WT/REG397/1  
27 January 2020  
(20-0598) Page: 1/37 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN HONG KONG, CHINA  AND GEORGIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between 
Hong Kong, China  and Georgia , 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 offic ial endorsement or 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 Mr. Peter Milthorp  
(tel: +41 22 739 5016 ). Any statistical questions arising from this report may be  
addressed to Mr. Thakur Parajuli (tel: +41 22 739 5473). 
 
 
  WT/REG397/1  
 
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  TABLE O F CONTENTS  
  
1   TRADE ENVIRONMEN T ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ..................  6 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  ................................ ......................  8 
2.1   Background Information  ................................ ................................ ...............................  8 
3   PROVISIONS ON TRADE IN  GOODS  ................................ ................................ .............  9 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  9 
3.1.1    General provisions  ................................ ................................ ................................ .... 9 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  9 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 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   Regulatory provisions on trade in goods  ................................ ................................ ........ 13 
3.4.1    Standards  ................................ ................................ ................................ ............... 13 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......13 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 14 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 14 
3.4.2.1   Global safeguards  ................................ ................................ ................................ .14 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 14 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 14 
3.4.2.4    Balance of payments safeguards  ................................ ................................ ............. 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 
3.4.6    Other regulations  ................................ ................................ ................................ .....17 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...17 
4   PROVISIONS ON TR ADE IN SERVICES  ................................ ................................ ....... 17 
4.1   Scope and definitions  ................................ ................................ ................................ ..17 
4.2   Denial of benefits  ................................ ................................ ................................ .......17 
4.3   General provisions on trade in services  ................................ ................................ ......... 18 
4.3.1    Market access  ................................ ................................ ................................ ......... 18 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 18 
4.3.3    Commercial presence  ................................ ................................ ............................... 18 
4.3.3.1    Movement of natural persons  ................................ ................................ ................. 18 
4.4   Liberalization commitments  ................................ ................................ ......................... 19 
4.4.1    MFN and horizontal commitments  ................................ ................................ .............. 19 
4.4.2    Sector Specific Commitments  ................................ ................................ .................... 20 
4.4.2.1    Hong Kong, China  ................................ ................................ ................................ .20 WT/REG397/1  
 
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  4.4.2.2    Georgia  ................................ ................................ ................................ ............... 23 
4.5   Regulatory provisions  ................................ ................................ ................................ ..25 
4.5.1    Domestic regulation  ................................ ................................ ................................ .25 
4.5.2    Recognition  ................................ ................................ ................................ ............. 25 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 25 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 25 
4.5.5    Other  ................................ ................................ ................................ ..................... 25 
4.5.5.1    Monopolies and Exclusive Service Suppliers  ................................ .............................. 25 
4.5.5.2    Other Investment provisions  ................................ ................................ .................. 26 
4.6   Sector specific provisions on trade in services  ................................ ................................ 26 
4.6.1    International Maritime Transport  ................................ ................................ ............... 26 
5   GENERAL PROVISIO NS OF THE AGREEMENT  ................................ .............................  27 
5.1   Transparency  ................................ ................................ ................................ ............. 27 
5.2   Current payments and capital movements  ................................ ................................ .....27 
5.3   Exceptions  ................................ ................................ ................................ ................. 27 
5.4   Accession and Withdrawal ................................ ................................ ............................ 27 
5.5   Institutional framework  ................................ ................................ ............................... 27 
5.6   Dispute settlement  ................................ ................................ ................................ .....28 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 29 
5.8   Government procurement  ................................ ................................ ............................ 29 
5.9   Intellectual property rights  ................................ ................................ .......................... 30 
5.10   Competition  ................................ ................................ ................................ ............. 30 
5.11   Environment  ................................ ................................ ................................ ............ 30 
5.12   Labour  ................................ ................................ ................................ .................... 31 
5.13   Electronic commerce  ................................ ................................ ................................ .31 
5.13.1    Small and medium -sized enterprises  ................................ ................................ ........ 31 
ANNEX 1  ................................ ................................ ................................ ........................  32 
 
  WT/REG397/1  
 
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Key Facts  
 
Parties to the Agreement:  Hong Kong, China  and 
Georgia  
 
Date of Signature:    28 June 2018  
 
Date of Entry into Force:  13 February 2019  
 
Date of Notification:   12 February 2019  
 
Full implementation:   13 February 2019  
 
 
1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  In 201 8, with a population of 7.4 million, Hong Kong, China 's GDP was esti mated at USD 363 
billion. Its total merchandise trade in 201 8 was USD 1.1 trillion (exports of USD 569 billion, 2.9 % 
of global exports, imports of USD 627 b illion, 3.2% of global imports ). In 201 8, Georgia, with a 
population of 3. 7 million, had an estimated GDP of USD 16.3 billion, and total merchandise trade  of 
USD 10.6 billion (exports at USD 3.3 billion, 0.02% of global exports, and imports of USD 9.1 billion , 
0.05% of global imports ).  
1.2.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties. Both Hong Kong, 
China and Georgia maintained trade deficits  with the world  during this period, with Georgia's deficit 
in particular being significant.  In their bilateral trade Georgia has run a steady trade deficit with 
Hong Kong, China  over the period.  
1.3.  Based on 2018 trade data, Hong Kong, China  was Georgia's 13th largest source of imports and 
25th largest export destination  (1.2% and 0.2% respectively of Georgia's global imports  and 
exports) . Georgia was Hong Kong, China 's 91st ranked source of imports and 77th largest export 
destination in 201 8 (representing negligible shares of Hong Kong, China 's global imports and 
exports).  
Chart 1.1 Hong Kong, China - Georgia: Merchandise bilateral trade and with world 
(2005 -2018)  
 
Source:  UNSD Comtrade database . 
050100150200250300350400450500550
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2005 2007 2009 2011 2013 2015 2017B. Georgia 2005 -2018
(USD millions)
Imports from China, Hong Kong SAR (Right Axis)
Export to China, Hong Kong SAR (Right Axis)
Total Imports
Total Exports
050100150200250300350400450500550
0100,000200,000300,000400,000500,000600,000700,000800,000
2005 2007 2009 2011 2013 2015 2017A. Hong Kong, China -Georgia 2005 -2018 
(USD millions)
Imports from Georgia (Right Axis)
Export to Georgia (Right Axis)
Total Imports
Total ExportsWT/REG397/1  
 
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  1.4.  The commodity structure of trade between Hong Kong, China  and Georgia, as well as of their 
global trade in t he period 201 6-2018 is shown in Chart 1.2 on the basis of the Harmonized System 
(HS) sections.  
1.5.  Of Georgia's largest exports, comprising prepared foods, minerals, base metals , vehicles and 
chemicals (which accounted for 74% of its global exports), base metals, vehicles chemicals and 
prepared foods were also key imports by Hong Kong China (accounting for 42% of its imports from 
Georgia), along with machinery (20%) and optical equipment (12%).  Of Hong Kong, China's largest 
global exports of machinery and n atural and cultural pearls (79% of its exports), t he commodities 
most imported by Georgia from Hong Kong, China  were machinery  (61%) , along with  miscellaneous 
manufactured articles (9.5%) and optical and photographic equipment (4.5%) .  
Chart 1.2 Hong Kong, China - Georgia: Product composition of merchandise trade, 
annual average (2016 -2018)  
 
Source:  UNSD Comtrade database.  
21
20
121111106333Hong Kong, China's imports from Georgia 
(%)
62 1243222228Hong Kong, China's Global Imports (%)
641554229Hong Kong, China's Global Exports (%)
61
10444432224Georgia's imports from Hong Kong, China 
(%)
20
18
10
977544332225Georgia's Global Imports (%)
19
19
1511107333325Georgia's Global Exports (%)Total: USD 0.01 billion Total: USD 1,763.77 billion
Total: USD 8.10 billion Total: USD 2.74 billionTotal:  USD 545.19 billion
Total: USD 0.10 billion
WT/REG397/1  
 
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  1.2  Trade in services and investment  
1.6.  In 20171, Hong Kong, China 's share of total world commercial services exports and imports 
was 1.96% and 1.52% respectively , while in 201 8 Georgia's sh are of total commercial services 
exports and imports w as 0.08% and 0.04% respectively of world totals.   
1.7.  With total commercial export s of USD 114 billion, and imports of US D 81 billion Hong Kong, 
China  was the  8th largest exporter and 11th largest importer of services  (excluding intra -EU trade) . 
Georgia was the 59th largest exporter (US D 4.3 billion) and 86th largest importer (US D 2.1 billion)  
(excluding intra -EU trade) .  
1.8.  Charts 1.3 and 1.4  below show global trade in commercial services for Hong Kong, China  and 
Georgia based on the period 2005 -2017. Hong Kong, China  ran a surplus in trade in services with 
the world during the period , with its largest exports and imports transport and travel . Georgia 
enjoyed a surplus in services over the period, with travel  and transport  respectively its largest export 
and import sector s.  
Chart 1.3 Hong Kong, China: Trade in commercial services with world, 2005 -2017  
 
Note:  No imports data recorded for the categories "Manufacturing services on physical inputs owned by 
others" (2005 -17); "Construction" (2017); Charges fo r the use of intellectual property .i.e. (2017); 
Telecommunications, computer, and information services (2017);  
 No exports data recorded for the categories "Construction" (2017); Charges for the use of 
intellectual property n.i.e. (2017); Telecommunications, computer, and information services (2017); 
Other business services (2017); and Personal, cultural, and recreational services (2017) ; 
 Data for 2017 is WTO's estimation.  
Source:  WTO Statistics database based on BPM6.  
 
1 Source: WTO Trade Profiles 2017.  
0.010.020.030.040.050.060.070.080.090.0
2005 2007 2009 2011 2013 2015 2017A. Hong Kong, China imports from world 
2005 -2017
(USD Billion)
0.020.040.060.080.0100.0120.0
2005 2007 2009 2011 2013 2015 2017B. Hong Kong, China exports to world
2005 -2017
(USD Billion)
WT/REG397/1  
 
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  Chart 1.4 Georgia: Trade in commercial services with world, 2005 -2017  
 
Note:  No imports data recorded for the category "Construction" (2005 -2006).  
 No exports data recorded for the category "Personal, cultural, and recreational services" (2017).  
Source:  WTO Statistics database based on BPM6.  
 
