WT/REG118/7  
 
13 April 2017 
(17-2030) Page: 1/22 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT BETWEEN GEORGIA  AND THE RUSSIAN FEDERATION  
(GOODS ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement between 
Georgia and the Russian Federation has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorsement o r acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Peter Milthorp 
(tel: +41 22 739 5016). Any statistical questions arising from this report may be 
addressed to Ms. Row ena Cabos (tel: +41 22 739 5185). WT/REG118/7  
 
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TABLE OF CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 3 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ......................  6 
2.1   Background Information  ................................ ................................ ...............................  6 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  7 
3.1.1    General provisions  ................................ ................................ ................................ .... 7 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  8 
3.1.3    Liberalization schedule  ................................ ................................ ..............................  9 
3.1.3.1    Georgia  ................................ ................................ ................................ ................  9 
3.1.3.2    Russian Federation  ................................ ................................ ................................ 10 
3.1.3.3    Exemptions  ................................ ................................ ................................ .......... 10 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....12 
3.2   Rules of origin  ................................ ................................ ................................ ............ 12 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 13 
3.4   Regulat ory Provisions of the Agreement  ................................ ................................ ........ 14 
3.4.1    Standards  ................................ ................................ ................................ ............... 14 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......14 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 14 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 14 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .15 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 15 
3.4.5    Customs -related procedures ................................ ................................ ...................... 15 
3.5   Sector -Specific Provisions of the Agreement  ................................ ................................ ..15 
4   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  15 
4.1   Transparency  ................................ ................................ ................................ ............. 15 
4.2   Current pay ments and capital movements  ................................ ................................ .....15 
4.3   Exceptions  ................................ ................................ ................................ ................. 15 
4.4   Accession and Withdrawal ................................ ................................ ............................ 16 
4.5   Institutional framework  ................................ ................................ ............................... 16 
4.6   Dispute sett lement  ................................ ................................ ................................ .....16 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 16 
4.8   Government procurement  ................................ ................................ ............................ 17 
4.9   Intellectual Property Rights  ................................ ................................ .......................... 17 
4.10   Other  ................................ ................................ ................................ ...................... 18 
4.10.1    Competition  ................................ ................................ ................................ .......... 18 
ANNEX 1  ................................ ................................ ................................ ........................  19 
 WT/REG118/7  
 
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Key Facts  
 
Parties to the Agreement:   Georgia and the Russian 
 Federation  
 
Date of Signature:    03 February 1994 
 
Date of Entry into Force:    10 May 1994  
 
Date of Notification:    8 February 2001  
 
Full implementation:    10 May 1994   
 
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between Georgia and the Russian Federation ("the Agreement") is 
Georgia 's first RTA to enter into force, and the fourth to enter into force for the Russian 
Federation.1 
1.2.  The Parties to the Agreement have very different economies in terms of size, p rofile and 
development.  In 201 5 Georgia's GDP was estimated at US$ 13.9 billion , and the Russian 
Federation's at US$1,326  billion . In terms of trade, Georgia's total merchandise exports and 
imports totalled US$ 2.2 billion and US$7 .7 billion respectively (excluding intra -EU trade), making 
it the world's 103rd largest export er and 83rd largest importer in 201 5. In 201 5 the Russian 
Federation's total merchandise exports and imports totalled US$340 billion and US$194  billion 
respectively, making it the world's 10th largest exporter and 17th largest importer (excluding intra 
EU trade).   
1.3.  Manu factures  and agriculture  dominate Georgia's exports (76% of total exports)  while 
manufactures represent 64.8% of its imports.  The Russian Federation's exports are dominated by 
fuels and mining products (67.4%), followed by manufactures (22.3%). Its main im ports are 
manufactures ( 75.5%) and agricultural products  (14.2%). The trade to GDP ratios of the Parties 
are 95.9% for Georgia and 51.5% for the Russian Federation .  
1.4.   In 20 15, exports to and imports from the Russia n Federation  represented, respectively, 
7.2% and 6.7% of Georgia's  total exports and imports, making the Russian Federation the 
4th largest export destination and import source.  Georgia  was Russian Federation's  31st and 
43rd largest  export and import partner with 0.2 % of its total exports and 0.1%  of imports.  
1.5.  Charts 1.1 A and B show global and bilateral trends in merchandise trade for each Party for 
the period 1996 -2015. Georgia's total imports were valued at US$ 686 million in 1996 and rose to 
US$7.7 billion in 2015 . Georgia's total exports were US$198 million in 1996, rising to 
US$2.2 billion in 201 5. During that same period the Russian Federatio n's global export s rose from 
US$88 billion i n 1996 to US$343  billion in 201 5, while imports  rose from US$61 billion to 
US$182  billion.  While Georgia ran a widening global trade deficit during the period, the Russian 
Federation enjoyed a substantial glo bal trade surplus from 1996 -2015.  
1.6.  Georgian exports to the Russian Federation rose from US$56 million to US$ 153 million  
between 1996 and 2005, and dropped to US$75 million in 2006 before recovering in 2007 and 
rising to a peak of US$ 270 million in 2014 ; its exports have declined since then . Imports by the 
Russian Federation rose from US$127 million in 1996 to peak at US$575 million  in 2007.  In 2008 
Georgia's imports from Russia were US$424  million but then dec lined dramatically before 
increasing to US$515 million in 2015 . The Russian Federation's  exports to Georgia were 
US$101  million in 1996, declining to US$ 42 milli on in 2000, increasing from US$ 58 million in 20 01 
through to US$831  million in 201 3, then US$756  million in 2015 . Georgia ran a large trade deficit 
with the Russ ian Federation from 1996 to 2015 .  
                                                
1 WTO RTA Information System ( http://rtais.wto.org ), Table  4.1 below.  WT/REG118/7  
 
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  Chart 1.1 Russian Federation and Georgia:  Merchandise bilateral trade and with world, 
1996 -2015  
0100200300400500600700
012345678910
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015B. Georgia 1996 -2015
Imports from Russian Federation (Right Axis)
Exports to Russian Federation (Right Axis)
Total Imports
Total ExportsUS$ BillionUS$ Million
0100200300400500600700800900
0100200300400500600
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015A. Russian Federation 1996 -2015
Imports from Georgia (Right Axis)
Exports to Georgia (Right Axis)
Total Imports
Total ExportsUS$ Billion US$ Million
 
Source:  UNSD, Comtrade database . 
 
