October 8, 2009

Changes in application criteria to Gold List

On October 8, a follow up meeting was held with the head of revenue services of Georgia Mr. Giorgi Tskhakaia concerning the Gold List.

The Gold list program was implemented on January 15, 2009, but its rules and criteria appeared to be almost impossible for businesses to comply with.

After meetings and consultations with the business community, the government has decided to make changes to the legislation and alleviate the conditions, so many businesses become eligible.
The new rules will be implemented within days as informed by the Head of the Revenue Services.

Please find following the current criteria and changes according to the upcoming project:

                                   Current                        Project 
Along with the Application, the Applicant shall submit the financial guarantee securing the payment of customs duties (except for the subjects defined in Paragraph 2 of Article 4 of this Regulation). The guarantee amount shall be no less than 100, 000 EUR and shall be calculated with reference to the average monthly import duties (1/12) as starting from the previous year until the first day of the month in which the Application is filed. Importers of excisable goods are required to submit the financial guarantee in the amount not less than 500 000 EUR. Along with the Application, the Applicant shall submit the financial guarantee securing the payment of customs duties (except for the subjects defined in Paragraph 2 of Article 4 of this Regulation). The guarantee amount shall be– 0
Importers of excisable goods are required to submit the financial guarantee in the amount not less than 100, 000 EUR.
High customs value of imported goods, not less than 10.0 million GEL High customs value of imported goods, not less than 5,0 million GEL
High amount of import duties paid not less than 1.8 million GEL or a large number of import declarations filed, not less than 100 declarations.
High amount of import duties paid not less than 900 000 GEL or a large number of import declarations filed, not less than 100 declarations.
No criminal liability against the Applicant for the violations defined in Paragraph 2 of Article 242 and Article 248 of the Customs Code of Georgia. (When one calendar year passed from date the decision on the criminal liability for the above-mentioned customs violations had entered into force). No criminal liability against the Applicant for the violations defined in Paragraph 2 of Article 242 and Article 248 of the Customs Code of Georgia. (When 6 months passed from date the decision on the criminal liability for the above-mentioned customs violations had entered into force).

- Companies can still applie to the gold list even In case of ongoing court dispute or restructured loan.

- If the tax fine is under 10, 000 GEL the company is eligible to the list.
Towards the end of the meeting the issue an ICC member raised a question regarding the possibility of entitling subsidiary companies of a large Holding to join the Gold list; it was decided that the State Revenue Service will consider the matter and come with the right solution.