RESTRICTED
WORLD TRADE WT/ACC/OMN/2
29October 1996
ORGANIZATION(96-4520)
Original: English
ACCESSION OFOMAN
Memorandum ontheForeign Trade Régime
Inacommunication dated 22April 1996(WT/ACC/OMN/1), theGovernment oftheSultanate
ofOman applied foraccession under Article XIIoftheAgreement Establishing theWorld Trade
Organization (WTO).
Atitsmeeting on26June1996, theGeneral Council established aWorking Party withthe
following terms ofreference: "Toexamine theapplication oftheGovernment oftheSultanate ofOman
toaccede totheWTO Agreement under Article XII,andtosubmit totheGeneral Council
recommendations which mayinclude adraftProtocol ofAccession." Themembership isopentoall
WTO Members indicating theirwishtoserve ontheWorking Party.
Inaccordance withtheestablished procedures (WT/ACC/1), theSecretariat iscirculating the
attached Memorandum ontheForeign Trade Régime received fromtheGovernment oftheSultanate
ofOman. WTO Members wishing tosubmit questions ontheMemorandum areinvited todosoby
1December 1996 fortransmission totheauthorities oftheSultanate ofOman.WT/ACC/OMN/2
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TABLE OFCONTENTS
Page
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description 1
(b) Current economic situation 2
2. Economic Policies
(a) Main directions 3
(b) Monetary andfiscal policies 6
(c) Foreign exchange andpayments systems 7
(d) Foreign anddomestic investment policies 7
(e) Competition policy 8
3. Foreign Trade inGoods andServices 8
4. Value andComposition ofForeign Direct Investment 9
5. Financial Movements Related toRemittances 9
6. Growth inTrade inGoods andNon-Factor Services 9
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE INSERVICES
1. Powers ofExecutive, Legislative andJudicial Branches ofGovernment 10
2. Government Entities Responsible forMaking andImplementing Policies
Affecting Foreign Trade 10
3. Division ofAuthority Between Central andSub-Central Governments 11
4. AnyLegislative Programmes orPlans toChange theRegulatory Régime 11
5 Laws andLegal Acts 11
6. Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures 11
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting 11
(b) Characteristic ofnational tariff 12
(c) Tariff quotas, tariff exemptions 12
(d) Other duties andcharges 12
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing
systems 12
(f) Import licensing procedures 13
(g) Other border measures 13
(h) Customs valuation 13WT/ACC/OMN/2
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(i) Other customs formalities 13
(j) Pre-shipment inspection 13
(k) Application ofinternal taxes onimports 13
(l) Rules oforigin 14
(m) Anti-dumping régime 14
(n) Countervailing dutyrégime 14
(o) Safeguard régime 14
2. Export Regulations
(a) Registration requirements forengaging inexporting 14
(b) Customs tariff nomenclature, types ofduties 14
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing
systems 14
(d) Export licensing procedures 14
(e) Other measures, e.g.minimum export prices, voluntary export restrictions,
orderly marketing arrangments 14
(f) Export financing, subsidy andpromotion policies 15
(g) Export performance requirements 15
(h) Import dutydrawback scheme 15
3. Internal Policies Affecting Foriegn Trade inGoods
(a) Industrial policy, including subsidy policies 15
(b) Technical regulations andstandards, including measures taken attheborder
withrespect toimports 16
(c) Sanitary andphytosanitary measures, including measures taken withrespect to
imports 16
(d) Trade-related investment measures 17
(e) State-trading practices 17
(f) Freezones 17
(g) Freeeconomic zones 17
(h) Trade-related environmental policies 17
(i) Mixing regulations 17
(j) Government-mandated counter-trade andbarter 17
(k) Trade agreements leading tocountry-specific quota allocation 17
(l) Government procurement practices, including legalrégime andprocedures for
tendering, dealing withtenders andawards ofcontracts 17
(m) Regulation oftrade intransit 18
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports 19
(b) Exports 19
(c) Export prohibitions andrestrictions 19WT/ACC/OMN/2
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(d) Export credits, export credit guarantees orinsurance programmes 19
(e) Internal policies 19
5. Policies Affecting Foreign Trade inOther Sectors 19
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property régime 19
(b) Responsible agencies 20
(c) Membership ininternational conventions andregional orbilateral agreements 20
(d) Application ofnational andMFN treatment toforeign nationals 20
(e) Feesandtaxes 20
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 20
(b) Trademarks, including service marks 21
(c) Patents 21
3. Measures toControl Abuse ofIntellectual Property Rights 21
4. Enforcement 21
5. Laws, Decrees, Regulations andOther Legal Acts 22
6. Statistical DataonApplication forandGrant ofIntellectual Property Rights 22
VI. TRADE-RELATED SERVICES REGIME
1. General 22
2. Policies Affecting Trade inServices
(a) Government departments, agencies orother bodies withauthority 22
(b) Judicial, arbitral oradministrative tribunals affecting trade inservices 23
(c) Qualification requirements andprocedures 23
(d) Monopolies andexclusive service suppliers 23
(e) Safeguard measures 23
(f) International transfers andpayments 23
(g) Capital transactions 23
(h) Government procurement 23
(i) Aids, grants, subsidies, taxincentives orpromotion schemes 24
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers 24
(b) Limitations onthetotalvalue ofservice transactins orassets 24
(c) Limitations onthetotalnumber ofoperations ortotalquantity ofoutput 24
(d) Limitations onthetotalnumber ofnatural persons employed inparticular
sectors 24WT/ACC/OMN/2
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(e) Restriction on,orrequirement of,specific types oflegalentities 24
(f) Limitations ontheparticipation offoreign capital 24
(g) Measures providing forlessthannational treatment 25
4. Exceptions toMost Favoured Nation Treatment 25
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods and
Trade inServices 25
2. Economic Integration, Customs Union andFreeTrade Area Agreements 25
3. Labour Market Integration Agreements 26
4. Multilateral Economic Cooperation, Membership intheMultilateral Economic
Organizations 26
_______________
ANNEXES
Annex 1 Foreign Trade Statistics 27
Annex 2 Laws andLegal Acts 40
Annex 3 Information onImport Licensing Procedures 42
Annex 4 Information onImplementation andAdministration oftheCustoms
Valuation Agreement43
Annex 5 Information onTechnical Barriers toTrade 45
Annex 6 Information onState Trading 46
Annex 7 ListofProhibited andRestricted Imports According toSchedule 1of
theCustoms Law47
Annex 8 ListofCountries withwhich Oman hasBilateral Trade and
Economic Agreements48WT/ACC/OMN/2
Page1
I. INTRODUCTION
1. Overthelasttwenty-five years, theSultanate ofOman hasbeentransformed fromasubsistence
economy intoamodern economy withsophisticated infrastructure. TheSultanate hasadopted the
philosophy ofafree-market economy withtheprivate sector assuming aleading roleinthedevelopment
process.
2. Theeconomic development oftheSultanate largely depends ontheutilization ofitsoilreserves,
andlately natural gasreserves, asaleading catalyst forgrowth. Inspiteofconsiderable progress that
hasbeenachieved inthediversification ofthecountry 'seconomy, itisstilloil-based andwillcontinue
tobesointheforeseeable future. TheSultanate, however, isconscious ofthedangers ofhaving a
single depleting resource asthemainstay ofitseconomy.
3. Since 1970, when HisMajesty Sultan Qaboos binSaidassumed themantle ofleadership, and
thebeginning ofmodern social andeconomic development, theSultanate 'smainobjectives, inaddition
totheprovision ofnecessary infrastructure including basicservices likeeducation andhealth services,
hasbeenthediversification ofthecountry 'seconomy byencouraging investment instrategic sectors
likemanufacturing, mining, agriculture, fisheries andservice industries. Emphasis isalsoplaced on
human resource development andondevelopment ofvarious regions ofthecountry, outside thecapital,
inorder toreduce regional disparities.
4. Theachievements ofthepasttwenty fiveyears havebeenexcellent. Thenumber ofschools
andpupils increased from 3with909pupils in1970, to1071 schools with525,083 pupils in1995.
Thenumber ofhospitals andhealth clinics increased from 9in1970 to174in1995.
5. These achievements arebacked byrapid economic development based onsound economic
policies. TheSultanate hasanopeneconomy based ontheprinciples offree-market. There areno
foreign exchange andpayments restrictions. Theforeign trade régime ischaracterized bylowtariffs
andveryfewrestrictions. TheSultanate doesnotuseexport subsidies andtrade-related investment
measures.
6. Because ofthesmall sizeofthedomestic market, theSultanate ofOman encourages export-led
growth. Itrequires industries andbusinesses toachieve international competitiveness withaviewto
achieving integration withtheglobal economy.
7. TheSultanate ofOman 'spolicy ofopenandliberal tradeanditsemphasis onexport-led growth
makes itanatural candidate formembership oftheWorld Trade Organization, anorganization whose
main objective isexpansion andliberalization ofinternational trade based ontheprinciples ofopen,
liberal andrule-based multilateral trading system. Theforeign trade régime oftheSultanate ofOman
isinmost respects compatible withtherules oftheWTO. Insome other respects where itwasnot
inconformity withtheWTO, theSultanate haseither already taken steps suchastheenactment of
thelawoncopyrights protection orwillbetaking measures tobring itsrégime intoconformity with
theWTO.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
8. Oman occupies thesouth eastern corner oftheArabian peninsula. Itscoastal lineextends almost
1700kms,fromtheStrait ofHormuz intheNorth totheborders oftheRepublic ofYemen, overlookingWT/ACC/OMN/2
Page2
three seas, theArabian Gulf, GulfofOman andtheArabian Sea. Itborders Saudi Arabia andthe
United Arab Emirates inthewest, theRepublic ofYemen inthesouth, theStrait ofHormuz inthe
north andtheArabian Seaintheeast.
9. Oman 'stotalareaisapproximately 312,500 sq.kmsanditisthesecond largest country in
theArabian Peninsula. Oman 'stotalpopulation is2.1million. Omanis count for1.5million, and
non-Omanis count for0.6million. Population density is6.5persons persquare kmasof1994.
10. Oman enjoys astable social, political andeconomic system andhasexcellent relations with
neighbouring countries which hasenabled hertoplayanactive roleinpromoting regional political
andeconomic cooperation. Inaddition toitsrichcultural heritage, thecountry isabundant withscenic
beauty andhasalottooffer tourists andbusiness visitors alike.
11. Mostrecent estimate putstheSultanate 'soilreserves atabout 5.2billion barrels while itsnatural
gasreserves areestimated toreach about 27.5trillion cubic feet.Oman 'sexports include oil,minerals,
chemicals, agricultural products, textiles, lightmanufactured goods, fisheries andanimals. However,
thecountry 'smainexport isoil.Itsdailyproduction was852thousand barrels perdayin1995. Gas
production was242.3 billion cubic feetin1995.
(b) Current economic situation
12. Oman 'sgross domestic product isestimated tohaverisen by3.3percentduring 1991-95 to
atotalofabout 5288 million Omani Rial(US$ 13749 million) in1995. GDP percapita increased
during theperiod of1970-1995 byanannual average rateof11.6percent;in1995 itwasR.O.2477
(US$ 6440). Oman islooking toachieve anaverage annual GDPgrowth rateof4.6percentatcurrent
prices initscurrent Fifth Five-Year Plan(1996-2000).
13. Thecontribution ofthenon-oil sector hasbeen steadily increasing anditstood ataround
63.4percentofGDP in1995. During theperiod 1991-95, thenon-oil sector registered anaverage
annual increase of6.7percent; within thenon-oil sector, theservices sector amounted toabout
51.6percentofGDP, ofwhich government services contributed 13.2percentofGDP.
14. Regarding theusesofGDP, during theperiod 1991-95 finalconsumption hasaveraged about
76.2percentofGDP. Thisratioisexpected todropinthenextfive-year plan(1996-2000) toabout
70.8percent. During 1991-95, private consumption amounted toabout 63.8percentoftotal
consumption anditisexpected toincrease toabout 73.2percentinthelastyearofthefifthfive-year
plan.
15. Total investment during 1991-95 stood atabout 15.9percentofGDP. Thiscontribution to
GDP isexpected toincrease markedly toanannual average ofabout 22.9percentduring thenext
five-year plan. During 1991-95, about 61.9percentoftotalinvestment wasundertaken bythepublic
sector. Thispicture isexpected tochange bytheyear2000when public sector investment isestimated
tobeonlyabout 46.6percentoftotalinvestment.
16. Itisnoteworthy thattheimperative ofbuilding amodern society tocatch upwiththeadvanced
world, especially intheabsence ofanactive andcapable private sector, during thefirst15-20 years
ofdevelopment, meant thatthegovernment hadtoshoulder thebiggest burden which explains thelarge
share ofpublic consumption andinvestment.
17. Theoilsector continues toplayamajor roleinOman 'seconomy. In1995 theoilsector
contributed around 38.2percentofGDP, oilexports represented 78.4percentofmerchandise exports,
andgross oilrevenue wasabout 83.7percentoftotalgovernment revenue.WT/ACC/OMN/2
Page3
18. Thefallinoilprices hasputstrain ongovernment finances asitresulted inasharp decline
ingovernment 'sgross oilrevenue in1992-93. In1992 thedeficit reached about 578.5 million rial
representing about 12percentofGDP. Since 1992thebudget deficit hasbeendeclining andabalanced
budget isexpected bytheendofthefifthfive-year planin2000.
