G/VAL/N/1/ARE/1  
9 novembre  2022 
(22-8392) Page: 1/71 
Comité de l'évaluation en douane  Original:  anglais  
 
  
NOTIFICATION AU TITRE DE L'ARTICLE 22 DE L'ACCORD SUR LA  
MISE EN ŒUVRE DE L'ARTICLE VII DE L'ACCORD GÉNÉRAL  
SUR LES TARIFS DOUANIERS ET LE COMMERCE DE 1994  
ÉMIRATS ARABES UNIS  
La communication ci -après, datée du 8 novembre 2022, est distribuée à la demande de la délégation 
des Émirats arabes unis .1 
 
_______________  
 
 
Les Émirats arabes unis n otifient la législation sur l'évaluation en douane ci -après2: 
 
- Loi sur le régime douanier commun des États du Conseil de coopération du Golfe (CCG), 
règlement d'application et notes explicatives y relatifs , appliquée depuis le 1er janvier 2003 
par les Émirats arabes unis en leur qualité d'État membre du CCG.  
 
- Décret fédéral n ° 85 de 2007 d até d u 26 septembre 2007 sur l'application du régime 
douanier commun des États du CCG.  
 
  
 
1 Les Émirats arabes unis o nt fourni des renseignements indiquant que la présente notification avait été 
initialement établie pour distribution le 10 septembre 2014 ou autour de cette date, mais les registres de l'OMC 
n'indiquent pas qu'une telle notification a it été distribuée aux Membres à ce moment -là. 
2 En anglais seulement . G/VAL/N/1/ ARE/1 
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  COMMON CUSTOMS LAW  
OF THE GCC STATES  
  
RULES OF IMPLEMENTATION  
AND EXPLANATORY NOTES THEREOF  
  
JANUARY 2003   
THIS ENGLISH TEXT IS TO BE USED FOR REFERENCE ONLY.  
THE ARABIC TEXT IS THE AUTHENTIC AND BINDING VERSION.  G/VAL/N/1/ ARE/1 
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  Introduction  
 
 Unification of the customs laws and procedures in the Customs Administrations of the GCC 
States is one of the main objectives that the GCC States seek to achieve . The adoption of a common 
customs law, which unifies customs procedures in all GCC Customs administrations and enhances 
cooperation among member States in the customs field, is one of such envisaged objectives.   
 
 The efforts to achieve this objective ha d been made since 1992 and the technical committee, 
assigned by the directors general of customs to undertake this task, had held seventeen meetings 
for this purpose which ended with the approval of the Law referred to above.  
 
 To ensure that this Law is i n line with the provisions of the international agreements relating 
to customs, the Secretariat General had dispatched English versions of this Law to both the World 
Trade Organization and the World Customs Organization for their comments. The Secretariat General 
had received those comments and passed them to the competent technical committee for 
consideration and proposing appropriate action.  
 
 The Common Customs Law of the GCC States was adopted in the 20th Session of the Supreme 
Council held in Riyadh du ring the period 27 -29 November 1999 provided that it would be 
implemented as a reference Law for one year from the date adopted by the Supreme Council and 
that it would be revised in the light of the comments received by the Secretariat General from the 
member States in an attempt to have it obligatorily implemented by all the Customs Administrations 
of the GCC States by 2002.  
 
 In order to complete the necessary implementation aspects of the Common Customs Law in  
the customs administrations of the  GCC States  and to review the comments of the member States 
and finalize the preparation of the Rules of Implementation and the Explanatory Notes, the Supreme 
Council, in its 21st Session held in Manama, Bahrain 30 -31 December 2000, decided to extend the 
period of the reference implementation of the GCC Common Customs Law for one more year 
provided that it should be obligatorily implemented by all the Customs Administrations of the GCC 
States in January 2002.  
 
 The said decision "resolution" of the Supreme Coun cil was a step forward that  had enabled 
the customs administrations and the ad hoc committees of the GCC States to complete all the 
aspects that would provide the necessary factors for the proper implementation of this Law  in order 
to achieve the objecti ve for which it was made, that is the unification and facilitation of the customs 
procedures in the GCC States which would enhance the trade exchange among them and between 
the rest of the  world countries, and lay down the firm foundations of the customs Union of the GCC 
States.  
 
 Pursuant to the recommendation of the Ministerial Council, in its 81st Preparatory Session, to 
adopt the recommendation of the Financial and Economic Cooperation Committee (The Ministers of 
Finance and Economy of the GCC States) in its 55th Meeting concerning the Common Customs Law 
of the GCC States, the Supreme Council, in its 22nd Session held in Muscat on 
30-31 December  2001, resolved as follows:  
 
1. Approval of the amendments proposed to the Common Customs Law of the GCC State s and 
the Rules of Implementation and the Explanatory Notes thereof.  
 
2. This Law shall come into force as of January 2002.  
 
3. Implementation of Articles (9, 98) relating to the Common Customs Tariff and the 
mechanism for the collection and distribution (allotment) of duties in the customs union of 
the GCC States shall coincide with the setting up of the customs union.  
 
4. Article (97) relating to drawback "the refund of the "customs taxes duties" on the goods 
re-exported to outside of the GCC States" sh all be implemented after the issuance of the 
rules of implementation thereof.  
 
5. Provisions of Article (109) entitling the GCC nationals the right to practice the activity 
(profession) of customs clearance shall be implemented after the Financial and Eco nomic G/VAL/N/1/ ARE/1 
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  Cooperation Committee has agreed to permit the GCC nationals to practice this activity 
"profession" in the GCC States.  
 
 The Supreme Council, in its 23rd Session held in Doha, Qatar 21 -22 December 2002, approved 
the decisions of the Financial and Ec onomic Cooperation Committee concerning the application of 
Article (9) relating to the application of the Common Customs tariff, and Article (97) relating to 
Drawback, Article (98) relating to the goods exempted from the customs taxes "duties" and Article 
(109) permitting the GCC nationals to practice the activity of customs clearance.  
 
 This Law falls in (17) sections comprising (178) Articles that contain provisions regulating the 
customs work, the areas subject to customs control, the nature of the custo ms procedures at the 
land, sea, air and postal customs offices that apply to the import and export operations, the 
application of the customs tariff and the collection of the customs duties on the imported goods, the 
stages of the customs clearance of the goods, the exemptions and temporary admission of goods, 
the documents to be produced to customs for the clearance of the goods, and the provisions for the 
establishment of free zones and duty -free shops and the Law of the work of the customs brokers 
(clear ing agents), the treatment of the customs offences and the smuggling cases and the rights 
and duties of the  customs officers. Hence this Law is deemed the legal instrument regulating the 
customs procedures in the customs administrations of the GCC States and the relationship between 
these administrations and the trade community (i.e. nationals, residents, importers) so that the 
person dealing with the customs  administrations would find no difference in the customs procedures 
applied in any of the GCC Stat es. This Law does also regulate the relationship between these customs 
administrations and the government departments in each State.  
 
 When this Law was being prepared, it was taken into account that it would be utilized in the 
customs work for the time be ing and it would also prepare the customs administrations of the 
member States for the phase of the forthcoming customs union of the GCC States as it meets all 
requirements thereof.   
 
COMMON CUSTOMS LAW OF THE COOPERATION COUNCIL FOR THE ARAB STATES OF TH E 
GULF  
SECTION I  
General Provisions and Definitions  
Article 1  
 This Law is called "The Common Customs Law for the Arab States of the Gulf (GCC S tates)" . 
Article 2  
 The following words and terms, wherever mentioned throughout this Law, its Explanatory Note 
and Rules of implementation, shall have the meanings hereby assigned for them, unless the context 
otherwise requires : 
 
1. The term " the Council " means the Cooperation Council for the Arab States of the Gulf.  
2. The term " the Minister " mea ns the minister to whom the Customs Administration reports.  
3. The term "competent authority" means the authority to which the customs administration 
reports.  
4. The term "the Director General " means the Director General of Customs.  
5. The term "the Director " means the director of a Customs office.  
6. The term "the Administration " means the Customs Administration.  
7. The term " Customs office " means the sector, designated by the Minister, at each seaport, 
airport, land port or at any other place where t here is a branch office of the Administration 
authorized to complete all or some of the customs procedures.  
8. The term " Law" means the rules and provisions governing customs work, and any other 
supplementing or amending rules or provisions.  G/VAL/N/1/ ARE/1 
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  9. The term "customs zone " means that part of the lands or seas subject to the customs 
control and procedures set forth herein which is of two kinds:  
 
 (i)  Sea customs zone: Which includes that part of the sea located between the shores and 
 the end boundary of the territorial waters.  
 (ii)  Land customs zone: which covers the lands located between the land 
boundaries or shores, on the one hand, and the internal line on the other hand, to 
be prescribed by a resolution by the Minister or the competent authority.  
 
10. The term " customs line " means that line conforming to the political boundaries (borders) 
separating between the country and the adjacent countries and the seashores surrounding 
that country.  
11. The term "customs tariff " means the nomenclature containing the descriptions of the goods 
and the respective taxes and customs duties as well as the rules and notes of the kinds and 
types of commodities.  
12. The term " customs taxes (duties) " means the amounts levied on the goods according to 
the provisions of this Law.  
13. The term " fees/charges " means the amounts collected by customs for the services 
rendered.  
14. The term " goods " means any natural, material or animal, agricultural, indus trial, or 
intellectual product.  
15. The term " type of goods " means the description mentioned in the customs tariff 
nomenclature.  
16. The term " the price actually paid or payable " means the total amount paid to the seller, 
directly or indirectly, for the goods imported by the buyer or for his favour.  
17. The term " the imported goods being valued " means the goods being valued for customs 
purposes.  
18. The term " identical goods " means goods that are the same in all respects, including 
physical characterist ics, quality,  and reputation. Minor differences in appearance would not 
preclude goods otherwise conforming to the definition from being regarded as identical.  
19. The term " similar goods " means goods which, although not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially interchangeable. The quality of the goods, their reputation 
and the existence of a trademark are among the factors to be considered in determ ining 
whether goods are similar.  
20. The term " sales commission " means the commission paid to the seller 's agent who is 
related to the seller or the factory, governed by or acting for its favour or on its behalf.  
21. The term " packing costs " means the cost of all packing and coverings (excluding 
instruments of international traffic " whether for the labour or the materials used for placing 
the goods in packings suitable for shipping to the GCC states.  
22. The term " unit price at the greatest total quant ity" means the unit price at which certain 
goods are sold to unrelated persons, at the first commercial level after importation in its 
state when imported or after further preparation or processing, if the importer so requested.  
23. The term "related pers ons" means persons who are:  
 
(a)  legally recognized partners in business,  
(b)  officers or directors of one another 's business,  
(c)  employer and employee,  
(d)  any person directly or indirectly owns, controls,  or holds 5 per cent or more of the 
outstand ing voting stock shares of both of them,  
(e)  one of them directly or indirectly controls the other,  
(f)  both of them are directly or indirectly controlled by a third person,  
(g) together they directly or indirectly control a third person,  
(h)  members of  the same family.  
 
24. The term " Valuation Agreement " means the Agreement on Implementation of Article VII 
of the GATT 1994.  
25. The term " origin of the goods " means the producing country, whether these goods are 
natural resources, agricultural crops or animal or industrial products.  
26. The term " prohibited goods " means any goods the import or export of which is prohibited 
under the provisions of this Law or any other Law.  G/VAL/N/1/ ARE/1 
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  27. The term " restricted goods " means those goods the import or export of which is restricted 
under the provisions of this Law "law" or any other Law.  
28. The term " source " means the country from which the goods is imported.  
29. The term "importer " means the natural or legal person importing the goods.  
30. The term " exporter " means the natural or legal person exporting the goods.  
31. The term " manifest " means the document containing a full description of the goods carried 
on the various means of transport.  
32. The term " free zone " means a part of the state 's territories in which commercial or industrial 
activities are exercised under the respective laws of that state. Any goods entering that zone 
are considered to be outside the customs zone and shall not be subject to the usual customs 
control and procedures.  
33. The term "duty-free shop " means that licensed building or place wherein goods are placed 
free of customs duties (taxes) for purposes of display or sale.  
34. The term " customs declaration " means the goods declaration,  or the declaration submitted 
by the importer or his representative describing the elements identifying the declared goods 
and quantity thereof in details according to the provisions of this Law.  
35. The term " store house " means that building or place intended for the temporary storage of 
goods pending their withdrawal under one of the customs procedures whether such 
place/building is directly administered by the Administration or by the official public agencies 
or the investors.  
36. The term " warehouse " means the place or facility wherein the goods are deposited under 
supervision of the Administration free of customs duties (taxes) according to the provisions 
herein.  
37. The term " carrier " means the owner of a means  of transportation or his authorized 
representative (under an official authorization).  
38. The terms " specified route " means the routes specified by the minister for the carriage of 
the imported or exported goods into/from the country or the goods in tran sit under a 
resolution.  
39. The term " Treasury " means the public treasury.  
40. The term " Customs Clearance " means documentation of the customs declarations for the 
imported, exported and transit goods according to the procedures provided for herein.  
41. The term " Customs Broker " means any legal or natural person licensed to undertake 
customs clearance for the account of the others.  
42. The term " representative of the customs broker " means any legal or natural person 
licensed to follow up customs procedu res.  
 
Article 3  
 
 The provisions of this Law apply to the sovereign territories and territorial waters of the 
country. Notwithstanding, free zones, totally or partially excluded from customs provisions, may be 
established in such territories.  
Article 4  
 
 Any goods crossing the customs line, at importation or exportation, shall be subject to the 
provisions of this Law.  
Article 5  
 
 The Administration shall perform its duty at the customs office or customs zone and may also 
exercise its powers within the extent of the country 's territories and territorial waters under the 
conditions set forth herein.  
Article 6  
 
 Customs offices are established and cancelled by a resolution of the minister or the competent 
authority.  
Article 7  
 
 Competencies and work hours of the customs offices are specified by a resolution of the 
minister or the competent authority.   
Article 8  
 
 Subject to the provisions of the articles relating to the inspection of goods, customs procedures 
shall only be conducted at the designated custom s offices as set forth in article 7.  G/VAL/N/1/ ARE/1 
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  SECTION II  
 
Principles of Application of the Customs Tariff  
 
Article 9  
 
 Goods imported into the country are subject to the customs taxes "duties" specified in the 
customs tariff, and the other applicable fees, excludi ng those exempted under the provisions of this 
Law or under the Unified Economic Agreement of the GCC Arab States or any other international 
agreement within the framework of the Council.  
 
Article 10  
 
 The duty rate of the customs tariff shall be either ad Valorem  (percentage of the value of 
goods) or specific (an amount levied on each unit of the goods), or both.  
 
Article 11  
 
 Customs taxes "duties" are levied, amended,  and abandoned by the legal instrument 
applicable in each Member State subject to the re spective resolutions issued by the Council and the 
provisions of the international agreements in force.  
 
Article 12  
 
 Resolutions amending the customs taxes "duties" shall specify the date at which such 
amended taxes "duties" shall be effective.  
 
Article 13  
 
 Imported goods are subject to the customs taxes "duties" applicable at the date of registering 
the customs declaration with the customs offices unless otherwise provided for in the text of the 
resolutions amending the customs tariff.  
 
Article 14 
 
 When customs taxes "duties" are to be levied on the goods deposited at the warehouse due 
to the expiry of the warehousing period, such goods shall be subject to the tariff provisions applicable 
at the date of registering the customs declaration.  
 
Article 15  
 
 Goods taken out from free zones and duty -free shops into the local markets are subject to the 
customs tariff effective at that time.  
 
Article 16  
 
 Smuggled goods (contrabands) or the like are subject to the customs tariff prevailing at the 
time of  the detection or occurrence of smuggling, if applicable, whichever is higher.  
 
Article 17  
 
 The customs tariff effective on the sale day shall apply to the goods sold by the customs office 
according to the provisions provided for herein.   
Article 18  
 
 Damaged goods shall be subject to the customs tariff based on their value at the date of 
registering the customs declaration.   
 
  G/VAL/N/1/ ARE/1 
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  SECTION III  
 
Prohibition and Restriction  
 
Article 19  
 
 A customs declaration shall be produced for any goods entering or leaving the country; the 
goods are then presented to the customs authorities at the nearest customs office.  
 
Article 20  
 
 Marine means of transport entering the country, irrespective of their load capacity, are 
prohibited from anchoring in any seaports (ha rbours) other than those designated for receiving 
them, excluding the case of sea emergency or force majeure wherein the shipmaster shall 
immediately notify nearest customs office or security point of such occurrence.   
 
Article 21  
 
 Vessels, loaded with p rohibited or restricted goods or goods subject to high rates of duty, of 
a loading capacity less than two hundred marine tons may not enter or get involved in the shipping 
activity within the marine customs zone except in circumstances arising from sea eme rgency or force 
majeure, in which case the shipmaster shall promptly notify the nearest customs office or security 
point of such occurrence, excluding goods transported within the local seaports of the country whose 
customs procedures have been finalized.  
 
Article 22  
 
 Aircraft departing or arriving in the country may not take off or land at the airports where no 
customs offices exist unless in cases of force majeure, in which case the shipmaster shall promptly 
notify nearest customs office or security poi nt of such occurrence and submit a report, approved by 
the customs office notified of that occurrence, unless otherwise provided for in any other Law or 
resolution.  
 
Article 23  
 
 Land means of transport may not enter or leave the country through the areas where no 
customs offices exist.   
 
Article 24  
 
 By virtue of the provisions of this Law or any other Law or resolution, the Customs 
Administration shall prohibit admission, transit or exit of the prohibited goods or infringing goods as 
well as the entry, transit or exit of any restricted goods except under approval from the competent 
authorities in the country.    G/VAL/N/1/ ARE/1 
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  SECTION IV  
 
Distinguishing Elements of the Goods  
(Origin, Value, Type)  
 
Article 25  
 
 Imported goods are subject to the proof of origin ac cording to the rules of origin adopted 
within the framework of the international and regional economic agreements in force.  
 
Article 26  
 
 The value for customs purposes shall be calculated according to the rules and principles set 
forth in the rules of im plementation.  
 
Article 27  
 
 Acceptance of the value as a distinctive element of the goods requires the following:  
 
1. Any customs declaration shall be accompanied by a detail original invoice and the director 
general or his representative may allow finaliz ation of the clearance procedures without 
presentation of the authenticated original invoices and the required documents against an 
undertaking to produce them within a period not to exceed 90 days from the date of 
undertaking.  
2. The value of the goods s hall be proved by producing all original invoices and documents 
reflecting the value according to the rules set forth in Article 26.  
3. The customs office may require all documents, contracts, correspondence,  and other 
relevant documents without having to  accept all that is stated in them or in the invoices 
themselves.  
4. The Administration may request Arabic translation of the invoices issued in a foreign 
language showing details of the goods in accordance with the customs tariff as well as the 
other doc uments, if so required.  
 
Article 28  
 
 The value of the exported goods is that indicated in the customs declaration plus all the costs 
until arrival of the goods at the customs office.   
 
Article 29  
 
 Goods not mentioned in the customs tariff (Harmonized System) and the explanatory notes 
are to be classified according to the classification advice given by the World Customs Organization. 
Goods that fall under national subheadings in the customs tariff are to be classified within the context 
of the Common Customs tariff of the member States of the Council.  
 G/VAL/N/1/ ARE/1 
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  SECTION V  
 
Importation and Exportation  
 
Chapter I  
Importation  
 
1.  Sea Transportation  
 
Article 30  
 
(a)  Any goods imported into the country by sea shall be registered in the manifest.  
(b)  A single manifest for the whole load signed by the shipmaster shall be made which shall 
contain the following information:  
(i)  Name and nationality of the ship and its registered load.  
(ii)  Types of the goods, total weight thereof and the weight of bulk good, if any. If goods 
are prohibited, their actual description shall be mentioned.  
(iii)  Number of packages and pieces, description of packing, marks and numbers thereof.  
(iv)  Names of the  consignor and consignee.  
(v)  The seaports where the goods are shipped from (ports of loading).  
(c)  When entering the customs zone, the shipmaster shall produce the original manifest to the 
competent authorities.  
(d)  When the ship enters the harbour, th e shipmaster shall submit to the customs office the 
following:   
1.  The cargo manifest.  
2.  The manifest of the ship 's supplies (logistics) and the crew 's baggage and belongings.  
3.  A list of the passengers ' names.  
4.  A list of the goods to be unloaded a t this port.  
5.  All the shipping documents which the customs office may require for application of 
the customs Laws.  
(e)  Manifests and documents shall be submitted within sixty -three hours from the time the ship 
enters the seaport, excluding official hol idays.  
 
Article 31  
 
 If the manifest belongs to a ship (vessel) that does not make regular voyages or that does 
not have a forwarder at the port, or if it is a sail ship, then the manifest must be endorsed by the 
customs authorities at the shipping port.  
 G/VAL/N/1/ ARE/1 
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  Article 32  
 
(a)  Cargo of the ships and all other marine means of transportation may be unloaded only within 
the customs zone at the port. Any shipment may be unloaded or transhipped only under 
supervision of the customs office.  
 
(b)  Unloading and transhipment shall be completed according to the conditions laid down by the 
director general.  
 
Article 33  
 
 Shipmaster, forwarder or his representative shall be held responsible for any shortage in the 
number of pieces or packages or the amount of the bul k goods until delivery of the goods to the 
customs warehouses or acceptance of the goods by the owners, if so allowed, subject to provisions 
of Article 54 herein.  
 
Article 34  
 
 If a shortage in the number of unloaded pieces or packages or in the amount of bulk goods, 
compared to those mentioned in the manifest, is found out, the shipmaster or his representative 
shall justify such shortage and prove that it has occurred outside the marine customs zone. If 
documents cannot be submitted at once, a time period not exceeding six months may be given to 
submit the same against a guarantee ensuring the Administration 's rights.  
 