1.7.  Charts 1.2 and 1.3 show the product composition of merchandise trade between the parties 
and their global trade during 1998 -2000, the earliest years for which data are available and 2013 -
2015 respectively  by broad HS Section Headin gs. Between these two periods there has been a 
considerable shift in the product composition of bilateral trade.  During 1998 -2000 Russia's global 
exports were dominated by minerals and base metals (together accounting for 64% of its global 
exports). Minera ls also formed 59% of Georgia's imports from Russia during this period, followed 
by vehicles (13%). By 2013 -15 while Russia's global exports continued to be dominated by 
minerals (69%) and base metals (8%), Georgia's imports from Russia were more diversifi ed and 
included vegetable products (30% of imports from the Russian Federation), minerals and prepared 
foods (18% each) and chemicals (8%). Of the four largest global export categories for Georgia in 
1998-2001 (base metals, minerals, prepared foods and veg etable products) which accounted for 
70% of its global exports, prepared foods, vegetable products and  base metals formed the bulk 
(89%) of Russia's imports from Georgia. By 2013 -2015 the composition of Georgia's global 
exports had changed, and the share o f vehicles had risen from 7% to 20%, the share of base 
metals had dropped from 23% to 16%, the  share of minerals and prepared foods  had fa llen from 
17% each to 13% and 15 % respectively  and the share of chemicals rose from 10% to 11%. 
Russia's imports from Georgia remained concentrated in prepared foods, whose share rose from 
53% to 69% and vegetable products (whose share fell from 21% to 12%).  WT/REG118/7  
 
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  Chart 1.2 Russian Federation and Georgia: product composition of merchandise trade, 
annual average (1998 -2000)  
53
21134325Russia's imports from Georgia (%)
19
12
11
76655333317Russia's Global Imports (%)
23
17
1713107635Georgia's Global Exports (%)
59
1365549Georgia's imports from Russia (%)
23
18
10 99953212Georgia's Global Imports(%)
46
185433219Russia's Global Exports(%)Total: US$ 64 million Total: US$36 billion
Total: US$ 731 million Total: US$83 billionTotal:  US$ 251 million
Total: US$ 112 million
 
Source: UNSD, Comtrade database . WT/REG118/7  
 
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  Chart 1.3 Russian Federation and Georgia: product composition of merchandise trade, 
annual average ( 2013 -2015) 
691210422Russia's imports from Georgia (%)
30
15
1175554433225Russia's Global Imports (%)
20
16
1513111033325Georgia's Global Exports (%)
30
181885533325Georgia's imports from Russia (%)
20
17
11
1077444232213Georgia's Global Imports(%)
6985322227Russia's Global Exports(%)Total: US$ 258 million Total: US$261 billion
Total: US$ 8.1 billion Total: US$456 billionTotal:  US$ 2.7 billion
Total: US$ 494 million
 
Source:  UNSD, Comtrade database . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Free Trade Agreement between Georgia and the Russian Federation was signed on 
3 February 1994. It was notified to the WTO with a translation in English in document 
WT/REG118/ N/1 on 8  February  2001 under Article XXIV:7(a) of the GATT 1994 following the entry 
into forc e of the Agreement on 10 May 1994 . The text of the Agreement was circulated in 
document WT/REG118/1 on 8 March 2001 and is also available on the following official websites of 
the Parties. According to the Parties, the Agreement was updated with the additi on of a 2001 
Protocol was added to the Agreement.  
Georgia:  https://matsne.gov.ge/ka/document/view/1211507  (in Georgian language)  
Russian Federation:  http://docs.pravo.ru/document/view/16654375  (in Russian language)  
2.2.  According to the Parties, pursuant to Article  22 of the Agreem ent the Agreement comes into 
effect from the date of exchange of notifications on implementation of internal pr ocedures that are 
necessary for its entry into force. It will be in force within twelve months after the date, when one 
of the Par ties sends to another Party written notification of its  intention to operate  the Agreement.  WT/REG118/7  
 
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  2.3.  The Agreement is composed of 22 A rticles (see B ox 2.1 below) : 
Box 2.1 Contents of the Agreement  
Preamble  
Article 1  General provisions and Origin  
Article 2  MFN and National Treatment  
Article 3  Quantitative Restrictions (import and export)  
Article 4  Re-export restrictions  
Article 5  Exchange of Information  
Article 6  Customs Tariff Preferences  
Article 7  Cooperation  
Article 8  Competition  
Article 9  Subsidies  
Article 10  Tariff nomenclature  
Article 11  Transit  
Article 12  Exceptions  
Article 13  Trade Fairs  
Article 14  Relationship with other Agreements  
Article 15  Relations with non -Parties  
Article 16  Dispute Settlement  
Article 17  Joint Commission  
Article 18  Representative offices  
Article 19  Accession  
Article 20  Exclusions  
Article 21  Amendment of the Agreement  
Article 22  Entry into Force  
Protocol s 11 May 1994  
10 July 2001  
Source:  The Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.  Article 1.1 of the Agreement provides that the Parties  to the Agreement will not impose 
customs duties, taxes and charges having equivalent effect on imports of products originating in 
the customs area of the other Party. Annual protocols (that form part of the Agreement) will be 
developed between the Parties  concerning the application of Article 1.1.  According to the Parties 
there have been no additional P rotocols concluded apart from the 1994 and 2001 Protocols 
mentioned below . 
3.1.1   General provisions  
3.2.  Article 2 of the Agreement provides that the Parties will not impose local taxes or charges 
directly or indirectly upon goods covered by the Agreement in excess of the rate applied to similar 
locally produced or third country goods.  Article 2 also provides that the Parties will not introduce 
special restrictions or r equirements during import (or export ) of goods that are not applied to 
similar locally produced or third country goods.  The Parties will also not use different rules on 
warehousing, transport, storage, shipment of goods originating in a Party, nor in relat ion to 
payments and remittances unless those requirements are also applied to domestically produced or 
third country originating goods.  
3.3.  The 11 May 1994 Protocol to the Agreement provides in its Article 2 that the Parties must 
apply MFN treatment in; (i) th e imposition of customs duties, taxes and charges including the 
methods of calculation of such taxes, (ii) procedures and rules regarding export (import) of goods, 
including those related to customs declarations, transit, storage and reloading; (iii) taxes  and 
other domestic charges of any kind directly and indirectly connected with exportation (importation) 
of goods;  (iv) rules relating to sale, purchase, transportation, distribution and use of goods on the WT/REG118/7  
 
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  domestic market;  and (v) methods of payment and t ransfer of payments.  Article 3 of the 1994 
Protocol provides that Article 2 of the Protocol will not apply to advantages and benefits granted to 
third countries with the aim of creating a customs union or free trade area or as a result of the 
establishment  of such union or area or developing countries.  According to the Parties, the 11 May 
1994 Protocol is an integral part of the Agreement.  
3.4.  Article 10 of the Agreement provides that for the purposes of implementation of tariff 
liberalization, non -tariff regu lation, for the exchange of statistics and implementation of customs 
procedures the Parties agree to use a common nine digit tariff nomenclature, derived from the 
harmonized system. If required, the Parties may use tariff data beyond a nine -digit level for  
governmental purposes. Article 10 also provides that the Russian Federation will follow the 
implementation of the harmoniz ed system due to its partic ipation in international organiz ations 
until Georg ia fully implements the harmoniz ed system .2 
3.1.2   Liberalizati on of trade and tariff lines  
3.5.  Table 3.1 A below shows that at the entry int o force of the Agreement, 10,889 lines became 
duty free for Russian exports to Georgia, representing 100% of lines in Georgia's tariff and 100% 
of Russia's exports to Georgia during 2006-08.3 However, following the Protocol of 10 July 2001, 
25 lines became subject to duty for imports from the Russian Federation. These lines account for 
0.2% of Georgia's tariff and 0.7% of its imports from the Russian Federation during 2006 -08. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade   
A. Georgia  
Duty phase -out period  Number of 
lines  % of total 
lines in 
Georgia's 
tariff 
schedule  Value of 
Georgia's 
imports  from 
Russian 
Federation 
(2006 -2008) 
in million US$  % of 
Georgia's 
total imports 
from Russian 
Federation 
2006 -2008  
Duty free under the agreement  (1994)  10,889  100.0  520.5  100.0  
Remain dutiable under the protocol * 25 0.2 3.8 0.7 
* Upon entry into force o f the agreement, all trade in goods became duty -free. In 2001, 25 tariff lines 
are exempted from free trade agreement based on the Annex 2 to the 10 July 2001 Protocol . 
Based on the HS 2002 nomenclature.  
Source:  WTO estimates based on data provided by Geo rgia and the WTO-IDB Database.  
 
