ORGANISATION MONDIALE  
DU COMMERCE   
G/VAL/N/1/BHR/2 
15 octobre 2012 
 (12-5586) 
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 
 
BAHREÏN 
   La communication ci-après, datée du 3 octobre 2012, est distribuée à la demande de la délégation du Royaume de Bahreïn. 
 
_______________ 
 
  Veuillez trouver ci-joint une copie de la Loi de 2008 sur le régime douanier commun 
du CCG.
1 
                                                      
1 En anglais seulement.  La version arabe peut êt re consultée à la Division de l'accès aux marchés.  G/VAL/N/1/BHR/2 
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GULF COOPERATION COUNCIL 
 
 
COMMON CUSTOMS LAW 
  
RULES OF IMPLEMENTATION AND EXPLANATORY NOTE 
 
 
2008 G/VAL/N/1/BHR/2 
Page 4  
 
   
  
Table of Contents  
 
 
 
Introduction   
 
Section I: General Provisions and Definitions 
 
Section II: Principles for Application of the Customs Tariff 
 
Section III: Prohibition and Restriction 
 
Section IV: Distinguishing Elements of the Goods 
 
Section V : Importation and Exportation  
 
 
Chapter I - Importation : 
 
i. Marine (sea) Transport. ii. Land 
Transport. 
iii. Air Transport Chapter 
II - Exportation Chapter III - 
Postal Traffic 
Chapter IV - Common Provisions  
 
 
Section VI: Stages of the Customs Clearance 
 
Chapter I - Customs Declarations 
 
Chapter II - Inspection (examination) of Goods Chapter 
III - Provisions relating to Passengers Chapter IV - 
Adjustment of Prices 
Chapter V - Payment of the customs taxes” duties” and the release of goods.  
 
 
Section VII: Cases where customs duties and taxes are suspended:  
 
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Chapter I - General Provisions  
 
Chapter II – Goods in Transit 
 
Chapter III - Warehouses 
 
Chapter IV - Free zones and Duty-Free Shops 
 
Chapter V - Temporary Admission Chapter 
VI - Re-exportation Chapter VII - Drawback 
 
Section VIII: Exemptions  
 
Chapter I - Commodities exempted from customs duties and taxes 
 
Chapter II - Diplomatic exemptions 
 
Chapter III - Military exemptions 
 
Chapter IV - Personal effects and household appliances Chapter V –Imports 
by the philanthropic societies (charities) Chapter VI - Returned goods 
Chapter VII - Common Provisions Section 
IX: Service Fees and Charges Section X : Customs 
Brokers 
Section XI: Rights and duties of the customs officers 
Section XII : Customs Zone (Territory)  
Section XIII : Customs Matters (cases) 
 
Chapter I : Detection (investigation) of smuggling 
 
Chapter II : Seizure Report 
 
Chapter III : Precautionary (Provisional) Measures 
 
Part 1: Precautionary (Provisional) seizure 
 
Part 2: Preventing the offenders and the accused persons from leaving the 
country. 
 
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Introduction  
 
The unification of the customs regulations and procedures in the GCC Member States is one of 
the most important objectives to be achieved by the customs administrations of the GCC 
Member States among which is the adoption of a “Common Customs Law” that unifies the 
customs procedures in all the customs administrations of the GCC Member States and contributes to the enhancement of cooperati on in the customs  field among the Member 
States. 
 
The efforts to achieve this objective ha d been made since 1992 and the technical 
committee, assigned by the directors general of cu stoms, to do this task had held  seventeen 
meetings for this purpose and concluded with the agreement on the Law referred to above.  
To ensure that this Law is in line with th e provisions of the international organizations 
relating to customs, the Secretariat General had dispatched English versions of this 
Regulation to the World Trade Organization an d the World Customs Organization for their 
comments and the Secretariat General received those comments which were passed to the competent  technical committee for consider ation and proposing appropriate action. 
 
The Common Customs Law of the GCC Member  States was adopted by the Supreme Council 
at the 20
th Session (Riyadh, 27-29 November 1999) to be implemented as a reference law for 
one year from the date adopted by the Supreme Council and to be revised in the light of the 
comments received by the Secretariat General from the Member States in an attempt to have it compulsorily implemented by all the Customs Administrations of the GCC Member 
States by 2002. 
 
In order to complete the necessary implementation aspects of the Common Customs Law in 
the customs administrations of the GCC Member 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, at its 21
st Session held in Manama, Bahrain 30-31 
December 2000, decided to extend the refere nce implementation of the Common Customs Law 
for one more year provided that it should be obligatorily implemented by all the Customs Administrations of the GCC Member States as of January 2002 . 
 
The said decision “resolution” of the Supreme Council was a step that had enabled the 
customs administrations and the ad hoc committe es of the GCC Member States to complete 
all the aspects that would provide the factors of the proper implementation of this Law to 
achieve the intended objective, that is the unifi cation and facilitation of the customs procedures 
in the GCC Member States which would enhance Intra-GCC trade and external trade with the 
rest of the world, and lay down the firm foundations of the GCC Customs Union. 
 