19. Theconsumer price index inMuscat governorate recorded adecline of1.3percentin1995.
Thedecline isattributed toa11.2percentdecline intheprice ofhousing rent,andanincrease of
1.6percentinthefoodstuff andbeverage group.
2. Economic Policies
(a) Main directions
20. Theyear1970 represents aturning point inthehistory oftheSultanate ofOman. Theway
oflifeintheSultanate haschanged. Oman hassetthepathtoprogress, construction andachievement
toproclaim thebirthofamodern Statefullofaspiration andhopeforthepresent andfuture generations.
21. Development efforts began withthefirstFive-Year Development Plan(1976-1980). Thebasic
aimsofOman Development Strategy setforth in1975 were:
(i) work towards developing newsources ofnational income alongside theoilrevenues witha
viewtoreplacing them inthefuture;
(ii) enhance theproportion ofinvestments going toincome generation projects especially inthe
areas ofindustry, mining, agriculture andfisheries;
(iii) distribute investments geographically inorder thattheymaybenefit alltheregions ofthecountry
andallitspeople, andinorder toeliminate thedisparity inthestandard ofliving between various
regions. Special priority wastobegiven tolessdeveloped regions;
(iv) support anddevelop present population centres andprotect themfromtheriskofmassmigration
todensely populated areas andconserve theenvironment;
(v) payattention towater resources astheyrepresent avitalelement necessary forthecontinuation
anddevelopment ofeconomic activities;
(vi) paydueattention tothedevelopment ofnational human resources inorder thattheymayplay
anintegral partintheOmani economy;
(vii) setupthenation 'sinfrastructure;
(viii) promote local commercial activity andremove constraints intransport, storage andother
deficiencies which impede theconsolidation offreemarket operations andfreecompetition;
(ix) establish thecomponents ofafreemarket economy based ontheactivities oftheprivate sector,
onthebasis offreecompetition, andprovide loans forvitalprojects ascommensurate with
theresources available totheState;
(x) enhance theefficiency ofthecivilservice.
22. These principles guided thecourse ofdevelopment intheSultanate andwerethebasis upon
which successive FiveYearPlans wereformulated. Thestrategy concentrated onpreparing astable
environment andsuitable climate todevelop thecountry andaccelerate itintothetwenty firstcentury.WT/ACC/OMN/2
Page4
23. Thecurrent plan, theFifth Five-Year Development Plan(1996-2000), represents thefirst
development planamong aseries offive-year plans thatarebeing formulated forthepurpose ofthe
realization oftheVision forOman 'sEconomy :Oman 2020. ThePlanconstitutes theimplementation
programme ofthefundamental goals, policies andmechanisms adopted fortherealization ofeconomic
stabilization andsustainable growth during thenextphase ofthedevelopment process.
24. Oman Vision 2020 primarily aimsatmaintaining thecurrent levelofpercapita income, as
aminimum, anddoubling itbytheyear2020. Themaintargets oftheFifthFive-Year Plan(1996-2000)
which constitute thefirststeptoward Oman Vision 2020 are:
(i) achieving abalance between government revenue andexpenditure;
(ii) achieving anaverage annual GDP growth rateof4.6percentatcurrent prices;
(iii) diversifying thesources ofnational income;
(iv) encouraging domestic andforeign private investment;
(v) undertakingthenecessarystepsforthedevelopmentandpromotionofnatural-gas-basedprojects;
(vi) implementing privatization programmes intheservices sector inaccordance withthepolicies
andcontrols established forthispurpose;
(vii) controlling inflationary pressures during theperiod oftheplan;
(viii) according special importance tohuman resources development.
25. Policies adopted toachieve thefundamental aimsoftheplanare:
(i) achieving abalance between government revenue andexpenditure through:
- creation ofarealdomestic source offinance through issuing government development
bonds,
- discontinue netborrowing from abroad asasource offinance,
- minimize dependence onwithdrawal from State funds asasource offinance.
- transferring toStateEmergency Fund alloilproceeds fromselling oilabove US$17
perbarrel.
(ii) diversifying thesources ofnational income through anincrease intheGDPshare ofthenon-oil
sectors to69percentbytheendoftheyear2000. Thisessentially means plans toreduce
dependence onoil.Other measures aretaken intoconsideration suchas:
- saleofgovernment assets totheprivate sector;
- privatization ofprojects relating totheservice andproduction sectors;
- encouraging domestic andforeign private investment andincreasing theprivate sector 's
share intotalinvestment inthePlanto53percenttofoster thechances ofsuccess
oftheprivate sector-based development strategy;
- development andpromotion ofnatural-gas-based projects.
(iii) inrespect toHuman Resources, theGovernment hasdrawn astrategy listed asthefollowing:WT/ACC/OMN/2
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- improve population characteristics generally asfarassocial welfare, education, health,
culture andyouth welfare areconcerned, andprovide thenecessary services andutilities
which willdevelop theabilities ofmanpower, raisetheproductivity andpromote its
development;
- applying amodern education system thatwould empower theindividual tohavea
positive roleinthework force;
- proceed intheOmanisation policy toincrease thelevels ofOmani participation inthe
labour force;
- increasing theparticipation ofwomen inthelabour force byexpanding education and
creation ofwork opportunities;
- medium andlongtermplanning designed todealwithlabour forceissues anditsrelated
aspects.
(iv) regarding private sector development andtoenable theprivate sector toplayaneffective role
inthedevelopment process, thegovernment hasformulated policies andtaken measures toward
privatization oftheeconomy andstrengthening theroleoftheprivate sector. These policies
are:
- privatization represents apartofthegovernment programme aimed atachieving
sustainable development, increasing growth rates, anddistributing thebenefits of
development among allregions andsegments ofthesociety;
- priority ofprivatization shall begiven toproduction services thatoperate ona
commercialbasis,suchaswastewater,electricity,water,telecommunications,highways
andpostal services. When privatizing these services, consideration shallbegiven to
thefinancial andadministrative capacities oftheprivate sector;
- inorder toenable adjustment toanychanges intheeconomic andsocial situations
inameasuredandgradualmanner,privatizationshallbeappliedgraduallytotheexisting
governmental production andservices establishments;
- transparent andexplicit criteria shallbesetfortheselection andevaluation ofinvestment
proposals, together withclear identification oftheresponsibilities oftheconcerned
government authorities andforthesystem ofmonitoring theprivatization programmes;
- more thanonecompany shallbeestablished torender aservice, whenever possible,
inorder toincrease competition andenable thegovernment tocompare theperformance
andefficiency ofservice providers;
- theGovernment shalldetermine theunified maximum tarifftobepaidbyallconsumers
intheSultanate, regardless whether theproject isoperated bythegovernment orby
theprivate sector. Thetariff shallnotbeamended without government approval;
- tobenefit from foreign capital andtechnical andadministrative expertise, foreign
participation intheprivatization projects shallbeencouraged. Thisparticipation should
beinaccordance withtheForeign Capital Investment Law;WT/ACC/OMN/2
Page6
- thegovernment shallsetthebases andcriteria forprotecting theenvironment from
anynegative impacts thatmayariseasaresult oftheefforts toreduce costbythe
privatized enterprises;
- thegovernment shallprepare thesociety, through theuseofvarious means ofmass
media, toaccept thechanges intheeconomic andindustrial structure ofthecountry.
Such preparation shall beachieved byelaborating tocitizens theadvantages of
privatization, itsimportance totheirprosperity, particularly tothefixed-income group,
anditscontribution tothecomprehensive development process;
- thesaleproceedsofgovernmentassetsintheprivatizedproductionandservicesprojects,
shallaccrue totheState General Reserve Fund.
(b) Monetary andfiscal policies
26. Monetary policy hasnormally twokeyobjectives which arebasically thesteering ofthefinancial
system inadirection which would contribute tothefulfilment ofthemedium tolongtermtargets aimed
ateliminating internal andexternal imbalances andtosmoothen outfluctuations inbank liquidity.
Theaimsinclude themaintenance ofthedomestic andinternational value ofthemonetary unitand
tocontribute totheeconomic, industrial andfinancial growth oftheSultanate ofOman. TheCentral
Bank ofOman atpresent doesnotsetanyspecific target formonetary variables. However, thebank
conducts monetary policy inconsultation withtheGovernment sothatthepolicies pursued bytheBank
together withthefiscal andother economic policies oftheGovernment achieve theobjectives as
envisaged intheFiveYear Plans.
27. TheCentral Bank ofOman hasthelegalauthority touseabroad range ofmonetary policy
instruments. Theinstruments thatCBO hasatitsdisposal are:reserve requirements, lending ratios,
rediscount policies, currency swaps, treasury billsanddevelopment bond operations andissuance of
certificate ofdeposits.
28. Until 1993, theCentral Bank hadalong-standing policy ofenforcing interest rateceilings on
commercial bankdeposits andloans. On1October 1993, theCentral Bank ofOman lifted theceiling
onRialOmani deposits andeffective June1994 alllending ratesexcept those inregard toconsumer
loans ofRO9000andlesswerederegulated. Following thederegulation ofcommercial bankinterest
rates, domestic deposit rateshaveapproximately tracked international USdollar rates, although with
alag.Inaneconomy where there isnorestriction oncapital movements withthecurrency freely
convertible, itisexpected thatinterest rateswould bedetermined bythefreeinterplay ofmarket forces.
Inthelongrunthiswould result ineconomic efficiency andprovide asteady macro-economic
environment foroptimum useofresources.
29. Thefiscal policy influences thesituation andtrack ofeconomic performance interms ofthe
balance between resources andexpenditure ontheonehandandthepublic debtorthemonetary aspects
ontheother. Thefiscal policy isveryimportant inthenational economy astheeconomic performance
depends mainly ongovernment spending asadriving force fortheeconomic activity which relies
inturnupon theoilincome asamajor source forgovernment revenues. Thefiscal policy depends
onthefollowing:
(i) balance between thedevelopment requirement andtheavailable resources ononehand and
theprecautions needed todealwithoilmarket byforecasting oilprice ontheother;WT/ACC/OMN/2
Page7
(ii) enhance thefiscal position ofthecountry through increasing thetransfer percentage totheState
General Reserve Funds andnotresorting towithdrawal from itunless recommended bythe
Cabinet;
(iii) finance thegovernment usesthrough selfresources ofthenational economy represented by
oilandnon-oil government revenues aswellasfinancing thedeficit between theresources
andusesbywithdrawing fromthestabilization reserve provision andtheissueofmedium and
longtermdevelopment bonds without anyincrease innetforeign borrowing;
(iv) itisprojected that,under theFifthFiveYearPlan, thecurrent expenditure ofthecivilministries
would dropovertheplanyears 1997, 1998, 1999. Theincrease intheyear2000isprojected
at1.6percentonlycompared with1999 expenditure;
(v) maintain thesizeofthegovernment anditsagencies 'foreign debtwithout anynewnetforeign
debtunless theCabinet approved thesame. Thismeans thatthedebtservice ofexternal debt
(including instalments andinterest) willnotexceed 9percentoftotalexports;
(vi) anyincrease intheexpenditure approved inthepublic budget asamended, morethanthebudget
projections should befinanced fromselfrevenues, within thepublic budget without recourse
toreserves orincreasing thepublic debt;
(vii) reconsider some spending items incasetheoilpricedropped below thepriceestimated inorder
tomatch withpublic revenues andmaintain thefinancial position ofthegovernment;
(viii) develop thenon-oil revenue inorder tocontribute gradually tothetotalrevenue.
(c) Foreign exchange andpayment systems
30. Thecurrency ofOman istheRialOmani, which ispegged totheUSdollar, theintervention
currency, atRO.1 equal toUS$2.6008. TheCentral BankofOman maintains fixedbuying andselling
ratesfortheUSdollar, withanarrow margin around thepeg. Thecommercial bankratesforother
currencies arebased onmarket ratesinLondon. There arenotaxes orsubsidies onpurchases orsales
offoreign exchange. Oman informed theIMFon19June1974thatitformally accepted theobligations
ofArticle VIII, sections 2,3,and4oftheFund Agreement.
31. Exchange control authority isvested intheCentral Bank ofOman, butthere isnoexchange
control legislation inOman. Foreign exchange forpayments abroad canbeobtained freely. No
requirements areattached toreceipts fromexports orre-exports andtheymaybedisposed offreely.
Payments fortheproceeds frominvisibles arenotrestricted. Travellers maybring inortakeoutany
amount indomestic orforeign currencies. Noexchange control requirements areimposed oncapital
receipts oronpayments byresidents ornon-residents.
(d) Foreign anddomestic investment policies
32. TheGovernment ofOman seeks topromote private sector investment, foreign anddomestic,
withaviewtoachieving thefollowing objectives:
- assisting indiversifying thesources ofnational income inorder toreduce gradually the
dependence onoilasthedominant source ofincome;
- creating jobandcareer opportunities foragrowing number ofeducated young Omanis;WT/ACC/OMN/2
Page8
- developing Omani management skills andtechnical expertise through transfer offoreign
technology, including management andmarketing know-how;
- gainingaccesstoexportmarketsthroughforeignprivatesectorinternationalmarketingchannels;
- securing foreign equity participation inbigprojects requiring verylarge investment.
