 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/GEO/12 
22 July 1999 
 (99-3076) 
Working Party on the  
Accession of Georgia  
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF GEORGIA TO THE 
WORLD TRADE ORGANIZATION 
 
 
INTRODUCTION 
1. The Government of Georgia applied for accession to the World Trade Organization in 
June 1996.  At its meeting on 18 July 1996, the General Council established a Working Party to 
examine the application of the Government of Georgia to accede to the World Trade Organization 
under Article XII of the Marrakesh Agreement Establishing the WTO.  The terms of re ference and the 
membership of the Working Party are re produced in document WT/ACC/GEO/2/Rev.3. 
2. The Working Party met on 3 March 1998 under the Chairmanship of H.E. Ms E.L. Herfkens 
(Netherlands);  and on 13 October 1998 and [28 July] 1999 under the Chairmanship of 
H.E. Ms A. Anderson (Ireland). 
DOCUMENTATION PROVIDED 3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Georgia (WT/ACC/GEO/ 3), the questions submitted by Members on the 
foreign trade regime of Georgia, together with th e replies thereto, and other information provided by 
the authorities of Georgia (WT/ACC/GEO/4, WT/ACC/GEO/7 and Addendum 2, WT/ACC/GEO/10, WT/ACC/GEO/12, WT/ACC/GEO/16, WT/ACC/GEO/18, and WT/ACC/GEO/25), including the legislative texts and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 
4. In his introductory statement, the represen tative of Georgia said that Georgia, although 
relatively small in size and popul ation, was located in a strategically important transit corridor 
between the Black and Caspian Seas.  Membership  in the WTO was the most important step in WT/ACC/SPEC/GEO/12 
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 Georgia's full integration into the world trading system.  His Government had declared rapid entry 
into the WTO the most important priority of its foreign economic policy, and a Commission on 
Accession had been established with representatives fr om virtually all ministries and departments. 
5. Georgia was undergoing econom ic transition from a centrally-planned to a market based 
economy, with major reforms of its trade regime, ba nking sector and privatization of State property.  
Georgia had adopted a new Constitution in 1995, an d had since then undertaken a major overhaul of 
its legal system to harmonize to international norms.  In addition to basic legislation such as the Civil 
Code and the Tax and Customs Codes, Georgia was introducing new legislation in key trade-related 
areas such as maritime and air transport, intellect ual property, standardization and certification, 
government procurement, privatization, and business legislation.  Parliament had made a commitment 
that all new legislation, starting from 1 September 1998, should be in full compliance with the legal 
norms of the European Communities.  Georgia was receiving technical assistance from individual 
WTO Members and international organizations in its process of reform and accession to the WTO.  He assured the Working Party that the Government of Georgia would do everything required to fulfill 
the commitments Georgia would be un dertaking in acceding to the WTO. 
6. In their opening remarks, members of the Wo rking Party welcomed the request from Georgia 
to accede to the WTO.  Many Members were impressed by Georgia's strong efforts from the outset to provide information on its foreign trade regime, and noted that the bilateral market negotiations had 
made a good start.  Although Georgia maintained so me measures which were inconsistent with WTO 
rules, such anomalies were not unusual at the beginning of an accession process.  Georgia was 
encouraged to continue its economic and trade refo rms, which would assist in accelerating the process 
of its accession to the WTO. 
7. The Working Party reviewed the economic polic ies and foreign trade regime of Georgia and 
the possible terms of a draft Protocol of Accessi on to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Geor gia's foreign trade regime, and on the terms and 
conditions of Georgia's accession to the WTO, ar e summarized below in paragraphs 8 to 179. 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
8. The representative of Georgia said that the Na tional Bank of Georgia was responsible for the 
design and implementation of monetary policy.  The National Bank had been established in 1991, and 
the final version of the Law "on National Bank" had been approved in June 1995.  In practice, the  WT/ACC/SPEC/GEO/12 
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 National Bank worked closely with the Ministry of Finance as monetary and fiscal policies were 
closely linked. 
9. Georgia's fiscal policy aimed at boosting revenue to a level to finance most current 
government expenditure, while relying in the main on external sources for capital outlays.  Georgia 
had strengthened its tax and customs administration to improve revenue performance, and maintained 
a restrained expenditure programme with emphasis on health and education.  The principal taxes 
levied in Georgia were value added tax;  profit tax;   income tax;  a fixed tax on small enterprises;  
excises;  customs duty;  social security levy, medical tax and employment fund tax levied on enterprises and employees;  property tax;  and agri cultural and urban land ta x.  In response to a 
specific question, he said that local administrations could levy taxes within the framework of national 
legislation (Article 6.3 of the Georgian Tax C ode) on entrepreneurial activities, gambling business, 
health resorts, hotels, advertising, car parking, a nd on the use of local symbols.  He confirmed that 
local administrative bodies had no right to impose any other kind of taxes. 
Foreign Exchange and Payments
 
10. The representative of Georgia said that the na tional currency – the Lari – was traded on the 
Tbilisi Interbank Currency Exchange (TICEX) as  well as in the Foreign Exchange Bureau 
Market (FXB).  TICEX functioned as a wholesale mark et for foreign exchange between banks, while 
large volumes of small retail transactions were carri ed out in the FXB.  The Government's exchange 
rate policy was based on "managed float".  No fixed target was set for the exchange rate of the Lari, 
but the National Bank of Georgia could intervene in the TICEX auction market as a buyer or seller to 
smooth out temporary imbalances between supply and demand for foreign exchange. 
11. Georgia had become a member of the Intern ational Monetary Fund in May 1992 with a quota 
of SDR 111 million.  Georgia had accepted Article VIII of the Articles of Agreement of the IMF in 
early 1997.  He confirmed that the national curre ncy was convertible on current account without any 
restrictions.  No requirements existed on the right of legal and natural pers ons to obtain, bank or 
dispose of foreign exchange, and there were no requirements to surrender foreign exchange earned 
from export operations.  He also confirmed that foreign currency needed for imports was equally 
available for goods subject to import licensing.  In re sponse to a specific question, he confirmed that a 
court order was required to freeze the bank acc ounts of domestic and foreign-owned firms. WT/ACC/SPEC/GEO/12 
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 Investment Regime
 
12. The representative of Georgia said that fore ign and domestic investment on the territory of 
Georgia was regulated under the Law "on Promotion and Guarantees of Investment Activity" of 
12 November 1996.  Foreign investors enjoyed the same rights and protection as physical and legal 
persons of Georgia according to paragraph 1, Article 3 of the Law.  Under this law, disputes between 
foreign investors and enterprises registered in Georgi a could be settled in the courts of Georgia or in 
other fora, including arbitration, such as the Intern ational Center for the Settlement of Investment 
Disputes.  A registration requirement for forei gn investors had been abolished by the Law "on 
Amendments and Changes to the Law on Promotion and Guarantees of Investment Activities" of 26 June 1998.  He added that Georgia had conc luded bilateral investment agreements with 22 
countries and was currently negotia ting such agreements with 7 mo re countries.  These countries 
included the United States, Canada, China, and many St ates in Europe, the CIS, and the Middle East.  
Information on investment was available from the Agen cy for Foreign Investment within the Ministry 
of Trade and Foreign Economic Relations. 
13. The representative of Georgia said that, subject to the payment of taxes and other compulsory 
levies, every foreign investor had the right to transfer abroad freely and without delay all 
contributions to capital, profit and other mone tary proceeds generated by investment activity 
(paragraph 5, Article 3 of the Law).  These rights could be restricted by decision of court in case of bankruptcy proceedings, criminal offence or failure to  meet civil obligations.  A foreign investor had 
the right to transfer abroad property owned by him. 
14. Investment in certain sectors was prohibited or  subject to licensing (Article 9).  Permission 
was required in order to engage in the production of  weapons and explosives;  narcotic, poisonous and 
pharmaceutical substances;  expl oration and exploitation of an y renewable or non-renewable 
substances;  exploration of de posits of natural resources;  est ablishment of casinos and gambling 
houses and the organization of games and lotteries;  banking;  insurance;  issuance of securities;  
wireless communication services and the establishmen t of radio and television channels;  and any 
other activities stipulated by the legislation of Georgia. 
15. According to the Law "on Amendments and Changes to the Law on Promotion and 
Guarantees of Investment Activities", investment  was prohibited with regard to the creation, 
production and proliferation of nuclear, bacteriol ogical and chemical weapons;  construction of 
polygons for testing nuclear, bacteriological and ch emical weapons;  importation of radioactive and 
toxic waste;  scientific research activities connect ed with human cloning;  production of narcotic  WT/ACC/SPEC/GEO/12 
 Page 5 
 
 
 substances;  cultivation of poppy, coca and hemp;  an d activities prohibited by international legislative 
acts, agreements, conventions and protocols to which Georgia was a contracting party. 
16. Concerning land ownership, the representative of  Georgia said that land was being privatised 
under two laws.  The Law on Declaration of Privat e Ownership of Land in Use by Physical and 
Private Legal Persons, adopted on 28 October 1998,  provided that non-agricultural land could be 
privatised by any Georgian natural or legal person, including 100 per cen t foreign-owned legal 
persons.  Privatisation of urban land had proceeded rapidly under this law.  As of 1 May 1999, 
approximately 3,000 parcels had been privatised.  Agricultural land could be privatised only by 
Georgian natural persons under the Law of Agri cultural Land Ownership of 22 March 1996.  
Approximately 800,000 hectares of agricultural land had been privatised by about 1 million farmers 
under this law as of May 1999. 
State Ownership and Privatization  
17. The representative of Georgia said that the pr ivatization process in Georgia had been divided 
into "small" and "medium/large" scale privati zation.  Small scale privatization had begun by 
identifying some 12,088 "objects", including both unin corporated enterprises and simple assets such 
as machinery, buildings and vehicles.  In some cases, these "objects" had been transformed into 
limited liability companies under the laws in force at the time;  in other cases blocks of assets had 
been sold directly and possibly subsequently incorp orated in some form by the buyers.  The total 
number of "objects" sold exceeded the number origin ally identified because in some cases the objects 
originally identified had been divided into two or more units for sale. 
18. Small scale privatization had largely been completed by May 1999, with 13,148 objects sold 
and a total of 405 remaining.  Of the latter, some 195 objects in the health care area included a number of small hospitals and clinics, while the "Industry" category included a number of unfinished 
construction projects which had been impossible to se ll to date.  Most of the remaining marketable 
objects in the small privatization category would be sold by the end of 1999.  "Medium/large" scale 
privatization had proceeded by first identifying so me 1,300 enterprises in 12 sectors.  By May 1999, 
1,156 of these had been converted into joint stock companies and 929 of them had been sold (i.e. the 
Government no longer held a majority of the shar es).  In many cases, all shares in these companies 
had been sold, and the Government continued to offe r for sale the remaining shares held by it.  Of the 
original 1,300 companies, 175 remained to be conv erted to joint stock companies, and of those that 
have been converted, some 227 remained to be so ld.  Enterprises not yet converted to joint stock 
companies included strategic units such as the railr oads, airports, ports, municipal utility systems, 
Tbilisi subway, and major health and educational in stitutions - some of which would be sold, and WT/ACC/SPEC/GEO/12 
Page 6  
 
 some of which would remain in G overnment ownership.  The unsold joint stock companies included a 
number of large insolvent enterprises which had proved difficult to sell.  Lists of 220 joint stock 
companies in which the Government still held at leas t 50 per cent of the shares was made available to 
the Working Party.  The objective of the Governme nt was to complete the privatization process 
substantially by the end of 2000.  The development an d status of Georgia’s progr am of privatization is 
presented in Table 1. 
19. Georgian and foreign natural a nd legal persons could take part in the process of privatization 
of enterprises with one restriction;  Georgian en terprises in which the Government owned more than 
25 per cent of the authorized capital could not purchas e privatized property.  Privatization was carried 
out by the State Property Management Ministry through auctions of blocks of shares, direct sales and 
tenders. The Government intended to retain controlling blocks of shares (51 per cent) only in 
exceptional cases when an enterprise was of strategi c interest, and the number of such enterprises was 
strictly limited.  Employees had preference in the allocation of a certain number of shares.  The greater part of State property had been privatized  by vouchers, and thousands of citizens had become 
new owners of these assets. 
20. A specific list of objects to be privatized was approved annually by the Ministry of State 
Property Management in consultation with the Mini stry of Economy, Justice and other appropriate 
ministries.  The following enterp rises were scheduled for privatization in the period 1997-2000:  
(i) telecommunication enterprises, except cable a nd radio broadcasting networks of strategic 
importance, including the First State television channel;  (ii) fuel and energy sector enterprises, 
including electric energy, the coal industry, gas, o il extraction, and the supply of oil products;  (iii) 
manufacturing enterprises;  (iv) agriculture and food  industry except training and research institutes of 
the Academy of Agricultural Sciences of Georgia;  (v) construction related enterprises except: main 
municipal pipelines, water supply, sewage and a technical evaluation bureau;  (vi) transport sector 
units except "Sakaeronavigatsia";  (vii) health servi ces excluding State medical organisations of vital 
importance;  and (viii) education services.  Preparat ions to privatize Georgia's railway infrastructure 
had begun.  Georgian Railway w ould be transformed into an LLC (limited liability company), and 
only the railway tracks would remain State property.   The representative of Georgia provided a list of 
joint-stock companies with the controlling block of  shares kept temporarily in State hands in 
document WT/ACC/GEO/10, pages 3-5.  Detailed lists of  firms owned wholly or in part by the State 
as of May 1999, and objects planned for privatizati on in 1999, were also provided to the Working 
Party.  He also noted that information on the pr ivatization process in Georgia was available on the 
Internet at www.casebycase.org.ge
 and www.georgia.net.ge/mospm .  WT/ACC/SPEC/GEO/12 
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 21. Article 4 of the Law "on Privatization of State Property" of 30 July 1997 defined State 
property not subject to privatization.  Excluded fro m privatization were land of strategic importance, 
minerals, water resources, territorial waters and ma rine economic border zones;  units of historical, 
cultural and artistic value, State archives of hi storical and cultural importance, film and photo 
documents, State funds, State museums, archives a nd funds of ministries, and scientific research 
institutes;  Georgia's treasury and monetary reser ves, reserves of precious metals, funds of national 
value, social security, medical insurance and othe r national funds;  mobilization reserves and State 
reserves;  institutions of the Academy of Sciences of Georgia;  roads for general use;  national 
cemeteries and pantheons;  administrative buildings of organs of State administration; and enterprises 
producing radioactive materials and materials fo r military purpose, and testing, designing and 
scientific institutions. 
22. Asked specifically about plans to privatize th e energy sector, the representative of Georgia 
said that restructuring of the energy sector would be completed.  The State monopoly would be eliminated gradually, and Georgia w ould invite foreign investment to help relieve the energy crisis.  
Privatization of the electric energy sector was expected to be completed in 18 months, and would 
proceed in several stages, as follows: 
 (i) In electric distribution, approximately 75 per cent of the shares of the Tbilisi electric 
distribution company "Telasi" had already been pr ivatized.  Beyond that, Presidential Decree 
No. 58 of 14 February 1999 on Rehabilitati on and Development of Georgian Electric 
Distribution Companies and Generation Assets plac ed priority on the privatization, in two 
lots, of the electricity distribution companies of eastern and western Georgia.  The Ministry 
of State Property Management and the investment bank Merrill Lynch had prepared a proposal for presentation to interested parties.   Georgia proposed to lease the management 
rights of each group of companies for a period of not less than 25 years, with no right of 
purchase.  The participants could be eith er Georgian or foreign legal persons; 
(ii)  In electricity generation, the Ministry of State Property Management had prepared a 
proposal to transfer the management rights of the joint stock companies in the hydroelectric 
plants to private investors for a period of at least 25 years.  A tender to accomplish this had 
been published on 20 May 1999;  
(iii)  Enterprises in the coal industry would be  transformed into joint stock companies, but 
the State would retain 51 per cent ownershi p until investors could be found who would 
undertake the necessary rehabilitation and modernization;  and WT/ACC/SPEC/GEO/12 
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  (iv)  The controlling block of shares in th e joint stock companies in the oil and gas 
industry would be sold by tender to investors willing to keep the companies in business and 
rehabilitate them within two years.  The Stat e companies "Saktransgas mretsvi" (gas pipeline 
from Russia to Armenia) and "Saktkhevadgasi" (import and export of refined oil products) 
would remain temporarily in State hands.  Th e decision to privatise "Saktkhevadgasi" would 
be taken in agreement with the Ministry of Energy and Fuel.  The State company 
"Saknavtobi" (oil exploration and extraction) would be transformed into a joint stock 
company; the shares, except fo r those granted to employees, would temporarily remain State 
property.  Controlling blocks of shares in other State-owned joint stock companies in this sector would be sold in tenders, and remaining shares would be auctioned. 
23. The representative of Georgia said that relia ble statistics on the share of GDP accounted for 
by State and private sectors were not available.  Ro ughly speaking, one third of the labour force was 
employed by the State and two thirds by the privat e sector.  Of the State sector, a substantial fraction 
was in government.  A generally accepted, but very rough estimate, was that 80 per cent of GDP was produced by the private sector.  No statistics were  available on the share of imports or exports 
accounted for by State-owned companies.  On the im port side, the State share was likely to be quite 
small, because the majority of imports consisted of consumer goods imported by private trading 
companies.  On the export side, the State share was larger, but no exact measure was available. 
24. The representative of Georgia confirmed the r eadiness of Georgia to en sure the transparency 
of its ongoing privatization programme and to k eep WTO Members informed of its progress in the 
reform of its transforming economic and trade regime .  He stated that his Government would provide 
annual reports to WTO Members on developments in  its programme of privatisation as long as the 
privatization programme would be  in existence along the lines of the information provided to the 
Working Party during the accession process, as well as  on other issues related to its economic reforms 
as relevant to its obligations under the WTO.  The Working Party took note of this commitment. 
Pricing Policies
 
25. The representative of Georgia said that the Cabinet of Ministers had adopted a series of 
Resolutions in the first four months of 1992, le ading to a broadbased liberalization of prices.  
Additional Cabinet Resolutions in 1993 and 1994 had removed virtually all State administrative 
controls on prices for energy, transport and other soci al services.  Price controls had been replaced by 
tariff regulation of local governments or, in the case of electricity and natural gas, by independent 
departments set up for this purpose.  Milk prices had been liberalized in 1995 and the price of bread had been deregulated in June 1996.  As a result, only natural gas, electricity and urban transport  WT/ACC/SPEC/GEO/12 
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 remained subject to price control.  Prices for a ll other goods and services were determined freely by 
the market. 
26. The representative of Georgia stated that in the application of price controls or State guidance 
now or in the future, Georgia would apply such measures in a WTO-cons istent fashion, and take account 
of the interests of exporting WTO members as provided for in Articl e III:9 of the GATT 1994.  Georgia 
would publish information on any State controls on goods  or services that may be introduced or re-
introduced in the future in its Official Journal, in cluding any changes in current controls.  The Working 
Party took note of this commitment. 
Competition Policy  
27. The representative of Georgia said that the first steps to implement an anti-monopoly policy 
in Georgia had been taken in September 1992, when  the State Council had adopted a Decree "On the 
Restriction of Monopoly Activities and the Devel opment of Competition in Georgia" and an Anti-
monopoly Policy Department had been established with in the Ministry of Economy.  Parliament had 
adopted a more comprehensive Law on Monopolistic Activity and Competition in June 1996.  An 
independent regulatory commission had been establishe d to regulate prices in energy distribution, and 
a similar commission was under consideration in the telecommunications sector. 
28. Georgia had established the legislative basi s for competitive markets, in particular by 
deregulating prices and rescinding exclusive rights pr eviously granted to certain economic agents, and 
through the abolition of restrictions on competiti on in certain activities.  The new Anti-monopoly Law 
required the establishment of a State register of natural monopolies.  According to this register, 
natural monopolies existed in the provision of pos tal services, distribution of frequency spectrum, 
railway transport, pipe line services (the State Co mpany "Sakgazi"), high-voltage power transmission 
(the State Company "Sakenergo"), air traffic cont rol and dispatcher services (the State Company 
"Sakaeronavigatsia"), and in port services (the sea ports of Poti, Batumi and Sukhumi).  Information 
on privatization of such monopolies is  provided in paragraphs 20 and 22. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES Powers of Executive, Legislative and Judicial Branches of Government
 
