Vehicle import costs surge in more than 6 years: Georgia's new regulations reshape the Caucasus car trade route

Georgia originally planned to ban the import of passenger cars more than 6 years old starting in 2026, but the ban was not implemented in the end and replaced it with a more influential new tax system...

Georgia originally planned to ban the import of passenger cars more than six years old starting in 2026, but the ban was not implemented in the end and replaced it with a more influential new tax system. According to Law No. 1477-VMS-XIMP passed by the Georgian Parliament, starting from April 2, 2026, passenger cars over 6 years old will face a significant increase in Excise Tax, and relevant policies have officially taken effect.

According to local media and industry channels, the new policy is based on the age of the vehicle in the year it is declared at customs. Passenger cars less than 6 years old will be subject to a consumption tax of 1.5 lari per cubic centimeter of displacement; vehicles more than 6 years old will be increased to 4.5 lari per cubic centimeter. The right-hand steering vehicle tax rate has been further increased to three times the corresponding standard, while pure electric vehicles continue to enjoy exemption from displacement consumption tax.

This means that the trade cost of old cars that used to rely on Georgia for import or transit has been significantly increased. Based on the case announced by the local government, the consumption tax on a 1.5L model with a displacement of more than 6 years old will be increased from the original 1200 lari to 6750 lari; the 2.0L model will be increased from 1600 lari to 8000 lari; the 2.5L model will be increased from 2000 lari to 11250 lari. More importantly, this is only part of the consumption tax. A 5% tariff and 18% value-added tax still need to be superimposed when importing vehicles.

Judging from the market reaction, the first people most affected are local Georgian consumers. In the past, many European and American used cars 7 to 10 years old could complete customs clearance and be registered and licensed in Georgia at relatively low cost. Today, the tax structure has undergone significant changes. It is generally expected in the industry that local buyers will turn more to 0-to 6-year-old vehicles, low-displacement models, and hybrid and pure electric products in the future.

However, for many China used car exporters, what deserves more attention is Georgia's role as a "transit station" in regional automobile trade. The port of Poti has long been an important route for vehicles to enter Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan. After this policy adjustment, the key to the impact is not just "whether it can be imported", but "whether vehicles enter the Georgian customs system."

According to current regulations, if a vehicle is directly transferred to a third country by Transit, or stays in the Poti Free Industrial Zone and then exported to markets such as Armenia and Azerbaijan, the above-mentioned Georgian consumption tax is not required. In other words, Georgia targets vehicles entering its own market, not goods in normal transit.

However, if the vehicle completes Georgian import customs clearance after unloading at the Port of Poti and is then resold to other countries, the new consumption tax will take effect directly. For vehicles older than 6 years old, each vehicle can add thousands of lari in additional costs. This also means that the "customs clearance first, then re-shipment" model used by some traders in the past may lose its cost advantage in the future, and more companies will tend to maintain the transit status of goods directly to the final destination country.

It is worth noting that the new policy also sets transitional provisions. For vehicles that are already in transit before April 2, 2026 and can provide supporting documents such as bills of lading and CMR transport documents, the old tax rate will still be enforced; the old policy will also apply to vehicles that have initiated the Georgian registration process before that date.

written in the end

Georgia did not choose to "one size fits all" ban on the import of old cars this time, but changed market behavior by increasing taxes and fees. For China's second-hand car exporters, the greatest impact does not necessarily occur in Georgia itself, but at the key transit node of Poti. In the future, when dealing with markets such as Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan, whether goods enter the Georgian customs system will directly determine the cost structure. Whoever can thoroughly study transit, transshipment and free industrial zone policies will be able to maintain profit margins under the new regional trade pattern.

Source: Guangdong Good Car

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