The Association Agreement signed between Georgia and the European Union, which includes the Deep and Comprehensive Free Trade Area (DCFTA), opens unprecedented opportunities for Georgian businesses in the European market. Concluding trade agreements with EU countries requires specific knowledge, as not only standard contract law applies here, but also strict EU regulations (EU Directives), rules of origin, and quality standards. For Georgian companies exporting to Europe or importing goods, it is vital to draft contracts that are in full compliance with DCFTA requirements to benefit from zero customs tariffs and avoid barriers at the border.
When dealing with European partners, requirements regarding personal data protection (GDPR), environmental standards, and labor safety are common and must be reflected in the agreement. Any error in documentation (e.g., incorrect EUR.1 certificate of origin) can lead to the loss of tax benefits. Specialists registered on Legal.ge offer qualified services in drafting, reviewing, and adapting contracts with companies from EU member states, ensuring the smooth operation of your business in the European market.
What does the Georgia-EU Trade Contracts service cover?
- DCFTA Compliance Analysis: Checking the contract against free trade agreement conditions to guarantee eligibility for tariff benefits.
- Rules of Origin Clauses: Outlining obligations to provide documentation proving the origin of goods (EUR.1 certificate).
- Quality and Safety Standards: Embedding guarantees of compliance with EU directives (e.g., CE marking, food safety) into the contract.
- GDPR Clauses: If the agreement involves data exchange, integrating protection mechanisms compliant with the European General Data Protection Regulation (GDPR).
- Dispute Resolution and Governing Law: Selecting the optimal jurisdiction (e.g., German law or Stockholm arbitration).
- Incoterms and Logistics: Precisely defining delivery terms considering European transport regulations.
- Intellectual Property: Protecting geographical indications and trademarks within the EU territory.
Common scenarios requiring this service
The most common scenario is the export of Georgian agricultural products (hazelnuts, wine, fruits) to Germany or France. Here, the agreement must strictly outline laboratory testing procedures and conditions for returning products in case of quality non-compliance. A second scenario involves importing European machinery to Georgia, where detailing warranty service and installation terms is crucial. A third case is outsourcing IT services to a European client, where data protection and confidentiality come to the forefront.
Georgian Legal Framework
The legal basis relies on the EU-Georgia Association Agreement, ratified by the Parliament of Georgia. This international treaty takes precedence over domestic legislation. Customs and tax issues are regulated by the Customs Code of Georgia and the Tax Code, which are maximally harmonized with European legislation. Regarding product safety, the Code on Safety and Free Movement of Products applies. Also significant is the Law on Personal Data Protection, which echoes GDPR principles.
Step-by-step service process
Work begins with determining the product/service HS Code and checking the DCFTA regime. The lawyer prepares a draft agreement (often bilingual - English-Georgian), integrating requirements of European regulations. Special attention is paid to force majeure, limitation of liability, and dispute resolution clauses. After signing, the lawyer assists the company in correctly forming customs documentation (invoice, packing list, certificates).
Why choose a specialist on Legal.ge?
The EU market is highly regulated, and mistakes are costly. On Legal.ge, you will find lawyers with experience working with European companies who are familiar with both Georgian and European legal nuances. With their help, you can maximize the benefits of free trade and avoid legal barriers.
Updated: ...