-Venture firms with
significant Government participation. Earlier, however, Georgia had indicated that there wereapproximately 240 firms not yet privatized.  Could Georgia provide a list of the remaining
unprivatized wholly or partially-government owned firms and indicate in broad terms which
are being considered for privatization and which are not?
Answer:
The list of remaining unprivatized wholly- or partially-government owned firms is enclosed.
(see Annex I)
Question 4.
Could Georgia display its privatization status information in a table similar to those provided
by Latvia and Kyrgyz Republic in their accession Working Party Reports?WT/ACC/GEO/18
Page 2
Answer:
The privatization status information of Georgia is enclosed. (see Annex I)
Question 5.
The response to question 5 ofWT/ACC/GEO/10 states that Georgia foresees the completion of
its privatization program by 2000.  We seek a commitment from Georgia to provide annuallyto WTO Members information on developments in its privatization for as long as its program
of privatization is in existence along the lines of the information provided to the Working
Party during the accession process, and on other issues related to its economic reforms as
relevant to its obligations under the WTO .  Is Georgia prepared to agree to such a
commitment?
Answer:
Georgia takes a commitment to provide annually the information on developments in its
privatization to the WTO Members. The information regarding the privatization process in Georgia
is available through the Internet in the following addresses:
www.georgia.net.ge/mospm - web side of the Ministry of State Property 
Management of Georgia;
www.casebycase.org.ge - web side of the World Bank project - Multilateral 
Investment Guarantee Agency (MIGA)
www.sanet.ge/geplac - web side of the Georgian-European Legal Advice 
Center (GEPLAC)
(b) Monetary and fiscal policy
Fiscal policy.Question 6.
Apparently,  according to Georgia legislation, ta x inspectors can freeze bank accounts of foreign
firms without an order an issued by the judicial authority  and/or  money can be withdrawn
without the consent of account holder. Could Georgia specify under which circumstances these
activities are carried out and if Georgia intends  to change its legislation to avoid possible
abuses?
Answer:
The decision of the court is necessary to freeze bank accounts both of foreign and domestic
firms.
(d) Foreign and domestic investment policies
Question 7.
Re question 13. Does the process for obtaining permission to engage in banking activity,
insurance activity, issuance of securities and communications, as outlined  by the Georgian
response to this question, apply equally to domestic and foreign investors?WT/ACC/GEO/18
Page 3
Answer:
The process for obtaining permission to enga ge in banking activity, insurance activity,
issuance of securities and communications applies equally to domestic and foreign investors.
Question 8.
Could Georgia please specify the sectors that will be submitted to licensing requirements in the
new licensing law? in addition could Georgi a specify the nature of these requirements ?
Answer:
A new draft law concerning licensing of businesses has been prepared and was formally considered
by Government (the final stage before submission to Parliament) in early December.  Parliamentary
consideration is scheduled for February 1999.  The law will apply equally to both domestic and
foreign-owned businesses in Georgia. The draft is quite  favorable to business in that it restricts the
authority of ministries to control businesses through the issuance of licenses to those situationsinvolving safety, consumer protection, environmental protection, or national security issues.
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
3. Division of Authority Between Central and Sub-Central Governments
Question 9.
The response to question 17 ofWT/ACC/GEO/10 indicates that the national Government of
Georgia has full authority in the areas of, inter alia. taxes on goods, customs, tariffs, and
foreign trade on its national territory with  the exception of the Autonomous Republic of
Abkhazia.
The responses to questions 22 and 23 indicate that Georgia is prepared to take specific
commitments coiled-rung the uniform implementation of WTO provisions and the elimination
or nullification or measures taken by sub-central authorities in Georgia that are in conflict
with the WTO Agreement when those measures  were brought to its attention "at the sub-
national level controlled by the Central Government" from the date of accession.
Is there any part of Georgia's territory other than the Autonomous Republic of Abkhazia, e.g.,
free trade or economic zones, trade processing zones, other autonomous regions, where
Georgia does not foresee the ability to enforce WTO provisions from the date of accession?
Answer:
At present negotiations are ongoing to share the power between central and local authorities
in order to ensure the enforcement of the national legislation in former South Ossetian Autonomous
Region.WT/ACC/GEO/18
Page 4
4. Any Legislative Programs or Plans to Change the Regulatory Regime
Question 10.
The response to question 26 states that Georgia is preparing draft laws or regulations to
address identified inconsistencies in its legal structure vis-à-vis WTO provisions in the
following areas:
- -A foreign trade law that will determine the responsibilities of various ministries
for particular aspects of the WTO Agreement,
- anti-dumping, countervailing duties, safeguards,
- -customs valuation, rules of origin, pre-shipment inspection,
- -export/import licensing, export controls of military and dual use technology;
- -standards, and sanitary and phytosanitary measures.
- -certain areas of intellectual property;
- -amendments to several investment laws.
We believe that this draft legislation should be  circulated well prior to the next Working Party
to allow Working Party members to reviews and comment upon it for discussion at that
meeting.
Answer:
The above-mentioned draft legislation except anti-dumping, countervailing duties and
safeguards (Georgia refrains fr om imposing anti-dumping, countervailing and safeguard measures
until WTO consistent legislation has been adopted and properly notified to the WTO) will be
circulated prior to the next Working Party. As fo r the foreign trade law it was transformed into the
Presidential Decree on Managing the WTO Relationship.
Question 11.
Please provide an update on the recent measures undertaken to implement the legislative
programme to adjust Georgia' s  trade policy to conform to WTO rules.
Answer:
The following specific actions have been taken to enact or revise legislation or regulations to
meet specific WTO requirements:
Customs Valuation Regulations
The Ministry of Finance prepared detailed regulations to guide the Customs Department in
applying the provisions of the WTO Agreement on the Implementation of Article VII of the GATT
1994 ("Customs Valuation Agreement").  These regulations have been recently revised to incorporate
the Decisions of the WTO Customs Valuation Committee concerning ‘Valuation of Carrier Media
Bearing Software”  and “Treatment of Interest Charges” (WTO/VAL/6&8).  Issuance of theseregulations has been delayed by reorganization of the Ministry of Finance and the CustomsWT/ACC/GEO/18
Page 5
Department, but it is expected that they will be formally issued by the Ministry of Finance in the very
near future.  A training seminar to introduce the new regulations to Customs officials was presented
by the Crown Agents valuation expert from 6-10 July 1998.
