Free Industrial Zone in Poti

FROM THE REDACTION

Georgian Parliament has adopted the law about Free Industrial Zones to develop existing Poti Port and an area adjacent to the port for creation of the Free Industrial Zone, making it one of the leading space for making business.

Skeptics said that because of the different tax system every Georgian company would have desire to go on their business in the Poti Free Industrial Zone, but there is the 9-th paragraph sub-par 2-nd where is written the following: Profit Tax exemptions for enterprises defined as Foreign Enterprises by the Customs Code of Georgia and registered in the Free Industrial Zones.
An adjacent area to the port (at least 400ha), along the Black Sea, is proposed for a Free Economic Zone development.

Legal Framework
A newly enacted Law of Georgia on Free Industrial Zones provides:
– Profit Tax exemptions for enterprises defined as Foreign Enterprises by the Customs Code of Georgia and registered in the Free Industrial Zones
– Imported goods into the FIZ are exempt from VAT payment,
– Transactions and operations carried out in the FIZ are exempt from VAT payment.
– Property Tax exemption for the Free Industrial Zone enterprises.
– Import of foreign goods into the FIZ is exempt from Customs Tax.
– Goods manufactured in the FIZ and exported to the territory of Georgia is exempt from Customs Tax.
– Employees of Free Industrial Zone Enterprises pay Income Tax through declaring their tax statements.

11 companies submitted announcement on concession of Poti Sea Port, concession is intended to be granted for 49 years.
1.Rak Investment Authority (United Arab Emirates),
2.Zim Ports (Israel),
3.International Container Terminal Services incorporated (ICTSI) (Philippines),
4.DP and Jafza; (United Arab Emirates),
5.Hutchison Westports; (UK),
6.Hazer international holding ;(Turkey),
7.Consortium created under coordination of Turkish exporters’ union ;( Turkey),
8.Ashtrom international Silk Road Group (Israel),
9. CMA CGM (France),
10.Land Mark Worldwide (Korea) and
11.Hamburger hafen-Und Logistic Aktiengesellschaft (Germany).
Each company will be learnt and the decision will be taken calmly said officials from the Ministry of Economic Development of Georgia. It must be mentioned that their sympathies are to United Arab Emirates because of their big experience in this business.
In compliance with the competition conditions the investor is proposed to develop essential Free Industrial Zone infrastructure, construct necessary facilities, establish relevant procedures and rules and manage the Zone during the concession term in accordance with Georgian laws, as well as to promote investments therein from global companies, thus, creating potential for an increased flow of cargo through the port. Poti Port has potential to serve 25 mln tones of load per year. Providing or trading by armament is forbidden in the zone, the same concerns to nuclear, radioactive substances as well as to narcotic and psychotropic means.