 
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  Pursuant to the recommendation of the Ministerial Council, at its 81st Preparatory Session, to 
adopt the recommendation of the Financial and Economic Cooperation Committee (The Ministers 
of Finance and Economy of the GCC Member States) at its 55th Meeting concerning the GCC 
Common Customs Law, the Supreme Council , at its 22nd Session held in Muscat on 30-31 
December 2001, resolved as follows: 
  
1. Approval of the amendments proposed to the GCC Common Customs Law , 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) rela ting to the Common Customs Tariff and the 
mechanism for the collection an d distribution of duties in the customs union of the GCC 
Member States shall synchronize with the setting up of the customs union. 
4. Article (97) relating to drawback “the re fund of the customs taxes “duties” on the goods re-
exported to outside of the GCC Member States” shall be implemented after the issuance of 
the rules of implementation thereof. 
5. Provisions of Article (109) entitling the GCC c itizens the right to engage in the activity of 
customs clearance shall be implemented af ter the Financial a nd Economic Cooperation 
Committee has agreed to permit the GCC nationa ls to engage in this activity in the 
GCC Member States. 
The Supreme Council, at its 23rd Session held in Doha, Qatar  21-22 December 2002, approved 
the decisions of the Financial and Economic Co- operation Committee concerning the application of 
Article (9) "Implementation of the Common Cust oms Tariff", Article (97) "Drawback", Article 
(98) "Goods exempted from the customs taxe s “duties” and Article (109) permitting the GCC 
citizens to engage in the ac tivity of customs clearance.  
This Law falls in (17) sections comprising (1 78) Articles containing provisions regulating the 
customs work, the areas subject to customs control,  the nature of the customs procedures at the 
land, sea , air and post customs offices that a pply to the import and export operations, the 
application of the customs tariff and the collec tion 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 custom s for the clearance of the goods, and the 
provisions for the establishment of free zones and duty-free shops and the regulation of the work 
of the customs brokers (clearing agents), the treatment of the customs offences and the smuggling cases and the rights and duties of the customs offi cers. Hence, this law is deemed as the legal 
tool regulating the customs procedures in the cu stoms administrations of the GCC Member States 
as well as the relationship between these administra tions and the community of citizens, residents 
and importers so that the person dealing with  the customs administrations would find no 
difference in the customs procedures applied in any of the GCC Member States.  This law does 
also govern the relationship between these customs administrations and the government departments in each Member State.  When this Law had been prepared, it was taken into account that it would be utilized in the 
customs work for the time being and it would also prepare the customs administrations of the 
Member States for the forthcoming phase of the GCC Customs Union as it meets all requirements thereof.    
 
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  COMMON CUSTOMS LAW OF THE COOPERATION COUNCIL FOR  
THE ARAB STATES OF THE GULF 
 
 
Section I 
 
 
General Provisions and Definitions 
 
Article 1  
 
This regulation (law) is called “The Common Customs Law for the Arab States of the Gulf (GCC 
Sates)” . 
 
Article 2  
 
The following words and terms,  wherever mentioned throughout this Regulation “Law“, its 
Explanatory Note and Rules of implementation, shall have the  meanings hereby assigned for 
them, unless the context otherwise requires :  
1. “the Council “means the Cooperation Council for the Arab States of the 
Gulf. 
 
2.  “ the Minister “means the minister to whom the Customs Administration reports. 
 
3.  The “ competent authority ” means the authority to whic h the customs administration 
reports. 
 
4.  The " Director General “means the Director General of Customs. 
 
5.  The " Director “means the director of a Customs office. 
 
6.  "Administration “means the Customs Administration. 
 
7.  “ Customs office “means the sector, designated by the Minister, at each seaport,  airport, and 
land port or at any other place where there is a branch office of the Administration authorized to complete all or some of the customs procedures. 
 
8.  “ Regulation / law “means the rules and provisions governing customs work, and any 
other supplementing or amending rules or provisions.  
9.  “ customs zone /territory “ means that part of the lands or seas subject to the customs control 
and procedures set forth herein which is of two kinds: 
 
  
 
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  (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 la nds 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. “ Customs line “means that line conforming to the po litical boundaries (borders) separating 
between the country and the adjacent countri es and the seashores surrounding that country. 
 
11. “ 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. “ Customs taxes (duties) “means the amounts levied on the goods according to the 
provisions of this Law. 
 
13. “ Fees/charges “means the amounts collected by customs for the services rendered. 
 
14. “ Goods “means any natural, material, animal, agricultural, industrial or intellectual 
product. 
 
15. “ Type of goods “means the description mentioned in the customs tariff nomenclature. 
 
16. “ 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 account. 
 
17. “ the imported goods being valued ” means the goods being valued for customs 
purposes. 
 
18. “ Identical goods ” means goods that are the same in all respects, including physical 
characteristics, quality and re putation. Minor differences in appearance would not 
preclude goods otherwise conforming to the definition from being regarded as 
identical. 
 
19.  “ 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 interc hangeable. The quality of the goods, their 
reputation and the existence of a trademark are among the factors to be considered in 
determining whether goods are similar. 
 
20. “ 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 favor or on its behalf. 
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  21.  “ packing costs ” means the cost of all packing a nd coverings (excluding instruments 
of international traffic” whether for he la bor or the materials used for placing the 
goods in packings suitable for shipping to the GCC Member States. 
 
22. “ Unit price at the greatest total quantity ” means the unit price at which certain 
goods are sold to unrelated persons, at the first commercial level after importation at 
its state when imported or after further preparation or processing, if the importer so 
requested. 
23. “Related persons ” 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 
outstanding voting stock shares of both of them, 
(e). one of them directly or indirectly controls the other, (f). both of them are directly or indi rectly controlled by a third person, 
(g). together they directly or indirectly control a third person, (h). members of the same family. 
 
24.  “Valuation Agreement “means the Agreement on Implementation of Article VII of 
the GATT 1994. 
 