29. The representative of Georgia said that the ac tivities of executive, legislative and judicial 
authorities were regulated by the Constitution of Georgia, the Law on the Constitutional Court of 
Georgia of 31 January 1996, the Law on Constituti onal Jurisprudence of 21 March 1996, the Law on WT/ACC/SPEC/GEO/12 
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 the Structure of Executive Power and Rule of its Activities of 15 April 1997, and the organic Law on 
General Courts. 
30. The President of Georgia, the State Chancellery, ministries and other governmental 
institutions exercised executive powers.  As head of State, the President of Georgia conducted and 
carried out the internal and external policies of th e State, and ensured the functioning of governmental 
authorities in accordance with the Constitution.  Th e President exercised executive power himself as 
well as through ministries and other governmental au thorities and institutions.  The State Chancellery 
was headed by the State Minister.  The Governme nt was a consultative body of the President of 
Georgia, and consisted of the Stat e Minister and 21 Ministers.  Each Minister was accountable before 
the President for his area of responsibility.  The main ministries involved in the formulation and 
implementation of trade policy were the Ministries  of Economy, Foreign Affairs, Trade and Foreign 
Economic Relations, and Finance.  The President had created coordination bodies and advisory and 
consultative institutions to regulate rela tions among the entities of executive power. 
31. Parliament was the highest representative body of the State according to Article 48 of the 
Constitution.  It exercised legislative power and general control over the Government in the areas 
defined by the Constitution, and dete rmined the main directions of domestic and foreign policy.  The 
President submitted the structure of executive power  and rules of its activities to Parliament for 
approval.  Parliament meetings were public.  [The representative of Georgia stated that international 
treaties and agreements ratified by Parliament , including the WTO Agreement, had precedence over 
domestic laws and other acts in Georgia other th an the Constitution and constitutional law.  The 
hierarchy of laws in Georgia is provided in paragraph 37.] 
32. Georgia's court system exercised judicial  power independent of the other branches of 
Government in accordance with the Constitution of  Georgia of 24 August 1995, the Law on the 
Constitutional Court of 31 January 1996, and th e Law on Constitutional Jurisprudence of 
21 March 1996.  The Constitutiona l Court ensured the primacy of the Georgian Constitution, 
constitutional legacy, and the protection of huma n constitutional rights and freedom.  The Supreme 
Court of Georgia supervised the implementation of justice in courts and considered cases determined 
by law by first instance.  The Supreme Courts of the Abkhazian and Ajarian Autonomous Republics 
were the highest judicial bodies in these autonomou s regions.  The City Court of Tbilisi considered 
cases by first instance within the limits of its powers and supervised the activitie s of regional courts of 
Tbilisi.  Regional (town) courts considered all cases of civil or criminal law or administrative 
infringements except cases under the jurisdiction of another court.  The Procurator’s Office 
implemented criminal legal prosecution and supervi sed enquiries and sentences.  Georgia's arbitration  WT/ACC/SPEC/GEO/12 
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 court system had been abolished with the entry in to force of the current Constitution of Georgia.  
Decisions or actions of customs bodies and their officials could be appealed in the courts of Georgia.  
The right of appeal in customs valuation matters would be regulated by the new legislative act on 
customs valuation. 
33. Noting that the right of appeal of administrative decisions to an independent body was a 
critical component of the rule of law embodied in WTO provisions, a member requested Georgia to 
describe in detail the process of appeal to the judici ary for traders contesting administrative rulings by 
executive agencies such as in the area of customs valuation, classification and duty, taxation of 
imports, standards and sanitary certification and insp ection, application for import or export licences, 
measures taken against dumping and subsidized imports, and intellectual property protection. 
34. The representative of Georgia replied that persons engaged in comme rcial activities could 
contest decisions by applying to the Court of First Instance in accordance with Article 11 of the Civil 
Procedure Code.  The jurisdiction of the court extended to "cases arising out of public law, administrative law, tax and other relations."  The Decisions of the Court of First Instance could be appealed to appellate courts.  In addition to ri ghts of appeal mentioned in specific laws and 
regulations, Article 4 of the draft Code of Admini strative Court Procedures provided a general right of 
appeal of administrative decisions in that the le gality of any normative act, individual administrative 
action or inaction, contract of an administrativ e agency or obligation of compensation was an 
"administrative dispute" that could be appealed to  specialized administrative chambers of the regional 
or city courts.  Parliamentary approval of the new Code, however, had been delayed to the 2000 
session. 
35. The representative of Georgia confirmed th at from the date of accession Georgia’s laws 
would provide for the right to appeal administrativ e rulings on matters subject to WTO provisions to 
an independent tribunal in conformity with WTO obligations, including but not limited to 
Article X:3(b) of the GATT 1994.  The Work ing Party took note of this commitment. 
36. Parliament was responsible for ratification of  international treaties, while the President of 
Georgia and the other executive authorities were r esponsible for implementation.  Parliament adopted 
a resolution on accession to an international treaty by simple majority of its entire composition.  
Ratification by Parliament was required to co mplete the national procedures relating to WTO 
accession.  The Ministry of Trade and Foreign Economic Relations had prepared a Presidential 
Decree on Managing the WTO Relationship whic h addressed the responsibilities of various 
government institutions in fulfilling Georgia's obligations vis-à-vis the WTO. WT/ACC/SPEC/GEO/12 
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 37. The hierarchy of normative acts in force in Georgia comprised:  (i) the Constitution of 
Georgia and the Constitutional Law of Georgia;  (ii)  international treaties and agreements ratified by 
Georgia;  (iii) the Organic Law of Georgia;  (iv) Laws and Presidential Decrees;  (v) Orders of the 
President of Georgia;  (vi) Resolutions of the Parliame nt of Georgia;  and (vii) Orders of a Minister or 
head of another central governmental authority of  executive power.  International agreements had 
direct applicability in the national legal system in  accordance with Article 6 of the Constitution and 
Article 20 of the Law "on Normative Acts".  Laws , regulations and administ rative orders could be 
applied retroactively, but normative acts establis hing or approving responsibilities could not be 
applied retroactively. 
Authority of Sub-Central Governments
 
38. The representative of Georgia said that the pr inciples of coordination between the executive, 
legislative and judicial authorities were determined by the organic Law of Georgia on Local 
Governance and Self-Governance of 16 October 1997 and the Law on the Structure of Executive Power and Rule of its Activities of 15 April 1997.  The Service of local administration and regional 
policy, responsible for implementing State policy in  the area of local administration, had been 
established by Presidential Decree  No. 105 of 14 February 1997. 
39. Local representative organs could levy local taxes and fees according to the Law of Georgia 
on Local Governance and Self-Governance of 16 Oct ober 1997.  He added that in accordance with 
Article 3 of the Constitution, Georgia's supreme national bodies had exclusive power to administer 
important trade-related areas, including customs and tariff regimes; foreign trade;  standards and 
measurements, and sanitary measures at the border;  State finances and loans, minting of money and legislation on banking, credit, insurance and tax es;  legislation on intellectual property;  and 
legislation on trade, criminal law, civil law, a nd administrative and labour law.  He confirmed that 
sub-central entities within territory controlled by the Georgian Central Government had no 
autonomous authority over issues of subsidies, ta xation, trade policy or any other measures covered 
by WTO provisions.  The autonomous region of Abkhazia was included in the customs territory of Georgia, but due to the existing political situation there this region was not de facto  under the 
jurisdiction of the Central Government at present, and the local authorities did not apply the national 
customs tariff and other taxes.  Negotiations aimed at enforcement of national legislation in Abkhazia 
and the former South Ossetian Autonomous Region were ongoing.  There were no regions other than 
Abkhazia and Ossetia in which the Government an ticipated any difficulty in enforcing laws and 
customs procedures in accordance with WTO requirements.  WT/ACC/SPEC/GEO/12 
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 40. The representative of Georgia confirmed th at Georgia would apply the WTO provisions, 
including Georgia’s Protocol of Accession, uni formly throughout the entire customs territory 
controlled by the Georgian Central Government, in cluding in regions engaging in border trade or 
frontier traffic, special economic zones, and other areas where special regimes for tariffs, taxes and regulations are established.   He further confirme d that, upon accession to the WTO, Georgian Central 
Authorities would ensure that the laws, regulations  and other measures of government entities at the 
sub-national level would conform to  the obligations undertaken in Georgia's Protocol of Accession 
and the WTO Agreement, and would enforce them at  the sub-national level in all areas controlled by 
the Central Government.  He added that when appr ised of a situation where WTO provisions were not 
being applied or were applied in a non-uniform ma nner, central authorities w ould act to enforce WTO 
provisions without requiring affected parties to petition through the courts.  The Working Party took 
note of these commitments. 
POLICIES AFFECTING TRADE IN GOODS Trading Rights
 
41. The representative of Georgia said that all natural and legal persons , foreign or domestic, 
could engage in importation and exportation activities provided they were registered with the 
Taxation Department of the Ministry of Finance a nd with the State Department for Statistics.  The 
Law on Business Licensing had been enacted on 14 May 1999.  The Law authorized licenses in the 
following areas (with the responsible agency):  (i ) Insurance activities and mediation in insurance 
business (State Agency for Insurance Control);  ( ii) Banking activity, activit y of currency exchange 
shops (National Bank);  (iii) Produc tion and repair of weapons and ot her military products and their 
sale (Ministry of Justice, within limits set by the National Security Council of Georgia);  (iv) Air 
shipping, marine shipping and towing (Ministry of Transport);  (v) Securities industry, i.e. the activities of broker companies, brokers' activities, activ ities of stock exchanges, activity of the central 
depositary of securities, activity of securities registering clerks (Ministry of Finance);  (vi) Lotteries 
and other profitable games (Ministry of Finance) ;  (vii) Production and sale of pharmaceutical 
products, substances subject to special control, an d medical products used in veterinary activity; 
activity of medical organizations (Ministry of Health);   (viii) Activity of diagnostic centers in charge 
of technical assessment of motor transport means (Interior Ministry);  (ix) Design and construction 
activity (Ministry of Urbanization and Constructi on);  (x) Activities of audit firms (Auditing Council 
of the Parliament);  (xi) Activities of private educat ional institutions (Ministry of Education); and (xii) 
Metrology and Measurement activities and repair ser vices (State Department for Standardization, 
Metrology and Certification). WT/ACC/SPEC/GEO/12 
Page 14  
 
 42. According to Article 1, the Law did not apply to:  (i) the activities subject to Article 1.2 of the 
Georgian Law on Entrepreneurs;  (ii) export or im port of goods or services;  (iii) activities connected 
with environment protection or use of natura l resources, electricity or natural gas, or 
telecommunications and postal services, which were re gulated by special laws;  and (iv) production of 
food, including baby food, and tobacco  products.  Article 1.2 of the Law on Entrepreneurs stated that 
"Artistic, scientific, medical, architectural, advocati ng and notary, auditing, agricultural or forestry 
related activities performed by natural persons sha ll not be considered as Entrepreneurial activity," 
and such activities were thus not subject to the Business Licensing Law.   For the spheres which it 
regulated, the Law provided detailed procedures wh ich the responsible agencies were obliged to 
follow in issuing any required licenses.  These procedures were limitations on the authority of 
ministries to restrict or deny licenses, and were d esigned to protect businesses from arbitrary decisions 
of ministries. 
43. The representative of Georgia confirmed that the former State monopoly in foreign trade had 
been abolished and that no restrictions existed on th e right of individuals and enterprises to import and 
export goods into Georgia's customs territory, excep t as provided in WTO Agreements.  He confirmed 
that individuals and firms were not restricted in their ability to import or export based on their 
registered scope of business and the criteria for registration were generally  applicable and published 
in the official journal. 
44. The representative of Georgia confirmed that from the date of accession Georgia would 
ensure that all its laws and regulations relating to the right to trade in goods, and all fees, charges or 
taxes levied on such rights would be in full c onformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws 
and regulations in full conformity with these oblig ations.  The Working Party took note of this 
commitment. 
A. IMPORT REGULATION 
Ordinary customs duties
 
45. The representative of Georgia said that cust oms duties were established according to the Law 
No. 1316-IIs "on Customs Tariff and Duty" of 20 Ma rch 1998.  Section III of the new Customs Code 
of 14 November 1997 also contained provisions regarding customs duties.  Article 6 of the Law "on 
Customs Tariff and Duty" authorized the use of sp ecial tariffs and seasonal ta riffs – for periods not 
exceeding six months in a year – to regulate trade in  goods with particular vari ations in production or  WT/ACC/SPEC/GEO/12 
 Page 15 
 
 
 consumption.  He added that that although the lega l authority to apply seasonal rates existed, Georgia 
had so far never used seasonal rates in practice . 
46. Georgia was using the 1996 version of th e Harmonized System nomenclature as of 
1 January 1998 in accordance with Decree No. 249 of 24 December 1997 of the Chairman of the 
Customs Department of Georgia.  Tariff revenue amounted to 58.7 million Lari, collected on imports 
worth some 1.2 billion Lari (US$ 930 million) in 1997, and 58.1 million Lari on imports worth 
US$ 1,048.6 million in 1998. 
47. Customs tariffs were levied at the rate of zero, 5 per cent or 12 per cent.  All customs duties 
were ad valorem  rates.  Most imports were subject to th e 12 per cent rate, while the 5 per cent rate 
was applied to imported pharmaceuticals;  capital goods, including spare parts and supplementary 
equipment;  and specific goods used in production (listed in document WT/ACC/GEO/3, page 24).  
The average trade-weighted tariff amounted to 4.9 per cent in 1997.  This average had declined as 
substantial imports were allowed in duty free as a result of free-trade agreements and free imports of donor-provided goods.  The trade-weighted tariff for 1998, excluding goods entering duty-free, was 10.3 per cent. 
Other duties and charges levied on imports but not on domestic production
 
48. The representative of Georgia confirmed that Georgia levied no duties and charges on imports 
other than ordinary customs duties and fees and ch arges for services rendered.  Any such charges 
applied to imports after accession would be in  accordance with WTO provisions.  He further 
confirmed that Georgia would not list any other charges in its Goods Market Accession Schedule 
under Article II:1(b) of the GATT 1994, binding such charges at "zero". 
Tariff rate quotas, tariff exemptions  
49. The representative of Georgia said that tariff exemptions were authorized in accordance with 
the Law "on Customs Tariff and Duty" of 20 March 1998 (Article 18) for: (i) goods for export;  
(ii) re-exports (against payment of customs duty,  subsequently refunded, or deposition of a bank 
guarantee or imported goods of equal value with th e Georgian Customs Department;  the conditions 
are described in further detail in paragraph 88);  ( iii) goods in transit;  (iv) imported goods placed in 
customs warehouses (dutiable upon withdrawal from the warehouse or under the terms of other 
customs regimes);  (v) goods imported in relief due to  natural disasters, accidents and catastrophes, or 
as humanitarian aid;  (vi) goods financed by gran ts or concessional credits of a foreign governmental 
body or international organization, including a grant element of at least 25 per cent (defined by the WT/ACC/SPEC/GEO/12 
Page 16  
 
 Ministry of Finance);  (vii) goods designated for o fficial and personal use by foreign diplomatic and 
similar missions and their staff, and property impor ted from Georgia's diplomatic missions;  (viii) 
goods imported temporarily into the territory of Ge orgia;  (ix) imported raw materials and semi-
finished products designated for the production of e xported products, including packaging materials;  
(x) goods brought by natural persons to the value of  up to 300 Lari, per entry, in accordance with a list 
defined by Resolution of the Parliament of Georgi a No. 273-II of 13 June 1996; (xi) imports of baby 
food and baby hygiene products as well as diabetic products;  (xii) imports of Georgian classical 
literature and literary, artistic or scientific work s of Georgian citizens published abroad; (xiii) 
imported pharmaceutical products (16 products in accordance with a list approved by the Ministry of Finance, the Ministry of Health and the Ministry  of Food and Agriculture, enumerated in document 
WT/ACC/GEO/4, page 20);  and (xiv) aviation fuel , lubricants and other consumables in accordance 
with international aviation regulations. 
50. The representative of Georgia confirmed that  tariff exemptions, except those applied in the 
context of a customs union or free trade agreement, were applied on an MFN basis.  Parliament could 
accord preferences under the Generalized System of Preferences, but this scheme had not yet been 
implemented. 
Fees and charges for services rendered
 
51. The representative of Georgia said that a cust oms clearance fee equal to 0.3 per cent of the 
customs value was applied to import and export (oth er than temporary imports and exports) of all 
kinds of goods.  There were no exceptions to th is fee.  Some members pointed out that this ad 
valorem  fee, although modest, did not conform to the re quirements of GATT Article VIII.  In reply, 
the representative of Georgia said that Georgia had revi sed its legislation in this area so as to comply 
with GATT Article VIII.  Under amendments to th e Law of Georgia on Customs Fees, enacted 28 
May 1999, the customs clearance fee had been reduced from 0.3 per cent ad valorem  to 0.2 per cent 
ad valorem  effective 1 June 1999, and would be further reduced to 0.15 per cent  ad valorem, with a 
minimum charge of GEL 50 and a maximum charge of GEL 2,000 effective 1 January 2000.  With these changes, Georgia believed this fee to be cons istent with GATT Article VIII.  The charge was 
roughly proportional to the cost of the service rende red because larger transactions involved more 
effort than smaller transactions.  At the same ti me, the cap on the fee ensured that large transactions 
would not pay significantly more than the cost of th e service rendered.  The level of the fee had been 
set so as to recover only about half of the estimated  direct and related indirect costs of providing 
customs inspection and clearance services.  Approx imately fifty percent of the time of Customs 
employees was spent processing imports and exports, thus half of the total direct and indirect costs of  WT/ACC/SPEC/GEO/12 
 Page 17 
 
 
 operating the Customs Department should be recovera ble through the fee.  According to the most 
reliable estimate, the fee stipulated in the ne w amendments would produce revenues of about 
US$746,000 annually, or less than 23 per cent of the total cost of operating the Customs Department, 
estimated at US$3.3 million in 1998. 
52. Transit cargoes were charged clearance fees of 100-300 Lari, depending on mode of transport.  
Temporary imports were charged 10 Lari per ton up to  ten tons, and 3 Lari pe r ton above that amount.  
Fees for veterinary border services were established in accordance with Article 37 of the Veterinary 
Law.  Fees ranged from 70-120 Lari per consignmen t for imported goods, 60-110 Lari for goods in 
transit and 75-125 Lari for exporte d goods.  The veterinary service could charge additional fees 
according to established price lists, for example on  animal cargoes on suspicion of disease or for 
violation of transportation rules.  A charge fo r quarantine services was imposed on cargo held in 
quarantine, including fumigation and storage. 
53. The representative of Georgia confirmed that th e fees described in paragraphs 51 and 52 were 
the only fees for services related to imports and expo rts, and that, from 1 January 2000 and from the 
date of accession, Georgia would apply the customs declaration fee as described in paragraph 51, and 
would impose any fees or charges for services rendere d related to importation or exportation only in 
conformity with Article VIII of the GATT 1994.  In formation regarding the application and level of 
any such fees, revenues collected  and their use, would be provided to WTO Members upon request.  
The Working Party took no te of these commitments. 
Application of internal taxes to imports  
54. The representative of Georgia said that caviar,  alcoholic beverages, mineral water, tobacco 
and tobacco products, petrol, tyres, jewellery a nd motor vehicles were subject to excise tax  in 
Georgia.  Article 130 of the Tax Code stipulated  the same tax rate for imported and domestic 
products.  Excise taxes were applied at the border to imported goods at the moment of importation, 
and at the place of production (within 90 days of  delivery or reimbursement) for domestic goods.  
Concerning the taxation of motor vehicles, he adde d that Georgia also charged owners of motor 
vehicles an annual tax to the benefit of the road fund, and motor vehicles were subject to a tax upon 
entry (including transit) into the territory of Georgi a.  Imported motor vehicles resold in Georgia were 
not subject to additional excise tax.   The difference in ta xation of petrol was maintained for ecological 
reasons. 
55. Some members noted that excise taxes on alcoholic beverages differed widely, and asked 
Georgia to explain the rationale for this tax stru cture, and identify the kind of wines and spirits WT/ACC/SPEC/GEO/12 
Page 18  
 