33. Thediversification oftheeconomy hastobebrought about through strengthening, promoting
anddeveloping thesectors ofmanufacturing, services, agriculture, fisheries andtourism.
34. Oman hasliberal lawsandregulations governing foreign investment. There arenorestrictions
ontherepatriation ofcapital andprofits which isfreely allowed. Thelawspecifically stipulates that
projects having foreign investment shallneither beconfiscated norexpropriated except inpublic interest
andonpayment ofcompensation.
35. TheForeign Capital Investment Lawprovides thataforeign investor isallowed toown:
- 49percentshare inacompany withacapital ofatleastRialOmani 150,000 (US$ 390,000);
- upto65percentshare ifapproved bytheMinister ofCommerce andIndustry upon the
recommendation oftheForeign Capital Investment Committee;
- 100percentshare ifthetotalcapital oftheproject isRO500,000 (US$ 1.3million) andit
contributes tothedevelopment ofthenational economy. Thislevelofownership, however,
needs tobeapproved bytheCouncil ofMinisters upon arecommendation fromtheMinister
ofCommerce andIndustry.
(e) Competition policy
36. There isnospecific lawoncompetition policy.In general, theeconomic policy isbased on
theprinciples offree-market economy.
3. Foreign Trade inGoods andServices
37. Oman hasextensive trade relations thatencompass mostcountries oftheworld. Oman also
hasafreeandflexible trade régime inbothexport andimport operations, thereby nolicensing is
required. Thus, there arenorestrictions onforeign exchange transfers inOman.
38. Foreign trade plays amajor roleinOman 'seconomy. During theperiod 1991-95, exports
ofgoods andservices averaged approximately 43.5percentofGDPandimports ofgoods andservices
averaged approximately 31.6percentofGDP.
39. TheSultanate hasundergone anoticeable change initsexport structure duetoagradual increase
intheproportion ofnon-oil exports andre-exports. Theshare ofnon-oil exports inthetotalexports
ofgoods andservices hasincreased significantly fromamere0.4percentin1980toabout 7.8percent
in1995.
40. Exports consist mainly ofcrude oilanditsderivatives. In1995merchandise exports amounted
to2332million Rials (US$ 6063million) which represents 44.1percentofGDP, ofwhich oilexports
represented 78.4percent.TheEastAsian countries, inparticular Japan andKorea, constitute themain
market forOman 'soilexports. Their share wasabout 53.8percentofoilexports in1995. Itisworth
mentioning however thattheshare ofthesetwocountries hasbeendeclining asnewmarkets haveopenedWT/ACC/OMN/2
Page9
toOmani oilexports suchasThailand andChina. Non-oil exports consist mainly offoodandlive
animals andmanufactured goods. Currently, about halfofthenon-oil exports gototheUnited Arab
Emirates (UAE),
41. Merchandise imports, ontheother hand, stood atabout 1684 million Rials (31.5 percentof
GDP) (US$ 4378 million) in1995. Currently, almost 60percentofitconsists ofmachinery and
transport equipment andmanufactured goods. About threequarters oftheseimports come fromJapan,
UAE, andWestern Europe.
42. TheSultanate hasalways registered positive merchandise tradebalances. In1995tradebalance
stood at648million Rials(12.3 percentofGDP). Thisisduetothehighoilexport earnings. However,
netservices andtransfers offset thissurplus which hasresulted inapersistent deficit inthecurrent
account balance since1991. Deficit inthecurrent account balance in1995wasabout 342million Rials
(6.5percentofGDP). These deficits areattributed tohighnegative netremittances ofexpatriate labour
andprofit remittances.
4. Value andComposition ofForeign Direct Investment
43. Foreigninvestmenthasincreasedannuallyatanaverageof14.5percentintheperiod1992-1995.
During thesame period, almost 91percentofthese investments havebeeninvariably from foreign
non-Arab countries. During 1992-95, about 81percentoftheinvestment inflows wenttotheoilsector.
Thisshare, however, increased toabout 83.8percentin1995. Consequently, in1995 theshare of
non-oil investment tototalforeign investment hasincreased noticeably toabout 16.2percentcompared
withamere 2.6percentin1994. Thismaywellbeaclearindication ofashiftinthecomposition
offoreign investment inOman reflecting government policy andefforts todiversify itseconomic base
andtoencourage investment inthenon-oil sector.
5. Financial Movements Related toRemittances
44. Networkers'remittanceshavesteadilyincreasedinthelastfewyears.Duringtheperiod1991-95
thenetoutflow ofworkers remittances grew atanannual average of16.3percent. Thisisprimarily
duetoacorresponding12.8percentincreaseinnon-Omaniemployment.Thisincreasehasbeencoupled
withonlyanannual average GDPgrowth rateof3.3percent. Consequently, theshare ofnetoutflows
ofworkers 'remittances toGDP hassteadily increased toabout 12.9percentin1995 compared with
7percentin1990. Inward workers 'remittances areestimated tobearound 15million rialsannually.
6. Growth inTrade inGoods andNon-Factor Services
45. Exports ofgoods andnon-factor services (GNFS) haveregistered anaverage annual increase
of2percentduring 1991-95. Starting in1998, growth ratesofexports ofGNFS willslowdown due
tolower oilexport earnings asaresult ofthedropinoilproduction. However, itisestimated that
during thefifthfive-year plan(1996-2000) exports ofGNFS willregister anannual average growth
rateof3.8percent.
46. Imports ofgoods andnon-factor services, ontheother hand, haveregistered anaverage annual
increase of8.7percentduring 1991-95. During 1997 and1998, imports ofGNFS areestimated to
increase by13.3percentand8.1percentrespectively, asaresult oftheLNG project; itwillregister
negative growth ratesduring 1999and2000asaresult ofthesharp dropincapital imports. Onaverage,
however, itisestimated thattheannual average growth during (1996-2000) willbeabout 3.7percent.WT/ACC/OMN/2
Page10
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers ofExecutive, Legislative andJudicial Branches ofGovernment
47. HisMajesty theSultan ofOman istheHead ofStateandHead ofGovernment andisthehighest
andfinalauthority.
48. Thelegalsystem isbased onlawsandRoyal Decrees issued byHisMajesty. Thelegislations
constitute thelawofthelandandisvalid fromthedateofpublication intheOfficial Gazette orfrom
anyother determined date. International treaties, conventions andcharters arealsosigned by
HisMajesty, oranyperson designated byHisMajesty, inwhich latter casesuchtreaty, convention
orcharter issubmitted toHisMajesty forratification. After signature orratification byHisMajesty,
thetreaties, conventions orcharters aredeemed tobepartofthelawofthelandasofthedateof
publication intheOfficial Gazette, unless HisMajesty decides otherwise.
49. TheCabinet isthehighest executive authority intheSultanate deriving itsauthority from
HisMajesty theSultan. TheCabinet considers matters related toadministrative functions oftheState,
internal policies andexternal relations oftheSultanate ofOman withother countries. Italsoconsiders
international treaties, conventions andcharters. TheCabinet submits recommendations inrespect of
theforegoing subjects toHisMajesty theSultan forapproval.
50. Adiverse group ofSpecialized Councils havebeenestablished byHisMajesty toassist in
planning, study andformulation ofproposals andplans inspecific areas ofdevelopment. Some of
these Councils, e.g.Financial andEnergy Resources Council, arepresided overbyHisMajesty the
Sultan, andinclude some members oftheCabinet andother senior officials.
51. Functions andjurisdiction ofMinistries aredetermined, oradjusted, byRoyal Decrees. Each
Minister, assisted byUnder-Secretary/ies andofficials, isresponsible forimplementing matters within
thejurisdiction oftheMinistry.
52. Thejudicial system oftheSultanate comprises of:(i)Sharia (religious) Courts, (ii)Criminal
(Magistrate) Courts, and(iii)theAuthority forSettlement ofCommercial Disputes.
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
53. Theresponsibility formaking andimplementing policies affecting foreign trade liesmainly
withtheMinistry ofCommerce andIndustry. TheMinistry isresponsible forimplementing lawsand
regulations relating toimportation andexportation ofgoods, forconcluding bilateral tradeagreements,
formultilateral tradenegotiations, forexport promotion measures andpolicies, fordecision onindustrial
incentives, andformatters relating toforeign investment. Ministry ofCommerce andIndustry isalso
responsible forstandards, insurance matters andforpatents, copyrights andtrade marks.
54. TheMinistry ofCommerce andIndustry (Directorate General forSpecifications and
Measurements) hasresponsibility forestablishing andapproving standards fordifferent goods sold
inOman,andforensuringtestingandcompliancewithstandardsforimportedanddomesticallyproduced
goods.
55. TheMinistry ofFinance andtheCentral Bank ofOman haveresponsibility forformulating
andimplementing policies relating tobanking andother financial services. TheMinistry ofFinance
hasthemain responsibility inmatters relating tocustoms tariffs.WT/ACC/OMN/2
Page11
56. TheMinistry ofAgriculture andFisheries isresponsible formatters relating toagriculture,
animal wealth andfisheries andinparticular tomatters relating todomestic support forthesame.
57. TheRoyal Oman Police (Directorate General ofCustoms) isresponsible foradministering and
implementing customs lawandprocedures andforlevyandcollection ofcustoms duties.
3. Division ofAuthority Between Central andSub-Central Governments
58. TheSultanate ofOman hasaunitary formofgovernment. Allauthority restswiththeCentral
Government. There arenosub-central governments.
4. AnyLegislative Programmes orPlans toChange theRegulatory Régime
59. There arenolegislative programmes orplans atpresent tochange theregulatory régime.
5. Laws andLegal Acts
60. Alistoftherelevant lawsandlegalactsisgiven inAnnex 2.
6. Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures
61. Thecomponent ofthejudicial system oftheSultanate ofOman which relates totrade and
commerce istheAuthority forSettlement ofCommercial Disputes. Thiswasestablished byRoyal
Decree No.79 of1981 asajudicial-commercial body.
62. ThejurisdictionoftheAuthorityisprovidedforinRoyalDecreeNo.32of1984whichempowers
theAuthoritytodecideallcasesrelatedtocommercialmattersandalsodisputeswhichotherlawsprovide
forsubmission totheAuthority.
63. TheAuthority forSettlement ofCommercial Disputes alsohasjurisdiction incases involving
disputes between thetrade andgovernment departments oragencies.
64. Thefundamental characteristic oftheAuthority isitsindependence from theexecutive in
discharging itsjudicial functions. Toensure that, theAuthority hasbeen given financial and
administrative independence.
65. TheAuthority forSettlement ofCommercial Disputes consists ofaChairman, aDeputy
Chairman, anumber ofjudges appointed byRoyal Decree andmembers from Oman Chamber of
Commerce andIndustry selected bytheMinister ofCommerce andIndustry ontherecommendation
ofChamber 'sBoard ofDirectors.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting
66. There arenospecific requirements forengaging inimportation. Anycompany orindividual
registered withtheMinistry ofCommerce andIndustry under therelevant laws canengage in
importation.WT/ACC/OMN/2
Page12
(b) Characteristic ofnational tariff
67. Oman follows theHarmonized System forStatistical purposes. Itisconsidering touse
Harmonized System forclassification ofgoods forcustoms purposes.
68. Customs duties areonadvalorem basis. There arenospecific duties. There aresixratesof
customs duties fordifferent typeofgoods. These are:0percent,5percent,20percent,25percent,
50percentand100percent.
69. Thelistofproducts orgroups ofproducts subject tozerotariff include foodstuff, likemeat
(except porkmeat), milk, cooking oilsandfats,cereals, tea,sugar, freshfruits andvegetables, cement,
fertilizers, printed material, agricultural equipment andallgoods imported forGovernmental use.
70. Only thefollowing fewitems aresubject todutyratesof20-100percent.
- Dates: 20percent
- Bananas: 25percent
- Tobacco andtobacco products: 50percent
- Alcoholic beverages: 100percent
- Porkmeatandproducts: 100percent
71. Allremaining products aresubject toimport dutyof5percent. Theweighted average tariff
in1994 was2.7percent.
72. Theexisting tariff rateshavebeeninforce since thebeginning of1986. There hasbeenno
revision ofratessince 1986.
73. Theratesofcustoms duties areapplied onanMFN basis toimports fromallsources, except
forimports from GCC Countries which areexempt from dutywithin theframework oftheGCC
free-trade areaofwhich Oman isamember.
(c) Tariff quotas, tariff exemptions
74. There arenotariff quotas applicable inOman. Asstated earlier, allgoods imported for
GovernmentaluseareexemptfromimportdutiesandallgoodsimportedfromGCCcountriesareexempt
byvirtue oftheGCC free-trade area.