25. “ Origin of the goods ” means the producing country, whether these goods are natural 
resources, agricultural crops or animal or industrial products. 
 26. “ Prohibited goods “ means any goods the import or export of which is prohibited under the 
provisions of this Regulation “ Law “ or any other regulation “ law “. 
 
27. “ Restricted goods “ means those goods the import or export of which is restricted under the 
provisions of this regulation “law “ or any other regulation “ law “. 
 
28. “ Source “means the country from which the goods are imported. 
 
29. “ Importer “means the natural or legal person importing the goods. 
 
30. “ Exporter “means the natural or lega l person exporting the goods. 
 
31. “ Manifest “ means the document containing a full d escription of the goods carried  on  the 
various means of transport. 
 
32. “ Free zone “means a part of the state’s territories in  which commercial or industrial  activities 
are exercised under the respective la ws of that state. Any goods en tering that zone are considered 
to be outside the customs zone and shall not be s ubject to the usual customs control and procedures. 
 
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  33.  “ 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. " 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 regulation “ law “ . 
 
35. “ Storehouse ” means that building or place intended for the temporary storage of goods 
pending their withdrawal under one of the cust oms procedures whether such place/building is 
directly administered by the Administration or by the official public agencies or the investors.  
36. “ 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. “ Carrier “means the owner of a means of transportation or his authorized 
representative (under an official authorization). 
 
38. “ Specified routes “means the routes specified by the minister for the carriage of the 
imported or exported goods into/from the country  or the goods in transit under a resolution. 
 
39. “ Treasury “means the public treasury. 
 
40. “ Customs Clearance ” means documentation of the customs declarations for the 
imported, exported and transit goods accordin g to the procedures provided for herein. 
 
41. “ Customs broker “means any legal or natural pe rson licensed to undertake customs 
clearance for the account of the others. 
 
42. “ Representative of the customs broker ” means any legal or natural person licensed 
to follow up customs procedures. 
 
 
 
 
Article 3  
 
The provisions of this regulation “Law “apply to the sovereign territories and territorial waters 
of the country. Notwithstanding, free zones, tota lly or partially excluded from customs provisions, 
may be established in such territories. 
 
  
 
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  Article 4  
 
Any goods crossing the customs line, at importa tion or exportation, shall be subject to the 
provisions of this regulation (law).  
 
 
Article 5  
 
The Administration shall perform its duty at the cu stoms office or customs zone and  May  also 
exercise its powers within the extent of the c ountry’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 cu stoms offices as set forth in article 7. 
 
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, excluding those exempted under the provisions of 
this regulation “ law “or under the Unified Economic  Agreement of the GCC Arab states  or any 
other international agreement with in 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. 
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  Article 11  
 
Customs taxes” duties” are levied, amended and abandoned by the legal instrument applicable 
in each Member State subject to the respectiv e resolutions issued by the Council and the 
provisions of the international agreements in force. 
 
 
 
Article 12  
 
Resolutions amending the customs taxes “duties” sh all specify the date at which such amended 
taxes “duties” shall be effective.  
 
 
Article 13  
 
Imported goods are subject to the customs taxes “du ties” applicable at the date of registering the 
customs declaration with the customs offices unl ess otherwise provided for in the text of the 
resolutions amending the customs tariff. 
   
Article 14  
 
When custom 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 th e tariff provisions applicable at 
the date of lodgment of the customs declaration. 
 
Article 15  
 
Goods taken out from the free zones and duty-fr ee shops into the local markets are subject 
to the customs tariff effective at that time. 
 
 
 
Article 16  
 
Smuggled goods (contrabands) or the like are subj ect to the customs tariff prevailing at the 
time of the detection or occurrence of smugg ling, if applicable, whichever is higher.  
 
 
Article 17  
 
The customs tariff effective on the sale day shall ap ply to the goods sold by the customs office 
according to the provisions provided for herein. 
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  Article 18  
 
 
 
Damaged goods shall be subject to  the customs tariff based on their value at the date of lodgment 
of the customs declaration.  
 
 
 
  
 
  
 
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 aut horities at the nearest customs office.  
 
  
 
 
Article 20  
 
Marine means of transport entering the count ry, irrespective of th eir load capacity, are 
prohibited from anchoring in any seaports (harbor s) 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 prohibited 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  emergency 
or force majeure, in which case the shipmaster sh all promptly notify the nearest customs office 
or security point of such occurrence, excluding g oods transported within the local seaports of the 
country whose customs procedures have been finalized. 
 
 
 
 
  
 
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  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 secur ity point of such occurrence and submit a report, 
approved by the customs office notified of that occurrence, unless  otherwise provided for in any 
other regulation (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 regulation (law) or any other regulation ( law ) or 
resolution, the Customs Administration prohibits  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.  
 
Section IV 
Distinguishing Elements of the Goods  
(Origin, Value, type)  
 
 
Article 25  
 
Imported goods are subject to the proof of origin according 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 ac cording to the rules and principles set forth in 
the rules of implementation. 
 
Article 27  
 
Acceptance of the value as a distinctive el ement of the goods requires the following: 
 
1.   Any customs declaration shall be acco mpanied by a detail original invoice. The 
director general or his representative may allow finalization of the clearance 
    
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   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 shall 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 doc uments, 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 tr anslation of the invoices issued in a foreign 
language showing details  of the goods in 
accordance with the customs tariff as well as the other documents, 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 su bheadings in the customs tariff are to be 
classified within the context of the Unified Cust oms Tariff of the member States of the Council. 
 
  
 
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.  
 
