In 2023, Georgia imported $1.14 billion of passenger cars under HS code 8703, a 12 % increase from $1.02 billion in 2022, according to UN Comtrade data.
The average CIF import price rose to $8,750 per vehicle per IndexBox. With liberal age limits up to 10 years old, duty-friendly rate structures, and high consumer demand for well-maintained imports, Georgia presents lucrative margins for U.S. exporters who master local regulations, cost calculations, and efficient logistics.
Key Takeaways
- Market Growth: Georgia’s car-import value climbed 12 % to $1.14 billion in 2023
- Unit Economics: Average CIF price of $8 750 per vehicle
- Documentation: Requires Commercial Invoice, Customs Declaration, Bill of Lading, Conformity and Insurance Certificates
- Duties and Taxes: 12 % import duty, 18 % VAT, plus engine-size excise
- Cost Modeling: Build precise landed-cost frameworks to preserve 10–15 % margins
- Sourcing: U.S. auctions provide nationwide supply, transparent grading, and on-site title verification
Understanding the Georgian Market
Georgia’s economy has rebounded strongly since 2020, with GDP growth fueling personal incomes and vehicle purchases. Between 2022 and 2023, import values jumped despite global supply-chain constraints, reflecting pent-up demand for late-model cars.
- Consumer Preferences: Sedans and crossovers dominate, but luxury SUVs and small pickups enjoy niche appeal among rural and diaspora buyers
- Age Flexibility: Policy permits imports up to 10 years old, capturing value-conscious segments without prohibitive restrictions
- Regional Trade: Georgia serves as a transshipment hub for neighboring Armenia and Azerbaijan, boosting volumes via Batumi Sea Port
- Currency and Finance: The Georgian lari trades stably against the USD, enabling predictable cost planning for exporters
| Year | Import Value (USD B) | % Change vs Prior Year |
| 2022 | 1.02 | — |
| 2023 | 1.14 | +12 % |
| Metric | Figure |
| Avg. CIF Price per Vehicle | $8 750 per unit |
Regulations and Compliance
Exporters must navigate Georgia’s customs and technical-standard regime under HS 8703:
- Commercial Invoice: Specifies seller, buyer, vehicle details, and net sale price for customs valuation
- Customs Declaration: Electronically filed via Georgia’s e-declaration portal; triggers levy calculation under the Revenue Service
- Bill of Lading: Confirms vessel name, voyage, and cargo particulars for port release
- Certificate of Conformity: Issued under Georgia’s alignment with EU standards; verifies safety and emissions compliance
- Insurance Certificate: Proof of coverage during import-transit and inland delivery for customs acceptance
Failure to present any document results in shipment holds, demurrage fees, and penalties.
Tariffs and Taxes
Georgia applies transparent, tiered levies to fine-tune its automotive market:
| Levy | Rate | Base |
| Import Duty | 12 % | CIF |
| VAT | 18 % | CIF + Import Duty |
| Excise Tax | Variable ($50–$250/L) | Engine displacement per liter |
The excise schedule, pegged to engine size, incentivizes lower-displacement models. Combine these levies into your landed-cost calculation to prevent margin erosion.
Crafting Your Landed-Cost Model
Layer each cost component systematically:
- CIF Base: FOB U.S. port price plus ocean freight and marine insurance
- Import Duty (12 %): Multiply CIF by 0.12
- VAT (18 %): Apply 0.18 to the sum of CIF plus duty
- Excise Tax: Calculate per engine-displacement rate (often $50–$250 per liter)
- Local Handling and Delivery: Estimate inland logistics from Batumi or Tbilisi Dry Port to final buyer
Aim for at least 10–15 % markup atop total landed cost to absorb currency fluctuations, brokerage fees, and unexpected delays.
Main Shipping Gateways
Georgia’s strategic Black Sea access and rail links support dual-modal delivery:
- Batumi Sea Port: Primary maritime entry with Ro-Ro and container services to Europe and Central Asia
- Tbilisi Dry Port: Inland hub on the Baku–Tbilisi–Kars railway for swift overland routes to Armenia and Turkey
Collaborate with regional freight forwarders to optimize door-to-door timelines and rates between these nodes.
Common Pitfalls to Avoid
- Miscalculating Excise Rates: Always confirm the current per-liter engine tariff
- Skipping Digital Declarations: Georgia’s e-customs portal requires prior setup to avoid delays
- Incomplete Conformity Checks: Ensure vehicles meet EU-aligned standards before shipment
- Ignoring Insurance Confirmation: Customs will hold cargo without valid insurance documents
Why Auctions Are a Smart Choice for Car Purchases
Auctions can be an excellent source for late-model vehicles with clear chains of title and affordable pricing. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.
- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.
- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.
- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
| Feature | Description |
| Inventory Variety | Wide range of cars, trucks, and SUVs available |
| Competitive Pricing | Below-market pricing allows for higher profit margins |
| Vehicle History Reports | Detailed history reports for every vehicle |
| Online Bidding | Convenient online bidding options for dealers |
| Financing Options | Financing available to help with inventory purchases |
Conclusion
Georgia’s growing car-import market, with its 10-year age allowance and duty-friendly regime, offers compelling margins for exporters who meticulously manage costs and compliance.
Leveraging U.S. auctions like Twin Cities Auctions further enhances supply reliability and documentation clarity, laying the foundation for scalable, low-risk export success.
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FAQ
What are Georgia’s auto import duties?
Import Duty is 12 % of CIF; VAT is 18 % of CIF plus duty; Excise depends on engine displacement.
Can I export used cars to Georgia?
Yes; vehicles up to 10 years old qualify, provided they meet conformity and insurance requirements.
How long does clearance take?
Customs release typically occurs within 1–3 business days after all compliant documents are submitted.
Are there vehicle age restrictions?
Imports older than 10 years are prohibited under Georgia’s regulations.
How do I handle rejected shipments?
Work with your customs broker to rectify non-compliance; set aside contingency funds for demurrage fees.