(i) take the necessary measures to reflect and implement the provisions of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures of 1973;
(j) provide for advance binding rulings on tariff classification and rules of origin. The Parties ensure that a ruling may be revoked or annulled only after notification to the affected operator and without retroactive effect, unless the rulings have been made on the basis of incorrect or incomplete information;
(k) introduce and apply simplified procedures for authorised traders according to objective and non-discriminatory criteria;
(l) set rules that ensure that any penalties imposed for breaches of customs regulations or procedural requirements be proportionate and non-discriminatory and, that their application, does not result in unwarranted and unjustified delays; and
(m) apply transparent, non-discriminatory and proportionate rules where government agencies provide services also provided by the private sector.
2. In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:
(a) take further steps towards the reduction, the simplification and the standardisation of data and documentation required by customs and other relevant authorities;
(b) simplify requirements and formalities wherever possible, with respect to the rapid release and clearance of goods;
(c) provide effective, prompt and non-discriminatory procedures guaranteeing the right of appeal against customs and other relevant authoritiesâ administrative actions, rulings and decisions affecting the goods submitted to customs. Such procedures for appeal shall be easily accessible and any costs shall be reasonable and commensurate with the costs incurred by the authorities to ensure the right of appeal;
(d) take steps to ensure that where a disputed administrative action, ruling or decision is the subject of an appeal, goods should normally be released and duty payments may be left pending, subject to any safeguard measures judged necessary. Where required, the release of the goods should be subject to the provision of a guarantee, such as a surety or a deposit; and
(e) ensure that the highest standards of integrity be maintained, in particular at the border, through the application of measures reflecting the principles of the relevant international conventions and instruments in this field, in particular the WCO Revised Arusha Declaration of 2003, where appropriate.
3. The Parties agree to eliminate:
(a) any requirements for the mandatory use of customs brokers; and
(b) any requirements for the mandatory use of pre-shipment or destination inspections.
4. With regard to transit:
(a) for the purposes of this Agreement, the transit rules and definitions set out in the WTO provisions, in particular Article V of GATT 1994, and related provisions, including any clarifications and amendments resulting from the Doha Round negotiations on trade facilitation shall apply. Those provisions also apply when the transit of goods begins or ends in the territory of a Party;
(b) the Parties shall pursue the progressive interconnectivity of their respective customs transit systems, with a view to the future participation of Georgia in the common transit system (1);
(c) the Parties shall ensure cooperation and coordination between all relevant authorities in their territories to facilitate traffic in transit. Parties shall also promote cooperation between the authorities and the private sector in relation to transit.
Article 66. Relations with the Business Community
The Parties agree:
(a) to ensure that their respective legislation and procedures are transparent, publicly available, as far as possible through electronic means, and contain a justification for their adoption. There should be regular consultations and a reasonable time period between the publication of new or amended provisions and their entry into force;
(b) on the need for timely and regular consultations with trade representatives on legislative proposals and procedures related to customs and trade issues;
(c) to make publicly available relevant notices of administrative nature, including authority's requirements and entry or exit procedures, hours of operations and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries;
(d) to foster cooperation between operators and relevant administrations, using non-arbitrary and publicly accessible procedures based, inter alia, on those promulgated by the WCO; and
(e) to ensure that their respective customs and customs-related requirements and procedures continue to meet the legitimate needs of the trading community, follow best practices, and remain the least trade-restrictive possible.
Article 67. Fees and Charges
1. The Parties shall prohibit administrative fees having an equivalent effect to import or export duties or charges.
2. With regard to all fees and charges of whatever character imposed by the customs authorities of each Party, including fees and charges for tasks undertaken on behalf of the said authorities, upon or in connection with import or export and without prejudice to the relevant provisions of Chapter 1 (National Treatment and Market Access for Goods) of Title IV (Trade and Trade-related Matters) of this Agreement:
(a) fees and charges may only be imposed for services provided at the request of the declarant outside normal working conditions, hours of operation and in places other than those referred to in the customs regulations, as well as for any formality related to such services and required for undertaking such import or export;
(b) fees and charges shall not exceed the cost of the service provided; (c) fees and charges shall not be calculated on an ad valorem basis;
(d) the information on the fees and the charges shall be published via an officially designated medium, and where feasible and possible, an official website. This information shall include the reason for the fee or the charge for the service provided, the responsible authority, the fees and the charges that will be applied, and when and how payment is to be made; and
(e) new or amended fees and charges shall not be imposed until information on them is published and made readily available.