 
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  ii. Types of the goods, total weight thereof and the weight of bulk goods , if any .If goods are 
prohibited, their actual description shall be mentioned. 
 
iii. Number of packages and pieces, descripti on 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 present the original 
manifest to the competent authorities. 
 
d) When the ship enters the harbor, the ship master 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 at this port. 
5. All the shipping documents which the customs office may require for application of 
the customs regulations. 
 
e) Manifests and documents shall be submitted w ithin sixty-three hours from the time the ship 
enters the seaport, excluding official holidays.  
 
 
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, th en the manifest must be endorsed by the customs 
authorities at the shipping port. 
 
 
 
 
Article 32   
 
 
a) Cargo of the ships and all other marine mean s of transportation may be unloaded only within 
the customs zone at the port. Any shipment may be unloaded or transshipped only under 
supervision of the customs office. 
 
b) Unloading and transshipment shall be completed according to the conditions laid 
down by the director general.  
 
  
 
 
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  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 bulk 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 h as 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 sh all be completed at the first customs office 
and may be referred to another inland customs office, if 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 representative and shall cont ain 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 immediately 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. 
 
 
 
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  Article 38  
 
A manifest of the airplane’s cargo shall be prep ared 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  manifest  and  the  lists mentioned in Article 
38 herein to the customs officers and shall deliv er these documents to the customs office upon 
arrival of the aircraft.  
 
 
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 regulations.  
 
 
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 a ccording to the provisions of Section 1 of this 
Chapter and shall obtain exit permission. However, the Director General, may, in certain cases, 
make an exception to this condition. 
 
  
 
  
 
Article 42   
 
 
Exporters of goods shall proceed with the goods to be exported to the co mpetent customs office 
and declare them in detail. Carriers towards land borders may not overpass the customs offices.  
 
  
 
  
 
  
 
  
 
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  Chapter III: Postal traffic  
 
Article 43  
 
Goods are imported or exported by mail accordi ng to the provisions of this regulation (law) 
and subject the other applicable international pos tal agreements and local regulations 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 trai lers are subject to the instructions given by 
the director general.  
 
 
b) A single consignment may not be split. However, for acceptable reasons, the director general 
may allow such splitting, provided that such sp litting 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 transshipment of goods. Driver s, 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. 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
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  SECTION VI  
 
Stages of customs clearance  
 
Chapter I: Customs declarations   
 
 
Article 47   
 
 
When clearing any goods , even if exempted fro m customs taxes and duties, a detailed customs 
declaration, conforming to the forms approved within the framework of the GCC  Member 
States, shall be submitted to the customs office  containing all the information  that enable 
application of the customs regulations and levy ing applicable customs taxes and duties and for 
statistical purposes. 
 
 
 
 
Article 48   
 
 
Subject to the provisions of clause (1) of Article 27 herein, the director general shall specify the 
documents to be attached with the customs decl arations and the information to be contained 
therein and shall allow the completion of the cl earance procedures in the absence of any of the 
required  documents against cash or bank guarant ees or a written undertaking to submit such 
documents according to th e stipulated conditions.  
 
 
Article 49  
 
Contents of the customs declarations may not be modified after registration; however, the applicant 
may apply in writing to the customs office for corr ection 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 cust oms office.   Such samples shall be subject to 
the applicable customs taxes “duties”. 
 
  
 
  
 
 
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  Article 51  
 
No parties other than the owners of the goods or their representatives may have access to the 
customs declarations excluding compet ent 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 in structions of the director general. 
 
Article 53  
 
a) Examination of goods shall take place at th e customs office; however in certain cases such 
examination may be conducted outside the cust oms office according to the rules laid down by 
the director general.  
b) Transferring the goods to the place of exam ination and the unpacking and repacking of 
packages and all the other works required for ex amination shall 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 of the customs office 
. 
d)  The individuals carrying the goods and presenti ng them for examination shall be acceptable to 
the customs office. 
 
e) Access to the stores, customs warehouses, hanga rs, sheds and yards intended for the storage 
or deposit of goods 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 shortage in the contents  of the packages develop, responsibility for such 
shortage is determined as follows: 
 
  
 
  
 
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  1. If the goods had been placed in the customs wa rehouses in packages that are in an apparently 
proper condition from which it can be ascertained that the shortage of 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 or stores are in packages that are not  in  an
 apparently  proper condition, the entity in  charge of these warehouses an stores shall, 
together with the carrier, record this occu rrence in the acceptance report and verify the 
weight, contents and number of packages. It sha ll also take the necessary precautions to ensure 
safety of the goods. In this case the carrier sha ll be held responsible unless a reservation is 
indicated on the  manifest and endorsed by th e customs office of the exporting country in 
which case the shortage will be disregarde d and the pursuit shall be discontinued.  
3.  If the goods have been admitted into the cust oms warehouses and stores in  packages that are in 
an apparently proper condition then they became s ubject of suspicion, the entity in charge of the 
warehouses shall be responsible for an y shortage or switching, if any.  
 
 
Article 55  
 
When the customs office suspects th e presence of prohibited or illegal, it shall have the right to open 
the packages for inspection. Such opening of pack ages may be authorized in the absence of the 
owner of the goods or his representative, if he  refrains from attending the inspection at the 
specified time notified to him. 
 
When necessary, the customs o ffice may inspect the goods before notifying the owner of the 
goods or his representative.  Such inspection ma y be conducted by a committee formed, for this 
purpose, by a decision of the director general a nd 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 regulations and laws.  
 
 
b) Goods requiring the availability of certain c onditions 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 sp ecifications, be destroyed at the expense 
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  and in presence of their owners or their re presentatives. When necessary, such goods shall 
be re-exported to the source country in whic h case a report of the same shall be made.  
 