3.6.  Table 3.1B  shows trade liberalization under the Agreement by the Russian Federation.  In 
1997, the earliest date for which data are available, 83 tariff lines were duty free for imports from 
all sources. As a result of the A greement entering into force, the Russian Federation liberalized  the 
remainder of its tariff  (10,880 lines or 99.24% of its tariff) for imports from Georgia.4 Following 
the Protocol of 10 July 2001 signed by the two Parties, 9 tariff lines beca me dutiable for imports 
from Georgia . 
                                                
2 According to the Parties, Georgia implemented the 2002 harmonised system in 2006 and currently 
uses the 2012 harmonised system and plans to make the transition to HS 2017.  
3 In 1995, Georgia's tariff had 10,889 lines at the HS eight digit lev el. All these lines were subject to 
ad valorem  rates of duty.  
4 In 1997 the tariff of the Russian Federation consisted of 10,963 lines at the HS ten digit level. Of 
these, 9,701 lines or 88.5% of the tariff had ad valorem  rates of duty, while 1,015 lines h ad mixed rates of 
duty, 176 lines specific duty and 71 lines compound rates of duty.  WT/REG118/7  
 
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  Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade  
B. Russian Federation  
Duty phase -out period  Number 
of lines  % of total 
lines in 
Russian 
Federation's 
tariff schedule  Value of Russian 
Federation's imports 
from Georgia (1997 -
1999) in million US$  % of Russian 
Federation's 
total imports 
from Georgia 
1997 -1999  
Applied duty free (1997)  83 0.76 0.0 0.0 
Duty free under the agreement  10,880  99.24  86.7 100.0  
Total  10,963  100.0  86.7 100.0  
Remain dutiable under the protocol*  9 0.08 0.0 0.0 
* Upon entry into force of the agreement, all trade in goods became duty -free. In 2001, nine (9) tariff 
lines are exempted from free trade agreement based on the Annex 2 to the 10 July 2001 Pr otocol . 
 Based on the HS 1996 nomenclature .  
Source:  WTO estimates based on data from the Russian authorities  and Trade Analysis Information System 
(Trains) database via World Integrated Trade Solution (WITS) for MFN 1997 of HS chapter 76 and 
WTO-IDB.  
3.1.3   Liberalization schedule  
3.1.3.1   Georgia  
3.7.  Table 3.2 below show s tariff liberalization by Georgia  under the Agreement by HS Section. At 
the end of implementation of the Agreement  25 lines in HS Section IV remain dutiable  for import 
by Georgia from the Russian Federatio n with an average MFN rate of duty of  12%.  
Table 3.2 Georgia: Tariff elimination under the Agreement, by HS section  
HS Section  Applied 
average % 
1994  Total 
No. of 
lines  No. of duty -free 
lines under the 
agree ment  
(1994)  No. of lines remaining 
dutiable under the 
protocol*  Avg. Final 
Dutiable 
Tariff % 
(2001 ) 
I 2.0 840 840     
II 2.0 568 568     
III 2.0 128 128     
IV 2.0 907 907 25 12.0 
V 2.0 257 257     
VI 2.0 1,317  1317     
VII 2.0 379 379     
VIII 2.0 223 223     
IX 2.0 190 190     
X 2.0 260 260     
XI 2.0 1304 1304     
XII 2.0 121 121     
XIII 2.0 264 264     
XIV 2.0 63 63     
XV 2.0 1119 1119     
XVI 2.0 1709 1709     
XVII 2.0 569 569     
XVIII 2.0 397 397     
XIX 2.0 30 30     
XX 2.0 237 237     
XXI 2.0 7 7     
Total  2.0 10,889  10,889 25 12.0 
* Upon entry into force of the agreement, all trade in goods became duty -free. In 2001, 25 tariff lines 
are exempted from free trade agreement based on the Annex 2 to the 10 July 2001 Protocol . 
Based on the HS 2002 nomenclature.  
Source : WTO estimates based on data provided by Georgia and the WTO-IDB Database.  WT/REG118/7  
 
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  3.1.3.2   Russian Federation  
3.8.  Table 3.3 shows liberalization by the Russian Federation under the Agreement presented by 
HS Section. Following implementa tion of the Agreement nine tariff lines in HS Section IV remain 
subject to duty for imports from Georgia.  
Table 3.3 Russian Federation: Tariff elimination under the Agreement, by HS section  
HS Section  Applie d 
average % 
1997  Total 
No. of 
lines  No. of duty -free lines  Remain 
dutiable under 
the Protocol*  Avg. Final 
Dutiable 
Tariff % 
(2001)  Applied 1997  under the 
agreement  
I 12.6 810 16 794   
II 9.1 718 3 715   
III 10.4 128  128   
IV 15.7 867  867 9 - 
V 5.0 256  256   
VI 6.7 1,283  3 1,280    
VII 12.2 361  361   
VIII 10.0 206  206   
IX 16.0 222  222   
X 12.3 252 16 236   
XI 18.0 1,356  6 1,350    
XII 19.3 121  121   
XIII 16.2 277 1 276   
XIV 29.4 68 1 67   
XV 11.3 1,148  1 1,147    
XVI 13.0 1,874  26 1,848    
XVII 14.8 317 3 314   
XVIII 11.0 403  403   
XIX 30.0 28  28   
XX 21.1 261  261   
XXI 0.0 7 7    
Total  12.8 10,963  83 10,880  9 - 
- specific duties.  
* Upon entry into force of the agreement, all trade in goods became duty -free. In 2001, nine  (9) tariff 
lines are exempted from free trade agreement based on the Annex 2 to the 10 July 2001 Protocol . 
For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 1996 nomencl ature .  
Source:  WTO estimates based on data from the Russian authorities  and TRAINS database via WITS for MFN 
1997 of HS chapter 76 and WTO -IDB .  
3.1.3.3   Exemptions  
3.9.  As noted above, A rticle 2 of the 1994  Protocol requires the Parties to apply MFN treatment in; 
(a) the imposition of customs duties, taxes and charges including the methods of calculation of 
such taxes, (b) procedures and rules regarding export ( and import) of goods, including those 
related to customs declarations, transit, storage and reloading; (c) taxes and other domestic 
charges of any kind directly and indirectly connected with exportation (importation) of goods;  
(d) rules relating to sale, purchase, transportation, distribution and use of goods on the domestic 
market;  and (e) methods of payment a nd transfer of payments.   
3.10.   Annex 2 to the 10 July 2001 Protocol also provides two additional Annexes of products 
excluded from coverage of the Agreement.  Annex 1 to the  Annex to the 10 July 2001 Protocol lists 
goods which are excluded from coverage of the A greement when imported into the Russian 
Federation from Georgia, or vice versa . These are reproduced in Tables 3.4 and 3.5 below.  WT/REG118/7  
 
