President Saakashvili submitted to Parliament for consideration a draft law on the creation of a free economic zone on Georgia’s Black Sea coast.

The draft law on “Free Industrialized Zones” says that the zone, which will cover over 10 hectares, can be established through an initiative of either the Georgian government, a legal entity  or a private individual.

According to the draft law, the government must consider a proposal, submitted by either a legal entity or individual, within a month and decide whether or not to permit the establishment of the zone.

An applicant should provide financial guarantees. The government has to outline details of the guarantees before September 1, when the draft law is expected to go into force, assuming it is approved by Parliament.

Companies operating in the zone will be exempted from profit and property tax and VAT. Goods exported from the zone or sent to other parts of Georgia will also be exempted from customs dues.