1.9.  Charts 1.5 and 1.6 below depict each Party's foreign direct investment stocks and flows with 
the world during the period 2005 -2017. FDI stocks have grown steadily for both Parties. Hong Kong, 
China  has mostly been a net recipient of FDI stock throughout the period  although outward 
investment is substantial . Georgia has seen FDI inward stock in particular continue to grow  rapidly , 
whilst outward stock has grown at a much lower rate .  
Chart 1.5 Hong Kong, China: FDI stock and flow  with world, 2005 -2017  
 
Source:  UNCTAD . 
0.00.20.40.60.81.01.21.41.61.82.0
2005 2007 2009 2011 2013 2015 2017A. Georgia imports from world 
2005 -2017
(USD Billion)
0.00.51.01.52.02.53.03.54.04.5
2005 2007 2009 2011 2013 2015 2017B. Georgia exports to world
2005 -2017
(USD Billion)
05001,0001,5002,0002,500
2005 2007 2009 2011 2013 2015 2017Hong Kong, China FDI stock with world
2005 -2017 (USD Billion ) 
Inward Outward
020406080100120140160180200
2005 2007 2009 2011 2013 2015 2017Hong Kong, China FDI flow with world
2005 -2017 (USD Billion) 
Inward OutwardWT/REG397/1  
 
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  Chart 1.6 FDI stock and flow with world, 2005 -2017  
 
Source:  UNCTAD.  
 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Free Trade Agreement between Georgia and Hong Kong, China  ("the Agreement") was 
signed by the Parties on 28 June 2018 and entered into force on 1 3 February 2019. The goods and 
services aspects of the Agreement were notified to the WTO by the Parties on 12 February  2019 
under Article XXIV(7)(a)  of the GATT  and Article V:7(a) of the GATS respectively (document 
WT/REG39 7/N/1 and S/C/N/9 23).  
2.2.  The text of the Agreement is available, together with its related Annexes, on the following 
official websites:  
Hong Kong, China:  http://www.tid.gov.hk/english/ita/fta/hkgefta/index.html  
Georgia:    http://www.economy.ge/?page=ecopolitic&s=12  
2.3.  The Agreement consists of 18 Chapters and 7 Annexes  (Box 2.1 below) .  
Box 2.1 Structure of the Agreement  
Preamble   
Chapter 1  Initial Provisions, Definitions and Interpretations  
Chapter  2 Trade in Goods  
Chapter 3  Rules of Origin  
Chapter 4  Customs Procedures and Trade Facilitation  
Chapter 5  Technical Barriers to Trade  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Trade Remedies  
Chapter 8  Trade in Services  
Chapter 9  Electronic Commerce  
Chapter 10  Establishment  
Chapter 11  Intellectual Property  
Chapter 12  Competition  
Chapter 13  Environment and Trade  
Chapter 1 4 Transparency  
02468101214161820
2005 2007 2009 2011 2013 2015 2017Georgia FDI stock with world
2005 -2017 (USD Billion ) 
Inward Outward
-0.50.00.51.01.52.0
2005 2007 2009 2011 2013 2015 2017Georgia FDI flow with world
2005 -2017 (USD Billion) 
Inward OutwardWT/REG397/1  
 
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  Chapter 1 5 Institutional Provisions  
Chapter 1 6 Dispute Settlement  
Chapter 1 7 General Provisions and Exceptions  
Chapter 1 8 Final Provisions  
  
Annex 2-1 Georgia's Exclusion List  
Annex 3-1 Product Specific Rules of Origin  
Annex 3-2 Certificate of Origin  
Annex 8 -1 Hong Kong, China's Schedule s of Specific Commitments on Services  
Georgia's Schedule s of Specific Commitments on Services  
Annex 8 -2 International Maritime Transport  
Annex 10-1 Schedules of Reservations  
Hong Kong, China's Schedule of Reservations  
Georgia's Schedule of Reservations  
Annex 16-1 Rules of Procedure of Arbitral Tribunal  
Source:  WTO Secretariat based on the Agreement.  
 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  Chapter 2 of the Agreement (Articles 1 -9) covers trade in goods. The Partie s agree to a ccord  
national treatment to the goods of the other Party in accordance with Article III of GATT 1994 w hich 
is incorporated into the Agreement, mutatis mutandis  (Article 2.3). 
3.2.  The Parties shall ensure that import licensing regimes applied to originating goods are 
consistent with the WTO Agreement and the Agreement on Import Licensing Procedures (Article  7). 
3.3.  All fees and charges of whatever character (other than customs dut ies, charges equivalent to 
an internal tax or other internal charges applied c onsistently with Article III:2 of the GATT 1994, 
and antidumping and countervailing duties applied in accordance with Article  VI and XVI of the GATT 
1994, the Agreement on the Im plementation of Article VI of the GATT 1994 and the Agreement on 
Subsidies and Countervailing Measures) imposed on or in connection with importation or exportation 
shall be limited to the approximate cost of the provision of the service rendered and not re present 
indirect protection to domestic production (Article 2.8).  
3.4.  Article 2.9 of the Agreement, concerns adm inistration of trade regulations. Article 2.9.1 
requires that the Parties act in accordance with Article X of the GATT 1994. Article 2.9.2 mirrors 
Article VIII.3  of the GATT 1994.   
3.1.2   Liberalization of trade and tariff lines  
3.5.  In 201 9, Georgia's applied MFN tariff comprised 10, 026 lines of which  209 lines had specific 
rates of duty and 37 lines had other duties.   
3.6.  Each Party agrees to eliminate  all customs duties on originating goods of the other Party as 
from the date of entry into force of the Agreement , except as provided in Article 2.4.2. Article 2.4.2 
provides that Georgia's elimination of customs duties will not apply to the products contained  in its 
Exclusion List (Annex 2 -1 of the Agreement). Products in the Exclusion list will remain subject to the 
MFN customs duty rate when  imported into Georgia (Article 2.4.1) . The products listed in  Georgia's 
exclusion list in  Annex 2 -1 are mostly agricul tural goods.  WT/REG397/1  
 
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  3.7.  Neither Party shall increase any existing customs duty or introduce a new customs duty on an 
originating good of the other Party other than in accordance with this Agreement (Article 4.3) . 
3.8.  Under Article 2.5, the classification of goods in trad e between the Parties shall be that set out 
in each Party's respective nomenclature in conformity with  the Harmonized System.   
3.9.  Table 3.1 shows tariff and trade liberalization offered by Georgia under the Agreement. In 
2019, 82% of Georgia's tariff lines we re duty free on an MFN basis, corresponding to 92.5% of 
Georgia's imports from Hong Kong, China  during 201 6-2018. Following the Agreement's entry into 
force, Georgia liberali zed an additional 1, 452 lines representing 1 4.5% of Georgia's tariff and 7.1% 
of its imports from  Hong Kong, China  between 201 6-2018. After 201 9, 353 lines will remain dutiable, 
representing 3.5% of Georgia's tariff and 0.3% of imports from  Hong Kong, China  between 201 6-
2018.  
Table 3.1 Georgia - Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Georgia 's 
tariff 
schedule  Value of Georgia 's 
imports from Hong 
Kong, Chin a 
(2016-2018 )a 
USD million  % of Georgia 's total 
imports from  Hong 
Kong, China  
(201 6-2018) 
2019 (MFN)  8,221  82.0 88.7 92.5 
2019 1,452  14.5 6.8 7.1 
Remain dutiable  353 3.5 0.3 0.3 
Total 10,026  100.0  95.8 100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates are excluded .  
 Based on the HS 201 2 nomenclature.  
Source:  WTO estimates based on data provided by Georgia and IDB -WTO. 
 
3.10.   Table 3.2 shows tariff and trade liberalization offered by Hong Kong, China  under the 
Agreement. In 201 9, 100% of Hong Kong, China 's tariff lines were duty free on an MFN basis, 
corresponding to 100% of imports from Georgia during 201 6-2018. After the entr y into force of the 
Agreement all lines will  remain tariff fee .  
Table 3.2: Hong Kong, China – Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in Hong 
Kong, 
China 's tariff 
schedule  Value of Hong Kong, 
China 's imports from 
Georgia  
(2016 -2018 )a 
USD million  % of Hong Kong, 
China 's total imports 
from  
Georgia  
(2016-2018) 
2019 (MFN)  7,584  100 6.3 100.0  
2019 - - - - 
Remain dutiable  - - - - 
Total 7,584  100 6.3 100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Hong Kong, China and WTO -IDB.  
 
3.1.3   Liberalization schedule  
3.11.   Table 3.3 shows Georgia's tariff liberalization by HS section. Liberalization t ook place during 
2019. The 3 53 products that remain dutiable are mostly agricultural products  in HS Chapters I, II 
and IV . The average tariffs of lines remaining dutiable range from 5% in HS XVI to 12% in HS I, II 
and IV:  the overall average final tariff rate is 1 1.6%.  WT/REG397/1  
 
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  Table 3.3 Georgia: Tariff elimination under the Agreement, by HS Section  
HS Section  MFN 
Average  
% Number  
of lines  Duty -free 
lines under 
the MFN 
2019  Number of 
duty-free 
lines under 
the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  
2019  
I 4.6 740 420 308 12 12.0 
II 5.6 570 306 195 69 12.0 
III 0.1 127 126 1   
IV 8.6 852 174 433 245 12.0 
V 3.0 255 192 63   
VI 0.2 1,236  1,206  30   
VII 2.0 376 259 95 22 9.1 
VIII 0.0 219 219    
IX 6.2 204 99 105   
X 0.0 216 216    
XI 0.0 1,168  1,168     
XII 0.0 112 112    
XIII 3.0 267 200 67   
XIV 2.5 63 50 13   
XV 1.2 1,013  908 105   
XVI 0.0 1,639  1,634   5 5.0 
XVII 0* 338 301 37   
XVIII 0.0 371 371    
XIX 0.0 28 28    
XX 0.0 225 225    
XXI 0.0 7 7    
Total  1.8 10,026  8,221  1,452  353 11.6 
* All MFN dutiable lines are subject to specific rates.  
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates are excluded .  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Georgia, and WTO -IDB. 
 
3.12.   Chart 3.1 below shows that for the Chapters in which duties remain once the Agreement is 
implemented, the average applied MFN and preferential duties are the same, showing no additional 
liberalization for imports from Hong Kong, Chin a.  
Chart 3.1 Georgia: Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 2012 nomenclature.  
 For the calculation of averages, duties of the tariff lines subject to specific rates are excluded.  
Source:  WTO estimates based on data provided by Georgia and WTO -IDB. 
02468101214
04
07
08
09
11
17
20
21
22
39
85Average Duty Rate
HS Chapters Preferential MFNWT/REG397/1  
 
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  3.13.   Table 3.4 shows Hong Kong, China 's tariff liberalization by HS section. As Hong Kong China 
has already zero tariff rates on all tariff lines, no further l iberalization t ook place after the entry into 
force of the Agreement.   
Table 3.4 Hong Kong, China: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% Number  
of lines  Duty -free 
lines under 
the  
MFN 2017  Numb er of duty -free lines 
under the Agreement  Remain 
dutiable  Average Final 
Tariff  
(Dutiable)  2019  
I 0.0 556 556    
II 0.0 408 408    
III 0.0 56 56    
IV 0.0 331 331    
V 0.0 204 204    
VI 0.0 1,375  1,375     
VII 0.0 289 289    
VIII 0.0 131 131    
IX 0.0 125 125    
X 0.0 152 152    
XI 0.0 1,186  1,186     
XII 0.0 64 64    
XIII 0.0 164 164    
XIV 0.0 83 83    
XV 0.0 621 621    
XVI 0.0 1,083  1,083     
XVII 0.0 230 230    
XVIII 0.0 286 286    
XIX 0.0 18 18    
XX 0.0 214 214    
XXI 0.0 8 8    
Total  0.0 7,584  7,584  - - - 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Hong Kong, China and WTO -IDB.  
3.1.4   Tariff rate quotas  
3.14.   The Agreement contains no provisio ns on Tariff Rate Quotas (TRQs) .  
3.2  Rules of origin  
3.15.   Chapter 3 of the Agreement contains provisions on rules of origin and origin implementation 
procedures and is supplemented by Annex 3-1 on Product Specific Rules of Origin (PSR)  and 
Annex  3-2 which sets out a sample of the Certificate of Or igin to be issued by the Parties authori zed 
bodies .  
3.16.   Definitions used in the Chapter are set out in Article 1. Article 2 provides that e xcept as 
otherwise provided in the Chapter, goods will be considered as originating in a Party if it is:  
• wholly obtained or produced in a Party as defined in Article 3.3;  
• produced in a Party exclusively from originating materials; or  
• produced from non -originating materials in a Party, provided that the goods conform to a 
regional value content of no less than 40% , except for the goods listed in  Annex 3 -1 which 
must comply with the requirements specified therein.  
3.17.   Regional value content is defined in Article 3.4. Goods considered to be wholly obtained (per 
Article 3.2(a)) are listed in Article 3 .3. A good shall not be considered as originating if only minimal 
operations or processes are performed on it. An exhaustive list of minimal operations or processes 
are set out in Article 3.6. Article 3.7 on de minimis  provides that a  good that do es not meet the 
change in tariff classification required under Annex 3 -1 will qualify as originating if the value of the 
non-originating materials which are used in production of the good and do not undergo the applicable  WT/REG397/1  
 