 produced domestically.  Georgia was requested to im plement an excise tax regime that would meet 
the criteria of Article III of the GATT, conforming to the principles outlined in recent dispute 
settlement panels clarifying the scope of national tr eatment obligations in the application of excise 
taxes.  The representative of Georgia replied that dr y, semi dry and semi sweet grape wines accounted 
for 80 per cent of Georgia's production of alcoholic beverages, with sparkling wines (9 per cent), 
brandy (3 per cent), liqueur-vodka (6 per cent)  and ethyl spirits (2 per cent) constituting the 
remainder.  His Government recognized that certain  aspects of its treatment of alcoholic beverages 
were not fully consistent with WTO rules.  The system of customs duties, excise tax and VAT applicable to imported alcoholic beverages had ac cordingly been reviewed during 1998, and more 
recently, new amendments to the excise rates ha d been enacted on 25 June 1999.  Effective 
1 January 1999, the special rules applied to importe d alcoholic beverages had been revoked, thus the 
same excise rates applied to imported and domestic products.  In addition, th e recent amendments had 
established uniform excise rates within the classificati ons of sparkling wines, fortified wines, natural 
wines, most spirits, and beer, reflecting the requi rements of recent WTO decisions concerning excise 
taxation of alcoholic beverages.  The applicable  excise tax rates under the recent amendments are 
provided in Table 2.  Georgia had introduced exci se stamps for wine and spirits effective 20 March 
1999, and for cigarettes effective 1 April 1999.  De tailed regulations governing the administration of 
the excise stamps had been elaborated. 
56. Some members also noted the differentiation in taxation pertaining to  tobacco and tobacco 
products.  The representative of Georgia replied that his Government understood that the present 
system was not fully consistent with WTO rules.   The taxation of imported tobacco products had 
recently been reviewed in order to bring the taxe s into full compliance with WTO requirements.  The 
differential rates on domestic and imported tobacco produc ts would be unified by the date of 
accession. 
57. The representative of Georgia confirmed that, by the date of accession, all excise taxes would 
be applied uniformly to imported and domestic products, including cigarettes and other tobacco 
products, and would otherwise conform in all respect s to the requirements of Article III of the GATT 
1994.  In particular, the excise tax on vodka would be increased to conform to Article III requirements 
as interpreted in recent dispute resolution cases.  The Working Party took note of these commitments. 
58. The representative of Georgia said that the Law on Value Added Tax, one of the constituent 
parts of Georgia's Tax Code, had been adopted  by Parliament and entered into force on 
1 September 1997.  Value added tax was levied at a general rate of 20 per cen t.  VAT was applied to 
the wholesale price plus excises for domestic produc ts, and the customs value, including import duty  WT/ACC/SPEC/GEO/12 
 Page 19 
 
 
 and excises, for imports.  Exempt from VAT (Article 101 of the Tax Code as recently amended) were 
postage stamps (except for collection);  Georgi an and foreign currency (except for numismatic 
purposes) and securities;  valuables confiscated or with no known owner, and valuables inherited by 
the State;  gold to be transferred to the Nationa l Bank of Georgia;  imported books and journals on 
science, art and fiction written by Georgian citizens;  school books approved by the Ministry of Education in agreement with the Ministry of Finance;  goods given to State bodies of Georgia as 
humanitarian assistance or charity, or in relief of na tural disasters, accidents, and catastrophes;  goods 
provided as grants, approved according to a procedure specified by Presidential Decree;  goods provided in the form of grants or concessional loan s (minimum 25 per cent grant element) by bilateral 
or multilateral international orga nizations;  medicines falling within HS Chapter 30 (an exact 
enumeration of exempted products  is contained in document WT/ACC/GEO/4 pages 41-81);  medical 
technology (HS codes 90.18-90.22);  baby food;  fixed assets and spare parts (HS Chapters 84, 85 and 
90);  goods in transit and temporary imports;  re-imp orted goods;  imports for official or personal use 
of staff of diplomatic and similar representative offi ces to the extent required by relevant international 
agreements;  private imports of goods valued at  less than the threshold amount for imposition of 
customs duty;  goods processed abroad by the exporter of the raw materials;  raw materials guaranteed 
by collateral for the purpose of processing and e xportation;  and goods intended for re-export, 
guaranteed by collateral. 
59. Some members considered the VAT exemption for works of Georgian authors and Georgian 
classical literature published abroad  to be inconsistent with Article III of the GATT.  The 
representative of Georgia replied that, in the view of his Government, the exemption for imports of 
works produced abroad by Georgian authors did not violate Article III because, as an exemption for imported products, it could not disadva ntage imports in relation to dom estic products.  It was not in 
violation of Article I because it applied equally to imports from a ll nations.  The representative of 
Georgia stated further that the Tax Code had been  amended recently to extend the VAT exemption for 
certain domestic publications equally to similar im ported publications.  Georgia believed that these 
amendments had brought this part of the Tax C ode fully into compliance with GATT requirements. 
60. Concerning the taxation base for the imposition of excises and VAT, a member noted a 
provision in the tax code that the taxable transac tion be the customs value of the goods, but not less 
than the "wholesale market price, excluding the excise and VAT" (Article 125(2)).  In reply, the representative of Georgia noted that excise taxes on tobacco and alcoholic products were specific 
rather than ad valorem  rates.  He confirmed that the phrase "but not less than the wholesale market 
price" in the tax code had become obsolete w ith the implementation of new customs valuation 
regulations; its purpose had been to deal with situa tions in which the invoice value of imports was not WT/ACC/SPEC/GEO/12 
Page 20  
 
 a fair representation of the transaction value.  It  was expected to be deleted in the next general 
revision of the tax code; thus the basis for ad valorem  excise taxes on imported goods was the 
customs value, determined in acco rdance with the Customs Valuation Agreement, plus the applicable 
tariff and other duties. 
61. The representative of Georgia said that Geor gia applied the destination principle in VAT 
taxation as from 1 Septembe r 1997.  The VAT rate was accordingly identical for locally produced and 
imported products, including impor ted goods originating in other CIS countries (Article 100). 
62. The representative of Georgia confirmed that, from the date of accession, Georgia would not 
use minimum values, including domestic wholesale pr ices or any other domestic prices, for the 
application of its domestic taxes to imports, and would apply its domestic taxes, including those on 
products listed in paragraphs 54 to  61 and Table 2, in strict compliance with Article III of the 
GATT 1994.  The Working Party took note of this commitment. 
Quantitative import restrictions, includin g prohibitions, quotas and licensing systems 
 
63. The representative of Georgia said that licences were required for importation of certain 
agricultural chemicals, wild animals and plants, medicines, arms, explosives, nuclear materials, 
industrial waste, and tobacco products (Table 3).  The licensing system was maintained to protect 
public health, safety and the environment, and was not  intended to restrict the quantity or value of 
imports.  He confirmed that impor ts from CIS and non-CIS countries we re subject to equal treatment. 
The representative of Georgia confirmed that Geor gia had no licensing requ irements or quantitative 
restriction of any kind on imports other than those listed in Table 3. 
64. Import licences were obtained from the Ministry  of Trade and Foreign Economic Relations or 
the Ministry of Health Protection, with the consen t of the relevant ministry or department.  Any 
person, firm or organization could apply for an import licence.  The decision to grant a licence was required to be taken within 5 working days from the date of registration of the application.  A licence 
was valid for the period fixed in the import contract, but not for more than one calendar year.  The 
validity could be extended upon request.  A licence c ould not be transferred to another importer.  
Asked to describe briefly the licence requirements for importation, production and sale of tobacco products, he referred to Presidential Decr ee No. 391 "On Activities Addressing Regulation of 
Production, Import, Wholesale and Retail Trade in Tobacco Products in Georgia", but noted that this 
decree had not been implemented and that, in pr actice, such licenses were not required.  The 
representative of Georgia confirmed that should the requirements of this Decree on the manufacture,  WT/ACC/SPEC/GEO/12 
 Page 21 
 
 
 sale and importation of tobacco products be implemen ted, all provisions would be applied equally to 
domestic and imported goods in accordance with  the provisions of Article III of the GATT.  
65. The representative of Georgia confirmed that, from the date of accession, Georgia would not 
introduce, re-introduce or apply quantitative restrict ions on imports, or other non-tariff measures such 
as licensing, quotas, bans and other restrictions havi ng equivalent effect that could not be justified 
under the provisions of the WTO Agreement.  If ba lance-of-payment measures were ever necessary in 
the future, Georgia would impose them in a manne r consistent with the relevant WTO provisions, 
including Article XII of the GATT 1994 and the Un derstanding on Balance-of-Payments Provisions 
of the GATT 1994.  The Working Party took note of these commitments. 
Customs valuation  
66. The representative of Georgia said that instruc tions on the determination of customs value had 
been adopted by Resolution No. 843 of the Cabinet of Ministers of 5 December 1994.  These 
instructions provided for six methods of valuati on, of which the primary method was based on the 
transaction value.  The Ministry of Economy had been responsible for preparing a list of goods 
subject to minimum import prices affecting 20 prod uct groups, including alcoholic beverages, wheat 
flour, oil margarine, butter, frozen fish, sugar, ju ices, tomato paste, cigar tobacco and jewellery 
products.  However, the minimum import price syst em had been abolished in March 1998.  Asked 
specifically about the use of world average prices in customs valuation, he confirmed that Article 5(6) 
of the 1996 Law on Customs Tariff had authorized such measures.  However, the new Law "on 
Customs Tariff and Duty", adopted on 20 Marc h 1998, revoked the 1996 law and contained no 
reference to world market prices in the valuation rules established in its Article 10. 
67. Having reviewed Georgia's customs valuation legislation, a member noted that Georgia had 
not implemented in full the Agreement on Implemen tation of Article VII of the General Agreement 
on Tariffs and Trade (the Customs Valuation Agreemen t).  According to this member, Georgia's laws 
and regulations failed to address the following criti cal areas:  (i) the provisions for assists/"goods and 
services" found in Article 8 and the Interpretativ e Notes in Annex I to the Customs Valuation 
Agreement did not appear to be fully implemente d;  (ii) the royalty provision and proceeds of 
subsequent resale, disposal or use provision of Ar ticle 8 of the Customs Valuation Agreement were 
merged with the provision for assists/"goods and services";  (iii) the related party provisions in 
Article 1 and the Interpretative Notes in Annex I to  the Customs Valuation Agreement did not appear 
to be fully implemented;  (iv) Georgia did not  provide for Article 4 of the Customs Valuation 
Agreement, allowing only the importer to reverse the order of use of deducted or computed valuation 
methods;  (v) Georgia did not include the provision concerning objective and qua ntifiable data and no WT/ACC/SPEC/GEO/12 
Page 22  
 
 additions other than those provided for to be included in the price actually paid or payable 
(Article 8(3) and (4));  (vi) Georgia did not in clude several prohibited methods of appraisement 
required by Article 7 of the Customs Valuation Agre ement, as well as the obligation to inform the 
importer in writing of the method of appraisement u sed by Customs;  (vii) the obligation to publish 
laws, regulations, etc. pursuant to Article 12 di d not appear to be implemented;  (viii) the 
Interpretative Notes in Annex I of the Customs Va luation Agreement did not appear to be fully 
implemented in Georgian law;  (ix) Article 15( 5) of the Customs Valuation Agreement concerning 
sole agent, sole distributor or sole concessionair e had not been implemented;  (x) the Committee on 
Customs Valuation Decision 4.1 concerning the "Val uation of Carrier Media Bearing Software for 
Data Processing Equipment" had not been impl emented;  and (xi) the Committee on Customs 
Valuation "Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods" 
had not been implemented. 
68. In reply, the representative of Georgia said that the Law "on Customs Tariff and Duty" (1998) 
provided for customs valuation of goods based on in ternationally recognized practices.  In accordance 
with this Law, new regulations had been prepared  that were fully consistent with the Customs 
Valuation Agreement, including the Interpretative Notes to the WTO Valuation Agreement and the 
Decisions on "Valuation of Carrier Media Bearing Software for Data Processing Equipment" and 
"Treatment of Interest Charges in  the Customs Value of Imported Goods."  The Ministry of Justice 
had approved the new regulations on 31 May 1999.  Parliament had enacted an amendment to the 
Law on Customs Tariff and Duty, ensuring implemen tation of Article 13 of the Customs Valuation 
Agreement, on 25 June 1999. 
69. The representative of Georgia confirmed that from the date of accession, Georgia would fully 
apply the WTO provisions concerning customs valu ation without recourse to a transition period, 
including in addition to the Agreement on the Im plementation of Article VII of the GATT 1994, 
Annex I (Interpretive Notes) and the provisions on the Treatment of Interest Charges in Customs 
Value of Imported Goods and for the Valuation of Carrier Media Bearing Software for Data 
Processing Equipment (Decision 4.1).  In accordance w ith these latter provisions, only the cost of the 
carrier medium itself would be accounted for in the cu stoms value.  He stated that Georgia would not 
use any form of reference price or fixed valuation schedule for the valuation of imports or to apply 
duties and taxes.  [He confirmed that, before the date of accession, the customs valuation regulations 
would be amended in Article 15 to  provide that the right of appeal is without penalty, and in 
Article 10(1)(a)(iv) to provide that transportation co sts are limited to "the cost of transport of the 
imported goods to the place of importation into Georgi a".  He further confirme d that Georgia intends 
to annex a copy of the WTO Interpretative Note s to the Customs Valuation Agreement to its  WT/ACC/SPEC/GEO/12 
 Page 23 
 
 
 Regulations prior to accession, and will provide a co py of this annex to the Working Party.]  The 
Working Party took note of these commitments. 
Other customs formalities  
70. The representative of Georgia said that the Cust oms Code contained rules of origin.  Georgian 
legislation required indication of the country of  origin of goods for bot h imported and domestic 
products.  A certificate issued by the competent aut hority in the country of origin was necessary only 
for goods imported under preferential trade.  CIS co untries applied a uniform C-1 certificate, and had 
concluded an agreement on the general rules of dete rmining the country of origin.  Georgia did not 
require authentication of import/export documents by its consulates overseas. 
71. Detailed rules of origin had been laid down in the Decree "On Customs Tariff" of 
21 October 1992.  Origin criteria were based on the principles of wholly obtained or sufficient 
processing in another country.  The wholly obtained criterion would typically be applied to minerals;  
plant products;  livestock and livestoc k products;  products of hunting, fishery and sea fishery;  and  
secondary raw materials and wastes obtained from manufacturing and other operations.  Sufficient 
processing was defined in terms of change of tariff position, the technology employed in the 
processing, or defined in accordance with establishe d cost ratios.  Mere storage and packaging, 
preparation, sorting, repackaging, simple asse mbly operations or mixi ng of goods (components) 
would not be considered sufficient processing. 
72. The representative of Georgia said that the new Law "on Customs Tariff and Duty", adopted 
by Parliament on 20 March 1998, stipulated that Georgia's rules of origin should be based on 
international experience.  Accordingly, new regula tions on rules of origin had been prepared which 
were fully consistent with the Agreement on Rules of Origin.  The Ministry of Justice had approved 
the new regulations on 31 May 1999.  The new rules of origin regulations provided for acceptance of 
a certificate of origin from all countries.  By contract, Georgia would require that any PSI company 
engaged by Georgia would be requi red to observe the provisions of the WTO Agreement on Rules of 
Origin. 
73. The representative of Georgia confirmed th at from the date of accession its laws and 
regulations on rules of origin would be in conformi ty with the provisions of the Agreement.  In this 
regard, the requirements of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential 
and preferential rules of origin, respectively, its cu stoms authority or preshipment inspection authority 
acting on its behalf will pr ovide upon request an assessment of th e origin of the import and outline the 
terms under which it will be provided.  The Work ing Party took note of this commitment. WT/ACC/SPEC/GEO/12 
Page 24  
 
 Preshipment inspection
 
74. The representative of Georgia said that Georgia had thus far not used preshipment inspection 
services and had no legal regulation on preshipment in spection.  However, having examined proposals 
to improve customs collection in Georgia, his Government had decided to impose a preshipment 
inspection requirement on exporters.  A tender to sel ect a contractor had been issued in early 1999, 
and a contract was being negotiated as of July 1999.  The contract was expected to run for at least two 
and a half years, and could be extended if deemed necessary by the Government. 
75. Georgia had tentatively selected a pre-shipment inspection firm, but no contract had yet been 
signed.  The negotiations on the final contract term s were expected to result in amendments to the 
Customs Code and implementing regul ations.  His Government expected that use of a pre-shipment 
inspection firm would improve customs collections  primarily by reducing the incidence of under-
valuation of imports.  In addition to verifying th e customs valuation of imports, the PSI firm would 
also be expected to verify quantity and qualit y in some cases, and indicate the proper customs 
classification.  The PSI firm would be subject, by c ontract, to Georgian law in all of these matters.  
The decisions of the PSI firm would be advisory to the Customs Department, which would make the 
final decisions in all cases, including valuation.  The decisions of the Customs Department were 
subject to judicial appeal.  In order to pr otect confidentiality of business information, the 
recommendations of the PSI firm would not be publis hed.  Subsequent Custom s Department decisions 
would, however, be published as provided for in Article X of the GATT. 
76. The representative of Georgia confirmed th at his Government would ensure that the 
operations of preshipment inspection entities would be  consistent with the relevant WTO Agreements, 
in particular GATT Article VIII, the Agreement on Preshipment Inspection, the Recommendations of 
the Working Party on Pre-Shipment Inspec tion of 2 December 1997 and any subsequent 
recommendations issued by that Working Party, the Agreement on the Implementation of Article VII  
(the Customs Valuation Agreement), and the Agr eements on Import Licensing Procedures, Rules of 
Origin, Implementation of Article VI (Antidum ping), Subsidies and Countervailing Measures, 
Safeguards, and Agriculture.  Georgia would ensure  that any private firm performing customs duties 
covered by WTO rules would publish their practices  and procedures as required by GATT Article X, 
that rulings by the firm would be advisory only to the State Department of Customs and would be 
appealable to the judiciary, that any rulings of general applicability would be made available to WTO 
members and to importers and exporters upon request , and that Georgia would, upon request of WTO 
members, meet to discuss the activities of such fi rms and their impact on trade with a view to  WT/ACC/SPEC/GEO/12 
 Page 25 
 
 
 resolving problems.  [The fee structure would be a pplied in strict conformity with WTO provisions, in 
particular Article VIII of the GATT.]  The Working Party took note of this commitment. 
Anti-dumping, countervailing duties, safeguard regimes  
77. The representative of Georgia said that Articles 10-13 of the Decree of the Council of State 
"On Customs Tariff" of 21 October, 1992, cont ained provisions on the imposition of anti-dumping 
and countervailing duties.  He added that the 1992 decree had been replaced with the Law on Customs 
Tariff and Duty of 20 March 1998, which provided the legal basis, in principle, for the imposition of 
anti-dumping, countervailing or safeguard measures.  However, this legislation had never been used. 
78. The representative of Georgia confirmed th at Georgia would not apply any anti-dumping, 
countervailing or safeguard measure until it had no tified and implemented appropriate laws in 
conformity with the provisions of the WTO Agr eements on the Implementation of Article VI, on 
Subsidies and Countervailing Measures, and on Safegua rds.  In the elaboration of any legislation 
concerning such anti-dumping, countervailing and saf eguard measures Georgia would ensure their 
full conformity with the relevant WTO provisions , including Article VI and XIX of the GATT 1994 
and the Agreements on the Implementation of Article VI, the Agreement on Subsidies and 
Countervailing Measures and the Agreement on Safeguard s.  After such legislation was implemented, 
Georgia would only apply any anti-dumping duties, countervailing duties and safeguard measures in 
full conformity with the relevant WTO provisions.  The Working Party took note of these commitments. 
B. EXPORT REGULATIONS 
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports
 