2.  Land Transportation  
 
Article 35  
 
 Customs procedures of the goods imported by land should be completed at the first customs 
office and m ay be referred to another inland customs office, when necessary, under a resolution by 
the director general.  
 
Article 36  
 
(a)  A manifest of the total cargo of the land means of transportation shall be prepared and 
signed by the carrier or his representati ve and shall contain adequate information on the 
means of transportation, its cargo and all other details according to the conditions prescribed 
by the director general.  
 
(b)  Carriers or their representatives shall submit the manifest to the port immediat ely upon 
arrival therein to.  
 
3.  Air Transportation  
 
Article 37  
 
 Subject to the provisions of Article 22 herein, aircraft crossing the country borders shall follow 
the specified routes and shall land only at the airports where customs offices exist.  
  
Article 38  
 
 A manifest of the airplane 's cargo shall be prepared and signed by the captain according to 
the conditions set forth in paragraphs a, b, c, d, of Article 30 herein.  
 
Article 39  
 
 The captain or his representative shall submit the mani fest and the lists mentioned in 
Article  38 herein to the customs officers and shall deliver these documents to the customs office 
upon arrival of the aircraft.  
 
  G/VAL/N/1/ ARE/1 
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  Article 40  
 
 Goods may not be unloaded or dropped out of the aircraft during flight unless it  is necessary 
to do so for safety purposes, provided that the customs office shall be notified of the same, subject 
to the provisions set forth in the other relevant Laws.  
  
Chapter II  
Exportation  
 
Article 41  
 
 Owners of the means of transportation of goods, loaded or unloaded, shall - when leaving the 
country - submit to the customs office the manifest according to the provisions of Section 1 of this 
Chapter and shall obtain exit permission. However, the Director General, may, in cert ain cases, 
make an exception to this condition.  
 
Article 42  
 
 Exporters of goods shall proceed with the goods to be exported to the competent customs 
office and declare them in detail. Carriers towards land borders may not overpass the customs 
offices.  
 
Chapter  III 
Postal Traffic  
 
Article 43  
 
 Goods are imported or exported by mail according to the provisions of this Law and subject 
to the other applicable international postal agreements and local Laws in force.  
 
Chapter  IV 
Common Provisions  
 
Article 44  
 
(a)  Several sealed packages, assembled in any way whatsoever, may not be stated in the 
manifest as a single package.  Containers, palettes and trailers are subject to the instructions 
given by the director general.  
 
(b)  A single consignment may not be s plit. However, for acceptable reasons, the director general 
may allow such splitting, provided that such splitting shall not result in a loss to the treasury.  
 
Article 45  
 
 Provisions of Articles 32, 33, and 34 herein shall apply to the land and air transport in respect 
to the unloading and transhipment of goods. Drivers, captains of aircraft and carriers shall be 
responsible for any shortage in case of land and air transport.  
 
Article 46  
 
 The Administration may use Electronic Data Interchange (EDI) in customs clearance.  
  
  G/VAL/N/1/ ARE/1 
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  SECTION VI  
 
Stages of Customs Clearance  
 
Chapter I  
Customs Declarations  
 
Article 47  
 
 When clearing any goods, even if exempted from customs taxes and duties, a detailed customs 
declaration,  conforming to the forms approved within the framework of the GCC states, shall be 
submitted to the customs office containing all the information that enable application of the customs 
Laws and levying applicable customs taxes and duties and for statistical purposes.  
 
Article 48  
 
 Subject to the provisions of paragraph (1) of Article 27 herein, The director general shall 
specify the documents to be attached with the customs declarations and the information to be 
contained therein and shall allow the completion of the clearance proc edures in the absence of any 
of the required documents against cash or bank guarantees or a written undertaking to submit such 
documents according to the stipulated conditions.  
 
Article 49  
 
 Contents of the customs declarations may not be modified after re gistration; however, the 
applicant may apply in writing to the customs office for correction before the customs declaration is 
referred to inspection.  
 
Article 50  
 
 Owners of the goods or their representatives may check their goods before submitting the 
customs declaration and may take samples thereof, when necessary, after obtaining permission 
from the Director and under supervision of the customs office.  Such samples shall be subject to the 
applicable customs taxes "duties".  
  
Article 51  
 
 No parties oth er than the owners of the goods or their representatives may have access to 
the customs declarations excluding competent judicial or official entities.  
  
Chapter II  
Examination (Inspection) of Goods  
 
Article 52  
 
 The designated customs officer shall examine the goods wholly or partially after registering 
the customs declarations according to the instructions of the director general.  
 
Article 53  
 
(a)  Examination of goods shall take place at the customs office; however in certain cases such 
examination  may be conducted outside the customs office according to the rules laid down 
by the director general.  
 
(b)  Transferring the goods to the place of examination and the unpacking and repacking of 
packages and all the other works required for examination sha ll be at the expense of the 
owner of the goods who will be held responsible until arrival of the goods at the place of 
examination.  
 
(c)  Goods placed in the customs warehouses or at the places intended for examination may not 
be removed without approval o f the customs office.  
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  (d)  The individuals carrying the goods and presenting them for examination shall be acceptable 
to the customs office.  
 
(e)  Access to the stores, customs warehouses, hangars, sheds and yards intended for the 
storage or deposit of go ods and to the places allocated for examination may not be 
authorized to any person without approval of the customs office.  
  
Article 54  
 
 Examination shall be conducted only in the presence of the owner of the goods or his 
representative. Should a shortag e in the contents of the packages develop, responsibility for such 
shortage is determined as follows:  
 
1.  If the goods had been placed in the customs warehouses in packages that are in an 
apparently proper condition from which it can be ascertained that t he shortage in 
their contents had occurred at the exporting country prior to shipping, then such 
shortage shall be disregarded.  
2.  If the goods entering the customs  warehouses o stores  are in packages that are 
not in an  apparently  proper condition , the entity in charge of these warehouses  
and stores shall , together with the carrier, record this occurrence in the acceptance 
report and verify the weight, contents and number of packages. It shall also take 
the necessary precautions to ensure safety of  the goods. In this case, the carrier 
shall be held responsible unless a reservation is indicated on the manifest and 
endorsed by the customs office of the exporting country in which case the shortage 
will be disregarded and the pursuit shall be discontinu ed. 
3.  If the goods have been admitted into the customs warehouses and stores in 
packages that are in an apparently proper condition, then they became subject of 
suspicion, the entity in charge of the warehouses shall be responsible for any 
shortage or sw itching, if any.  
  
Article 55  
 
 When the customs office suspects the presence of prohibited or illegal goods, it shall have the 
right to open the packages for inspection. Such opening of packages may be authorized in the 
absence of the owner of the goods or his representative, if he refr ains from attending the inspection 
at the specified time notified to him.  
 
 When necessary, the customs office may inspect the goods before notifying the owner of the 
goods or his representative. Such inspection may be conducted by a committee formed, for  this 
purpose, by a decision of the director general and a report of the findings of inspection shall be 
made.  
  
Article 56  
 
(a)  The customs office may have the goods analyzed by specialized agencies to verify the kind 
and specifications of the goods or their conformity to the Laws and regulations.  
 
(b)  Goods requiring the availability of certain conditions and specifications to be released shall 
be subject to analysis (testing) and inspection; however the director may release them 
against an appropriate  undertaking ensuring that they are not to be disposed of until the 
analysis result has come out.  
 
(c)  The director general may order that the goods, proved through inspection or analysis to be 
harmful or not conforming to the approved specifications, be  destroyed at the expense and 
in presence of their owners or their representatives. When necessary, such goods shall be 
re-exported to the source country in which case a report of the same shall be made.  
 
Article 57  
 
 Customs taxes "duties" shall be levie d according to the contents of the customs declaration. 
Should physical inspection result in a difference (discrepancy) between the goods and what is stated 
in the customs declaration, customs taxes and duties shall be levied on the basis of this finding G/VAL/N/1/ ARE/1 
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  without prejudice to the customs ' right to levy the applicable fines, when necessary, under the 
provisions herein.  
  
Article 58  
 
 If the customs office cannot verify the contents of the customs declaration through inspection 
of the goods or the documents su bmitted, it may suspend inspection and request necessary 
supporting documents.  
  
Article 59  
 
 The customs office may re -inspect the goods under the provisions of Articles 51 - 56 herein.  
 
Chapter III  
Provisions Relating to Passengers  
 
Article 60  
 
 Items or belongings accompanying the passengers shall be declared and inspected at the 
competent customs offices according to the rules and practices laid down by the director general.  
 
Chapter IV  
Adjustment of the Value  
 
Article 61  
 
 A valuation committee  composed of officers from the administration shall be established by a 
resolution of the director general to settle the disputes arising between the customs office and the 
persons concerned about the value of the imported goods. Such committee may seek as sistance of 
experts at its discretion.  
 
 Without prejudice to the importer 's right to appeal to court, the importer may appeal before 
the valuation committee against the decisions of increased value within fifteen days following 
registration of the custom s declaration or from the date of the valuation notice sent to him by 
registered mail. Decisions of this committee shall be taken by majority and shall be effective once 
approved by the director general. The importer shall be informed in writing of the dec ision taken by 
the committee concerning his complaint. Such decision shall be reasonable.  
 
Article 62  
 
(a) Should a dispute arise between the competent customs officer and the owner of the goods 
about the value of the goods due to discrepancy in descriptio n (misdeclaration), origin or 
any other reason, the matter shall be referred to the director for settlement. If the director 
approves the opinion of the customs officer but the owner of the goods does not accept such 
opinion, the matter shall be referred t o the director general for settlement of dispute or for 
referral to the valuation committee.  
 
(b)  The director may release the goods in dispute , if not prohibited, after collecting a deposit in 
an amount equivalent to the sum of the customs duties and ta xes determined by the customs 
office. Samples of the goods shall be temporarily maintained for reference when necessary; 
such samples shall be returned to the owner of the goods unless they are consumed for 
inspection and analysis purposes.  
 
Chapter V  
Paym ent of Customs Taxes "duties" and other  
Charges and the Release of Goods  
 
Article 63  
 
(a)   Goods shall be subject to customs taxes "duties" and may not be released unless after 
completion of their customs procedures and payment of customs duties and taxes according 
to the provisions herein.  G/VAL/N/1/ ARE/1 
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(b)   Goods shall be delivered to the owners or their duly authorized representatives according to 
the procedures prescribed by the director general.  
 
Article 64  
 
 The customs officers assigned to collect customs duties and taxes shall execute an official 
receipt in the form prescribed by the minister or the competent authority.  
 
Article 65  
 
 When a state of emergency is declared, precautions may be taken for removing the goods 
against special guarantees and condit ions prescribed by the minister or the competent authority.  
 
Article 66  
  
 According to the rules and conditions prescribed by the director general, goods may be 
released prior to payment of the customs duties and taxes and after completion of the customs 
procedures against bank, monetary or documentary guarantees.  
 
SECTION VII  
 
Cases where Customs Taxes "duties" are Suspended and Drawback  
 
Chapter I  
General Provisions  
 
Article 67  
 
 Goods may be admitted and transported to any other place within the country without 
payment of the customs taxes "duties" against submission of a bail or bank guarantee equivalent to 
the amount of the customs taxes "duties" payable according to the instructions given by the director 
general.  
 
Article 68  
 
 Bails, bank guara ntees and securities shall be released under discharge certificates according 
to the conditions prescribed by the director general.  
 
 
Chapter II  
Goods in Transit  
 
Article 69  
 
 Subject to Article 67 herein and the provisions of the Unified Economic Agreemen t of the GCC 
Arab States, goods are allowed to transit the territories of the Council states according to the 
applicable provisions and laws and the international agreements in force.  
 
Article 70  
 
 Transit operations can be completed only at the authorized  customs offices.  
 
Article 71  
 
 Subject to the provisions of the applicable regional and international agreements, transit 
goods are transported through the specified routes by the various means of transport at the carrier 's 
responsibility according to the instructions of the director general. The routes for the transit 
transportation and the conditions thereof are to be specified by a resolution of the minister or the 
competent authority.  
 G/VAL/N/1/ ARE/1 
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  Article 72  
 
 In the event goods are transported fr om one customs office to another, the persons concerned 
may be exempted from submitting a detail declaration at the port of entry and the referral shall be 
according to the documents and conditions prescribed by the director general.  
 
Article 73  
 
 The minister or the competent authority shall issue the necessary resolutions governing the 
suspension of the customs duties and taxes applicable to all other kinds of transit transport.  
 
Chapter III  
Warehouses  
 
Article 74  
 
 Warehouses inside or outside the c ustoms office shall be established by   a resolution of the 
minister or the competent authority; the rules and conditions controlling such warehouses shall be 
laid down by the director general.  
 
Article 75  
 
 Goods may be deposited with the warehouses inside  or outside the customs office without 
payment of customs duties and taxes according to the rules and conditions prescribed by the director 
general.  
 
Article 76  
 
 The Administration is entitled to supervise and control the warehouses, managed by other 
agencies, under the provisions of this law and the other laws in force.  
  
Chapter IV  
Free Zones and Duty -free Shops  
 
Article 77  
 
 Free zones are established by the legal instrument of each State; the rules and conditions 
thereof are laid down by a resolution o f the minister or the competent authority.  
 
Article 78  
 
(a)  Subject to the provisions of Articles 79 and 80  herein, all foreign goods, of whatever kind 
or origin may be brought into the free zones and duty -free shops, and taken out from them 
to  outside the country or to other free zones and duty -free shops, without being subject to 
customs duties or taxes.  
 
(b).  Subject to the export restrictions and customs procedures applicable to re -exportation, the 
foreign goods re -exported from inside the c ountry may be admitted into the free zones and 
duty-free shops.   
 
 (c)  Goods in the free zones and duty -free shops shall not be subject to any restriction in respect 
to the period they can remain therein.  
  
Article 79  
 
 The imported goods, stated in the cargo manifest, may not be transferred or admitted into 
the free zones and duty -free shops unless by approval of the director general and under the 
conditions and controls prescribed by him.  
Article 80  
 
 The following goods may not be admitted into the fre e zones and duty -free shops:  
 G/VAL/N/1/ ARE/1 
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  1.  Flammable  goods, excluding the fuels necessary for the  operation allowed by the 
authority supervising free zones and duty -free shops, under the conditions 
prescribed by the competent authorities.  
2.  Radioactive material s 
3.   Arms, ammunition and explosives, of any kind, except those licensed by the 
competent authorities.  
4.  Goods infringing the laws relating to commercial and industrial property rights and 
copyright protection in respect of which resolutions have been issued by the 
competent authorities.  
5.  All kinds of narcotic drugs and derivatives thereof.  
6.  Goods originated in an economically boycotted country.  
7.  Goods prohibited from entering the country; a list of such goods shall be made by 
each State.  
 
Article 81  
 
 The customs office may carry out inspection works in the free zones and duty -free shops for 
detection of prohibited goods, and it may also review the documents and examine the goods when 
smuggling operations are being suspected.  
 
Article 82  
 
 The management of the free zones and duty -free shops shall submit to the Administration, if 
so requested, a list of all the goods brought into or taken out from them.  
 
Article 83  
 
 Goods placed at the free zones and duty -free shops may not be transferred t o other free zones 
and duty -free shops, stores or warehouses unless according to the securities, undertakings and 
procedures prescribed by the director general.  
 
Article 84  
 
 Goods shall be withdrawn from the free zones and duty -free shops into the countr y according 
to the provisions of applicable laws and as instructed by the director general.  
 
Article 85  
 
 Goods taken out from the free zones into the customs office shall be treated as foreign goods 
even if incorporating local raw materials or articles on  which customs duties and taxes have been 
collected prior to their admission into the free zones.  
 
Article 86  
 
 National and foreign vessels shall be permitted to obtain all necessary marine equipment from 
the free zones.  
 
Article 87  
 
 The administration of the free zones and duty -free shops shall be held responsible for all the 
offences committed by its officers and for the goods illegally taken out from them. All laws and 
instructions relating to security, public health, smuggling and frau d control shall remain effective in 
these free zones and duty -free shops.  
 
Article 88  
 
 The goods imported from the free zones and duty -free shops into or out of the country shall 
be treated as foreign goods.  
 
  G/VAL/N/1/ ARE/1 
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  Chapter V  
Temporary Admission  
 
Article 89  
 
 Subject to the provisions provided for in this chapter and in the Unified Economic Agreement 
of the Council countries and the other international applicable agreements, goods shall be 
temporarily admitted without collection of customs duties a nd taxes according to the conditions set 
forth in the Rules of Implementation.  
Article 90  
 
 The director general may grant temporary admission to the following:  
 
1.      Heavy machinery and equipment for completion of projects or for conducting the experim ents 
and tests relating to such projects.  
 
2.  Foreign goods imported for completion of processing.  
 
3.  Items temporarily imported for playgrounds, theatres, exhibitions and like events.  
 
4.  Machinery and equipment imported into the country for repair.  
 
5.  Containers and packing imported for refilling.  
 
6.  Animals admitted in for grazing.  
 
7.  Commercial samples for exhibition.  
 
8.  The other cases so requiring.  
  
 The items provided for herein shall be re -exported or deposited with the free zone, customs 
offices or warehouses during the temporary admission period prescribed by the Rules of 
Implementation.  
  
Article 91  
 
 Provisions of the Unified Economic Agreement of the GCC states and the other international 
applicable agreements governing the temporary admission of vehicles shall be observed according 
to the instructions prescribed by the Rules of Implementation  
 
Article 92  
 
 The materials and articles released un der temporary admission may not be used, allocated or 
disposed of for purposes and objectives other than those for which they were imported and declared 
in the submitted declarations.  
 
Article 93  
 
 Any shortage develops in the goods released under  tempora ry admission when taken out 
shall be subject to the customs duties "taxes" applicable at the time of admission.  
  
Article 94  
 
 The Rules of Implementation shall prescribe the conditions for practical application of the 
temporary admission and the guarante es to be produced.  
 
Chapter  VI 
Re-exportation  
 
Article 95  
 G/VAL/N/1/ ARE/1 
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   The goods imported into the country, on which customs duties "taxes" were not collected, 
may be re -exported to outside the country or to the free zone according to the procedures and 
guarantees prescribed by the Rules of Implementation  
 
Article 96  
 
 In certain cases, permission may be given for transhipment or withdrawal of the goods, that 
were not placed into the customs warehouses, from the wharves to the ships under the conditions 
prescribed by the director general.  
 
Chapter VII  
Drawback  
 
Article 97  
 
 Customs duties "taxes" collected on the foreign goods shall be totally or partially refunded at 
re-exportation according to the practices and conditions set forth in the Rul es of Implementation.  
 
  G/VAL/N/1/ ARE/1 
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  SECTION VIII  
 
Exemptions  
 
Chapter I  
Goods Exempted from Customs Duties "taxes"  
 
Article 98  
 
 The goods agreed to be exempted from customs duties and taxes in the Common Customs 
tariff of the GCC states shall be exempted from custom s duties and taxes.  
 
Chapter  II 
Diplomatic  exemptions  
 
Article 99  
 
 Imports of the diplomatic corps, consulates, international organizations and the members of 
the diplomatic and consular corps accredited by the government shall be exempted from customs 
taxes "duties" on reciprocity basis according to the international agreements, laws and orders in 
force.  
 
Article 100  
 
(a)  The goods exempted under Article (99) herein may not be disposed of  or abandoned for a 
purpose other than that for which they have been exempted, unless after notifying the 
Administration of the payment of the due customs taxes "duties".  
 
(b)  Customs taxes "duties" are not to be levied if the beneficiary has disposed of the goods, 
exempted under Article (99) herein, a fter three years from the date released by the customs 
office provided that reciprocity basis is available.  
 
(c)  Exempted vehicles "cars" may not be disposed of before the elapse of three years following 
the exemption date excluding the following cases:  
 
• Termination of the mission of the diplomatic or consular member benefiting from 
exemption in the country.  
• The occurrence of an accident to the exempted car which makes it unfit for the use of 
the diplomatic or consular member based on a joint recommendatio n by both the Traffic 
Department and the Administration.  
• The sale by one diplomatic or consular member to another member provided that the 
assignee shall be entitled to the right of exemption.  
 
Article 101  
 
 The right of exemption for the individuals benef iting from it under Article (99) herein shall 
begin from the date of commencing their jobs at their official places of work in the country.  
 
Chapter III  
Military Exemptions  
 
Article 102  
 
 Imports for all sectors of the military forces and internal security  forces, such as ammunitions, 
arms, equipment, military means of transport and parts thereof and any other materials, shall be 
exempted from customs taxes "duties" by a resolution of the Council of Ministers or the authorized 
authority in each State.  
 
  G/VAL/N/1/ ARE/1 
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  Chapter IV  
Personal Effects and Household Items  
 
Article 103  
 
(a)  To be exempted from customs taxes "duties" are the personal effects and used household 
items brought into the country by the nationals residing abroad or the foreigners coming for 
the first  time for residence in the country, subject to the conditions and controls prescribed 
by the director general.  
 
(b)  To be exempted from customs taxes "duties" are the personal effects and gifts in possession 
of passengers provided that such items are not of a commercial nature and shall be 
conforming to the conditions and controls set forth in the Rules of Implementation.  
 
Chapter V  
Imports of the Philanthropic Societies "Charities"  
 
Article 104  
 
 Imports of the Philanthropic Societies "Charities" shall be  exempted from customs taxes 
"duties" according to the conditions and controls set forth in the Rules of Implementation.  
 
Chapter VI  
Returned Goods  
 
Article 105  
 
 The following goods shall be exempted from customs taxes "duties":  
 
1.     Returned goods of national origin that were previously exported.  
2.     Returned foreign goods that are proved to have been previously re -exported to outside the 
country, if returned within one year from the date of re -exportation.  
3.     Goods that have been tempo rarily exported for finishing or repair shall be subject to the 
customs taxes "duties" in an amount equivalent to the addition resulting from such finishing 
or repair according to the decision of the director general.  
 