 
Article 57  
 
Customs taxes “duties” shall be levied according to the contents of the customs declaration.  Should 
physical inspection result in a difference (discrepan cy) between the goods and what is stated in the 
customs declaration, customs taxes and duties shall be levied on the basis of this finding 
without prejudice to the customs’ right to levy  the applicable fines, when necessary, under the 
provisions set forth herein. 
 
 
 
 
Article 58  
 
If the customs office cannot verify the contents of the customs declaration through inspection of 
the goods or the documents submitted, it may su spend 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 accord ing to the rules and practices laid down by the director 
general.  
 
  
 
  
 
  
 
  
 
  
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  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 importe d  goods.  Such  committee may seek assistance 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 in creased value within fifteen days following the 
registration of the customs 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 sh all be informed in writing of the decision taken 
by the committee concerning his complain t. 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 description, origin or any other reason, 
the matter shall be referred to the director fo r 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 to the director general for settlement  of  dispute or for referral to the valuation 
committee. 
 
b) The director may release the goods in disput e , if not prohibited, after collecting a  deposit 
in an amount equivalent to the sum of th e customs duties and taxes 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.  
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
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  Chapter V  
 
Payment 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. 
(b) Goods shall be delivered to the owners or th eir duly authorized representatives according to 
the procedures prescribed by the director general. 
 
Article 64  
 
The customs officers assigned to collect custom s 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, precauti ons may be taken for removing the goods against 
special guarantees and conditions 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. 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
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  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 ot her 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 th e instructions given by the director general.  
 
 
Article 68  
 
Bails, bank guarantees and securities shall be rele ased 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 Agreement of the GCC 
Arab States, goods are allowed to transit the territories of the Council states  according to the applicable provisions and regulations a nd the international agreements force. 
 
Article 70  
 
Transit operations can be completed onl y at the authorized customs offices.  
 
 
Article 71  
 
Subject to the provisions of the applicable regiona l and international agreem ents 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.  
 
 
Article 72  
 
In the event goods are transported from one cust oms office to another, the persons concerned 
may be exempted from submitting a detail declar ation at the port of entry and the referral 
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  shall be according to the documents and cond itions prescribed by the director general. 
 
Article 73  
 
The minister or the competent authority sha ll issue the necessary resolutions governing the 
suspension of the customs duties and taxes applicab le to all other kinds of transit transport.  
 
 
Chapter III: Warehouses   
 
 
Article 74  
 
Warehouses inside or outside the customs 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 a nd control the warehouses, managed by other 
agencies, under the provisions of this regulati on” law” and the other regulations (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 of 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 zone and duty-free shops, without being subject to 
customs duties or taxes. 
 
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  (b). Subject to the export restrictions and customs procedures applicable to 
re-exportation, the foreign goods re -exported from inside the count ry 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, ma y not be transferred or admitted into the free 
zones and duty-free shops unless by approval of th e director general and under the conditions and 
controls prescribed by him. 
 
Article 80   
 
 
The following goods may not be admitted into the free zones and duty-free shops: 
 
1.  Flammable goods, excluding the fuels n ecessary for the  operation allowed by the 
authority supervising free zones and duty-fr ee shops under the conditions prescribed by 
the competent authority. 
 
2. Radioactive materials 
 
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 reso lutions 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 work s in the free zones and duty- free shops for 
detection of prohibited goods, and it may also re view the documents and examine the goods when 
smuggling operations are being suspected. 
 
 
 
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  Article 82  
 
The management of the free zones and duty-free s hops 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 to other free zones and 
duty-free shops, stores or warehouses unless acco rding 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 country according to the 
provisions of applicable regulations and as instructed by the director general. 
 
Article 85  
 
Goods taken out from the free zones into the customs office are treated as foreign  goods  even if 
incorporating local raw materi als or articles on which customs duties and taxes have been 
collected prior to their ad mission 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 r esponsible for  all the 
offences committed by its officers and for the goods illegally taken out from them.  All regulations 
and instructions relating to security, public h ealth, smuggling and fraud 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.  
 
 
  
 
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  Chapter V 
Temporary Admission  
Article 89  
Subject to the provisions provided for in this chap ter and in the Unified Economic Agreement of the 
Council countries and the other international appl icable agreements, goods shall be temporarily 
admitted without collection of customs duties and ta xes 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 
experiments and tests relating to such projects. 
 
2. Foreign goods imported fo r completion of processing. 
 
3. Items temporarily imported for playgro unds, theatres, exhibitions and like events. 
 
4. Machinery and equipment imported into the country for repair. 
 
5. Containers and packi ng 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-expor ted or deposited with the free zone, customs 
offices or warehouses during the temporary ad mission period prescribed by the Rules of 
Implementation.  
 
 
Article 91  
 
Provisions of the Unified Economic Agreemen t of the GCC Member States and the other 
international applicable agre ements governing the temporary admission of vehicles shall be 
observed according to the instructions pr escribed by the Rules of Implementation. 
 
  
 
  
 
 
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  Article 92  
 
The materials and articles released by 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 by temporary 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 guarantees to be produced. 
 
 
 
 
Chapter VI 
Re-exportation  
Article 95  
The goods imported into the country, on which customs duties “taxes” were not collected, may 
be re-exported 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 transshipment of the goods or withdrawal of the 
goods that were not placed into the customs ware houses, 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 conditi ons set forth by the Rules of Implementation. 
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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 unified customs tariff 
of the GCC Member States shall be ex empted from customs duties and taxes. 
 