Rules of Origin Regulations
The Ministry of Finance prepared detailed regulations for the Customs Department covering
the requirements of the WTO Agreement on Rules of Origin.  As with the Customs Valuation
Regulations, issuance of the Rules of Origin regulations has been delayed, but is expected in the near
future.
Antidumping, Countervailing Duties, and Safeguards Regulations
The Government of Georgia has continued its policy of not proceeding with detailed
legislation in these areas.  While Georgia retains the right to apply these measures at some point in the
future, it will not do so until detailed legislation and implementing regulations fully consistent withWTO requirements have been prepared.
Presidential Decree on Managing the WTO Relationship
The Ministry of Trade has prepared a draft presidential decree assigning the responsibilities
for managing various aspects of the relationship between Georgia and the WTO after accession is
achieved.  Having such a decree in place will help Georgia to transition smoothly from the accessionto the post-accession phase.  Final issuance of this decree depends on further discussions in the
Government.
Excise and VAT Taxes
Under current legislation, the excise rates for domestic and imported products, except for
cigarettes, became the same as of 1 January 1999.  VAT on excisable products other than cigarettesalso became consistent under current law on 1 January; the 20 per cent ad valorem VAT rate will be
applied to the wholesale price plus excise for domestic products, and to the customs value plus duty
and excise in the case of imports.
Under current law, the special treatment of imported cigarettes expires on 1 April 1999. At
that time, imports will come under the same excise and VAT provisions as domestic products.  Thequestion of differential excise treatment of high- and low-quality cigarettes is under review; the price
data is being collected to determine whether the diff erential specific rates are in fact consistent when
viewed in terms of ad valorem equivalents.
Excise stamps for cigarettes and alcoholic beverages, both domestic and imported, are
scheduled for introduction on 1 February 1999, under current law.  This date is likely to be delayed to
1 March. Detailed regulations governing the administration of excise stamps has yet to be prepared.
Land Privatization
A new Law on Administration and Disposal of State-owned Non-Agricultural Land, which
provides for the privatization of non-agricultural land throughout Georgia has been approved by
Parliament and implemented.  Large numbers of individuals and enterprises are now in the process of
privatizing the land they have until now occupied but not owned.WT/ACC/GEO/18
Page 6
Capital Markets
A law establishing a stock market and providing for securities registration and regulation,
prepared by USAID-supported experts, was enacted during the fall session of Parliament.
Amendments to the law on entrepreneurs, providing for improved stockholder protection and other
provisions necessary to encourage the development of a securities market in Georgia have also beenapproved by Parliament.
Log Exports
The Law on Regulation of Forest Exploitation in the Territory of Georgia was adopted by
Parliament at the end of June 1998.  This law provid es that exports of logs will be allowed, subject
only to licenses issued by the Ministry of Trade and Foreign Economic Relations.  These licenses will
be granted in all cases in which the logs in question have been cut in conformance with the
requirements of the State Forest Department.  The Law on Export License Fee for Wood RawProducts of 31 March 1998, has been abolished.  The purpose of the export licence requirement is to
prevent the export of logs taken from Georgia's forests in violation of the environmental protection
regulations.
Scrap Exports
The Law of Georgia on Regulation of Export an d Re-export of Scrap and Waste of Black and
Colored Metals was passed by Parliament at the end of June 1998, and was signed by the President in
June.  This law requires an export license and the payment of a special duty, set at 28 Laries
(approximately US$21) per ton for scrap other than copper or aluminum; at 475 Laries
(approximately US$355) per ton for copper, and at 320 Laries (approximately US$240) per ton for
aluminum.  The new law is effective from 1 July 1998, and abolishes the prohibition on scrap exportscontained in the Law of Georgia #637-II of 21 February 1995.
Business Licensing Law
A new draft law concerning licensing of businesses has been prepared and was formally
considered by Government (the final stage before submission to Parliament) in early December.
Parliamentary consideration is scheduled for February 1999.  The law will apply equally to bothdomestic and foreign-owned businesses in Georgia. The draft is quite favorable to business in that it
restricts the authority of ministries to control businesses through the issuance of licenses to those
situations involving safety, consumer protection, environmental protection, or national security issues.
Accounting Law
A draft Law on Bookkeeping and Accounting has passed first reading in the Parliament.
Administrative Procedure Act
A general Administrative Procedure Act, which will establish the procedures by which
judicial appeal of administrative actions may be pursued, has been prepared and will be formally
submitted to Parliament on 22 December.  Parliamentary approval is expected in the spring session.
The law has been prepared with the assistance of  experts provided by USAID and European donors.
Although certain rights of appeal are contained in spec ific laws or regulations (for instance, there is a
specific right of appeal contained in the custom s valuation and rules of origin regulations), the
Administrative Procedure Act will systematize such rights in all areas, thus covering such additional
WTO-related areas as business licensing, appeal of export or import license denials, etc.  An English
translation will be available in mid-December.WT/ACC/GEO/18
Page 7
Insurance Legislation
Amendments to the Law on Insurance, adopted on 30 October, 1998, provide that the
restriction limiting foreign ownership of insura nce companies to 49 per cent is abolished, the
provision to become effective upon Georgia’s accession to the WTO.
Government Procurement Legislation
A new law on government procurement, based on the UNCITRAL model law and prepared
with the help of European experts through GEPLAC, passed Parliament on 11 December 1998.  An
English translation will be made available to WTO in the near future.  Further work will be
undertaken to amend this law in order to be fully compliant with the Agreement on Government
Procurement.  A list of the government entities to which the law will apply will be provided to the
WTO.
5. Laws and Legal Acts
Question 12.
The responses to questions 29 and 30 indicate that normative acts may be published in a variety
of locations. As outlined in Article X of the GATT and in several WTO Agreements, laws,
regulations, judicial decisions, and administrative rulings of general application dealing with
trade must be published in a manner that  permits governments and traders to become
acquainted with them, and in some cases for comment prior to finalization.
Can Georgia indicate specifically which organs are relevant to the obligations contained in
Article X of the GATT and the WTO Agreemen ts on SPS, TBT, TRIPS, GATS, Import
Licensing Procedures, Customs Valuation, etc.?
Answer:
The draft "Decree of The President of Georgia on accession of Georgia to WTO" is enclosed
(see Annex II). Organs that are relevant to the obligations contained in Article X of the GATT are
indicated in this draft decree.
Question 13.
We suggest that Georgia review its current diffuse publication strategy and consider focusing
its publication requirements on WTO issues in a relatively small number of publications,
which it will list for the Working Party.
