Compliance with international economic sanctions in Georgia operates within a distinct legal framework: Georgia's participation in international economic sanctions directed against one or more countries is determined by Georgian legislation or is based on a decision of the United Nations or another international organisation. For an exporter, importer or transit operator this means that sanctions compliance is not merely a matter of international politics — it is a system of obligations established by Georgian law, the breach of which entails administrative and criminal liability.
How Sanctions Are Imposed
The law is unequivocal: Georgia cannot unilaterally impose international economic sanctions — their foundation is legislation or the decision of an international organisation. Where Georgia does impose international economic sanctions, the procedure for compensating damage is determined by Georgian legislation. The working group of the governmental commission working on compliance with United Nations Security Council resolutions is authorised to impose prohibitions, including on the export, import and transit of products. The implementation of such prohibitions is mandatory for the administrative organs that receive the relevant assignment. For business, this means that planning a specific transaction requires checking whether a prohibition imposed by the working group extends to it.
Impact on Permits
Sanctions-related circumstances directly affect permits. The permit issuer may refuse to issue a permit, suspend an issued permit or annul it — declaring it void, non-existent or expired — in the cases provided for by the Georgian Law on Licences and Permits, on the basis established by a normative act provided for by the law, and also in the state interest or where an embargo or state sanction has been imposed against a specific country. The authority of the Revenue Service deserves separate mention: it may suspend the export, import or transit of products where new circumstances have arisen or been discovered that require study by a competent organ and that could not have been foreseen when the permit was issued. In such a case the file is sent to the corresponding competent organ for reconsideration.
Control and Submission of Information
For the purpose of exercising control, permit issuers are authorised to demand from the permit holder the submission of information or documents related to the permitted activity, and the holder submits the information or documents within a reasonable time. It is equally important that information obtained about a permit seeker or holder in the control process is used only for the purposes of the law — this limits the ways in which data collected by controlling organs may be used and creates a certain discipline on their side as well.
Export Permits and Liability
The export of products determined by control lists is carried out on the basis of an export permit issued in accordance with Georgian legislation — the central rule of the practical mechanism of sanctions compliance. The consequences of a breach are likewise defined by law: violation of the permit conditions entails a fine imposed in the manner established by the Georgian Law on Licences and Permits, while criminal liability for violating the law is determined by the Criminal Code of Georgia. A breach of the sanctions regime may therefore end both in a fine and in criminal prosecution.
Frequently Asked Questions
Sanctions compliance questions are usually practical for business: when a permit is suspended, who stands behind the prohibitions and what a breach leads to. Short answers on these topics are collected below.
May Georgia impose sanctions unilaterally?
No. Georgia's participation in international economic sanctions is determined by legislation or based on a decision of the United Nations or another international organisation; unilateral imposition is not permitted.
Who decides prohibitions on the export, import and transit of products?
The working group of the governmental commission working on compliance with United Nations Security Council resolutions. The prohibitions it imposes are mandatory for the administrative organs concerned.
When may a permit be suspended or annulled?
In the cases provided for by the Law on Licences and Permits, on the basis established by a normative act, in the state interest, or where an embargo or state sanction has been imposed against a specific country.
What liability follows a breach?
Violation of permit conditions entails a fine in the manner established by the Law on Licences and Permits, and criminal liability is determined by the Criminal Code of Georgia.
The enforcement of a sanctions regime rests on several instruments: the working group of the governmental commission on compliance with UN Security Council resolutions may impose prohibitions on the export, import and transit of products; the permit issuer may refuse, suspend or cancel a permit where an embargo or state sanction has been imposed; and the Revenue Service, on discovering new circumstances, suspends export, import or transit and remits the case to the competent organ.
May Georgia impose sanctions unilaterally?
No — participation in international economic sanctions is determined by legislation or rests on a decision of the UN or another international organisation; unilateral imposition is excluded.
How We Help on Legal.ge
The Legal.ge team checks the sanctions risks of transactions: we analyse the connection of products with control lists, the status of permits and the applicable prohibitions. Get qualified assistance with compliance checks and with working on administrative disputes on Legal.ge.