 
 
Chapter II  
Diplomatic exemptions 
Article 99  
 
 
Imports of the diplomatic corps, consulates, in ternational 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 internat ional 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, after 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: 
 
 
1.  Termination of the mission of the dipl omatic or consular member benefiting 
from exemption in the country. 
2.  The occurrence of an accident to th e exempted car which makes it unfit for the 
use of the diplomatic or consular memb er based on a joint recommendation by both 
the Traffic Department and the Administration. 
 
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  3.  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 “duti es” by a resolution of the Council of Ministers or the authorized 
authority in each State.  
 
 
Chapter IV  
 
Personal effects and household items  
 
Article 103   
 
 
(a). To be exempted from customs taxes “ duti es” are the personal effects and used household  
items brought into the country  by  the  nationa ls residing abroad or the foreigners coming for 
the first time for residence in the country, subj ect 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 pr escribed by the Rules of Implementation. 
 
 
  
 
  
 
  
 
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  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 pr escribed by the Rules of Implementation. 
 
 
 
 
Chapter VI  
Returned goods  
 
Article 105  
 
 The following goods shall be exempt ed from customs taxes and duties:  
 
 
 1. Returned goods of national orig in that were previously exported. 
 2. Returned foreign goods that are proved to have been previously re-
exported to the outside the country, if retu rned within one year from the date of 
re-exportation. 
 3. Goods that have been temporar ily 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 authority shall pres cribe 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, whether directly or indirectly imported or bought  from  the  customs  warehouses  and  free  zones  subject  to  the requirements prescribed by the Administration. 
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(b) Should a dispute arise on whether the goods provided for in this chapter are subject to  or 
exempted from customs taxes and duties, the di rector general shall settle such dispute. 
 
 
 
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. Ho wever, 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 by 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 stow age, 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 pers on engaged in the preparation of the customs 
declarations, signing them, submitting them to the customs office and completion of the  customs procedures for clearing the goods for the others’ account. 
 
Article 109  
 
 
Citizens of the GCC Arab States (natural or lega l) have the right to exercise the profession of 
customs clearance upon obtaining a license from the Administration. 
 
 
 
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  Article 110  
 
 
 
Declaration of the goods at the customs office and the completion of their customs procedures, 
whether for importation, exportation or transit, shall be accepted from: 
 
1. The owners of the goods or their authori zed 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 author ization for finalization of the customs procedures 
without any liability on the part of the customs o ffice for 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 general may issue the directions concerning the following: 
 
1. Licensing requirements for customs brokers, 
2. Licensing requirements for the representative of the customs broker, 
3. Licensing procedures for customs procedures and their representatives, 
4.  Obligations of the customs broker and his representative, 5. Requirements for opening the customs clearance offices, 
 
6. The number of customs brokers and their representatives authorized to exercise the 
profession at the customs offices, 
 
7. The customs office(s) wherein the cu stoms brokers are authorized to work, 
 
8. Procedures of dispensing with the cu stoms brokers and their representatives, 
 
9. Procedures of transfer (movement) of th e representatives of customs brokers among the 
customs clearance offices, 
 
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. 
 
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  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 regulation (law ), the director general may impose on the customs 
broker and his representative any of the followi ng penalties commensurable with the offence 
committed:  
 
 
1. Notice (warning). 
2. A fine not to exceed SR 5000 or its e quivalent 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 fina l prevention from exercising the profession.  
 
 
An appeal against the imposition of these penalties may be made before the minister or the 
competent authority within thirty days from the da te of notification.  The resolution (judgment) of 
the minister or the competent authority shall be final.  
 
 
Article 115  
 
The customs broker shall keep a register wh erein he records a summary of the customs 
transactions he has completed for the account of othe rs 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 ex penses 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. 
 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
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  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, are given identification cards indicating the 
nature of their jobs, to be presented upon request. 
 
c. The customs officers shall put on the speci fied official uniform when performing their 
duties if the nature of their job so requires. 
 
 
 
Article 117   
 
 
Civil and military authorities and internal secur ity forces shall render to the customs officers 
any assistance for the performance of their duti es once requested and the customs office shall 
cooperate with the other official entities.  
 
Article 118   
 
 
Customs officers, whose nature of job so requir es, are allowed to carry guns. Such officers are 
designated by a resolution of the minister or the competent authority. 
 
Article 119  
 
 
 
Any customs officer, whose services are terminat ed 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 form the director general according to the 
nature of their jobs. Such incentives and allo wances shall be effective once approved by the 
competent authorities. 
 
 
 
  
 
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  Section XII Customs 
zone  
 
Article 120   
 
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 speci fy the conditions of transportation within this 
zone and he necessary doc uments 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 
he goods and the means of transport and to  search persons under the provisions herein 
and the other applicable regulations (laws). 
 b) The body search of women shall be conducted only by a female inspector. 
 
c) In the event there are adequate ev idences 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 regulations (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 leaving such ports and to stay  aboard until the cargo is unloaded and they may 
inspect all parts of the vessel. 
 
 
 
 
  
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  Article 124  
 
 
 
Authorized customs officers have the right to ge t 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  prohibite d goods are suspected to be concealed, customs 
officers may take all necessary measures to seize such  goods and shall lead th e vessel to the nearest 
customs office. 
 
 
 
Article 125  
 
The Administration may take appropriate actions for investigating (detecting) smuggling inside 
and outside the customs office according to the ru les 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 customs control. 
3.  Beyond the land and maritime (sea) zones when  continuously tracking controlled deliveries of 
the goods that have been witnessed within the z one in a situation that obviously indicates that 
they are intended to be smuggled.  
 