79. The representative of Georgia said that all e xporting legal and natural persons were required 
to register with the State Department for Statistics.   The general State register was decentralized, i.e. 
the entrepreneur was included in the register of any regional statistical office after registration at the 
local court.  The State register maintained no restrictions on registration. 
80. Georgia did not apply customs duties on expor ts, except as indicated in paragraph [78].  
Exported or re-exported goods were exempt from cust oms duties.  As of 1 September 1997, when the 
new Tax Code had entered into force, Georgia im posed VAT according to the destination principle 
and all exports, including to CIS countries, were zero rated.  The regional customs offices performed 
customs clearance on all export cargoes. WT/ACC/SPEC/GEO/12 
Page 26  
 
 81. Effective 1 July 1998, exports of scrap metal had become subject to special duty in 
accordance with the Law on Regulation of Export and Re-export of Scrap and Waste of Black and 
Coloured Metals.  The special duty had been set at  475 Lari per ton for copper, 320 Lari per ton of 
aluminium, and 28 Lari per ton of other metal scrap .  However, Parliament had passed an amendment, 
eliminating the special duty, on 25 June 1999. 
82. The representative of Georgia confirmed that  after accession to the WTO, Georgia intended to 
minimize the use of export taxes and any such taxes applied would be in accordance with the 
provisions of the WTO Agreement and published in the Official Journal.  Changes in the application 
of such measures, their level, scope, or justification,  would also be published in the Official Journal.  
The Working Party took no te of these commitments. 
Export restrictions
 
83. The representative of Georgia said that Geor gia maintained some export prohibitions or 
restrictions to protect public health, consumer we lfare, the environment, the national patrimony and 
national security.  The prohibitions or restrictions we re applied equally to exports to all countries.  
Exports of arms and gunpowder, ar twork and antiques of cultural value, as determined by a special 
commission within the Ministry of Culture, were prohibited.  The items subject to export prohibition 
or licensing are enumerated in Table 4.  Exports of timber were licensed to ensure the ecological 
balance in Georgia's forests and optimal use of forestry resources in accordance with the Law "on 
Regulating the Consumption of Forests on the Territo ry of Georgia" of 25 June 1998.  Exports of 
Caucasian Fir seeds were also subject to licensing. 
84. Export licences were issued by the Ministry of Trade and Foreign Economic Relations, except 
for medicines and medical supplies (Ministry of H ealth Protection).  Licences were granted within 
5 working days from the date of registration of the application.  A licence was valid for the period stipulated in the export contract;  maximum one year.  The validity of a licence could be extended 
upon request.  A licence could not be transferred to another exporter. 
85. Some members noted restrictions on exports  of ferrous and non-ferrous scrap metal and 
unprocessed timber, and stated that these appeared to  violate Article XI of the GATT 1994.  Georgia 
was requested to revise the restrictions and bring th em into conformity with WTO provisions prior to 
accession, or according to a time-table agreed with  WTO Members.  In reply, the representative of 
Georgia said that a prohibition on export of scrap meta l had been lifted in June  1998, and replaced by  
licensing and payment of special duty.  A special li censing fee of 60 Lari per cubic metre of timber, 
which had been introduced in March 1998, had also been terminated in June 1998.  Export licences  WT/ACC/SPEC/GEO/12 
 Page 27 
 
 
 would be granted for all types of logs cut in conf ormity with the requirements of the State Forest 
Department, which required information on the fo rest, farm, region and section where the wood was 
to be cut;  quantity, date and type of cutting;  and information on the forest user, all in accordance 
with regulations issued by the State Forestry Department. 
86. The representative of Georgia confirmed th at any remaining export control requirements 
would be applied in a manner fully consistent w ith WTO provisions, including those contained in 
Articles XI, XVII, XX and XXI of the GATT 1994.  The Working Party took note of this 
commitment. 
Export subsidies  
87. The representative of Georgia said that Georgia maintained no export subsidies.  Other than 
ordinary bank loans at market in terest rates, no official or ot her export financing facilities were 
available for exporters. 
88. Imported raw materials and semi-manufactured goods used in the production of goods for 
export were exempt from customs duties under Artic le 18 of the Law "on Customs Tariff and Duty" 
of 20 March 1998, which had superseded the Law on Customs Tariffs of 27 December 1996.  
Article 18 provided an exemption from customs duties for the "import of raw materials and semi-
finished goods intended for the manufacture of export goods as well as the import of packaging material to the extent of actually exported fini shed products.  Upon importing said raw materials, 
semi-finished goods and packaging material the paym ent of Customs duty or the retention of a bank 
guarantee is effected to the extent of the actually exported finished goods."  The phrase "to the extent 
of actually exported finished products" should be in terpreted as limiting the drawback to duties paid 
on goods incorporated in actually exported finished  products.  Imported input s used in exported goods 
were also exempt from VAT.  He confirmed that th e amount of duty drawback on exports of finished 
goods did not exceed the original duty paid on the imported raw materials and semi-manufactured 
inputs. 
89. The representative of Georgia stated that from the date of accession Georgia would not 
maintain any subsidies, including export subsidi es, which met a definition of a prohibited subsidy 
within the meaning of Article 3 of the Agreem ent on Subsidies and Countervailing Measures, and 
would not introduce such prohibited subsidies.  Th e Working Party took note of this commitment. WT/ACC/SPEC/GEO/12 
Page 28  
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
Industrial policy, including subsidies
 
90. The representative of Georgia said that the general objective of Georgia's economic policies 
was to create a market economy through privati zation of publicly-owned commercial enterprises, 
deregulation of prices and foreign investment.  St ate-owned enterprises no longer received subsidized 
credits from the banking system or the Government, but some enterprises had covered their losses by 
running arrears on payments of taxes, wages and en ergy supplies.  He identified the 12 largest loss-
making State enterprises to be the Rustavi's "Azo ti", the electromechanical factory at Kutaisi, 
Rustavi's "Kimbochko", the joint-stock company "Maudi ", the automobile plant at Kutaisi, the Poti 
shipyard, "Metsi", "Orioni", the manufacturer of agricultural machinery "Lilo", the joint-stock  
company "Metei", the turbine plant of Mtskheta  "Tolia", and the paper mill in Tbilisi.  The 
Government intended to privatize these enterprises,  but their privatizati on had proved difficult. 
91. The representative of Georgia confirmed th at Georgia did not maintain any prohibited 
subsidies, including export subsidies, within the meaning of Article 3 of the Agreement on Subsidies 
and Countervailing Measures. 
92. The representative of Georgia confirmed th at upon accession any s ubsidy programmes would 
be administered in conformity with the Agreem ent on Subsidies and Countervailing Measures.  All 
necessary information on such programmes would be notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement.  The Working Party took 
note of this commitment. 
Technical barriers to trade, sanitary and phytosanitary measures  
Standards and certification  
93. The representative of Georgia said that the La ws "on Standardization" and "on Certification 
of Products and Services" constituted the basic le gal framework for activities in this area.  A new 
standards law, however, had been drafted by Europ ean experts to meet the requirements of the TBT 
Agreement and enacted by Parliament.  The Minist ries of Construction and Urbanisation, Protection 
of Environment and Natural Resources, Health Protection and other departments ensured product 
safety requirements, construction norms and regula tions, and sanitary norms and regulations.  The 
State Department of Georgia for Standardization,  Metrology and Certification ("Sakstandarti") was 
the national body of standardization, metrology and ce rtification in Georgia.  "Sakstandarti" operated  WT/ACC/SPEC/GEO/12 
 Page 29 
 
 
 centres working on standardization, metrology and cer tification in Tbilisi and seven provincial cities, 
and State supervision of standard requireme nts and metrology norms was carried out by 
"Sakstandarti" through its local organizations.  "Sak standarti" was a member of the Interstate Council 
of Western Countries for Standardization, Metr ology and Certification, and had become a 
correspondent member of the International Organizat ion for Standardization (ISO) on 1 January 1998. 
94. Although conformity with mandatory inte rgovernmental (GOST) standards of the CIS 
countries was still technically required in Georgia, virtually all imports were allowed entry without 
being required to meet these standards.  Geor gia was moving rapidly towards reliance on voluntary 
standards, based on international standards, in many  areas.  The application of mandatory standards to 
approximately 121 categories of products (as detailed in Table 5(b)) had been formally terminated by 
Government decree on 28 May 1999.  In the rema ining areas, existing GOST standards would be 
replaced by voluntary standards or technical regu lations based on international standards in 
accordance with a transition plan and as rapidly as fu nding allowed.  A plan for the development and 
implementation of standards in Georgia (1999- 2002) was provided in document WT/ACC/GEO/28. 
95. Georgia required a certificate of conformity issued by "Sakstandarti" and, depending on the 
product, a hygiene certificate from the Ministry of Health Protection.  The list of imported products 
still technically subject to mandatory certification is provided in Table 5(a).  In practice, however, the 
vast majority of imports were not required to meet these standards.  He added that Georgian standards 
and certification requirements were not intended to dist ort trade or establish technical barriers to trade.  
Domestically-produced and imported goods, regardl ess of country of origin, complied with the same 
requirements on standards and certification.  "Sakstandarti" had introduced a system of certification and documentation to eliminate technical obstacles in  trade.  Georgia recognized product certificates 
from the CIS countries, and was negotiating agre ements to recognize certificates from Poland, 
Bulgaria, and Romania.  Georgia would agree to recognize certificates of other countries in the near 
future.  The Ministries of Health Protection and Agriculture and Food were actively involved in the 
certification procedure, in particular in testi ng health, hygiene and veterinary products, and the 
certification of bread.  Food safety standards and requirements and labelling requirements were laid 
down in the Law "on Protection of Consumers' Right s" (Chapter 1, Article 6).  The Ministry of 
Protection of Environment and Natural Resources a nd the State Inspection for Technical Supervision 
were involved in certification rela ted to environmental protection and safety of technical processes.  
Documentation had been harmonized with analogo us European documents, and Western countries 
had recognized 55 certification bodies and 78 testing laboratories established in educational, research 
and other departments with the assistance of "Sakstandarti". WT/ACC/SPEC/GEO/12 
Page 30  
 
 96. Some members noted that Georgia's legislati on and practices in the area of standards did not 
meet the requirements of the Agreement on Tec hnical Barriers to Trade (the TBT Agreement).  
Georgia was requested to complete a "Statement of Implementation" on technical barriers to trade and 
to provide specific information on the move from dom estic to international standards;  the provision 
of an operational enquiry point;  acceptance of the TBT Code of Good Practice by Georgia;  information on the procedure and terms for issuing certificates of conformity, including fees, required 
documentation, sampling, etc.;  the use of manufacturers' certification;  the adoption of a national 
post-market surveillance system;  and the repl acement of mandatory standards with voluntary 
standards.  Georgia should outline the specific defici encies vis-à-vis WTO provisions in this area, and 
indicate a schedule for achieving compliance.  A member sought a commitment from Georgia to 
abide by the requirements outlined in the Agreement on Technical Barriers to Trade as of the date of 
WTO accession, and confirmation that Georgia's ce rtificate of conformity requirements were not 
related to the establishment of additional barriers to trade. 
97. The representative of Georgia replied that "Sakstandarti" was working closely with the 
Georgian-European Policy and Legal Advice Cent re (GEPLAC) to bring Georgia's standards 
legislation in compliance with the TBT Agre ement.  A Presidential Decree "On Measures 
Implementing the Requirements of the WTO Agreem ent on Technical Barriers to Trade" had been 
adopted on 5 December 1998.  This Decree contai ned a detailed action pl an and time-frame for 
implementation by the relevant authorities.  The new Law on Standards had been approved by 
Parliament on 25 June 1999.  The TBT enquiry po int had been established under "Sakstandarti" and 
notified officially to WTO in July 1999 (document G/TBT/ENQ/15).  Article 14.5 of the new standards law required the enquiry point to publish information on sta ndards, technical regulations and 
proposals.  Article 15 required that  time be allowed for comment and th at comments received be taken 
into account with respect to both te chnical regulations and conformity assessment procedures, and that a 
reasonable time be allowed for producers to adjust.  Article 13.2 required th at conformity assessment 
procedures of other countries be a ccepted as required by Article 6 of  the TBT Agreemen t.  Article 14.4 
established that the official public ation of standards, technical regu lations and conformity assessment 
procedure was in "Sakartvelos St andartebi" (published by the Stat e Department of Standards) and 
"Sakartvelos Kanonmdeblobis Matsne" (Georgian Legi slative News).  Both these publications were 
available to the public. 
98. The representative of Georgia confirmed Georgia’s intent to comply with the provisions of 
the TBT Agreement upon accession.  In this regard , it was Georgia’s intention that standards, 
technical regulations and conformity assessment pro cedures would be based on relevant international 
standards, where they exist, ex cept where use of different standards, technical regulations and  WT/ACC/SPEC/GEO/12 
 Page 31 
 
 
 conformity assessment procedures are justified to the TBT Committee pursuant to Article 2.4 of the 
TBT Agreement as necessary to fulf il the legitimate objectives of national security;  prevention of 
deceptive practices;  or protection of human health or  safety, animal or plant life or health, or the 
environment.  Any such standards, technical re gulations and conformity assessment procedures would 
be administered so as not to create unnecessary barri ers to trade.  Furthermore, Georgia would accept 
as equivalent, technical regulations of other Member s, even if those regulations differed from their 
own, provided its officials were satisfied that th ese regulations fulfilled adequately the objectives of 
Georgia’s own regulations. 
99. The representative of Georgia confirmed that from the date of accession, all existing Soviet-
era "GOST" and other regional standards would be  voluntary with respect to products imported from 
WTO member countries or from other non-CIS count ries.  GOST and other regional standards would 
continue to apply mandatorily only to products  produced in Georgia or imported from non-WTO 
member CIS states.  These standards would be repl aced with international standards, or technical 
regulations based on international standards, in accordance with the timetable outlined in 
WT/ACC/GEO/28, and be fully replaced by May 2002.  With respect to the items for which 
certification remained mandatory in Georgia (Table 5(a)), he further confir med that imported products 
meeting either international, European, or GOST standards would be accepted.  Georgia would accept 
conformance assessment certificates issued by in ternationally recognized authorities of the exporting 
countries, or approvals provided by recognized in dependent conformity assessment bodies or agencies 
recognized by "Sakstandarti", with respect to these standards.  Georgia would also reduce further the 
number of categories of imported pr oducts subject to mandatory certifi cation prior to the end of 1999, 
notifying the revised list to the WTO by 1 Jan uary 2000, and would complete the process of 
conversion to voluntary certification in accordance with the timetable outlined in WT/ACC/GEO/28.  
Upon request of WTO members, Georgia would meet to discuss these measures and their impact on 
trade with a view to resolving problems.  Th e Working Party took note of these commitments. 
100. The representative of Georgia confirmed that  Georgia would comply with all obligations 
under the WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any transition period.  The Work ing Party took note of this commitment. 
Sanitary and phytosanitary measures
 
101. The representative of Georgia said that Geor gia had revised its quarantine requirements and 
adopted new legislation, including the Law "on Pr otection of Plants from Harmful Organisms" of 
14 October 1994, the Law "on Agricultural Quarantine" of 15 May 1997, and a new Veterinary Law reflecting the standards established by the Office In ternational des Epizooties (OIE).  A Presidential WT/ACC/SPEC/GEO/12 
Page 32  
 
 Decree on SPS Measures had been drafted to meet  the requirements of the SPS Agreement, and 
[issued in July 1999]. 
102. Concerning relations with relevant interna tional organizations, he said that Georgia had 
applied for membership in the joint FAO/WH O Food Standards Programme-Codex Alimentarius 
Commission on 17 October 1997.  Georgia also intende d to join the International Convention on Plant 
Protection and the European and Mediterranean International Plant Protection Organization.  
Georgia's Veterinary Department received in formation from the Office International des 
Epizooties (OIE) concerning diseases existing in vari ous countries in the world and assessed the risks 
regarding dangerous infectious diseases on the basis of this information. 
103. The representative of Georgia stated that Geor gia's sanitary and phytosanitary standards were 
intended solely for the purpose of protecting the hea lth of human, animal and plant life, and not to 
create technical barriers to trade or to protect domestic producers.  Compliance with Georgia's 
regulations was determined by the State Sanita ry Service and Department of Hygiene under the 
Ministry of Health Protection;  the Sanitary, Qu arantine and Supervision Department of the State 
Inspection on Plant Quarantine;  and the Department  of Veterinary under the Ministry of Agriculture 
and Food, in cooperation with the Border Vete rinary, Sanitary and Phytosanitary Service. 
104. The State Border Veterinary Supervision Insp ection checked all imports of live animals, meat 
and fish, animal and fish products, animal fodder a nd feed supplements and veterinary preparations.  
A licence from the State Inspection of Plant Quar antine was required for importation, re-export or 
transit of goods covered by plant quarantine re gulations.  Traded goods covered by quarantine 
regulations included agricultural products, timber, seeds and seedlings, plants and plant parts, and 
plant products that could carry infectious diseas es; hides and unprocessed wool; mushrooms, bacteria, 
viruses, nematodes and insects on living cultures; collections of insects, which could bring plant diseases; herbaria and seed collections; agricultural machinery, aggregates for land development, 
vehicles, vessels, packaging materials and industria l plants; and soil samples which could carry plant 
diseases.  Preshipment inspection, leading to an inte rnational veterinary certificate, should be carried 
out where appropriate.  Importation of commodities of plant origin and other items subject to 
quarantine required a phytosanitary certificate i ssued by the quarantine service of the exporting 
country as well as a certificate on the condition of the commodity delivered by the relevant division of 
Georgia's Ministry of Food and Agriculture (Ar ticle 8 of the Law on Agricultural Quarantine).  
Infested or infected shipments which could not be disinfected would be returned to the country of 
origin or destroyed with the owner's consent.  The representative of Georgia provided detailed 
information on procedures followed in implementi ng Georgia's sanitary and phytosanitary regime,  WT/ACC/SPEC/GEO/12 
 Page 33 
 
 
 requirements for imported animal and plant products , and a list of all quarantine pests in document 
WT/ACC/GEO/4, pages 99-110. 
105. Some members noted that Georgia's le gislation and practices covering SPS measures 
appeared not to meet the requirements of the SPS Ag reement.  Georgia was asked to provide further 
information on ongoing efforts to bring its SPS legisl ation into conformity with the SPS Agreement, 
including additional steps to be taken, a time-fra me for implementation, and details on any problems 
Georgia might have with implementation of the SPS Agreement upon accession.  A member sought a 
commitment from Georgia to abide by the requireme nts outlined in the SPS Agreement as of the date 
of accession to the WTO, adding that the establishment of a certification system for imports that did not present unnecessary barriers to trade prior to accession would be a fundamental factor in completing Georgia's accession process. 
106. The representative of Georgia replied that Georgia was working closely with GEPLAC (the 
Georgian-European Policy and Legal Advice Centre ) and the Institutional Reform and Informal 
Sector (IRIS) to identify the specific aspects of th e SPS Agreement not covered by Georgia's existing 
regime.  A detailed plan had been prepared on steps to bring Georgia's SPS procedures into 
conformity with WTO requirements.  An In terministerial Coordinating Body for SPS 
Implementation (ICB) had been formed and Georgi a had also established the SPS enquiry point, as 
required by the WTO.  The Interministerial Coordinating Body was chaired by the Deputy Minister of Agriculture responsible for international issu es, and included a working-level body with 
representation from each agency concerned.  The Pr esidential Decree on SPS Measures, issued in 
July 1999, provided for observance of the requirement s of the SPS Agreement.  Article 2 required the 
establishment of the SPS Enquiry Point, which ha d become operational in August 1998, and notified 
officially to WTO in April 1999 ( document G/SPS/ENQ/8).  Article 3. 1 required SPS measures to be 
applied only to the extent necessary to protect human, animal, or plant health, and be based on scientific 
principles and supported by adequate scientific evidence.  Article 3.2 required SPS measur es to be based 
on international standards or else notified to WTO in  accordance with Annex B of the SPS Agreement.  
Article 3.3 stipulated that they be based on risk  assessments, and Article 3.4 that they would not 
discriminate unjustifiably betwee n countries.  Article 4 required the SPS measures of countries 
exporting products to Georgia to be  accepted as equivalent, even when different from SPS measures 
adopted in Georgia, when the exporting country c ould demonstrate that its SPS measures achieve the 
same or a higher level of protection.  Article 5 pr ovided that compliance measures be consistent with 
Annex C of the SPS Agreement, and for a right of j udicial review of administrative decisions in this 
area. WT/ACC/SPEC/GEO/12 
Page 34  
 