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  change in tariff classification does not exceed 10% of the ex -works price of the good. The 
methodology for calculation of the regional value content of non-originating materials is set out in 
Article 3.4. Article 3.8 to 3.13 sets out disciplines on fungible materials  (Article 3.8) , neutral elements 
(Article 3.9), pack ing materials, pack aging materials and containers (Article 3.10), accessories , 
spare parts and tools (Article 3.11), sets (Article 3.12) and direct consignment (Article 3.13).  
3.18.   Annex 3 -1 on PSR contains product -specific rules of origin and the conditions that need to be 
fulfilled for products to qualify as originating. Under p aragraph 1 of Section A of Annex 3 -1a change 
in tariff classification (2017 Harmonized System , para graph 3 of Section A ) requires that each of the 
non-originating materials used in the production of the good undergoes a change of tariff 
classification as a result of production in the Area of one or both Parties  The change could be at the 
Chapter (CC) le vel, or at the four -digit (heading) level  and RVC percentage denotes the minimum 
requirement of regional value content as calculated under Article 3.4.   
3.19.   Most of the PSR in Annex 3 -1 concern a change in classification at the chapter, heading or 
sub-heading level  from any other Chapter  (CC), with 7 lines (17.04 , 18.06 , 24, 3920.94, 5807.10, 
63.09 and 9007.92 ) requiring a change to the chapter, heading or sub -heading from any other 
heading  (CTH).  
3.20.   For most agricultural goods the CC change in tariff  classification  as a result of use of 
non-originating materials in production of the goods is the most frequently used product specific 
rule. For industrial products the PSR require ments include  CTC or RVC rul es for goods such as 
phenolic resins products ( 3920.94), rubber (40.01)  and party and accessories for projectors 
(9007.92).  
3.21.   Section 2 of Chapter 3 concerns origin implementation procedures  and includes provisions on 
certificates of origin  (Article 3.14), retention of origin documents  (Article 3.15), obligations regarding 
importation  by an importer claiming preferential tariff treatment (Article 3.16), refund of import 
customs duties or deposit s (Article 3.17), waiver of certificates of origin  (Article 3.18), verification 
of origin  (Article 3.19), denial of preferential tariff treatment  (Article 3.20), electronic origin data 
exchange system  (Article  3.21), and designated contact points on origin  (Article 3.22). According to 
the Parties , they have exchanged details of contact points with each other.  
3.3  Export duties and charges, and quantitative restrictions  
3.22.   The Parties agree that unless otherwise provided under the Agreement, neither Party shall 
adopt or maintain any non -tariff measures, including prohibition or restriction or measure on th e 
importation, or on the exportation or sale for export of any good of the other Party, except in 
accordance with its rights and obligations under the WTO Agreement (Article 2.6). All fees, charges, 
and requirements imposed in connection with importation o r exportation shall be consistent with the 
obligations under GATT 1994 (Article 2.8). According to the Parties, neither Party maintains export 
duties, charges or quantitative restrictions on an MFN basis . 
3.23.   The Agreement contains no provisions on export duti es and charges.  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.24.   Chapter 6 of the Agreement concerns sanitary and phytosanitary measures ("SPS") . The 
objectives of the cha pter are set out in  Article  6.2. The Parties reaffirm their rights and obligations 
under the WTO SPS Agreement  in Article 6.4. The Parties have agreed provisions on risk assessment , 
that they shall ensure that their sanitary and phytosanitary measures are based on an appropriate 
assessment of  the risks to human, animal or plant life or health as provided in Article 5 of the WTO 
SPS Agreement (Article 6.5). The Parties agreed to make their  best endeavours to base sanitary and 
phytosanitary measures on international standards, guidelines or reco mmendations (Article 6.6). 
The Parties recogni ze the principles of regionali zation per Article 6 of the SPS Agreement in 
Article  6.7), and they agree to accept sanitary and phytosanitary measures of the other Party as 
equivalen t in Article 6.8. In Article 6.9 on transparency,  the parties agree to ensure that their WTO WT/REG397/1  
 
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  SPS notification  requirements are complied with and that information is shared between the Parties. 
The Parties agree to explore opportunities for  technical cooperation (Article 6.10). The Par ties have 
designated and contact points on SPS in Article 6.11.2  
3.4.1.2   Technical barriers to trade  
3.25.   Chapter 5 of the Agreement concerns T echnical Barriers to Trade ("TBT") . Article 5.2 sets out 
the objectives of the Chapter . Article 5.3, defines the  scope  and provides that the c hapter applies  to 
all technical regulations, standards and conformity assessment procedures of each Party that may 
directly or indirectly affect trade in goods between the Parties – excluded are SPS measures covered 
in Chapter 6 and purchasing specifications prepared by governmental bodies for production or 
consumption requirements of governmental bodies as provided for by paragraph 1.4 of Article 1 of 
the WTO TBT Agreement. In Article 5.4 the Parties affirm their rights and obligati ons under the TBT 
Agreement.  
3.26.   The Agreement establishes disciplines for the use of international standards  and provides that 
standards issued by the ISO, IEC, ITU, and CAC shall be considered relevant international standards  
in the sense of Article 2.4 of the TBT Agreement (Article 5.6); provides for facilitation of the 
acceptance of the results of conformity assessment procedures, including exchange of information 
and cooperation between the Parties (Article 5.7); requires the Parties to ensure that their WTO TBT 
notification requirements are complied with (Article 5.8); creates a mechanism for technical 
consultations on TBT measures that a Party considers would constitute  an unnecessary obstacle to 
its exports (Art icle 5.5); requires the Parties to strengthen technical cooperation  (Article 5.10) and 
designates contact points on TBT3 (Article 5.11).  
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.27.   Article 7.4 of Chapter 7 of the Agreement concerns the application of global sa feguards. In 
Article 7. 4.1 the Parties affirm their rights and obligations under Article XIX of GATT 1994 and the 
WTO Safeguards Agreement. Article 7.4.2 clarifies that apart from Article 7.4.3, the Agreement does 
not confer  additional  rights or obligation s on the Parties with regard to actions taken pursuant to 
Article XIX of GATT 1994  and the WTO Safeguards Agreement . Article 7.4.3 requires the Parties to 
notify each other within 7 days of the initiation of any global safeguard investigation and the reaso ns 
for initiation.   
3.4.2.2   Bilateral safeguards  
3.28.   The Agreement contains no provisions on the application of bilateral safeguards.  
3.4.2.3   Special safeguards  
3.29.   There are no special  safeguard provisions in the Agreement.   
3.4.2.4   Balance of payments safeguards  
3.30.   Chapter 17, Article 6 concerns measures to safeguard the balance of payments. Article 17.6.2 
provides that when a Party is in a serious balance of payments and external financial difficulties or 
under threat thereof it may in the case of trade in goods ado pt restrictive import measures in 
accordance with GATT 1994 and the Understanding on the Balance of Payments Provisions of the 
GATT 1994 in Annex 1A to the WTO Agreement (See also Section 4.5.4 below).  
 
2 For Hong Kong, China, the Trade and Industry Department and for Georgia, the Legal Entity of Public 
Law - National Food Agency.  
3 For Hong Kong, China, the Trade and Industry Department and for Georgia the Ministry of Economy 
and Sustainable Development of Georgia.  WT/REG397/1  
 
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  3.4.3   Anti-dumping and countervailing measures  
3.31.   Article 2 of Chapter 7 concerns anti-dumping measures.  Article 7.2.1 provides  that each Party 
shall endeavour to refrain from initiating anti -dumping procedures under Article VI of GATT 1994 
and the WTO Anti-dumping Agreement against each other. If a Party receives a p roperly documented 
application for initiation of an investigation  in respect of products that are allegedly dumped from 
the other Party , it shall allow for a 30 day consultation period , and the consultations held under 
Article 7.2.2 shall be conducted with in the FTA Joint Commission under Chapter 15 of the Agreement. 
Any anti -dumping measure imposed by a Party against the exports of the other Party shall be 
terminated no later than 5 years from its imposition (Article 7.2.3). Article 7.2.4 provides that a 
Party shall not initiate an anti -dumping investigation with respect to the same product from the 
other Party within one year from a determination that resulted in the non -application or revocation 
of anti -dumping measures or from the termination of a measur e under Article 7.2.3). The application 
of a "lesser -duty" rule is required by Article 7.2.5. Article 7.2.6 requires the FTA Joint Commission 
to review after 5 years from entry into force of the Agreement whether there is a need to maintain 
the possibility of taking anti -dumping measures between the Parties.  
3.32.   Article 7.3 concerns Subsidies and Countervailing Measures . The Parties affirm their 
commitment to abi de by Article XVI of GATT 1994 and the WTO Agreement on Subsidies and 
Countervailing Measures (" SCM Agreement "). Article 7.3.2 prohibits the initiation  of, investigation  
or application of countervailing measures on goods originating in the other Party under Article VI of 
GATT 1994 and the SCM Agreement.  
3.4.4   Subsidies and State -aid 
3.33.   Apart from Article 7.3.1 (above) t here are no other provisions in the Agreement concerning 
subsidies and S tate aid.  
3.4.5   Customs -related procedures  
3.34.   Chapter 4 co vers Customs Procedures and  Trade Facilitation. Article  4.1 establishes definitions 
used in the Chapter. Article  4.2 sets out t he scope and objectives of the Chapter : (a) to simplify and 
harmoni se customs procedures of the  Parties, ( b) to facilitate trade between the Parties and ( c) to 
promote cooperation between Customs Administrations, within the scope of the Chapter.  
3.35.   The Parties have agreed provisions on facilitation (Article 4.3). Each Party shall ensure that 
its customs procedures and practices are predictable, consistent and t ransparent , and facilitate trade 
in accordance with the Chapter (Article 4.3.1). The Parties agreed to use efficient customs 
procedures, based as appropriate on international standards aiming to reduce costs and unnecessary 
delays in trade between them, in  particular the recommended practices of the World Customs 
Organization ("WCO")  and the revised International Convention on the Simplification and 
Harmonization of Customs Procedures  (Revised Kyoto Convention) (Article 4.3.2). Each Party shall 
limit control s, formalities and the number of documents required in the context of trade in goods 
between the Parties to those necessary and appropriate to ensure compliance with legal 
requirements in order to simplify procedures to the greatest extent possible (Articl e 4.3.3). 
Article  4.3.4 provides that the customs administration of each Party shall periodically review its 
customs procedures with a view to exploring options for the simplification and enhancement of 
mutually beneficial arrangements to facilitate intern ational trade.  
3.36.   On transparency , Article 4.4.1 requires each Party to promptly publish its laws, regulations 
and where applicable administrative decisions of general application relevant to trade in goods 
between the Parties. Each Party shall designate one or more  enquiry point s for customs matters 
(Article  4.4.2). According to the Parties these enquiry points have been designated . To the extent 
possible, consistent with its laws and regulations, each Party shall endeavour to publish, in advance 
on the internet, draft laws and regulations of general application relevant to trade between the 
Parties, and provide the public and interested parties with an opportunity to provide comment 
(Article 4.4.3), with a reasonable interval b etween publication and entry into force (Article 4.4.4). 
All laws and regulations of general application to trade shall be administered in a uniform and 
reasonable manner (Article  4.4.5). Articles 4 .4.6 and 4.4.7 provide that each Party shall make 
availabl e, and update to the extent possible and as appropriate, through the internet (a) a WT/REG397/1  
 
