ent to lead the reform effort has met irregularly.
The principal recommendations for strengthening and improving the customs service include:
В· Implementation of the already approved customs reform program. This is a well developed and comprehensive program that can be implemented over time. It encompasses a number of the IMF and FIAS recommendations. One of the immediate tasks would be to assign priorities for implementation.
В· In light of the decision not to renew the ITS contract, it is necessary to immediately develop and implement a framework for carrying out efficient pre-shipment inspection services if it is to be continued after December 30, 2001. The SCD clearly lacks the capacity or the expertise to carry out this function independently.
В· Review of the existing regulations for the valuation of cargo and implementation of guidelines that are consistent with the provisions of GATT.
В· Revision of the declaration processing procedures to eliminate contact between the import (Or broker or freight forwarder) and the customs officer.
В· Expansion of the ASYCUDA system to all major customs clearance offices.
В· Implementation of risk-based criteria for selecting goods and documents to be examined at all locations where imported goods are cleared.
В· Implementation of an information publication and dissemination program.
Operating a Business - Licensing and Permits . The existing regime for licenses has benefited from extensive efforts to streamline and simplify the legal framework for licenses. As a result, the current licensing procedures do not appear to present significant barriers to investment and business activity in Georgia, particularly compared with other former Soviet Union countries. However, some of the sectoral licensing laws and regulations do not conform to the provisions of the framework Law on Licensing.
The Law on Local Charges and related normative acts (including municipal regulations) are not entirely clear in defining the purpose and scope of permits. The criteria and conditions for authorizing and terminating permits (similar to licensing conditions) are not clearly specified in the laws and regulations. In effect, the enforcement of the permit system is arbitrary and subject to abuse of the compliance provisions and the assessment of violations. While this permit regime does not generally impede business in Georgia, it does create unequal conditions for newcomers and arbitrary enforcement can cause significant problems for individual companies.
The main recommendations for strengthening the framework for the system of licensing and permits and facilitating the streamlining and simplification of the current system in Georgia include:
В· Passage and ad...