 The minister or the competent autho rity shall prescribe the conditions to be satisfied for 
benefiting from the provisions of this article.  
  
Chapter  VII 
Common Provisions  
 
Article 106  
 
(a)  The provisions of the exemptions set forth in this chapter apply to the goods covered by 
exemption, w hether directly or indirectly imported or bought from the customs warehouses 
and free zones subject to the requirements prescribed by the Administration.  
 
(b)  Should a dispute arise on whether the goods provided for in this chapter are subject to or 
exemp ted from customs taxes and duties, the director general shall settle such dispute.  
 
  G/VAL/N/1/ ARE/1 
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  SECTION IX  
 
Service Charges  
 
Article 107  
 
(a)  Goods placed in the yards and warehouses of the customs office are subject to the storage, 
handling and insurance charges and the other services required for the storage and 
inspection of goods at the applicable rates. However, storage charges shall not, in any way, 
exceed 50  per cent of the estimated value of the goods. In the event such warehouses are 
administered b y other entities, they may collect such charges according to the provisions 
and rates specified in this connection.  
 
(b)  Goods may be subject to the charges of stowage, sealing, analysis and all  services rendered.  
 
(c)  The services and charges mentioned  in this Article and the levying conditions shall be 
determined by a resolution issued by the minister or the competent authority.  
 
SECTION X  
 
Customs Brokers  
 
Article 108  
 
 A customs broker is any legal or natural person engaged in the preparation of the customs 
declarations, signing them, submitting them to the customs office and completion of the customs 
procedures relating to the clearance of the goods for the others ' account.  
 
Article 109  
 
 Citizens of the GCC Arab States (natural or legal) have the r ight to exercise the profession of 
customs clearance upon obtaining a license from the Administration.  
 
Article 110  
 
 Declaration of the goods to the customs office and the completion of their customs procedures, 
whether for importation, exportation or tr ansit, shall be accepted from:  
 
1.  The owners of the goods or their authorized representatives satisfying the requirements 
prescribed by the director general including the authorization conditions.  
2.  Licensed customs brokers.  
 
Article 111  
 
 Endorsement of the delivery order for the name of the customs broker or the representatives 
of the owners of the goods shall be deemed as an authorization for finalization of the customs 
procedures without any liability on the part of the customs office fo r delivering the goods to the 
endorsee.  
 
Article 112  
 
 The customs broker shall be held responsible for his acts and those of his employees vis -à-vis 
the importers, exporters and the Administration under the provisions herein.  
 
Article 113  
 
 The director g eneral may issue the directions concerning the following:  
 
1.   Licensing requirements for customs brokers,  
2.   Licensing requirements for the representative of the customs broker,  G/VAL/N/1/ ARE/1 
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  3.   Licensing procedures for customs procedures and their representatives , 
4.   Obligations of the customs broker and his representative,  
5.  Requirements for opening customs clearance offices,  
6.  The number of customs brokers and their representatives authorized to exercise the 
profession at the customs offices,  
7.  The custo ms office(s) wherein the customs brokers are authorized to work,  
8.  Procedures of dispensing with the customs brokers and their representatives,  
9.  Procedures of transfer (movement) of the representatives of customs brokers among the 
customs clearance of fices,  
10.  Procedures of withdrawing the licenses of the customs brokers and their representatives,  
11.  Cases of deletion of the licence from the Administration 's register.  
 
Article 114  
 
 Subject to the provision of Article 140 herein and without prejudice to any civil or penal liability 
set forth herein or in any other Law, the director general may impose on the customs broker and his 
representative any of the following penalties commensurable with the offence committed:  
 
1.      Notice (warning).  
2.     A fine not to exceed SR 5000 or its equivalent in the currencies of the other Council Member 
 States.  
3.      Suspension of activity for a period not to exceed two years.  
4.       Cancellation of the license and final prevention from exercising the  profession.  
  
 An appeal against the imposition of these penalties may be made to the minister or the 
competent authority within thirty days from the date of notification. The resolution (judgment) of 
the minister or the competent authority shall be final .   
   
Article 115  
 
 The customs broker shall keep a register wherein he records a summary of the customs 
transactions he has completed for the account of others according to the conditions stipulated by 
the customs office. This register shall contain the amount of duties paid to the customs office, the 
fees paid to the broker and any other expenses relating to the transactions. The director or his 
authorized representative shall have absolute power to have access, at any time, to these registers 
(records) without objection by the broker.  
  
SECTION  XI 
  
Rights and duties of the customs officers  
  
Article 116  
 
(a)      The customs officers, when performing their duties, shall be deemed as judicial officers 
within the limits of their competencies.  
 
(b)      The customs officers, when appointed, shall be given identification cards indicating the 
nature of their jobs, to be presented upon request.  
 
(c)       The customs officers shall put on the specified official uniform when performing  their duties 
if the nature of their job so requires.  
  
Article 117  
 
 Civil and military authorities and internal security forces shall render to the customs officers 
every assistance for the performance of their duties once requested and the customs office, in turn, 
shall cooperate with the other official entities.  
  
Article 118  
 
 Customs officers, whose nature of job so requires, are allowed to carry guns. Such officers 
are designated by a resolution of the minister or the competent authority . G/VAL/N/1/ ARE/1 
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  Article 119  
 
 Any customs officer, whose services are terminated for any reason whatsoever, shall return 
the items in his custody to his immediate supervisor.  
  
Article 120    
 
 The incentives and allowances granted to the customs officers are determined by a decision 
of the minister or the competent authority based on a proposal from the director general according 
to the nature of their jobs. Such incentives and allowances shall be effective once approved by the 
competent authorities.  
  
SECTION  XII 
  
Customs Zone  
  
Article 121  
 
 Prohibited goods, restricted goods and goods subject to higher customs taxes "duties" as well 
as the other goods designated by a decision of the director general shall be subject to the provisions 
of the customs zone. The Rules of Implementation shall specify the conditions of transportation 
within this zone and the necessary documents and procedures.  
  
SECTION  XIII 
  
Customs Matters  
  
Chapter I  
Investigation of Smuggling  
 
Article 122  
 
(a)  Customs officers shall combat smuggling. To this effect, they are authorized to inspect the 
goods and the means of transport and to search persons under the provisions herein, and 
the other applicable Laws.  
 
(b)  The body search of women shall be conducted only by a female inspe ctor. 
 
(c)  In the event there are adequate evidences of the presence of contraband, and after obtaining 
permission from the competent authority, customs officers shall be entitled to inspect any 
house, store or shop according to the applicable Laws.  
 
(d)  Customs officers shall not be held responsible for the damages resulting from the proper 
performance of their jobs.  
  
Article 123  
 
 Authorized customs officers have the right to get aboard the vessels anchoring in the local 
ports or those entering or leav ing such ports and to stay aboard until the cargo is unloaded and they 
may inspect all parts of the vessel.  
  
Article 124  
 
 Authorized customs officers have the right to get aboard the vessels in the customs zone for 
inspection or presentation of the cargo manifest and the other required documents under the 
provisions herein; when refraining from producing such documents or in the absence of such 
documents and when contraband or prohibited goods are suspected to be concealed, customs 
officers may take all necessary measures to seize such goods and shall lead the vessel to the nearest 
customs office.  
  
Article 125  
 G/VAL/N/1/ ARE/1 
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   The Administ ration may take appropriate actions for investigating (detecting) smuggling inside 
and outside the customs office according to the rules laid down by the minister or the competent 
authority.  
  
Article 126  
 
 Investigation of smuggling, seizure of goods and proving customs offences may be conducted 
on all goods within the territories of the country in the following cases:  
 
1.   in both   the land and maritime (sea) customs zones.  
2.   At the customs offices, seaports, airports and all the places subject to cu stoms control.  
3.  Beyond the land and maritime (sea) zones when continuously tracking controlled deliveries 
of the goods that have been witnessed within the zone in a situation that obviously indicates 
that they are intended to be smuggled.    
  
Article 1 27 
 
 Customs officers are entitled to have access to the papers, documents, records, 
correspondence, commercial contracts and instruments  whatsoever, directly or indirectly relating 
to the customs operations, and to seize them  when offences are found out  which shall be done at 
the premises of the shipping and transportation companies and the natural and legal persons 
involved in customs operations.  
  
 Such companies and persons shall keep all the aforesaid documents for a period of five years 
from the da te of completion of the customs operations.  
  
Article 128  
 
 Customs officers may detain any person suspected to have committed or attempted to commit 
an offence or involved in committing any of the following offences:  
 
(a)  Smuggling  
 
(b)  Transporting or acquisition of contraband.  
  
Chapter  II 
Seizure  Report  
  
Article 129  
 
 The seizure report of the offences and crimes of customs smuggling shall be made according 
to the practices set forth in this Law.  
  
Article 130  
 
 When the offence/crime  of smuggling is detected, a seizure report shall be promptly made by 
at least two customs officers and it can be made by one customs officer when necessary.  
  
Article 131  
 
 The seizure report shall contain the following details:  
 
1.  The place, date and h our (in letters and figures) it is prepared.  
2.  Names of the customs officers who had detected the offence and those who had prepared 
the seizure report, their signatures and the nature of their jobs.  
3.  Names of the offenders or those responsible for sm uggling, their nationalities, 
characteristics, occupations and detail addresses.  
4.  Seized goods, kinds and quantities thereof, their value and tariff   heading.  
5.  Detailed facts, statements of the offenders or the individuals responsible for smuggling and 
statements of witnesses, if any.  
6.  An indication in the seizure report that it has been recited to the offenders or those involved 
in smuggling who had approved it by signing it or refused to do so.  G/VAL/N/1/ ARE/1 
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  7.  All the other useful documents and the presence or absence of the offenders or those 
involved in smuggling when making inventory of the goods.  
8.  Referring samples of the seized contraband to the competent authorities for verification of 
prohibited materials.  
9.  Identifying the authority to which contraband has been delivered and taking an  
acknowledgement of receipt.  
10.  Identifying the security entity to which the smuggler(s) has been delivered and the hour and 
date of delivery.  
  
Article 132  
 
(a)  The seizure report, prepared according to Articles 130 and 131 herein, is a proof of the 
material facts that have been seen by the customs officers  who had prepared it, unless 
proved otherwise.  
 
(b)  The formal deficiency in the seizure report does not cause it to be null and may not be 
returned to the customs officers who had prepared it  unless such deficiency is relating to 
material facts.  
  
Article 133  
 
 The Customs office may seize the goods subject of offence or smuggling and the other items 
used for concealment as well as the means of transport whatsoever (i.e. boats, vehicles and an imals) 
excluding vessels, aircraft and public buses intended for the transport of passengers, unless these 
are specially designed for smuggling purposes.  
  
Article 134  
 
 Smuggled goods or those attempted to be smuggled such as narcotic drugs and the like s hall 
be disposed of according to the Laws and regulations in force in the State.  
  
Chapter III  
Precautionary (Provisional) Measures  
  
Part I  
Precautionary (Provisional) Seizure  
  
Article 135  
 
(a)   Customs officers executing the seizure report may seize the goods -subject of smuggling or 
offence - and the means of concealment and transport thereof and all documents in order to 
prove the offences or smuggling and to secure the duties, taxes and fines.  
 
(b)      The director general may, when necessary , have an order issued by the competent 
authorities to effect provisional attachment on the properties of the offenders and smugglers 
as a security of the payment of the customs duties and taxes and fines and implementation 
of the final decisions and judgm ents issued in this respect.  
  
Article 136  
 
 The director general may, when necessary and as a guarantee of the public treasury 's rights, 
impose a customs security on the property of the tax (duties) payers or their partners.  
  
Article 137  
 
 Arrest may be  authorized only in the following cases:  
 
1.  Smuggling offences in the act.  
2.  Resistance to customs officers or security officers that impedes seizure of smuggling cases 
or customs offences or the persons involved therein.  
3.  When the persons are like ly to escape in order to avoid the fines, penalties or compensations 
that might be imposed.  G/VAL/N/1/ ARE/1 
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    The authorized customs officers or the security authorities shall issue the arrest order. The 
arrested person shall be presented to the competent court within 24 hours from the time of arrest.  
 
Part II  
Preventing the Offenders and the Persons Accused  
of Smuggling from Leaving the Country  
  
Article 138  
 
 The director general or his authorized representative may ask the competent authorities to 
prevent the offenders or the persons accused of smuggling from leaving the country if the value of 
the seized goods is not sufficient to cover the taxes, duties and fines.  
  
 Such prevention order shall be cancelled if the offender or the person accused of smuggling 
has submitted a bail equivalent to the claimed amounts, or if it is found out thereafter that the value 
of the seized goods is sufficient to cover the claimed amounts.  
  
Chapter IV  
Customs Offences and Penalties Thereof  
  
Article 139  
 
 The collected customs  fines and seizures provided for herein are deemed as a civil 
compensation to the Administration and shall not be covered by the provisions of amnesty.  
  
Article 140  
 
 In the event of multiple offences, fines shall be imposed on each offence separately and  the 
severest fine will be sufficient to impose if the offences are so correlated and inseparable.  
  
Article 141  
 
 With the exception of the smuggling cases provided for in Article 142 herein and without 
prejudice to the international agreements in force, a fine shall be imposed on the following offences 
according to the rules of implementation of this Law:  
 
1.  Offences of importation and exportation.  
2.  Offences of customs declarations.  
3.  Offences of goods in transit.  
4.  Offences of warehouses.  
5.  Offences of zones falling under customs surveillance.  
6.  Offences of temporary admission.  
7.  Offences of re -exportation.   
8.  Any other customs offences.   
  
Chapter V  
Smuggling and Penalties Thereof  
  
Part I  
Smuggling  
  
Article 142  
 
 Smuggling is to bring or attempt to bring goods into or out of the country in contravention to 
the applicable laws without payment of the customs taxes "duties", in whole or in part, or in 
contradiction to the provisions of prohibition or restriction provide d for herein or in the other laws.  
  
Article 143  
 
 The following actions are particularly deemed as smuggling:  
 
1.  Not proceeding with the goods to the first port of entry (customs office).  G/VAL/N/1/ ARE/1 
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  2.  Not following the routes specified for getting the goods into  or out of the country.  
3.  Unloading or loading the ships contrary to the Laws applicable at the customs office, or 
unloading or loading the ships beyond the marine customs zone.  
4.  Illegal unloading or loading of aircraft cargo  outside official airport s or dropping goods during 
flight, subject to the provisions of Article (40) herein.  
5.  Not declaring to the customs office the imported or exported goods without a manifest 
including the goods accompanied by passengers, which have a commercial character.  
6.  When the goods surpass the customs office at entry or exit without being declared.  
7.  Discovering goods, not declared to a customs office, concealed in places or cavities not 
usually designed for containing such goods.  
8.  Increase, shortage or alteration in the number of the packages or the contents thereof in a 
situation suspending the duties provided for in Chapter VII herein, discovered after the goods 
have left the customs office. This provision applies to the goods that have illegally trans ited 
the country or without finalization of their customs procedures in which case the carrier shall 
be held responsible.  
9.  Failure to produce the evidences prescribed by the Administration to justify suspensions of 
the customs taxes "duties".  
10.  Takin g the goods out of the free zones and duty -free shops, customs warehouses, stores or 
customs zones without finalization of their customs procedures.  
11.  Producing false, fraudulent or fabricated documents or lists or affixing false marks intended 
to evade  the customs taxes "duties", in whole or in part, or to avoid the provisions of 
prohibition and restriction.  
12.  Transporting or acquisition of prohibited or restricted goods without submitting evidences 
supporting their legal importation.  
13.  Transporti ng or acquisition of goods subject to customs authority within the customs zone 
without legal documents.  
14.  Non re -importation of the goods prohibited from exportation that were temporarily exported 
for any purpose whatsoever.  
  
Part II  
Penal Responsibil ity 
  
Article 144  
 
 The penal responsibility for the smuggling offence requires the presence of intention. 
Determination of this responsibility takes into account the applicable penal provisions. The following 
are deemed to be penally responsible in partic ular: 
 
1.      Principal perpetrators (offenders).  
2.      Partners in the offence.  
3.      Inciters and interferers.  
4.   Possessors of contraband.  
5.  Owners of the means of transport used for smuggling, drivers and assistants who are proven 
to be involv ed in the contraband.  
6.  Owners or tenants of the shops and places where contraband are kept or the beneficiaries 
who are proved to be aware of the presence of contraband in their shops or places.  
  
Part III   
Penalties  
  
Article 145  
 
 Without prejudice to any higher penalty provided for in the other laws applicable in the State, 
smuggling and like offences and the attempt to commit any of them, shall be penalized as follows:  
 
1.      If the smuggled goods are subject to high customs taxes "duti es", the penalty shall be a fine 
not less than double the payable customs taxes "duties" and not more than double the value 
of the goods and imprisonment for not less than one month but not to exceed one year or 
either of them.  
2.      As for the other goo ds, the penalty shall be a fine not less than double the payable customs 
taxes "duties" and not more than the value of the goods and imprisonment for not less than 
one month but not to exceed one year or either of them.  G/VAL/N/1/ ARE/1 
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  3.      If smuggled goods are exempt ed from customs taxes "duties", the penalty shall be a fine of 
not less than ten percent of the value of the goods and not more than their value and 
imprisonment for not less than one month but not to exceed one year or either of them.  
4.       If smuggled  goods are prohibited ones, the penalty shall be a fine not less than the value of 
the goods but not more than three times the value and imprisonment for not less than six 
months but not to exceed three years or either of them.  
5.      Confiscation of the smuggled goods or imposing a fine equivalent to the value thereof when 
the goods are not seized.  
6.      Confiscation of the means of transportation and the tools and materials used in smuggling, 
excluding public means of transportation such as ships, airc raft, trains and public vehicles, 
unless there are intended or hired for smuggling purposes, or imposing a fine equivalent to 
their value when goods are not seized.  
7.      The penalty may be doubled if the offence is repeated.  
  
Article 146  
 
 The director  general may hold the goods and the seized means of transport in case the 
smugglers have escaped or could not be caught, and sell them according to the provisions of 
Section  14 herein, and the proceeds of sale shall revert to the government upon the expiry  of one 
year form the date of sale with the smugglers not being caught. Should the smugglers be caught or 
bought to court during this period and the goods have been ordered to be confiscated, the order of 
confiscation shall apply to the proceeds of sale.   
  
Chapter VI  
Prosecutions (Pursuits)  
  
Part I  
Administrative Prosecutions (Pursuits)  
  
Article 147  
 
(a)  The director general may issue the necessary orders for collection of the payable customs 
taxes "duties" and fines, which the payer has not paid.  
 
(b)   Objection to the collection orders may be made to the Administration within fifteen days from 
 notification date. Nevertheless, this shall not stay execution of the orders (Judgments) unless 
 the claimed amounts are paid under deposit through a bank guarantee or in cash.  
  
Article 148  
 
(a)   The fines provided for in chapter 5 of this section shall be imposed by a resolution of the 
 director general or his authorized representative.  
 
(b)   The offender or his representative shall be notified of the im posed fine by a written notice 
 through the competent authority. The offender shall pay the fines within fifteen days from the 
 date of notification.  
  
Article 149  
 
 The penalization orders (judgments) referred to in the preceding Article may be appealed 
before the minister or the competent authority during the same period and the minister or the 
competent authority shall have the right to confirm, amend or cancel the penalization order.  
  
Part II  
Prosecution of the Smuggling Offences  
  
Article 150  
 
 The action of smuggling offences may be reconsidered only upon written request from the 
director general.  
  
  G/VAL/N/1/ ARE/1 
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  Part III   
Conciliatory Settlement (Compromise)  
   
Article 151  
 
(a)   The director general or his authorized representative may - upon a written request by the 
 person concerned - make a compromise (conciliation), in the smuggling issues, whether prior 
 to the bringing of the action or when the action is being tried and prior to the issuance of the 
 first instant judgment which will be in lieu of all the customs penalties and fines provided for 
 in article 145 herein.  
 
(b)  The Manual of Reconciliatory Settlements is issued by a resolution of the minister or the 
competent autho rity. 
 
Article 152  
 
 Subject to the provisions of Article 150, the conciliatory settlement (Compromise)  shall be as 
follows:  
 
1.      If contraband are goods that are subject to high customs taxes "duties",  the penalty shall 
be a  fine not less than  twi ce the amount of the customs taxes "duties"  and not exceeding 
double the value of the goods.  
2.       As regards the other commodities, the penalty shall be a  fine not less than the amount of 
the payable customs taxes "duties" and not exceeding 50% of  the value of the goods.  
3.      If the smuggled goods are not subject to customs taxes "duties" (exempted), the penalty 
shall be a fine not less than 10% of the value of the goods and not more than 50% of their 
value.  
4.     If smuggled goods are prohibit ed ones, the penalty shall be a fine not less than the value of 
the goods and not more than three times their value.  
5.    Confiscation, release or re -exportation (wholly or partially) of the smuggled goods in 
 question.  
6.      Confiscation of the means o f transport together with the tools and materials used for 
smuggling excluding the public means of transport such as vessels, aircraft and cars unless 
these are designed or rented for this purpose.  
  
Article 153  
 
 The action (claim) shall be relinquished w hen a reconcilement is reached.  
  
Chapter VII  
Liability and Joint Liability  
  
Article 154  
 
(a)  The offence and the consequent civil liability in the smuggling offences arise when the 
material evidences thereof are available. Good faith or ignorance shall not be taken into 
account. However, the offender shall be exonerated  from liability if he is pro ved to be a 
victim of a force majeure as well as he who proves that he has not committed any act of 
offence or smuggling or caused it to occur or be committed.  
 
(b)  Civil liability shall include, in addition to the offenders and smugglers, the partners, 
financiers, sponsors, beneficiaries, agents, clients, donators, carriers, possessors and 
consigners of the goods.  
  