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  description of its procedures for importation, exportation, and transit in one of the official languages 
of the WTO whenever practicable, and (b) the forms and documents re quired.  
3.37.   On customs valuation, Article 4.5 provides that the Parties shall determine the customs value 
of goods traded between them in accordance with the provisions of Article VII of GATT 1994 and the 
WTO Customs Valuation Agreement.  
3.38.   On tariff classifica tion, Article 4.6  provides that the Parties shall apply the International 
Convention on the Harmonized Commodity Description and Coding System to goods traded between 
them.  
3.39.   On cooperation , Article 4.7.1 requires the Parties , to the extent permitted by their laws and 
regulations , to assist each other in relation to (a) the implementation of Chapter 4  and (b) such 
other issues as the Parties may mutually agree. Article 4.7.2 provides that the Parties shall 
endeavour to provide each other with timely notice of any significant modification of their customs 
law or customs procedures that are likely to substantially affect the operation of the Agreement.  
3.40.   Article 4.8.1 requires each Party to , subject to its customs law, provide for advance wri tten 
rulings in a reasonable, time -bound manner to applicant s on tariff classification of a good. 
Article  4.8.2 requires each Party to , subject to its customs law,  (a) provide that an exporter, importer 
or any other person with justifiable cause may apply for an advance written ruling before importation 
of the goods that are the subject of the application , (b) include a detailed description of the 
information required to process a  request for a ruling, (c) allow its customs administration to request 
that th e applicant provide further information necessary to evaluate the request, (d) ensure that an 
advance ruling is based upon the facts and circumstances presented by the applicant and any other 
relevant information in the possession of the decision maker, an d (e) provide that the ruling be 
issued expeditiously on receipt of all necessary information, within 90 days. A Party may modify or 
revoke an advance ruling where there is a change in relevant laws or regulations,  incorrect 
information was provided, relev ant information was withheld,  a change in a material fact s, or there 
was a change in the circumstances on which the ruling was based (Article  4.8.7).  
3.41.   The Parties shall provide importers, exporters or any other person affected by administrative 
decisions on a customs matter with access to an administrative review of decisions by its Customs 
Administration , and a judicial review of decisions subject to its laws and regulations (Article  4.9).  
3.42.   Article 4.10, provides that each Party shall apply information tec hnology to support customs 
operations, where it is cost -effective and efficient, particularly in the paperless trading context, 
taking into account developments in this area within relevant international organizations, including 
the W orld Customs Organizat ion.  
3.43.   The Parties agreed to adopt and maintain a risk  management system for customs control  to 
determine  which persons, goods or means of transport are to be examined and the extent of the 
examination (Article 4.11.1). Each Party shall work to further enhance the use of risk management 
techniques in the administration of its customs procedures so as to facilitate the clearance of low -
risk goods (Article 4.11.2). Risk management shall be applied in such a manner as t o not create an 
arbitrary or unjustifiable discrimination under the same conditions or a disguised restriction on 
international trade (Article 4.11.3).  
3.44.   The Parties agree to facilitate trade by adopting or maintaining simplified customs procedures 
for the release of goods (Article 4.12.1). Each Party shall adopt or maintain procedures that provide 
for (a) the release of goods as rapidly as possible after arrival , provided all other regulatory 
requirements are met, (b)  advance electronic submission and proce ssing of information before the 
physical arrival of goods with a view to expediting the release of goods  (Article 4.12.2) . Each Party 
shall ensure that goods are released within a period no longer than that required to ensure 
compliance with its customs la w. Article 4.13 sets out provisions on perishable goods.  
3.45.    Article 4.14 provides that a Party operating an Authorized Economic Operator System or 
security measures affecting international trade flows shall (a) afford the other Party the possibility 
to nego tiate mutual recognition of authorization and security measures for the purpose of facilitating 
international trade while ensuring effective customs control and (b) draw on relevant international WT/REG397/1  
 
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  standards, in particular the WCO SAFE Framework of Standards  to Secure and Facilitate Global 
Trade.  
3.46.   On border agency cooperation , Article 4.15.1 provides that each Party shall ensure that its 
authorities and agencies involved in border controls related to import, export or transit of goods 
cooperate and coordinate their procedures in order to facilitate trade. Article 4.15.2 requires that 
each Party endeavour to establish, as far as practicable, an electronic means for  communication of 
relevant information required by its customs administration and other relevant border agencies to 
facilitate the international movement of goods and means of transport.  
3.47.    Article 4.16 establishes a mechanism for consultations between the customs administrations 
on any matter arising from the implementation or operation of Chapter  4, in cases when the 
requesting Party provides reasonable grounds . Such consultations shall be conducted through the 
relevant contact points, and take place within 60 days (Article  4.16.1). If the consultations fail to 
resolve any matter, the requesting Party may refer the matter to the FTA Joint Commission for 
further co nsideration  Article 4.16.2) . Each Party shall designate one or more customs contact points  
for the purposes of Chapter 4  (Article 4.16.3) . According to the Parties, enquiry points have been 
designated.  
3.4.6   Other regulations  
3.5  Sector -specific provisions on trade in goods  
3.48.   There are no sector -specific provision s on trade in goods in the Agreement.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 8 contains disciplines on trade in services, Annex 8 -1 sets out the specific 
commitments of the Parties .  
4.1  Scope  and definitions  
4.2.  Chapter 8 on Trade in Services covers measure s adopted or maintained by a Party affecting 
trade in services  (Article 8.2.1). The Chapter does not apply to  measures affecting air traffic rights, 
measures affecting services directly related to the exercise of air traffic rights and air traffic control 
and air navigation services other than measures affecting : (i) aircraft repair and maintenance 
services; (ii) the selling and marke ting of air transport services;  and (iii) computer reservation 
services ("CRS") (Article 8.2.2). In the Agreement the Parties note the multilateral negotiations on 
the Annex on Air Transport Services of the GATS, and will conduct a rev iew to discuss appropriate 
amendments to the Agreement  in the event of a successful completion of those negotiations  
(Article  8.2.3).  
4.3.  Article 8.1(r) defines  trade in services as the supply of a service (i) cross -border, (ii) for 
consumption abroad, (iii) through commercial presence, and (iv)  through the presence of natural 
persons.  
4.2  Denial of benefits  
4.4.  Article 8.12 provides that a  Party may deny the benefits of Chapter 8 to a service supplier of 
the other Party if the service supplier is a juridical person (a) owned or controlled by persons of a 
non-Party or of the denying Party; and (b) has no substantive business operations in the Area of the 
other Party.  WT/REG397/1  
 
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  4.3  General provision s on trade in services  
4.3.1   Market access  
4.5.  Article 8.5.2 mirrors Article XVI of the GATS and provides that when a Party has entered market 
access commitments on services in its schedule to the Agreement, six kind s of limitation s cannot be 
maintained or adopted b y the Parties unless otherwise specified in their Schedules .  
4.6.  Footnote 4 to Article 8.5 provides that i f a Party undertakes a market access commitment in 
relation to the cross border supply of a service, and if the cross -border movement of capital is an 
essential part of the service itself, that Party shall permit such movement of capital. If a Party 
undertakes a market access commitment in relation to the supply of a service through commercial 
presence , it must allow related transfers of capital into its  Area. 
4.3.2   National treatment and MFN  
4.7.  Under Article 8.4 .1, which essentially replicates Article XVII of the GATS , national treatment is 
granted for the sectors for which commitments are listed in Annex 8 -1 and subject to the recorded 
conditions and qualification s. Formally identical or formally different treatment4 accorded by a Party 
to like services and services suppliers from the other Party may be considered to meet the national 
treatment requirements  (Article 8.4.2) . 
4.8.  Article 8.6.1 mirrors Article II of the GATS and provides that w ithout prejudice to measures 
taken in accordance with Article VII of the GATS, each Party shall accord MFN treatment to services 
and service suppliers of the other Party  treatment it accords to like services and service supplier s of 
any non -party. Treatment provided under other existing or future agreement notified under GATS 
Article V or V  bis is not subject to Article 8.6.1. According to the Parties, Chapter 8 does not have 
any provision that caters for scheduling of MFN exempt ions. The Parties have not scheduled such 
exemptions in their respective schedules of specific commitments under this Agreement.  
4.3.3   Commercial presence  
4.9.  Article 8.1(b) sets out a definition of commercial presence, any type of business or professional 
establishment, including through (i) the constitution, acquisition or maintenance of a juridical 
person, or (ii) the creation or maintenance of a branch or a representative office within the area of 
a Party for the purp ose of supplying a service.  
4.3.3.1   Movement of natural persons  
4.10.   The Parties have incorporated into the Agreement, inter alia , the GATS Annex on Movement 
of Natural Persons  in Article 8.16.1 . Apart from that Article, the Agreement contains no separate 
obligations on the movement of natural persons.  
4.11.   In their respective Schedules of specific commitments in services (Annex 8 -1 to the 
Agreement) the Parties have made horizontal commitments5 in relation to mode 4 . Tables 4.1 and 
4.2 below summarise entry and temporary stay for the categories for which the Parties make 
commitments under Annex  8-1.  
 
4 Formally identical or formally different treatment shall be considered to be less favourable if it modifies 
the conditions of competition in favour of services or service suppliers of that Party compared to like services 
or servic e suppliers of the other Party (Article 8.4.3).  
5 Hong Kong, China has also added clarifications concerning its commitments under mode 4 in 
Appendix  1 to its Annex 8 -1 Schedule of specific commitments. Appendix I clarifies that Hong Kong, China's 
Commitmen ts on Intra -corporate transferees under Mode 4 apply only to the sectors and sub -sectors listed in 
the Appendix.  WT/REG397/1  
 
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  Table 4.1 Hong Kong, China: Commitments on movement of natural persons  
Category  Sub-categories  Length of stay  
(a) Business 
Visitors 
(applicable to all 
sectors in the 
WTO Services 
Sectoral 
Classification List 
(MTN.GNS/W/120)   Natural person of Georgia seeking temporary entry 
for purpose of  
(1) attending meetings, conferences or 
consultations;  
(2) taking orders, negotiati ng contracts for a 
juridical person in Hong Kong, China but not selling 
goods or providing services ; or 
(2) undertaking business consultations concerning 
establishment, expansion or winding up of a 
juridical person or investment in Hong Kong, China.  - Up to 90 days  
(b) Intra 
Corporate 
Transferees   Senior Manager, natural person of Georgia, 
employee of service supplier of Georgia with 
commercial presence in  Hong Kong, China ,  
(i) senior employee of the organization with 
responsibility for at least a substantial part of 
organi zations operations in Hong Kong, China  
(ii) has proprietary information of the organization 
and only receives general supervision or direction 
from the board or stockholders, and  
(iii) supervises and controls the work of other 
employees . 
Specialist natural persons of Georgia within an 
organization of Georgia possessing knowledge at an 
advanced level, proprietary knowledge of the 
organization, and who is essential to the operation 
of the establishment in Hong Kong, China  Temporary stay shall be limited 
to one year in the first instance , 
which may be extended up to a 
total of 5 years  
Source:  WTO Secretariat, based on Annex 8 -1 and Appendix I.  
Table 4.2 Georgia: Commitments on movement of natural persons  
Category  Sub-categories  Length of stay  
Services salespersons  (i) sales not made directly to the 
public and the salesperson is not 
engaged in supplying the service.  - 90 day maximum stay, only one 
extension after 2 months from 
expiration of 90 day period  
Business Visitors  
(Persons responsible for 
the setting up of a 
commercial presence ) Employees of an enterprise not 
having a presence in Georgia and 
who are entering Georgia to set up 
commercial presence in Georgia  - One year  
Contractual Service 
Suppliers  Employee of a service supplier or 
enterprise, no commercial presence in 
Georgia where service is supplied.  - 3 months, cannot be extended  
Intra Corporate 
Transferees  (i) Manager,  
(ii) Executive  
(iii) Specialist.  - 3 years, may be extended by 2 years, 
once only (total 5 years)  
Source:  WTO Secretariat, based on Annex 8 -1.  
4.4  Liberalization commitments  
4.12.   The Parties schedules of commitments on services are set out in Annex 8 -1 to the Agreement . 
The Annexes follow a positive list approach (like the GATS ).  
4.13.   The schedules of commitments on services i nclude horizontal commitments that are based o n 
and largely identical to their GATS Schedules.   
4.4.1   MFN and horizontal commitments  
4.14.   Georgia has no MFN exemptions in the Agreement. U nder the GATS  its MFN exemptions cover 
some transport services (road transport) , fisheries and  generally require reciprocity. Georgia also 
has an MFN exemption in respect of audio -visual services with respect to cinematographic activities,  
in favour of France and other EU member countries  under the GATS .  WT/REG397/1  
 
