The Concept of Customs Representation and Its Legal Basis
Customs brokerage is an institution regulated by Articles 14 and 15 of the Customs Code of Georgia: a person has the right to conduct relations with the customs authority through a legal representative or an authorized representative. During transportation, declaration or other customs formalities, the figure of the declarant may thus be replaced by the figure of a representative, and the law regulates this substitution through a dedicated procedure.
A customs representative is defined as a person who, on the assignment of another person, performs in relations with the customs authority the actions and customs formalities provided for by Georgian customs legislation. In practice this institution forms the legal core of the customs broker's work: professional knowledge of customs procedures is applied in the client's name or on the client's assignment.
Legal and Authorized Representatives
The law distinguishes two grounds of representation. A legal representative of a physical person is a person who exercises the corresponding power on the basis of Georgian legislation; in that case every obligation and responsibility of the physical person provided for by the Code is imposed on the legal representative — a full transfer, not a sharing.
The institution of the authorized representative rests on the power of attorney. A person other than a physical person is represented by an authorized representative acting on the basis of a power of attorney issued by that person, while an authorized representative of a physical person acts on the basis of a power of attorney issued by that physical person and confirmed by notarial procedure. The notarial form is mandatory here with respect to physical persons, creating for the customs authority a guarantee of the reliability of the authority.
Direct and Indirect Representatives
The representative is of two kinds. A direct representative acts in the name of another person and on that person's assignment — before the customs authority the client appears in person, and the broker acts in the client's name. An indirect representative acts in its own name but on the assignment of another person — outwardly the customs authority deals with the broker, although the economic interest belongs to the principal.
This distinction is also decisive for the distribution of responsibility: in performing a customs formality an indirect representative bears the same responsibility as would be borne by the person giving the corresponding assignment. A territorial requirement deserves separate note: the representative must be a person established in Georgia, although this is not mandatory for representation connected with the procedures of transit or temporary import.
Declaring Representation and Presenting the Document
Article 15 regulates the procedural side of the relationship. In dealing with the customs authority the representative must declare that it acts on the assignment of another person and indicate whether it is a direct or an indirect representative. If a person does not declare that it acts as a representative, or declares it without the corresponding authority, it is deemed to act in its own name — a presumption that is a real source of risk for the broker, since all consequences pass to it.
The customs authority may request from the representative a document confirming the authority. Where the representative of one and the same person regularly performs customs formalities connected with that person, the customs authority should not request the confirming document in every specific case, yet upon request the representative is obliged to present it. The procedure and conditions for confirming authority in the customs authority, the list of documents to be submitted, and the cases where confirmation is not mandatory are determined by an order of the Minister of Finance of Georgia.
Frequently Asked Questions About Customs Brokerage
Who can be a customs representative?
A person who, on the assignment of another person, performs in relations with the customs authority the actions and formalities provided for by customs legislation. The representative must be established in Georgia, except for transit and temporary import procedures.
What is the difference between a direct and an indirect representative?
A direct representative acts in another person's name and on that person's assignment; an indirect one acts in its own name but on another's assignment, bearing the same responsibility as would be borne by the principal.
What requirements apply to the power of attorney?
An authorized representative of a physical person acts on a power of attorney issued by that person and confirmed by notarial procedure; for other persons a power of attorney issued by the person suffices.
When is confirmation of authority not mandatory?
In regular representation the customs authority does not request the document in every case, but the representative must present it upon request; the detailed confirmation procedure is determined by an order of the Minister of Finance.
How We Help on Legal.ge
We help importers, exporters and carriers put customs representation in legal order: we prepare powers of attorney and assess their form, weigh the consequences of direct versus indirect representation, and analyse compliance with the rules for confirming authority. Contact us — customs formalities begin with properly arranged representation.