Article 68. Customs Valuation
1. The provisions of Agreement on the Implementation of Article VII of GATT 1994 contained in Annex 1A to the WTO Agreement, including any subsequent amendments, shall govern the customs valuation of goods in the trade between the Parties. Those provisions of the WTO Agreement are hereby incorporated into this Agreement and made part thereof. Minimum customs values shall not be used.
2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.
Article 69. Customs Cooperation
The Parties shall strengthen cooperation in the area of customs to ensure implementation of the objectives of this Chapter in order to further trade facilitation, while ensuring effective control, security and prevention of fraud.
In order to ensure compliance with the provisions of this Chapter the Parties shall, inter alia:
(a) exchange information concerning customs legislation and procedures;
(b) develop joint initiatives relating to import, export and transit procedures, as well as work towards ensuring that an effective service is provided to the business community;
(c) cooperate on the automation of customs and other trade procedures;
(d) exchange, where appropriate, information and data subject to respect of the confidentiality of sensitive data and the protection of personal data;
(e) cooperate in preventing and combating illicit cross-border traffic in goods, including in tobacco products;
(f) exchange information or enter into consultations with a view to establishing where possible, common positions in international organisations in the field of customs such as the WTO, the WCO, the UN, the United Nations Conference on Trade And Development (UNCTAD) and the UN-ECE;
(g) cooperate in the planning and delivery of technical assistance, notably to facilitate customs and trade facilitation reforms in accordance with the relevant provisions of this Agreement;
(h) exchange best practices in customs operations, in particular on risk based customs control systems and on intellectual property rights enforcement, especially in relation to counterfeited products;
(i) promote coordination between all border authorities of the Parties to facilitate border crossing process and enhance control, taking into account joint border controls, where feasible and appropriate; and
(j) establish, where relevant and appropriate, mutual recognition of trade partnership programmes and customs controls, including equivalent trade facilitation measures.
Article 70. Mutual Administrative Assistance In Customs Matters
Without prejudice to other forms of cooperation envisaged in this Agreement, in particular in Article 69 of this Agreement, the Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol II on Mutual Administrative Assistance in Customs Matters to this Agreement.
Article 71. Technical Assistance and Capacity Building
The Parties shall cooperate with a view to providing technical assistance and capacity building for the implementation of trade facilitation and customs reforms.
Article 72. Customs Sub-Committee
1. The Customs Sub-Committee is hereby established. It shall report to the Strategic Partnership and Cooperation Forum in Trade configuration, as set out in Article 354(3) of this Agreement.
2. The function of the Sub-Committee shall include regular consultations and monitoring of the implementation and the administration of this Chapter, including but not limited to the issues of customs cooperation, cross-border customs cooperation and management, technical assistance, rules of origin, trade facilitation, as well as mutual administrative assistance in customs matters.
3. The Customs Sub-Committee shall, inter alia:
(a) see to the proper functioning of this Chapter and of Protocols I and II to this Agreement;
(b) adopt practical arrangements, measures and decisions to implement this chapter and Protocols I and II to this Agreement, including on exchange of information and data, mutual recognition of customs controls and trade partnership programmes, and mutually agreed benefits;
(c) exchange views on any points of common interest, including future measures and the resources needed for their implementation and application;
(d) make recommendations where appropriate; and
(e) adopt its internal rules of procedure.