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  Table 3.4 Georgia: Products Excluded from the Agreement when imported from the  
Russian Federation  
HS Code  Product Description  Rate of duty (%)  
Applied 1994  MFN 
2001  2016  
22030001000  Beer made from malt, in bottles  2.0 12.0 12.0 
22030009000  Beer made from malt other than 
in bottles  2.0 12.0 12.0 
22030010000  Beer made from m alt, in 
containers holding more than 
10 litres  2.0 12.0 12.0 
22071000000  Undenatured ethyl alcohol, of 
actual alcoholic strength of >= 
80% 2.0 12.0 0 
22072000000  Denatured ethyl alcohol and 
other spirits of any strength  2.0 12.0 3 euro/L  
22089091000  Ethyl alcohol of an alcoholic 
strength of < 80% vol, not 
denatured; spirits and other 
spirituous beverages, 2 litres or 
less 2.0 12.0 1.5 
euro/%vol/HL  
22089099000  Ethyl alcohol of an alcoholic 
strength of < 80% vol, not 
denatured; spirits and other 
spirituou s beverages, more than 
2 litres  2.0 12.0 1.5 
euro/%vol/HL  
24021000001  - Cigars, cigars with the cut off 
ends and cigarillos, containing 
tobacco  2.0 12.0 12.0 
24021000002  - Cigarillos, containing tobacco  2.0 12.0 12.0 
24022010000  - - Containing cloves  2.0 12.0 12.0 
24022090001  - - - "Marlboro " 2.0 12.0 12.0 
24022090002  - - - "Winston " 2.0 12.0 12.0 
24022090003  - - - "Camel " 2.0 12.0 12.0 
24022090004  - - - "Parliament " 2.0 12.0 12.0 
24022090005  - - - "Kent" 2.0 12.0 12.0 
24022090006  - - - "L&M" 2.0 12.0 12.0 
24022090007  - - - "Virginia Slims " 2.0 12.0 12.0 
24022090008  - - - "Davidoff " 2.0 12.0 12.0 
24022090009  - - - "Lucky Strike " 2.0 12.0 12.0 
24022090010  - - - "Gauloises " 2.0 12.0 12.0 
24022090011  - - - "Magna " 2.0 12.0 12.0 
24022090012  - - - "West" 2.0 12.0 12.0 
24022090013  - - - "Pall Mall " 2.0 12.0 12.0 
24022090099  - - - Other  2.0 12.0 12.0 
24029000000  Cigars, cheroots, cigarillos and 
cigarettes consisting wholly of 
tobacco substitutes  2.0 12.0 12.0 
Source:  Annex No. 1 to the Protocol on  Amendments and Additions to the Protocol on the Exceptions to Free 
Trade Regime to the Agreement between the Government of the Russian Federation and the 
Government of the Republic of Georgia on Free Trade of 3 February 1997 signed on 11 May 1994, of 
10 July 2001; Georgia authorities and WTO -IDB. 
 Based on HS 2002 nomenclature.  WT/REG118/7  
 
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  Table 3.5 Russian Federation - Products Excluded from the Agreement when imported 
from Georgia  
HS Code  Product description  Rate of du ty 
Applied  MFN 2016  1997  2001  
1701991000  – – – white sugar  25, but not less 
than 0.07 ECU/kg  30 but not less 
than 0.12 
euro/kg.  340 USD/1000 
kg 
2207100000  Undenatured ethyl alcohol, of 
actual alcoholic strength of >= 
80% 100, but not less 
than 2 E CU/L 100 but not less 
than 2 euro/L  100, but not 
less than 2 
euro/L  
2207200000  Denatured ethyl alcohol and 
other spirits of any strength  100, but not less 
than 2 ECU/L  100 but not less 
than 2 euro/L  100, but not 
less than 2 
euro/L  
2208909100  Ethyl alcoho l of an alcoholic 
strength of < 80% vol, not 
denatured; spirits and other 
spirituous beverages, 2 litres or 
less 4 ECU/L  4 euro/L  4 euro/L  
2208909900  Ethyl alcohol of an alcoholic 
strength of < 80% vol, not 
denatured; spirits and other 
spirituous beverag es, more 
than 2 litres  4 ECU/L  4 euro/L  4 euro/L  
2402100000  Cigars, cheroots and cigarillos 
containing tobacco  30, but not less 
than 3 ECU/1000 
pcs 30 but not less 
than 3 euro/1000 
pcs 22.2, but not 
less than 2.22 
euro/1000 pcs  
2402201000  Cigarettes con taining tobacco, 
containing cloves  30, but not less 
than 3 ECU/1000 
pcs 30 but not less 
than 3 euro/1000 
pcs 2 euro/1000 
pcs 
2402209000  Cigarettes containing tobacco, 
other than cloves  30, but not less 
than 3 ECU/1000 
pcs 30 but not less 
than 3 euro/1000 
pcs 2 euro/1000 
pcs 
2402900000  Cigars, cheroots, cigarillos and 
cigarettes consisting wholly of 
tobacco substitutes  30, but not less 
than 3 ECU/1000 
pcs 30 but not less 
than 3 euro/1000 
pcs 22.5, but not 
less than 2.25 
euro/1000 pcs  
Source:  Annex No. 1 t o the Protocol on Amendments and Additions to the Protocol on the Exceptions to Free 
Trade Regime to the Agreement between the Government of the Russian Federation and t -he 
Government of the Republic of Georgia on Free Trade of 3 February 1997 signed on 11  May 1994, of 
10 July 2001; Russian authorities and WTO -IDB. 
 Based on HS 1996 nomenclature.  
 
3.1.4   Tariff rate quotas  
3.11.   Article 3.1 exhorts the Parties to not use quantitative restrictions or equivalent measures on 
imports.  Article 3.3 of the Agreement provides t hat quantitative restrictions under Article 3.1 may 
be agreed by the Parties through annual protocols as mentioned in Article 1 of the Agreement.  
According to the Parties no tariff rate quotas, quantitative restrictions or equivalent measures are 
applied u nder the Agreement .  
3.2  Rules of origin  
3.12.   Article 1.2 concerns the determination of origin. It provides that the following goods will be 
considered to have originated in the territory of Parties: (a) goods fully produced in the territory of 
the Parties ; (b) goods processed from raw materials, ingredients, subassemblies originating in 
third countries which have been processed to have undergone a change in the first four digits of 
foreign economic activity nomenclature classification based on the Harmonised Commod ity 
Description and Coding System and the Combined Tariff -Statistical Nomenclature of the European 
Economic Community ;  and (c) goods produced from raw materials, ingredients, subassemblies 
referred in paragraph (b) provided that the final total value of r aw materials, ingredients, sub -
assemblies does not exceed the fixed share of the exported value of sold goods. According to the 
Parties, t he percentage of the value of raw materials, ingredients, sub -assemblies of foreign origin 
used in the manufacture of goods shall not exceed for example 50% in the value of exported 
goods determined on the basis of the ex -works price of manufacturer . WT/REG118/7  
 