Article 155  
 
 Investors of private shops and premises wherein infringing or smuggled goods are kept shall 
be held responsible. Whereas inves tors  and employees of public shops and premises as well as the  
owners, drivers and assistants of public means of transport shall be  held responsible unless they 
prove their ignorance of the presence of such infringing or smuggled goods and that they hav e no 
direct or indirect interest in them.  
  G/VAL/N/1/ ARE/1 
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  Article 156  
 
 Guarantors (sponsors) shall be responsible, within the limits of their guarantees, for the 
payment of customs taxes "duties", fines and the other amounts payable to the Administration by 
the princi pal payers.  
  
Article 157  
 
 Customs brokers shall be fully responsible for the offences and smuggling offences they or 
their authorized employees commit in the customs declarations. But they will not be responsible for 
the undertakings submitted in the cus toms declarations unless such undertakings are made by them 
or they have guaranteed the undertakers.  
  
Article 158  
 
 Owners of the goods, employers and carriers of goods shall be responsible for the acts of their 
employees and all the persons working for t heir account in respect to the duties and taxes collected 
by the customs office and the fines and confiscations provided for herein as a result of such acts.  
  
Article 159  
 
 Heirs shall not be responsible for the payment - from their own shares of the heritage - of the 
fines payable by the dead offenders, unless they are partners in smuggling. The action (suit) shall 
be relinquished upon the death of the offender.  
  
Article 160  
 
 Payable customs duties, taxes and fines shall be jointly paid by the offend ers or the persons 
liable for smuggling according to the applicable practices for collecting the funds due to the State 
Treasury. The seized goods and means of transport, if any, shall be a security for the payment of 
the payable amounts.  
  
Chapter VIII 
Rules of Court Proceedings  
  
Article 161  
 
 First instance customs courts may be established at both the Administration and the customs 
offices according to the legal instrument applicable in each state.  
  
Article 162  
 
 The first instance customs court  shall have the following jurisdictions:  
 
1.   Hearing all smuggling offences and the like.  
2.  Hearing all offences committed against the provisions of this Law and the Rules of 
Implementation thereof.  
3.   Hearing the objections to the collection orders under the provisions of Article 147 herein.  
4.  Considering the objections submitted against the penalization judgments under the 
provisions of Article 148 herein.  
5.  The court may request any person accused under this Law to bring a sponsor to guarantee 
his appearance before the court or it may decide to detain him until settlement of the issue.  
  
Article 163  
 
(a)  Judgments of the first instance  customs court may be appealed before an ad hoc appeal  
court formed under the legal instrument applicable in each State.  
 
(b)   this court shall try the actions brought to it and shall take its decisions by majority.  
 G/VAL/N/1/ ARE/1 
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  (c)  The period of appeal shall be thirty days from the date of notification of the first instance 
judgment by default and from the date of pronouncement of the judgment in presence of 
the litigant.  
  
Article 164  
 
 The judgments passed by the court of appeal sha ll be final.  
  
Article 165  
 
 Collection and penalization orders and the judgments passed in the customs matters shall be 
carried out by all means of execution, after having the final status, on the movable and unmovable 
property of the offenders. The minis ter or the competent authority may have an order issued to 
attach a sufficient amount of such property to cover payment of the claimed amounts.  
  
SECTION XIV  
  
Sale of Goods  
  
Article 166  
 
(a) The Administration has the right to sell the perishable seized goods and those subject to 
shortage or leakage or if the goods are in a condition that might endanger the safety of the 
other goods and the facilities therein.  
 
(b)  Seized goods which are subject to a considerable depreciation may be sold by authorization 
from the director general or his representative. The sale of the goods shall be based on a 
report showing the condition of the goods and the justifications of sale w ithout having to get 
an order from the competent court, provided that the owner of the goods shall be notified 
of such sale.  
 
 If a judgment (order) to return the goods to its owner is issued thereafter, then price of the 
sold goods shall be paid to the o wner after deducting any payable duties or taxes.  
  
Article 167  
 
 Upon expiry of the period specified by the minister or the competent authority, the 
Administration may sell the goods placed in the customs warehouses, those existing in the yards or 
wharve s or left out goods at the customs offices.  
  
Article 168  
 
 The Administration shall sell the following:  
 
1.  The goods and means of transport that have become property of the customs under a 
confiscation judgment, a compromise or a written waiver.  
2.  The goods not withdrawn from the customs warehouses within the legal period specified 
according to Article 75 herein.  
3.  The goods and items whose owners are unknown and which have not been claimed within 
the storage period specified by the director general  or the competent authority.  
  
Article 169  
 
 The Administration assumes no responsibility for any damage caused to the goods being sold 
under the provisions herein, unless it is proved that the Administration had committed an obvious 
default in the proced ures of the sale process.  
  
Article 170  
 
(a)  The sales provided for in this Section shall be effected in an auction according to the rules 
and conditions prescribed by the minister or the competent authority.  
 G/VAL/N/1/ ARE/1 
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  (b)  The goods, items and the modes of transport shall be sold without the customs taxes "duties" 
and other taxes, excluding the commission that shall be borne by the buyer during the sale 
procedures.  
  
Article 171  
 
(a)  The proceeds of sale shall be distributed as follows:  
 
1.   Customs taxes "duties".  
2.   The costs of the sale process.  
3.   The expenses incurred by the Administration whatsoever.  
4.   Transportation charges, when necessary.  
5.   Any other charges.  
 
(b)  The balance remaining from the proceeds of selling the goods, the importat ion of which is 
permitted on the day of sale,  after deducting the sums provided for in paragraph (a) herein, 
shall be deposited with the Administration as a deposit. The persons concerned may claim 
refund within one year from the sale date, otherwise such  balance will be transferred to the 
treasury.  
 
(c)  As for the goods that are prohibited or not allowed to be imported on the day of  sale, the 
remaining  balance shall be property of the Treasury.  
 
(d)   As for the goods that are prohibited, restricted or  not allowed to be imported and those sold 
under a compromise, penal order or a court judgment (relating to smuggling), the remaining 
balance shall be distributed according to the provisions of article 172 herein after deducting  
the taxes ,duties and cost s.  
  
Article 172  
 
 The share of the treasury from the proceeds (amounts) of the customs fines and the value of 
the seized or abandoned goods and means of transport are determined at 50% after deducting the 
customs duties taxes "duties" and costs. The rema ining portion of the balance shall be deposited 
with the customs rewards fund or with any other account in favour of the customs, to be paid to the 
individuals who had discovered and seized the offences and their assistants. The rules for distributing 
such rewards shall be laid down by the minister or the competent authority upon a proposal from 
the director general.  
  G/VAL/N/1/ ARE/1 
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  SECTION XV  
  
Privilege of the Customs Administration  
  
Article 173  
 
 For the purpose of collecting the customs taxes "duties" and the other fees and taxes to be 
collected as well as the fines, compensations, confiscations and refunds, the Administration shall 
have a general privilege over the movable and unmovable property of the tax payers and offenders, 
even in the case of bankruptcy, and shall also have precedence over all debts except for the judicial 
expenses.  
  
SECTION XVI  
  
Prescription  
  
Article 174  
 
 Any claim or action for refunding the customs taxes "duties" paid since over three years shall 
not be accepted.  
  
Article 175  
 
 The Administration may destroy the records, receipts, declarations and the other customs 
documents upon the expiry of five years following finalization of the customs procedures. The 
Administration shall not be bound to present such documents or give copy the reof to any entity upon 
the elapse of that period.  
  
Article 176  
 
 Without prejudice to the other laws and regulations in force in the State, prescription period 
for the Customs Administration, if not prosecuted, shall be as follows:  
  
15 years for the fol lowing two cases : 
 
(a)  Acts of smuggling and the like effective from the date of committing the offence.  
 
(b)  Execution of the smuggling judgments and the like effective from the date of passing the 
judgment.  
  
5 years for the following cases, if not claimed : 
 
(a)  Investigation of the offences from the date occurred.  
 
(b)  Collection of the fines and the confiscations imposed on the offences with effect from the 
issuance of the penalization order.  
 
(c)  Collection of the customs taxes "duties" and the  other charges that have not been collected  
due to a mistake by the customs office effective from the date of  lodgement of the customs 
declaration.  
  G/VAL/N/1/ ARE/1 
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  SECTION XVII  
  
Final Provisions  
  
Article 177  
 
(a)  The director general may exclude the ministries, go vernment departments and the official 
public organizations from certain procedures to facilitate their duties.  
 
(b)  The director general my sell the confiscated or abandoned goods and materials to the 
interested ministries, government departments and offi cial public organizations, if they 
express their need for them, at the prices he deems appropriate, or may abandon them free 
of charge by a resolution by the minister or the competent authority . 
  
Article 178  
 
 The Financial and Economic Cooperation Committee of the GCC States shall approve the Rules 
of implementation of this law which will be issued according to the legal instrument of each Sate.  
  
Article 179  
 
 The Common Customs Law of the GCC States shall, w hen implemented, supersede the 
customs Laws and regulations in force in the Member States within the limits of the constitutional 
rules and Laws and the basic laws in force in each State without contradiction therewith.  
  
  G/VAL/N/1/ ARE/1 
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  Rules of Implementation of the  Common Customs Law of the Member S tates of the 
Cooperation Council for the Arab States of the Gulf  
 
I.  VALUE OF GOODS FOR CUSTOMS PURPOSES  
 
 Based on the provisions of Article (26) of the Common Customs Law of the GCC States, the 
value of goods for customs purposes shall be according to the following rules and principles:  
 
Article (1)  
 
I. GENERAL PROVISIONS  
1.  The importer may clear his goods after payment of the customs taxes "duties" under cash 
deposit, if the final determination of the value is prolonged.  
 
2.  The importer may obtain, upon a written request, a written clarification of the method used 
in determining the customs value of his goods.  
 
3.  The importer or any person liable for payment of the customs taxes "duties" may app eal 
against the determined customs value, without penalty.  
 
4.  The confidential information or the information provided on confidential basis for valuation 
purposes shall be treated as top confidential and may not be disclosed unless within the limit requ ired 
for court procedures.  
 
5.  Freight, insurance and other relevant charges shall be added up to the customs value of the 
imported goods until arrival to the port of destination in the GCC States.  
 
6.  The time of payment of the customs taxes "duties" shall be the time approved for currency 
exchange rate.  
 
7.  In determining the transaction value, no discounts or deductions of the payable or actually 
paid price shall be considered if such discounts/deductions are made between the buyer and sell er 
after the date of importation of the goods. Also, no credit balances pertaining to previous 
consignments shall be considered when determining the customs value of the goods being valued.  
 
8.  The Valuation Agreement shall be the reference for the interp retation and application of the 
present article.  
 
II.  BASES OF CUSTOMS VALUATION  
 Imported goods are valued according to the following bases:  
 
1.  The first basis for determining the value for customs purposes is the   transaction value of the 
imported goods.  
 
2.  If the customs value cannot be determined according to the first basis above, it shall be 
determined by the sequential application of the following alternative methods:  
 
(a)  Transaction value of identical goods  
(b)  Transaction value of similar good s 
(c)  Deductive value  
 (d)  Computed value  
3.  If the customs value cannot be determined under the above methods, it shall be determined 
by application of reasonable methods that conform to the general principles and provisions of the 
Valuation Agreement,  but with more flexibility.  
 
4.  The importer may request that "Deductive value" and "Computed value" be applied in reverse 
sequence.  
  
 
  G/VAL/N/1/ ARE/1 
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  First Method:   Transaction Value of the Goods Being Valued.  
 
 Transaction value is the price actually paid or to be paid against the sale of the goods for 
export to GCC States, mutatis mutandis.  
  
I  Conditions of the transaction value  
  
The transaction must satisfy the following conditions : 
 
1.  That there are no restrictions applicable to the disposition or use of the imported goods by the 
buyer, other than the restrictions imposed by law in  the GCC States, or those which specify the 
geographical area within which the goods may be resold, or those which do not substantially affect 
the value of the goods;  
 
2.  The s ales price is not subject to any condition or compensation whose value cannot  be 
determined;  
 
3.  That the seller is not entitled to any part of the proceeds of the resale, disposition or use of 
the goods by the importer as a subsequent stage, directly or indirectly, unless a proper adjustment, 
based on objective and quantitative data , can be made; and  
 
4.  that  no relationship, if any, shall exist between the seller and buyer which  affects the 
transaction value  according to the provisions of paragraph (23) of Article (2) of this Law.  
  
II  Adjustments to the transaction value  
 
 When necessary, the following shall be added to the price actually paid or to be paid:  
 
1.  The costs borne by the buyer to the extent they are not included in the price actuall y paid or 
to be paid;  
 
(a)  amounts of commission and brokerage, excluding the purchasing commission,  
(b)  cost of the containers that are treated for customs purposes as one unit along with 
the goods under assessment, and  
(c)  packing cost, whether for labour or material  
 
2.  An appropriate percentage of the costs of the following goods and services provided by the 
buyer, directly or indirectly, free or at a reduced cost, against its use in production of the imported 
goods, if it was not included in the price paid or to be paid, as per the following:  
 
(a)   materials, parts, components and similar items used in production of the imported 
 goods,  
(b) tools, dies, moulds and similar items used in production of the imported goods,  
(c) materials consumed in p roduction of the imported goods, and  
(d)  engineering works, designs, studies, graphs, drawings and similar items necessary for 
 production of the imported goods and done in a country other than the GCC States.  
 
3.  License and royalty fees relating to the  imported goods under assessment that must be paid 
by the importer (buyer), directly or indirectly, as a condition of sale of the goods being valued if not 
included in the price actually paid or payable, and  
 
4.  Value of any part of the proceeds from any subsequent sale, disposition or use of the imported 
goods, payable to the seller directly or indirectly.  
  
  G/VAL/N/1/ ARE/1 
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  III  The amounts related to the items mentioned in paragraphs 1 and 2 above shall be 
included based on objective and quantifiable data  
  
Second Met hod:   Transaction Value of Identical Goods  
  
 Transaction value of the identical goods sold for export to the GCC States and exported at or 
about the same time as the export of the goods being valued.  At the time of its application, the 
transaction value of identical goods in a sale at the same comme rcial level and quantity shall be 
used.   
 
 In case such a transaction is not found, the transaction value of identical goods sold at a 
different commercial level or different quantity, adjusted for the difference, shall be used.  In case 
such a transactio n is not found, the transaction value of identical goods sold at a different commercial 
level or different quantity adjusted for the difference shall be used.  
 
 If more than one transaction value for identical goods is found, the lowest of such values shal l 
be used for determining the customs value for the imported goods.  
  
Third Method:   Transaction Value of Similar Goods  
  
 Transaction value of the similar goods sold for export to the GCC States and exported at or 
about the same time as the export of the  goods being valued.  At the time of its application, the 
transaction value of similar goods in a sale at the same commercial level and quantity shall be used.  
In case such a transaction is not found, the transaction value of similar goods sold at a diffe rent 
commercial level or different quantity, adjusted for the difference, shall be used  
  
 When there is more than one transaction value of similar goods, the lowest value will be used 
as the customs value of the imported goods.  
  
Fourth Method:  Deductive  Value  
 
 The customs value will be determined according to the unit price at which  the goods being 
valued were sold, or identical goods, or similar goods (in the same condition as  imported), in the 
earliest sale in the Kingdom, in the local market, at the greatest aggregate (wholesale) quantity at 
or about the time the goods being valued are imported but before the elapse of 90 days from 
importation of the goods being valued, to non -related persons, provided that the following costs and 
expen ses, incurred after arrival of the goods at the port of destination  in the GCC States,  shall be 
deducted:  
 
1.  Commissions usually paid or payable or additions usually added to allow for profit and general 
expenses in connection with the imported goods o f the same class or kind sold in the Kingdom;  
 
2.  Local transportation and insurance costs and other related costs;  
 
3.  Customs taxes (duties).  
 
 If the imported goods, identical goods or similar goods,  are not sold in the local market in 
the same condi tion as imported, the customs value shall be based, if requested by the importer, on 
the unit price at which the imported goods are sold, after processing and finishing,  at the greatest 
aggregate quantity to non -related persons in the GCC States, along wi th making the appropriate 
deductions for the added value for such  processing in addition to the deductions provided for in 
paragraphs (1), (2) and (3) of this method.  
  
Fifth Method:   Computed Value  
 
 Computed value is the sum of the various costs incur red in the country of origin of the goods 
which includes the following:  
 
1.  Cost or value of materials and fabrication or other processing employed in producing the 
imported goods;  
 G/VAL/N/1/ ARE/1 
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  2.  An amount for profit and general expenses equal to that usually reflected in the sales of goods 
of the same class or kind as the goods being valued which are made by producers in the country of 
exportation for export to the GCC States;  
 
3.  The costs listed in II b. of the first method, if not included in (1) o r (2) above, and the cost of 
packing.  
  
Flexible Valuation Methods  
 
 If the customs value of the imported goods cannot be determined under the foregoing 
methods, the customs value shall be determined by reasonable methods that are in line with the 
general principles and provisions of the Valuation Agreement by referring once again to those five 
methods, but with more reasonable flexibility of application.  
  
Imported goods may not be valued on the basis of : 
 
1.  The selling price in the GCC States of goods p roduced in the GCC States;  
 
2.  The selling price of the goods in the local market of the country of exportation;  
 
3.  Minimum, arbitrary or fictitious values;  
 
4.  Production costs different from the computed value defined in the fifth method  
 
5.  The pri ce of goods for export to a country other than the GCC States; or  
 
6.  A system which provides for the acceptance, for customs purposes, of the higher of two 
alternative values.  
  
II.  Temporary Admission  
 
 Based on the provisions of Articles (89 –94) of th e Common Customs Law of the GCC States, 
temporary admission shall be subject to the following conditions and procedures:  
  
Article (2)  
 
(a)  The goods mentioned in Articles (89) and (90) herein shall be allowed to be placed under 
temporary admission for six renewable months with the suspension of the levied customs 
taxes "duties" as stated in the Rules of implementation.  
 
(b)  The customs taxes "duties" and other taxes "duties" , if any, shall be secured by a bank or 
cash guarantee as circum stances may require and at the discretion of the director general.  
 
(c)   Temporary admission procedure shall be terminated by re -exporting  the admitted goods to 
outside of the state or depositing them into the free zones or customs warehouses or stores 
or placing them for home consumption and payment of payable customs taxes "duties" 
according to the procedures prescribed by the director general.  
  
Temporary Admission of Heavy Machinery and Equipment  
  
Article (3)  
 
(a) Temporary admission of the heavy mac hinery and equipment, which are not available in the 
markets and are required for the completion of projects or the conducting of practical and 
scientific tests relating to those projects, shall be granted for a period of six months 
renewable for similar p eriods which shall not exceed three years at the most unless the 
completion of a project requires a longer period.  
 
(b)  For the project to benefit from temporary admission under these rules, it shall be one of the 
projects completed for favour of the gove rnment or an investment project whose completion 
requires the admission of such machinery and equipment for this purpose.  
  G/VAL/N/1/ ARE/1 
- 41 - 
  Article (4)  
 
(a)  Temporary admission shall not be granted to the spare parts, tyres, batteries and other 
materials that can be cons umed in the projects.  
 
(b)  The type and description of the admitted piece of machinery or equipment may not be 
changed unless after obtaining approval from the Customs Administration.  
 
(c)  The use of the machinery and equipment shall be limited to the co mpletion of project for 
which they have been admitted.  
  
Article (5)  
 
 The entity applying for the temporary admission of the machinery and equipment required for 
the completion of its projects shall:  
 
1.      submit a copy of the contract or agreement  made with the governmental body for the account 
of which the project is being completed; and  
 
2.      make a customs declaration according the form approved for temporary admission and state 
all information and attach the documents required unde r this Law. The declaration shall be subject 
to all customs procedures; and  
 
3.      submit a bank guarantee or cash deposit equivalent to the amount of the customs taxes 
"duties" payable on the registration date of   customs declaration for placing them u nder the 
temporary admission  procedure.  
  
Temporary Admission of Goods for Finishing and Re -exportation  
  
Article (6)  
 
 Foreign goods shall be temporarily admitted into the State with the suspension of the customs 
taxes "duties" levied on them for the pur pose of finishing and re -exportation within a time period 
not to exceed a year.  
  
Article (7)  
 
 The director general shall give instructions specifying the conditions to be satisfied for granting 
temporary admission to the other types of goods mentioned in  Article (90) of this Law, provided that 
the period of temporary admission shall not exceed six months.  
  
Temporary Admission of Foreign Vehicles  
  
Article (8)  
 
 Foreign tourist vehicles (other than those registered in a GCC member state) shall be granted 
a temporary admission as follows:  
 
1.      Six months for the vehicles covered by an International Passage Carnet (IPC); and  
 
2.      Three months for the vehicles not covered by an Inter -national Passage carnet to be renewed 
for a similar period if the pe rson concerned submits bank guarantees or cash deposit equivalent to 
the amount of the payable customs taxes "duties".  
  
Article (9)  
 
A. For a vehicle to benefit from the provisions of temporary admission, the following 
conditions shall be satisfied  
1.      The vehicle shall be officially registered in the country licensed in under a document proving 
the same; and  
 G/VAL/N/1/ ARE/1 
- 42 - 
  2.     The vehicle 's licence shall be valid and shall not have export plates; and  
 
3.     Production of an insurance from an insurance com pany approved in the State covering its 
territories during the period of temporary admission; and  
 
4.      The production of an accredited IPC to secure the customs taxes "duties".   
 
B. In order to benefit from the provisions of these Rules, the following sh all be 
satisfied by the person wishing to obtain temporary admission for his vehicle  
1.      He shall be the owner of the vehicle or authorized to drive it under a special authorization 
issued from the country of registration and duly certified; and  
 
2.      He shall have a valid residence in the country where the vehicle is registered unless he is a 
national of that country; and  
 
3.      He shall have a valid driving licence.  
 
Article (10)  
 
(a)     To benefit from the provisions of these Rules, the IPC shall be accepted by the customs 
administration and its validity shall cover the period of temporary admission of the vehicle.  
 
