Businessmen are complaining about own problems and are trying to make stronger its positions. International Investor's Association made an official statement for Finance Minister about problems in private sector and asked government about annulment of bank guaranties. In the private sector complains are about bank guaranties, customs papers difficulty, determination of codes for goods and the measures for fines. Giorgi Pertaia, Private sector Assistance group's head said the problems are indeed in this area. He agreed with the demands of businessmen operating in private sector. Nevertheless the annulment of bank guaranties is risky.
According to the existing legislation it is necessary to present the bank guaranties when the goods are entering the Customs regime for processing. In the International Investor's Association they declared that from the summer of 2010 the Incomes Service is demanding new bank guaranties for every new declaration.
"In some cases it is impossible to determine the exact day of receiving the goods (over ships or vehicles), moreover if a client is a big company. Often the day of receiving goods may coincide with Saturday or Sunday when bank are idle. Consequently it is impossible to take a bank guaranties. In case of shipment of the goods according to the legislation the time limit is determined for the customs papers and for the reloading of the goods. Without bank guaranties the customs clearance is not possible this in turn obstruct other processes, "- GHN was told in International Investor's Association. They said in the Private Business Assistance group that for having the bank guaranties the businessman are freed form the customs taxes. The bank guaranties are for the goods to be used in manufacturing or for other means but not for direct sale. However the complicated procedures may cause looses for business invoking additional expenses. Giorgi Pertaia, Head of Assistance Group promised to listen to complains of private sector businessmen and to take them into consideration if possible.
"3-4 years ago it was even impossible to imagine the abolition of bank guaranties. Now the administration is of the higher level and the risks are minimized. I believe that we have a loop hole in this respect, and we can reach some consensus to satisfy both sides, "- Pertaia said to GHN.
The Incomes and Revenue service is ready to work under the question. Now it has different approach to the question. Now everything will be done for the simplicity of business operation. Most likely the guaranties will not be annulled totally but they will be replaced by the common guaranty. The Incomes Service will watch the process and after this the talks may began about guaranties annulment, "- Pertaia said. He noted that everything will be done for the simplification of the procedures but not at the expense of risk increasing. In connection with the bank guaranties the commercial banks are as well making troubles. In this respect the regional offices of Banks having to right for guaranties issue. Only main offices are involved. The local branch of the bank in such case makes enquiry to the central bank. All procedures for getting the bank guaranty take a considerable time. One part of the experts are considering that the issue of the bank guaranties must be possible at the regional level as well. Expert in Economics Irakli Leqvinadze said business demands are fair and they need appropriate measures taken from the government.
The Customs strategy must be directed to the maximal simplification of the customs procedures, this will be reflected on the price for the production it will be deceased. The entrepreneurs must have comfortable services this needs deciding of many specific questions. As well it is necessary to abolish facts of unfair fine of entrepreneurs. Often they are not informed about sanctions against them and they are fined not knowing that committed a violation of the law. Despite of the reforms in the Customs sphere and many procedures simplification, still many questions are specific to resolve. This makes uncomfortable situation for the entrepreneurs. It is very important to listen to the needs of importers and exporters and its consideration, as well more effective resolution of the problems of exporters and importers, " - Iralki Leqvinidze, expert in Economics said.
. Davit Narimania, Director of the Caucasian Institute of Economic and Social research discussing the problem said the customs guaranties entered into force since 2007 when the new Tax Code was passed. The business at that time expressed its dissatisfaction with the high volume of papers for the bank guaranties. Now the problem is in balancing of the financial risks and from the other side the increasing of the prices for the production that costs much for entrepreneurs to produce in such hard circumstances. In the conditions of new administration the financial risks are much lower, and government have to sacrifice the bank guaranties necessity. He said the problems must be discussed with Business Ombudsman with participation of independent experts, and the Finance Ministry has to identify the risks that might be faced.
GHN
Maya Arabidze