- 13 - 
 
  3.13.   Article 1.2 also states that detailed rules of origin will be set out in a separate document 
which will be an inherent part  of the Agreement. According to one of the Parties, the Parties apply 
rules of origin since March 16 2010 which were stipulated in bilateral  diplomatic note s. According 
to one of the Parties, after Georgia withdrew from the C ommonwealth of Independent States (CIS) 
agreement  in 2009 the CIS Rules of Origin (and the certificate form "CT -1") have been applicable 
on the basis of bilateral diplomatic notes and for the Russian Federation according to the Letter of 
the Federal Customs Service on 2 September 2013, No. 22 -126/38385 "On conformity the origin 
of goods from the territory of Georgia" .  
3.3  Export duties and charges, and quantitative restrictions  
3.14.   A Protocol to the Agreement, signed in Moscow on 10 July 2001 amended the Agreement 
and its coverage. As a result of the 10 July 2001 Protocol, the scope and coverage of Article 1.1 of 
the Agreement is amended to exclude coverage of goods subject to export tariffs, licensing and 
quotas on export of goods (works, services) which apply at the moment a customs declaratio n on 
export is prepared. This exclusion concerns exports from either Party to the territory of the other 
Party.  
3.15.   Georgia does not apply an export tariff.5 Although Article 1 of the Agreement provides that 
the Parties shall not apply tariffs on, inter alia , exports, "[a]ccording to the agreed commodity 
nomenclature, peculiarities of application of trade regime are generally drawn up between both 
countries through annual protocols that are inherent parts of the present agreement" (Article 1). 
Also according t o the Parties, Article 1 of the 10 July 2001 Protocol provides that exceptions from 
the free trade regime provided for by the Article 1 of the Agreement on 2 February 1994 extend 
to: goods falling under Russian legislation on export tariff, licensing and q uoting of goods (works, 
services) active at the moment of customs clearance on their export from the Russian Federation 
to Georgia; and goods falling under Georgian legislation on export tariff, licensing and quoting of 
goods (works, services) active at th e moment of customs clearance of goods on their export from 
Georgia to the Russian Federation. Accordingly, Russia applies the export tariffs6 set out in 
Table  3.6 below.  
Table 3.6 Export tariff of the Russia n Federation  
Code  Rate of export duty 
(% of custom s value, or in euro)  
0301, 0302, 0303, 0307, 1605 10 000, 1605 20, 1605 30 000, 
1650 40 000, 1605 90 900, 2705  00 000, 2706 00 000, 2707, 
2708, 2710 00, 2711, 2714, 2715 00, 2907 23 100, 3102 30, 
3104 10 000, 3104 30 000, 3104 90 000, 3104 20, 3105, 7108, 
7201-7203, 7205 -7229, 7204 41, 7601  5 
0306, 4701 00 -4707, 4801 00 -4823, 7401, 7402  00 000, 7403, 
7405 00 000, 7501, 7520, 7901  10 
1201 00, 1205 00  10 no less than 20 euro for 1,000 kg.  
1206 00  10 no les s than 15 euro for 1,000 kg.  
4104 10 no less than 90 euro for 1,000 kg.  
4105 10 no less than 70 euro for 1,000 kg.  
4107 10 no less than 60 euro for 1,000 kg.  
4402-4421 10 no less than 5 euro for 1m3. 
4407 91, 4407 92  10 no less than 10 euro for 1m3. 
4407 99  10 no less than 12 euro for 1m3. 
4703 21 000 0, 4704 21 000 0  10 no less than 40 euro for 1,000 kg.  
2207, 2208, 2501 00, 2502 00 000, 2504, 2505, 2506, 2507  00, 
2508, 2509 00 000, 2510, 2511, 2512 00 000, 2513, 2514 00 
000, 2515, 2516, 2517, 2518 , 2519, 2520, 2521  00 000, 2522, 
2523, 2524 00, 2525, 2526, 2527 00 000, 2528, 2529, 2530 10, 
2530 20 000, 2530 40 000, 2530  90 2000, 2530 90 950 2601, 
2602 00  000-2621 00 000, 2704 00, 2805, 2818 20 000, 
2818 30 000, 2825, 2902  41 000-2902 43 000, 2902 50  000, 
2905 13 000, 2907, 2933 71 000, 3901, 3902, 3904, 7101 -
7112, 8001, 8002  00 000, 8101 91, 810291, 8103 10, 8106 00, 
8107, 8108 10 1000, 8109 -8112 6.5 
2709 00  27 euro for 1,000 kg.  
2711 11 000 -2711 14 000, 2711 19 000  40 euro for 1,000 kg.  
                                                
5 Source: WT/REG118/3, communication from the Government of Georgia.  
6 Source: WT/REG118/3, communication from the Government of Georgia.  WT/REG118/7  
 
- 14 - 
 
  Code  Rate of export duty 
(% of custom s value, or in euro)  
2711 21 0 00 5 no less than 2.5 euro for 1,000 kg.  
3102 10  5 no less than 4 euro  
4408 90, 4409 20  5 no less than 6 euro for 1m3. 
4101 15 no less than 150 euro for 1,000 kg.  
4102 15 no less than 105 euro for 1,000 kg.  
4103 15 no less than 90 euro for 1,000 kg.  
4104 10 no less than 90 euro for 1,000 kg.  
4105 10 no less than 70 euro for 1,000 kg.  
4107 10 no less than 60 euro for 1,000 kg.  
4402-4421 10 no less than 5 euro for 1m3. 
4407 91, 4407 92  10 no less than 10 euro for 1m3. 
4407 99  10 no less than 12 eur o for 1m3. 
4703 21 000 0, 4704 21 000 0  10 no less than 40 euro for 1m3. 
7404 00  30 no less than 330 euro for 1,000 kg.  
7503 00  30 no less than 720 euro for 1,000 kg.  
7602 00  30 no less than 150 euro for 1,000 kg.  
7802 00 000  30 no less than 105 euro for 1,000 kg.  
7902 00 000  30 no less than 180 euro for 1,000 kg.  
8105 10 900  30 no less than 1,200 euro for 1,000 kg.  
8108 10 900  30 no less than 225 euro for 1,000 kg . 
Source:  Annex I, page 5 of WT/REG118/3, communication from the Government of Georgi a. 
3.16.   Article 4 concerns the re -exportation of goods already exported from the territory of one 
Party to another. Each Party will not permit the re -exportation of goods (imported from the 
territory of the other Party) and which the other Party subjects to tar iff and or non -tariff measures. 
The Article requires the Parties to exchange lists of goods subject to such restrictions. According to 
the Parties , such lists of goods subject to re -export restrictions have not been exchanged.  The re -
exportation of goods w ill only be permitted upon a written let ter of consent from the authoriz ed 
body in the producing Party.  
3.17.   In the case of a breach of Article 4, the complaining Party will be permitted to unilaterally 
introduce measures to regulate the exportation of the goo d from its territory. Any revenue from 
exportation of the concerned good will be remitted to the producing Party. Both Parties will 
annually coordinate the terms, nomenclature and volume of products permitted to be re -exported. 
According to the Parties, no  such lists have been agreed. Article 4 of the Agreement notes that for 
the purposes of the Article, re -export is defined to mean the export of the good from the territory 
of one Party which good originated in the territory of the other Party, to the terri tory of a third 
party.  
3.18.   Article 4 of the 11  May 1994 Protocol provides that the Parties will not apply export duties 
on goods supplied for state needs, clearing and mutual needs (barter trade) in accordance with the 
Intergovernmental Agreement on Trade -Economic Co -operation of 1994. According to the Parties 
this Agreement was only in force until 31 December 1994.  
3.4  Regulatory Provisions of the Agreement  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.19.   According to the Parties t here are no provisions on Standard s or SPS in the Agreement.  
3.4.1.2   Technical barriers to trade  
3.20.   According to the Parties t here are no provisions on T echnical Barriers to Trade in the 
Agreement.  
3.4.2   Safeguard mechanisms  
3.21.   Although the Agreement contains no specific provisions on application of safegua rds, as 
noted above, A rticle 3.2 permits the use of quantitative restrictions only on the basis of the WT/REG118/7  
 