(b)      The following procedures shall be followed when a vehicle is admitted under the IPC:  
 
1.  The number, date and period o f the temporary admission permit shall be recorded 
on the IPC.  
2.      The relevant coupon shall be cut out from the carnet at entry and exit.  
 
Article (11)  
 
 Students and those on scholarships (other than the GCC nationals) studying at one of the 
universi ties and institutes in the State shall be allowed to renew the period of temporary admission 
for their vehicles during the period of study  or scholarship, provided that the vehicle shall be 
guaranteed by a valid IPC.  
  
Article (12)  
 
 The customs office sh all grant temporary admission to vehicles according to the provisions 
herein.  
  
Article (13)  
 
(a)      The temporary admission permit shall contain all the information relating to the vehicle and 
the person concerned (i.e. plates No., chassis No., engine N o., make and colour of vehicle 
as well as the name of the person concerned, his nationality and passport number).  
 
(b)      The procedure of the temporary admission of foreign vehicles shall terminate when the 
vehicle leaves the country via one of the cust oms offices or when it is placed  in the free 
zone or when it is cleared for home use with the payment of the due customs taxes "duties" 
subject to the approval of Customs.  
  
 III.  Re-exportation of the Goods  
 
 Pursuant to the provisions of Article (91) of the GCC Common Customs Law, procedures, 
conditions and guarantees when re -exporting the foreign goods entering the country shall be as 
follows:  
 
Article (14)  
 
 Foreign goods, imported into the country without payment of the customs taxes "d uties", may 
be re-exported. Such goods include the following:  G/VAL/N/1/ ARE/1 
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  1.      Imported goods that were not withdrawn from the customs stores.  
2.      Imported goods, intended to be re -exported, which have been temporarily released against 
cash or bank guarantees c overing the customs taxes "duties" to be submitted within a period 
not to exceed six month from the date released.  
3.      Goods imported into the country under the temporary admission procedure whose owners 
wish to re -export them.  
4.      Goods deposited  at warehouses which is one of the situations for suspension of the customs 
taxes "duties".  
  
Article (15)  
 
(a)      Re-exportation of the goods shall be under re -export declarations containing all the 
distinctive elements of the goods; such declarations a re made at the discretion of the director 
general.  
 
(b)      The goods may be re -exported by a person other than the importer, subject to the approval 
of the customs office.  
 
(c)      The number of the customs declaration under which the goods have been im ported shall be 
affixed on the re -export declaration.  
 
(d)      The goods shall be subject to the customs inspection and procedures prescribed by the 
Common Customs Law "Law".  
  
Article (16)  
 
 Pursuant to the provisions of Article (97) of the Common Custo ms Law of the GCC States, the 
customs taxes "duties" levied on the foreign goods re -exported to outside of the GCC States shall 
be refunded (drawn back) according to the following controls:  
 
1.     The exporter "re -exporter" shall be the person in whose na me the foreign goods were imported 
or any other person who can definitely prove to the customs administration that he has purchased 
the goods.  
 
2.      The value of the re -exported foreign goods for which the customs taxes "duties" are to be 
refunded shall not be less than five thousand US dollars (or its equivalent in the local currency).  
 
3. A)  The foreign goods "commodity" shall be re -exported within one Gregorian 
year from the date of payment of the customs taxes "duties".   
 B)  The clai m for drawback shall be made within six Gregorian months from 
the date of re -exportation.  
 
4.      The foreign goods to be re -exported shall be of a single consignment for ease of identification 
and matching with the importation documents; however, a singl e consignment may be re -exported 
in part shipments once it is definitely proven for the customs administration that such shipments 
constitute a part of the same consignment.  
 
5.      The claim for drawback shall be for foreign goods that were not locally u sed after importation 
from outside of the GCC States and at the same condition when imported.  
 
6.      Drawback shall be limited to the customs taxes "duties" that were actually paid on the 
imported foreign goods.  
 
7.      The customs taxes "duties" shall be refunded after re -exportation of the foreign goods and 
verification of all the documents required for re -exportation.  
8.      The approved unified "single" customs declaration shall be used for re -exportation of the 
goods, whose customs taxes "duties " are to be refunded, to  outside of the GCC states.  
 
9.      These controls shall be implemented immediately upon the application of the single point of 
entry and the common collection and allotment of the customs taxes "duties" levied on the foreign 
goods.  
 G/VAL/N/1/ ARE/1 
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  10.  These controls shall be reviewed after three years of application or whenever necessary at the 
request of any member State, and the Financial and Economic Cooperation Committee has the right 
to interpret and amend these controls.  
 
11.  These controls shall have priority of application upon contradiction with the laws, regulations 
and procedures in force in any member State.  
  
Article (17)  
 
(a)      Means of land transport carrying re -exported goods shall be subject to the provisions relating 
to the cu stoms sealing and security of covering (canvas), ropes and the other provisions 
applicable to transit.  
 
(b)      Goods shall be re -exported within the prescribed period.  
 
(c)     Customs taxes "duties" levied on the goods to be re -exported shall be secured by cash or 
bank guarantees.  
  
Article (18)  
 
 Re-export declarations shall be discharged and settled and their guarantees shall be released 
upon submission of one of the following evidences:  
 
1.      a copy of the re -export declaration sealed and si gned by the competent customs officer at the 
customs office of exit proving that the goods have left the country.  
 
2.      a copy of the re -export declaration sealed and signed by the competent customs officer 
indicating that the goods have entered the fre e zone.  
 
3.      a discharge certificate approved by the competent authorities at the country of destination 
certifying that the re -exported goods have been imported into it.  
  
 IV.  Exemption of Personal Effects and Gifts Accompanying the Passengers  
  
 Pursuant to the provisions of Article 103(b) of the GCC Common Customs Law, the conditions 
and controls for exempting the personal effects and gifts accompanying the passengers shall be as 
follows:  
  
Article (19)  
 
 Personal effects and gifts accompanying the  passengers whose value does not exceed 3000 
Saudi riyals or its equivalent value in one of the other GCC currencies shall be exempted from the 
customs taxes "duties".  
  
Article (20)  
 
 The following requirements shall be satisfied to qualify to this exemption:  
 
1.      Effects and gifts shall be of a personal nature and in non -commercial quantities.  
2.      The passenger shall not be a frequent traveller through the customs office or a trafficker of 
the items in his possession.  
3.     The number of cigarettes subject to exemption shall not exceed 400 (four hundred) cigarettes.  
  
Article (21)  
 
 Personal effects and gifts benefiting from the exemption referred to in Articles 18 and 19 of 
these Rules shall be subject to the provisions of prohibition and  restriction set forth in the GCC 
Common Customs Law and the national legislation of each Member State.  
  
  G/VAL/N/1/ ARE/1 
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  V.  Exempting the Imports of the Philanthropic Societies (Charities) from the Customs 
Taxes "duties"  
  
 According to the provisions of Article (140 ) of the Common Customs Law of the Cooperation 
Council for the Arab States of the Gulf, the conditions and controls for exempting the imports of the 
charities from the customs taxes "duties" shall be as follows:  
  
Article (22)  
 
(a)      The charity benefit ing from exemption shall be registered with the competent authority in 
the State and the purpose for establishing it shall be to provide services in the humane, 
social, educational, scientific or religious fields or any other charitable purpose not being a  
profitable one.  
 
(b)      Societies with political purposes shall not benefit from exemption from the customs taxes 
"duties".  
  
Article (23)  
 
 To benefit from exemption from the customs taxes "duties", imports of the charities shall:  
 
1.      be of a natu re suitable for the purposes and activity it performs according to its Articles of 
Incorporation; and  
2.      the volume and quantity of the  imports to be exempted shall be proportional to the actual 
needs that enable it to perform its charitable activity ; and  
3.      Such imports shall be directly imported in the name of the charity.  
  
Article (24)  
 
(a)     the charity may not dispose of the exempted imports for purposes other than those for which 
they have been exempted and the management of the charity shall be held responsible for 
that vis -à-vis customs.  
 
(b)      Should the charity wish to sell the consumed or used materials and supplies that were 
exempted from customs taxes "duties", it shall apply in writing to the customs administration 
to obtain approval of the sale after conducting the necessary inspection thereof.   
  
Article (25)  
 
 The competent government authority shall address the customs administration for exempting 
the imports of charities from the customs taxes "duties" on a case by  case basis.  
  
VI.  Goods Subject to the Provisions of the Customs Zone and the Conditions of 
Transport Therein  
  
 Pursuant to the provisions of the GCC Common Customs Law, goods subject to the provisions 
of customs zone shall be treated as follows:  
  
Article (26)  
 
 Goods subject to the provisions of the customs zone shall be accompanied with a transport 
authorization issued by the customs office indicating the following:  
 
1.      Name of the person concerned.  
2.      The distinguishing elements of the good s such as type, number, weight, origin and value.  
3.      Name, type and number of the means of transport and the name of its driver.  
  
Article (27)  
 
A)     Possession of goods within the customs zone shall be prohibited except at the places 
specified by the customs office.  G/VAL/N/1/ ARE/1 
- 46 - 
  B)     Normal requirements of goods which can be possessed within the customs zone for 
consumption purposes shall be specified by a decision of the customs administration.  
  
Article (28)  
 
 The illegal transportation of the goods that are subject to the provisions of customs zone or 
possession or circulation thereof within the customs zone shall be deemed as smuggling.  
  
VII.  Fines Imposed on the Customs Offences  
  
 Without prejudice to the provisions of Articles 142, 143, 1 44 and pursuant to the provision of 
Article 141 of the Common Customs Law, the rules for imposing fines on the customs offences shall 
be as follows:  
  
Article (29)  
 
 A fine not exceeding twice the amount of the customs taxes "duties" and not less than their 
equivalent amount on the following offences:  
 
1.      The customs declaration (exportation, re -exportation) that could lead to benefiting from 
drawback or finalization of the temporary admission procedure for temporarily admitted goods 
without a lega l ground.  
2.      The unjustified increase/decrease of the goods compared to that stated in the manifest.  
3.      The use of the materials subject to exemption or to reduced customs tariff for purposes other 
than those for which they have been imported or replacing, selling or disposing them without the 
approval of the customs administration and the payment of the customs taxes "duties" imposed 
under Articles 99, 100 and 104 of the Common  Customs Law and the provisions of these Rules.  
4.      Disposition of the goods on which the customs taxes "duties" have been suspended for 
purposes other than those for which they have been imported or replacing them without the approval 
of the customs administration and the payment of the customs taxes "duties".  
5.      Redemption of or the attempt to redeem the customs taxes "duties".  
  
Article (30)  
 
 A fine not less than five hundred  Saudi riyals (SR 500) and not exceeding five thousand riyals 
(SR 5000) or its equivalent in the other currencies of the GCC States on t he following offences:  
 
1.      Improper customs declarations that may lead to evading any condition or restriction relating 
to import or export.  
2.      Improper customs declaration in respect to value, type, number, weight, measurement or 
origin that may lead to the loss of the customs taxes "duties" through mis -declaration according to 
the provisions of Article (47) of this law.  
3.      Alteration of the routes specified in the transit declaration without the consent of the 
Administration according to  the provisions of Article (710) of this law.  
4.     The lack of the manifest of the goods or the availability of more than one manifest for the 
goods according to the provisions of Articles 30(a), 36(a) and (38) of this law.  
5.      Submission of the requ ired certificates for the discharge and settlement of the transit, 
temporary admission or re -export declarations in contravention to the conditions prescribed by the 
director general under the provisions of Article (68) of this law.  
6.      Contravention o f the rules and conditions prescribed by the director general for depositing the 
goods at the warehouses according to the provisions of Articles (74, 75) of this law  
7.      Anchorage of vessels, landing of aircrafts or stopping of other means of transport  at places 
other than those prescribed by the Administration according to the provisions of Articles (20, 21, 
22, 37) of the Law  "law".  
8.      Departure of vessels, aircrafts and other means of transport from the ports or the customs 
boundary without aut horization from the customs administration according to the provisions of 
Article (41) of this law.  
9.      Transfer of goods from one means of transport to another without the consent of the 
Administration according to the provisions of Articles (32, 45) of this law.  
10.  Unloading of goods from vessels and other means of transport or withdrawing the goods 
without authorization from the Customs Administration or in the absence of the customs officers or 
outside the office hours prescribed according to the  provisions of Articles (32, 40, 45) of this law.  G/VAL/N/1/ ARE/1 
- 47 - 
  11.  Impeding the customs officers from carrying out their duties and exercising their right of 
inspection, auditing and reviewing according to the provisions of Section XIII of this law. This fine 
shall be  imposed on every individual involved in the offence.  
12.  Not keeping records, documents and the like for the period prescribed in Articles (115, 127) 
of this law.  
13.  Breaking the sealing or removing the customs seals from goods.  
  
Article (31)  
 
 A fine  not less than five hundred  Saudi riyals (SR 500) but not exceeding one thousand riyals 
(SR 1000) or its equivalent in the other currencies of the GCC States on the following offences:  
 
1.      Non-submission of the manifest or the other documents at impo rtation or exportation as well 
as delaying the submission of the manifest or the other documents beyond the prescribed time 
according to the provisions of Articles (30, 36, 39, and 40) of this law  
2.      Not having the manifest endorsed by the customs aut horities at the port of shipping in the 
cases so requiring according to the provisions of Article (31) of this law.  
3.      Declaring several sealed packages combined in any way in the manifest or the like document 
as being  a single package according to the provisions of Article (44) of the Law, subject to the 
instructions given by the director general in respect of the containers, pallets and trailers.  
4.      Neglecting to mention some necessary information in the manifest or the like document.  
5.      The postal import of closed parcels or boxes not bearing the approved labels in contradiction 
to the provisions of the Arab and international postal agreements and the national legislations 
according to the provisions of Article (40) of this law.  
6.      Any other contravention to the provisions of the ministerial resolutions and the instructions 
issued under this law.  
  
Article (32)  
 
 A fine amounting to two hundred Saudi riyals (SR 200) or its equivalent in the currencies of 
the other GCC States for each day of delay provided that the fine shall not exceed half the price of 
the goods; this applies to the offences of delaying the production of the transit goods or re -
exportation to the customs office through which the goods will leave or to the customs offi ce to 
which the goods are dispatched after expiry of the period prescribed in the customs declarations.  
  
Article (33)  
 
 A fine amounting to two hundred Saudi riyals (SR 200) or its equivalent in the currencies of 
the other GCC States for each day of delay of the public transport vehicles and taxis entering the 
country provided that such fine shall not exceed one thousand Saudi riyals (SR 1000) or its 
equivalent in the currencies of the other GCC States.  
  
Article (34)  
 
 A fine amounting to one thousan d Saudi riyals (SR 1000) or its equivalent in the currencies of 
the other GCC States for each week of delay or a fraction of the week provided that the fine shall 
not exceed twenty percent (20%) of the value of the goods, for the offences of delaying re -
exportation of the temporarily admitted goods beyond the period prescribed in the customs 
declarations. In respect of the tourist cars, these shall be subject to a fine of twenty Saudi riyals (SR 
20) or its equivalent in the currencies of the other GCC State s for each day of delay provided that 
the fine shall not exceed ten percent (10%) of the price of the tourist car after expiry of the period 
prescribed in the temporary admission licence.  G/VAL/N/1/ ARE/1 
- 48 - 
  Explanatory Notes  
To the Common Customs Law  
of the Cooperation Cou ncil for the  
 Arab States of the Gulf  
  
 The GCC Common Customs Law, which was prepared by a technical committee of the GCC 
member States, has been laid down to meet the provisions relating to the customs affairs and to 
regulate the relationship between c ustoms and the public. The Law contains provisions and 
procedures for the importation, exportation and transit of goods through the territories of the GCC 
States.  This law also clarifies the rights of the employees of those administrations.  
  
 This Law ai ms at protecting the society through the control of the entry and exit of individuals, 
goods and means of transport.  
  
 This Law falls into 17 sections comprising 179 articles and represents the legal instrument 
regulating the duties of the customs offices  and specifying the areas subject to customs control, the 
nature of the customs procedures at the land, marine and air ports and the postal customs offices 
as well, applied to the various customs transactions such as importation, exportation, temporary 
admission, re -exportation and transit. It is the instrument by which the customs tariff is applied and 
the customs taxes "duties" are levied on the imported goods. All these Laws support the trend to 
make the GCC States an international market, encourage thei r national industries and projects and 
extend the scope of their transactions and increase their exports.  
  
 This Law also  contains provisions specifying  the stages of the clearance of the goods, 
exemption from customs taxes "duties", conditions of the t emporary admission of the goods without 
payment of the customs taxes "duties", the documents to be produced to customs for the clearance 
of the goods in addition to the provisions governing the establishment of the free zones and duty -
free shops and contro lling the activity of the customs clearing agents (brokers) and the conditions 
of obtaining the licences for practising the customs clearance job and treatment of the customs 
offences and smuggling matters.  
  
 This Law employs the latest customs Laws and r egulations in force in the GCC States  and the 
Arab States in addition to the privacy of the GCC States and the nature of the role of customs 
therein, and the WTO Agreement as well as the WCO Conventions.  
  
 The Common Customs Law of the GCC states was adop ted in the 20th Session of the Supreme 
Council held in Riyadh, Kingdom of Saudi Arabia in December 1999 and was agreed to implement it 
as a reference (guidance)  Law for one year from the date adopted and that it would be reviewed in 
the light of the comme nts received by the Secretariat General from the member States  in an attempt 
to have it obligatory implemented by all customs administrations of the member States by 2000.  
  
 To complete the requirements for implementation of the Law, and to review the com ments of 
the member States and finalize the preparation of the explanatory notes and Rules of 
Implementation thereof, the Secretariat General proposed in the 21st Session of the Supreme Council 
that the reference implementation should be extended for one m ore year and consequently the 
Supreme Council, in its 21st Session held in Manama, Bahrain in December 2000, decided to extend 
the reference implementation for one more year provided that it would be obligatorily implemented 
by all customs administrations of the GCC States in January 2002.  
  The objective of having a Common Customs Law of the GCC States is to unify customs 
procedures in all customs administrations of the GCC States and to enhance cooperation in the 
customs field and regulate the relationshi p between these administrations and the trade community 
in the GCC States so as to ensure unification of the customs procedures in all the GCC States. This 
Law regulates the relationship between the customs administrations and the other governmental 
admini strations in the member States and supports the trade exchange between them and the other 
foreign countries which is one of the bases of the customs union of the GCC States.  
   G/VAL/N/1/ ARE/1 
- 49 - 
  Section I  
 
Definitions and General Provisions  
 
 This Section deals with the definition of this Law as the "Common Customs Law of the 
Cooperation Council for the Arab States of the Gulf" and contains definitions of the terms provided 
for therein. It provides that the provisions of this Law shall apply to the territories subject to the 
sovereignty of the State and its territorial waters and allows the establishment of free zones thereon 
and that all goods entering or leaving the State shall be subject to the provisions of this Law.  Article 
(5) entitles the customs administration to exercise its powers in the customs offices and the customs 
zone and within the extent of its lands and territorial waters subject to the conditions set forth in 
this Law.  
  
 As regards the setting up and the cancellation of the customs offices, this shall be issued by 
a resolution of the competent minister to whom the customs administration reports, and the same 
applies to the designation of the competences and office hours of the customs offices.  
  
 Article (8) provides that customs procedures shall be car ried out only in the customs offices; 
these procedures are those applied when the goods enter the customs office. This Article excludes 
the cases prescribed by the director general through application of the provision of Article (53) of 
this Law.  
   
Sectio n II 
 
Provisions for Application of the Customs Tariff  
 
This Section contains the principles of application of the customs tariff as follows:  
 
 Article (9) provides that goods entering the State shall be subject to the taxes "duties" stated 
in the customs tariff and to the other taxes and fees excluding those goods excluded under the 
provisions of this Law or under the GCC Unified Economic Agreement or any other international 
agreement through mutual coordination among the GCC States.  
  
 The objecti ve of limiting the exemption from the customs Taxes "duties" to the cases covered 
by this Article is the setting up of the customs union among the GCC States which is based on a 
single point of entry and the common collection of the customs Taxes "duties " vis-à-vis the external 
world.  
  
 Article (10) provides for the bases for levying the taxes "duties" which could be ad valorem (a 
percentage of the value of the goods for customs purposes) or specific (a lump sum for each unit of 
the goods such as weight, n umber, volume, measurement or the other specifications of the goods).  
  
 This Article also provides that the customs taxes "duties" could be ad valorem and specific at 
one time which is based on combining both the ad valorem and specific rates for one type  of goods.  
  
 Article (11) provides that the imposition, amendment or cancellation of the customs taxes 
"duties" shall be made according to the legal instrument and the legal and constitutional practices 
of each State, subject to the resolutions issued by the Council in this connection and to the provisions 
of the international agreements in force.  
  
 The other Articles of this Section deal with the subjection of the goods to the customs taxes 
"duties" from the registration date of the customs declaration, and the provisions of the customs 
taxes "duties" relating to the clearance of the goods whose deposit period at the warehouses has 
elapsed and taking out these goods from the free zones and duty -free shops and the tariff to be 
applied to the s muggled goods or those damaged.  
  
  G/VAL/N/1/ ARE/1 
- 50 - 
  Section III  
 
Prohibition and Restriction  
 
 This Section requires the importers to submit a customs declaration for any goods imported 
into or exported from the country. This declaration shall be the official document pr oduced to the 
customs along with all the other documents relating to the goods provided that the declared goods 
shall be presented to the nearest customs office at the point of entry (land, sea or air). The Section 
also provides that anchorage of the marin e means of carriage shall be according to the conditions 
and situations set forth in Articles (20, 21).  
  