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  4.15.   Under the GATS, Georgia's hor izontal limitations cover mainly market access exemptions in 
relation to privatization, real estate purchase limitations, and mode 4 related requirements. All its 
horizontal limitations are replicated under the Agreement.  
4.16.   Hong Kong, China has no MFN exemp tions under either the GAT S or the Agreement.   
4.17.   Under the GATS, Hong Kong, China  has no horizontal limitation s. Under the Agreement it has 
listed horizontal commitmen ts on the movement of natural persons (see above) as well as a 
horizontal reservation irrespective of the possibility that it might be covered by the GATS or not, on 
all sectors, all modes of supply, market access and national treatment with respect to (a) the 
provision of public law enforcement, ambulance services, correctional services and fire -fighting 
services; and (b) the following, to the extent that they are social services established for a public 
purpose: i.) health; ii.) education; iii.) housing; iv.) train ing; v.) transport; vi.) public utilities; 
vii.) social security; and viii.) social welfare.  
4.4.2    Sector Specific Commitments  
4.4.2.1   Hong Kong, China  
4.18.   Hong Kong, China 's FTA commitments on services (in positive list format) closely mirror its 
GATS commitments , with im provements in some sectors .  
Table 4.3 Hong Kong, China : Sector -specific liberalization under the Agreement, 
excluding mode 4 and horizontal limitations  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA sectoral 
commitments  
compared to 
the GATS  
1. Business services  Partial  Improved  
A. Professional  Services  Partial  Improved  
B. Computer  and Related  Services  Partial  Improved  
C. Research  and Development  Services  .. .. 
D. Real  Estate  Services  Partial  .. 
E. Rental/Leasing  Services  without  Operators  Partial  Same  
F. Other  Business  Services  Partial  Improved  
2. Communication services  Partial  Improved  
A. Postal  services  .. .. 
B. Courier  services  Partial Same  
C. Telecommunication  services  Partial  Improved  
D. Audiovisual  services  Partial  Same  
E. Other  .. Same  
3. Construction and related engineering services  Partial  Same  
A. General  construction  work for buildings  .. Same  
B. General  construction  work for civil Engineering  .. Same  
C. Installation  and assembly  work  .. Same  
D. Building  completion  and finishing  work  Partial Same  
E. Other  Partial Similar  
4. Distribution services  Partial  Improved  
A. Commission  agents'  services  .. Same  
B. Wholesale  trade services  .. New 
C. Retailing  services  Partial Improved  
D. Franchising  .. Same  
E. Other  .. Same  
5. Education services  .. Same  
A. Primary education services  .. Same  
B. Secondary education services  .. Same  
C. Higher education services  .. Same  
D. Adult education  .. Same  
E. Other education services  .. Same  
6. Environmental services  .. Same  
A. Sewage services  .. Same  
B. Refuse disposal services  .. Same  
C. Sanitation and similar services  .. Same  
D. Other  .. Same  WT/REG397/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA sectoral 
commitments  
compared to 
the GATS  
7. Financial services  Partial  Improved  
A. All insurance  and insurance -related  services  Partial Same  
B. Banking  and other  financial  services  Partial Improved  
C. Other  .. Same  
8. Health related and social services  .. Same  
A. Hospital services  .. Same  
B. Other Human Health Services  .. Same  
C. Social Services  .. Same  
D. Other  .. Same  
9. Tourism and travel related services  Partial  Improved  
A. Hotels  and restaurants (including catering)  Partial Improved  
B. Travel  agencies  and tour operators  services  Partial Improved  
C. Tourist  guides  services  .. Same  
D. Other  .. Same  
10. Recreational and cultural and sporting services  Partial  Same  
A. Entertainment  services  .. Same  
B. News agency services  .. Same  
C. Libraries, archives, museums and other cultural services  Partial Same  
D. Sporting and other recreational services  .. Same  
E. Other  .. Same  
11. Transport services  Partial  Improved  
A. Maritime Transport Services  Partial  Improved  
B. Internal Waterways Transport  .. Same  
C. Air  Transport  Services  .. Same  
D. Space  Transport  .. Same  
E. Rail  Transport  Services  .. Same  
F. Road  Transport  Services  .. Same  
G. Pipeline  Transport  .. Same  
H. Services  auxiliary  to all modes  of transport  .. New 
I. Other  Transport  Services  .. Same  
12. Other services  not included elsewhere  .. Same  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
the Table.  
Partial:   GATS commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full:  GATS commitments not subject to limitation(s) under market access or national treatment, 
 under any of the three modes.  
..  No commitments under GATS  and the Agreement . 
New:  New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement as compared to those under the GATS.  
Same:   Identical commitment as under the GATS.  
Similar:   Similar commitments; though possibly, in individual cases, with limited improvements and/or 
 limited additional reservations.  
Source:   WTO Secretariat, based on Hong Kong, China 's GATS Schedule (GATS(SC/135) and Annex 8 -1 of 
 the Agreement.  
 
4.4.2.1.1   Business Services  
4.19.   Under business services, for professional services, Hong Kong, China  has added new 
commitments on architectural, engineering, and urban planning and landscape architectural 
services, as well as services provided by midwives,  nurses, physiotherapists and para -medical 
personnel  representing an improvement  as the new sectors are additional commitments  compared 
to Hon g Kong, China's GATS commitments . 
4.20.   Under the GATS , Hong Kong. China's commitments on the Computer and related services 
subsector (CPC 84) are limited to consultancy services related to the installation of computer 
hardwa re, software implementation services , and data processing and data base services . Under the WT/REG397/1  
 
- 22 - 
 
  Agreement, Hong Kong, China has expanded the committed subsector to  all of Computer and related 
services,  representing an improvement.  
4.21.   Under the GATS, Hong Kong, C hina undertook a partial commitment in real estate services . 
Under the Agreement Hong Kong, China has not made commitments in the subsector . The Parties 
note that  Hong Kong, China's GATS commitments will continue to be applicable to WTO Members 
including Georgia.   
4.22.   For rental/leasing services Hong Kong, China's commitments are the same under the 
Agreement as under the GATS. Under Other Business Services, Hong Kong, China has added new 
commitments on services related to management consulting (CPC866), Packaging services (CPC 
876) and Printing, publishing (CPC 88442).  
4.4.2.1.2   Communication services  
4.23.   In comparison to it GATS commitments, Hong Kong, China has substantially impro ved its 
coverage in telecommunications services , including removal of mode 3 market access limitations on 
local services,  and inscription of  "none" for modes 1 -2 on national treatment and for mode 1 market 
access of value added services which also cover an  expanded scope with certain qualification on the 
subsector's description removed.  
4.4.2.1.3   Distribution services  
4.24.   Under the GATS Hong Kong, China ha d committed to some retailing services only (limited to 
resale of certain new and used consumer goods to the general  public). Under the Agreement Hong 
Kong, China has  expanded the coverage to include wholesale trade services, and wholesale trade 
services of fishery products , as well as expanding retailing services by removing the limitation noted 
above  (although excludi ng all pharmaceutical, medical, surgical and orthopaedic products) . In 
addition Hong Kong, China has also bound "none" in mode 1 for both market access and national 
treatment. This represents an improvement in comparison to its GATS commitments, adding a n ew 
subsector . 
4.4.2.1.4   Financial services  
4.25.   Compared to the GATS , under Banking and other Financial Services, the commitments in 
mode 3 market access are now expanded to permit establishment of locally incorporated banks  
under the Agreement .  
4.4.2.1.5   Tourism and related serv ices 
4.26.   Under the Agreement, Hong Kong, China has added a new subsector, Other lodging services 
in comparison to its commitments under the GATS. The subsector restaurant and catering services 
has been expanded with the elimination of a qualification (under the GATS this was limited to the 
sale of prepared foods and drinks through catering or in restaurants both for consumption on and 
off premises) on the scope of the subsector in comparison to the GATS commitment.  
4.4.2.1.6   Transport services  
4.27.   Under the Agreement , in respect of maritime transport services,  Hong Kong, China has added 
International transport ( passenger ) as a committed subsector , removed a qualification on storage 
and warehousing services  (previously limited to the movement or placing of goods from warehouse 
to vessels or vice versa) , added pre-shipment inspection services (limited to services performed on 
a fee or contract basis involved in the verification of quality, quantity, price and/or the customs 
classification of goods to be exported; customs or quarantine inspection is not included) t o its 
commitments . Under services auxiliary to all modes of transport, Hong Kong, China has added 
freight transport agency services , with no limitations on market access or national treatment for 
modes 1 to 3 .  WT/REG397/1  
 
- 23 - 
 
  4.4.2.2   Georgia  
4.28.   In its GATS schedule, Georgia has mad e commitments in all services sectors, though leaving 
some subsectors unbound. Transport services are covered to a substantial extent. Under the 
Agreement, specific commitments essentially remain the same, with some improvements made for 
some education , tourism and travel related services, and some transport services ( in particular 
maritime and internal waterways transport).  
4.29.   The following section identifies some of the main differences, by sector, between Georgia's 
GATS schedule and its sector -specific comm itments under the Agreement. Georgia's sector -specific 
commitments under the Agreement mirror to a very large extent its GATS commitments. Its sectoral 
and sub -sectoral commitments in the Agreement are in large part identical to its GATS commitments . 
Table  4.4 Georgia: comparison between the GATS and Agreement specific commitments 
in trade in services  
Sectors (CPC Classification)  GATS  
Sectoral Commitments  FTA Sectoral 
commitments 
compared to  
the GATS  
1. Business services  Partial  Partial  
A. Professional  Services  Partial  Same  
B. Computer  and Related  Services  Partial  Improved  
C. Research  and Development  Services  Full Same  
D. Real  Estate  Services  Full Same  
E. Rental/Leasing  Services  without  Operators  Partial  Same  
F. Other  Business  Services  Partial  Same  
2. Communication services  Partial  Partial  
A. Postal  services  .. Same  
B. Courier  services  Full Same  
C. Telecommunication  services  Partial  Same  
D. Audiovisual  services  Partial  Same  
E. Other  .. Same  
3. Construction and related engineering services  Partial  Partial  
A. General  construction  work for buildings  Partial  Same  
B. General  construction  work for civil Engineering  Partial  Same  
C. Installation  and assembly  work  Partial  Same  
D. Building  completion  and finishing  work  Partial  Same  
E. Other  Partial  Same  
4. Distribution services  Partial  Partial  
A. Commission  agents'  services  Full Same  
B. Wholesale  trade services  Full Same  
C. Retailing  services  Full Same  
D. Franchising  Full Same  
E. Other  .. Same  
5. Education services  Partial  Partial  
A. Primary education services  Full Same  
B. Secondary education services  Partial  Same  
C. Higher education services  Partial  Same  
D. Adult education  Full Same  
E. Other education services  .. Same  
6. Environmental services  Partial  Partial  
A. Sewage services  Partial  Same  
B. Refuse disposal services  Partial  Same  
C. Sanitation and similar services  Partial  Same  
D. Other  Partial  Same  
7. Financial services  Partial  Partial  
A. All insurance  and insurance -related  services  Partial  Same  
B. Banking  and other  financial  services  Full Same  
C. Other  .. Same  
8. Health related and social services  Partial  Partial  
A. Hospital services  Full Same  
B. Other Human Health Services  Full Same  
C. Social Services  Full Same  
D. Other  .. Same  
9. Tourism and travel related services  Partial  Partial  
A. Hotels  and restaurants (including catering)  Partial  Same  
B. Travel  agencies  and tour operators  services  Full Same  WT/REG397/1  
 