Answer:
In accordance with the paragraph 5 of Article 38 of the Law of Georgia "On Normative
Acts" (29 October1996), a normative act cannot take effect before its official publication. An
official publication of normative acts of Georgia is the first publication of their entire text in
"Sakartvelos Kanonmdeblobis Matsne" (Georgian Legislation News).
Question 14.
Could Georgia submit a copy of the Administrative procedure  Act once presented to the
parliament?WT/ACC/GEO/18
Page 8
Answer:
The Code of Administrative Court Procedures of Georgia is enclosed. (see Annex II)
Question 15.
The current system of publication of normative acts in various publishing journals  according
to the authority that adopts the normative act may be a source of serious confusion and lack of
proper information for foreign traders. Georgi a should consider creating a single official
newspaper for the publication of normative acts.  Please list the relevant publications that
correspond to Georgia's transparency requirements after accession.
Answer:
"Sakartvelos Sakanonmdeblo Matsne" is an official newspaper for the publication of
normative acts and it is available for public.
6. Description of Judicial, Arbitral or Administrative Tribunals or Procedures
Question 16.
The responses to questions 31 and 32 ofWT/ACC/GEO/10 appear to indicate that the
provisions on "gilt of appeal described inWT/ACC/GEO/4 will not be included in any
implemented legislation, and that for customs valua tion only, provisions will be included in the
new regulations under development.  Is that correct?
If no new comprehensive appeal procedures are to be implemented, it is important that
Georgia respond to question 28 inWT/ACC/GEO/4 and question 32 inWT/ACC/GEO/10, i.e.:
Please describe in detail the process of appeal to the judiciary available for traders who contest
administrative rulings by executive agencies,  e.g., in the area of customs valuation,
classification and duty, taxation of imports, standards and sanitary certification andinspection, application for import or export licences, measures taken against dumping and
subsidized imports and intellectual property protection.
If these provisions have not yet been enacted in Georgian law or regulation, please indicate
when they will come into force.
The right of appeal of administrative decisions to an independent body is a critical component
of the rule of law embodied in WTO provisions. The discussion inWT/ACC/GEO/3 and the
responses to questions on the right of appe al provided on issues covered by the WTO
Agreements show a willingness by Georgia to address the issue, but do not make clear how
Georgia intends to fulfil its WTO obligations in this area.
Georgia should review this situation and rep ort on the issue to the Working Party for
discussion at the next Working Party meeting.
How does Georgia intend to regulate the right of appeal against decisions, actions or inaction
of Custom bodies?WT/ACC/GEO/18
Page 9
Answer:
As for the right of appeal of persons engaged in commercial activities the above-mentioned
persons (traders) can apply to the Court of the Fi rst Instance, in accordance with article XI of the
civil procedure code of Georgia. In order to appeal the decisions of the Court of the First Instance,
legislation provides for the right to apply to appellate courts.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations
(a) Registration and right to trade
Question 17.
Georgia has stated that the former State monopo ly in foreign trade has been abolished and
that no restrictions existed on the right of individuals and enterprises to import and export
goods into its customs territory, except as pr ovided in WTO Agreements.   Can Georgia
confirm that individuals and firms are not restricted in their ability to import or export based
on their registered scope of business and the cr iteria for registration are generally applicable
and published in the official journal?
Answer:
Georgia confirms that individuals and firms are not restricted in their ability to import or
export based on their registered scope of business and the criteria for registration are generally
applicable. Normative acts that regulate export and import are published in the official press.
Question 18.
We seek Georgia's commitment that from the date of accession, it will ensure that all of its
laws and regulations relating to the right to trad e in goods, and all fees, charges or taxes levied
on such rights will be in full conformity with  its WTO obligations, including Articles VIII: 1
(a), XI: 1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws and
regulations in full conformity with these obligations.
Answer:
Georgia undertakes commitment that all its laws and regulations relating to the right to trade
in goods, and all fees, charges or taxes levied on such rights will be in full conformity with WTO
requirements.
(d) Other duties and charges
Question 19.
Could Georgia explain in details how the ad valorem  rate  proposed for customs user fees
covers the costs of rendered? Could Georgia confirm that customs user fees would be applied in
consistency with GATT Art. VIII on  accession.WT/ACC/GEO/18
Page 10
Answer:
The existing rate of Customs User Fee of 0.3 per cent, which is in nonconformity with the
Article VIII:1, will be reduced to 0.2 per cent from 1 April 1999, and further reduced to 0.15 per
cent upon accession to WTO.  A study has been undertaken to develop data to determine the
allowable level for the Customs User Fee, and the final fee level, with appropriate minimum andmaximum levels, will be established based on this study. After accession to WTO, the Customs User
Fee will meet WTO requirements.
Question 20.
The response to question 42 inWT/ACC/GEO/10 confirms that Georgia is developing a plan
for bringing its 0.3 per cent ad valorem customs fee into line with WTO provisions.   We seek
circulation of a specific plan to address this i ssue be circulated in an accession document prior
to Georgia's next Working Party meeting.
Answer:
See answer to Question 19.
Question 21.
According to the reply no. 46 in document WT/ACC/GEO/4 Georgian regulations provide for
imposition of seasonal duties for the period of up to 4 months. Are these duties and periods oftheir validity indicated in the Customs Tariff of Georgia? If not, on what agricultural products
such seasonal duties may be imposed? Does Georgia intend to change the regulations
concerning seasonal duties?
Answer:
The rates of seasonal duties and periods of their validity are not indicated in the Law on
Customs Tariff of Georgia. The concrete types of products are not yet stipulated by the Law on
Customs Duties of Georgia on which the seasonal  duties may be imposed. However, Georgia has
reflected the system of seasonal tariffs in its offer on goods. Any legislative changes in this area will
be in full conformity with the WTO requirements.
Question 22.
According to the contents of Georgia offer on goods (as reproduced in document
WT/ACC/SPEC/GEO/4/Rev.2) final rates of duty which differ from the bound rates will enter
into force as from the date of accession. Does this mean that the bound rates of duties which are
equal to the final rates level, as indicated in the offer, are at present in force?
Answer:
The bound rates of duties which are equal to the final rates level, as indicated in Georgia's
offer on goods, are not at present in force.WT/ACC/GEO/18
Page 11
(f) Import licensing procedures
Question 23.
As far as import permits are concerned, is there a differential  treatment between import from
CIS or non CIS countries? If so please explain the difference.