(d) Other duties andcharges
75. There arenootherduties andcharges ofanykindimposed onorinconnection withimportation,
within themeaning ofArticle II.1(b) ofGATT 1994. However, feesandcharges forservices rendered
areapplicable inrespect ofstorage charges attheport/airport ifimported goods arenotcleared within
aspecified time.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
76. Alistofitems theimport ofwhich isprohibited isatAnnex 7.
77. Import offresh andlong-validity milkisrestricted toanannual quota fixed every yearonthe
basisofstudy prepared bytheMinistry ofAgriculture andFisheries onthevolume oflocalproduction
andprojections ofconsumption.WT/ACC/OMN/2
Page13
78. During thesummer months (June-September), theMinistry ofAgriculture andFisheries
establishes import quotas foreggsbased onastudy ofthemarket requirements anddomestic production.
79. Inthecaseoffruits andvegetables, thePublic Authority forMarketing Agricultural Produce
decides every yearonimport quotas determined afterastudy ofdomestic production andmarket
requirements offruits andvegetables.
(f) Import licensing procedures
80. There arenoimport licensing requirements andprocedures intheSultanate ofOman.
(g) Other border measures
81. There arenoother border measures applied inOman.
(h) Customs valuation
82. Value ofgoods forcustoms purposes isdetermined onthebasisofpriceactually paidoragreed
tobepaidfortheimported goods, when itispacked andready forshipment attheportofexport.
Actual freight andinsurance charges areadded. Goods arethusvalued onCIFbasis.
83. Thesystem ofvaluation isnotbased inentirety ontheWTO Customs Valuation Agreement
orontheBrussels Definition ofValue. However, inessence thesystem ofvaluation isclose tothe
basic concept oftheWTO Customs Valuation Agreement.
84. Thecustoms valuation system ofOman isusedonlyforpurposes oflevying advalorem rates
ofduty.
(i) Other customs formalities
85. Customs formalities forimported goods aresimple, straightforward andexpeditious. Goods
caneither becleared forhome consumption oncompletion ofdocumentation, examination andpayment
ofimport duty, ifapplicable, orthese canbewarehoused without payment ofdutywhich iscollected
when thegoods arecleared from thewarehouse forhome consumption.
86. Customs formalities canbecompleted before thearrival ofgoods attheportortheairport.
87. Customs procedures provide forclearance ofgoods incases ofnon-availability ofnecessary
documents withtheimporter, subject topayment ofestimated dutyplusaprovisional deposit which
isadjusted when thedocuments areproduced tothecustoms.
88. Avenues ofappeal areavailable under thecustoms law,including recourse tocourts, incases
ofdisputes relating tolevyoforamount ofcustoms duty.
(j) Pre-shipment inspection
89. TheGovernment oftheSultanate ofOman does nothave anypre-shipment inspection
requirement.
(k) Application ofinternal taxes onimports
90. There arenointernal taxes onimports within themeaning ofArticle IIIofGATT 1994.WT/ACC/OMN/2
Page14
(l) Rules oforigin
91. Oman usesrules oforigin forimports from GCC countries. Goods areconsidered ofGCC
origin iftheycontain atleast40percentvalue added inGCC countries.
(m) Anti-dumping régime
92. Oman doesnothaveanyanti-dumping law.
(n) Countervailing dutyrégime
93. There isnolawatpresent ontheapplication ofcountervailing duties.
(o) Safeguard régime
94. There isnolegislation onsafeguard measures.
2. Export Regulation
(a) Registration requirements forengaging inexporting
95. There arenospecific registration requirements forengaging inexport trade.
(b) Customs tariff nomenclature, types ofduties
96. Oman isconsidering theuseoftheHarmonized System forclassification ofgoods forcustoms
purposes.
97. Oman doesnotapply anyexport duties.
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing systems
98. There areonlytwotypes ofexport restrictions which affect veryfewproducts.
99. First, approval oftheMinistry ofAgriculture andFisheries isrequired forexport ofdateseeding
andcertain species offish.
100. Second, export ofantiques, ancient manuscripts andMarie Teresa Riyals isprohibited.
(d) Export licensing procedures
101. There arenoexport licensing requirements andprocedures.
(e) Other measures, e.g.minimum export prices, voluntary export restrictions, orderly marketing
arrangements
102. Oman doesnothaveanyother measures, suchasminimum export prices ororderly marketing
arrangements. However, Oman doeshavevoluntary export restraints oncertain textiles andclothing,
interms ofbilateral agreements withtheUnited States andCanada.WT/ACC/OMN/2
Page15
(f) Export financing, subsidy andpromotion policies
103. TheExport Guarantee andFinancing Unit(EGFU) oftheOman Development Bank promotes
exports byproviding export insurance cover against commercial andpolitical risks, andinhelping
manufacturers intheircommercial bankborrowing withtheinterest subsidy scheme aswellasexport
financing.
(g) Export performance requirements
104. There arenoexport performance requirements.
(h) Import dutydrawback scheme
105. Ifimported goods arere-exported inthesame form, import dutypaidisrefunded infull.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies
106. TheSultanate ofOman focuses onencouraging andexpanding theindustrial sector tomaximize
itsshare inthenational economy. Theprincipal policy objectives tobepursued tothateffect arethe
following:
- develop thesector toachieve thediversification strategies oftheeconomy;
- optimum utilization oftheavailable national resources inindustrialization;
- encouragement ofexport-oriented industries;
- creation ofR&D basetofacilitate thetransfer oftechnology andenhance theefficiency and
competitiveness ofthesector;
- integration andstrengthening ofinter-linkages intheindustrial sector;
- accelerate industrialization byopen doorpolicy toattract foreign investment andsustaining
apositive investment climate;
- adopt import substitution policy toselective industries;
- encourage resource-based heavy industries andhighvalue-added lightindustries.
107. Thevision forOman 'seconomy, upto theyear 2020, envisages thatwithin astable
macro-economic framework tobeprovided bytheGovernment, sustainable development would be
achieved byrelying ontheprivate sector astheprimary engine ofgrowth. Adiversified, dynamic
andglobalized economy istobeestablished through astrong, efficient andcompetitive private sector.
108. Theindustrial policy ofOman envisages thatthemanufacturing sector which atpresent
contributes alittleover5percenttotheGDP ofOman should bestrengthened andexpanded soas
tocontribute 15percenttotheGDP bytheyear2020. Emphasis willbeplaced ondevelopment of
export-oriented industries, which would beencouraged toachieve international competitiveness with
aviewtoachieving integration withtheglobal economy. Oman isfollowing apattern ofindustrialization
which iscapital-technology-knowledge intensive. Inthisprocess, theroleofforeign investment is
recognized inbringing incapital, technology andhighly specialized management andmarketing skills.WT/ACC/OMN/2
Page16
109. Theindustrial policy alsoencourages medium-scale industries inorder toprovide scope for
employment ofeducated andqualified Omanis.
110. TheGovernment oftheSultanate ofOman provides thefollowing industrial incentives:
- freesurvey ofindustrial investment opportunities andsoftloans andgrants forconducting
pre-feasibility studies;
- provision ofinterest-free loansbytheGovernment orloansonsoftterms byOman Development
Bank;
- exemptionfromcustomsdutyonimportofmachinery,equipment,sparepartsandrawmaterials.
(b) Technical regulations andstandards, including measures taken attheborder withrespect to
imports
111. Allgoods domestically produced intheSultanate ofOman andimported from abroad must
meetOmani standards andmeasures most ofwhich arebased oninternational standards. Thebody
responsible forstandards istheDirectorate General forSpecifications andMeasurements (DGSM).
112. DGSM, which isacorrespondent member oftheISO,wasestablished withtheobjective of
formulating, adopting, publishing anddistributing national standards andfortesting andcertification
ofconformity withthestandards.
113. Thepurpose ofstandards istoprovide safety andprotection forthehealth andwelfare of
consumers. Omani standards andmeasures takeintoaccount theenvironmental conditions inthe
Sultanate ofOman.
114. Bytheendof1995, DGSM hadprepared 827standards andmeasures, copies ofwhich are
freely available fromDGSM. Foodstuff, electrical equipment, chemical products andautomobiles are
some oftheimportant sectors covered byOmani standards andmeasures.
115. DGSMensuresthatdraftstandardsarecirculatedforcommentspriortofinalizationofstandards.
116. MedicinesandmedicalequipmentareregulatedbytheMinistryofHealth.Undertheregulations,
acertificate from theMinistry ofHealth isrequired forsaleofmedicines andmedical equipment in
theSultanate ofOman.
(c) Sanitary andphytosanitary measures, including measures taken withrespect toimports
117. TheSultanateofOmanappliessanitaryandphytosanitarymeasurestoplants,foodstuffs,animals
andanimal products forhealth andsafety reasons. Oman ’ssanitary andphytosanitary measures are
based onscientific principles. Thesultanate ofOman isanactive member oftheFAO, theWHO and
theOffice ofInternational Epizooties (OIE). Oman haslaiddown requirements forlabelling of
prepackaged foods inaccordance withOmani Standard No.58/1984. Allconsignments oflivestock,
animal products, fish,veterinary drugs, andanimal feedaresubject toveterinary inspection and
quarantine. Thesanitary andphytosanitary measures ofOman areusedforonlygenuine purposes
andarenotusedastrade restrictive measures. Further, these donotdiscriminate between different
countries ontheonehandandbetween foreign countries andOman ontheother hand.WT/ACC/OMN/2
Page17
(d) Trade-related investment measures
118. Notrade-related investment measures areapplied bytheSultanate ofOman.
(e) State-trading practices
119. There aretwoState enterprises which engage inimports andexports. However, boththese
enterprises arenotState-trading enterprises interms ofthedefinition inArticle XVII andinthe
Understanding ontheInterpretation ofArticle XVII ofGATT 1994asthese twoenterprises havenot
beengranted anyexclusive orspecial rights orprivileges. They compete onequal basis withprivate
importers andexporters, andconduct their sales andpurchases inaccordance withcommercial
considerations.
120. Thetwoenterprises are:ThePublic Authority forMarketing Agricultural Produce (PAMAP),
andthePublic Authority forStores andFood Reserves.
(f) Freezones
121. There arenofreezones intheSultanate ofOman.
(g) Freeeconomic zones
122. There arenofreeeconomic zones intheSultanate ofOman.
(h) Trade-related environmental policies
123. There arenotrade-related environmental policies.
(i) Mixing regulations
124. TheSultanate ofOman doesnothaveanymixing regulations.
(j) Government-mandated counter-trade andbarter
125. There isnogovernment-mandated counter-trade orbarter.
(k) Trade agreements leading tocountry-specific quota allocation
126. There arenosuchagreements leading tocountry-specific quota allocations.
(l) Governmentprocurementpractices,includinglegalrégimeandproceduresfortendering,dealing
withtenders andawards ofcontracts
127. There aretwomain legal instruments relating togovernment procurement. These arethe
Government Tender Regulations Issued byRoyal Decree No.86/84 of29October 1984andtheUnified
Rules Granting Preferences inGovernment Purchases totheNational Products andtheProducts of
GCC Origin. TheUnified rules were issued videMinisterial Decision No.18\87.
128. Allgovernmentalpurchases,i.e.purchasesbyMinistries,GovernmentDepartmentsandAgencies,
PublicCorporations,GovernmentCompaniesorthosecompaniesinwhichtheGovernment’sshareholding
isnotlessthan51percent(except byMinistry ofDefence andDefence forces), arerequired tobeWT/ACC/OMN/2
Page18
procured through public tendering. However, purchases ofuptoRialOmani 10,000 areexempt from
public tendering.
129. Government procurement issupervised byahigh-level Tender Board. Theresponsibilities
oftheTender Board include thecalling oftenders, receiving offers fromtenderers, evaluating theoffers
andaward ofcontracts. TheTender Board isassisted byvarious tender committees established within
theMinistries andallovertheSultanate ofOman.
130. Contracts forgovernment purchases oflessthanRialOmani 250,000 maybeannounced, vetted
andawarded bytheinternal tender committees within theMinistries. Allcontracts ofRialOmani
250,000 ormore havetobeannounced, processed andawarded bythehighlevelTender Board.
131. There arefourcategories oftenders: limited tenders, localtenders, international tenders and
general tenders.
Limited tenders areopentoparticipation bycompanies which havebeenpre-qualified bytheconcerned
Ministry orDepartment. Such tenders areforgoods orworks ofhighly specialized nature.
Local tenders areopentoparticipation ofthose bidders andcompanies which arealready enrolled in
theCommercial Register andwhose names areonthelistoftheTender Board.
International Tender isopen toallbidders world-wide. Successful bidders arerequired toenrol in
theCommercial Register within onemonth oftheaward ofthecontract.
General tenders arethose announced withtheobjective ofreaching thebestoffer. These caneither
belocally advertised within theSultanate ofOman oradvertised internationally.
132. RoyalDecreeNo.86/84andtheUnifiedRulesrequirethatpreferenceingovernmentprocurement
should begiven tonational products, i.e.products ofOmani origin, provided thesemeettheconditions
andtechnical specifications ofthecontract. Ifproducts ofOmani origin arenotavailable insufficient
quantities ordonotconform totechnical specifications, preference inprocurement shallbegiven to
products ofGCC origin andfinally toproducts offoreign origin.
133. Products ofOmani origin shallbegranted apreference of10percentinprice ascompared
withsimilar foreign products. Products ofOmani origin receive aprice preference of5percentas
compared withproducts ofGCC origin.