 107. The representative of Georgia confirmed that  Georgia would comply with all obligations 
under the WTO Agreement on the Application of Sa nitary and Phytosanitary Measures from the date 
of accession without recourse to any transition pe riod.  The Working Party took note of this 
commitment. 
Trade-related investment measures
 
108. The representative of Georgia stated that Ge orgia maintained no measures inconsistent with 
the Agreement on Trade-Related Investment Measur es (TRIMs) at present, and Georgia was ready to 
undertake the obligations of the TR IMs Agreement upon accession to the WTO. 
109. The representative of Georgia said that  Georgia would not maintain any measures 
inconsistent with the TRIMs Agreement and woul d apply the TRIMs Agreement from the date of 
accession without recourse to any transitional peri od.  The Working Party took note of this 
commitment. 
State-trading entities  
110. The representative of Georgia said that all public sector monopolies for the supply of goods 
and services had been eliminated except as indi cated in paragraph 27 above, and there were no 
parastatal or government-mandated private sector monopolies in Georgia.  Remaining State-owned 
enterprises had no access to preferential State fundi ng, and acted purely on the basis of commercial 
considerations in a non-discriminat ory manner consistent with Artic le XVII of the GATT 1994.  No 
Georgian enterprise carried special or exclusive pr ivileges in the production of any good or service.  
At present, Georgia did not operate any State enterp rise or agency, or authorize any other firm, to 
purchase domestic and/or imported agricultural pr oducts for export or domestic distribution.  
Accordingly, Georgia maintained no State-tradi ng enterprises as defined by GATT Article XVII and 
the Understanding on the Interpretation of Article XVII of the GATT 1994. 
111. The representative of Georgia confirmed that  his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges in full conformity with the provisions of the WTO Agreement, in 
particular Article XVII of the GATT 1994 and the U nderstanding on that Article and Article VIII of 
the GATS.  He further confirmed that Georgia woul d notify any enterprise falling within the scope of 
Article XVII.  The Working Party took note of these commitments.  WT/ACC/SPEC/GEO/12 
 Page 35 
 
 
 Free zones, special economic areas  
112. The representative of Georgia said that his Government planned to establish free economic 
zones in Poti and Batumi following the adoption of th e appropriate legal basis for the creation of such 
zones.  However, Parliament had reject ed the draft law on free economic zones. 
113. The representative of Georgia confirmed that if Georgia established any free zones or special 
economic areas, it would administer any such ar eas in compliance with WTO provisions, including 
those addressing subsidies, TRIMs, and TRIPS, a nd that goods produced in these zones under tax and 
tariff provisions that exempt imports  and imported inputs from tariffs and certain taxes would be subject 
to normal customs formalities when entering the rest of Georgia including the application of tariffs and 
taxes.  The Working Party took note of this commitment. 
Government procurement  
114. The representative of Georgia said that government procurement, whether by a ministry, 
agency or other governmental body, was carried out by competitive tender under Presidential Decree 
No. 162 of 11 February 1996 and the Cabinet of Ministers' Resolution No. 264 "On Delivery of 
Products and Goods for State Needs of the Republic of Georgia" of 30 March 1993.  The main entities 
involved in government procurement were the Ministry of Defence, the Ministry of State Security, the 
Ministry of Internal Affairs, and the State Depa rtment of State Border Protection.  Government 
procurement was carried out in a non-discriminator y manner between domestic and foreign suppliers, 
except for procurement of certain types of goods fo r the armed forces, in which case the participation 
of foreign companies was restricted.  No statistical  data were collected on government procurement in 
Georgia. 
115. Parliament had adopted a new law on gove rnment procurement based on the UNCITRAL 
model law, prepared in close cooperation with  GEPLAC (Georgian-European Policy and Legal 
Advice Centre), in December 1998.  The Law would be amended to ensure full compatibility with the 
Agreement on Government Procurement. 
116. The representative of Georgia said that Georgia intended to join the Agreement on 
Government Procurement.  He confirmed that Georgia had requested observer status in the 
Committee on Government Procurement on 9 July 1999 (document GPA/W/89). 
117. The representative of Georgia confirmed that, upon accession to the WTO, Georgia would 
initiate negotiations for membership in the Agre ement on Government Procurement by tabling an WT/ACC/SPEC/GEO/12 
Page 36  
 
 entity offer.  He also confirmed that, if the results of the negotiations were satisfactory to the interests 
of Georgia and the other members of the Agreem ent, Georgia would complete negotiations for 
membership in the Agreement by 31 December 2000.  The Working Party took note of this 
commitment. 
Transit
 
118. The representative of Georgia said that goods transported through the territory of Georgia 
were exempt from customs duty, VAT and excise ta xes.  On 16 April 1999, Georgia had acceded to 
the Convention and Statute on Freedom of Transit of  20 April 1921;  the Convention on Transit Trade 
of Land-Locked States (New York, 8 July 19 65);  and the International Convention on the 
Harmonization of Frontier Controls of Goods (Geneva, 21 October 1982). 
119. The representative of Georgia confirmed that  his Government would apply its laws and 
regulations governing transit operations and would act in full conformity with the provisions of the 
WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this 
commitment. 
Agricultural policies  
120. The representative of Georgia said that imports of agricultural products were subject only to 
tariffs (zero, 5 or 12 per cent) and sanitary and phytosanitary measures.  There was no special export regime applicable to agricultural goods, no export credits other than those available from commercial 
banks, and no system of export credit guarantees or  insurance cover arranged by the Government. 
121. Concerning internal policies, he said that  his Government was c ooperating with multilateral 
and bilateral organizations to transform the collectiv e agricultural system to a market-based system.  
Programmes included land reform, privatization of  farms and agro-industry, the establishment of 
competitive markets in distribution services, an d the development of research, education and 
extension services.  With the assistance of European Communities counterpart funds (CPF), the 
Government provided - through the commercial ba nking system - short term working capital to 
traditional suppliers of inputs of fertilizers, seeds,  and energy products, as well as to grain producers 
and traders.  The Government did not engage in agricultural subsidies through price support, direct 
payments to farmers or in subsidized credit arrange ments, other than to grape and tea producers.  No 
budgetary resources were available to assist the re sidual State farms sector.  The Government did not 
provide any export subsidies.  WT/ACC/SPEC/GEO/12 
 Page 37 
 
 
 122. The representative of Georgia confirmed that  Georgia would bind its agricultural export 
subsidies at zero. 
123. Georgia's commitments on agricultural tari ffs, on domestic support a nd export subsidies for 
agricultural products are in the Schedule of C oncessions and Commitments on Goods annexed to 
Georgia's Protocol of Accession to the WTO. 
Trade in civil aircraft  
124. The representative of Georgia said that Ge orgia maintained a duty-free regime for the 
importation of aircraft parts and other supporting e quipment used in international transportation.  
Georgia intended to join the Agreement on Tr ade in Civil Aircraft upon accession to the WTO. 
125. The representative of Georgia said that Georgia would, from the date of accession,  
implement the Agreement on Trade in Civil Aircraft without exceptions or transitional period.  The 
representative of Georgia confirmed that Georgia would become a signatory to the Agreement on 
Trade in Civil Aircraft upon accession to the WT O.  The Working Party took note of this 
commitment. 
Textiles regime  
126. A member asked whether Georgia would notify any quantitative restrictions on its exports of 
textiles to the Textiles Monitoring Board. 
127. The representative of Georgia said that Ge orgia did not maintain any quantitative import 
restrictions on textile and clothing products.  Ac cording to an Agreement with the European 
Communities (1993), Georgia's exports of textile an d clothing (HS Chapters 50 to 63) could become 
subject to quantitative restrictions in the Eur opean Communities' market if the exported volume 
exceeded 0.35 to 4 per cent, depend ing on the product, of total Community imports in the previous 
year.  The Agreement also contained provisions agains t Georgian exports of tex tile products at prices 
"…abnormally lower than the normal competitive leve l".  However, these provisions had never been 
invoked, and the quantitative limits had not been applied. WT/ACC/SPEC/GEO/12 
Page 38  
 
 TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
General
 
Industrial property protection  
128. The representative of Georgia said that the protection of intellectual property rights was an 
essential element of Georgia's economic policy.  Intell ectual property rights were inviolable according 
to Article 23 of the Constitution.  The system of  intellectual property protection in Georgia was 
designed to comply with the requirements of leadi ng multilateral treaties in this field, including the 
Agreement on Trade-Related Aspects of Intellect ual Property Rights (the TRIPS Agreement), the 
Paris Convention for the Protection of Industrial Pr operty and the Berne Convention for the Protection 
of Literary and Artistic Works.  The specific provi sions of Georgian law meeting the requirements of 
each article of the TRIPS Agreement are summarized in Table 6. 
Responsible agencies for policy formulation and implementation  
129. The representative of Georgia said that the Georgian National Intellectual Property Center 
(Sakpatenti) was responsible for matters involving  industrial property (inventions, utility models, 
industrial designs, trade marks, service marks), and for matters involving appe llations of origin and 
layout designs of integrated circuits.  The Copyri ght Agency dealt with matters involving copyrights 
and neighbouring rights, and the Ministry of Agriculture was responsible for matters involving plant variety protection. 
Participation in international intellectual property agreements
 
130. The representative of Georgia said that Georgia was a member of WIPO and a party to the 
Paris Convention for the Protection of Industrial Pr operty (18 January 1994); the Patent Cooperation 
Treaty (18 January 1994); the Berne Convention for the Protection of Literary and Artistic Works 
(15 May 1995); and the Protocol Relating to th e Madrid Agreement Concerning the International 
Registration of Marks (20 August 1998).  Georgi a intended to join the Rome Convention for the 
Protection of Performers, Producers of Phonogram s and Broadcasting Organizations (1961); the 
Budapest Treaty on the International Recognitio n on the Deposit of Microorganisms for the Purposes 
of Patent Procedure; and UPOV (Geneva Act, 1991).   Georgia had conclude d a bilateral agreement 
with Uzbekistan on cooperation in the field of industrial property protection in 1996, and an 
agreement on cooperation between th e patent offices of Georgia and Austria.  Georgia had also 
concluded a bilateral agreement with Kazakstan ( 11 November 1997) on industrial property.  This  WT/ACC/SPEC/GEO/12 
 Page 39 
 
 
 agreement was based on the Paris Convention.  N one of these agreements  provided protection in 
excess of that required by the TRIPS Agreement. 
Application of national and MFN treatment to foreign nationals  
131. The representative of Georgia said that Georgi a granted national treatment in accordance with 
the Paris and Berne Conventions.  According to  Article 1018 of the Civil Code copyright was 
extended to works protected by those international ag reements to which Georgia was a party.  Georgia 
would grant national and MFN treatment to Members of the WTO upon accession to the WTO. 
Fees and taxes  
132. The representative of Georgia provided inform ation on State fees for patenting inventions, 
utility models, industrial designs, and for regist ration of trade marks ( document WT/ACC/GEO/3, 
page 42).  There were no fees for the protection of copyrights.  Fees for other areas of intellectual 
property rights had not been established so far. 
Substantive Standards of Protection, Including Pr ocedures for the Acquisition and Maintenance of 
Intellectual Property Rights  
Copyright and related rights  
133. The representative of Georgia said that Ge orgia provided copyright protection under Book 4, 
section 1 of the Civil Code.  The provisions of the Civil Code on copyright had been supplemented by 
a new law on copyright and neighbouring rights, a dopted by Parliament on 22 June 1999.  The 
Copyright Law of Georgia had been prepared on the basis of the WIPO model law. 
134. The Civil Code (Article 1017) protected the moral and economic rights of authors, and 
neighbouring rights connected with performer s, producers of phonograms and broadcasting 
organizations.  The rights of performers, producer s of phonograms and broadcasting organizations 
were defined in Articles 1082 to 1091.  Computer pr ogram issues were regulated in Articles 1060-61.  
Protection did not depend on any kind of formal procedure nor on the level of protection in the 
country of origin.  The term of protection began from the moment of creation of the work and lasted 
50 years beyond the death of the author according to the Civil Code, Articles 1062 (duration), 1063 
(validity) and 1508 (application of copyright law norms on pre-existing works).  Article 1045, which 
should be read together with Articles 1039, 1040 and 1041, provided for the authors' rights concerning 
cinematographic adaptation or reproduction envisaged  in Article 14 of the Berne Convention.  The 
limitations and exceptions on the rights of aut hors stipulated in Articles 1050 through 1061 were WT/ACC/SPEC/GEO/12 
Page 40  
 
 confined to cases which did not conflict with normal exploitation of the work and did not 
unreasonably prejudice the right holder's legitimate interests. 
135. Article 6 of the Copyright law and Article  1024 of the Civil Code defined copyrightable 
material as (i) literary works (books, brochures, articles, computer programs, etc);  (ii) drama or musical-dramatic works, choreographic, mime, and ot her theatrical works;  (iii) musical works, with 
or without text;  (iv) audio-visual works;  (v) sculptures, paintings, and architectural, graphic, 
lithographic and other work of visual art;  (vi) pieces of decorative-applied and monumental art;  (vii) 
pieces of theatrical-decorative art;  (viii) photograp hic works, and works cr eated by means analogous 
to photography;  (ix) maps, plans, sketches, illustra tions and other three-dimensional works belonging 
to geography, photography or other sciences;  (x) deri vative works;  and (xi) collection of works or 
data representing results of intellectual creative activity. 
136. The representative of Georgia stated further that rights of producers of phonograms were 
protected under the Law on Copyright.  Article 48 granted producers of phonograms exclusive rights to use the phonogram, including the right to use, to permit or to prohibit reproduction, first distribution of a phonogram, rental of a phonogram, distribution of a phonogram by sale, rental, or by 
transferring ownership of copies of a phonogram;  import of the copies of a phonogram for the 
purposes of distribution, including copies made with  the consent of the right holder.  Article 51.1 
permitted use of a phonogram wit hout permission or remuneration only when making (i) limited 
quotations for scientific, polemic, critical and inform ational purposes or (ii) short insertion of excerpts 
in the reviews of current events;  with paying remuneration, during public performance and broadcast.  
Article 57.3 protected rights of producers of phonograms for 50 years from the first recording.  If within this period a phonogram was lawfully publishe d or broadcast, the term would be extended for 
50 years from such event.  Phonograms in Georgia we re also protected by the Berne Convention.  In 
addition, Georgia undertakes to join the Internati onal Convention for the Protection of Performers, 
Producers of Phonograms and Broadcasting Organizations within 5 years. 
137. The law on copyright and neighbouring rights included specific provisions on economic 
rights (Article 16), the rights of producers of phonograms (Article 39), the rights of producers of videograms (Article 40), the distribution of phonogram  and videograms (Article 41), and the rights of 
broadcasting organizations (Article 42), as well as cer tain provisions which were not reflected in the 
Civil Code, for example on rental rights in respec t of computer programs, cinematographic works and 
phonograms (drafted on the basis of the EC Directive of 14 May 1991 on the Legal Protection of Computer Programs), and cable transmission right s (Article 16(g)).  Articles 18-25 of the new 
copyright law detailed the limitations and exceptions to  the copyright owner’s exclusive rights.  These  WT/ACC/SPEC/GEO/12 
 Page 41 
 
 
 were limited to cases that did not conflict with  normal exploitation of the work or unreasonable 
prejudice the legitimate interests of the right holder.  The representative of Georgia stated further that 
the provisions in the Civil Code were considered to be compatible with the copyright law, but that in 
case of conflict, the provisions of the copyright law would govern.  It was expected that the provisions 
in the civil Code would eventually be revoked, but  that this probably woul d not happen until a general 
revision of the Civil Code was undertaken. 
138. With respect to pre-existing wo rks, the representative of Georgi a stated that Section 3 of the 
new Copyright Law provided protection for "other work s . . . which are protected in accordance with 
those International agreements to which Georgia is a party."  Georgia was a member of the Berne Convention;  therefore this provision protected any wo rk required to be protecte d by that Convention.  
Article 27 of the Law provided that works were pr otected from "the moment of creation of the work" 
until 50 years after the death of the author.  There was no distinction between works created before or 
after the Berne Convention came into force in Georgia; protection app lied equally to both. 
139. A court could order confiscation of copi es of counterfeit works and phonograms and the 
materials and equipment needed for their reproduc tion, which would be handed over to the right-
holder or destroyed.  Counterfeit copies of works and phonograms, obtained by third parties in good 
faith, were not subject to confiscation (Civil Code Article 1098). 
Trademarks, including service marks
 
140. The representative of Georgia said that a new Law "on Trademarks" had been adopted by 
Parliament on 5 February 1999 and had entered into  force on 22 May 1999.  The new Law was based 
on the standards of the TRIPS Agreement and th e European Communities Council Regulation (EC) 
No. 40/94 of 20 December 1993 on the Community Trade Mark, as amended by Council Regulation (EC) No. 3288/94 of 22 December 1994 for the Impl ementation of the Agreement Concluded in the 
Framework of the Uruguay Round. 
141. The Law defined a trademark as a sign or a combination of signs which could be expressed 
graphically and was capable of distinguishing the goods and/or services of one enterprise from those 
of another.  A sign could be a word;  combinati on of words (including personal name, letters and 
numerals);  figure;  design sound mark;  or three- dimensional configuration, including the shape of 
goods or their packaging as well as colours and combin ation of colours.  The exclusive rights of the 
trademark owner, the scope of protection, and the scope of the exclusive rights were enumerated in Articles 6 and 7 of the Law.  Well-known trademar ks were protected by Article 3 of the Law. WT/ACC/SPEC/GEO/12 
Page 42  
 
 142. Trademarks were protected through regist ration with the Georgian National Intellectual 
Property Center "Sakpatenti".  The substantive exam ination of a trademark should be effected within 
8 months from the date of filing with Sakpatenti.  Decisions regarding trademark registration could be 
challenged in the Chamber of Appeal, and the decisi on of the Chamber of Appeal could be appealed 
before a court. 
143. Registration of a trademark did not depend on use, but a trademark registration could be 
cancelled after 5 years of continuous non-use in Geor gia.  Service marks were protected in the same 
way as trademarks, and Georgian legislation pr otected well-known marks.  Well-known marks were 
protected without registration by virtue of Article 6 bis of the Paris Convention according to 
Article 3.4 of the Trademark Law.  Georgian le gislation referred to the Paris Convention on the 
Protection of Industrial Property (Article 6 bis) for the definition of a "well known" mark.  The 
requirement of Article 16.1 of the TRIPS Agreemen t that the law should presume confusion where an 
identical mark was used without authorizati on on identical goods and services was addressed in 
Article 5(1) and 6.2 of the Law.  Article 6 of the Law extended the protection to similar signs for 
similar products.  Articles 16.2 and 3 of the TRIPS Agreement were implemented through Article 6.4 
of the Trademark Law. 
144. A trademark certificate was valid for an initial term of 10 years from the date of registration, 
and could be renewed indefinitely for additional periods of 10 years.  Agreements to transfer or 
licence a trademark needed to be registered with Sakpatenti to have juridical force. 
Geographical indications, including appellations of origin
 
145. Some members asked about the status of protection of geographical indications, including 
appellations of origin in Georgia, noting that the Statute of Trademarks was deficient in a number of 
areas with respect to Articles 22 to 24 of the TRIPS Agreement.  In particular, Article 22.3 of the TRIPS Agreement required a Member to refuse to register or invalidate registrations containing 
geographical indications except in instances in which such marks had been used  continuously for at 
least 10 years or in good faith before 15 April 1994,  and the TRIPS Agreement stipulated protection 
against use of geographical indications even when literally true but which falsely represented that the 
goods originated in another territory;  protection, with  certain exceptions, of appellations of origin for 
wines and spirits even against use accompanied by e xpressions such as "kind", "type", "style", etc;  
and refusal or invalidation, with certain exceptions , of trademark registrati ons containing geographical 
indications for wines and spirits if they did not originate in the place named.  WT/ACC/SPEC/GEO/12 
 Page 43 
 