Answer:
There is no differential treatment betw een import from CIS and non CIS countries.
Question 24.
Could Georgia briefly describe the licence requirements  for import, production and sale of
tobacco products as foreseen resent presidential Decree?
Answer:
The Presidential Decree N 391 "On Activities Addressing Regulation of Production, Import,
Wholesale and Retail Trade in Tobacco Products in Georgia" is enclosed (see Annex II).
(h) Customs valuation
Question 25.
The responses to questions 56-60 indicate that Georgia has revised its legislation on customs
valuation with the enactment of the Law on Customs Tariff and Duty on 20 March 1998 and
the abolition of the Law on Customs Duty of 27 December 1996. We commend Georgia for itsrapid implementation of a legal framework for the determination of customs valuation
consistent with WTO provisions. We will supply  detailed comments on the new legislation, in
writing, separately.
Has Georgia included in the law the contents  of the Interpretative Notes to the WTO
Valuation Agreement and the Decisions of the WTO Customs Valuation Committee on"Valuation of Carrier Media Bearing Softwa re for Data Processing Equipment", on the
"Treatment of Interest Charges in the Customs Value of Imported Goods"?
Answer:
These provisions have been included in the draft Regulations (9 December 1998) governing
the Customs Valuation.
(j) Pre-shipment inspection
Question 26.
We remain interested in Georgia's plans to secu re the services of a PSI firm? If this occurs, we
would appreciate a report from Georgia on what duties it will undertake and how will they be
implemented.WT/ACC/GEO/18
Page 12
Answer:
The Government, following discussions with the World Bank and the IMF, has decided to
invite companies providing PSI and related services to propose ways to improve customs collection in
Georgia, including imposing a pre-shipment inspection requirement on exporters.  The tender is to be
issued in January; the target date for implementation is 1 April 1999.  A Presidential Decreeannouncing a tender to select a contractor was signed in early December.
In order to ensure that any decision on PSI is ta ken with consideration of the implications for
Georgian accession to the WTO, the Agreement on Pre-Shipment Inspection and the December 1997
Report of the Working Party on Pre-Shipment Inspection have been translated into Georgian for use
by the Ministry of Finance.
(k) Application of internal taxes on imports
Value Added Tax
Question 27.
In response to question 64 ofWT/ACC/GEO/10, Georgia states that it exempts from VAT
imports of "scientific, artistic, and literary books and journals, the authors of which are
citizens of Georgia".
While we appreciate the purpose of these exceptions, their application violates Article III of
the GATT.
We suggest that in the context of its accession to the WTO, Georgia contemplate establishing a
"zero" VAT rate for the "scientific, artistic , and literary books and journals" subject.
In accordance with the reply  to the question no. 71 and question no. 73 in document
WT/ACC/GEO/10 “The Government of Georgia understands that certain aspects of itstreatment of alcoholic beverages and tobacco products are not fully consistent with WTO
rules”. A revision of duties, excise tax and VAT tax had been envisaged to take place in the
summer of 1998 with an aim to bring these taxe s into compliance with WTO rules. Have the
relevant regulations been amended?
Answer:
At present the work is going on to change the appropriate provisions of the Tax Code of
Georgia and to bring them into compliance with Article III of the GATT.
Excise and other taxes
Question 28.
At the last Working Party  meeting, delegations noted that Georgia's excise rates on alcohol
and tobacco products appeared to vary based on  the basis or characteristics in a manner that
could disadvantage imports, contrary to Article III of the GATT. In its response to questions71 and 73 of WT/ACC/GEO/10, Georgia has acknowledged that certain aspects of its
treatment of alcoholic beverages and tobacco products are not fully consistent with WTO
rules, and that a revision of the customs, excise and VAT taxes imposed on imports of these
product,? was discussed during the summer of 1998.WT/ACC/GEO/18
Page 13
Georgia stated that changes would be made to  bring these taxes fully into compliance with
WTO rules, e.g., Article III of the GATT. What were the results of Georgia's review of tills
situation? What does Georgia intend to do to br ing its excise taxes on these products into line
with WTO provisions?
Answer:
The system of combined taxes imposed on imported alcoholic beverages which included
customs duty, VAT and excise tax was abolished since 1 January 1999. Accordingly, since 1
January 1999 the rates of excise taxes on imported and domestically produced alcoholic beverages
became be equal.
Question 29.
As for taxation of tobacco products, there is  a difference in taxation of imported and
domestically produced cigarettes. However, Geor gia tries to bring its system of taxation of
cigarettes in compliance with the WTO requirements.  Could Georgia update this working
party on the status of development of the le gislative changes necessary to bring its excise
taxation system in full conformity with  WTO rules?
Answer:
The need for consistent duty, excise taxation of all spirits, following the recent WTO panel
decisions in Japan II and Korea - Alcoholic Beverages has been discussed in the Ministry of Finance.
The Ministry is preparing amendments to the tax code, for enaction in the spring Parliament, to meet
this requirement. Under current legislation, the excise rates for domestic and imported products,
except for cigarettes, became the same since 1 January 1999.
Under current law, the special treatment of imported cigarettes expires on 1 April 1999. At
that time, imports will come under the same excise provisions as domestic products.  The question of
differential excise treatment of high- and low-quality cigarettes is under review; the price data is being
collected to determine whether the differential spec ific rates are in fact consistent when viewed in
terms of ad valorem equivalents.
Question 30.
Are excise stamps applied to both imported and domestically produced goods?
Answer:
Excise stamps are applied to both imported and domestically produced goods.
Question 31.
As referred to in document WT/ACC/GEO/12. page 5, Georgia commits itself to its excise  and
VAT system in compliance with WTO standards. Does this mean that the different excise rate
for different classes of cigarettes as stipulated  in the present tax Code (article 130) will be
abolished upon accession   to the WTO. Georgia needs to ensure transparency of the procedure,.
standards and requirement for determining the class of cigarettes,  and an equal approach in
determining   the class for domestically produced and imported cigarettes.WT/ACC/GEO/18
Page 14
Answer:
Georgia confirms that it will bring the taxation of  cigarettes fully into conformance with WTO
requirements prior to accession, including abolishi ng discrimination between imported and domestic
products in the application of internal taxes, and di scrimination among classes of cigarettes to the extent
such discrimination would violate GATT Article III.
Question 32.
