Customs classification and commodity coding are fundamental parts of foreign economic activity in Georgia. Any product crossing the Georgian border (import or export) is subject to classification according to the "National Commodity Nomenclature of Foreign Economic Activity" (NC FEA). This is the Georgian equivalent of the international Harmonized System (HS Code). Assigning the correct 11-digit code to goods determines the customs duty rate, import VAT, excise tax, and non-tariff restrictions (licenses, permits, certificates). Incorrect classification leads to serious financial penalties, detention of goods at the border, and potential charges of smuggling or tax evasion. Legal services in this area are critical for importers and exporters to avoid customs disputes and unnecessary costs.
What Does Customs Classification Service Cover?
Our customs law experts offer full support in the commodity coding process:
- Determination of Commodity Code: Establishing the correct NC FEA code for complex technical or chemical products based on technical datasheets and descriptions.
- Advance Ruling: Obtaining an "Advance Ruling on Commodity Classification" (Binding Tariff Information) from the Revenue Service, providing the importer with a legal guarantee for 3 years.
- Customs Disputes: Appealing reclassification decisions and imposed fines by customs authorities through mediation or in court.
- Expertise Management: Arranging product composition expertise at the Levan Samkharauli National Forensics Bureau to confirm the code.
- Analysis of Preferences: Consulting on the use of code-linked preferences (EUR.1 certificate of origin) under Free Trade Agreements (DCFTA, China, Turkey).
- Risk Assessment: Identifying potential risks (dual-use, phytosanitary control) based on the code before import.
Common Scenarios and Needs
The most common problem arises when a customs officer disagrees with the declarant's declared code and changes it to a code with a higher duty rate (e.g., from 0% to 12%). This often concerns multifunctional devices, "smart" appliances, or food supplements. Misunderstandings regarding the classification of parts are also frequent — whether a part counts as a separate commodity or as a component of the main machine. Businesses need justification that their interpretation is based on the WCO (World Customs Organization) Explanatory Notes.
Georgian Legislation and Regulations
The field is regulated by the "Customs Code of Georgia" and the Order of the Minister of Finance "On Approval of the National Commodity Nomenclature of Foreign Economic Activity". The classification principle is based on the International Convention on the Harmonized Commodity Description and Coding System. Disputes are reviewed by the Revenue Service Dispute Resolution Council and the courts.
The Process: How a Specialist Works
The lawyer and customs broker study the product's technical documentation, photos, and composition. A comparison is made with the Explanatory Notes of the Harmonized System. If the situation is contentious, an application for an advance ruling is prepared. In the case of an existing dispute, the lawyer prepares a complaint justifying the correctness of the code based on international practice and precedents.
Why Legal.ge?
Customs classification requires highly specific knowledge, where changing a single digit can save or cost thousands of Lari. Legal.ge gives you access to experienced customs lawyers who know the nuances of the system. Specialists on our platform will help you determine the correct code, protect your cargo from detention, and appeal baseless fines. Manage customs risks with professionals.
Updated: ...