- 15 - 
 
  following conditions: (i) in the case of a severe shortage of a good on the domestic market, until 
such time as the market situation stabilises; (ii) in the case of a balance of payments deficit, until 
such time as the balance of payments situation stabilises; (iii) when a good is imported in such an 
increased quantity or under conditions that cause or threaten to cause damage on domestic 
producers of simi lar or competing goods; and (iv) in order to prevent the re -export of goods per 
Article 4 of the Agreement).  
3.4.3   Anti-dumping and countervailing measures  
3.22.   There are no provisions on anti -dumping or countervailing measures in the Agreement.  
3.4.4   Subsidies and State -aid 
3.23.   Article 9 of the Agreement provides that the Parties will not use subsidies or any other such 
assistance to enterprises in its territor y if the effect of such subsidiz ation or assistance is to distort 
normal economic conditions in the territory of the  other Party.  
3.4.5   Customs -related procedures  
3.24.   Article 11 of the Agreement concerns transit. In Article 11, the Parties agree that the 
principle of the freedom of transit is central to the objectives of the Agreement and an essential 
element in the development of co-operation between the Parties and the international division of 
labour.  
3.25.   Article 11 provides also that the Parties agree to ensure the freedom of transit, through 
their territory of goods originating in the territory of the other Party and also from third countries 
and destined for the customs territory of the other Party or a third country. The Parties agree to 
provide exporters and importers with facilities for transit security on national treatment and most 
favoured nation bases. Both Parties agree  to not request the payment of warehousing, unloading, 
storage and shipment fees in the currency of any other third country.  
3.5  Sector -Specific Provisions of the Agreement  
3.26.   There are no sector -specific provisions in the Agreement.  
4  GENERAL PROVISIONS O F THE AG REEMENT  
4.1  Transparency  
4.1.  Article 17 of the Agreement provides that the Parties agree to establish a joint Commission in 
order to implement the Agreement and elaborate recommendations for the improvement of trade 
and economic co -operation between the Parties.  According to the Parties, following the severing of 
diplomatic relations between the Parties in 2008 the Joint Commission has not met or elaborated 
any recommendations.  
4.2  Current payments and capital movements  
4.2.  There are no provisions on current payments and c apital movements in the Agreement.   
4.3  Exceptions  
4.3.  Article 12 of the Agreement provides that nothing in the Agreement shall prevent a Party 
from taking measures considered to be necessary for the protection of its fundamental interests 
and that are required un der international agreements to which it is a party, provided that such 
measures concern: (i) information regarding national security interests, (ii) trade in weapons, 
ammunition and military equipment, (iii) investigations and production related to defenc e, (iv) the 
supply of materials and equipment related to the nuclear industry, (v) protection of public order 
and public morals, (vi) protection of industrial and intellectual property, (vii) gold, silver or other 
precious metals or stones, or (viii) prote ction of human health, animals and plants.  WT/REG118/7  
 
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  4.4  Accession and Withdrawal  
4.4.  Article 19 provides that with the agreement of both Parties, any other country may join the 
Agreement on terms to be agreed between the acceding country and the Parties.   
4.5.  There are no pro visions in the Agreement on withdrawal from the Agreement.   
4.6.  Article 21 provides that the Agreement may be amended on the basis of written amendments 
agreed by the Parties.   
4.5  Institutional framework  
4.7.  Article 17 of the Agreement establishes a joint Russian -Georgian Commission for the 
development of recommendations for the improvement of trade and economic cooperation 
between the two Parties.   
4.8.  Article 5 of the Agreement provides that the Parties shall, on a regular basis, exchange 
information concerning customs issues, includ ing customs statistics. Authoriz ed bodies will 
establish modalities for the exchange of such information. According to the Parties, modalities 
were developed and fixed in the Agreement about main principles of the mechanism of customs 
adminis tration and monitoring of trade in goods on 9 November 2011.  
4.9.  Article 6 provides that the Parties shall take measures in order to ensure the harmonization 
of their tariff regime with third countries and hold regular consultations on the topic. The Parties 
will also advise one another about any customs tariff exemptions administered in their territory. 
The July 10 2001 Protocol provid es in Article 1  that Article 6 of the Protocol of 11 May 1994 shall 
be deleted.  
4.10.   Article 7 provides that, as permitted by domest ic legislation, the Parties will promote the 
extension and deepening of balanced and mutually advantageous economic, social and technical 
co-operation between all levels of economic entities and concerning all levels and kinds of 
property, establishment of  joint ventures and international companies, with a view to also include 
the participation of third countries in order on economic space of mutual interest.  
4.11.   Article 13 concerns cooperation of the Parties in relation to trade fairs, and provides that the 
Parties will assist each other in participation in trade fairs and exhibitions which are held in one of 
the Parties.  
4.12.   Article 18 of the Agreement permits Georgia to establish a trade representation in the 
Russian Federation and the Russian Federation to est ablish a trade representation in Georgia.   
4.6  Dispute settlement  
4.13.   According to the Parties, A rticle 16 of the A greement provides that disputes arising from 
only interpretation and implementation of the Agreement shall be settled through negotiations.  
4.7  Relations hip with other agreements concluded by the Parties  
4.14.   Table 4.1 lists the notified and non -notified (if any) trade agreements that have either 
Georgia or the Russian Federation as members (excluding the current Agreement).  WT/REG118/7  
 