As  stipulated in document WT/ ACC/GEO/12, page 6, two presidential Decrees have been
issued- on the introduction  of excise stamps on  production sales and import of tobacco products
and alcoholic beverages, and on the establishing of licensing requirements   for import ,
production en sale of tobacco products. can Georgia confirm that these documents  envisage
equal and non- discriminatory treatment of domestic and imported products as well as to local
and foreign persons  Please, provide copies of the decrees.
Answer:
Georgia confirms that excise stamps for t obacco and alcoholic beverages will be applied
consistently to imported and domestic products, wi thout discrimination agai nst imported products that
would be in violation of GATT Article III.  Copies of the decrees in question were subm itted.
Regulations implementing these decrees are still in preparation, and will be notified to WTO as soon asthey are available.
Question 33.
Article 125 (2)  of the tax code of Georgia stipulates that in the case of imports, the of the
taxable transaction shall be the customs value of  the goods, but not less than "wholesale market
price, excluding the excise and VAT". We seek  confirmation that in approximating is tax
legislation  to the WTO standards by accessio n to the WTO. Georgia will introduce taxation
based of the customs value of imported goods for each transaction.
Answer:
The basis for the calculation of excise taxes on tobacco and alcoholic products is the volume of
goods; i.e., the tax in question is specific rather than ad valorem .  In the case of excise taxes on other
products, which are levied on an ad valorem  basis, Georgia confirms that the basis for excise taxation of
imported goods shall be the customs value, dete rmined in accordance with  the Customs Valuation
Agreement, plus the applicable tariff and other dut ies.  The phrase "but not less than the wholesale
market price" will be deleted from the tax code prior to accession.
Question 34.
Under article 21 (1) of the law of Georgia on Customs Tariffs and Duties, the customs value of
goods is determined in accordance with the cont ract costs, but using the prices that are not
lower than the world average prices approved by the Ministry of Economics. Can Georgia
confirm that by its accession to the WTO, this will be brought in compliance with  WTO  rules?
Answer:
The provision in question was contained in Artic le 5(6) of the old La w on Customs Tariffs and
Duties, dated 27 December 1996.  This law was superseded by the current Law on Customs Tariffs andduties, dated 20 March 1998.  The currently effective provision on customs valuation is contained inWT/ACC/GEO/18
Page 15
Article 10 of the new law, which contains no refe rence to world average prices.  More generally,
Georgia is fully committed to customs valuation in accordance with the WTO Customs Valuation
Agreement, implementing regulations for which are currently under preparation.
(1) Rules of origin
Question 35.
Georgia states in response to question 79 that in accordance with the new Tariff Law enacted
in March 1998, new regulations on rules of orig in are being prepared that will be based
directly on and be fully consistent with th e WTO provisions and that the English language
version of these regulations will be forwarded to the WTO Secretariat as soon as they are
officially issued.  We look forward to revie wing these regulations when they are issued.
Answer:
With technical assistance of the IRIS (Institutional Reform and Informal Sector, USAID) the
WTO consistent draft regulations on Rules of Origin has been prepared. The Ministry of Finance
has submitted it to the Customs Department for approval. The draft regulations has been submitted
for review to the WTO Secretariat.
(m) Antidumping regime
(n) Countervailing duty regime(o) Safeguard regime
Question 36.
Georgia has stated that it is reviewing its trad e remedy legislation and will, in the context of
the foreign trade law, enact laws and regulat ions implement to trade remedies in a WTO-
consistent fashion.
We look forward to reviewing Georgia's revised legislation on these issues.
We seek a commitment that Georgia will no t apply any anti-dumping, countervailing or
safeguard measure until it has 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.
Answer:
As it was stated by Georgia it will refrain from imposing any anti-dumping and
countervailing measures until WTO consistent legislation has been enacted and properly notified to
the appropriate WTO committees.
Question 37.
In the elaboration of any legislation concerning anti-dumping duties, countervailing duties and
safeguards, Georgia should 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 onWT/ACC/GEO/18
Page 16
Safeguards. After such legislation has been im plemented, Georgia would only apply any anti-
dumping duties, countervailing duties and safeguard measures in full conformity with the
relevant WTO provisions.
Answer:
If Georgia does not complete the implementation of WTO consistent legislation by the date
of accession, it will refrain from imposing any safeguard measures, until WTO consistent legislation
has been enacted and properly notified to the appropriate WTO committees.
2. Export  Regulations
Question 38.
We seek Georgia's confirmation that it does not maintain subsidies including export subsidies
which meet the definition of a prohibited subs idy, within the meaning of Article 3 of the
Agreement on Subsidies and Countervailing Measures and that it will not introduce suchprohibited subsidies in the future.
Answer:
Georgia confirms that it does not maintain subsidies including export subsidies which meet
the definition of a prohibited subsidy, within the meaning of Article 3 of the Agreement on
Subsidies and Countervailing Measures and will not introduce them in future.
(h) Import duty drawback schemes
Question 39.
Are raw materials and semi-finished goods imported in Georgia under the existing import duty
drawback schemes physically incorporated in the exported goods?
Answer:
Raw materials and semi-finished goods imported in Georgia under the existing import duty
drawback schemes are physically incorporated in the exported goods.
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policies
Question 40.Can Georgia confirm that any subsidy programs existing or developed in the future will be
administered in line with the Agreement on Subsidies and Countervailing Measures and that
all necessary information on programs to be noti fied, if such exist, will be provided to the
Committee on Subsidies and Countervailing Measures in accordance with Article 25 of the
Agreement upon entry into force of Georgia' s Protocol of Accession?
Answer:
Georgia confirms that any subsidy programs existing or developed in the future will be
administered in line with the Agreement on Subsidies and Countervailing Measures that allWT/ACC/GEO/18
Page 17
necessary information on programs to be notified, if such exist, will be provided to the Committee
on Subsidies and Countervailing Measures in accordance with Article 25 of the Agreement upon
entry into force of Georgia' s Protocol of Accession.
Question 41.
A date is missing in the reply to question no. 170 in document WT/ACC/GEO/10 indicating
entry into force of the free trade agreement with Ukraine. Could Georgia provide it?
Answer:
The free trade agreement with Ukraine entered into force on 4 June 1996.
(b) Technical regulations and standards
Question 42.
Could Georgia commit itself to implement the TBT Agreement from the date of accession and
update the Working Party on the steeps taken in this direction?
Answer:
A Presidential Decree on Measures Implementing the Requirement of the WTO Agreement
on Technical Barriers to Trade was adopted on 5 December 1998, which envisages the detailed plan
of actions. This document has been submitted to the WTO Secretariat for review.