- 24 - 
 
  Sectors (CPC Classification)  GATS  
Sectoral Commitments  FTA Sectoral 
commitments 
compared to  
the GATS  
C. Tourist  guides  services  Full Same  
D. Other  .. Same  
10. Recreational and cultural and sporting services  Partial  Partial  
A. Entertainment  services  Full Same  
B. News agency services  Full Same  
C. Libraries, archives, museums and other cultural services  Full Same  
D. Sporting and other recreational services  Full Same  
E. Other  .. Same  
11. Transport services  Partial  Partial  
A. Maritime Transport Services  Partial  Improved  
B. Internal Waterways Transport  .. Same  
C. Air  Transport  Services  Partial  Same  
D. Space  Transport  .. Same  
E. Rail  Transport  Services  Partial  Same  
F. Road  Transport  Services  Partial  Partial  
G. Pipeline  Transport  .. Same  
H. Services  auxiliary  to all modes  of transport  Partial  Same  
I. Other  Transport  Services  .. Same  
12. Other services not included elsewhere  .. Same  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
the Table.  
Partial:   GATS commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full:  GATS commitments not subject to limitation(s) under market access or national treatment, 
 under any of the three modes.  
..:  No commitments under GATS  and the Agr eement . 
New:  New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement as compared to those under the GATS.  
Same:  Identical commitment as under the GATS.  
Source:  Georgia's GATS Schedule of Specific Commitments (GATS/SC/129), dated 20 December 2000, and 
Georgia's Schedule  8-F annexed to the Agreement.  
4.4.2.2.1   Business services  
4.30.   Under the Agreement, in comparison to its GATS commitments, in respect of computer and 
related services, Georgia has added a subsector (e) other, including maintenance and repair services 
of office machinery and data preparations services , representing a full liberalization of th e subsector.  
4.4.2.2.2   Financial services  
4.31.   Under the Agreement Georgia has revised a time -bound sectoral limitation (joint stock 
companies required to have at least one third of the board of directors membership be Georgian 
nationals, until 1 January 2004 ) on nationa l treatment and added a qualification on mode 3 noting 
that commitments on financial services under the Agreement are without prejudice to the legal or 
technical requirements or procedures set up for prudential reasons concerning establishment.  
4.4.2.2.3   Transport services  
4.32.   Georgia has added a new subsector, (a) Passenger transportation (CPC 7211) , with no 
limitations on market access for modes 1, 2 and 3 (mode 4 unbound) , representing an improvement 
in comparison to its GATS commitments .  
4.33.   It has removed it s GATS commitment in the subsector F. Road transport services (e) Freight 
transportation services  suggesting reduced commitments in transport services in the Agreement 
than under the GATS .  WT/REG397/1  
 
- 25 - 
 
  4.4.2.2.4   Other services sectors  
4.34.   Georgia replicates its GATS commitments for other sectors (construction and related 
engineering services; distribution services; environmental services; financial services; health related 
and social services; and recreational and cultural and sporting services).  
4.5  Regulatory provisions  
4.5.1   Domestic reg ulation  
4.35.   Article 8.8 concerns domestic regulation and is similar to Article VI.1 -6 of the GATS , with 
procedural improvements . Article  8.7 provides that a Party shall (in accordance with its laws and 
regulations) permit services suppliers of the other Party to use enterprise names under which they 
trade in the other Party.  
4.5.2   Recognition  
4.36.   In Article 8.9 the Parties have made reference to Article VII of the GATS. In addition, in 
Article  8.9.2, the y agree that if a Party recognises the education, experience, licences or certification 
granted in the Area of a non -party, nothing in Article 8.6 (MFN) shall be construed to require the 
Party to accord such recognition to the other Party.  
4.37.   In Article 8.10.1 the Parties agree to encourage, where possible, the relevant bodies in their 
respective Area responsible for issuance and recognition of professional and vocational qualifications 
to strengthen cooperation and to explore possibilities for mutual recognit ion of respective 
professional and vocational qualifications.  The Parties have agreed that they may  discuss , as 
appropriate,  relevant bilateral, plurilateral and multilateral agreements relating to professional and 
vocational services (10.1) . According to the Parties no such  discussions have taken place.  
4.5.3   Subsidies  
4.38.   Article 8.2(d) provides that Chapter  8 shall not apply to subsidies or grants provided by a 
Party, including Government -supported loans, guarantees, and insurance . Article 8.14.1 concerns 
subsidie s, and provides for consultations should a Party consider that it is adversely affected by a 
subsidy of the other Party. In Article 14.2  the Parties have agreed to review any disciplines agreed 
under Article XV of GATS with a view to incorporating them int o Chapter 8.  
4.5.4   Safeguards  
4.39.   The Parties have confirmed that w hile there are  no provisions on safeguards in services  per 
se in the Agreement,  Article 17.6 concerns measures to safeguard the balance of payments. 
Article  17.6.2 provides that when a Party is in a serious balance of payments and external financial 
difficulties or under threat thereof it may (a)  adopt or maintain restrictions on trade in services on 
which it has undertaken specific commitments, including on payments or transfers for transactions 
related to such commitments, and ( b) in relation to establishment (Chapter 10) in accordance with 
Article XII.2 to 3 of the GATS, mutatis mutandis  may adopt or maintain restrictions to safeguard the 
balance -of-payments. Such restrictions on trade in services  shall be consistent with the Articles of 
Agreement of the IMF, avoid unnecessary damage to the commercial, economic and financial 
interests of the other Party, not exceed those necessary to deal with the circumstances, be 
temporary and phased out as circu mstances improve, be applied on a non -discriminatory basis so a 
Party is not treated less favourably than a non -party  (Article 17.6.3) . 
4.5.5   Other  
4.5.5.1   Monopolies and Exclusive Service Supplie rs 
4.40.   The Parties have agreed disciplines on monopolies and exclusive service  providers  
(Article  8.15) . Each Party shall ensure that any monopoly supplier of a service in its territory does 
not, in the supply of the monopoly service, act in a manner inconsistent with that Party's obligations  
under Article 8.6 (MFN) and its Annex 8 -1 schedule of specific  commitments (Article 8.15.1). If a 
Party proposes to grant monopoly rights in relation to a sector or subsector covered by its specific WT/REG397/1  
 
- 26 - 
 
  commitments under the Agreement, that Party shall advise the other Party of the grant of monopoly  
rights at least 3 months in advance of the granting of the rights (Article 8.15.4). The obligations also 
apply to cases of exclusive service suppliers where a Party authorises or establishes a small number 
of service suppliers and substantial ly prevents  competition among those suppliers in its territory 
(Article  8.15.5). 
4.5.5.2   Other Investment  provisions  
4.41.    Chapter 10 concerns establishment. Article 1 sets out definitions used in the Chapter. 
Commercial presence means any type of business establishment, includin g through (i) the 
constitution, acquisition or maintenance of a juridical person, or (ii) the creation or maintenance of 
a branch or a representative office, within the Area of a Party for the purpose of performing an 
economic activity.  
4.42.   Article 10.2 provi des that the Chapter applies to commercial presence in all sectors, with the 
exception of services sectors covered by Chapter 8 (Trade in Services) .6 The Chapter applies without 
prejudice to the interpretation or application of other international agreemen ts relating to investment 
to which the Parties are part ies. In the event of a conflict between the Agreement and the bilateral 
agreement the bilateral agreement concerning promotion and protection of investment shall prevail 
(Article 10.2.2). Footnote 7 to  Article 10.2 notes that nothing in the Chapter shall be construed to 
impose any obligation with respect to investment protection matters such as protection against 
expropriation full protection and security and other investment protection matters. Footnot e 9 notes 
that the Parties understood that any dispute settlement mechanism of an investment protection 
agreement to which the Parties are part ies is not applicable to alleged breaches of the Chapter.  
4.43.   Article 10.3 on national treatment, provides that ea ch Party shall accord to juridical and 
natural persons of the other Party and to the commercial presence of such persons, treatment no 
less favourable than it accords, in like circumstances, to its own juridical and natural persons and to 
the commercial prese nce of such persons, subject to reservations taken under Article 10.4 and 
inscribed in Annex 10 -1. Article 10.4 (reservations) provides that Article 3 does not apply any 
reservation scheduled in Annex 10 -1, any amendment to such a reservation  which does no t decrease 
the conformity of the reservation , and any new reservation added to Annex 10 -1 which does not 
affect the overall level of commitments . A Party may add or remove  reservations set out in a Party's 
Annex 10 -1 Schedule by written notifications to th e other Party. On receiving written notification on  
a new reservation, the other Party may request consultations regarding the new reservation.  
4.44.   Article 10.6.1 provides that nothing in the Chapter shall be construed to prevent a Party from 
adopting, maintaining or enforcing any measure consistent with the Chapter that is in the public 
interest, such as measures to meet health, safety or environmental concerns  and reasonable 
measures for prudential purposes. Article 10.8.1 provides that except in the circumstances 
envisaged in Article 6 of Chapter 17  (Measures to Safeguard the Balance -of-Payments) , a Party shall 
not apply restrictions on current payments and ca pital movements relating to commercial presence  
activities  in non -services sectors.  
4.45.   Annex 10 -1 sets out the Parties Schedules of reservations. Hong Kong, China's reservations 
concern the fishing sector, manufacture and storage of dutiable commodities, m anufacture of optical 
discs and stampers , mining, and a few horizontal reservations such as a reservation for measure s 
with respect to the acquisition or ownership of land and properties . Georgia lists reservations in 
relation to fishing, agriculture and pow er and energy.  
4.6  Sector specific provisions on trade in services  
4.6.1   International Maritime Transport  
4.46.   Annex 8 -2 to the Agreement concerns international maritime transport.  Paragraph  1 defines 
international maritime transport as door-to-door and multi -modal trans port operations, being the 
carriage of goods using more than one mode of transport, involving a sea -leg, under a single 
transport document, and to this effect the right to directly contract with providers of other modes of 
 
6 Footnote 8 to Chapter 10 notes that it is understood that services  specifically exempted from the 
coverage of Chapter 8 also do not fall und er the scope of the Chapter.  WT/REG397/1  
 
- 27 - 
 
  transport.  Paragraph  2 provides t hat for international maritime transport, each Party shall grant 
non-discriminatory treatment to vessels flying the flag of the other Party, as compared to the 
treatment accorded to its own vessels, with regard to access to ports, the use of infrastructure  and 
auxiliary maritime services of those ports, as well as related fees and charges, customs formalities 
and assignment of berths and facilities for loading and unloading.  In paragraph 3 the Parties agree 
that each Party shall permit the movement of empty  containers (not being carried as cargo against 
payment ) between its ports.  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 1 4 concerns transparency. Article 1.1 requires each Party to ensure that laws, 
regulations, procedures and administrative rulings of general application that may affect any matter 
covered by the Agreement are promptly published, including through the interne t. Article X of the 
GATT 1994 and Article III of the GATS are incorporated mutatis mutandis  (Article 1.3).  
5.2  Current payments and capital movements  
5.2.  If a Party undertakes a market access commitment in relation to the supply of a service through 
commercial pr esence , it must allow related transfers of capital into its Area(Article 5 of Chapter 8 
on trade in services) . Article 8.1 of Chapter 10 on Establishment, provides that except in the 
circumstances envisaged in Article 6 of Chapter 17 (safeguards for balanc e of payments reasons), a 
Party shall not apply restrictions on current payments and capital movements relating to commercial 
presence in non -services sectors.  
5.3  Exceptions  
5.3.  Chapter 1 7 concerns exceptions.  The general exceptions of Article XX of the GATT 199 4, 
including its interpretative notes are incorporated into and made part of the Agreement for the 
purposes of Chapter 2 (Trade in Goods), Chapter 3 (Rules of Origin), Chapter 4 (Customs Procedures 
and Trade Facilitation), Chapter 5 ( TBT), Chapter 6 ( SPS), Chapter 7 (Trade Remedies), and the 
Annexes to those Chapters (Article 2.1). Article XIV of the GATS, including its footnotes is 
incorporated into the Agreement for the purposes of Chapter 8 (Trade in Services)  and Chapter 10 
(Establishment) and the Annex es to those Chapters  (Article 17.2.2).  
5.4.  Article 17.3 on Security Exceptions provides that Article XXI of the GATT 1994 and 
Article  XIVbis of GATS are incorporated into and made part of the Agreement, mutatis mutandis.  
5.5.  Article 17.1 provides that nothing in  the Agreement shall require a Party to furnish or allow 
access to confidential information, the disclosure of which would impede law enforcement or 
otherwise be contrary to the public interest or which would prejudice the legitimate commercial 
interests o f particular enterprises, public or private. As a general rule, unless otherwise provided in 
the Agreement, where a Party provides written information to the other Party in accordance with the 
Agreement and designates the information confidential, the othe r Party shall maintain the 
confidentiality of the information (Article 17.2). 
5.4  Accession and Withdrawal  
5.6.  Chapter 18, Article 4 of the Agreement provides that the Agreement shall remain in force until 
either Party notifies the other Party in writing to termin ate the Agreement. Termination will take 
effect 180 days following the receipt of the notification.  
5.7.  There are no provisions in the Agreement on accession by third parties to the Agreement.  
5.5  Institutional framework  
5.8.  Chapter 1 5 concerns institutional provisions. An FTA Joint Commission is established  to 
consider matters relating to the implementation of the Agreement and proposals for further 
development of the Parties ' trade relationship (Article s 15.1 and 15.2). The Commission  may 
establish additional committees or ad hoc working groups as necessary, further the implementation WT/REG397/1  
 
