Friday , September 29 2023

DCFTA: Tariffs

The EU and Georgia signed an Association Agreement on 27 June 2014. It has entered into force since 1 July 2016. The agreement introduces a preferential trade regime – the Deep and Comprehensive Free Trade Area (DCFTA). This regime increases market access between the EU and Georgia based on having better-matched regulations.

Trade in Goods

The Agreement regulates conditions and liberalization of customs fees for bilateral trade of products. As per the Agreement’s preliminary entry into force on September 1st, 2014, all customs duties for goods originating from Georgia being imported to the EU are eliminated.

The following arrangements apply for certain products exported from Georgia to the EU:

  • The EU “Entry Price” – Ad Valorem fee and– on 28 tariss lines (0.3% (9383) of the full tariff list) the European Union “Entry Price” will be in effect (fixed fee on imports). In such cases, when importing to the EU, if produce originating from Georgia carries a lower invoice price than the EU-enacted fixed fee, the importer will pay the difference between the fixed and the invoice prices; if the produce carries a matching or higher price than the EU-enacted fixed fee, the produce will be absolved of the “Entry Price” mechanism.
  • Anti-circumvention Mechanism – 277 tariff lines (3% of the full tariff list (nomenclature)) of agriculture and food processing products are subject to the anti-circumvention mechanism. The mechanism works the following way – during each calendar year, once the import of one or more products subject to the anti-circumvention mechanism reach 70% of the fixed threshold, the EU will notify Georgia about the exact volume of the imported products. Georgia may then present the EU with arguments (e.g. growth of production, harvest abundance, etc.) on the possible grounds for exceeding the import limit. In these cases Georgia will be able to proceed with importing products exceeding the quantity of the anti-circumvention mechanism within the EU custom duties.
  • The tariff quota (termination of custom duties within the limits of the fixed amount) applies only to garlic amounting to 220 tons. During each calendar year, import of garlic originating from Georgia into the EU will proceed sans custom duties.


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