- 17 - 
 
  Table 4.1 Russian Federation and Georgia: Participation in other RTAs (notified and 
non-notified in force), as of 28 February 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
RUSSIAN FEDERATION  
Euras ian Economic Union (EAEU) - 
Accession of the Kyrgyz Republic  12-Aug-15 Goods & 
Services  2015 GATT Art. XXIV & GATS 
Art. V  
Eurasian Economic Union (EAEU) - 
Accession of Armenia  02-Jan-15 Goods & 
Services  2014 GATT Art. XXIV & GATS 
Art. V  
Eurasian Economic  Union (EAEU)  01-Jan-15 Goods & 
Services  2014 GATT Art. XXIV & GATS 
Art. V  
Treaty on a Free Trade Area between 
members of the Commonwealth of 
Independent States (CIS)  20-Sep-12 Goods  2013 GATT Art. XXIV  
Russian Federation - Serbia  03-Jun-06 Goods  2012 GATT Art. XXIV  
Common Economic Zone (CEZ)  20-May-04 Goods  2008 GATT Art. XXIV  
Russian Federation - Belarus - Kazakhstan  03-Dec-97 Goods  2012 GATT Art. XXIV  
Russian Federation - Turkmenistan  06-Apr-93 Goods  2013 GATT Art. XXIV  
Russian Federation - Uzbekis tan 25-Mar-93 Goods  2013 GATT Art. XXIV  
Russian Federation - Azerbaijan  17-Feb-93 Goods  2012 GATT Art. XXIV  
EAEU - Viet Nam  05-Oct-16 Goods & 
Services* Not notified  
GEORGIA  
EU - Georgia  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS 
Art. V  
Turkey - Georgia  01-Nov-08 Goods  2009 GATT Art. XXIV  
Georgia - Turkmenistan  01-Jan-00 Goods  2001 GATT Art. XXIV  
Georgia - Kazakhstan  16-Jul-99 Goods  2001 GATT Art. XXIV  
Georgia - Armenia  11-Nov-98 Goods  2001 GATT Art. XXIV  
Georgia - Azerbaijan  10-Jul-96 Goods 2001 GATT Art. XXIV  
Georgia - Ukraine  04-Jun-96 Goods  2001 GATT Art. XXIV  
Commonwealth of Independent States 
(CIS)  30-Dec-94 Goods  1999 GATT Art. XXIV  
Georgia - Uzbekistan  15-Oct-10 Goods  Not notified  
Moldova - Georgia  19-Apr-07 Goods  Not notified  
GUAM (Georgia, Ukraine, Azerbaijan, 
Moldova)  10-Dec-03 Goods  Not notified  
*  The Russian Federation has advised that this Agreement also covers services in relations between 
the Russian Federation and Viet Nam.  
Source:  WTO Secretariat.  
4.15.   Article 14 provide s that the Agreement shall not affect the operation of other agreements 
concluded earlier between the Parties and third countries.  
4.16.   Article 15 states that the Agreement will not prevent the Parties from establishing relations 
with third countries as well a s third country associations.  If the Parties do so in a way that may 
affect the interests of the other Party they must hold consultations with the other Party.   
4.8  Government procurement  
4.17.   There are no provisions in the Agreement on Government Procurement.  
4.9  Intellectual Property Rights  
4.18.   There are no provisions on intellectual property rights in the Agreement, apart from the 
Exceptions mentioned above contained in Article 12 ("protection of industrial or intellectual 
property") of the Agreement . WT/REG118/7  
 
- 18 - 
 
  4.10  Other  
4.10.1   Competition  
4.19.   Article 8 concerns competition. It provides that the following kind of behaviour in the 
territory of a Party constitutes unfair business practice inconsistent with the objectives of the 
Agreement: (i) agreements between enterprises or associations which ha ve as their aim the 
prevention, restriction or violation of conditions of competition in the territories of either or both 
Parties; and actions through which one or several enterprises, in abuse of their dominant market 
position, act to restrict competitio n over the entire territory of the Parties or a substantial part of 
one Party's territory. According to the Parties there are no implementing regulations or other 
guidance on interpretation, or application of competition measures . 
 WT/REG118/7  
 
- 19 - 
 
  ANNEX 1 
INDICATORS OF M ARKET ACCESS  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the ir average MFN duties  is shown in Tables A1.1 and A1.2, by agricultural (WTO 
definition), non -agricultural and total products . Applied  duty rates from all sources in 1994 (when 
the Agreement entered into force) and MFN applied rates in 2016 serve as a comparison.  
2. When the Agreement entered into force in 1994, Georgia's average applied rates for imports 
from all sources was 2% for all imports . In comparison its overall MFN applied rate of duty in 2016 
had fallen to 1.8% overall and 6.4% for agricultural products and 0.8% for non -agricultural 
products. The share of duty free lines had risen from zero in 1994 to 79.5% overall, and 39.9% for 
agricultural products and 89.1% for non -agricultural products. Under the Agreement, Georgia 
eliminated all tariffs for imports from Russia when the Agreement entered into force in 1994. In 
2001, however, following the signing of a new Protocol, Georgia imposed  duties of 12% of imports 
of certain agricultural products from the Russian Federation, with the result that the share of duty 
free tariff lines fell from 100% to 99.9% overall, 99.5% for agricultural products and 100% for 
non-agricultural products.  
Table A1.1 Georgia:  
Indicators of MFN tariff rates and preferential rates for imports from Russian Federation  
Year ALL PRODUCTS  Agricultural products a Non-agricultural 
products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines  
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Applied  1994 2.0 2.0 0.0 2.0 2.0 0.0 2.0 2.0 0.0 
MFN 2016  1.8 11.0 79.5 6.4 11.5 39.9 0.8 10.3 89.1 
  1994 
(under the agreement ) 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
2001 
(under the protocol)  0.0 12.0 99.9 0.1 12.0 99.5 0.0 0.0 100.0  
a WTO Definition.  
 Based on the HS 2002 nomenclature  and HS 2012 nomenclature for MFN 2016 .  
Source : WTO Secretariat estimates based on data provided by Georgia and the WTO-IDB Database.  
3. When the Agreement entered into force in 1994, the Russian Federation's average applied 
rates for imports from all sources w as 12.8% for all imports, 12.1% for agricultural products and 
12.9% for non -agricultural products; 0.8% of the tariff was duty free (1.1% for agricultural 
products and 0.7% for non -agricultural products). In comparison its overall MFN applied rate of 
duty in 2016 had fallen to 8.2% overall and 14.1% for agricultural products and 6.6% for 
non-agricultural products. The share of duty free lines had risen to 15.7% overall, and 6.2% for 
agricultural products and 18.5% for non -agricultural products. Under the Ag reement, Russia 
eliminated all tariffs for imports from Georgia when the Agreement entered into force in 1994. In 
2001, however, following the signing of a new Protocol, the Russian Federation imposed duties on 
certain agricultural products from Georgia, w ith the result that the share of duty free tariff lines fell 
from 100% to 99.9% overall, 99.6% for agricultural products and 100% for non -agricultural 
products.  WT/REG118/7  
 