134. AllMinistries andGovernment Departments andAgencies arerequired indrawing upthe
contracts ofsupplies, pubic works, maintenance oroperation tomake astipulation thatthecontractors
shallbeobliged togivepreference intheirpurchase ofmaterial andtoolstoOmani products andto
products ofGCC origin inthatorder. Theyshallalsoaccord 10percentand5percentpricepreference
toproducts ofOmani origin andofGCC origin respectively.
(m) Regulation oftrade intransit
135. Transit ofgoods through theterritory oftheSultanate isallowed without anydiscrimination
astotheorigin orsource ofgoods, except thatthecustoms havetherighttoexamine thegoods so
astoensure thatarmsandammunition ornarcotics arenottransported through Oman. Goods intransit
arenotsubject toanyduty.WT/ACC/OMN/2
Page19
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports
136. Thegeneral rateofdutyonmostagricultural products is5percent. Anumber ofagricultural
products arefreeofduty, which include livestock, meat, milk, seeds, flowers andplants, fresh fruits
(excluding bananas) andvegetables, cereals, tea,cooking oilsandfats,sugar etc.Dates attract aduty
of20percent, while bananas aresubject toadutyof25percent. Therateofdutyontobacco and
tobacco products is50percent.
(b) Exports
137. There arenoexport duties onanyagricultural products.
138. TheSultanate ofOman doesnotgrant export subsidies onagricultural products.
(c) Export prohibitions andrestrictions
139. Theapproval oftheMinistry ofAgriculture andFisheries isrequired forexport ofdateseeding
andcertain species offish.
(d) Export credits, export credit guarantees orinsurance programmes
140. There arenoexport credits orexport credit guarantees orinsurance programmes foragricultural
products.
(e) Internal policies
141. TheGovernment oftheSultanate ofOman encourages theagricultural sector byproviding
infrastructure facilities, e.g.irrigation facilities, agricultural extension services andresearch stations.
142. Domestic support programmes consist ofsupply ofsubsidized inputs tosmall farmers, aimed
atpromoting technology transfer. Subsidy isalsoprovided forpurchase ofagricultural machinery,
soastoencourage thefarmers tomechanize agriculture.
5. Policies Affecting Foreign Trade InOther Sectors
143. TheSultanate ofOman wasaparty totheMultifibre Arrangement. Ithasbilateral agreements
withtheUnited States andCanada under which therearequota restrictions onexports ofcertain textile
andclothing items.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property régime
144. Oman isintheprocess ofcompleting procedures forbecoming amember oftheWorld
Intellectual Property Organization following aGovernment decision inJune 1996. Oman hasa
trademarks lawasof1987 andaimstoimplement theUnified Patent System oftheGulfCooperation
Council. Oman hasrecently promulgated anewlawoncopyright protection, videRoyal Decree
No.47/1996. Oman isdetermined toprotect intellectual property rights within itsjurisdiction andmeet
itsinternational obligations.WT/ACC/OMN/2
Page20
(b) Responsible agencies
145. TheMinistryofCommerceandIndustryisresponsibleforpolicyformulationandimplementation
inrespect oftrademarks, patents andcopyrights andrelated rights.
(c) Membership ininternational conventions andregional orbilateral agreements
146. Oman issoontobecome amember oftheWorld Intellectual Property Organization. Itisalso
aparty totheGCC'sUnified Patent System.
(d) Application ofnational andMFN treatment toforeign nationals
147. Oman extends national treatment andMFN treatment toforeign nationals inrespect ofpatents,
trade marks andcopyright andrelated rights.
(e) Feesandtaxes
148. R.O. 25forfiling ofanapplication forregistration ofatrademark.
149. Forcopyrights andrelated rights theimplementing by-laws expected tobeissued before the
endofthisyearwillcover suchmatters.
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
150. Copyrights andrelated rights areprotected under theLawfortheProtection ofCopyrights
issued byRoyal Decree No.47/96. Itprotects authors ofinnovative literary, scientific, technical and
cultural works ingeneral nomatter theirvalue orwhatever bethemethod oftheirutilization orthe
purpose ofauthoring them. Theprotection applies tothefollowing categories.
- books andcomputer programs, including databases, andother writings;
- verbally delivered categories suchaslectures, speeches andsermons;
- theatrical works andmusical plays;
- musical works, whether numbered ornot,andwhether accompanied bywords ornot;
- compilations relating tochoreography andpantomime;
- cinematographic, television, Radio, audio andaudio-visual compilations;
- drawings, paintings, architecture design, sculpture, ornaments andengravings;
- applied arts,bothhandicrafts andindustrial arts;
- illustrations, geographical maps, building maps, compilations related togeography, topography,
architecture andscience;
- folklore;
- thetitleofthecompilation, ifitisofaninnovative nature, andnotacurrent termusedtodenote
thetopic ofthecompilation.
151. Alsotoenjoy theprotection ofthislawarethose whotaketheoriginal author ’spermission
totranslate thematerial intoanother language, orthose whoabridge, amend, modify orexplain the
compilation orotherwise render itnovel inform.
152. Theprotection stipulated intheclause mentioned above shallnotbreach theprotection enjoyed
bytheauthors oftheoriginal material ortheirsuccessors.WT/ACC/OMN/2
Page21
153. TheCopyright Lawprovides therights forfinancial utilization ofthematerial upto50years
afterthedeath oftheauthor. Theperiod isalsoapplicable tojointauthorship material andiscalculated
fromthedeath ofthelastco-author. Thecopyright protection period endsafter25years fromthefirst
dateofpublishing asregards movies, applied artworks, photos, publications under pseudonym and
compilations byjuristic persons.
(b) Trade marks, including service marks
154. Thelawoftrademarks of1987 governs theregistration andprotection oftrade marks. The
periods ofprotection resulting fromtheregistration oftrade marks istenyears. Theregistration can
berenewed. Theregistration canbecancelled ifthetrademark hasnotbeenusedforfiveconsecutive
years unless theowner ofthetrademark submits justification fornotusing it.
155. TheownerofatrademarkhastoapplytotheMinistryofCommerceandIndustryforregistration
ofatrademark. After approval bytheMinistry, thetrademark isregistered inaRegister attheMinistry
ofCommerce andIndustry giving allnecessary particulars.
(c) Patents
156. TheUnified Patent System ofGulfCooperation Council, which Oman intends tofollow after
theissuance ofitsimplementing by-laws byGCC Secretariat, aimsatsecuring within theGCC member
States thefullprotection ofinventions. TheMinistry ofCommerce andIndustry isresponsible for
matters relating topatent protection. TheLawmakes nodistinction between GCC nationals and
non-nationals inrespect ofgranting patents.
157. Theterms ofapatent shallbevalidfor15years fromthedateofitsgrant. Thepatent holder
canrequest toextend thevalidity ofthepatent foranadditional fiveyears provided thattheextension
isrequested within thelast90daysoftheoriginal term.
158. TheUnifiedPatentSystemoftheGCCdoesnotprovideprotectionforplantvarietiesandmethod
ofsurgical ortherapeutic treatment ofthehuman oranimal body.
3. Measures toControl Abuse ofIntellectual Property Rights
159. TheGovernment may, inpublic interest, decide topublish orreproduce acompilation which
wasnotpublished bytheheirsorsuccessors oftheauthor despite anofficial request. Heirs orsuccessors
shallbefairly compensated.
4. Enforcement
160. Fortrademarks violations, aperson shallbepunishable withimprisonment foratermnot
exceeding three years andshallbeliable toafinenotexceeding R.O. 500oroneofthetwopenalties.
Articles 32-34 oftheTrade Marks Lawalsoprovide forpreventive measures torestrain theimport
andcirculation ofviolative goods. Itisalsoprovided thatgoods inviolation ofatrade mark maybe
confiscated anddestroyed.
161. Withregard tocopyright violations, punishment willbemeted outbyimprisonment foraperiod
notexceeding twoyears and/or afinenotexceeding R.O. 2000. Thecourts mayorder confiscation
ofpirated copies andmaterials usedforsuchpurposes aswellasclosure ofpremises oftheoffenders.
162. Aggrieved parties haverecourse totheAuthority forSettlement ofCommercial Disputes.WT/ACC/OMN/2
Page22
5. Laws, Decrees, Regulations andOther Legal Acts
163. Thelegalactsrelating tointellectual property rights include thefollowing:
- theTrade Marks Law;
- theLawfortheProtection ofCopyrights;
- theUnified Patent System oftheGCC.
6. Statistical DataonApplication forandGrant ofIntellectual Property Rights.
TRADE MARK STATISTICS
Year Filed Applications Granted Registration
1989 3663 -
1990 1474 10
1991 1295 521
1992 1459 647
1993 1429 632
1994 1638 635
1995 1818 530
VI. TRADE-RELATED SERVICES REGIME
1. General
164. Oman ’sservices sector régime follows thefree-market economic philosophy. Oman ’sexport
ofcommercial services isverysmall, whereas itsimports ofservices isverylarge. Hence itisanet
importer ofservices.
165. With respect tothemovement ofnatural persons, Oman hasaliberal attitude. Thenumber
offoreign workers andprofessionals working inboththepublic andprivate sectors inOman is
approximately 670,000 ofdifferent nationalities.
166. Company formation andoperation aregoverned bytheCommercial Companies Lawwhich
provides forsixkinds ofcompanies inOman, namely general partnerships, limited partnerships, joint
stockcompanies,limitedliabilitycompanies,jointventuresandholdingcompanies.Foreignparticipation
inthevarious service sectors isgoverned bytheForeign Capital Investment Law. There arealsosector
specific lawssuchasBanking Law,theInsurance Law,LawonOrganization ofEngineering consultancy
offices, Commercial Agency Lawtoname afew.
2. Policies Affecting Trade inServices
(a) Government departments, agencies orother bodies withauthority
167. TheMinistry ofCommerce andIndustry isresponsible formatters related tomostbusiness
servicesandprofessionalservices,insuranceservices,tourismandtravelrelatedservicesandengineering
services. Thesame Ministry hasjurisdiction overmatters relating tocommercial presence andfor
participation offoreign capital inservice enterprises.WT/ACC/OMN/2
Page23
168. TheCentralBankofOmanandtheMinistryofFinancehaveauthorityinrelationtotheFinancial
Services.
169. TheMinistry ofPosts, Telegraphs andTelephones hasjurisdiction overpostal services and
telecommunication services. TheMinistry ofCommunications isresponsible forCivil Aviation and
landandseatransportation.
170. TheMinistry ofHealth andtheMinistry ofEducation haveauthority respectively formedical
services andeducational services.
171. TheMinistry ofSocial Affairs andLabour hasauthority overmovement ofnatural persons.
(b) Judicial, arbitral oradministrative tribunals affecting trade inservices
172. Disputes withrespect totradeinservices arenormally dealtwithbyarbitration attheappropriate
Ministry concerned. TheOman Chamber ofCommerce andIndustry canalsoarbitrate inaninformal
andunofficial wayinthecaseofcommercial disputes. There isalsothealternative toreferanydispute
totheAuthority fortheSettlement ofCommercial Disputes which hasjurisdiction overalldisputes
relating tocommercial matters.
(c) Qualification requirements andprocedures
173. Article 19oftheOman Labour Lawstates thatallworkers must possess requisite technical
qualifications forthetypeofactivity theyreengaged in.Qualifications offoreign service suppliers
suchasdoctors, engineers andaccountants arerecognized byOman.
(d) Monopolies andexclusive service suppliers
174. TheGovernment istheexclusive service supplier oftelevision andradio, postal services, basic
telecommunications andpublic utilities suchaswater andelectricity.
(e) Safeguard measures
175. Oman doesnotcurrently haveanyspecific safeguard measures astheyapply totradeinservices.
(f) International transfers andpayments
176. Oman does nothave anyrestrictions oninternational transfers andpayments forcurrent
transactions ofservices byresidents ornon-residents.
(g) Capital transactions
177. Oman doesnothaveexchange restrictions oncapital receipts orpayments byresidents ornon
residents.
(h) Government procurement
178. TheRoyal Decree No.86/84 setsthesystem forGovernment tenders.According tothatlaw,
allitems andjobsrequired byGovernment units orfortheimplementation ofGovernment projects
aresubject topublic tendering. Defence contracts andprojects are,however, excluded from this.
Price preference isgiven toOmani companies andtoGCC companies inevaluating bids.WT/ACC/OMN/2
Page24
179. Contracts andworks below 250,000 Rials maybeannounced, vetted andawarded byinternal
committees within theconcerned Ministry. Forcontracts below 10,000 Rials theconcerned Ministry
mayassign theworks foranycontract without theneedfortendering.
(i) Aids, grants ,subsidies, taxincentives orpromotion schemes
180. There arenospecial aids,grants, subsidies, taxincentives orpromotion schemes thatdirectly
affect trade inservices.
