For manufacturing and project-based businesses in Georgia, paying 18% VAT and customs duties on goods that will eventually leave the country is a significant and unnecessary financial burden. Legal Sandbox Georgia specializes in structuring your supply chain to utilize the "Inward Processing" (IM-51) and "Temporary Admission" (IM-53) customs procedures. These special regimes, defined under the Customs Code of Georgia, allow for the import of raw materials, machinery, or equipment with a complete suspension of import taxes, provided the goods are processed and re-exported or used temporarily for a specific project. This legal mechanism transforms Georgia into a tax-efficient production and logistical hub for your international operations.
Our legal team manages the complex authorization process required to operate under the Inward Processing procedure. This is critical for manufacturers (e.g., textile, agriculture, assembly) who import components to create finished goods for export. We petition the Revenue Service to approve the operation, where we must accurately calculate and legally defend the "rate of yield"—the precise amount of raw material required to produce a unit of finished product. We draft the necessary technological and economic justifications to prove that the processing will occur in compliance with the law. By securing this permit, you avoid paying taxes on inputs, paying only for the value added in Georgia if the goods remain, or paying nothing if they are successfully re-exported.
For foreign contractors, film crews, or construction companies, we arrange the "Temporary Admission" of professional equipment and machinery. Instead of paying full import duties on expensive assets like cranes, drilling rigs, or camera equipment that will only be in Georgia for a limited time, we obtain authorization for their temporary stay. We handle the calculation and provision of the necessary bank guarantees to the customs authority and ensure strict compliance with the "period of discharge." Our oversight prevents the severe penalties associated with missing re-export deadlines or unauthorized use of the equipment, ensuring your temporary operations remain fiscally efficient and legally secure.
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