Chapter 6. Establishment, Trade In Services and Electronic Commerce
Section 1. General Provisions
Article 73. Objective, Scope and Coverage
1. The Parties, reaffirming their respective commitments under the WTO Agreement hereby lay down the necessary arrangements for the progressive reciprocal liberalisation of establishment and trade in services and for cooperation on electronic commerce.
2. Public procurement is covered in Chapter 8 (Public procurement) of Title IV (Trade and Trade-related Matters) of this Agreement and nothing in this Chapter shall be construed to impose any obligation with respect to public procurement.
3. Subsidies are covered in Chapter 10 (Competition) of Title IV (Trade and Trade-related Matters) of this Agreement and the provisions of this Chapter shall not apply to subsidies granted by the Parties.
4. Consistent with the provisions of this Chapter, each Party retains the right to regulate and to introduce new regulations to meet legitimate policy objectives.
5. This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of a Party, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis.
6. Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment in this Chapter and Annex XI to this Agreement (1).
Article 74. Definitions
For the purposes of this Chapter:
(a) "measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action or any other form;
(b) "measures adopted or maintained by a Party" means measures taken by:
(i) central, regional or local governments and authorities; and
(ii) non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;
(c) "natural person of a Party" means a national of the United Kingdom or a national of Georgia in accordance with the respective legislation;
(d) "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(e) "juridical person of a Party" means a juridical person as defined in point (d) and set up in accordance with the law of the United Kingdom or of Georgia respectively, and having its registered office, central administration, or principal place of business in the territory to which, and to the extent and under the conditions which, the EU-Georgia Association Agreement applied immediately before it ceased to apply to the United Kingdom in regards to the United Kingdom and the following territories for whose international relations it is responsible: (a) Gibraltar; (b) the Channel Islands and the Isle of Man (1), or in the territory of Georgia, respectively;
Should that juridical person have only its registered office or central administration in the territory to which, and to the extent and under the conditions which, the EU-Georgia Association Agreement applied immediately before it ceased to apply to the United Kingdom in regards to the United Kingdom and the following territories for whose international relations it is responsible: (a) Gibraltar; (b) the Channel Islands and the Isle of Man, or in the territory of Georgia respectively, it shall not be considered as a juridical person of the United Kingdom or a juridical person of Georgia respectively, unless its operations possess a real and continuous link with the economy of the United Kingdom or of Georgia, respectively;
Notwithstanding the preceding subparagraph, shipping companies established outside the United Kingdom or Georgia and controlled by nationals of the United Kingdom or of Georgia, respectively, shall also be beneficiaries under this Agreement, if their vessels are registered in accordance with their respective legislation, in the United Kingdom or in Georgia and fly the flag of the United Kingdom or of Georgia;
(f) "subsidiary" of a juridical person of a Party means a juridical person which is owned or effectively controlled by that juridical person (2)
(g) "branch" of a juridical person means a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management structure and is materially equipped to negotiate business with third parties so that the latter, although knowing that there will, if necessary, be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;
(h) "establishment" means:
(i) as regards juridical persons of the United Kingdom or of Georgia, the right to take up and pursue economic activities by means of setting up, including the acquisition of, a juridical person and/or create a branch or a representative office in Georgia or in the United Kingdom respectively;
(ii) as regards natural persons, the right of natural persons of the United Kingdom or of Georgia to take up and pursue economic activities as self-employed persons, and to set up undertakings, in particular companies, which they effectively control.
(i) "economic activities" shall include activities of an industrial, commercial and. professional character and activities of craftsmen and do not include activities performed in the exercise of governmental authority;
(j) "operations" shall mean the pursuit of economic activities;
(k) "services" includes any service in any sector except services supplied in the exercise of governmental authority;
(l) "services and other activities performed in the exercise of governmental authority" are services or activities which are performed neither on a commercial basis nor in competition with one or more economic operators;
(m) "cross-border supply of services" means the supply of a service:
(i) from the territory of a Party into the territory of the other Party (Mode 1), or
(ii) in the territory of a Party to the service consumer of the other Party (Mode 2);
(n) "service supplier" of a Party means any natural or juridical person of a Party that seeks to supply or supplies a service;
(o) "entrepreneur" means any natural or juridical person of a Party that seeks to perform or performs an economic activity through setting up an establishment.