- 20 - 
 
  Table A1. 2 Russian Federation : 
Indicators of MFN tariff rates and preferential rates for import s from Georgia  
Year ALL PRODUCTS  Agricultural products a Non-agricultural 
products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Applied  1997 12.8 12.9 0.8 12.1 12.3 1.1 12.9 13.0 0.7 
MFN 2016  8.2 9.8 15.7 14.1 15.1 6.2 6.6 8.1 18.5 
1997  
(under the agreement)  0.0 0.0 100.0  0.0 0.0 100.0 0.0 0.0 100.0  
2001  
(under the protocol)  0.0 - 99.9 0.1 - 99.6 0.0 0.0 100.0  
- specific duties.  
a WTO Definition.  
 Based on the HS 1996 nomenclature used for MFN 1997 and HS 2012 nomenclature used for MFN 
2016.  
Source:  WTO estimates based on data from the Russian authorities, TRAINS database via WITS for MFN 
1997 of HS chapter 76 and WTO -IDB. 
4. Table A1.3 shows market access opportunities for Russia's top 25 exports in Georgia, as a 
result of the Agreement. In 1994 when the Agreement entered into force th e Russian Federation's 
top 25 exports to Georgia accounted for 81.6% of its global exports  and was covered by 103 tariff 
lines in the Georgian tariff. As a result of the Agreement all 103 lines were liberalized in 1994 and 
tariffs have not been re -imposed on any of these products following the 2001 Protocol.  
Table A1. 3 Georgia:  
Market access opportunities under the agreement for Russian Federation's top 25 
exports.  
Russian Federation's top export products in 2006 -2008  Access Conditions to Georgia's import 
markets  
Applied (1994)  Duty -free 
in 1994  HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
dutiable 
lines  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude.  35.2 2.0 2 2 
271121  Natural gas  14.8 2.0 1 1 
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
n.e.s.  14.0 2.0 25 25 
271011  Light oils and preparations  2.9 2.0 12 12 
750210  Nickel, not alloyed  1.8 2.0 1 1 
270112  Bituminous coal  1.5 2.0 2 2 
760110  Alumin ium, not alloyed  1.4 2.0 1 1 
720712  Other, of rectangular (other than 
square) cross -section  1.3 2.0 2 2 
440710  Coniferous  0.8 2.0 7 7 
440320  Other, coniferous  0.8 2.0 6 6 
100190  Wheat and meslin (excl. durum wheat)  0.8 2.0 3 3 
310420  Potassium chloride  0.7 2.0 3 3 
740811  Of which the maximum cross -sectional 
dimension exceeds 6 mm  0.7 2.0 1 1 
720110  Non-alloy pig iron containing by weight 
0.5% or less of phosphorus  0.6 2.0 4 4 
760120  Alumin ium alloys  0.5 2.0 3 3 WT/REG118/7  
 
- 21 - 
 
  Russian Federation's top export products in 2006 -2008  Access Conditions to Georgia's import 
markets  
Applied (1994)  Duty -free 
in 1994  HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of tariff 
dutiable 
lines  
720720  Containing by weight 0.25% or more of 
carbon  0.5 2.0 13 13 
710231  Unworked or simply sawn, cleaved or 
bruted  0.5 2.0 1 1 
720449  Waste and scrap of iron or steel  0.5 2.0 4 4 
740311  Cathodes and sections of cathodes  0.5 2.0 1 1 
720839  Flat-rolled products of iron or n on-alloy 
steel, Of a thickness of less than 3 mm  0.5 2.0 2 2 
720711  Of rectangular (including square) cross -
section, the width measuring less than 
twice the thickness  0.4 2.0 4 4 
310210  Urea, whether or not in aqueous 
solution  0.4 2.0 2 2 
281410  Anhydro us ammonia  0.3 2.0 1 1 
840130  Fuel elements (cartridges), non -
irradiated  0.3 2.0 1 1 
722511  Grain -oriented  0.3 2.0 1 1 
Total of above  81.6  103 103 
Note:  Based on the HS 2002 nomenclature.  
 For calculations, correlation between HS 1996 and HS 2002 w ere used at the HS 6 -digit level.   
Source:  WTO estimates based on data provided by Georgia and the UNSD, Comtrade database.  
5. Table A1.4 shows market access opportunities for Georgia's top 25 exports in the Russian 
market. Georgia's top 25 export products to R ussia in 1997 -1999 (the earliest years for which data 
are available), accounted for 66.7% of its global exports, and were covered by 193 tariff lines in 
the Russian tariff. When the Agreement entered into force tariffs on 190 tariff lines were 
eliminated. However, following the 2001 Protocol three tariff lines became subject to specific 
duties (cigarettes and undenatured ethyl alcohol).  
Table A1. 4 Russian Federation : 
Market access opportunities under the agreement for Georgia 's top 25 exports  
Georgia's top export products in 1997 -1999  Access Conditions to Russian Federation's 
import markets  
Applied (1997)  Duty -
free 
in 
1997  Remain 
dutiable  
in 2001  HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of 
tariff 
dutiable 
lines  
310230  Ammonium nitrate, whether or not in 
aqueous solution  5.0 10.0 2 2  
220421  In containers holding 2 l or less  5.0 0.5 euro/1 L  51 51  
720230  Ferro-silico-manganese  4.7 5.0 1 1  
271000  Petroleum oils and oils obtained from 
bitumi nous minerals, other than crude; 
preparations not elsewhere specified or 
included, containing by weight 70 % or 
more of petroleum oils or of oils 
obtained from bitumi  4.4 5.0 35 35  
220110  Mineral waters and aerated waters  4.1 20.0 4 4  
271600  Electrical  energy. (optional heading)  4.1 5.0 1 1  
080222  Shelled  4.0 5.0 1 1  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  3.7 5.0 2 2  
090240  Other black tea (fermented) and other 
partly fermented tea  3.7 5.0 1 1  WT/REG118/7  
 
- 22 - 
 
  Georgia's top export products in 1997 -1999  Access Conditions to Russian Federation's 
import markets  
Applied (1997)  Duty -
free 
in 
1997  Remain 
dutiable  
in 2001  HS number and description of the product  Share in 
global 
exports 
(%) Average MFN 
applied rate 
(%) No. of 
tariff 
dutiable 
lines  
720211  Containing b y weight more than 2 % 
of carbon  3.2 5.0 2 2  
261690  Other  3.1 5.0 1 1  
880230  Aeroplanes and other aircraft, of an 
unladen weight exceeding 2,000 kg 
but not exceeding 15,000 kg  2.8 30.0 2 2  
720429  Waste and scrap of alloy steel  2.4 5.0 1 1  
730410  Line pipe of a kind used for oil or gas 
pipelines  2.3 10.0 9 9  
080520  Mandarins (including tangerines and 
satsumas); clementines, wilkings and 
similar citrus hybrids  1.8 5 but not less 
than 0.03 euro/ 
kg 15 15  
720711  Of rectangular (including square) 
cross-section, the width measuring 
less than twice the thickness  1.6 5.0 4 4  
260300  Copper ores and concentrates  1.5 5.0 1 1  
440392  Of beech (fagus spp.)  1.5 20.0 1 1  
240220  Cigarettes containing tobacco  1.3 30 but not less 
than 3 euro per 
1000 st.  2  2 
220710  Undenatured ethyl alcohol of an 
alcoholic strength by volume of 80 % 
vol. or higher  1.3 100 but not 
less than 2 
euro/1L  1  1 
090220  Other green tea (not fermented)  1.2 5.0 1 1  
300490  Medicaments consisting of mixed or 
unmixed products for ther apeutic or 
prophylactic purposes  1.2 10.0 6 6  
720449  Waste and scrap of iron or steel  1.0 5.0 4 4  
220429  Wine of fresh grapes, incl. fortified 
wines, and grape must whose 
fermentation has been arrested by the 
addition of alcohol, in containers of > 
2 l (excl. sparkling wine)  1.0 0.12 euro/1 L  34 34  
220820  Spirits obtained by distilling grape 
wine or grape marc  0.9 2.0 euro/1 L  11 11  
Total of above  66.7  193 190 3 
Note:  Based on the HS 2002 nomenclature.  
 For calculations, correlation between HS 1992, HS 1996 and HS 2002 w ere used at the HS 6 -digit 
level.  
Source:  WTO estimates based on data provided by Georgia and the UNSD, Comtrade database.  
__________