- 28 - 
 
  of the Agreement, resolve any differences that may arise regarding the implementation of the 
Agreement and take such other  action as the Parties may agre e (Article 15.2.2 ). The Commission's 
rules of procedure are set out in Article 15.3. According to the Parties the Joint Commission has not 
yet been convened and the committees or ad hoc working groups  have not yet been established . 
5.6  Dispute settlement  
5.9.  Chapt er 16 sets out the Agreement's dispute settlement procedure  (including Rules of 
Procedure for the Arbitral Tribunal in Annex 16 -1).  
5.10.   The scope of application of Chapter 1 6 is set out in Article 2, u nless otherwise provided in the 
Agreement, whenever a Part y considers that the other Party has failed to carry out its obligations 
under the Agreement, the dispute settlement  provisions of Chapter 1 6 apply.  
5.11.   In principle all chapters and annexes are subject to the dispute settlement provisions of 
Chapter 1 6, except Chapter 10  (bilateral investment treaties between the Parties) , Chapter 12 
(Competition) and Chapter 13  (environment and trade) and any other chapters that may be 
expressly excluded.  
5.12.   Article 16.3 provides that when a dispute regarding the same meas ure arises under the 
Agreement as well as under other agreements to which the Parties are party, the complaining Party 
may select the forum in which to settle the dispute. Once selected, that forum shall be used to the 
exclusion of other fora .  
5.13.   The dispute  settlement process commences with consultations (Article 16.4). If consultations 
fail to resolve the matter within 60 days (or 30 days for urgent matters) after receipt of the 
consultation request  or if no consultation takes place within the stipulated ti meframes, the 
complaining Party may request the establishment of an arbitral tribunal to examine the matter 
(Article 16.6.1 ). The composition of an arbitral tribunal is governed by Article 16.7, under which 
each Party shall select one member of the  tribuna l, and designate the Chair of the tribunal by 
common agreement. If any member of the panel has not been designated within 30 days after the 
date of receipt of the request  for establishment of the  tribunal , the Director -General of the WTO 
shall be authorize d to designate the member(s) within a further 30 days  upon request . If the 
Director -General of the WTO is a national or permanent resident of a Party, the Deputy -Director 
General or the officer next in seniority who is not a national or permanent resident of a Party shall 
be requested to make the necessary designations (Article  16.7.4). The required qualifications of the 
members of the arbitrators are set out in Article  16.7.6, and which include s a requirement that the  
members  comply with the code of conduct set out in WT/DSB/RC/1  adopted by the WTO 's Dispute 
Settlement Body  on 11 December 1996 . 
5.14.   The function of the arbitral tribunal as set out in Article 16.8 is to make an objective 
assessment of the matter before it, including  an examination of the law and facts of the case and 
the applicability of and conformity with the Agreement  (Articl e 16.8.1). Where an arbitral  tribunal 
concludes that a measure is inconsistent with the Agreement  of the Party complained against has 
failed to carry out its obligations under the Agreement, it shall  recommend that the Party complained 
against  brings its measure into conformity with or complies with its obligations under the Agreement  
(Article 16.8.2). The arbitral tribunal shall interpret the Agreement in accordance with customary 
rules of interpretation of public international law (Article 16.8.3).  
5.15.   Arbitral tribunals' rules of procedure are set out in Annex 16-1 of the Agreement. The draft 
report of the arbitral tribunal shall be issued t o the Parties within 90 days after the establishment  of 
the tribunal ( or 30 days in case s of urgency ) (Article 16.11.2), with the final report to be furnished 
within a further 30 days (or 15 days in the case of urgency, Article 11.5) . The Party complained 
against shall promptly comply with the recommendations and rulings of the tribunal, unless it 
requires a reasonable period of time to do so (Article 16.12.2). A reasonable period of time is 
normally not to exceed 15 months (Article 16.13.3). In the event o f a dis agreement  concerning 
whether the recommendations and rulings of the tribunal have been complied with, the original 
tribunal shall rule within 60 days after the matter is referred to it (Article 16.14.2).  
5.16.   If the arbitral tribunal under Article 16.14  finds that the Party complained against has not 
complied with the recommendations and rulings of the tribunal within a reasonable period of time, WT/REG397/1  
 
- 29 - 
 
  the Parties shall enter into negotiations upon request of the com plaining Party, with a view to 
agreeing on mutually acceptable compensation. If the Parties cannot reach agreement concerning 
compensation  within the specified time -frame or if the complaining Party has not made any request 
for negotiations and the reasona ble period of time has expired , the complaining Party may suspend 
the application of concessions or other obligations to the Party complained against after making the 
required notification (Article 16.15.1) . The Party complained against  may request the arb itral 
tribunal determine whether the level of suspension  is appropriate (Article 16.15.4)  and the panel 
shall present i ts determination within 60 days from the request (Article 16.15.6).  
5.17.   Article 16.17 provides that neither Party may provide for  a right of  action under its law 
including the initiation of proceedings before its respective courts against the other Party on the 
grounds that a measure of the other Party is inconsistent with the Agreement.  
5.7  Relationship with other agreements concluded by the Par ties 
5.18.   The Ag reement is the 6th RTA notified by Hong Kong, China , and the 14th by Georgia.  The 
other RTAs to which the Parties are party are set out in Table 5.1 below . 
Table 5.1 Hong Kong, China and Georgia: Participation in other RTAs (notified and non -
notified in force), as of 5 December 2019  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
HONG KONG, CHINA  
Hong Kong, China – Macao, China  27-Oct-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Hong Kong, China – Chile 09-Oct-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EFTA – Hong Kong, China  01-Oct-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Hong Kong, China – New Zealand  01-Jan-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
China – Hong Kong, China  29-Jun-03 Goods & Services  2003 GATT Art. XXIV & GATS Art. V  
ASEAN – Hong Kong, Chinaa 11-Jun-19 
13 Oct -19 Goods & Services  Not notified  
GEORGIA  
China – Georgia  01-Jan-18 Goods & Services  2018 GATT Art. XXIV & GATS Art. V  
EFTA – Georgia  01-Sep-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
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, Ukraine, Azerbaijan, 
Republic of Moldova (GUAM)  10-Dec-03 Goods & Servicesb 2017 GATT Art. XXIV & GATS Art. V  
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 - Russian Federation  10-May-94 Goods  2001 GATT Art. XXIV  
Georgia - Uzbekistan  15-Oct-10 Goods  Not notified  
Georgia – Republic of Moldova  30-Mar-07 Goods  Not notified  
a The ASEAN -Hong Kong, China FTA entered into force on 11 June 2019 for Hong Kong, China, Laos, 
Myanmar, Singapore, Thailand and Viet Nam. For Malaysia, the FTA entered into force on 13 October 
2019. According to the Parties, this FTA will be notified once it has entered into force for al l Parties.  
b According to Georgia, no agreement has been reached between GUAM Parties on trade in services.  
Source:  WTO Secretariat. Further information may be found in the WTO Database on RTAs: 
http://rtais.wto.org .  
 
5.8  Government procurement  
5.19.    The Agreement contains no provisions on Government Procurement .  WT/REG397/1  
 
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  5.9  Intellectual property rights  
5.20.   Chapter 11 of the Agreement concerns Intellectual Property. Article 11.1 provides that the 
purpose of the Chapter is to increase the ben efits from trade and investment through the protection 
and enforcement of intellectual property rights.  
5.21.   In Article 11.3 the Parties agreed that each Party shall, at a minimum provide the protection 
required under the C hapter, although it may provide more extensive protection for the enforcement 
of intellectual property rights. The Parties affirm their commitment to the TRIPS Agreement and 
other international intellectual property agreements to which the Parties are party (Article 11.4). 
The principles esta blished in the Doha Declaration on the TR IPS Agreement and Public Health 
adopted on 14 November 2001 are recogni zed by the Parties in Article  11.5.  
5.22.   Article 11.6 on exhaustion notes that the Parties agree to further discuss relevant issues 
relating to exhaustion of patents.  
5.23.   Article  11.8.1 on patentable subject matter mirrors Article 27 of the TRIPS Agreement. The 
Parties may exclude from patentability the inventions covered in Article 11.8.2. Specific protection 
of signs as t rademarks are covered by Art icle 11.11 and well-known trade marks by Article 11.12. 
Geographical indications are governed by Article 11.13, with the Parties agreeing in Article 11.13.3 
that the Parties shall take all necessary measures to ensure mutual protection of the geographical 
indications, and also agreeing to share any new legislation on the subject between them in 
footnote  10 to Article 11.13. The Parties agree to cooperate on the protect ion of  plant breeder 's 
rights in Article 11.14. The Parties are permitted to take action t o protect genetic resources, 
traditional knowledge and folklore in Article 11.16. The Parties have agreed to ensure enforcement 
of intellectual property rights including criminal penalties in accordance with the TRIPS Agreement 
in Article 11.17.  
5.24.   Article 11.18 provides that the Parties shall cooperate on intellectual property policies and 
issues.  Article 11.19 requires each Party to designate a contact point on any matter covered by the 
Chapter. According to the Parties details of such contact points have been exchanged.  
5.10  Competition  
5.25.   In Chapter 1 2 of the Agreement the Parties have agreed disciplines on competi tion. Anti -
competitive business practices means business activities or transactions that are incompatible with 
the proper functioning of the Agreement insofar as they may affect trade between the Parties 
(Article  12.1). Each Party agrees to maintain or ado pt competition laws that promote and protect 
the competitive process in its market by proscribing anticompetitive business practices 
(Article  12.3.1). Each Party agrees to be transparent, non -discriminatory and procedurally fair in the 
enforcement of compe tition law (Article 12.4.1) and to ensure that during an investigation to 
determine whether conduct violates its competition law, or before it imposes a sanction or remedy 
against a person it affords that person a reasonable opportunity to present opinion or evidence in 
its defence (Article  12.4.3).  
5.26.   The Parties have also agreed to make public their laws, regulations, guidelines on competition 
and any rules issued in relation to the administration of such (Article 12.5.1). Confidential 
information shall be protected (Article 12.7.2). Each Party maintains its independence in enforcing 
its competition laws  (Article 12.9). The Parties agree to address specific matters under the Chapter 
through consultations as required (Article 12.11). Dispute settlement under the Agreement is not 
available for matters covered by the Chapter (Article 12.10). 
5.11  Environment  
5.27.   Chapter 13 deals with environment and trade. In Article 13.1 the Parties have reaffirmed that 
each Party has the right to establish its own levels of environment al protection and environmental 
development priorities and to adopt or modify its environmental laws and  policies . The Parties 
recognise it is inappropriate to encourage trade or investment by weakening or reducing the 
protections afforded in its environme ntal laws, regulations, policies and practices, and the Parties 
have agreed to not waive or otherwise derogate from such laws, regulations, policies and practices 
in order to encourage trade and investment. The Parties have agreed to review the impact of t he WT/REG397/1  
 
- 31 - 
 
  implementation of the Agreement on the environment as appropriate at any time after the entry 
into force of the Agreement  (Article 13.5) . The Parties shall not have recourse to arbitration  under 
Chapter 16 (Dispute Settlement) for matters arising under  Chapter 13 (Article 13.7).  
5.12  Labour  
5.28.   There are no provisions in the Agreement on labour . 
5.13  Electronic commerce  
5.29.   In Chapter 9, the Parties have agreed to establish cooperation on electronic commerce, 
through research and training, business exchanges, and partici pation in multilateral and regional 
fora, while such cooperation shall be conducted in a manner compatible with their respective laws, 
regulations and competence (Article 9.2).  
5.13.1   Small and medium -sized enterprises  
5.30.   There are no provisions in the Agreement concerning small and medium sized enterprises.  
  WT/REG397/1  
 
- 32 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tabl es A1.1 and A1.2 by 
agricultural ( HS 1-24), industrial (HS Chapters 25 -97) and total products. Applied MFN duty rates in 
2019 serve as a comparison.  
2. Georgia's overall average MFN tariff rate in 201 9 was 1.8%. The average applied tariff on 
agricultural good s was 5.8%, compared to an average applied tariff of 0.7% for industrial  goods . 
Duty-free tariff lines accounted for 82% of tariff lines  overalls and 44.8% and 93% respectively for 
agricultural and industrial products . Upon entry into force of the Agreement, the overall applied tariff 
for imports from Hong Kong, China  fell to 0.3%, and zero and 1. 2% for industrial  and agricultural 
products  respectively. This gave exporters from Hong Kong, China  an average margin of preference 
of 83.3% overall and 100% and 7 9.3% for industrial  and agricultural products, respectively. The 
share of duty free lines overall rose from 82% to 96. 5% and  from 4 4.8%  to 85.8% for agricultural 
products , while the share of duty -free lines for industrial  products rose from 9 3% to almost 100% .  
Table A1. 1 Georgia: Indicators of MFN tariff rates and preferential rates for imports from 
Hong Kong, China  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
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 
(%) 
MFN 2019 1.8 11.1 82.0 5.8 11.5 44.8 0.7 10.4 93.0 
Hong Kong, 
China  2019 0.3 11.6 96.5 1.2 12.0 85.8 0.0 8.4 99.7 
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates are excluded . 
 Based on the HS 201 2 nomenclature.  
Source:  WTO estimates based on data provided by Georgia and WTO -IDB.  
 
