SOME ASPECTS OF EXCELLENCE OF CUSTOMS POLICY OF GEORGIA

Abstract

Customs system and customs activity is an important economic mechanism for the county, which has to follow current modern global and integrative processes in the world. Customs politics based on the reasonable and scientific principles will give the chance to a government to develop priority fields, deepen political and economic relation with the foreign countries, and help social-economic development of the country. Lack of development of real sector in economic Georgia made as import-dependent country. In the whole unit of commercial circulation amount of import exceeds amount of export almost three time. Local market is full with imported products, which is the result that country depends on the import, but, it is possible to create safe economic conditions for the local producers. For that the country should actively use instruments of customs politics While working on above mentioned topic, studying the problem was implemented by using qualitative and quantitative methods. Research of inner information about the topic was fulfilled in the scope of qualitative research. During quantitative research was processed statistic data. Finally, based on the analysis of result corresponding reports were made. Tasks and forms of implementing customs politics, in many cases, harshly oppose each other. That is why, one of the main task is to balance the opposing principles, for this action it is important that customs politics should be flexible, changeable and compatible with current economic occurrence and processes. On modern stage main direction of Georgian customs politics are characterized as having low import tariffs, by being free from customs tax, having less amount of export and import licenses and by not having other quantitative restrictions. But it described as having important gaps in solving modern economic problems and resisting modern challenges. Unfortunately, real sector of economics in Georgia is not developed. According the existed tendencies main priority for the county’s development is tourism. The result is that absolute majority of the product what the population of the country uses, is imported. Given tendency of correlation between import and export results gives us a chance to say that during past years, Political measurements from the state can not reach the aim. Within other factors, given problem is mainly outlined by the level of technological development and innovation problems. Non-existence of subsidiary infrastructure for development export, causes lack of information about potential export markets and not-enough popularity is Georgian products. Except measures taken for stimulating export, state customs politics should be aimed to broaden country’s exporting markets, to diversify exporting countries and export products main part of the export products for today is raw materials, which has low supplemented cost, its export does not need to activate manufacturing processes and local workmen do not take part in this process. Hence it follows that all these positive economic effects which might follow product export from the country, in this case is on low level or does not exist at all. That is why, main factor of the customs politics should be to encourage export ready production and not raw materials. There is cause-effect relation between quality of development of real sector between export and import correlation. Lack of development of real economic sector significantly defines the quality of country’s import-dependence. In order to achieve desired correlation results between import and export for the country, it is important to reduce import index, as well as export index. For the development of real sector of economics it is crucially important to protect economic activities of local manufacturers from the competition with foreign production. The government has got its regulation mechanisms, by using these mechanisms it can achieve above mentioned aim. While implementing customs politics, the government has authority, foreseeing the given situation in the country, use different instruments of customs-tariff regulations, in order to get concrete desired results. For this result it is necessary to fulfill the obligations which the country has towards world trade organization. In order to be recognized Georgia as an equal partner, from the members of the partner countries of World Trade Organization, it is necessary to be legislative basis which will regulate and administrate customs rules and other similar business spheres. Such kind of specific obligations from Georgia were outlined while signing the treaty of partnership with World Trade Organization. It was mentioned not to implement the cases of protection, anti-dumping measures and compensation duties, before other corresponding regulations and legislative acts would be received in the country. One of the main challenge of customs politics for Georgia is to resist with the problems of local manufacturers and protecting domestic market. Finally, we can say that effectiveness of customs politics significantly defines stability of country’s economic development, mainly, stimulating to develop export and protecting domestic market. Accordingly, in this thesis there are reports and recommendations, which represent closing sentences based on the analysis of separate parts of the given work.