 
 146. The representative of Georgia replied that a new Law "on the Protection of Appellations of 
Origin and Geographical Indications" had been pr epared based on Articles 22 to 24 of the TRIPS 
Agreement and European Communities Council Regula tion (EC) No. 2081/92 of 14 July 1992.  The 
new law had been enacted by Parliament on 22 Ju ne 1999.  The Government believed that the new 
Law met all the requirements of Articles 22-24 of the TRIPS Agreement. 
Industrial designs  
147. The representative of Georgia said that a new patent law, adopted by Parliament on 
5 February 1999 and effective 27 May 1999, regulated th e protection of industrial designs in Georgia.  
Applications for registration were filed with "Sakpa tenti", which granted patents to industrial designs 
considered novel, original and industrially applicable .  The term of validity of a patent was 15 years 
from the date of filing of the application.  A licence  agreement could be registered with "Sakpatenti".  
Any person engaged in non-authorized use of an indu strial design could be ordered to suspend its use 
and the owner of the patent could claim damages.  Neither the Statute on Industrial Designs nor the 
patent law contained any special requirements regarding the protection of textile designs. 
Patents  
148. The representative of Georgia said that a new Patent Law had entered into force on 
27 May 1999.  Under this law, the Georgian Na tional Intellectual Property Center "Sakpatenti" 
granted patents for inventions wh ich were considered novel, involve d an inventive step, and were 
industrially applicable.  The term of a patent was 20 years from the date of filing of the application. 
149. Patents would not be granted for surgical, th erapeutic and diagnostic methods of treatment of 
people and animals; species of plants and animals,  and particular biological methods for breeding 
plants and animals; or inventions which could pr ovoke or encourage inhumane, immoral and/or anti-
social actions.  Discoveries, scientific theory, or  mathematical methods; results of artistic work; 
computer algorithms and programs; intellectual implementation methods, including education and 
training methods; organizational and management methods; industr ial design and diagrams for 
planning of buildings, co nstructions and territories; and presen tation of information would not be 
regarded as inventions. 
150. According to the Patent Law, the patent owner had the exclusive right to use or dispose of an 
invention at his discretion, to make a product protect ed by the patent, to place the object in commerce, 
and to derive income from its use.  The patent owne r could sell or otherwise al ienate a patent, or grant 
a licence.  Non-exclusive compulsory licences could be granted after 4 years of patent issuance upon WT/ACC/SPEC/GEO/12 
Page 44  
 
 the request of any interested persons (Article 61), provided that the proposed user had made efforts to 
obtain a license from the right holder on reasonable te rms.  By the date of accession, Georgia will 
establish regulations concerning licensing terms and co nditions that full satisfy the detailed requirements 
of TRIPS Article 31. 
Plant variety protection
 
151. The representative of Georgia said that the Law on Protection of Selection Achievements 
protected plant variety and animal breeders by granting a certificate.  The certificate confirmed the 
exclusive right of its holder on selection achievement .  The Law had been prepared according to the 
standards of the UPOV Convention (1991). 
Layout designs of integrated circuits  
152. The representative of Georgia said that the Pa tent Office of Georgia had prepared a new law 
on protection of layout designs of integrated circuits.  The Law on Topographies of Integrated 
Circuits had been enacted by Parliament on 22 June 1999.  His Government believed the new Law 
met the requirements of Articles 35-38 of the TR IPS Agreement.  The Law was provided to the 
Working Party. 
Requirements on undisclosed information, including trade secrets and test data  
153. The representative of Georgia said that th e Law "on Monopolistic Activity and Competition" 
(Article 9.7) prohibited the collection, use and/ or distribution of trade -related information or 
commercial secrets without consent of the proprie tor.  Commercial secrets were also defined and 
protected by Article 1105 of the Civil Code. 
154. Georgia's law did not contain any express pr ovision protecting test data for pharmaceuticals 
and agricultural chemicals, but relevant legislation w as expected to be prepared and enacted in 1999.  
Agricultural products were tested a nd registered by the Plant Protection Department of the Ministry of 
Foods and Agriculture.  Test data and other data were protected and not subject to disclosure until 
registration.  Pharmaceutical products were tested by  the Ministry of Healthcare.  Applications were 
registered and marked "for internal use only", and could not be copied or disclosed to outside persons. 
Measures to Control Abuse of Intellectual Property Rights  
155. The representative of Georgia said that the State Anti-monopoly Service was authorized to 
take measures against acts of unfair competition according to Article 21 of the Law "on Monopolistic  WT/ACC/SPEC/GEO/12 
 Page 45 
 
 
 Activity and Competition".  The Service could initia te court proceedings, re questing the cessation or 
prohibition of activities violating Georgia's anti- monopoly legislation, and raise the issue of 
administrative and criminal liability. 
Enforcement  
Civil judicial procedures and remedies  
156. The representative of Georgia said that the Code  of Civil Procedure, which had entered into 
force on 20 May 1999, stipulated that intellectual property cases were under the jurisdiction of circuit 
courts.  The judicial authorities could order a party to desist from an infringement.  Article 45.2 of the Law on Trademarks allowed a trademark owner whose rights had been violated to file a civil suit seeking cessation of the infringing activities, destru ction of all materials carrying an infringing 
trademark, and damages.  The infringer could also be  fined or imprisoned.  Article 69 of the Patent 
Law provided similar protection against infringement of patents, and Articles 47-49 of the Law on 
Copyright provided equivalent prot ection to copyright owners.  Si milar protection was provided by 
Article 16 of the Law on Geographic Indications , and by Article 15 of the Law on Topographies of 
Integrated Circuits. 
Provisional measures
 
157. The Law on Intellectual Property Related Bo rder Measures, enacted by Parliament on 
22 June 1999, provided for provisional measures to prevent the import or export of goods infringing 
copyrights or trademarks protected under Georgian law.  This Law implemented Articles 50-60 of the 
TRIPS Agreement.  Additional protection was pr ovided under Article 53 of the Administrative 
Procedure Code, and Articles 103-5 a nd 134 of the Civil Procedure Code. 
Administrative procedures and remedies  
158. The representative of Georgia said that the draft Code of Administrative Infringements 
contained provisions regarding inte ntional violation of copyright a nd patent rights (Article 52), and 
misappropriation of trademarks (Article 268). 
Special border measures  
159. The representative of Georgia said that th e Law on Intellectual Property Related Border 
Measures provided that goods infringing copyright or trademark under Georgian law could, upon 
order of the court based on an application of the co pyright or trademark holder, be detained for up to WT/ACC/SPEC/GEO/12 
Page 46  
 
 ten days.  Within that time the right holder would need to initiate proceedi ngs on the merits against 
the alleged infringer.  The Law had been prepared  specifically to implement Articles 50-60 of the 
TRIPS Agreement. 
Criminal procedures
 
160. The representative of Georgia said that a commission within the Ministry of Justice had 
prepared the draft Criminal Code of Georgia.  Th e draft Criminal Code stipulated criminal penalties 
with respect to violation of intellectual propert y rights (Article 194), restriction of monopolistic 
activities and competition (Article 200), misappr opriation of trademarks, including well-known 
trademarks (Article 201), false advertising (Article 205) and ille gal provision or distribution of 
information containing commercial or banking secret s (Article 200).  Penalties ranged from a fine 
equal to 300-1,000 times the minimum wage  and up to two years' imprisonment. 
161. The representative of Georgia stated that Geor gia would comply with all the provisions of the 
Agreement on Trade-Related Aspects of Intellectua l Property Rights from the date of its accession to 
the WTO, without recourse to any transitional pe riod.  The Working Party took note of this 
commitment. 
POLICIES AFFECTING TRADE IN SERVICES 
162. The representative of Georgia said that  services sectors accounted for approximately 
32 per cent of Georgia's GDP in 1998.  Georgia had drafted and adopted new laws and amended 
existing legislation related to trade in services to make the legislative basis consistent with the 
Agreements of the World Trade Organization.  General laws related to services included the 
Constitution of Georgia;  the Law "on Promotion an d Guarantees of Investment Activity";  the Law 
"on Entrepreneurship";  the Law "on the Legal C onditions of Foreigners";  the Law "on Temporary 
Entry, Residence and Exit of Foreigners fro m Georgia";  the Law "on Monopoly Activities and 
Competition";  and the "Bankruptcy Law" of 25 July  1996.  Licensing requirements in the services 
area were detailed in documen t WT/ACC/GEO/4, pp. 129-137. 
163. Concerning specific services sectors, he sai d that a Law on Business Licensing, enacted on 
14 May 1999, provided the framework  for licensing the sectors of insu rance, banking, securities, air 
and maritime transport, auditing services, construc tion and design, and private education services, 
including licensing agency and uniform procedures to be followed.  The representative of Georgia 
explained earlier that banks were required to be registered with the Courts, and to hold a banking 
licence issued by the National Bank of Georgia.  Th e National Bank based its administrative decisions  WT/ACC/SPEC/GEO/12 
 Page 47 
 
 
 on the Law on the National Bank of 28 June 1995 and the Law on Commercial Banks Activities of 
February 1996.  Foreign banks operated in accord ance with Georgia's common banking legislation 
and were not subject to any special or additiona l requirements.  The Insurance State Supervision 
Service controlled insurance activities.  Licences were granted for an indefinite  period of time.  The 
Insurance Law had been amended in October 1998 to  abolish restrictions on foreign ownership of 
insurance companies, effective upon Georgia's ac cession to the WTO.  The Ministry of Finance 
established and enforced the regulatory regime for the stock market and issuance of securities.  
Parliament had approved a law establishing a st ock market and providing for registration and 
regulation of securities in Autumn 1998.  Parliament  had also approved amendments to the Law "on 
Entrepreneurship" providing for improved stockholde r protection and other provisions to encourage 
the development of a securities market in Georgia. 
164. The Ministry of Telecommunications and Postal Services regulated the telecommunication 
sector and postal services in accordance with th e Law on Telecommunications No. 568 of 
12 October 1994.  The Ministry formulated legislati on, regulated tariffs and charges and participated 
in the establishment of industry standards.  Licences were issued by the Ministry of 
Telecommunications, on the basis of a decision of a Licensing Committee (approved by the Minister) 
within one month of submitting the application and documentation.  Telecommunication services 
were provided by both State-owned and private firms.  Postal services were a State monopoly in accordance with Presidential Decree No. 334 of 20 May 1996.  However, foreign express companies 
also operated in Georgia. 
165. The Ministry of Justice regulated legal services.  Legal services by foreign lawyers were not 
regulated or restricted by Georgian legisla tion.  A new Law on Bookkeeping and Accounting had 
been adopted by Parliament on 5 February 1999.  Audit services were regulated by the Audit Board 
established under the Parliament of Georgia.  Audi t firms needed to have a licence from the Audit 
Council in order to provide audit services in Georgia. 
166. The representative of Georgia confirmed that  for sectors subject to domestic regulation, 
including licensing, Georgia applied its domestic regulatory regimes in accordance with GATS Article VI and other GATS requirements and did not discriminate against foreign suppliers. 
167. The regulatory regime in the tourism sector comprised the Tourism Chart and Tourism Code 
(September 1995), the Law "on Tourism and Re sorts" of 6 March 1997, and Amendments and 
Changes to the Law on Tourism and Resorts of 20 March 1998.  The fee for licensing tourist activities 
was set at 245 Lari and applied equa lly to domestic and foreign firms. WT/ACC/SPEC/GEO/12 
Page 48  
 
 168. Georgia's Schedule of Specific Commitments on Services is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Repor t (see paragraph 181 below).  This Schedule of 
Specific Commitments on Services contains the legally binding market access commitments of 
Georgia in respect of services. 
Transparency
 
Publication of information on trade  
169. The representative of Georgia said that a normative act could not take effect before its official 
publication (Article 38, paragraph 5 of the Law on  Normative Acts of 29 October 1996).  Normative 
acts for enactment were published either in "Sakartvelos Kanonmdeblobis Matsne" (Georgian 
Legislation News), "Sakartvelos Parlamentis Utskhe bani" (Georgian Parliament News), "Sakartvelos 
Respublica" (official newspaper), or in the offi cial publishing organ of the authority adopting the 
normative act.  Publication of laws, regulations and administrative orders was a legal obligation, and 
laws, regulations and administrative orders could not take effect before their publication.  Asked to 
clarify the relationship between these requirement s and Article X of the GATT 1994, he confirmed 
that Georgia published all laws, regulations, judicial  decisions and administrative rulings of general 
application prior to implementation. 
170. A member noted that normative acts could be published in a variety of journals and asked 
Georgia to indicate specifically which organs were relevant to the obligations  contained in Article X 
of the GATT and the WTO Agreements on SPS, TBT, TRIPS, GATS, Import Licensing Procedures, 
and Customs Valuation.  Reminding Georgia that Article X and several WT O Agreements required 
laws, regulations, judicial decisions, and administra tive rulings of general application dealing with 
trade to be published in a manner which permitte d governments and traders to become acquainted 
with them, and in some cases for comment prior to  finalization, this member requested Georgia to 
review its current diffuse publication strategy and to  consider focusing its publication requirements on 
WTO issues in a relatively small number of public ations.  The current system of publication of 
normative acts in various publishing  journals could be a source of  serious confusion and lack of 
proper information for foreign traders. 
171. The representative of Georgia replied that Ar t. 38.5 of the Law on Normative Acts provided 
the legal requirement for the publication of trad e laws (among other laws).  Although individual 
ministries and agencies could publish enactments in various ways, two sources were authoritative.  
"Sakartvelos Kanonmdeblobis Matsne " (Georgian Legislative News) was published weekly in three 
parts:  (i) Parliamentary enactments;  (ii) interna tional treaties and agreements to which Georgia was a  WT/ACC/SPEC/GEO/12 
 Page 49 
 
 
 party;  and (iii) regulations and other enactments of  the various ministries, as approved and registered 
by the Ministry of Justice.  A separate publicatio n, "Sakartvelos Presidentis Budzanebulebebi da 
Gankargulebebi" (Decrees and Orders of the Presi dent of Georgia), published bi-weekly, contained 
Presidential enactments.  These publications were, of course, in Georgian.  Unofficial English 
translations were available for many important enactments from various commercial sources.   He added that, from the date of accession, Georgia woul d publish all laws, regulations, judicial decisions, 
and administrative rulings of general application dea ling with trade in full conformity with Article X 
of GATT 1994, Article III of the GATS and the other transparency requirements in WTO Agreements requiring notification and publication. 
Notifications
 
172. The representative of Georgia said that, at the latest upon entry into force of the Protocol of 
Accession, Georgia would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subsequent ly enacted by Georgia which gave effect to the 
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of this commitment. 
Trade Agreements  
173. The representative of Georgia said that Georgia was a member of several multilateral 
economic organizations, including the Customs Coope ration Council (CCC);  the European Bank for 
Reconstruction and Development (EBRD);  the United Nations Economic and Social Council 
(ECOSOC); the European Telecommunications Sa tellite Organization (EUTELSAT);  the Food and 
Agriculture Organization (FAO);  the International At omic Energy Agency (IAEA);  the International 
Civil Aviation Organization (ICAO); the Internati onal Fund for Agricultural Development (IFAD);  
the International Labour Office (ILO);  the Intern ational Monetary Fund (IMF);  the International 
Maritime Organization (IMO);  the International Maritime Satellite Organization (INMARSAT);  the 
International Organization for Migration (IOM);  the International Road Traffic Organization (IRTO);  
the International Trade Centre (ITC);  the Inte rnational Telecommunicati ons Union (ITU);  the 
Organization for Security and Cooperation in Eu rope (OSCE);  the United Nations Conference on 
Trade and Development (UNCTAD);  the United Nations Development Programme (UNDP);  the 
United Nations Economic Commission for Europe (UNECE);  the United Nations Environmental 
Programme (UNEP);  the United Nations Industr ial Development Organization (UNIDO);  the 
Universal Postal Union (UPU);  the World Food Programme (WFP);  the World Health Organization 
(WHO);  the World Intellectual Property Organization (WIPO);  the World Meteorological Organization (WMO);  the World Bank;  the Inte rnational Bank for Recons truction and Development WT/ACC/SPEC/GEO/12 
Page 50  
 
 (IBRD);  the International Development Associati on (IDA),  the International Finance Corporation 
(IFC);  the Multilateral Investment Guarant ee Agency (MIGA);  and the World Tourism 
Organization. 
174. Georgia had signed 30 bilateral agreements  containing substantive provisions directly 
affecting foreign trade in goods and/or services.  Georgia had concluded Free Trade Agreements with 
Armenia, Azerbaijan, Kazakstan, Moldova, the Ru ssian Federation, Turkmenistan, Ukraine and 
Uzbekistan, but only those with Armenia, Azerba ijan, the Russian Federation and Ukraine had been 
ratified and were effective.  Georgia had al so signed 22 agreements on trade and economic 
cooperation or economic relations, as well as a number  of agreements and treaties on the promotion 
and reciprocal protection of investment (the respective agreements are listed in document WT/ACC/GEO/3, Annex 7).  Georgia had signed a Partnership and Cooperati on Agreement with the 
European Communities on 22 April 1996.  The agreem ent was based on reciprocal application of the 
MFN principle.  Georgia was a participating State in the Black Sea Economic Cooperation (BSEC), established on 25 June 1992. 
175. Concerning relations with the Commonwealth  of Independent States (CIS), he said that 
Georgia had become a CIS member on 9 December 1993.  Georgia had signed the Agreement on the 
Creation of an Economic Union of 24 September 1993 and the Agreement on Creation of Free Trade 
Area within the CIS, but these agreements had never been ratified, and the Government had no 
intention of seeking ratification.  The Agreement on Creation of Free Trade Area within the CIS 
bound signatories not to impose import or export  duties or quantitative restrictions on goods 
originating in signatory countries.  The Agreemen t provided that the parties would agree on goods to 
be excluded from the free trade regime, but this had not been done.  The Agreement required each 
party to authorize free transit over its territory of go ods originating in another party and destined for a 
third party.  The Agreement also required the signa tories to accord national treatment with respect to 
(i) domestic taxes and levies of a fiscal character, (ii) other restrictions or requirements, and (iii) rules 
on transit, warehousing and payment.  Parties were  free to take quantitative or other protective 
measures in response to shortages;  for balance of  payments reasons; or to redress significant injury 
caused by imports, or threat thereof, to domestic producers.  Each party remained free to adopt 
measures to protect public health, morals, order a nd security, plants and animals, national treasures 
and intellectual property.  The Coal and Metal A ssociation Agreement, signed by 11 CIS countries, 
provided for the establishment of a Eurasian Asso ciation for Coal and Metal to further rational 
development of the coal and me tal-producing industries, coordina tion of scientific, technical and 
investment policies, and promotion of beneficial cond itions of supply and terms of sale.  The Coal and 
Metal Association Agreement aimed at elaborati ng "recommendations for implementation of general  WT/ACC/SPEC/GEO/12 
 Page 51 
 
 
 industrial and economic policy in the field of coal and metallurgy", but did not contain any provisions 
relating to preferential market access.  The Agreemen t had never been ratified and was not in force, 
and the Government had no inte ntion of seeking ratification. 
176. The representative of Georgia stated that Georgia did not conduct any trade on the basis of 
government-mandated countertrade or barter.  An agreement with the Russian Federation for 1996-97 
had envisaged duty exempt barter of agricultural products in exchange for industrial goods between 
private sector entities, but no such trade had actua lly taken place, and the agreement had expired. 
177. In response to specific questions on Georgia' s economic relations with other CIS countries, 
the representative of Georgia reiterated that onl y the Free Trade Agreements with Armenia, 
Azerbaijan, the Russian Federation and Ukraine were  actually in force.  The Free Trade Agreement 
with Ukraine had entered into force on 4 June 1996.  The CIS Agreement on the Creation of an 
Economic Union was a framework agreement which re quired separate agreements in specific areas of 
economic activity to become effective.  No free circulation of goods, services, capital or manpower 
had yet been implemented on the basis of this Agre ement.  He stressed that Georgia had no intention 
of joining the CIS Customs Union.  He agreed th at the Agreement "On Creation of Zone of Free 
Trade of the Commonwealth of Independent States" would need to be notified under Article XXIV of 
the GATT 1994 and Article V of the GATS when and if  that Agreement became effective, but added 
that the agreement was not yet in force. 
178. A member requested Georgia to submit notif ications and copies of its Free-trade Area and 
Customs Union Agreements to the Committe e on Regional Trade Agreements (CRTA) upon 
accession. 
179. The representative of Georgia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Artic le V of the GATS in its participation in 
trade agreements, and would ensure that the provi sions of these WTO Agreements for notification, 
consultation and other requirements concerning free trade areas and customs unions of which Georgia 
was a member were met from the date of accession.  He confirmed that Georgia would, upon accession, submit notifications and copies of its Fr ee Trade Area and Customs Union Agreements to 
the Committee on Regional Trade Agreements (CRTA).  He further confirmed that any legislation or 
regulations required to be altered under its Trade Agreements would remain consistent with the 
provisions of the WTO and would, in any case, be notified to the CRTA during its examination of the 
same.  The Working Party took note of these commitments. WT/ACC/SPEC/GEO/12 
Page 52  
 
