Business Corruption

According to Global Integrity 2008, corruption in customs administration is still a problem, although a diminishing one. According to the World Bank & IFC Enterprise Surveys 2008, a significant percentage of companies report that they expect to give gifts in order to secure an import licence. The US Chamber of Commerce Investment Climate, Transport & Trade Facilitation 2008, also illustrates that nearly two out of five companies surveyed indicate that unofficial ‘taxes’ or bribes are needed in order to clear customs.

On the other hand, the surveyed business executives from World Economic Forum Global Enabling Trade Report 2010 rate the transparency of the border administration, as relatively high, constituting a competitive advantage for the country.

Political Corruption

High-level embezzlement and fraud is allegedly still taking place in relation to the customs department. According to a 2005 news article by Civil Georgia, a Member of Parliament was suspected of illegal business dealings involving conflict of interest and corruption. He was accused of holding shares in a privately-owned customs terminal. Furthermore the terminal was located near a well-functioning state-owned terminal, which went bankrupt shortly afterwards. The bankruptcy is suspected to have been orchestrated by high-level officials with private interests in customs terminals.

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 4 documents, takes 10 days and costs USD 1,329 per container.

- A standard import shipment of goods requires 4 documents, takes 13 days and costs USD 1,316 per container.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the efficiency of customs administration (burden of customs procedures) in Georgia a score of 4.6 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 4.9 on a 7-point scale (1 'not transparent' and 7 'transparent').

Transparency International: Global Corruption Barometer 2010:
- Nearly 89% of households who had contact with the customs administration throughout 2009 reported that they have not paid a bribe, while the rest preferred not to answer.

US Chamber of Commerce: Investment Climate, Transport & Trade Facilitation 2008:
- Little less than 40% of companies indicate that unofficial 'taxes' or bribes are required to clear customs; the remainder indicates the opposite.

- Nearly 20% of companies indicate that the level of corruption in customs is high/very high.

The World Bank & IFC: Enterprise Surveys 2008:
- 12% of the trade companies surveyed identify Georgian customs and trade regulations as a major constraint on doing business.

- Nearly 43% of companies expect to give gifts to obtain an import licence.

EBRD & World Bank: BEEPS Georgia 2008:
- 10% of the companies surveyed report that bribery frequently takes place in customs.

- 10% of the companies surveyed identify customs and trade regulations as a 'major problem' to doing business in Georgia, while 3% identify it as a 'very severe problem'.