Section 2. Establishment
Article 75. Scope
This Section applies to measures adopted or maintained by the Parties affecting establishment in all economic activities with the exception of:
(a) mining, manufacturing and processing (1) of nuclear materials;
(b) production of or trade in arms, munitions and war materiel;
(c) audio-visual services;
(d) national maritime cabotage (1), and
(e) domestic and international air transport services (2), whether scheduled or non-scheduled, and services directly related to the exercise of traffic rights, other than:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) the selling and marketing of air transport services;
(iii) computer reservation system (CRS) services;
(iv) ground-handling services;
(v) airport operation services.
Article 76. National Treatment and Most Favoured Nation Treatment
1. Subject to the reservations listed in Annex XI-E to this Agreement, Georgia shall grant, upon entry into force of this Agreement:
- as regards the establishment of subsidiaries, branches and representative offices of juridical persons of the United Kingdom: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better;
- as regards the operation of subsidiaries, branches and representative offices of juridical persons of the United Kingdom in Georgia, once established: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better (3).
2. Subject to reservations listed in Annex XI-A to this Agreement, the United Kingdom shall grant, upon entry into force of this Agreement:
i) as regards the establishment of subsidiaries, branches and representative offices of juridical persons of Georgia: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better;
ii) as regards the operation of subsidiaries, branches and representative offices of juridical persons of Georgia in the United Kingdom, once established: treatment no less favourable than that accorded to its own juridical persons, their branches and representative offices; or to subsidiaries, branches and representative offices of any third country's juridical persons, whichever is the better (1).
3. Subject to reservations listed in Annexes XI-A and XI-E to this Agreement, the Parties shall not adopt any new regulations or measures which introduce discrimination as regards the establishment of juridical persons of the United Kingdom or of Georgia on their territory or in respect of their operation, once established, by comparison with their own juridical persons.
Article 77. Review
1. With a view to progressively liberalising the establishment conditions, the Parties shall regularly review the provisions of this Section and the list of reservations referred to in Article 76 of this Agreement as well as the establishment environment, consistent with their commitments in international agreements.
2. In the context of the review referred to in paragraph 1, the Parties shall assess any obstacles to establishment that have been encountered. With a view to deepening the provisions of this Chapter, the Parties shall find, if need be, appropriate ways to address such obstacles, which could include further negotiations, including with respect to investment protection and to investor-to-state dispute settlement procedures.
Article 78. Other Agreements
This Chapter shall not affect the rights of entrepreneurs of the Parties arising from any existing or future international agreement relating to investment, to which the United Kingdom and Georgia are parties.
Article 79. Standard of Treatment for Branches and Representative Offices
1. The provisions of Article 76 of this Agreement do not preclude the application by a Party of particular rules concerning the establishment and operation in its territory of branches and representative offices of juridical persons of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches and representative offices as compared to branches and representative offices of juridical persons incorporated in its territory or, as regards financial services, for prudential reasons.
2. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.
Section 3. Cross-border Supply of Services
Article 80. Scope
This Section applies to measures of the Parties affecting the cross border supply of all services sectors with the exception of:
(a) audio-visual services;
(b) national maritime cabotage (1), and
(c) domestic and international air transport services (1), whether scheduled or non- scheduled, and services directly related to the exercise of traffic rights other than:
(i) aircraft repair and maintenance services during which an aircraft is withdrawn from service;
(ii) the selling and marketing of air transport services;
(iii) computer reservation system (CRS) services;
(iv) ground-handling services;
(v) airport operation services.
Article 81. Market Access
1. With respect to market access through the cross-border supply of services, each Party shall accord services and service suppliers of the other Party a treatment not less favourable than that provided for in the specific commitments contained in Annexes XI-B and XI-F to this Agreement.
2. In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt cither on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annexes XI-B and XI-F to this Agreement are defined as:
(a) limitations on the number of services suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;