 
Article 127  
 
 
 
Customs officers are entitled to have access to th e papers, documents, records, correspondence, 
commercial contracts and instruments whatsoever, di rectly 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 lega l persons involved in 
customs operations. 
 
Such companies and persons shall keep all the aforesaid documents for a period of five years 
from the date of completion of the customs operations. 
 
 
  
 
 
 
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  Article 128   
 
Customs officers may detain any person suspected to have committed or attempted to commit an 
offence or involved in committin g 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 or smuggling is detected, a seizure report shall be promptly made by at 
least two customs officers and it may be made by one customs officer when necessary.  
 
 
Article 131  
 
The seizure report shall contain the following details:  
 
 
1. The place, date and hour (in le tters and figures) it is prepared. 
2.  Names of the customs officers who had det ected 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 smuggling, 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 h as been recited to the offenders or those involved 
in smuggling who had approved it by signing it or refused to do so. 
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. 
 
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  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 do es not cause it to be null and may not be returned 
to the customs officers who had prepared it unless su ch 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 transpor t whatsoever (i.e. boats, vehicles and animals) 
excluding vessels, aircraft and public buses intende d for the transport of passengers,  unless they 
are specially designed for smuggling purposes. 
 
Article 134  
 
Smuggled goods or those attempted to be smuggled such as narcotic drugs and the like shall be 
disposed of according to the regulati ons and laws in force in the State. 
 
 
 
Chapter III: 
Precautionary measures Part I:  
Precautionary seizure 
Article 135  
 
a.  Customs officers executing the seizure re port may seize the goods - subject of smuggling or 
offence- and the means of concealment and transport thereof and seize all documents in order to prove the offences or smuggling a nd 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 awards issued in this respect. 
 
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Article 136  
 
The director general may, when necessary an d as a guarantee 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 o fficers that impedes seizure of smuggling cases or 
customs offences or the persons involved therein. 
3. When the persons are likely to escape in  order to avoid the fines, penalties or 
compensations that might be imposed. 
 
The authorized customs officers or the security authorities shall issue the arrest order. The 
arrested person shall be presented to the comp etent court within 24 from the time of arrest. 
 
 
 
 
Part II: Preventing the offenders a nd the persons accused of smuggling 
from leaving the country.   
 
 
Article 138  
 
The director general or his authorized representa tive 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 th e 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 gods is sufficient to cover the claimed amounts. 
 
 
 
  
 
  
 
  
 
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  Chapter IV: Customs offences and penalties thereof   
 
 
Article 139  
 
The collected customs fines and seizures provided fo r herein are deemed as a civil compensation to 
the Administration and shall not be cove red by the provisions of amnesty.  
 
 
Article 140   
 
In the event of multiple offences, fines sha ll be imposed on each offence separately and the 
severest fine will be sufficient to if the offe nces are so correlated and cannot be separated. 
 
Article 141   
 
Excluding the smuggling cases provided for in Artic le 142 herein and without prejudice to the 
international agreements in force, a fine shall be imposed on the followi ng offences according to 
the rules of implementation of this regulation (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 under control of customs. 
6. Offences of temporary admission. 
7. Offences of re-exportation. 8. Any other offences.  
 
 
  
Chapter V: Smuggling and penalties thereof  
 
Part I: Smuggling  
 
Article 142  
 
 
 
 
Smuggling is to bring or attempt to bring goods in to or out of the country in contravention to 
the applicable laws without payment of the cust oms taxes “duties, in whole or in part, or 
contrary to the provisions of prohibition or restri ction provided for herein or in the other laws. 
 
  
 
  
 
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  Article 143  
 
 
 
The following actions are particularly deemed as smuggling:  
 
 
1. Not proceeding with the goods to th e first port of entry (customs office). 
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 regulations 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 airports or dropping  goods 
 during flight, subject to the pr ovisions of Article (40) herein. 
5. Not declaring at customs office the in coming or outgoing goods without a manifest 
 including the goods accompanied by passenge rs, 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 c ontents  thereof in a 
situation suspending the duties provided for in Ch apter VII herein  discovered after the goods 
have left the customs office. This provision appli es to  the goods that ha ve  illegally transited 
the country or without finalization of their cust oms 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. Taking 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 a void the provisions of prohibition 
and restriction. 
12. Transporting or acquisition of prohibited or restricted goods without submitting evidences 
supporting their legal importation. 
13. Transporting or acquisition of goods subject to customs authority within the customs zone 
without legal documents. 
14. Not re-importation of the goods prohibite d from exportation that were temporarily 
exported for any purpose whatsoever. 
 
 
 
 
  
 
  
 
 
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Part 2: Penal responsibility  
 
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 pena lly responsible in particular: 
 
1.  Principal perpetrators (offenders). 
2.  Partners in the offence. 
3.  Inciters and interferes. 4.  Possessors of contraband. 5.  Owners of the means of transport used for smuggling, drivers and assistants who are 
proven to be involved 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 3: Penalties  
 
Article 145   
 
 
Without prejudice to any higher penalty provided for in other regulations applicable in the State, 
smuggling and like offences and the attempt to comm it any of them shall be penalized as follows: 
 
1.  If the smuggled goods are subject to high customs taxes “duties”, the 
penalty shall be a fine not less th an double the payable customs taxes 
“duties” and not more than double the value of the goods and imprisonment for not one month but not to exceed one year or either of them. 
2.  As for the other goods, 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. 
3.  If smuggled goods are exempted 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 an 
imprisonment for not less than six months, but not to exceed three years or either of them. 
 
