Duty-free opportunity on Georgia-Turkey border

The Georgia Revenue Service (Tax and Customs Administration-SPS Border Control Agency) has issued an “e-auction” for a 10-year lease of a state-owned building in Kartsakhi — on the border between Georgia and the Republic of Turkey — to be used for a new duty-free shop. DFNI reports.

With Georgia serving as an entry to the Caucasus and Central Asia, the country’s government has been actively engaging with its neighboring countries to revive the old Silk Road connecting Europe and Asia by modernising its customs crossing points (CCP) as well as building new ones.

The Georgia Revenue Service is in the process of opening a new land customs crossing point (CCP) on the Kartsakhi border — named  Cildir/Aktas on the Turkish side — as part of plans to open a number of new CCPs during 2015 and beginning of 2016. “These developments have caused increase in passenger and transport movements from 10 – 15 times during last 10 years, and even greater increase is anticipated. As a result, around 80% of all types of overland international freight throughout are transits,” stated the Revenue Service.

The new CCP will be fully functional, equipped with all the necessary technical and customs control tools, modern infrastructure, separate lanes for transport means, and will include a 355.92sq m duty-free.

The two-storey building has 183.55sq m on the first floor and 172.37sq m on the second floor.

The winner of the auction will be tasked with renovating the building and opening a functioning duty-free store no later than May 31, 2015.
The winner of the bid must provide the Georgia Revenue Service a bank guarantee of GEL30 000 by April 15, 2015.

There are currently eight CCPs in Georgia with the four neighboring countries and three CCPs at three international airports where 13 duty-free shops are operated by nine duty-free operators, and another five internal duty-free shops.

Border duty-free stores are operated in: Sarpi and Vale on the border with Turkey; in Kazbegi on the border with the Russian Federation;  in Tsiteli Khidi on the border with the Republic of Azerbaijan and in Sadakhlo on the border with the Republic of Armenia.

Turkish duty-free operator ATU Duty Free operates four stores in three international airports in Georgia at Tbilisi (occupying 574 and 314 sq.m), Kutaisi (248 sq.m) and Batumi (183 sq.m).