 Article (22) deals with the arrival and departure of aircraft and the conditions of landing and 
take off according to the provisions of this Article.  
  
 Article (23) limits the entry or exit of the land means of transport to those areas within the 
country where customs offices exist, and Article (24) stipulates that the customs administration shall 
apply the conditions and procedures prohibiting the en try, exit or passage of the prohibited goods 
or the goods contravening this Law or any other Law or resolution.  
  
Section IV  
 
The Distinguishing Elements of the Goods  
  
 This Section provides clarification and description of the distinguishing elements of the goods 
(origin, value, type) and stipulates that imported goods shall be subject to the proof of origin 
according to the rules agreed on within the framework of the international and regional economic 
organizations. The provision of Article (26) of the Law and the provision of Article (1) of the Rules 
of Implementation are in line with the provisions of the WTO Valuation Agreement where calculation 
of the value of goods for customs purposes is determined according to the provisions and principles 
prescri bed in detail in the Rules of Implementation of this law .  
 
 Article (27) specifies the documents to be attached with the customs declaration and the 
nature of these documents and the treatment of the cases where the importer fails to submit such 
documents  to customs, whereas Article (28) provides that the value of the exported goods shall be 
their value prevailing at the time of registering the customs declaration plus all charges incurred 
until arrival of the goods to the customs office. Article (29) prov ides that the goods that are not 
mentioned in the customs tariff nomenclature and the explanatory notes thereof shall be classified 
according to the classification advice issued by the World Customs Organization which is the 
approved body in respect to the  international classification. However, goods falling under national 
subheadings of the customs tariff beyond six digits are to be classified within the framework of the 
GCC Common Customs tariff for the Classification and Coding of Commodities which is in  line with 
the Harmonized System in force.  
Section V  
 
Importation and Exportation  
 
 This Section covers Articles (30 to 46 ) of the Law which contain provisions for importation 
and exportation such as the rules, practices and procedures to be followed - at importation and 
exportation -  by the carriers of the goods through the air, land and sea means of transportation or 
by post, and the documents to be produced to the customs authorities and the times of producing 
and the details to be contained  in these documents and the controls to be observed by carriers at 
loading and unloading and the extent of their responsibility for the goods they carry when such 
goods traverse the borders of the State.  
  
 Article (46) of this Section provides an importan t element of facilitation of the customs 
operations which is the use of the modern technology media in the Electronic Data Interchange for 
the clearance of the goods according to the rules prescribed by the minister or the competent 
authority.  
  G/VAL/N/1/ ARE/1 
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  Section VI  
 
Stages of the Customs Clearance  
  
 This Section elucidates in detail the stages of the customs clearance beginning with the 
lodgement of the customs declaration according to the forms approved within the frame of the 
Council and that the director general  shall be empowered to specify the documents to be attached 
with the customs declarations, the details to be contained therein and the clearance cases without 
production of such documents under cash or bank guarantees or undertakings according to the 
condi tions prescribed by the director general. The Law permits the owners of goods or their 
representatives to examine their goods prior to the lodgement of the customs declaration and to 
have access to the customs declarations and documents to which no other p ersons can have access 
except the competent judicial and official authorities.  
  
 Articles (52 to 59) deal with the right of the competent customs officer to inspect the goods 
wholly or partially on a case -by-case basis according to practices in force, the  inspection procedures, 
the movement of goods, the presence of the owner of the goods during the inspection, the right of 
the administration to open the packages and to make analysis (tests) of the goods, the discrepancy 
cases and the missing (incomplete) documents stating the description and specifications of the goods 
and the right of the administration to re -inspect the goods and the other relevant matters.  
  
 Article (60) tackles declaration and inspection, at the customs offices, of the passengers 
accompanied luggage and belongings according to the practices and rules prescribed by the director 
general.  
  
  Article (61) discusses the formation of valuation committee composed of the administration 's 
employees under a resolution issued by the director gen eral. Such committee is specialized in the 
settlement of the disputes arising between the customs office and the importers concerning valuation 
of the imported goods, and that the committee may seek assistance of experts according to the 
measures and proce dures provided for in Article (26) of this Law without prejudice to the importer 's 
right to appeal before the court.  
  
 Article (62) deals with the disputes between the customs officer and the owner of the goods 
concerning the valuation of the goods and pr ovides that the dispute shall be referred to the director 
general for settlement or to the Valuation Settlement Committee. This article also provides for the 
right of the director to release the goods against the guarantees provided for in this Article and  the 
conditions thereof.  
  
 Articles (63 to 66) deal with the payment of the customs taxes "duties " and the other charges 
and the release of the goods according to the rules and conditions prescribed by the director general.   
   
Section VII  
 
The Cases whe re the Customs Taxes "Duties" are Suspended; Drawback  
 
 This Section deals with cases where the goods could be released and moved from one place 
to another in the country without payment of the customs taxes "duties"; these are known as the 
cases where the customs taxes "duties" are suspended. The Section also deals with the Drawback 
(a system under which the paid customs taxes "duties" can be refund ed when the goods leave the 
country according to the following provisions and rules:  
  
1.      The release of the goods against submitting cash or bank guarantees in an amount 
equivalent to the customs taxes "duties" according to the instructions of the director general. 
Such guarantees shall be released upon presentation of the discharge certificates.  
 
2.      When the goods transit the territories of the GCC States according to the provisions of the 
international Laws and agreements in force such as the Transit Agreement of the Arab States 
and according to the specified routes and at the responsibility of the carrier as instructed by 
the director general. The routes and conditions of transport shall be prescribed by a 
resolution of th e minister or the competent authority.  
 G/VAL/N/1/ ARE/1 
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  3.      The placement of the goods inside the warehouses of the customs office according to the 
conditions and rules prescribed by the director general.  
 
4.      The free zones and duty -free shops set up under the le gal instrument of each State; the 
rules, conditions and customs procedures thereof are to be prescribed under a resolution by 
the minister or the competent authority subject to the enhanced control thereof.  
  
 Article (80) designates the goods prohibited f rom entering the free zones and duty -free shops 
and Article (83) provides that goods may not be moved from one free zone to another unless in 
accordance with the Laws in force, whereas Article (85) provides that the goods taken out from the 
free zone into the country shall be treated as foreign goods.  
  
 Article (87) holds the Administration of the free zone responsible for the offences committed 
by its employees.  
  
 Articles (89 to 94) deals with the cases where the goods not imported for home markets can  
be temporarily admitted and then re -exported from the country upon completion of the purposes 
and expiry of the legal period for their stay in the country.  
  
 These Articles also refer to the temporary admission of tourist vehicles under the Temporary 
Admission System subject to the international agreements made in this connection.  
  
 Article (97) deals with the cases where the customs taxes "duties" levied on the foreign goods 
are wholly or partially refunded (drawback) at re -exportation according to the conditions set forth 
in the Rules of Implementation.  
  
  
Section VIII  
 
Exemptions  
  
 This Section contains provisions for the exemption from the customs taxes "duties" (Articles 
98 to 106). Exemption covers the following commodities and items:  
 
1.      The commodities exempted in the Common Customs tariff of the GCC States.  
 
2.      The commodities imported for the diplomatic and consular bodies and the international 
organizations, the heads and members of the diplomatic and consular missions approved by 
the country according to the international agreements, laws and practices in forc e subject 
to the reciprocity principle and subject to the provisions of Article (100) concerning the 
conditions and procedures relating to the goods exempted under Article (99) of this Law.  
 
3.      Imports by all sectors of the Armed Forces and the Inter nal Security Forces such as 
ammunition, arms,…etc.  
 
4.      The personal effects and used household appliances belonging to the citizens residing abroad 
or those brought with the foreigners (expatriates) upon their first arrival for residence in the 
countr y according to the conditions prescribed by the director general.  
 
5.      Personal effects and gifts brought by passengers according to the conditions of the Rules of 
Implementation.  
 
6.      Imports of the philanthropic societies (Charities) according to  the conditions set forth in the 
Rules of Implementation of this Law.  
 
7.      The cases provided for in Article (105) exempted from the customs taxes "duties" such as 
the returned goods of national origin that were exported to outside the country as well as 
the foreign goods returned to the country which are proved to have been previously re -
exported to outside of the country and the goods temporarily exported for completion of 
processing or repair.  
  
  G/VAL/N/1/ ARE/1 
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  Section IX  
 
Service Charges  
 
 Article (107) provides that the goods placed in the yards and warehouses belonging to the 
customs office shall be subject to the storage, handling and insurance charges and the fees of the 
other services required for the storage and inspection of the goods according to the speci fied rates.  
 
 However, in no case shall the storage charge exceed half the estimated value of the goods; 
in the event  such warehouses  are managed by other entities, these fees shall be collected according 
to the provisions and rates prescribed in this re spect. This Article permits the collection of charges 
for the sealing and analysis (testing) of the goods and all the other rendered services and that the 
services mentioned in this Article and the conditions of collection shall be prescribed by a resoluti on 
to be issued by the minister or the competent authority.  
  
Section X  
 
Customs Brokers  
 
 This section defines the customs broker and his capacity Article 108. Article 109 entitles the 
natural and legal nationals of the GCC States the right to exercise this profession (activity) after 
obtaining the necessary licence from the Administration.  
  
Section XI  
 
The Rights and Duties of the Customs Officers of the Administration  
 
 This section outlines two important aspects of the nature of the job of t he customs officers; 
the security aspect which is to prevent the entry of the smuggled goods and contraband into the 
country via the customs ports and the economic aspect being to collect the customs taxes "duties". 
The section regulates the rights and dut ies of the officers of the Administration and the   incentives 
given to them and entitles them the power of judicial arrest. The section does also permit the 
customs officers to carry guns provided that such officers shall be nominated by a resolution of t he 
minister or the competent authority, and requires the civil and military authorities and the Internal 
Security Forces to help them carry out the duties assigned to them when so requested.   
 
Section XII  
 
Customs Zone (Boundary)  
 
This Section contains pr ovisions of the Customs zone (boundary)  
 
 Article (121) states that there are provisions relating to the customs boundary (paragraph 9 
of Article (2) of this Law states that the marine customs boundary covers that area of the sea located 
between the seasho res and the ending of the territorial waters). The land customs boundary covers 
the lands located between the shores or the land borders on the one hand, and an internal line to 
be specified under a resolution by the minister or the competent authority on the other hand. This 
provision states that prohibited and restricted goods as well as high customs taxes goods shall be 
subject to the provisions of the customs boundary. Hence the presence of such goods within these 
areas requires their subjection to the provisions of the customs boundary and the movement of such 
goods is usually subject to special provisions in order to avoid their smuggling into the country.  
  
Section XIII  
 
Customs Matters  
 
 This section deals with the customs matters which are an import ant aspect of the provisions 
of this Law.  
 
 Articles (122 to 128) relate to the investigation of smuggling according to the controls and 
powers set forth in these Articles such as the inspection of the goods and the means of 
transportation, the search of p ersons, seizure of the goods, examining the documents, records, G/VAL/N/1/ ARE/1 
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  correspondence and other documents and the right to detain any suspect according to the rules 
prescribed by a resolution issued by the minister or the competent authority. Paragraph (3) of Art icle 
(126) states that the exercise of work outside of the two customs zones shall be within the borders 
of the State.  
  
 Articles (129 to 134) deal with the seizure report and the main elements to be contained 
therein. This report is deemed as a pretext ( proof) of the material facts and the incompleteness of 
the report shall not render it null.  
  
 Those Articles allow the customs office to seize the contravening or smuggled goods and the 
items used for concealing them as well as the various means of transp ort, excluding those intended 
for the transport of persons unless such means are specially designed for the purpose of smuggling. 
The Administration has the right to dispose the goods smuggled or being smuggled if such goods 
are narcotics and the like acco rding to the Laws and regulations in force in the country.  
  
 Articles (135 to 137) deal with the provisional seizure of the smuggled goods and the things 
used for concealment thereof and the mean of transport and the seizure of all documents to ensure 
the customs taxes "duties". These Articles also authorize the director general – when necessary - to 
obtain an order from the competent authorities to effect the provisional attachment on the properties 
of the offenders and those involved in smugglin g. The director general may, when necessary and to 
ensure the rights of the public treasury, impose a customs security on the properties of the tax 
"duty" payers or their partners. The Articles have specified the arrest cases for the smuggling crimes 
in the act, the resistance of the customs officers or the security officers and the other matters 
regulating the arrest process, provided that the arrested persons shall be brought to the competent 
court within 24 hours following the time of arrest.  
  
 Article (138) provides that the offenders and the persons accused of smuggling shall be 
prevented from travel by a decision of the director general in the event the value of the seized items 
is not sufficient to cover the customs taxes "duties" and fines. This dec ision can be cancelled if the 
offender submits a guarantee in an amount equivalent to the claimed amounts or if the value of the 
seized items is found to be sufficient to cover the claimed amounts.  
  
 Articles (139 to 141) deal with the customs offences an d the penalties thereof, and regard the 
collected customs fines and confiscations provided for in the Law, as a civil compensation to the 
Administration and not subject to amnesty. These Articles also provide that a penalty shall be 
imposed on each offence  separately provided that the higher (sterner) penalty shall be sufficient if 
the penalties are inseparable.  
  
 Except for the cases deemed as smuggling which are provided for in Article (143) of the Law, 
and without prejudice to the provision of the inter national agreements in force, a fine shall be 
imposed on the offences referred to in Article (141) of this Law according to the rules set forth in 
the Rules of Implementation.      
  
 Articles (142, 143) deal in detail with the subject of smuggling, its de finition and the cases 
deemed as smuggling. Paragraph "14" of Article (143) defines such cases as those goods prohibited 
from exportation to outside the country, but are exceptionally allowed to be exported provided that 
they are re -imported into the count ry. Non -compliance with this requirement shall be deemed as 
smuggling, while Article (144) provides definitions  of the penal liability and the persons deemed  
penally  liable.  
  
 Article (145) provides for the penalties imposed on the customs smuggling or  attempted 
smuggling (the fines provided for in Article 145).  
  
 Articles (147 to 149) deal with the administrative prosecution "pursuit" and entitle the director 
general to take the necessary decisions for the collection of the taxes "duties" and the meas ures of 
such collection and allow for the complaint before the minister or the competent authority against 
the penalization judgments within a specified period and that the minister or the competent authority 
may confirm, amend or cancel such judgments.  
 
  Article (151) provides that smuggling cases (actions) can only be activated by a written 
request from the director general.  
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   Article (151) provides for the rules of reconciliatory settlement  and entitles the director 
general or his representative to ma ke a reconcilement (compromise) of the smuggling actions 
whether prior to bringing out the actions  or during trial and before the issuance of the first instance 
judgment which shall be in lieu of the penalties and fines provided for in Article (145) of th is Law, 
provided that a manual of reconciliatory settlements shall be issued by a resolution of the minister 
or the competent authority.  
  
 Article (152) provides in detail for the amount of reconcilement subject to the provisions of 
Article (151).  
  
 Article (153) provides that the action (claim) shall be settled after reconcilement and Articles 
(154 to 160) deal with the subject of  liability and joinder in the smuggling matters and the rules 
thereof, while Article (155) holds the investors of the private  shops and premises where the goods, 
subject of the offence or smuggling, are stored responsible for such premises; whereas the investors 
of the public shops and premises and the employees, the owners of the means of transport and 
drivers and their assista nts shall be held responsible unless they can prove their ignorance of the 
presence of such infringing goods or contraband and that they have got no direct or indirect interest 
in them.  
  
 Article (156) provides that sponsors "guarantors" shall be held res ponsible within the extent 
of their guarantees upon payment of the customs taxes "duties" and fines, while Article (157) 
provides that customs brokers shall be responsible for the offences and smuggling crimes they 
commit in the customs declarations, and A rticle (158) holds the owners of the goods, employers and 
the carriers responsible for the acts of their employees and those working for them.  
  
 With respect to the customs taxes "duties", fines and confiscations, Article (159) provides that 
heirs shall n ot be responsible for the payment of the fines imposed on the deceased unless they are 
partners in the smuggling.  
  
 Article (160) provides that the applicable customs taxes "duties " and fines shall be jointly paid 
by the offenders or smugglers according to the practices adopted for the collection of the property 
of the Government Treasury and that the seized goods and means of transport, if any, shall be a 
security for the payment of  the claimed amounts.  
  
 Articles (161 to 165) provide for the formation of first instance customs courts at the 
Administration and the customs offices according to the legal instrument applicable in each State. 
The competences and judgments ' finality of s uch first instance customs courts and appeal courts as 
well as the collection of fines and the methods and means of executing attachment on the movable 
and unmovable property of the offenders have been set forth in these Articles. Article (165) 
empowers th e minister or the competent authority to order that a sufficient amount of such property 
shall be retained for the payment of the claimed amounts.  
 
Section XIV  
 
The Sale of Goods  
 
 This section contains provisions relating to the sale of the goods in possession of the 
Administration provided for in Articles (166 to 172) and the rules to be followed for the sale of goods 
as set forth in Article (166), whereas Article (167) entitles the Administration, after expiry of the 
period specified by the minister  or the competent authority, the right to sell the goods stored in the 
customs warehouses or placed in the yards and wharves or the goods left out in the customs offices.  
  
 Article (168) provides for the goods to be sold by the Administration and Article (169) provides 
that the Administration shall not be responsible for any damage caused to the goods sold by the 
Administration under the provisions of this Law unless it is proven that the Administration had 
committed an obvious error in the sale process. A rticle (170) contains some provisions relating to 
the sale process described in detail in this Article.  
  
 Article (171) deals with the controls for disposition of the proceeds of the sale of the permitted, 
prohibited and restricted goods.  
  G/VAL/N/1/ ARE/1 
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   Article (172)  provides that the portion due to the Government Treasury of the proceeds of the 
customs fines and the value of the confiscated or abandoned goods and means of transport shall be 
50% after deducting the customs taxes "duties" and charges and contains provi sions for the 
disposition of the remaining portion.  
  
Section XV  
 
Privilege of the Customs Administration  
  
 This section grants the customs administration a general privilege over the movable and 
unmovable property of the taxes "duties" payers in case of bankruptcy through precedence over all 
debts excluding the legal expenses in order to collect the customs taxes "duties " and other charges 
and the fines, compensations, confiscations,  and redemptions.  
 
Section XVI  
 
Prescription  
  
 This section contains pro visions of prescription. Article (174) provides that any claim or action 
for the refund of the customs taxes "duties" that have been paid since more than three years, shall 
not be accepted, and Article (175) empowers the administration to destroy the recor ds, receipts, 
customs declarations and the other documents after five years following finalization of the customs 
procedures thereof and that the administration shall not be required to produce them to any entity 
or give copies or duplicates thereof after the expiry of that period.  
  
 Article (176) specifies the prescription time, in respect to customs, if no pursuit "prosecution" 
has been initiated, and without prejudice to the other laws and regulations applicable in the State.  
 
Section XVII  
 
Final Provisions  
  
 This section contains final provisions as follows:  
  
 Article (177) empowers the director general to:  
 
1.      exclude the ministries, governmental departments and official and public institutions from 
certain procedures for facilitation of t heir business, and  
 
2.      sell the confiscated goods to the ministries and official departments and public institutions 
belonging to the government at the price he deems appropriate if they indicate their need 
of such goods, or to abandon such goods free  of charge under a resolution by the minister 
or the competent authority.  
  
  Article (178) entitles the Financial and Economic Cooperation Committee of the GCC States 
the right to adopt the Rules of Implementation of this Law. Article (179) provides that this Law shall, 
after implementation, supersede the customs Laws and regulations in force in the member states 
subject to and without contradiction to the Laws and constitutional rules in each State.  G/VAL/N/1/ ARE/1 
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  PRINCIPLES OF VALUE DETERMINATION FOR CUSTOMS PURPOSES  
 
1. General Provisions  
1.  The importer has the right to withdraw his goods upon submitting sufficient guarantee in form  
bank or cash deposit, bank guarantee, surety or mortgaged property of equivalent value covering 
the assessed customs taxes "duties", if it is found that the final determination of the customs value 
is delayed.  
 
2.  The importer or any person liable for payment of the customs duties can object and appeal 
against the assessment of customs value, without penalty, as following:  
 
(a)  At the a dministration level:  
 
(i)  Director, customs port,  
(ii)  Valuation adjudication committee.  
 
(b) An independent judiciary body (Board of Grievances).  
 
3.  The information, confidential or provided on a confidential basis for purposes of customs 
valuation, shall, be treated as strictly confidential, and may not be disclosed except to the extent 
required to be disclosed in the context of judicial proceedings, according to the Article 51 of the 
Common Customs Law (CCL).  
 
4.  If the declared value is  stated in a foreign currency, it should be converted to the domestic 
currency on the basis of exchange rate announced in bulletins issued by the competent agencies 
(i.e., Saudi Arabian Monetary Agency (SAMA)) The time of payment of the customs taxes "duties" 
shall be the time approved for currency exchange rate.  
 
5.  In determining the customs value, no discounts or deductions made after the date of 
importation of the goods in the payable or actually paid price will be considered. Also, no credit 
balances pertaining to previous consignments will be considered when determining the value of the 
goods being valued.  
 
6.  This Law does not contain any provision that implies restrictions to or doubt in, the right of 
the Customs to undertake whatever is necessary  to ascertain the validity or accuracy of any 
statement, document or undertaking submitted to the customs for valuation purposes.  
 
7. (A)  If accounting information is required to be utilized for determining the customs value for 
purpose of applying the pr ovisions of the Clauses IV to VIII of this Article, such information 
shall be utilized in a manner consistent with generally accepted accounting principles in the 
GCC States in applying the deductive value referred to in the Clause VI of this Article, or i n 
the country of production of the goods being valued when applying the computed value 
under the Clause VII of this Article, as the case may be.  
 