 CONCLUSIONS 
180. The Working Party took note of the explana tions and statements of Georgia concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Georgia in relation to certain specific matte rs which are reproduced in  paragraphs 24, 26, 35, 
40, 44, 53, 57, 62, 65, 69, 73, 76, 78, 82, 86, 89, 92, 99, 100, 107, 109, 111, 113, 117, 119, 125, 161, 172 and 179 of this Report.  The Working Party took note that these commitments had been 
incorporated in paragraph 2 of the Prot ocol of Accession of Georgia to the WTO. 
181. Having carried out the examination of the forei gn trade regime of Georgia and in the light of 
the explanations, commitments and concessions made  by the representative of Georgia, the Working 
Party reached the conclusion that Georgia be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Georgia's Schedule of Specific Commitments on Services [(document WT/ACC/SPEC/GEO/12/Add.2)] and its Schedul e of Concessions and Commitments on Goods 
[(document WT/ACC/SPEC/GEO/12/Add.1)] that are anne xed to the Protocol.  It is proposed that 
these texts be adopted by the General Council when  it adopts the Report.  When the Decision is 
adopted, the Protocol of Accession would be open for acceptance by Georgia which would become a 
Member thirty days after it accepts the said Protocol .  The Working Party agreed, therefore, that it had 
completed its work concerning the negotiations for the accession of Georgia to the Marrakesh 
Agreement Establishing the WTO. 
  WT/ACC/SPEC/GEO/12 
 Page 53 
 
 
 Table 1:  Progress in privatization in Georgia  
Privatization of enterprises, 1 January 1993 – 15 May 1999 
(a) Medium/Large enterprises converted to Jo int Stock Companies and subsequently sold 
Enterprises converted to JSCs, by sector 
 
 Originally 1993  1994 1995 1996 1997 1998  1999  Total Remain
Industry 192  7  122  27  9  4  7  0  176  16  
Chem. Eng. 31  2  10  7  2  1  2  1  25  6  
Natural gas 57  0  3  11  15  3  11  1  44  13  
Bread Prod. 61  0  1  2  18  2  1  0  24  37  
Agriculture 383  6  192  59  42  14  10  4  327  56  
Arch.&Const. 219  2  94  90  15  4  8  1  214  5  
Trade/Nat. Res. 81  0  31  22  8  5  4  0  70  11  
Oil Products 49  0  19  8  4  1  1  0  33  16  
Transport 116  3  65  28  5  3  4  2  110  6  
Social Svcs 49  2  16  18  4  1  1  0  42  7  
Energy 60  1  2  4  28  32  21  3  91  0  
Seaports 2  0  0  0  0  0  0  0  0  2  
Total 1,300  23  555  276  150  70  70  12  1,156 175  
 
 
Joint Stock Companies privatized by sale of more than 50 per cent of shares, by sector 
 
 Originally 1993  1994 1995 1996 1997 1998  1999  Total Remain
Industry 176       168  8  
Chem. Eng. 25       25  0  
Natural gas 44       24  20  
Bread Prod. 24       24  0  
Agriculture 327       259  68  
Arch.&Const. 214       170  44  
Trade/Nat. Res. 70       44  26  
Oil Products 33       27  6  
Transport 110       110  0  
Social Svcs 42       31  11  
Energy 91       47  44  
Seaports 0       0  0  
Total 1,156  2  108  204  214  273  128  0  929  227  WT/ACC/SPEC/GEO/12 
Page 54  
 
 Privatization of enterprises, 1 January 1993 – 15 May 1999 
 
(b) Small enterprises ("Objects") sold with out conversion to Joint Stock Companies  
 
 Originally 1993 1994 1995 1996 1997 1998 1999 Total Remain
 
Total: 12,088 1,310 1,370 4,701 2,247 1,474 1,910 136 13,148 405 
By Sector: 
  Industry: 345 26 35 103 50 30 22 3 269 76 
  Construction 224 11 70 67 58 40 35 3 284 2 
  Food/Agric. 584 54 29 125 76 92 112 5 493 91 
  Transport 101 4 4 40 31 20 22 0 121 0 
  Trade 4,532 394 717 2,184 464 465 584 59 4,867 0 
  Public Svc 4,970 644 481 1,685 1,160 664 999 62 5,695 0 
  Health Care 747 0 0 285 207 42 18 0 552 195 
  Oil Products 166 149 10 1 1 1 4 0 166 0 
  Social Svc 246 23 20 154 171 97 100 4 569 0 
  Energy 33 5 4 13 3 3 5 0 33 0 
  Bread Prod. 140 0 0 44 26 20 9 0 99 41 
      
Notes :           
1. Total privatized exceeds the number originally identified because some units were divided. 
2. Remaining unsold "Health Care" includes a nu mber of smaller hospitals and clinics. 
3. Remaining unsold "Industry" includes a number of unfinished construction projects 
 
   WT/ACC/SPEC/GEO/12 
 Page 55 
 
 
  
Table 2:  Rates of Excise Tax (Imported and Domestic)  
  
No. Commodity HS Codes Quantity Rate (Lari or 
per cent) 
1  Sparkling wines, including champagne 2204.10, 2204.21.10, 
2204.29.10 1 Liter 0.50  
2  Fortified wines 2204.21.90, 
2204.29.90 1 Liter 1.00  
3  Vermouth and other natural wines flavoured
with extracts 2205 1 Liter 2.00  
4  Natural wines made of grapes which are not
included in lines 1 or 2 2204 1 Liter 0.20  
5  Other fermented beverages (apple cider,
perry, mead); mixtures of fermented
beverages, mixtures of fermented and non-alcoholic beverages not elsewhere specified2206 1 Liter 2.00  
6  Ethyl spirits 2207 1 Liter 0.70  
7  Alcoholic beverages distilled from grape
wine; Chacha 2208.20 1 Liter 2.00  
8  Whiskey 2208.30 1 Liter 2.00  
9  Rum and tafia 2208.40 1 Liter 2.00  
10  Gin 2208.50 1 Liter 2.00  
11  Liqueurs 2208.70 1 Liter 2.00  
12  Vodka 2208.60 1 Liter 1.00  
13  Other distilled alcoholic be verages 2208.90 1 Liter 2.00  
14  Beer 2203 1 Liter 0.12  
15  Tobacco products (except raw materials)    
 Cigars and cigarillos 2402.10 1000 pcs 150.00  
 Filter cigarettes 2402.20 1000 pcs 7.50  
 Non-filter cigarettes 2402.20 1000 pcs 2.50  
 Other tobacco products and substitutes 2403 1 kilo 20.00  
 Rates on imported tobacco products:    
 Cigars and cigarillos  Each 0.25 
 Filter cigarettes  Pack 0.25 
 Non-filter cigarettes  Pack 0.19 
 Other tobacco products  1 kilo 20.00 
16  Jewelry 7113, 7114, 7116  35% 
17  Passenger automobiles 8703  15% 
18  Passenger automobile tires 4011, 4012  15% 
19  Salmon and sturgeon caviar; delicacy
products of fish 1604.30, 1605  20% 
20  Oils and other pr oducts of distillation o f
coal tar at high temperature 2707 except 2707.40 
and 2707.99  60% 
21  Petroleum oils from bituminous materials,
crude 2709  60% 
22  Light, medium, and heavy di stillates of oil 2710.00.10 to 
2710.00.70  80% WT/ACC/SPEC/GEO/12 
Page 56  
 
 23  Liquified petroleum gases 2711.12, 2711.13, 
2711.14, 2711.19  60% 
24 Other oil products produced from raw oils
and bituminous minerals 2710 (excep t 
2710.00.110 – 690 and 710-780)  60% 
25 Mineral water in bottles for reta il sale 2201.10 and 2202.10 1 liter 0.10 
Note:  As of June 1999, a specific tax in lieu of excise, duty and VAT was levied on imported tobacco 
products as follows:  filter cigarettes 0.25 lari per p ack, non-filter cigarettes 0.19 lari per pack, cigars 
0.25 lari per piece, and pipe tobacco 20 lari per kg.  Excise taxes on domestic and imported tobacco 
products will be unified by the date of accession. 
   WT/ACC/SPEC/GEO/12 
 Page 57 
 
 
 Table 3:  Items subject to import licensing  
(a) Chemical agents for protection of plants: HS 
3808. Licence is granted by the Ministry of 
Trade and Foreign Economic Relations with the consent of the Ministry of Protection of Environment and Natural 
Resources, the Ministry of Agriculture 
and Food. 
(b) Wild animals and birds, fish, bones and hoofs 
of extinct animals, wild plants, seeds of wood species of forest and similar materials: HS 0101.19; 0102.90; 0103.90; 0104; 0105.99; 0106 (only wild animals); 0301-0303; 0407 (except poultry eggs); 0507; 0508; 0604; 
0802.20; 1209.99; 1211; 1212.20; 1401-1404; 
9601. Licence is granted by the Ministry of 
Trade and Foreign Economic Relations with the consent of the Ministry of Protection of Environment and Natural Resources, the Department of Forestry, the Ministry of Agriculture and Food. 
(c) Remedies, medicines and their raw materials, 
narcotic and psychotropic remedies, poisons: HS 0206; 0507; 0510; 1211; 1212.20; 1302; 1504 (only pharmacological preparations and their raw materials); 3001-3004; 300660. Licence is granted by the Ministry of 
Health Protection. 
(d) Weapon and military equipment, special 
completing products, works for their production, services in the field of military technical cooperation:  HS 8506 (military 
purpose only); 8710; 8802 (except 8802.11; 
8802.12; 8802.20; 8802.30; 8802.40); 8803.90 (except 8803.90.91); 8805.10; 8906; 9013.10; 9013.20; 9013.80, 9014; 9301; 9302; 9305 (only for fighting arms); 9306 (except: 
9306.10; 9306.29; 9306.29; 930629; 930630);   Licence is granted by the ministry of 
Justice. 
(e) Gunpowder, explosives, pyrotechnic 
substances: HS 3601 (except gunpowder for 
hunting); 3602-3604. Licence is granted by the Ministry of 
Justice. 
(f) Nuclear materials, technologies, equipment 
and installations, special non-nuclear 
radioactive radiation sources:  HS ; 2844; 2845; 8401. Licence is granted by the Ministry of 
Justice. 
(g) Industrial wastes. Licence is granted on the basis of the 
consent of the Ministry of Protection of Environment and Natural Resources. 
(h) Tobacco products: 2402 and 2403 Licence granted by the Ministry of 
Trade and Foreign Economic Relations 
 The import of non-toxic industrial wastes is allowed only for the purpose of industrial processing. Import of toxic and radioactive industria l wastes for the purpose of their utilisation, safe 
disposal, processing, interment and any other purposes is prohibited. WT/ACC/SPEC/GEO/12 
Page 58  
 
 Table 4:  Exports subject to prohibition or licensing
 
According to Resolution No. 744 of 30 November 1995 of the Cabinet of Ministers of Georgia, the Law of 
Georgia on Regulation of Forest Exploitation of 26 J une, 1998, and the Law of Georgia of Export of Scrap 
Metals of 26 June, 1998,  export of the fo llowing is prohibited or licensed as indicated: 
 
Prohibited: 
HS 9701-9703, 9706 Artwork and antiques of 
museum value  
HS 9301, 9302, 9305, 9306 Weapons and gunpowder  
 
Subject to licensing: 
HS 9705 Collection materials of 
biology, mineralogy, 
archaeology, paleontology, ethnography and numismatics: Licence is granted in agreement with 
the Ministries of Finance, Protection of 
Environment and Natural Resources, Culture and the Department of Geology respectively. 
HS 4401, 4403, 4404, 4406, 4407 Timber and lumber Licence is granted by the Ministry of 
Trade and Foreign Economic Relations on the basis of  permit for cutting timber Issued by the State Forestry 
Department 
HS 0206; 0510; 1211; 
13021; 1504.20; 1505; 
3001; 3002 Raw materials of animal 
and plant origin for 
medicines, substances 
received from human organism Licence is granted by  the Ministry of 
Health Protection. 
HS1209.99 Caucasian Fir seed 
 Licence is granted by the Ministry of 
Trade and Foreign Economic Relations in agreement with the Ministry of Protection of Environment and Natural Resources. 
 HS 7204, 7404, 7602 Ferrous, copper and  
aluminum metal scrap Licence is granted  by the Ministry of 
Trade and Foreign Economic Relations. 
  WT/ACC/SPEC/GEO/12 
 Page 59 
 
 
 Table 5(a):  Products Subject to Mandatory Certification  
 Description of Product Position Code 
1 Meat and meat products Group 2 
2 Fish and other aquatic invertebrates Group 3 
3 Milk and dairy products, bird s’ eggs, natural honey, edible 
products of animal origin  Group 4 
4 Coffee, tea, spices Group 9 
5 Grain for bread Group 10 
6 Cereals, starch, inulin  Group 11  
7 Fats, oils and their fractions of  animal or plant origin. Group 15 
8 Meat and fish ready for use products Group 16 
9 Sugar and sugar confectionery Group 17 
10 Cocoa and cocoa preparations Group 18 
11 Preparations of cereals, flour, starch or milk; pastrycooks’ 
products    Group 19 
12 Preparations of vegetables, fruit, nuts or other parts of 
plants Group 20 
13 Miscellaneous edible preparations Group 21 
14 Beverages, spirits and vinegar Group 22 
15 Prepared animal food Group 23 
16 Tobacco and tobacco products Group 24 
17 Edible salt 2501 00 910 
18 Organic and non-organic sands 2505, 2517, 2518.20, 2513, 2514, 
2620, 2530.10 
19 Clay, Portland cement and related stuff 2523, 2522, 2520.20, 2570, 2617, 
2508.70, 7019 
20 Engine petroleum containing lead no more than  0.013 g/l 2710.00.330 
21 Engine petroleum containing lead more than 0.013 g/l 2710.00.350 
22 Kerosene 2710.00.510 
23 Diesel fuel 2710.00.690 
24 Liquid fuel (mazout) 2710.00.790 
25 Lubrication and other oils 2710 00 990 
26 Liquid gas for everyday purposes 2711.12.190, 2711.13.900, 2711.19 
27 Fertilizers Group 31 
28 Coloring materials 3204, 3207 
29 Essential oils and resinoids, perfumery, cosmetic or toilet 
preparations Group 33 
 
30 Washing and cleaning preparations 3401, 3402, 3405  
31 Casein, caseinates, prepared glues etc. 3501.00.100, 3506.10, 4410, 4411, 
4442, 2509, 5904, 6802.91, 
4409.20.910 
32 Photographic or cinematography goods Group 37 
33 Hydraulic brakes fluid   3819 
34 Floor coverings of plastics etc. 3917, 3918 
35 Plastics goods 3921, 3922, 3923, 3924   
36 Pneumatic tires of rubber  4011, 4012  
37 Clothing 6105, 6106, 6107, 6108, 6112, 6115, 
6207, 6208, 6209, 6211 
38 Children’s shoes  6401, 6402, 6403, 6404, 6405 WT/ACC/SPEC/GEO/12 
Page 60  
 
  Description of Product Position Code 
39 Natural and artificial stones 6802, 2516, 2515, 1100,  
40 Slag wool, rock wool and simila r warm materials 6806, 6808, 7019.51 
41 Wall materials 6810.11, 6809 
42 Hydroisolation materials 6811, 7212.10.100, 6810.19.100, 
6807.10.100, 2714 
43 Articles of cement, concre te or artificial stone 6810 
44 Traffic and road works 6801, 6815, 6810.19.310, 6807 
45 Ceramic articles 6901, 6904, 6914, 6910.10 
46 Fire resisting materials and articles 6902, 2524, 8544 
47 China dinner, kitchen, other household and toilet articles 6911 
48 Dinner, kitchen, other household ceramic dishes and toilet 
articles 6912 
49 Steel and steel products 7210, 7216, 7219.12, 7212.20, 7217, 
7304, 7306, 7307, 7309, 7314, 7317, 
7604, 7606, 7608 
50 Steel constructions 7308, 7610, 7612 
51 Aluminum containers not expa nding the 50 litres capacity 7612.90.990 
52 Locks 8301 
53 Caps for glass bottles, corks, etc. 8309 
54 Wire, rods, tubes, plates, electrodes and similar products, of 
base metal or of metal carbides, coated or cored with flux 
material, of a kind used for soldering, brazing, welding 8311 
55 Compressors and other parts for refrigerators  8418.99 
56 Household air cleaning machine 8421.39.300 
57 Household dish washing machines  8422.44 
58 Desk, wall, floor fans  8444.51 
59 Household refrigerators and freezers  8444.80 
60 Air conditioning appliances  8445.10 
61 Medical, surgical sterilizers    8449.20 
62 Household or laundry washing machines 8450  
63 Household wood work machinery 8465 
64  Electric motors not exceeding 37.5 watts 8501.10  
65 Motors and generators with cons tant electricity supply  8501  
66 Motors of an output not exceeding 750 W 8501.51 
67 Electric generating sets and rotary converters 8502, 8504  
68 Basic elements and batteries 8506 
69 Electric accumulators including their apparatus of different 
shapes 8507  
70 Electrical engine operated manual electric-mechanical 
instruments with indulged 8508  
71  Electrical engine operated household electric mechanical 
machines  8509  
72 Electrical engine operated electric shavers and hair cutters; 8510  
73 Alarm and lighting equipment 8512  
74 Other electric household items 8516  
75 Tape players and similar devices  8519  
76 Tape recorders and other recording devices with or without 
players 8520  
 
77 Video recording and playing devices  8521   WT/ACC/SPEC/GEO/12 
 Page 61 
 
 
  Description of Product Position Code 
78 Fire and safety electronic alarms 8531  
79 Electric devices for turning on/off the electricity, contacts, 
with voltage over 100 V (sw itches, switchboards, power 
reducers, fluctuation reducers, electric load, using 
equipment, etc.) 8535  
80 Electric filament or discharge lamps, including sealed beam 
lamp units and ultra-violet or infra-red lamps; arc-lamps 8539 
81 Vehicles carrying 10 or more persons (except used) 8702 
82 Trucks (except used, ones for transporting radioactive 
products) 8704 
83 Trucks specifically used for city communication purposes 8705.90 
84 Car devices and details   8708  
85  Motorcycles, bikes with supporting engines with or without 
additional seats (except the used and sport cars) 8711  
86 Baby carriages 8715 
87 Pacemakers for stimulating heart muscles  9021.50 
88 Appliances and devices used in medicine, surgery, 
dentistry, other electric medical facilities  9048 
89 Seating furniture 9401  
90 Household furniture  9403  
92 Prefabricated buildings 9406 
93 Various prepared stuff 9613, 9616, 9617  
 
 
 