Question 43.
In the answer to question 55 in document WT/ACC/GEO/ 10 no information is provided  with
respect to the issuance of a certificate of conformity. Can Georgia provide information about
line list of goods for which such certificate is required, the procedure and terms for its
issuance, fees collected , necessary  documents samples and others. Can Georgia confirm that
the obtaining of a certificate is not related  to the establishment of additional barriers to trade
Answer:
The required information is provided in the document WT/ACC/GEO/3.
(c) Sanitary and phytosanitary measures
Question 44.
We appreciate Georgia's clearly stated intent to implement both the TBT and SPS Agreements
from the date of accession.
Georgia's legislation on measures required by the TBT and SPS Agreements, and its standards
and certification system in general, are not at  this time WTO consistent. Full implementation
of both Agreements, with a certification system for imports that does not present unnecessary
barriers to trade, prior to accession is a fundamental factor in completing Georgia's accession
process.WT/ACC/GEO/18
Page 18
The responses inWT/ACC/GEO/10, however, do not provide sufficient information on the
specific actions Georgia has undertaken since la st Working Party meeting to meet TBT and
SPS obligations.
We urge Georgia to circulate its Action Plan to Working Party members as an accession
document as soon as possible, in order to ad vance the process. Near term review and comment
by W'TO Members would help ensure that concerns are being addressed properly and
perhaps eliminate the need  for future amendments.
In any case, this Action Plan should be circ ulated for comment well prior to the next Working
Party session. We have provided an outline of  our position on implementation of the two
Agreements to the Georgia delegation bilaterally.
We hope that hope this will spark early respo nse from Georgia on these issues and we ask
Georgia to address the issues raised in thei r communication on SPS and TBT implementation
to the Working Party.
We also renew our request, circulated inWT/ACC/GEO/10, that Georgia complete a
"Statement of Implementation" on technical barriers to trade.
Answer:
Based on discussions with the Ministries of Foreign Affairs and of Agriculture, IRIS
provided short-term technical assistance to assist the various ministries concerned with sanitary and
phytosanitary import control measures to revise their procedures to meet WTO requirements.  A
detailed working plan was prepared to bring Georgian procedures into conformance with WTO
requirements.   An "Enquiry Point" has been established as required by WTO.  An Interministerial
Coordinating Body for SPS Implementation ("ICB" ) has been established, chaired by the Deputy
Minister of Agriculture responsible for intern ational issues.  A working-level body has been
established under the ICB, with representatives of each concerned agency identified.  A Project
Director and staff have been appointed, and an office provided and equipped. As of July 1988, the
enquiry point was in full operation.
A Presidential Decree on Measures Implementing the Requirement of the WTO Agreement
on Technical Barriers to Trade was adopted on 5 December 1998, which includes the precise plan of
actions has been submitted to the WTO Secretariat for review.
Question 45.
Is the enquiry point referred to in the response to question 88 operational? If so, what is its
address and how can it be accessed? Does it cover SPS Agreement requirements as well as
TBT? If not, what institution addresses these requirements for the SPS Agreement.
Has the publishing house "Standarti" referred to in the response to question 90 established
under the State Department of Standardization, Metrology and Certification of Georgia
("Sakstandarti") to provide for the publication of standards and other draft technical
documents for prior comments yet published any standards related materials for review and
comment? Does it handle prior publication for materials covered by the SPS Agreement as
well? If not, what institution addresses these requirements for the SPS Agreement.WT/ACC/GEO/18
Page 19
Answer:
A Presidential Decree on Measures Implementing the Requirement of the WTO Agreement
on Technical Barriers to Trade was adopted on 5 December 1998, which includes the precise plan of
actions. This document has been submitted to the WTO Secretariat for review. In addition,
agreement  has been reached with Japan to provide technical assistance to bring Georgia'sprocedures for enforcing technical standards into conformance with WTO requirements. A Georgian
delegation was in Tokyo in November and early December for training on TBT issues. At present
the TBT enquiry point is not full operational. But creation of the WTO consistent enquiry point is
provided for by the above mentioned Decree.
Based on discussions with the Ministries of Foreign Affairs and of Agriculture, IRIS
provided short-term technical assistance to assist the various ministries concerned with sanitary and
phytosanitary import control measures to revise their procedures to meet WTO requirements.  Adetailed working plan was prepared to bring Georgian procedures into conformance with WTO
requirements.  An "Enquiry Point" has been established as required by WTO.  An Interministerial
Coordinating Body for SPS Implementation ("ICB" ) has been established, chaired by the Deputy
Minister of Agriculture responsible for intern ational issues.  A working-level body has been
established under the ICB, with representatives of each concerned agency identified.  A ProjectDirector and staff have been appointed, and an office provided and equipped. As of July 1988, the
enquiry point was in full operation.
(d) Trade-related investment measures
Question 46.
We support Georgia's commitment that it does not and will not maintain any measures
inconsistent with the TRIMS Agreement and wi ll apply the TRIMS Agreement from the date
or accession without recourse to any transitional period.
Answer:
Georgia commits that it does not and will not maintain any measures inconsistent with the
TRIMS Agreement and will apply the TRIMS Agreement from the date or accession withoutrecourse to any transitional period.
(e) State-trading practices
Question 47.
Georgia has stated that there are no enterp rises meeting the criteria for a state-trading
enterprise in Georgia at this time.
Can Georgia confirm that it will apply its laws and regulations governing the trading activities
of state-owned enterprises and other enterprises with special or exclusive privileges in full
conformity with the provisions of the WTO Ag reement, in particular Article XVII of the
GATT 1994 and the Understanding on that Article and Article VIII of the GATS, and that
Georgia will notify any enterprise falling within the scope of Article XVII?WT/ACC/GEO/18
Page 20
Answer:
Georgia makes the commitment that its laws a nd regulations governing the trading activities
of state-owned enterprises and other enterprises with special or exclusive privileges will be in full
conformity with the WTO requirements.
(l) Government procurement practices
We support Georgia's commitment to join the WTO Government Procurement Agreement.
4. Policies Affecting Foreign Trade in Agricultural Products
(b) Exports
Question 48.
We appreciate Georgia's commitment not to use agricultural export subsidies in the future
and to bind its agricultural export subsidies at zero.
Answer:
As it was stated many times by Georgia, it will bind its agricultural export subsidies at zero.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights
(a) Copyright and related rightsQuestion 49.