(B) The customs may not refuse information prepared according to the generally accepted 
accounting principles,  and submitted by the importer, buyer or producer in connection with 
the valuation of goods, on the grounds of accounting principles used.  
 
8.  Taking into account provisions of the Clause IV.B of this Article, and in determining the 
customs value of the i nformation carrier media such as the magnetic tapes or the like, containing 
data or computer software recorded thereon, the value shall be assessed on the basis of value of 
such media only according to the paragraph 2 of the decision No. 4.1 Adopted by the  WTO Customs 
Valuation Committee on 12/5/1995.  
 
2. Definitions  
1.  "Price actually paid or payable"  means the total payment made or to be made by the 
buyer to or the benefit of the seller for the imported goods. The payment need not necessarily take 
the form of a transfer of money. The payment may be by way of letters of credit or negotiable 
instruments. Payment may be made directly or indirectly such as settlement by the buyer, in whole 
or in part, of a debt owed by the seller.  G/VAL/N/1/ ARE/1 
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  2.  "Imported goods being value d" means the goods being valued for customs purposes.  
 
3.  "Packing costs" means the cost of all containers (excluding instruments of international 
traffic) and coverings of whatever nature and of packing, whether for labour or material, used in 
placing goods in condition, packed for shipment to the GCC States.  
 
4.  "Produced"  includes grown, manufactured and mined, etc.  
 
5.  "Related person"  means:  
 
(1)  legally recognized partners in business;  
(2)  officers or directors of one another 's busines s; 
(3)  employer and employee;  
(4)  any person directly or indirectly owns, controls or holds five per cent or  
 more of the outstanding voting stock or shares of both of them;  
(5)  one of them directly or indirectly supervises or controls the other;  
(6)  both of them are directly or indirectly supervised or controlled by a third  
 person;  
(7)  together they directly or indirectly control a third person; or  
(8)  members of the same family.  
 
6.  "Identical goods"  means goods that are the same in all resp ects, including physical 
characteristics, quality and reputation to, and produced in the same country and by the same person 
as, the goods being valued. Minor differences in appearance that are ineffective in the value, would 
not preclude goods which other wise conform to the definition, from being considered as identical 
goods. If identical goods produced by the same person cannot be found, goods identical in all 
respects to, and produced by another person, may be treated as identical goods. "Identical good s" 
do not include the goods that incorporate or reflect any engineering, development, artwork, design 
work, plan or sketch undertaken in the GCC States, that are not included in settlements of the 
transaction value according to the Clause IV.B.1.iv.(d) of this Article.  
 
7.  "Similar goods"  means the goods produced in the same country and by the same producing 
person, although not alike in all respects, as the goods being valued, in characteristics, component 
materials and capability of performing the same f unctions, and commercially interchangeable with 
the goods being valued. The quality of the goods, their reputation, and existence of a trademark will 
be factors considered to determine whether the goods are similar. If similar goods produced by the 
same pe rson cannot be found, goods produced in the same country as, but not produced by the 
same person, which are like the goods being valued in characteristics and component materials, and 
are commercially interchangeable with the goods being valued, may be tre ated as "similar goods". 
"Similar goods" do not include the goods that incorporate or reflect any engineering, development, 
artwork, design work, plan or sketch undertaken in the GCC States, that are not included in 
settlements of the transaction value acc ording to the Clause IV.B.1.iv.(d) of this Article.  
8.  "Unit price in greatest aggregate quantity"  means the price at which goods are sold in 
greatest aggregate quantity that is enough to determining unit price in transactions of sale to 
persons who are n ot related to the persons from whom they buy such goods, at the first commercial 
level after importation in the application of any of the Clauses VI.1, 2 and 3.  
 
9.  "Goods of same class or kind"  means the goods which fall within a group or range of goods  
produced by a particular industry or industrial sector, including but not limited to, identical or similar 
goods.  
 
10.  "Generally Accepted Accounting Principles"  means the recognized consensus or 
substantial authoritative support, at a particular time, regarding the following:  
 
(1)  resources and obligations that should be recorded as assets and liabilities;   
(2)  changes in assets and liabilities that should be recorded;  
(3)  how the assets and liabilities, and changes in them should be measured;  
(4)  what information should be disclosed and how it should be disclosed; and  
(5)  which financial statements should be prepared.  
 
11.  "Objective Data"  means the inform ation that helps in verifying the following:  
 G/VAL/N/1/ ARE/1 
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  (1)  an amount added according to Clause IV (b) of this Article to the price actually paid 
 or payable;  
(2)  any adjustment according to Clause V of this Article;  
(3)  an amount deducted according to Clause VI of this Article considered as being profit 
 or general expenses, or value arising from further processing; and  
(4)  an amount added according to Clause VII of this Article considered as being a profit 
 or general expenses.  
 
3. Methods of Customs Valuation  
A.  Imported goods will be valued on the basis, and in the order, of the following:  
 
(1)  The transaction value provided for in Clause IV;  
(2)  The transaction value of identical goods provided for in Clause V(a), if the  transaction 
value cannot be determine d according to Clause IV;  
(3)  The transaction value of similar goods provided for in Clause V(b), if the transaction 
 value of identical goods cannot be determined;  
(4)  The deductive value provided for in Clause VI, if the transaction value of similar 
 goods cannot be determined;  
(5)  The computed value provided for in Clause VII, if the deductive value cannot be 
 determined; or  
(6)  The value provided for in Clause VIII, if the computed value cannot be computed.  
 
B.  The importer may request application of the computed value method before the deductive 
value method. Such request must be made at the time of submitting the Customs Declaration to the 
customs port. If the importer makes the request, but the value of the im ported goods cannot be 
determined using the computed value method, the goods will be valued using the deductive value 
method if it is possible to do so. If it is found impossible, the value will be determined according to 
Clause VIII.  
 
4. Transaction value of the goods being valued  
A.  The customs value of the goods imported to the GCC States shall be the transaction value 
i.e., the price actually paid or payable when the goods are sold for export to the GCC States, 
according to the provisi ons of Clause (B) under this method, and subject to the following conditions:  
 
(1)  that there are no restrictions as to the disposition or use of the imported goods by 
the buyer, other than the restrictions provided for in this Law, restrictions that limi t 
the geographical area in which the goods may be resold; or the restrictions that do 
not substantially affect the value of the goods;  
(2)  that the sale or price is not subject to some condition or consideration for which a 
 value cannot be determined wit h respect to the goods being valued;  
(3)  that no part of the proceeds of any subsequent resale, disposal or use of the goods 
by the buyer will accrue directly or indirectly to the seller, unless an appropriate 
adjustment can be made according to the provi sion of Clause (B) under this method;  
(4)  that the buyer and seller are not related according to Clause II.5 of this Article, or 
where the buyer and seller are related, that the transaction value is acceptable for 
customs purposes according to the provisi ons of Clause (A) under this method, if 
any of the following conditions is met:  
 
(a)  if an examination of the circumstances surrounding the sale demonstrates 
that the relationship between the buyer and the seller did not influence the 
price actually paid  or payable; or  
 
(b)  if the transaction value of the imported goods closely approximates to one 
of the test values noted below:  
 
(i)  a transaction value of identical or similar goods in sales to unrelated 
buyers at the GCC States;  
(ii)   a customs value of identical or similar goods as determined under 
the Clause VI: Deductive Value;  G/VAL/N/1/ ARE/1 
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  (iii)  a customs value of identical or similar goods as determined under 
the Clause VII: Computed Value  
 
(c)  When applying Clause IV.A.4.b, the difference adjustment will be taken into 
account if existed between the declared value and the test value, based on 
objective data provided by the buyer or available to the customs according 
Clause II.11 taking into accou nt Clause IV.B of this Article.  
 
B.  Additions to the price actually paid or payable (Adjustments):  
 
(1)  In determining the customs value according to this Clause IV, the following costs 
will be added to the extent incurred by the importer but are not inc luded in the price 
actually paid or payable for the imported goods:  
 
(i)  commissions and brokerage, except buying commission;  
(ii)  the cost of the containers which are treated as being one for customs 
purposes with the goods in question;  
(iii)  the cost of packing whether for labour or materials;  
(iv)  the value of the following goods and services (assists) provided by 
the buyer, directly or indirectly, free of charge or at a reduced cost, 
for its use in the production of the imported goods and sale there of 
for export to the GCC States, provided that such value is properly 
apportioned:  
 
(a)  materials, components, parts and similar items used in production of the 
imported goods;  
(b)  tools, dies, moulds and similar items used in production of the imported 
goods;  
(c)  materials consumed in production of the imported goods; and  
(d)  engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than the GCC States, and necessary for the 
production of the imported goods  
 
(v)  royalty and license fees related to the goods being valued that the 
buyer must pay, either directly or indirectly, as a condition of sale 
of the goods being valued, to the extent that such royalties and fees 
are not included in the price actually paid or payab le; 
(vi)  the value of any part of the proceeds from any subsequent resale, 
disposal or use of the imported goods that accrues directly or 
indirectly to the seller;  
(vii)  the cost of transport of the imported goods to the port or place of 
importation; and  
(viii)  loading, unloading, handling and insurance costs associated with the 
transport of the imported goods to the port or place of importation.  
 
2.  No additions shall be made to the price actually paid or payable except according to 
the provisions of Clause IV.B. of this Article. Any addition must be made only on the 
basis of objective and quantifiable data, i.e., on the basis of facts supported by actual 
figure without personal interpretation taking into account Clause II.11 of this Art icle. 
 
Otherwise, arriving at the transaction value will not be considered feasible under this 
method.  
 
C.  Exclusions from the transaction value  
 
The value for customs purposes shall not include the following costs and amounts provided 
that they are ident ified separately from the price actually paid or payable:  
 
(1)  Post-importation costs, such as:  
 
(a)  charges for construction, erection, assembly, maintenance or technical 
assistance, undertaken after importation of goods to the GCC States;  G/VAL/N/1/ ARE/1 
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  (b)  transpor tation, loading, unloading, handling and insurance charges of the 
imported goods after importation;  
(c)  customs duties or any other taxes levied on the imported goods after 
importation to the GCC States;  
(d)  dividends or other payments from the buyer to the seller that do not relate 
to the imported goods;  
(e)  interest that might have accrued on the basis of a financial agreement 
concluded by the buyer for purchasing the imported goods;  
(f)  activities undertaken by the buyer on his own account;  
 
(2)  credit balances with the buyer in favour of the importer;  
 
(3)  amounts of export subsidy that might be provided by some countries for exportation 
of some goods; and  
 
(4)  any anti-dumping amounts when goods are sold at dumped prices (i.e., less than 
the cost), since the dumping must be treated according to the Anti -Dumping 
Agreement.  
 
D.  If it is found that there are reasonable grounds to doubt validity of the submitted docume nts 
or the data contained therein, the importer should be notified in writing, upon his request, of such 
grounds, and will be given sufficient time, to be specified by the customs port, to provide response. 
If he does not provide evidence acceptable to the  customs port within such period, and the customs 
value could not be determined according to the provisions of Clause IV of this Article, the value must 
then be determined according to the methods specified in Clauses V to VIII sequentially until a 
customs  value according to a practical method is established.  
 
5. The customs value will be considered  
A.  The transaction value of identical goods already accepted as a transaction value according to 
Clause IV of this Article, exported to the GCC States at or about  the same date as the export of the 
goods being valued, at the same commercial level and quantity of the imported goods being valued. 
Where no such value is found, the transaction value of identical goods sold at a different commercial 
level and/or in diff erent quantities, adjusted to take account of differences attributable to commercial 
level and/or to quantity shall be used based on objective data and demonstrated evidence which 
establishes reasonableness of the adjustment according to Clause  II.11 of th is Article, whether the 
adjustment leads to an increase or decrease in the value, taking into consideration the difference in 
the costs mentioned in the Clauses IV.B.1 of this Article. If more than one transaction value for 
identical goods is found, the lo west of such values shall be used as the customs value for the goods 
being valued, according to Clause V.A. of the Interpretative Annex;  
 
B.  The transaction value of similar goods already accepted as a transaction value according to 
Clause IV of this Arti cle, exported to the GCC States at or about the same date as the export of the 
goods being valued, at the same commercial level and quantity of the imported goods being valued. 
Where no such value is found, the transaction value of similar goods sold at a different commercial 
level and/or in different quantities, adjusted to take account of differences attributable to commercial 
level and/or to quantity, based on objective data and demonstrated evidence which establishes 
reasonableness of the adjustment acc ording to Clause II.11, whether the adjustment leads to an 
increase or decrease in the value, taking into account the difference in the costs mentioned in 
Clauses IV.B.1 of this Article. If more than one transaction value for similar goods is found, the 
lowest of such values shall be used as the customs value for the goods being valued, according to 
Clause V.B. of the Interpretative Annex.  
 
6. Deductive Value  
(1)   The customs value shall be based on the unit price at which the imported goods or 
identical or s imilar goods are sold at the first commercial level, in the GCC States ' 
local market, in the same condition as imported, at the greatest aggregate quantity 
according to Clause II.8, at or about the time of the importation of the goods being 
valued, to non -related persons according to Clause II.5 of this Article, but with 
excluding the sale of the goods incorporating in production any of the assists 
mentioned in Clause IV.B.1.iv of this Article, subject to deductions for the following:  G/VAL/N/1/ ARE/1 
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  (a)  either the commis sions (usually paid or agreed to be paid), or the additions 
usually made for profit and general expenses in the GCC States for goods of 
the same class or kind;  
(b)  the usual costs of transport and insurance after importation and associated 
costs in the GC C States, provided that such costs are not included as general 
expenses according to Clause (a) above;  
(c)  Customs duties, other taxes or Zakat payable in the GCC States by reason 
of importation or local sale of the goods, taking into account that such taxes 
and Zakat shall not be deducted according to this Clause in case the importer 
records them within the general expenses mentioned in Clause (a) of this 
method.  
 
(2)  If neither the goods being valued nor identical nor similar imported goods are s old 
at or about the time of importation of the goods being valued, the customs value, 
taking into account the provisions of Clause 1 of this method, will be based on the 
unit price at which the imported goods or identical or similar goods are sold in 
quant ities sufficient for determination of the unit price at the first commercial level, 
in the GCC States ' local market, in the condition as imported at the earliest date 
after the importation of the goods being valued but before the expiration of ninety 
days after such importation.  
 
(3) If neither imported goods nor identical nor similar imported goods are sold in the 
GCC States ' local market in the condition as imported, then, if the importer so 
requests, the customs value, shall be based on the unit price at  which the imported 
goods, after further processing, unless their identity is lost, are sold at the greatest 
aggregate quantity, between un -related persons according to the definition in 
Clause  II.5 of this Article, due allowance being made for the value a dded by such 
processing, and the deductions provided for in Clause 1 of this method.  
 
7. Computed Value  
(1)  If the customs value could not be determined according to Clause VI of this Article, 
or in case the importer requested application of the computed val ue before the 
deductive value according to Clause III (B) of this Article, the customs value, 
according to the provisions of this Clause, shall be based on the computed value. 
The computed value shall consist of the sum of:  
 
(a)  the cost or value of mater ials and fabrication or other processing employed 
in producing the imported goods;  
(b)  an amount for profit and general expenses equal to that usually reflected in 
sales of goods of the same class or kind as the goods being valued which 
are made by other producers in the same country of exportation for export 
to the GCC States;  
(c)  the charges and costs listed in the Clauses IV.B.1 (7) and (8) of this Article.  
 
(2)  Any person resident outside the GCC States shall not be required to produce for 
examinatio n, or to allow access to, any account or other record for the purposes of 
determining a computed value. However, the customs administration may verify the 
information supplied by the producer of imported goods for the purposes of 
determining the customs va lue under the provisions of this Article in another 
country, with agreement of the producer, provided a sufficient advance notice is 
given to the government of the country where the investigation is to take place, and 
the government does not object to it.  
 
8. Flexible Method  
(a)  If the customs value of the imported goods cannot be determined under the 
forgoing methods mentioned in Clauses IV through VII of this Article, the 
provisions of the same Clauses shall be applied once again sequentially with 
reasonabl e flexibility, until the customs value according to the first possible 
method is arrived at.  
 G/VAL/N/1/ ARE/1 
- 63 - 
  (b)  If the customs value could not be arrived at applying those methods even 
flexibly, reasonable methods not inconsistent with the principles and general 
provis ions of the Customs Valuation Agreement (CVA), the Article VII of the 
GATT 1994, on the basis of data available anywhere in the GCC States may 
be applied. However, no customs value shall be determined on the basis of 
the following:  
 
(i)  the selling price in the GCC States of goods produced therein;  
(ii)  the higher of the alternative values;  
(iii)  the price of goods on the domestic market of the country of 
exportation;  
(iv)  the production costs other than the computed value defined under 
provisions  of the Clause VII of this Article;  
(v)  the price of goods for export to a country other than the GCC States;  
(vi)  arbitrary or fictitious values; or  
(vii)  minimum customs values.  
 
(c)  If the importer so requests, the importer shall be informed in writ ing of the 
method adopted in the customs value determination according to provisions 
of this Article. This clarification will only cover the goods being appraised, 
and will not serve as a reference with regard to appraisal of any other goods 
imported throu gh the same or other port of entry. This procedure is only 
intended for information purposes, and does not affect or replace procedure 
of appeal provided for in  Clause I.2 of this Article. IX.  
 
  G/VAL/N/1/ ARE/1 
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  9. The following Interpretative Annex is considered an integral part of this Article.  
Interpretative Annex  
 
 
Article  Interpretative Notes  
I.5 No credit balances pertaining to previous consignments will be  
considered when determining the value of the goods being valued.  
Example: An importer receives a shipment of TVs for SR10,000.  
 The invoice shows SR9,000 as price of the TVs, and a balance  of 
SR1,000. The importer stated that the balance of SR1,000 is  given to him as 
compensation for 10 TVs damaged in the  previous shipment.  
In this case, the balan ce is irrelevant to the shipment being valued. So, the 
customs value of the shipment will be SR10,000.  
IV.A Price actually paid or payable:  
1.  In determining the transaction value, the price actually paid or payable 
defined in the Clause II.(1) of this Article, irrespective of the method applied, 
shall be considered. It may be an outcome of deductions, additions or 
negotiations, or may be arrived at by applying a particular formula.  
 2.  "Payable " means price of goods not paid at time of determinat ion by the 
customs of the transaction value of the imported goods. The price agreed to be 
paid will be the basis for determination of the customs value. The payment need 
not necessarily take the form of a transfer of money. Payment may be made by 
letters o f credit or financial instruments, directly or indirectly.  
 3.  "Indirect payment " includes settlement of a debt owed by the seller to 
the buyer, totally or partially. The buyer may obtain discount in the price of the 
goods being valued as a settlement me thod for his debt owed by the seller. The 
indirect payment will not include activities undertaken by the buyer on his own  
account such advertisement (except the activities provided for in Clause IV.B) 
despite being beneficial also to the seller. In determi ning the customs value of 
imported goods, the costs of such activities shall not be added to the price 
actually paid or payable.  
 4.  Assembled Goods: The price actually paid or payable can represent an 
amount paid against assembly of the imported goods. So, the price actually paid 
or payable will be calculated by adding the value of the components and 
assembling. Example: An importer had already provided a foreign assembler  
readymade components for assembling, the price or cost of which at the 
assembling factory is SR1 per unit. The importer pays to the assembler SR0.05 
per unit against assembling. So, the transaction value of each unit will be 
SR1.50.  
IV.A.1  The restrictions that have no substantial effect on the price of the goods, shall 
not preclude de termination of the customs value by applying the transaction 
value method. For example:  
 
1.  Restrictions specifying a particular date for selling the imported  
goods.  
 Example 1: An importer buys a lot of garment. It is found that  
 the purchasing contract contains a condition by the seller that  
 the buyer (i.e., importer) shall only start selling after a particular  
 date, for instance at the onset of the winter.  
 2.  Restrictions specifying a particular place in the country of  
importati on for reselling the imported goods.  
 Example 2: Taking into account the Example 1, if the seller  
 specifies a condition requiring that the buyer (i.e., importer)  
 shall only resell, for instance, in the city of Riyadh.  
3.  Restrictions specifying a partic ular method of reselling in the  
country of importation.  
 Example 3: If the seller in the Example 1, specifies a condition  
 requiring that the buyer (i.e., importer) shall only resell through  
 the sales representatives only, or through advertisement in the  
 information media.  
IV.A.2  Condition or consideration for which a value cannot be determined:  
A seller specifies, for instance, the price of the imported goods on the condition 
that the importer shall also buy other goods also in spec ified quantities; or the 
price of the imported goods is dependent upon price/s at which the importer 
shall sell other goods to the seller of the imported goods; or the price of the 
imported goods is specified on the basis of a form of payment not related 
substantially to the goods, e.g., the goods is to be subjected to further G/VAL/N/1/ ARE/1 
- 65 - 
  Article  Interpretative Notes  
processing by the buyer, and the seller requires from the buyer to take a 
particular quantity of the goods after processing.  
IV.A.4  If the customs has sufficiently detailed informati on on the buyer and seller 
indicating to its satisfaction that the relationship between both of them has not 
influenced the price actually paid or payable, the price shall be accepted without 
requiring additional information from the importer. If the custo ms has doubt 
that the relationship has influenced the price, then the importer shall be notified 
thereof, and be given sufficient time to reply. The notification shall be in writing, 
if the importer so requests.  
IV.A.4.a  The transaction value, after examination of the circumstances surrounding the 
sale, shall be accepted, if the customs found:  
1.  that the buyer and seller, despite their relationship, buy and sell to each 
other as non -related person;  
2.  if the price was established consistent with no rmal pricing practices of 
the industry in question, this would demonstrate that the price has not been 
influenced by the relationship; and  
3.  if it is shown that the price is adequate to ensure recovery of all costs 
plus a profit which is representative o f the firm 's overall profit realized over a 
representative period of time, in sales of goods of the same class or kind.  
IV.A.4.b  Test Value:  
1.  These are values previously accepted as customs values for goods 
exported to the GCC States at or about the time of the importation of the goods. 
The test values shall only be used for comparison with the transaction value of 
the imported goods.  
2.  In order to determine whether the transaction value closely  
approximates to the test value, the following factor will be  
considered:  
 (a)  the nature of the imported goods, and the industry;  
 (b)  the season in which the goods are imported;  
 (c)  whether the di fference in value is commercially significant;  
and 
 (d)  whether the difference in value is attributable to internal  
 transport costs in the country of exportation.  
Since these factors may vary, a uniform standard, such as a fixed percentage in 
each case cannot be applied. A small difference in value in a case involving one 
type of imported goods could be unacceptable, although a large difference in a 
case involving another type might be acceptable.  
3. In applying the test values, differences between the d eclared value and the 
test value will be taken into account. The difference will be adjusted if it is based 
on objective data supplied by the importer or available to the customs. The 
difference may be related to the following:  
 