3. Market Access andNational Treatment
(a) Limitations onthenumber ofservice suppliers
181. There arenolimitations onthenumber offoreign service suppliers.
(b) Limitations onthetotalvalue service transactions orassets
182. There arenolimitations onthetotalvalue ofservice transactions orassets.
(c) Limitations onthetotalnumber ofoperations ortotalquantity ofoutput
183. There arenolimitations onthetotalnumber ofservice operations orthetotalquantity ofservice
output, withtheexception ofservice sectors reserved fortheState. However, theCental BankofOman
imposes restrictions onthenumber ofbranches thataparticular foreign bankcanoperate inOman.
(d) Limitations onthetotalnumber ofnatural persons employed inparticular sectors
184. TheLabour Lawof1973 governs theemployment ofOmanis andnon-Omanis butpriority
should begiven toOmanis toemploy them onaswide ascale aspossible. Recently theMinistry
ofSocial Affairs andLabour hassetpercentages forOmanization tobeachieved incertain service
sectors bytheendof1996 asfollows:
- Transport, Storage andCommunication Sector: 60%
- Finance, Insurance andRealEstate Sector: 45%
- Hotels andRestaurants Sector: 30%
- Wholesale andRetail trade Sector: 20%
- Construction Sector: 20%
185. Foreign workers arerequired toobtain work permits fromtheMinistry ofSocial Affairs and
Labour.
(e) Restriction on,orrequirement of,specific types oflegalentities
186. There aresixtypes ofcorporate entities inOman. They are,asmentioned intheCommercial
Companies Law, theGeneral Partnership, Limited Partnership, JointVentures, JointStock Company,
Limited Liability Company, andHolding Company. Each ofthese forms ofcompanies isavailable
toforeign investors subject totheForeign Capital Investment Law.
(f) Limitations ontheparticipation offoreign capital
187. Foreign capital participation isgoverned bytheForeign Capital Investment Lawwhich allows
aforeign investor toown49percentshare inacompany withacapital ofatleastRO150,000
(US$ 390,000); upto65percentifapproved bytheMinister ofCommerce andIndustry upon theWT/ACC/OMN/2
Page25
recommendation oftheForeign Capital Investment Committee; and100percentshare ifthetotalcapital
oftheproject isRO500,000 (US$ 1.3million) anditcontributes tothedevelopment ofthenational
economy. This level ofownership, however, needs tobeapproved bytheCabinet upon a
recommendation from theMinister ofCommerce andIndustry.
188. InthecaseofAccounting andAuditing Companies, foreign companies musthavealocalOmani
partner andtheshare oftheOmani partner shallnotbelessthan35percentofthetotalcapital.
(g) Measures providing forlessthannational treatment
189. Ingeneral, foreign companies andindividuals arenotpermitted toownfreeholdlandexcept
byroyal decree. They areallowed tobuild work camps byspecial permission, butthese must be
oftemporary nature. However, landisavailable ona50-year lease which isextendable.
4. Exceptions toMost Favoured Nation Treatment
190. Under Article 8oftheUnified Economic Agreement oftheGCC, member countries areto
agree onruleswhich would ensure national treatment forGCC nationals asfarasfreedom ofmovement,
work andresidence, rightofownership andfreedom ofexercising economic activity, including service
activities, areconcerned. Oman, together withother GCC members, isintheprocess ofimplementing
thisagreement.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade inServices
191. TheSultanate ofOman maintains bilateral trade andeconomic agreements withmany Arab
andnon-Arab countries, listed inAnnex 8.These agreements aregeneral goodwill-type agreements
based onmost-favoured-nation (MFN) treatment. Theagreements donotcontain anybinding
commitments, anycountry-specific quotas forimports orexports oranypreferential tariff treatment.
Most ofthese agreements provide forjointcommissions which meet periodically. Private sector
representatives participate inthemembership ofjointcommissions.
2. Economic Integration, Customs Union andFree-Trade Area Agreements
192. TheSultanate ofOman isamember oftheGulfCooperation Council which alsoincludes Saudi
Arabia, Bahrain, Kuwait, Qatar andtheUnited Arab Emirates. TheGCC countries havesigned a
Unified Economic Agreement inNovember 1981 withtheobjective ofdeveloping, expanding and
fostering economic ties.
193. In1983, theGCC countries established afree-trade area. Movement ofgoods ofGCC origin
isfreeoftariffs andother restrictions inallGCC countries.
194. TheUnified Economic Agreement encourages jointventure projects, aimsatcreating harmony
indevelopmentplansandaimsatacommoninvestmentpolicyandcoordinationoffinancialandmonetary
policies.WT/ACC/OMN/2
Page26
3. Labour Market Integration Agreements
195. TheUnified Economic Agreement oftheGCC countries provides forlabour market integration
asoneofitsobjectives, andthusaimstoprovide forfreemovement oflabour, residence andthefreedom
toengage ineconomic activities.
4. Multilateral Economic Cooperation, Membership intheMultilateral Economic Organizations
196. TheSultanateofOmanisamemberofseveralmultilateraleconomicorganizationswhich,among
many otherthings, aimtopromote increased tradeandeconomic cooperation among member countries.
These institutions include, among many others, theWorld Bank, theInternational Monetary Fund,
theUNCTAD, theOrganization ofIslamic Conference, theIslamic Development Bank andtheArab
Monetary Fund.WT/ACC/OMN/2
Page27
ANNEX 1
Ministry ofDevelopment oftheSultante ofOman isresponsible forforeign trade statistics
forgoods andservices.
Statistics arepublished intheStatistical Year Book bytheInformation andDocumentation
Centre oftheMinistry ofDevelopment.
Statistical Data; Tables attached
1(a) GDP
1(b) Government Budget
1(c) GNP percapita
1(d) CostofLiving Price Series
1(e) Foreign Exchange
1(f) Current Account Balance
1(g) Distribution ofLabour Force
1(h) Summary ofGovernment Finances
1(I) External Debt andDebt Service
1(j) Government Domestic Debt
1(k) Merchandize Trade Balance
1(l) Composition ofNon-Oil Exports
1(m) Composition ofImports
1(n) Direction ofImports
1(o) Direction ofExportsWT/ACC/OMN/2
Page28
TABLE 1(a)
Gross Domestic Product
Current Prices Constant 1988 Prices
Year Omani Rial
(Million)Growth Rate Omani Rial(Million) Growth Rate
1990 4492.9 24.7 3597.7 9.2%
1991 4360.8 -2.9% 3816.4 6.0%
1992 4787.8 9.8% 4140.5 8.5%
1993 4803.6 0.3% 4395.0 6.1%
1994 4967.3 3.4% 4564.0 3.8%
1995 5288.2 6.5% 4772.9 4.6%
TABLE 1(b)
Government Budget
(Million Omani Rial)
Revenues* Expenditures
1990 1876.3 1887.4
1991 1585.1 1868.1
1992 1680.2 2258.7
1993 1723.9 2242.3
1994 1757.4 2252.9
1995 1851.6 2331.0
* After transfers
TABLE 1(c)
Gross National Product
Items 1990 1991 1992 1993 1994 1995
Gross National
Product (Mil. RO)4085.9 3937.8 4178.9 4169.6 4202.3 4488.2
GNP PerCapita
(RO)2511.6 2234.9 2208.4 2066.2 2024.2 2102.2
Exports ofGoods &
Services (Mil. RO)2122 1878 2141 2068 2136 2337
Exports ofGoods &
Services (Mil. RO)1240 1515 1702 1828 1726 1879WT/ACC/OMN/2
Page29
TABLE 1(d)
CostofLiving Prices Series
Year Comsumer Price Index
(1990=100)%Change
1990 100 9.9%
1991 104.6 4.6%
1992 105.6 1.0%
1993 106.9 1.2%
1994 106.1 -0.7%
1995 104.7 -1.3%
TABLE 1(e)
Foreign Exchange Rate
Year Dollar (Avg) SDR (Avg)
1990 0.38 0.547
1991 0.38 0.55
1992 0.38 0.5287
1993 0.38 0.5281
1994 0.38 0.5613
1995 0.38
TABLE 1(f)
Current Account Balance
Million Omani Rials Million USDollar
Year Trade
BalanceServices
&
TansfersCurrent
Account
BalanceTrade
BalanceServices &
TransfersCurrent Account
Balance
1990 1042 -567 475 710 -1475 1235
1991 594 -654 -60 1545 -1701 -156
1992 636 -806 -170 1654 -2096 -442
1993 411 -805 -394 1069 -2094 -1025
1994 588 -943 -355 1529 -2453 -923
1995 648 -990 -342 1685 -2575 -889WT/ACC/OMN/2
Page30
TABLE 1(g)
Distribution ofLabour Force intheLabour Market (15years andabove) PerEconomic Sector
(1993)
No.(000)
Economic Sectors Percentage
OmaniTotal Non-Omani Omani
Agriculture 25.6 54,075 40,222 13,853
Fishing 93.5 8,707 567 8.140
Mining &Quarrying 57.4 14,067 59991 8,076
Manufacturing 7.0 60,037 55,825 4,212
Electricity, Gas&Water
Connection21.3 4,423 31481 942
Construction 4.1 107,703 103,294 4,412
Wholesale Retail Trade &
CarRepairs12.7 88,863 77,568 11,295
Hotels &Restaurants 6.3 14,379 13,473 906
Transport Storage &
Communication46.6 24,328 12,989 11,339
Financial Intermediaries 67.1 7,144 2,349 4,795
RealEstate andRented
Services10.6 10,000 8,938 1,062
Public Administration &
Defence84.0 160,324 25,610 134,714
Education 48.5 36,593 18,836 17,757
Health &Social Work 42.9 16,163 9,233 6,930
Community &Personal
Services38.9 23,174 14,148 9,026
Domestic Services 0.6 33,494 33,279 215
Non-Regional
Organizations &Agencies26.1 959 709 250
NotClassified 35.2 5,842 3,786 2,056
Total 35.81 430,295 239.980 239,980WT/ACC/OMN/2
Page31
TABLE 1(h)
Summary ofGovernment Finances, 1991 -1995
(InMillions ofRials Omani)
Actuals Budget Prov. Budget
1991 1992 1993 1994 1995 1995 1996
Revenue11,570.4 1,661.0 1,709.5 1,737.0 1,823.9 1,844.2 1,921.0
OilRevenue 1,241.7 1,277.2 1,304.0 1,312.8 1,353.7 1,374.8 1,474.4
Non-Oil Revenues 328.7 383.8 405.5 424.2 470.2 469.4 446.6
Ofwhich
TaxRevenues 65.8 74.3 77.2 87.3 123.9 101.5 108.0
Grants (Net) 1.3 -6.0 7.4 9.6 10.3 10.7
Expenditures 1,863.8 2,216.4 2,211.4 2,242.7 2,155.1 2,265.0 2,152.0
Current 1,491.5 1,775.0 1,758.7 1,799.8 1,740.7 1,852.8 1,798.0
Civil2772.0 919.0 932.1 936.1 981.0 993.0 1,003.0
Total Wage Bill 374.8 441.5 467.1 480.0 501.1 501.2 520.6
Goods &Services 266.0 305.5 305.9 299.8 300.7 321.8 303.6
Subsidies &Transfers 61.8 73.5 58.8 56.3 53.7 62.2 58.8
Interest 69.4 98.5 100.3 100.7 125.5 107.8 120.0
Defence3643.3 773.8 734.2 775.3 667.0 770.2 699.0
PDO Operations476.2 82.2 92.4 87.7 92.7 89.6 96.0
Capital 372.3 441.4 452.7 442.9 414.4 412.2 354.0
Civil 221.8 290.7 288.7 282.7 250.0 252.0 163.0
PDO Capital4142.3 142.3 156.5 151.9 155.4 145.8 179.0
GasDevelopment 8.2 8.4 7.5 8.3 9.0 14.4 12.0
NetLending &Equity
Participation -10.4 23.2 16.6 -10.2 -19.2 -1.6 -13.0
Domestic -9.6 18.0 -2.2 -12.9 -18.2 -2.3
Foreign -0.8 5.2 18.8 2.7 -1.0 0.7
Official Budget Surplus/
Deficit (-)_-281.7 -584.6 -511.1 -485.9 -301.7 -408.5 -218.0
SGRF Receipt 282.1 288.5 143.7 56.6 220.1
OilRevenue 193.0 195.2 16.3 9.6 141.8
Income Earned 90.0 76.7 71.1 55.0 47.7
Realized Capital Gains -0.9 16.6 56.3 -8.0 30.6
Contingency Fund Receipts 82.0 57.1 1.8
OilRevenue 82.0 54.1 0.6
Income Earned 3.0 1.2
OilFund Receipts 11.9 39.8 33.7
Timing Differences -40.6 39.6 -34.1 10.4 -19.0
Overall Surplus/Deficit 41.8 -199.4 -387.8 -379.1 -301.7 -173.7 -218.0
Financing -41.8 199.4 387.8 379.1 301.7 173.7 218.0
Domestic -32.0 255.1 177.8 85.1 -37.5WT/ACC/OMN/2
Page32
Actuals Budget Prov. Budget
1991 1992 1993 1994 1995 1995 1996
Banking System -57.5 181.7 139.5 15.4 -43.7
Government Proper 87.8 79.9 -57.7 -31.8 -16.1
SGRF7-145.3 101.8 197.2 47.2 -27.6
Nonbanks825.5 73.4 38.3 69.7 6.2
SGRF Foreign Holdings -64.3 -187.2 201.3 163.4 198.7
Foreign 85.4 104.9 -30.0 133.7 -1.0
Loans (Net)584.9 40.0 -95.0 167.7 -54.2
Bond Sales Abroad 0.5 64.9 65.0 -34.0 53.2
Discrepancy -30.9 26.6 38.7 -3.1 13.5
Memorandum Items:
Total Revenues 1,934.5 2,006.6 1,866.9 1,833.4 1,823.9 2,098.0 1,921.0
Total OilRevenues 1,516.7 1,526.5 1,332.8 1,362.2 1,353.7 1,549.9 1,473.0
Total Non-Oil Revenues 417.8 480.1 534.1 471.2 470.2 549.1 448.0
Total Expenditures 1,853.4 2,239.6 2,228.0 2,232.5 2,135.9 2,263.4 2,139.0
GDP atMarket Prices 3,917.4 4,421.8 4,370.5 4,471.6 4,471.6 4,801.1 4,816.0
(Inpercent ofGDP)
Surplus/Deficit 1.1 -4.5 -8.9 8.4 -4.8 -3.3 -4.5
Total Revenues949.4 45.4 42.7 41.0 42.7 43.7 39.9
Total OilRevenues 38.7 34.5 30.5 30.5 31.0 32.3 30.6
Total Non-Oil Revenues 10.7 10.9 12.2 10.5 11.7 11.4 9.3
TaxRevenues 1.7 1.7 1.8 2.0 2.8 2.1 2.2
Total Expenditures 47.3 50.6 51.0 49.8 47.8 47.2 44.4
Current Expenditures 37.1 40.1 40.2 40.2 39.9 38.6 37.7
Capital Expenditure 9.5 10.0 10.4 9.9 9.3 8.6 7.4
(Growth rateinpercent)
Total Revenues -8.6 3.7 -7.0 -1.8 4.2 14.4 -8.4
Total OilRevenues -10.9 0.6 12.7 2.2 1.7 13.8 -5.0
Total Non-Oil Revenues 0.7 14.9 11.2 -11.8 11.5 16.5 -18.4
TaxRevenues 19.9 12.9 3.9 13.1 41.9 16.3 0.6
Total Expenditures -0.9 20.8 -0.5 0.0 -4.1 1.4 -5.5
Current Expenditures -6.2 19.0 -0.9 2.3 -3.3 2.9 -3.0
Capital Expenditure 40.1 18.6 2.6 -2.2 -6.4 -6.9 -14.1
1Excludes Receipts assigned totheState General Reserve Fund (SGRF) andtheContingency
Fund.