Table 5(b):  Products Removed from Requ irement for Mandatory Certification  
 
Description of Product Position Code 
Vegetables and bulbs, tuberous roots Group 7  
Edible fruit or nuts, citrus a nd its shells and peel Group 8 
Foliage beet, edible roots, lucern, edible cabbage, hay 
whether or not granulated  1214 
Engine and aviation petroleum 2710 
Medical oxygen 2804.40  
Gauze and its preparations 3005.90 
Lubrication means for cars, equipment and transportation 
means 3403.19 
Matches 3605.00  
Copper sulfate, packed for retail prices 3808.20 
Herbicides 3808.30 
Disinfectants, for use in health protection and veterinary 3808.40 
Flexible insulation tubes of ethylene, vinyl chloride or other 
plastic polymers 3917.31 
Diaphragm of polymers of ethylene 3920.10 
Contraceptives 4014.90 WT/ACC/SPEC/GEO/12 
Page 62  
 
 Description of Product Position Code 
Latex baby’s dummy, rubber ice bubbles, rubber hothouses, 
medical rubber tubes 4014.99 
Appliances for individual safety reasons, rubber masks 4015.90 
Surgical gloves 4015.11 
Plywood veneer sheets of leaf- bearing sorts with outward 
layers, veneer sheets of coniferous sorts with outward layers4412 
Veneer preparations 4415.10  
Filter for grocery products 4805.40 
Wrapping paper for grocery products 4805.80 
Hard paper boxes  4819.10 
Hard and soft paper boxes, including bending ones, paper 
bags and bags of combined materials, glass and paper 
bottles 4819.50 
Insulation fabric 5903.90 
Male, female and children kn itted garments, including the 
clothing for babies and children before school age - knitted garments - male, female a nd children swimming and skiing 
suits - foot ware (socks, warm pants and sweat pants)  6109, 6111  
Uncut diamond instruments – sewing discs, cutting discs 6804.21 
Abrasion instruments - sewing discs, cutting discs 6804.22 
Abrasion powder instruments 6805 
Friction materials and preparations 6813  
Air balloons of 50 litre capacity  at burst  pressure of 1.6 Pa 7311  
Heaters, kitchen ovens, food heaters and other similar non 
electrical equipment made of fe rrous metal, related supplies 7321 
Copper enameled household articles  7323.92 
Iron enameled household articles 7323.94 
Manual garden tools (knives, etc.) 8201.10, 8201.20, 8201.30, 
8201.50 
Wood-cutting instruments - plate saws  8202.32 
Screwdrivers 8203.20 
Hammers, planes 8205.20, 8205.30 
Guts 8205.40 
Milling cutters 8207.70 
Motorcycle and car engines 8407.34, 8407.90  
Household liquid pumps, manual 8413.20 
Manual household pumps 8414.20 
Compressors used in refrigerating plants 8414.30 
Electronic engine air conditioners for tables, wall, floor, ceiling with capacity of 125 kWh 8414.51  
 
Air conditioner supplies for measuring air temperature and humidity; conditioners without a separate regulator of humidity; - for wall or window - other 8415.10, 8415.82, 8415.83 
Refrigerator closets and containers 8418.10 
Family refrigerators: compressive-electric, absorbing, other 8418. 21, 8418.22, 8418.29 
Refrigerator shelves 8418.50 
Water heaters or water accumulators 8419.19 
Medical, surgical sterilisers 8419.20  WT/ACC/SPEC/GEO/12 
 Page 63 
 
 
 Description of Product Position Code 
Machines, equipment and other for preparing warm drinks 
or heating up dishes 8419.81  
Electric milk separators with capacity of 1 kWh and manual 
capacity of 50 litre/hour 8421.11 
Household dish washers 8422.11 
Machines for weighting and acknowledging the wrapped 
goods 8423.81 
Motor operated cultivators 8432.29 
Machines for cutting the hay, grass, etc. 8433.11, 8433.19 
Machines used in milk industry 8434  
Electric incubators with capacity of 4kWh 8436.21 
Mixers and related machines in food industry 8438  
Binding machines for brochures 8440 
Machines for textile fibre weaving: - carding machines;-
looms 8445.11, 8446 
Dryers for clothing 8451.21 
Automatic or other sewing machines 8452.21, 8452.29 
Electric household sewing machines 8452.10 
Metal cutting machinery 8458, 8459 
Non-electric, manual tools 8467  
Automatic and electrical typing machines, machinery for 
textile work 8469  
 
Concrete mixer 8474.31 
Equipment for making mixtures of building materials 8474.39 
Rubber and rubber product making machinery 8477  
General machinery reducers and transmissions 8483.40  
General machinery motor-reducers 8483.40 
Electrical equipment with internal burn engine for 
automobile transport (ignition coils, spark-plugs, 
starters);generators (of consta nt and changeable electricity 
supply) 8511  
Industrial or laboratory used electric ovens and containers 
including special machinery for thermo-works 8514  
 
Soldering irons and soldering apparatuses 8515.11 
Automatic and half automatic  machines and apparatus for 
arc welding of metals 8515.31 
Electric phone system 8517.10 
Electric door bell systems 8517.81 
Electrical voice devices, microphones 8518.50 
Broadcasting devices and apparatus for radio/ television, 
television cameras 8525  
 
Radio-phone devices, radio-telegraph devices and other apparatus for radio broadcasting 8527  
Television receivers including video monitors and video 
projectors, with or without voice recording and playing devices 8528 
Constant electric network condensers of 50/60Hz. 8532.10 WT/ACC/SPEC/GEO/12 
Page 64  
 
 Description of Product Position Code 
Electric devices for switching on/off, breaking and 
protecting the electricity supply or for connection to electric 
circuits (switches, sockets, cords, etc.) 8536  
Electric-laser hoses for television receivers including video 
monitors with:  - coloured vision - black and white vision -
vacuum display hoses 8540.11, 8540.12, 8540.89 
Isolated electric tubes with or without connective details, 
optic cables 8544  
Cars (except used, sport, snow equipped, field games 
vehicles) 8703 
Electrical transport devices for transporting goods to 
ware-houses 8709 11 900 
Two wheel bikes without engine 8712 00 
Photo cameras with flashes 9006 (except 9006.10, 9006.20, 
9006.30, 9006.91, 9006.99) 
Cine-projectors 9007.21 
Slide projectors 9008.40  
Electric devices and apparatus for medical, surgical, dental, veterinarian, etc. uses 9018 
Individual safe breathing devices 9020 
Cardiostimulator 9021.50 
Changeable electricity measurers - one line - multi line 9028.30 
Electricity measurers and other 9018.30 
Automobile speedometers 9029.20 
Cathode-beam oscilloscopes and oscillographs 9030.20 
Mixed electromeasuring devices 9030.31 
Voltmeters, ampere meters and othe r electric devices 9030 (except 9030.39) 
Electric clocks 9105 
Medical, surgical, dentist, veterinarian furniture 9402 
Lighting devices for stage, television and movie studios; for 
photo and movie filming; for industrial purposes; for tables and projectors 9405 
Human doll toys 9502 
Receiver operated video games 9504.10 
Coin or toil operated toys 9504 (except 9504.30) 
Rubber masks and related diving gear 9506.29 
Building material out of cement and metal Groups 25 and 69 (except 2515, 
2516, 2517, 2523, 6904, 6908) 
T-shirts and similar vests 6109 
Liquid gas 2711.11, 2711.12 
Coal 2701 
Artificial leather 4111 
Curing remedies 3003, 3004 
Synthetic ammonia 2814 
Calcium carbide 2819.10 
Steel tubes 7304.10 
Caprolactam  
Chemical fibre and thread  
  WT/ACC/SPEC/GEO/12 
 Page 65 
 
 
 Table 6:  Status of Legislation on Intellectual Property in Georgia  
TRIPS Part/Section Article Current Law OK Comments 
Part I: General Article 1 LNR   
 Article 2 LNR Member Paris Convention 
 Article 3 PL/CL/TL/CC1018(f) Member Paris, Berne 
Conventions 
 Article 4 LNR   
 Article 5 LNR   
 Article 6 LNR   
 Article 7 LNR   
 Article 8 LNR   
Part II: Standards   
  Section 1:  Copyright Article 9 LNR Member Berne Convention 
 Article 10 CC 1060-61,CL 10,25  
 Article 11 CC 1088,CL 16(3), 39,40 Cinema, video 
 Article 12 CC 1062-63,CL 27,28  
 Article 13 CC 1050-61,CL 18-26  
 Article 
14(1) CC 1082(1)(a)  
 Article 
14(2) CC 1082(1)(b)  
 Article 
14(3) CC 1091  
 Article 
14(4) CC 1089,CL 16(3)  
 Article 
14(5) CC 1062-63,CL 27-28  
 Article 
14(6) LNR Permissive 
  Section 2: Trademarks Article 15 TL 3,15  
 Article 16 TL 3(4),6  
 Article 17 TL 7  
 Article 18 TL 20  
 Article 19 TL 27  
 Article 20 LNR Negative requiremen t 
 Article 21 TL 25(2),26   
  Section 3:  Geographical 
Indications Article 22 TL 5(e),LGI 3-5,11(1)  
 Article 23 TL 5(e),LGI 6,11(1)(b),(c)  
 Article 24 LGI 14(7) Art 24(5) only, others LNR 
  Section 4: Industrial Designs  Article 25 PL 14 Art 25(2) LNR 
 Article 26 PL 5(4),48(1),52  
  Section 5: Patents Article 27 PL 12,17  
 Article 28 PL 48,49,59-62  
 Article 29 PL 24,26  
 Article 30 PL 52  
 Article 31 PL 52,61  
 Article 32 CPC/APA  
 Article 33 PL 5(1)  WT/ACC/SPEC/GEO/12 
Page 66  
 
 TRIPS Part/Section Article Current Law OK Comments 
 Article 34 PL 49  
  Section 6: Layout Designs Article 35 LIC 1,2,3,8  
 Article 36 LIC 5  
 Article 37 LIC 6,7  
 Article 38 LIC12  
  Section 7:  Trade Secrets Article 
39(1) LNR Member Paris Convention 
 Article 
39(2) CC 1105  
 Article 
39(3) LNR Data not required 
  Section 8:  Anti-
Competition Article 40 LNR   
Part III: Enforcement   
  Section 1:  General 
Obligations Article 41 CPC 191-199, 364, TL45, Dft 
APC 53 APC to be enacted spring 
2000 
  Section 2:  Civil/Admin. Procedures Article 42 CPC2,5,83,102,103,201  
 Article 43 CPC 134  
 Article 44 CPC 191-199, Draft APC 53 APC to be enacted spring 
2000 
 Article 45 CC 408-415, CPC 43-54  
 Article 46 CC 1098, TL 45,LBM 9(2)  
 Article 47 LNR Permissive 
 Article 48 CC 408-415, CPC 43-54  
 Article 49 Draft APC 5 APC to be enacted spring 
2000 
  Section 3:  Provisional Measures Article 
50(1) LBM 3,4, CPC 191-199  
 Article 
50(2) LBM 3-5, APC 53, CPC 191-
199  
 Article 
50(3) CPC 103-5, 134  
 Article 
50(4) CPC 194, 286  
 Article 
50(5) LBM 5, CPC 198  
 Article 
50(6) LBM 6, CPC 192  
 Article 
50(7) LBM 7, CPC 199  
 Article 
50(8) APC 5  
  Section 4:  Border Measures Article 51 LBM 3-5  
 Article 52 LBM 5  
 Article 53 LBM 5,7  
 Article 54 LBM 5  
 Article 55 LBM 6  
 Article 56 LBM 7   WT/ACC/SPEC/GEO/12 
 Page 67 
 
 
 TRIPS Part/Section Article Current Law OK Comments 
 Article 57 LBM 8  
 Article 58 LNR Permissive 
 Article 59 LBM 9  
 Article 60 LBM 10  
  Section 5:  Criminal 
Procedures Article 61 Old CrC 162, new CrC 194,201  
Part IV:  Acquisition 
Procedures Article 62 PL23-47,TL12-18,CC1024  
Part V:  Dispute Settlement Article 63 LNA 38, 61  
 Article 64 LNR   
Part VI:  Transitional 
Arrangements Article 65-
67 LNR   
Part VII:  Institutional 
Arrangements Article 68-
73 LNR WTO Institutional 
Arrangements 
   
LEGEND (KEY): APC Administrative Procedure Code  
 CC Civil Code  
 CL Copyright Law  
 CPC Civil Procedure Code  
 CrC Criminal Code  
 CrPC Criminal Procedure Code  
 LBM Law on Border Measures  
 LIC Law on Integrated Circuits  
 LGI Law on Appellations of Origin and 
Geographical Indications  
 LNA Law on Normative Acts  
 LNR Legislation Not Required  
 PL Patent Law  
 TL Trademarks Law  WT/ACC/SPEC/GEO/12 
Page 68  
 
 ANNEXES 
[to be completed]  WT/ACC/SPEC/GEO/12 
 Page 69 
 
 
  
ANNEX I  
Laws, Regulations and Other Information Pr ovided to the Working Party by Georgia  
- Draft Decree of the President of Georgia "On Foreign Trade Responsibilities with 
respect to the World Trade Organization"; 
- Tax Code of 13 June 1997, as amended to 8 June 1999; 
- Law on Promotion and Guarantees of Inv estment Activity of 12 November 1996, with 
amendment of 26 June 1998; 
- Law on Concessions of 21 December 1994; - Resolution of the Tbilisi Municipality City Board No. 07.03.45 of 29 September 1994 On 
Making Minor Corrections to the Tbilisi Munici pality City Board's Resolution No. 03.06 of 
24 April 1993 and Approving the Instruction for Fixing Rental Change For the Use of Land Plots in Tbilisi; 
- Law on Privatization of State-owned Pr operty of 30 May 1997, as amended to 
24 December 1998; 
- Law on Administration and Allocation of State- owned, Non-allocated, Non-Agricultural Land 
of 28 October 1998; 
- Law on Declaration of Private Ownership of Non-Agricultural Land in Possession of Physical 
Persons and Private Legal Pe rsons of 28 October 1998; 
- List of remaining non-privatized gove rnment owned firms as of May 1999; 
- Draft General Administrative Code of Georgia (May 1999); 
- Draft Code of Administrative Court Procedures of Georgia (May 1999); 
- Law on Entrepreneurs No. 577-16 of 28 Oct ober 1994, as amended to 19 February 1999; 
- Customs Code of Georgia of 14 Novemb er 1997, as amended to 13 October 1998; 
- Law on Customs Tariffs and Duty of 20 March 1998, as amended to 2 April 1999; 
- Law on Customs Fees of 18 February  1998, as amended to 28 May 1999; 
- Regulations Concerning Order of Determini ng the Customs Value of Goods Imported to 
Georgia, approved on 31 May 1999; 
- Regulations for Determining the Country of Or igin of Goods Imported to Georgia, approved 
on 31 May 1999; 
- Decree No. 391 of the President of Georgia "On Activities Addressing Regulation of 
Production, Import, Wholesale and Retail Trad e in Tobacco Products in Georgia", as 
amended to 7 June 1999; 
- Presidential Decree No. 322 of 23 June 1997 On the Regulation for Admission of Goods 
Received Through Grants at the Customs of Georgi a, Registration of Grants and Control Over 
Their Application, as amended by Presidential Decree of 28 October 1997; 
- Presidential Decree of 5 December 1998 "On Measures for the Implementation of 
Requirements of the Agreement on Technical Barriers to Trade of the WTO"; 
- Law on Establishing of the Unified Meteri ng System No. 374-IS of 6 September 1996; 
- Law on Standardization of 25 June 1999; - Law on Product and Service Certification of 6 September 1996, as amended to 30 April 1999; 
- Plan of the measures on the consecutive pla nning of the requirements of international 
standards, sanitary, veterinary, phytosanitary and ecological norms; 
- Decree of the Ministry of Agriculture and Food No. 2-166 of 19 June 1997 On Approval of 
the Regulation for Use of Paid Service Tari ff of the State Inspection of Phytosanitary 
Quarantine; 
- Law on Agricultural Quarantine of 15 May 1997; - Law on Government Procurement of 9 December 1998; 
- Civil Code of Georgia of 26 June 1997; 
- Law on Copyright and Neighbouring Rights of 22 June 1999; WT/ACC/SPEC/GEO/12 
Page 70  
 
 - Law on Trademarks of 5 February 1999; 
- Law on Appellations of Origin and Ge ographical Indications of 22 June 1999; 
- Law on Patents of Georgia of 5 February 1999; - Law on Layout Designs of Integrat ed Circuits of 22 June 1999; 
- Articles 194/201of the Draft Criminal Code of Georgia (May 1999); 
- Law on Intellectual Property Related Border Measures of   25 June 1999; 
- Law on Protection of Selected Ac hievements of 18 October 1996; 
- Law on Protection of Consumer Rights of 20 March 1996; - Law on Monopolistic Activities a nd Competition of 25 June 1996; 
- Law on Advertising of 18 February 1998; 
- Law on Audit of 7 February 1995,  as amended to 27 June 1997; 
- Law on the National Bank of Georgia of 23 June 1995, as amended to 13 October 1998; 
- Law on Activities of Commercial Banks of  23 February 1996, as amended to 
24 December 1998; 
- Law on Insurance of May 2, 1997, as amended to 30 October 1998; 
- Law on the Securities Market of 24 December 1998; 
- Free Trade Agreement between Geor gia and Armenia of 14 August 1995; 
- Free Trade Agreement between Geor gia and Azerbaijan of March 1996; 
- Free Trade Agreement between Georgia and th e Russian Federation of 3 February 1994; 
- Free Trade Agreement between Georgia and Ukraine of 4 June 1996; - Free Trade Agreement between Georgia and Uzbekistan of 4 September 1995; 
- Agreement on Establishment of the Inter-Sta te Euro-Asian Corporation of Coal and 
Metallurgy of 24 September 1993; 
- Agreement between the European Communities and the Republic of Georgia on Trade in 
Textile Products; 
- Law on Statistics of 12 November 1997; 
- Statistical data on foreign trade of Georgia by commodity groups (1996);  and 
- Statistical data on foreign trade of Georgia by HS (1996-1997).     WT/ACC/SPEC/GEO/12 
 Page 71 
 
 
  
 
APPENDIX 
ACCESSION OF GEORGIA 
Draft Decision  
 The General Council, 
 Having regard  to the results of the negotiations di rected towards the establishment of the 
terms of accession of the Republic of Georgia to  the Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol for the Accession of Georgia, 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Ge orgia may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol. WT/ACC/SPEC/GEO/12 
Page 72  
 
 PROTOCOL OF ACCESSION OF GEORGIA
 
TO THE MARRAKESH AGREEMENT ESTABLISHING THE   
WORLD TRADE ORGANIZATION  
Draft  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic of Georgia (hereinafter referred to as "Georgia"),  
 Taking note  of the Report of the Working Party on the Accession of Georgia to the WTO in 
document [WT/ACC/GEO/....] (hereinafter refe rred to as the "Working Party Report"), 
 Having regard  to the results of the negotiations on the accession of Georgia to the WTO, 
 Agree  as follows: 
Part I - General  
1. Upon entry into force of this Protocol, Ge orgia accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO. 
2. The WTO Agreement to which Georgia accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred 
to in paragraph [180] of the Working Party Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in the para graphs referred to in paragraph [180] of the 
Working Party Report, those obligations in the Multilateral Trade Agreemen ts annexed to the WTO 
Agreement that are to be implemented over a period of  time starting with the entry into force of that 
Agreement shall be implemented by Georgia as if it  had accepted that Agreement on the date of its 
entry into force. 
4. Georgia may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions.  WT/ACC/SPEC/GEO/12 
 Page 73 
 
 
 Part II - Schedules  
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as "GATS") relating to Georgia.  The staging of 
concessions and commitments listed in the Schedu les shall be implemented as specified in the 
relevant parts of the respective Schedules. 
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
Part III - Final Provisions  
7. This Protocol shall be open for acceptance, by signature or ot herwise, by Georgia until ......... 
8. This Protocol shall enter in to force on the thirtieth day following the day of its acceptance. 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Georgia. 
10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations. 
 Done at Geneva this ... day of  .... one thou sand nine hundred and ninety ….., in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages. WT/ACC/SPEC/GEO/12 
Page 74  
 
 ANNEX
 
SCHEDULE …. - GEORGIA  
 
Part I - Goods  
[WT/ACC/SPEC/GEO/12/Add.1] 
 
Part II - Services  
[WT/ACC/SPEC/GEO/12/Add.2] 
 
__________ 