Georgia will have a new customs code – what will be the changes to the law?
As of 2019, new customs laws will be introduced in Georgia.
According to the new customs code, operations related to the re-exportation of goods will be terminated and the process of re-exportation will simply be considered the same as the processing of goods. As stated by the Ministry of Finance, the provisions of re-exportation declarations and costs associated with it will no longer be necessary. The temporary storage of goods will be further simplified, as will the completion of free zone procedures.
Under the new customs code, the customs duty may be refunded or deducted. The importer will be fully refunded the customs duty on light vehicle and motorcycles, provided that they are exported within the proceeding 90 days. Accordingly, the customs duty paid in Georgia will not be reflected in the sales price of light vehicle and motorcycles, which will make it easier for the importer to sell them abroad.
According to the Ministry of Finance, on the basis of a notice by the declarer, it will be possible to calculate the customs tariff for the owner of the goods, based on the highest rate of the customs tariff of the declared goods, which will considerably reduce the expenses of the customs administration.
In addition, the new customs code provides businesses with the option, if they wish so, to calculate the customs duty of the processed goods based either on the rates of the processed goods or based on the rates of the raw materials.
With the new customs code, it is possible to carry out the customs clearance process by creating own record of data which establishes an automatic system of declaration in the customs clearance field and can reduce the administrative expenses of a customs filer.
The new customs law also introduces a new form of use of warranty.
In addition, all changes which have been provided through the reforms in the customs field so far will be maintained: the taxpayer’s unified card (tax and customs), the Uniform Treasury Code for tax /customs obligation, and the uniform system of complaints and tax agreement.