2Includes defense andpolice capital expenditures.
3Includes non-project capital expenditure.
4Sixty percent ofPDO Operating andCapital expenditures.
5Corresponds tothebalance ofpayments entries.
6Banking sector dataincluding Contingency Fund.
7Non-bank holdings ofDevelopment Bonds byresidents andnon-residents.
8Includes oilrevenue assigned totheSGRF. Income fromSGRF andtheContingency Fund.
9Includes adjustments fornonpayment ofpension contribution.WT/ACC/OMN/2
Page33
TABLE 1(i)
External Public Debt andDebt Service 1991 -1995
(InMillions ofRials Omani)
Description 1991 1992 1993 1994 Prov.
1995
Medium andLong-term Loans1
Opening Balance Outstanding
(disbursed)847.1 932.0 908.6 882.7 993.3
NetDrawing during theyear 84.9 -23.4 -25.9 110.6 3.2
Disbursement 227.1 105.8 136.7 254.3 119.2
Commercial Banks 173.0 0.0 19.6 134.1
Other 54.1 105.8 117.1 120.2 119.2
Amortization -142.2 -129.2 -162.6 -143.7 -116.0
Commercial Banks -80.6 -84.9 -122.6 -85.8 -62.2
Other -61.6 -44.3 -40.0 -57.9 -53.8
Closing Balance Outstanding 932.0 908.6 882.7 993.3 996.5
Interest 62.0 75.2 59.4 57.0 63.6
Commercial Banks 43.8 51.3 36.7 30.9 34.6
Other 18.2 23.9 22.7 26.1 29.0
Short Term Loans263.4 7.7 59.2
Stock atend-year
Interest 7.4 0.7 0.8 1.0 1.6
Development Bonds
(held bynon-residents)
Opening Balance 0.5 65.4 130.4 96.4
NetSales 0.5 64.9 65.0 -34.0 53.2
Sales 0.5 64.9 65.0 7.3 75.7
Repurchase -41.3 -22.5
Closing Balance 0.5 65.4 130.4 96.4 149.6
Interest 0.3 7.2 10.4 8.6
Total External Debt 932.5 1,037.4 1,020.8 1,148.9 1,146.1
(end-year)3
Debt Service 2116 205.4 230.0 253.4 212.3
Amortization Payments 142.2 129.2 162.6 185.0 138.3
Interest Payments 69.4 76.2 67.4 68.4 73.8
1Maturities exceeding oneyear
2Maturities ofoneyearorless
3Stock ofmedium andlong-term loans short-term anddevelopment bonds outstanding heldby
non-residents.WT/ACC/OMN/2
Page34
TABLE 1(j)
Government Domestic Debt andRelated Interest Payments, 1991 -1995
1991 1992 1993 1994 Prov.
1995
Total Domestic Debt 185.8 320.3 320.8 353.9 343.6
Treasury Bills
Opening Balance 32.7 97.3 159.8 110.2 34.5
(Commercial Banks)
NetSales 64.6 62.5 -49.6 -75.7 -14.4
Closing Balance 97.3 159.8 110.2 34.5 20.1
Development Bonds
Opening Balance 40.1 113.5 151.8 221.5
NetSales 40.1 73.4 38.3 69.7 6.2
Sales 40.1 73.4 50.2 92.3 45.9
Repayment -11.9 -22.6 -39.7
Closing Balance 40.1 113.5 151.8 221.5 227.7
Credit from theCentral
Bank32.8 27.5 32.7 96.5 85.5
Credit from theCommercial
Banks15.6 19.5 26.1 1.4 10.3
Total Interest Payments 4.0 19.4 20.0 21.0 27.3
Treasury Bills 3.8 7.3 7.3 2.7 1.3
Development Bonds 0.2 3.2 10.7 14.2 18.4
Other 8.9 2.0 4.1 7.6WT/ACC/OMN/2
Page35
TABLE 1(k)
Merchandise Trade Balance
(million Omani Rial)
Year Exports Imports Balance
1990 2116 1076 1040
1991 1874 1279 595
1992 2135 1500 635
1993 2065 1652 413
1994 2132 1543 589
1995 2333 1684 649WT/ACC/OMN/2
Page36
TABLE 1(l)
Composition ofNon-oil Exports*
1990 1991 1992 1993 1994 1995
Food &Live Animals ofwhich 27.2 28.1 30.8 39.4 42.8 52.4
Live Animals 6.7 7.4 5.9 6.3 8.2 7.5
Fish&FishPreparations 17.3 13.3 13.4 19.8 19.0 23.6
Fruits &vegetables 3.0 3.3 5.5 5.4 5.7 5.9
Beverages tobaco 0.3 1.4 1.7 1.3 1.4 2.1
Crude Materials (Except Fuels) 0.0 1.6 2.1 3.4 4.5 7.3
Minerals Fuels, Lubricants: Related Materials 0.0 7.9 9.3 12.8 13.9 16.6
Animal &Vegetable OilsandFats 0.0 2.2 3.2 4.4 6.3 8.3
Chemicals 0.0 4.9 5.0 6.2 4.7 4.9
Manufactured Goods (ofwhich) 12.6 19.1 21.8 28.9 36.2 43.8
Non-Ferrous Metal 12.6 16.0 17.2 22.3 29.6 31.7
Machinery &Transport Equipment 0.0 0.8 2.0 2.8 4.3 5.8
Miscellaneous Manufactured items (ofwhich) 0.0 12.9 20.8 23.3 31.3 41.0
Clothing 0.0 9.9 16.8 18.9 25.2 30.7
Other 28.7 0.0 0.0 0.0 0.0 0.0
TOTAL 68.9 79.1 96.7 122.5 145.4 182.2
(%ofTotal)
Food &Live Animals 39.4 35.5 31.9 32.1 29.4 36.0
Live Animals 9.7 9.4 6.1 5.1 5.6 5.2
Fish&fishpreparations 25.1 16.8 13.9 16.2 13.1 16.2
Fruits &vegetables 4.3 4.15. 5.7 4.45. 3.9 4.1
Beverages Tobacco 0.5 1.8 1.7 1.1 0.9 1.4
Crude Materials (Except Fuels) 0.0 2.1 2.2 2.8 3.1 5.0
Minerals Fuels, Lubricants: Related Materials 0.0 10.0 9.6 10.4 9.6 11.4
Animal &Vegetable OilsandFats 0.0 2.8 3.3 3.6 4.3 5.7
Chemicals 0.0 6.2 5.2 5.0 3.3 3.4
Manufactured Goods (ofwhich) 18.4 24.2 22.5 23.6 24.9 30.1
Non-Ferrous Metal 18.4 20.3 17.8 18.2 20.4 21.8
Machinery &Transport Equipment 0.0 1.0 2.1 2.3 3.0 4.0
Miscellaneous Manufactured items (ofwhich) 0.0 16.4 21.5 19.0 21.5 28.2
Clothing 0.0 12.5 16.8 15.4 17.3 21.1
Other 41.7 0.0. 0.0 0.0 0.0 0.0
* Excluding Re-Exports
Source: Statistical Year Book, Ministry ofDevelopmentWT/ACC/OMN/2
Page37
TABLE 1(m)
Composition ofImports*
1990 1991 1992 1993 1994 1995
Food &LiveAnimals 163.7 171.1 180.7 187.4 193.3 220.2
Beverages &Tobacco 19.8 49.4 88.4 93.7 96.8 87.8
Crude Materials (Except Fuels) 12.9 14.2 88.4 93.7 96.8 87.8
Mineral Fuels, Lubricants &
Related Materials 40.7 21.1 26.7 47.3 15.1 24.7
Animal &Vegetable OilsandFats 3.3 5.3 6.8 8.1 9.7 13.6
Chemicals 65.5 74.1 81.4 92.7 90.8 108.2
Manufactured Goods 167 214.3 230.1 237 215.3 252.2
Machinery &Transport Equipment 373 514 633.5 683.9 642.1 643.0
Passenger Motor cars 111.3 145.4 230.6 243.3 192.6 156.1
Miscellaneous Manufactured Items 118.6 127.4 138 129.9 155.8 166.9
Other 66.6 37.3 44.9 69.3 49.1 72.3
TOTAL 1,031.1 1,228.2 1449.2 1,581.8 1,505.1 1,633.5
(%ofTotal)
Food &LiveAnimals 15.9 13.9 12.5 11.8 12.8 14.6
Beverages &Tobacco 1.9 4.0 6.1 5.9 6.4 5.8
Crude Materials (Except Fuels) 1.3 1.2 1.3 2.1 2.5 3.0
Mineral Fuels, Lubricants &
Related Materials 3.9 1.7 1.8 3.0 1.0 1.6
Animal &Vegetable OilsandFats 0.3 0.4 0.5 0.5 0.6 0.9
Chemicals 6.4 6.0 5.6 5.9 6.0 7.2
Manufactured Goods 16.2 17.4 15.9 15.0 14.3 16.8
Machinery &Transport Equipment 36.2 41.8 43.7 43.2 42.7 42.7
Passenger Motor cars 10.8 11.8 15.9 15.4 12.8 10.4
Miscellaneous Manufactured Items 11.5 10.4 9.5 8.2 10.4 11.1
Other 6.5 3.0 3.1 4.4 3.3 4.8
* doesnotinclude un-recorded importsWT/ACC/OMN/2
Page38
TABLE 1(n)
Direction ofImports*
1990 1991 1992 1993 1994 1995
GCC 277.7 356.0 449.8 510.9 486.3 468.2
UAE 239.0 310.8 404.8 443.7 438.1 389.2
Other Arab Countries 2.3 4.6 3.9 6.1 4.3 6.9
Egypt 1.3 2.6 1.8 1.4 1.1 1.5
Jordan 0.3 0.8 0.7 1.3 0.8 1.3
Africa 3.7 1.5 2.2 4.0 6.0 3.3
Asia 283.1 377.1 471.4 488.0 474.1 496.4
Japan 175.1 251.5 337.2 330.6 299.5 257.6
India 29.0 33.3 36.7 40.7 47.0 54.4
Korea 9.9 12.6 19.6 29.4 19.5 41.9
America 102.1 102.8 111.7 153.4 114.5 131.6
USA 96.1 93.8 98.8 127.6 101.4 106.2
Eastern Europe 5.1 3.1 2.1 2.4 6.8 4.9
Western Europe 326.1 354.6 375.0 362.0 375.3 474.2
Germany 50.0 64.2 77.1 69.8 73.9 82.9
Oceania 28.0 28.3 33.2 55.0 38.2 48.3
Australia 23.0 23.0 28.8 50.8 33.6 44.0
Total 1030.0 1228.0 1449.3 1581.8 1505.5 1633.8
(%oftotal)
GCC 26. 29.0 31.0 32.3 32.3 28.7
UAE 23. 25.3 27.9 28.1 29.1 23.8
Other Arab Countries 23.8 0.4 0.3 0.4 0.3 0.4
Egypt 0. 0.2 0.1 0.1 0.1 0.1
Jordan 0. 0.1 0.0 0.1 0.1 0.1
Africa 0. 0.1 0.2 0.3 0.4 0.2
Asia 27. 30.7 32.5 30.9 31.5 30.4
Japan 17. 20.5 23.3 20.9 19.9 15.8
India 2. 2.7 2.5 2.6 3.1 3.3
Korea 1. 1.0 1.4 1.9 1.3 2.6
America 10.1 8.4 7.7 9.7 7.6 8.1
USA 9. 7.6 6.8 8.1 6.7 6.5
Eastern Europe 0.1 0.3 0.1 0.2 0.5 0.3
Western Europe 31.1 28.9 25.9 22.9 24.9 29.0
Germany 4.9 5.2 5.3 4.4 4.9 5.1
Oceania 2.3 2.3 2.3 3.5 2.5 3.0
Australia 2.3 1.9 2.0 3.2 2.2 2.7
* Does notinclude recorded imports.WT/ACC/OMN/2
Page39
TABLE 1(o)
Direction ofExports*
(million current R.O.)