The response to question 126 in WTO/ACC/GEO/10 asks whether, in addition to Book 4 of
Georgia's Civil Code, Georgia's Parliament will enact a Law on Copyright and Neighboring
Rights.  Please give us an update on the status of the draft legislation regarding copyright and
neighboring rights.
Answer:
The draft law will have a first hearing in Parliament in April 1999.
Question 50.
Article 1045 of Georgia's Civil Code provides an exclusive right to allow or ban the remake,
arrangement, or other kind of working up of th e work and the right of public showing of the
work, public performance, public broadcast, including cable transmission.
Does this provision include cinematographic adap tation or reproduction that authors are to be
granted under Article 14 of the Berne Convention?WT/ACC/GEO/18
Page 21
Answer:
Article 1045 includes cases envisaged by the Article 14 of the Berne Convention. Article
1045 should be read together with the Article 1039, 1040 and 1041 of the Civil Code.
Question 51.
Articles 1050 through 1061 impose limitations on the rights of authors.
With respect to each limitation, please expl ain the manner in which it conforms to the
obligation in TRIPS Article 13, that limitations and exceptions be confined to certain special
cases which do not conflict with a normal exploitation of the work and do not unreasonably
prejudice the right holder's legitimate interests.
Answer:
Articles 1050 through 1061 are confined to such cases as use for the studying purposes, for
providing information, making short records, etc., envisaged in Articles 9(2), 10, 10 bis, 11bis 3 of
the Berne Convention. Provisions of these Articles are confined to certain special cases which do
not conflict with a normal exploitation of the work and do not unreasonably prejudice the right
holder's legitimate interests.
Question 52.
Could Georgia please provide full details of how it complies with, or steps taken to comply with,
Article 3 ("national treatment") and Articl e 13 ("limitations and exceptions") of TRIPS.
Answer:
According to Article 1018 of the Civil Code copyright extends to the works of science, literature and
art, performance, phonogram and videogram, etc., which are protected by those international
agreements, to which Georgia is a party.
Limitations and exceptions envisaged in the Civil Code are confined to such cases as use for
the studying purposes, for providing information, making short records, etc., envisaged in Articles
9(2), 10, 10 bis, 11bis 3 of the Berne Convention. That Provisions Articles are do not conflict with a
normal exploitation of the work and do not unreasonably prejudice the right holder's legitimate
interests.
(b) Trademarks, including service marks
(c) Geographical indications
Question 53.
Please provide an update on the draft law on tr ademarks referred to in answer to question 137
of WTO/ACC/GEO/10.
Answer:
The Draft Trademark law passed the first reading in the Parliament in December 1998.  It is
expected that it will be enacted during the spring session, which begins in February.WT/ACC/GEO/18
Page 22
Question 54.
The response to Question 141 implies that, to be protected, well-known marks must be
registered. The Paris Convention, as incorporat ed into TRIPS by Article 2.1, requires that
well-known trademarks be protected without the necessity of registration.
Please verify whether registration is required for well-known to be protected. If so, please
explain how the law will be amended to conform to Article I á of the TRIPS Agreement and
Article 6 bis of the Paris Convention, as incorporated into the TRIPS Agreement by TRIPS
Article 2.1.
Answer:
According to Article 3.4 of the draft Trademark Law, well known marks are protected
without registration by virtue of the article 6 bis of the Paris Convention.
Question 55.
The reply to question No. 138 seems to indicate that a mark is only registered in those cases
where it is identical to a previously regist ered mark and where the products involved are
identical. However, Article 16.1 of the TRIPS Ag reement extends the protection to similar signs
for similar products. Please clarify.
Answer:
The Draft Law on Trademarks extends protection to similar signs for similar products  too.
Please see paragraphs 1, 2 and 3 of the Article 5 – Relative Grounds of Refusal of the Draft
Trademark law.  Those three paragraphs extend protection to the following:
- identical sign – identical product;
- identical sign – similar product;
- similar sign – identical product;
- similar sign – similar product.
Question 56.
Please also clarify whether and how well- known marks are protected in cases where no
confusion with another mark can be established, i.e. whether and how article 16.2 and 3 of theTRIPS Agreement are/will be implemented in Geor gian legislation. In the latter case, please
explain the steps that will be taken (including time-frame) to comply with the TRIPS
Agreement.
Answer:
Article 5.4 of the draft Trademark law says that
1. A trademark shall not be registered if it is identical to the well known mark;
2. A trademark shall not be registered if it similar  to the well known mark to such
extent, that creates likelihood of confusion;WT/ACC/GEO/18
Page 23
3. A trademark shall not be registered if it similar  to the well known mark to such
extent, that creates likelihood of association.
These rules apply even when the goods are different.
Also, according to the article 3.4 of the draft Trademark law well known marks are protected
without registration by virtue of the article 6 bis of the Paris Convention.
Question 57.
Please clarify whether and how Article 23.2 of the TRIPS Agreement – registration of a
trademark for wines and spirits which contains or consists of a geographical indication
identifying wines or spirits – is/will be implemented in Georgian legislation. In the latter case,
please explain the steps that will be taken to br ing Georgian legislation into compliance with the
TRIPS Agreement.
Answer:
According to Article 5.5. of the draft Trademark law a trademark shall not be registered if it is
identical or similar to the appellation of origin or geographical indication protected in Georgia. This
provision extends to wines and spirits and to other products as well.  Protection of geographical
indications identifying wines or spirits shall be regulated by the Law on Appellations of Origin and
Geographical Indication. The draft law is available at the WTO Secretariat.
(d) Industrial designs
Question 58.
The response to Question 148 of WTO/ACC/GEO/10 states that the draft patent law, after its
adoption, will govern protection of industrial de signs.  Please provide an update on the status
of the draft patent law.
Answer:
The Draft Patent Law passed the first reading in Parliament in December 1998.  It is
expected that it will be enacted during the spring session, which begins in February.
(e) Patents
Question 59.
Article 11 or the Statute on Inventions, No. 302 of 16 March 1992, gives patent owners the
exclusive right to derive income from the use of their inventions and to dispose of the invention
at their discretion by selling, assigning, or licensing it. Article 28 of the TRIPS Agreement
requires that patent owners have the right to prevent others from making, using, offering for
sale, selling, or importing a patented product or from using a patented process or using,
offering for sale, selling, or importing a product produced directly using such process. The
response to Question 151 of WTO/ACC/GEO/10 does not make clear flat each of the rightsrequired by TRIPS Article 28 are, in fact, assure d by Article 11 of the Statute on Inventions.WT/ACC/GEO/18
Page 24
Please describe with respect to each of the rights required to be provided patent owners under
Article 28.1, how a patent owner would be able to enforce his rights. For example, how would
Article 11 enable the owner of a process patent to prevent third parties from importing the
product produced directly by the patented process.
