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Georgian Exporters not Have to Pay “Entrance Fee” in the EU

The Association Agreement between Georgia and the EU provides for the introduction of free trade and the removal of tariffs on exports, but at the same time envisages  a fee that has not been canceled – it is known as the “entrance fee”, and implies a ban on exports of goods to the EU at a price below a defined quantity.

In particular, if the value of goods exported from Georgia to the EU is  lower than quarter  for the same products in the EU, the exporter will have to pay the difference between the estimated and quotation.

The entry fee covers 28 types of products – including 8 varieties of grape juice, tomatoes, cucumbers, artichokes, courgettes, citrus, and 9 kinds of fruit.

The entrance fee is calculated according to the seasons – in particular, from 1 June to 30 September value of 100 kg of  tomatoes in the EU must be at least 52. 6 euros. If an exporter company brings tomatoes at a price of 51,5 euros per 100 kg, it will have to pay 1 euro per 100 kg at the customs. The lower the price of the exporter – the more he will have to pay for the “entrance”.

However, the Chairman of the Parliamentary Committee on Agrarian Policy Gigla Agulashvili believes that  this rule doesn’t pose problems to Georgian exporters.
“Production of agricultural products in the EU costs cheaper than in Georgia, so this provision does not pose any threat to our entrepreneurs – in any case they will not be able to export their products to the EU at below market price. In Europe, farmers much better use land resources and modern technology, respectively, their yield is much higher than ours. On this basis, our exporters will not have to pay for the “entry ” into the market, “- the MP notes.