1993 1994 1995
GCC 219.9 243.1 253.9
UAE 194.3 211.1 218.9
Other Arab Countries 10.0 10.2 8.6
Egypt 1.0 1.2 1.8
Jordan 0.6 0.6 0.8
Africa 33.5 34.6 48.4
Asia 137.1 174.8 140.0
Japan 9.3 6.3 10.0
India 7.7 9.4 10.5
Korea 4.8 3.6 4.2
America 16.4 21.1 29.6
USA 16.2 20.6 29.3
Eastern Europe 0.5 0.4 2.4
Western Europe 18.2 19.5 20.5
Germany 1.4 1.1 1.8
Oceania 7.3 0.3 0.6
Australia 7.2 0.3 0.5
Total 442.9 504.0 504.0
(%ofTotal)
GCC 49.7 48.2 50.4
UAE 43.9 41.9 43.4
Other Arab Countries 2.3 2.0 1.7
Egypt 0.2 0.2 0.4
Jordan 0.1 0.1 0.2
Africa 7.6 6.9 9.6
Asia 31.0 34.7 27.8
Japan 2.1 1.3 2.0
India 1.7 1.9 2.1
Korea 1.1 0.7 0.8
America 3.7 4.2 5.9
USA 3.7 4.1 5.8
Eastern Europe 0.1 0.1 0.5
Western Europe 4.1 3.9 4.1
Germany 0.3 0.2 0.4
Oceania 1.6 0.1 0.1
Australia 1.6 0.1 0.1
*Includes Non-oil export +re-exportWT/ACC/OMN/2
Page40
ANNEX 21
1. Laws andlegalactsregulating theactivity ofthecustoms authorities: responsible agencies
TheCustoms Regulation Law (TheCustoms Act)-Royal Decree No.22/78
Thecompetent authority isRoyal Oman Police represented bytheInspector General ofPolice
andCustoms.
2. Laws andLegal actsrelating tonon-tariff regulation ofimports, exports andtrade intransit,
rules oforigin: responsible agencies
TheCustoms Law(Schedule I)specifies prohibitions onimports (prohibited items)
Theresponsible authority istheRoyal Oman Police.
Royal Decree No.52/74 inrespect ofremission/refund ofcustoms dutyonimported goods which are
subsequently exported.
Theresponsible agency istheMinistry ofCommerce andIndustry.
3. Laws andregulations relating toforeign investment: responsible agencies
Royal Decree No.102/94- TheForeign Capital Investment Law
Royal Decree No.57/93 -Rules Regulating Investment byGCC Nationals.
TheMinistry ofCommerce andIndustry istheresponsible agency forimplementing theabove
Royal Decrees.
4. Other lawsandlegalactsdealing witheconomic issues thataffect trade: responsible agencies
LawfortheOrganization andEncouragement ofIndustry, 1978.
Royal Decree No.40/87 ontheFinancial Support ForthePrivate Sector intheFields ofIndustry and
Tourism.
TheOman Commercial Law, 1990.
TheCommercial Companies Law, 1974.
LawofCommercial Agencies, 1977.
Royal Decree No.74/90 inrespect ofSpecifications andMeasurements (standards).
Trade Marks Law, 1987.
Royal Decree No.47/96 onLawfortheProtection ofCopyrights.
1Theauthentic textofLaws andlegalactsisinArabic. Theunofficial, informal English versions
areavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.WT/ACC/OMN/2
Page41
TheMinistry ofCommerce andIndustry istheresponsible agency fortheabove mentioned
lawsandregulations.
5.(a) Existinglaws,regulationsoradministrativeguidelineswhichsignificantlyaffecttradeinservices
TheBanking Law, 1974.
TheInsurance Companies Law, 1979.
Regulation ofTravel andTourism Offices-Royal Decree No.12/88.
Regulation ofAccounting andAuditing Profession Law-Royal Decree No.7/86.
Regulation ofEngineering Consultancy Offices Law-Royal Decree No.20/94.
Muscat Securities Market Law-Royal Decree No.53/88.
Regulation ofBrokerage Activities inRealEstate Law-Royal Decree No.78/86.
Royal Decree No.22/96 inrespect ofthePractice ofMedicine andDentistry Profession inOman.
Royal Decree No.68/77 Promulgating theLicensing ofPrivate Schools.
Decision oftheMinister ofHealth No.8/78onPromulgating theLicensing andAdministraiton of
Private Hospitals.
Royal Decree No.43/96 ontheEstablishment ofPrivate Veterinary Clinics.
5.(b) Publications orsource ofinformation concerning measures ofgeneral application ofrelevance
totheGATS
Laws andregulations arepublished intheOfficial Gazette. Other information isavailable from
theconcerned Ministries andAgencies.
5.(c) Enquiry points, ifany,asforseen inArticle IIIofGATS
TheMinistry ofCommerce andIndustryWT/ACC/OMN/2
Page42
ANNEX 3
INFORMATION ONIMPORT LICENSING PROCEDURES
TheSultanate ofOman doesnothaveimport licensing requirements andthere arenoimport
licensing procedures.WT/ACC/OMN/2
Page43
ANNEX 4
INFORMATION ONIMPLEMENTATION AND ADMINISTRATION
OFTHE CUSTOMS VALUATION AGREEMENT
1. Questions Concerning Article 1
(a) Sales between related persons
Therearenospecialrulesonsalesbetweenrelatedpersons.Customscanquestionandinvestigate
adeclared value ifitappears tobelowascompared withvalue ofsimilar goods imported byunrelated
persons.
(b) Price oflostordamaged goods.
Nodutyischarged onlostgoods, whereas thepriceofdamaged goods isassessed bycustoms
officers andadjusted downwards corresponding tothedamage.
2. HowhastheProvision ofArticle 4ToAllow theImporter AnOption toReverse theOrder
ofApplication ofArticles 5and6Been Implemented?
Notapplicable asthere isnoprovision intheexisting customs lawoftheSultanate ofOman
corresponding toArticles 4,5and6ofWTO Customs Valuation Agreement.
3. How HasArticle 5.2Been Implemented?
Notapplicable asthereisnoprovision inthecustoms lawofOman corresponding toArticle 5.2
oftheCustoms Valuation Agreement.
4. How HasArticle 6.2Been Implemented?
Notapplicable asthereisnoprovision inthecustoms lawofOman corresponding toArticle 6.2
oftheCustoms Valuation Agreement
5. Questions Concerning Article 7
Notapplicable astheexisting customs lawoftheSultanate ofOman doesnotcontain aprovision
corresponding toArticle 7oftheCustoms Valuation Agreement.
6. How Have theOptions Found inArticle 8.2Been Handled?
Oman values goods onc.i.f. basis.
7. Where istheRate ofExchange Published, asrequired ByArticle 9.1?
Itispublished every daybytheCentral Bank ofOman.
8. What Steps Have Been Taken ToEnsure Confidentiality AsRequired ByArticle 10?
Disclosure ofconfidential information isprohibited bytheadministrative orders oftheCustoms
Department.WT/ACC/OMN/2
Page44
9. Question Concerning Article 11
Thefirstrightofappeal liestothehigher echelons ofCustoms, andinthefinalanalysis to
theAuthority forSettlement ofCommercial Disputes.
10. Provide Information onPublications AsRequired byArticle 12
Customs lawsandregulations arepublished intheOfficial Gazette oftheSultanate ofOman.
Nofurther rules areanticipated atpresent. Ifandwhen there arenewrules these would be
published intheOfficial Gazette.
11. Questions Concerning Article 13
Provisions ofArticle 13would beimplemented when theSultanate ofOman would jointhe
WTO.
12. Questions Concerning Article 16
ThereisnoprovisioninthelegislationofOmantogiveawrittenexplanationonthedetermination
ofcustoms value. Oman would implement thisupon membership oftheWTO.
13. Interpretative Notes
Notapplicable astheSultanate ofOman isnotimplementing andfollowing theWTO Customs
Valuation Agreement.
14. Decision of26April 1984
Notapplicable asOman isnotasignatory totheCustoms Valuation Agreement.
15. Paragraph 2oftheDecision of24September 1984
Notapplicable asOman isnotasignatory totheCustoms Valuation Agreement.WT/ACC/OMN/2
Page45
ANNEX 5
INFORMATION ONTECHNICAL BARRIERS TOTRADE
1. Royal Decree No.39/1976 of20October 1976 established theDirectorate General for
Specifications andMeasurements, within theMinistry ofCommerce andIndustry, which isresponsible
forpreparing Omani standards andtheactivities related tostandardization andmeasurements. The
Directorate General issues administrative regulations andorders inpursuance ofitsfunctions.
2.(a) Standards andtechnical regulations arepublished intheOfficial Gazette oftheSultanate of
Oman. Inaddition DGSM publishes booklets onthesubject.
(b) TheDirectorate General forSpecifications andMeasurements, Ministry ofCommerce and
Industry, P.O. Box: 550,P.C. 113,Muscat, Sultanate ofOman istheinquiry point inrespect of
technical regulations andstandards.
(c) TheDirectorate General forSpecifications andMeasurements, Ministry ofCommerce and
Industry, P.O.Box:550,P.C.113,Muscat, Sultanate ofOman istheagency dealing withconsultations
asforeseen inArticle 14oftheWTO Agreement onTechnical Barriers totrade.
(d) Noother agency.
(e) Only theDGSM isresponsible fornotifications. Theresponsibility isnotdivided.
(f) TheDGSM distributes draftstandards andtechnical regulations toallconcerned, including
foreign governments, toseektheircomments before finalizing thestandards andtechnical regulations.WT/ACC/OMN/2
Page46
ANNEX 6
INFORMATION ONSTATE TRADING
Notapplicable astheSultanate ofOman hasnoState Trading Enterprises.WT/ACC/OMN/2
Page47
ANNEX 7
LIST OFPROHIBITED AND RESTRICTED IMPORTS
ACCORDING TOSCHEDULE (1)OFTHE CUSTOMS LAW
- Arms andammunitions.
- Toys arms andgunsandother instruments which theInspector General ofCustoms deems
easily transformable intofatalarms.
- Fireworks andexplosives thatcontain suchaquantity ofexplosives deemed dangerous bythe
Inspector General ofCustoms.
- Alcoholic drinks.
- Beer
- Transmission andreception radio setsandwireless telegraphs.
- Pornographic literature, drawings, cards, tapes, discs, filmsandtoysandother flagrant items.
- Anynewspaper, pamphlet, notice, book, orphoto thatcontains materials meant toarouse
violence against theGovernment.
- Receipts, counterfoils oranysimilar blank orincomplete documents.
- Paper money orforged currencies.
- Colour orsilktextiles orother textiles printed withimitations ofpaper money orpromissory
notes orsecurities oftheGovernment oftheSultanate ofOman oranyother Government.
- White weapons orother tools designed ormade inawaythatconceals theirreality andthe
possibilityofusingthemortransformingthemintoknives,swordsorotherwoundingorstabbing
tools.
- Sticks, guns(Rifles) andevery Rifle, whatsoeverdesigned inaway thatconceals itsreality
asaRifle.
- Anydrugs orsubstances orarticles orpreparations declared dangerous bytheinternational
conference onopium anddrugs.
- Hemp, itsleaves, flowers, seeds, stems andanyplant thereof.
- Raworprocessed opium.
- Daisy plant, itsleaves, flowers, stems, seeds oranypart,thereof.WT/ACC/OMN/2
Page48
ANNEX 8
LIST OFCOUNTRIES WITH WHICH OMAN HAS BILATERAL TRADE
AND ECONOMIC AGREEMENTS
Australia
China
India
Iran
Jordan
Pakistan
Portugal
Syria
Turkey
Yemen
Iraq
Tunisia
Algeria
Egypt
Morocco
Germany
Italy
France
Holland
Greece
U.S.A.
Belgium -Luxembourg
Economic Union