Answer:
The Statute on Inventions, cited in the question, will be abolished in the first half of the
1999 after the enactment of the Patent Law, the draft of which was already passed by the Parliament
in the first reading. Hence, article 11 of the Statute will become irrelevant.  the new Patent law shall
satisfy the requirement of TRIPS.
Question 60.
The response to Question 152 of WTO/ACC/GEO/10 does not make clear whether
importation of a patented product or the product produced using a patented process wouldsatisfy the "use" requirement in Article 73 of th e draft patent law.  Please explain whether
importation will satisfy the "use'' requirement under Georgian law.
Answer:
Under Georgian law, importation will clarify the "use" requirement.
Question 61.
Re question 159. Please clarify the patentability of non-biological processes for the production
of plants and animals. Could Georgia confirm that it would provide an effective sui generis
system for the protection of plant varieties as required by Article 27 (b) of TRIPS?
Answer:
Georgia protects plant varieties and animal breeds according to the Law on the Protection on
Plant Varieties and Animal Breeds.  A translation of the Law on the Protection on Plant Varieties and
Animal Breeds is available at the WTO Secretariat.
(g) Layout designs of integrated-circuit
Question 62.
The responses to Questions 160 and 161 did not provide any details regarding the draft
legislation being developed to protect integrated circuit layout designs.   Please provide a
general description of the provisions of the draft law for the protection of integrated-circuit
layout designs.
Answer:
The draft was prepared according to the section 6 of  TRIPS. Text of the draft will be sent to
the WTO secretariat after its conclusion.
Question 63.
Please give an update on the status of the legislation and the expected time of submission to the
Parliament and enactment.WT/ACC/GEO/18
Page 25
Answer:
the Draft Law on the Protection of Integrated Circuit Layout Designs will be submitted to
Parliament during its spring session.
(h) Requirements on undisclosed information
Question 64.
Article 8.2(g) of the Law on Monopolistic Activities and Competition makes "the obtaining,
acquisition, use, or distribution of scientific-technical, production, or trade information and
commercial secret" without the owner's permission a manifestation of unfair competition.
Article 20 authorizes the Antimonopoly Service to "conduct preventative measures to forestall
unfair competition"  and Article  21 authorizes the Service to order violators of the law to cease
the violation and, apparently, to prosecute violators, if they fail to obey such orders.
Please describe in detail, how the Antimonopoly Service performs its duties under the law as it
relates to undisclosed information.
Answer:
The Antimonopoly Service has not received information and/complaints  regarding any facts
envisaged in the article 8.2 (g) so far.
4. Enforcement
Question 65.
The response to Question 154 of WTO/ACC/GEO/10 gives information regarding the Civil
Code of Georgia as it relates to pirated copyrighted works and phonograms. It refers to them
as "counterfeit copies." No reference is made to counterfeit trademarked goods. Article 39 of
the Statute on Trademarks authorizes seizure of counterfeit goods on importation at therequest of the public prosecutor or other competent authority or interested party.
Please describe the authorities of the customs officials to stop pirated copyrighted works and
counterfeit trademarked products at the border as required by Articles 51-60 of the TRIPS
Agreement.
Answer:
Customs Department is preparing regulations to conform to the Articles 51-60 of the TRIPS
Agreement. Final language of the draft has not yet developed.
Question 66.
WTO/ACC/GEO/3 refers to Articles 1.47 and 166 of the Criminal Code as providing criminal
penalties for copyright piracy and trademark counterfeiting.  Please describe in detail the
manner in which these Articles are implemented in practice.WT/ACC/GEO/18
Page 26
Answer:
Because intellectual property protection is new for the former USSR countries, Georgian
policemen lack understanding of the concepts of copyright and trademark protection.  The Georgian
Government is planning seminars for law enforcement bodies. First such seminar is scheduled for 21-
22 March.  TACIS experts will conduct it.
Question 67.
In its reply to questions No. 154 the Government of Georgia describes in detail the remedies in
cases of copyright piracy. Please provide the sa me information in cases of wilful trademark
counterfeiting.
Answer:
According to Article 45.2 of the draft Law on Trademarks, in case of violation of the
exclusive rights a trademark owner can apply to court and request:
(i) to stop acts, violating his rights;
(ii) destruction of all labels, drawings, packages, packaging and  advertisements which
contain registered mark, its copy or imitation;
(iii) destruction of all the devices, designed for making counterfeited mark, and, it is
impossible to separate marks from the goods, destruction of the goods, bearingcounterfeited marks.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH 
THIRD COUNTRIES
1. Bilateral agreements  relating to foreign trade in goods and services
Question 68.
Can Georgia confirm that it will become a signatory to the Agreement on Trade in Civil
Aircraft upon accession to the WTO withou t exceptions or transitional period?
Answer:
Georgia will become a signatory to the Agreement on Trade in Civil Aircraft, however it
will ask for some transitional period.
2. Economic integration: customs union and free trade area agreements
Question 69.
Will Georgia confirm that it will observe th e provisions of the WTO including Article XXIV of
the GATT 1994 and Article V of the GATS in its participation in trade agreements, and ensure
that the provisions of these WTO Agreements for notification, consultation and other
requirements concerning free trade areas and customs unions of which Georgia is a member
are met from the date of accession?WT/ACC/GEO/18
Page 27
Answer:
Georgia confirms that it will observe the provisions of the WTO including Article XXIV of
the GATT 1994 and Article V of the GATS in its participation in trade agreements, and ensure that
the provisions of these WTO Agreements for notification, consultation and other requirements
concerning free trade areas and customs unions of which Georgia is a member are met from the dateof accession.
Question 70
Can Georgia confirm it will upon accession, subm it notifications and copies of its Free Trade
Area and Customs Union Agreements to the Committee on Regional Trade Agreements
(CRTA)?
Answer:
Georgia has already submitted its free trade agreements to the WTO Secretariat.
(WT/ACC/GEO/4/Add.1)  At the same time it should be mentioned that Georgia is not a member of
any free trade area or customs union.
__________