3. Hong Kong, China 's overall avera ge MFN tariff rate in 201 9 was zero.  
Table A1. 2 Hong Kong, China: Indicators of MFN tariff rates and prefer ential rates for 
imports from Georgia  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
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 
(%) 
MFN 2019 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
Georgia  2019 0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Georgia, and WTO -IDB. 
 
4. Table A1. 3 shows the market access opportunities in Georgia for Hong Kong, China 's top 25 
exports, which in 201 6-2018 accounted for an average of 64% of its global exports.  
5. Hong Kong, China 's top 25 exports cover a total of 90 tariff lines of which 89 were already 
duty free on an MFN basis in 201 9. The one line subject to duty was liberalized upon entry into force 
of the Agreement.  WT/REG397/1  
 
- 33 - 
 
  Table A1. 3 Georgia: Market access opportunities under the agreement for Hong Kong, 
China's top  25 exports t o the world  
Hong Kong, China's top export products  
in 2016 – 2018  Access Conditions to Georgia's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2019  Number  of duty 
free lines under 
the agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate (%)  Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  2019  
710812  Gold, incl. gold plated with 
platinum, unwrought, for 
non-monetary purposes  8.8 0.0 1    
854239  Electronic integrated circuits  8.2 0.0 2    
851770  Parts of telephone sets, 
telephones for cellular 
networks or for other wireless 
networks and of other 
apparatus for the 
transmission or reception of 
voice, images or other data  6.3 0.0 4    
854231  Electronic integrated circuits 
as processors and controllers, 
whether or not combined with 
memories, converters, logic 
circuits, amplifiers, clock and 
timing circuits, or other 
circuits  6.2 0.0 2    
854232  Electronic integrated circuits 
as memories  5.7 0.0 13    
851712  Telephones for cellular 
networks "mobile telephones" 
or for other wireless networks  4.8 0.0 1    
847330  Parts and accessories of 
automatic data -processing 
machines or for other 
machines of heading 8471  4.1 0.0 2    
851762  Machines for the reception, 
conversion and transmission 
or regeneration of voice, 
images or other data, incl. 
switching and routing 
apparatus  2.7 0.0 1    
710239  Diamonds, worked, but not 
mounted or set  2.5 0.0 1    
853400  Printed circuits  1.9 0.0 3    
852990  Parts suitable for use solely 
or principally with 
transmission and reception 
apparatus for radio -
broadcasting or television, 
television cameras,  digital 
cameras, video camera 
recorders, radar apparatus, 
radio navigational aid 
apparatus or r adio remote 
control apparatus, monitors 
and projectors  1.8 0.0 7    
847170  Storage units for automatic 
data-processing machines  1.2 0.0 7    
847130  Data-processing machines, 
automatic, portable, weighing 
<= 10 kg, consisting of at 
least a central processing 
unit, a keyboard and a 
display  1.1 0.0 1    WT/REG397/1  
 
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  Hong Kong, China's top export products  
in 2016 – 2018  Access Conditions to Georgia's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2019  Number  of duty 
free lines under 
the agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate (%)  Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  2019  
711319  Articles of jewellery and parts 
thereof, of precious metal 
other than silver, whether or 
not plated or clad with 
precious metal  1.1 12.0  1 1  
844399  Parts and accessories of 
printers, copying machines 
and facsimile machines  1.0 0.0 2    
853690  Electrical apparatus for 
switching electrical circuits, or 
for making connections to or 
in electrical circuits, for a 
voltage <= 1.000v  1.0 0.0 4    
850440  Static converters  0.9 0.0 8    
847150  Processing units for automatic 
data-processing machines, 
whether or not containing in 
the same housing one or two 
of the following types of unit: 
storage units, input units, 
output units  0.7 0.0 2    
910211  Wrist-watches, whether or 
not incorporating a stop -
watch facility, electrically 
operated, with mechanical 
display only  0.6 0.0 1    
852351  Solid-state, non -volatile data 
storage devices for recording 
data from an external source 
[flash memory cards or flash 
electronic storage cards]  0.6 0.0 4    
854233  Electronic integrated circuits 
as amplifiers  0.6 0.0 1    
847180  Units for automatic data -
processing machines  0.6 0.0 1    
854140  Photosensitive semiconductor 
devices, incl. photovoltaic 
cells whether or not 
assembled in modules or 
made up into panels; light 
emitting diodes  0.6 0.0 2    
950300  Tricycles, scooters, pedal cars 
and similar wheeled toys; 
dolls' carriages; dolls; other 
toys; reduced -size "scale" 
recreational models, working 
or not; puzzles of all kinds  0.5 0.0 18    
853224  Fixed electrical capacitors, 
ceramic dielectric, multilayer  0.5 0.0 1    
Total  64.0 0.48 89 1 1 - 
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates are excluded . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Georgia, WTO -IDB, and UNSD -Comtrade.  
 
6. Table A1.4  shows the market access opportunities in Hong Kong, China  for Georgia's top 25 
exports, which in 201 6-2018 accounted for an average of 69% of its global exports  and were covered 
by 96 tariff lines all of which  were already duty  free on an MFN basis in 201 9.  WT/REG397/1  
 
- 35 - 
 
  Table A1. 4 Hong Kong, China: Market access opportunities under the agreement for 
Georgia's top 25 exports to the world  
Georgia's top export products  
in 2016 –2018  Access Conditions to Hong Kong, China's import 
markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2019  Number  of duty 
free lines under 
the agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate (%)  Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  2019  
260300  Copper ores and concentrates  15.1 0.0 1    
720230  Ferro-silico-manganese  9.9 0.0 1    
220421  Wine of fresh grapes, incl. 
fortified wines, and grape 
must whose fermentation has 
been arrested by the addition 
of alcohol, in containers of 
<= 2l  5.7 0.0 5    
080222  Fresh or dried hazelnuts or 
filberts "corylus spp.", shelled  3.8 0.0 1    
220110  Mineral waters and aerated 
waters, not containing added 
sugar, other sweetening 
matter or flavoured  3.5 0.0 2    
220820  Spirits obtained by distilling 
grape wine or grape marc  3.4 0.0 1    
310230  Ammonium nitrate, whether 
or not in aqueous solution  2.8 0.0 1    
710813  Gold, incl. gold plated with 
platinum, in semi -
manufactured forms, for non -
monetary purposes  2.7 0.0 1    
870340  Motor cars and other motor 
vehicles principally designed 
for the transport of <10 
persons, incl. station wagons 
and racing cars, with both 
spark -ignition internal 
combustion reciprocating 
piston engine and electric 
motor as motors for 
propulsion  2.5 0.0 5    
870360  Motor cars and o ther motor 
vehicles principally designed 
for the transport of <10 
persons, incl. station wagons 
and racing cars, with both 
spark -ignition internal 
combustion reciprocating 
piston engine and electric 
motor as motors for 
propulsion, capable of being 
charged by plugging to 
external source of electric 
power  2.5 0.0 5    
240220  Cigarettes, containing 
tobacco  2.5 0.0 1    WT/REG397/1  
 
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  Georgia's top export products  
in 2016 –2018  Access Conditions to Hong Kong, China's import 
markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2019  Number  of duty 
free lines under 
the agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate (%)  Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  2019  
300460  Medicaments containing any 
of the following antimalarial 
active principles: artemisinin 
"inn" for oral ingestion 
combined with other 
pharmaceutical active 
ingredients, or amodiaquine 
"inn"; artelinic acid or its 
salts; artenimol "inn"; 
artemotil "inn"; art emether 
"inn"; artesunate "inn"; 
chloroquine "inn"; 
dihydroartemisinin "inn"; 
lumefantrine "inn"; 
mefloquine "inn"; piperaquine 
"inn"; pyrimethamine "inn" or 
sulfadoxine "inn", put up in 
measured doses "incl. those 
for transdermal 
administration" or in for ms or 
packings for retail sale  2.0 0.0 2    
300490  Medicaments consisting of 
mixed or unmixed products 
for therapeutic or 
prophylactic purposes, put up 
in measured doses "incl. 
those for transdermal 
administration" or in forms or 
packings for retail sale  2.0 0.0 25    
870323  Motor cars and other motor 
vehicles principally designed 
for the transport of <10 
persons, incl. station wagons 
and racing cars, with only 
spark -ignition internal 
combustion reciprocating 
piston engine of a cylinder 
capacity > 1.500 cm³ but <= 
3.000 cm³  1.7 0.0 5    
010229  Live cattle  1.2 0.0 1    
271019  Medium oils and preparations, 
of petroleum or bituminous 
minerals, not containing 
biodiesel  1.2 0.0 15    
610990  T-shirts, singlets and other 
vests of textile materials, 
knitted or crocheted  1.2 0.0 7    
270900  Petroleum oils and oils 
obtained from bituminous 
minerals, crude  0.9 0.0 1    
271600  Electrical energy  0.8 0.0 1    
720711  Semi-finished products of iron 
or non -alloy steel containing, 
by weight, < 0,25% of 
carbon, of square or 
rectangular cross-section, the 
width measuring < twice the 
thickness  0.8 0.0 1    WT/REG397/1  
 
- 37 - 
 
  Georgia's top export products  
in 2016 –2018  Access Conditions to Hong Kong, China's import 
markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2019  Number  of duty 
free lines under 
the agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate (%)  Number  
of duty -
free 
lines  Number  
of 
dutiable 
lines  2019  
401110  New pneumatic tyres, of 
rubber, of a kind used for 
motor cars, incl. station 
wagons and racing cars  0.8 0.0 1    
740400  Waste and scrap, of copper  0.8 0.0 2    
870350  Motor cars and other motor 
vehicles principally designed 
for the transport of <10 
persons, incl. station wagons 
and racing cars, with both 
diesel engine and electric 
motor as motors for 
propulsion  0.7 0.0 5    
870370  Motor cars and other motor 
vehicles principally designed 
for the transport of <10 
persons, incl. station wagons 
and racing cars, with both 
diesel engine and electric 
motor as motors for 
propulsion, capable of being 
charged by plugging to 
external source of electric 
power  0.7 0.0 5    
721420  Bars and rods, of iron or non -
alloy steel, with indentations, 
ribs, groves or other 
deformations produced during 
the rolling process  0.7 0.0 1    
Total  69.9 0.0 96 - - - 
Note:   Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Hong Kong, China, WTO -IDB, and UNSD -Comtrade . 
 
__________