  (a)  commercial level of  the importer;  
 (b)  imported or contracted quantity;  
 (c)  costs specified in Clauses IV.B.1.(7) and (8) of this Article;  
 and 
 (d)  costs borne by the seller in sales where the seller and buyer  
 are unrelated, which is not borne by him in sales where the  
  seller and buyer are related.  
4.  If it is found through comparison and inquiry that a test value provided 
for in the Clause IV.A. 4.b is approximate to the declared value, an examination 
of the circumstances surrounding the sale to determine whether the relationship  
between the buyer and seller influenced the price, shall not be required. If the 
customs has sufficient information to be satisfied, without further detailed 
inquiries, that one of the test values is approximate to the declared value, it 
shall not require the importer to prove accuracy of the test value.  
IV.B.1.i  "Buying Commission " means expenses paid by the importer to his agent for his 
services of representation abroad for buying the goods being valued. It is not 
included in the customs value.  
"Selling Commission " means expenses paid to the seller 's agent, who is related 
to or controlled by, or works for or on behalf of, for selling the goods.  
IV.B.1.iv  A.  Requirements of adding value of assists:  
1.  If the value was not already included in the declared price actually paid 
or payable.  
2.  If the assists were provided by the importer (buyer ) free of charge to the 
producer (manufacturer) directly or indirectly.  
3.  If the assists were provided at a reduced cost, the addition shall be only 
apportioned to the amount reduced by the importer (buyer).  G/VAL/N/1/ ARE/1 
- 66 - 
  Article  Interpretative Notes  
4.  If the assists were used in production of the goods being valued.  
 B.  Determining value of assists:  
If cost of assists is to be added to the transaction value of the goods being 
valued, or to be used as a component of the computed value, the value of the 
assists and transportation costs thereof, to the production place of the goods 
being valued, includin g non-refundable  duties and taxes, shall be determined,  
and apportioned to the price of the goods in the following manner:  
 1. If the assists consist of materials, components, parts or similar items 
incorporated in the imported goods, or goods consumed in  production of the 
imported goods, acquired by the buyer from an unrelated seller, the value of 
the assists is cost of its acquisition. If the assist was produced by the buyer or 
a person related to the buyer, the value would be the cost of its production.  
2. If the assist consists of tools, dies, moulds, or similar items used in the 
production of the imported goods, acquired by the buyer from an unrelated 
seller, the value of the assist is the cost of its production. If the assist has been 
used previously,  the original cost of acquisition or production will be adjusted to 
reflect its use before its value could be determined. If the assist was leased by 
the importer from an unrelated person, the value of the assist would be the cost 
of the lease. Repairs or modifications to an assists may increase its value.  
 
 Example 1 : Sِaudi importer supplied detailed designs required for the goods 
manufacturing, to a foreign producer. The Saudi importer bought the designs 
from an engineering company in the GCC States for  providing to the foreign 
producer.  
Question:  Should the customs value of the goods include the value of the 
assist?  
Answer:  No, design work undertaken in the GCC States may not be added 
to the price actually paid or payable.  
 Example 2 : A Saudi importe r supplied moulds free of charge  
to foreign producer (exporter). The moulds were necessary to  
manufacture goods for the Saudi importer. The Saudi  
importer had some moulds manufactured in a GCC State and  
others manufactured in a third country.  
Question: Should the customs value of the goods include the  
value of the moulds?  
Answer: Yes. The value of the moulds must be added to the  
transaction value whether manufactured in or out of the GCC  
States.  
 
 C. Apportionment of the value of assists: . 
The apportionment of the value of assists to imported goods will be made in a 
reasonable manner appropriate to the circumstances and according to generally 
accepted accounting principles. The method of apportionm ent will depend upon 
the documentation submitted by the importer.  
If the entire anticipated production using the assist, for example, is for 
exportation to the country of importation, the total value may be apportioned 
applying one of the following methods : 
1.  the first shipment, if the importer wishes to pay duty on the entire value 
of the assist at once,  
2.  the number of units produced up to the time of first shipment,  
3.  the entire anticipated production of the assist, if definite contracts or 
underta kings exist regarding to such production,  
4.  any other method of apportionment requested by the importer 
 according to generally accepted accounting principles, or  
5.  if the imported goods are only a part of the production, or if the assist is 
used in se veral countries, the method of apportionment  will depend 
upon the documentation submitted by the importer.  
 Example : An importer provides the producer with a mould to be 
 used in production of the imported goods, and contracts to buy 
 10,000 units. By the  time of arrival of the first shipment of  1,000 
 units, the producer has already produced 4,000 units.  
In this case, the importer may request the customs to apportion the value over 
1,000, 4,000, 10,000 units, or any other figure which  conforms to genera lly 
accepted accounting principles.  
IV.B.1.v  1.  Fees or amounts paid by the importer for use of royalties and license 
fees, may include, among other things, payments in respect to patents, 
trademarks and copyrights, and shall be added to the customs value.  G/VAL/N/1/ ARE/1 
- 67 - 
  Article  Interpretative Notes  
2.  The price actually paid or payable for the imported goods being valued 
shall not include the charges for right of reproduction. It relates to the following 
goods: originals or copies of artistic or scientific works, originals or copies o f 
models and industrial drawings, model machines and prototypes, and plants and  
animal species.  
3.  The payments made by the buyer for the right to distribute or resell the 
imported goods shall not be added to the price actually paid or payable if such 
payments are not a condition for the sale to export the imported goods to the 
GCC States.  
4.  If the royalty is based partially on the imported goods and partially on 
other factors which have nothing to do with the imported goods (such as when 
the royalty can not be distinguished from special financial arrangements between 
the buyer and the seller), the customs value cannot be determined according to 
the transaction value method specified in the Clause IV of this Article.  
 5.  If the royalty, however, is based  only on the imported goods and can 
readily be quantified, an addition to the price actually paid or payable shall be 
made.  
IV.C.1.c  How to exclude the ad valorem customs duties and any other  
taxes:  
Example : If the price actually paid or payable is SR56,0 00 inclusive of the 
 value of the imported goods, insurance and freight (CIF), plus an ad 
 valorem duty reaching for example in the GCC States to 20%, in 
 addition to a post -importation payable tax of SR500.  
The customs duties and taxes shall be excluded a s following:  
56,000 – 500 = 55,500  
55,500 / 1.20 = 46,250 (The outcome represents CIF.)  
IV.C.1.d  Dividends or other payments from the buyer to the seller, which do not relate 
to the imported goods, will not be added to the customs value, such as the 
dividends of the shares paid to the shareholders, which are not directly related 
to the imported goods. Share dividends must be distinguished from the proceeds 
since the proceeds represent a part of the proceeds due to the seller from any 
subsequent resale , disposal or use of the imported goods that accrues  
directly or indirectly to the seller, which must be added to the value of the goods.  
IV.C1.e  The interest on financing provided by the seller, a bank or any other person, for 
buying the imported goods, shall not be included in the customs value, provided:  
1.  that such interest is separated from the price actually paid or payable for 
the imported goods;  
2.  that the financial agreement is concluded in writing;  
3.  that the buyer can prove that the goods is really sold at the price 
declared, i.e., the price actually paid or payable; and  
4.  that the financing interest rate does not exceed the prevalent rate of the 
country where the financing was extended regarding such transaction.  
IV.C.1.f  The activities  undertaken by the buyer on his own account other than those for 
which an adjustment provided in Clause IV.B, even if beneficial to the seller, 
include for example studies, market researches, publicity and advertisement, 
preparation of showrooms, and parti cipation in the commercial exhibitions.  
IV.C.2  Credit balances with the seller in favour of the importer, included in the price 
actually paid or payable for the goods being valued, as compensation for a 
previous consignment or business transaction. Since balance adjustment for 
previous consignments must be settled separately from the consignment being 
valued, refer to the Example in I.5 of this Annex.  
V.A. 1.  The customs value will be the transaction value of identical goods already 
accepted as transaction value under Clause IV of this Article, on the basis that 
such identical goods were sold for export to a GCC State, as of or about, the 
same date as the export of the goods being valued, from the same 
manufacturer, at the same commercial level o f the importer, and same quantity 
of the goods being valued.  
2.  Where no such value is found, the transaction of identical goods 
according following priorities will be used:  
 a.  from the same manufacturer, in different quantities and/or  
  commercial leve l; 
 b.  from a different manufacturer, in the same quantities and/or  
  same commercial level;  
 c.  from a different manufacturer, in different quantities and/or commercial 
level;  
 3.  The commercial level means form of dealing exercised by the importer, 
i.e., wholesale, retail or self -consumption.  G/VAL/N/1/ ARE/1 
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  Article  Interpretative Notes  
4.  If there is difference in the goods being valued and the identical goods in 
the quantities, commercial level and costs mentioned in Clause IV.B.1. of this 
Article, the transaction value of identical goods s hall be adjusted to take account 
of such differences, whether the adjustment leads to an increase or decrease in 
the value, based on demonstrated evidence which establishes reasonableness 
and accuracy of the adjustment, such as authorized price lists conta ining values 
reflecting different levels or quantities.  
Example : If the imported goods being valued consist of 10 pieces, and the only 
identical goods for which a transaction value exists involved 500 pieces, and if 
a price list from the foreign seller is available that contains different prices 
according to the quantities, then an adjustment can be reached by referring to 
that price list, through applying an appropriate value according to the imported 
goods being valued. This does not require that a transa ction of identical goods 
had to have been made in quantities of 10 as long as the price list has been 
established as being bona fide through sales at other quantities. In absence of 
such an objective measure, however, the determination of a customs value 
under the provisions of the identical goods transaction value is not appropriate.  
 5. If, in the application of this Article, more than one transaction value for 
identical goods is found, which were sold at same commercial level, in same 
quantity and in same sale circumstances (in mode of payment i.e., cash or 
credit; condition of goods at the time of sale i.e., at first line of production, 
stocks as backlog of the line of production, factory clearance, or end -of the -
season sales, etc.), then the lowest o f such values shall be used.  
V.B 1.  The customs value will be the transaction value of similar goods already 
accepted as transaction value under Clause IV of this Article, on the basis that 
such similar goods were sold for export to a GCC State, as of or  about, the same 
date as the export of the goods being valued, from the same manufacturer, at 
the same commercial level of the importer, and same quantity of the goods  
being valued.  
2.  Where no such value is found, the transaction of similar goods accordi ng 
following priorities will be used:  
 a.  from the same manufacturer, in different quantities and/or  
 commercial level;  
 b.  from a different manufacturer, in the same quantities and/or  
 same  commercial level;  
 c.  from a different manufacturer, in dif ferent quantities and/or  
 commercial level;  
 3.  The commercial level means form of dealing exercised by the importer, 
i.e., wholesale, retail or self -consumption.  
4.  If there is difference in the goods being valued and the similar goods in 
the quantiti es, commercial level and costs mentioned in Clauses IV.B.1. of this 
Article, the transaction value of similar goods shall be adjusted to take into 
account such differences whether the adjustment leads to an increase or 
decrease in the value, based on demon strated evidence which establishes 
reasonableness and accuracy of the adjustment, such as authorized price lists 
containing values reflecting different levels and quantities;  
 Example : If the imported goods being valued consist of 10 pieces, and the only 
similar goods for which the transaction value exists involved 500 pieces and if a 
price list from the foreign seller is available that contains different prices 
according to the quantities then an adjustment can be reached by referring to 
that price l ist, through applying an appropriate value according to the imported 
goods being valued. This does not require that a transaction of similar goods 
had to have been made in quantities of 10 as long as the price list has been 
established as being bona fide t hrough sales at other quantities. In absence of 
such an objective measure, however, the determination of a customs value 
under the provisions of the similar goods transaction value is not appropriate.  
 5.  If, in the application of this Article, more than one transaction value for 
similar goods is found, which were sold at same commercial level, in same 
quantity and in same sale circumstances (in mode of payment i.e., cash or 
credit; condition of goods at the time of sale i.e., at first line of product ion, 
stocks as backlog of the line of production, factory clearance, or end -of-the-
season sales, etc.), then the lowest of such values shall be used.  
VI.1 1.  If a number of units of the same imported goods, or of identical or similar 
goods, have been sol d in different quantities, the unit price to be used will be 
the price at which the greater number of the units is sold.  
Example 1:  Goods are sold based on a price list which grants favourable unit 
prices for purchases made in larger quantities:  
 G/VAL/N/1/ ARE/1 
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  Article  Interpretative Notes  
Sale qua ntity 
 Unit 
price 
(SR) 
 Number of sales  
 Total 
quantity  
sold at  
each price  
 
1-10 units  100 10 sales of 5 units  
5 sales of 3 units  
 65 
 
11-25 units  95 5 sales of 11 units  55 
 
Over 25 units  90 1 sale of 30 units  
1 sale of 50 units  
 80 
 
 
The greatest number of units sold at a price in this example is 80  
units sold at a price of SR90. Therefore, the unit price in the  
greatest aggregate quantity is SR90.  
 Example 2 : Two sales to unrelated persons occur. In the first sale, 500 units are 
sold at a price of SR95 each; in the second sale, 400 units are sold at a price of 
SR90 each.  
The greatest number of units sold at a price in this example is 500 units sold at 
a particular price. Therefore, the unit price in the greatest aggregate quantity is 
SR95. 
 
 Example 3: Various quantities are sold to unrelated persons at various prices:  
• Sales:  
 
Sale quantity (unit)  Unit price (SR)  
 
40 units  100 
 
30 90 
15 100 
50 95 
25 105 
35 90 
5 100 
 
• Totals  
 
Sale quantity sold 
(unit Unit price (SR)  
65 units 90 
50 95 
60 100 
105 25 
 
In this example, the greatest number of units sold at a particular price is 65; 
therefore, the unit price in the greatest aggregate quantity is SR90.  
 
VI.1.a  1.  In case the goods being valued are owned by the seller or exporter 
outside the GCC States, and are sold on the basis of commission, that which is 
usually paid or agreed to be paid by the seller to the importer for costs borne 
by him for selling the goods locally, shall be deducted.  
2.  If the goods bein g valued, however are sold to an importer who works 
for his own account, then "the profits and general expenses ", that is usually 
added by the importer to the selling price in the local market, shall be deducted, 
unless inconsistent with the amount of prof it usually added by the importer to 
the selling price in the local market and general expenses usually added to sales 
of goods being valued, of the same class or kind, in the GCC States, imported 
from the same or other countries. Deduction of such usual am ount will be based 
on relevant information other than supplied by or on behalf of the importer.  
3.  The profit and general expenses should be taken as a whole. A figure can 
be inconsistent with similar figure of the same industry. As long as the total of 
both is consistent with the total of usual profit and general expenses, it should 
be used. This deductible figure should be determined on the basis of the G/VAL/N/1/ ARE/1 
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  Article  Interpretative Notes  
information supplied by or on behalf of the importer. The general expenses shall 
include direct and in direct costs of marketing the particular goods.  
 4.  "Goods of same class and kind " are goods falling within a group or range 
of goods produced by a particular industry or industrial sector, including but not 
limited to, identical goods and similar goods, whether imported from the same 
country of production or exportation of the goods be ing valued, or from another 
country. Whether certain goods are "of same class or kind " must be determined 
on a case -by-case basis by reference to circumstances surrounding the goods.  
 
VI.3 
 1. There might be instances where, although the identity of the o f the imported 
goods is lost, the value added by processing can be determined accurately 
without unreasonable difficulty, provided that it is based on the basis of 
objective and quantifiable data related to cost of such work. Acceptable industry 
formula, r ecipes, methods of construction, and other industrial practices would 
form the basis of the calculations.  
2. On the other hand, there can also be instances where the imported goods 
maintain their identity but form such a minor element in the goods sold in the 
country of importation that the use of this valuation method would be 
unjustified. In view of the above, each situation of this type should be considered 
on case -by-case basis.  
VII.1 
 As a general rule, customs value under this Article will be determi ned on the 
basis of information readily available in the country of importation. In order to 
apply the computed value method falling under Clause VII, it may be necessary 
to examine the costs of producing the goods being valued and other information, 
which  is to be obtained from outside the GCC States. The use of computed value 
method will generally be limited to those cases where the buyer and seller are 
related, and the producer is prepared to supply to the customs the necessary 
costings, and to provide f acilities for any subsequent verification.  
VII.1.a  
 1.  The "cost or value " referred to in this paragraph is to be determined on 
the basis of information relating to the production of the goods being valued, 
supplied by or on behalf of the producer and w here it is consistent with generally 
accepted accounting practices in the country of the exporter. Where such 
information is available from another source, the customs shall inform the 
importer, if he so requests, of the source of such information, the dat a used, 
duly observing confidentiality according to Clause I.3 of this Article.  
2.  The cost or value mentioned in this Clause includes the following:  
 (a)  cost of elements specified in Clause IV.B.1.(ii) and (iii). of  
 this Article; and  
 (b)  cost of elements specified in Clause IV.B.1.(iv). of this  
 Article apportioned as appropriate under the provisions of  
 Clause IV.B.1.iv. of this Interpretative Annex . Taking into  
 account that the costs of the elements specified in Clause  
 IV.B.1.iv.(d) undertaken in the GCC States shall be included  
 only to the extent that the elements are borne by the producer  
 for obtaining such elements. No cost or value of el ements  
 referred to in this Clause shall in any case be counted twice.  
VII.1.b  1.  The amount for profit and general expenses should be taken as a whole. 
If the producer 's profit figure is low and general expenses are high, those figures 
taken together m ay be consistent with those usually reflected in sales of 
imported goods of the same class or kind.  
2.  If the producer 's figures for the profit and general expenses are 
inconsistent with those usually reflected in sales of goods of the same class or 
kind as the goods being valued, which are made by the producer in the country 
of exportation, for export to the GCC countries, in that case, the amount for 
profit and general expenses may be based on objective data, according to Clause 
II..11 of this Article, o ther than that supplied by or on behalf of the producer of 
goods.  
3.  The general expenses mentioned in Clause VII.1.b of this Article shall 
cover all direct or indirect costs of production and sale of the goods for export, 
not included in Clause VII.1.a o f this Article.  
 4.  While determining usual profit and general expenses according to the 
provisions of Clause VII.1.b of this Article, the narrowest group or range of the 
goods of same class or kind will be examined including sales of identical or 
simila r goods from same country of production of the goods being valued, which 
are sold for export to the GCC States, including the goods being valued. Whether 
certain goods are of the same class or kind as other goods, must be determined 
on a case -by-case basis  with reference to the circumstances involved.  G/VAL/N/1/ ARE/1 
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  Article  Interpretative Notes  
VIII.(a)  This Clause does not provide for a specific method of valuation. Rather, it 
requires that the customs value shall be determined according to the following:  
1.  using reasonable means or methods;  
2.  should be consistent with the principles and general provisions of the 
 Customs Valuation Agreement (CVA), and Article VII of the GATT 
 1994; and  
3.  be based on the data available in the country of importation.  
 
1.  Value determination using reasonable me thods:  
 
The customs value under provisions of this Clause should, to the greatest extent 
possible, be based on the customs values determination methods already 
mentioned in Clauses IV to VII with reasonable flexibility in the application in 
conformity with the pur poses and provisions of the Customs Valuation 
Agreement. If the customs value could not determine  using such methods, the  
customs value may be determined using other logical methods provided that:  
1.  such methods are not prohibited under Clause VIII.B; a nd 
2.  such methods are consistent with general principles and provisions of the 
CVA. 
 Example : A consignment containing an equipment leased for specified period, 
for instance, of three years (that is the supposed life of the equipment) against 
a monthly rent of SR2,000, is imported. No identical or similar equipment was 
previously imported. The cu stoms value of such equipment could not be 
determined according to the methods specified in Clauses IV to VII.  
In order to determine the customs value of the equipment, it should be taken 
into account that there is no sale to apply to the transaction valu e; no identical 
or similar equipment was previously imported; the equipment is not resold in 
the GCC States; and no information on production cost of the equipment is 
available, therefore the customs value cannot  be determined according to 
Clauses IV to VI I even if in its flexible form. However, there is reasonable 
method that can be applied according to Clause VIII, i.e., using total rent 
representing the supposed life of the equipment (36 months x 2,000 = 
SR72,000) as the customs value.  
 2.  General principles of the Customs Valuation Agreement:  
 a. Reliance to the greatest extent possible on the transaction value of the 
imported goods;  
 b. Uniform valuation system;  
 c. Simple and equitable criteria;  
 d. Clear and neutral systems;  
 e. Consiste nt with commercial practices.  
3.  Data available in the country of importation : 
In case of availability of data from a foreign source, utilization of such data for 
purposes of determining customs value under Clause VIII of this Article is not 
precluded. So  long as correct and accurate information, however is available in 
the GCC States, it should be used.  
 
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