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  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 trans portation and the tools and materials used 
in smuggling, excluding public means of transportation such as ships, aircraft, trains and public vehicles, unless they 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 th em 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 b een 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 no tified of the imposed fine by a written notice 
through the competent authority. The offender shall pay the fines within fifteen days from 
the date of notification. 
 
  
 
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  Article 149   
 
 
The penalization orders (judgments ) referred to in the preceding Article may be appealed before 
the minister or the competent authority during th e same period and the minister or the competent 
authority has the right to confirm, amend or cancel the penalization order.  
 
 
Part 2: Prosecution of the smuggling offences  
 
Article 150   
 
 
The action of smuggling offences may be rec onsidered only upon wr itten request from the 
director general. 
Part 3: 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 custom s  penalties and fines provided for in 
article 145 herein. 
 
b). The Manual (directory) of the conciliatory settlements is issued by a 
resolution of the minister or the competent authority.  
 
 
Article 152   
 
 
Subject to the provisions of Article 150, the concilia tory 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 twice 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. 
 
 
 
 
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  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 prohibited 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 of transport together with the tools and 7.  Materials used for smuggling excluding th e public means of transport such as vessels, 
aircraft and cars unless these are designed or rented for this purpose.  
 
 
Article 153   
 
 
The action shall be relinquished when a reconcilement is reached.  
 
 
Chapter VII: Liability and Joint liability   
 
 
Article 154   
 
 
a. The offence and the consequent civil liab ility 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  proved 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 infr inging or smuggled goods are kept shall be held 
responsible.  Whereas investors 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 infri nging or smuggled goods and that they have not a  
direct or indirect interest them. 
 
  
 
  
 
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  Article 156   
 
 
Guarantors (sponsors) shall be responsible, within th e limits of their guarantees, for the payment of 
customs taxes “duties”, fines and the other amounts payable to the Administration by the principal 
payers.  
 
 
Article 157   
 
 
Customs brokers shall be fully responsible for the offences and smuggling offences they or their 
authorized employees commit in the customs declara tions. But they will not be responsible for the 
undertakings submitted in the customs declarati ons 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 their 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- fro m their own shares of the heritage- of  the fines 
payable by the dead offenders from 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 jo intly paid by the offenders or the persons liable 
for smuggling according to the applicable practic es 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. 
 
 
 
 
  
 
  
 
  
 
 
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  Chapter VIII: Rules of Court Proceedings   
 
 
Article 161   
 
 
First instance customs courts may be establis hed at both the Administration and the customs 
offices according to the legal instru ment applicable in each state.  
 
 
Article 162   
 
 
The first instance customs court sha ll have the following jurisdictions:  
 
 
1. Hearing all smuggling offences and the like. 
 
2. Hearing all offences committed against the provisions of this regulation 
      (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 regulation (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  cust oms court may be appealed before an ad hoc appeal 
court formed under the legal instru ment applicable in each State.  
 
 
b). this court shall try the actions brought to  it and shall take its decisions by majority. 
 
c) The period of appeal shall be thirty days from the date of notification of the first 
instance judgment by default and from the da te of pronouncement of the judgment in 
presence of the litigant. 
 
 
 
 
  
 
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  Article 164   
 
The judgments passed by the court of appeal shall be final.  
 
 
Article 165   
 
Collection and penalization orders and the judg ments passed in the customs matters shall be 
carried out by all means of execution, after havi ng the final status, on the movable and unmovable 
property of the offenders. 
 
The minister 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 considerab le 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 a nd the justifications of sale without 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 owner 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 cust oms warehouses, those existing in the yards or wharves 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. 
 
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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 unknow n and which have not been claimed within 
the storage period specified by the direct or general or the competent authority.  
 
 
Article 169   
 
The Administration assumes no responsibility for an y damage caused to the goods being sold 
under the provisions herein unless it is proved th at the Administration had committed an obvious 
default in the procedures of the sale process.  
 
Article 170   
 
a. The sales provided for in this Section shall be  effected in an aucti on according to the rules 
and conditions prescribed by the minister or the competent authority. 
 
b. The goods, items and the modes of transpor t 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 proceed s of selling the goods, the importation of 
which is permitted on the day of sale, af ter deducting the sums provided for in 
paragraph (a) herein, shall be deposited with the Administration as a deposit. The 
persons concerned may claim re fund within one year from th e 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 af ter deducting the taxes,duties and costs. 
 
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  Article 172   
 
The share of the treasury from the proceeds (amo unts) of the customs fines and the value of 
the seized or abandoned goods and means of trans port are determined at 50% after deducting 
the customs duties taxes “duties” and costs.  The remaining  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.  
 
 
Section XV   
 
Privilege of the Customs Administration   
 
 
Article 173  
 
 
 
For the purpose of collecting the customs taxes “du ties” 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 prope rty 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 tax es “duties” paid since over three years shall not 
be accepted. 
Article 175   
 
The Administration may destroy the records, r eceipts, declarations and the other customs 
documents upon the expiry of five years followi ng finalization of the customs procedures. The 
Administration shall not be bound to present such docum ents or give copy thereof to any entity upon 
the elapse of that period. 
 
 
 
 
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Article 
176 
 
 
 
Without prejudice to the other regulations and laws in force in the State, prescription period for the 
Customs Administration, if not prosecuted, shall be as follows: 
 
15 years for the following two cases : 
 
a). Acts of smuggling and the like effective from the date of committing the offence. 
 
b). Execution of the smuggling judgments and th e 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 fins and the confiscations imposed on the offences with effect 
from the issuance of the penalization order. 
 
c). Collection of the customs taxes” dut ies”  and the other charges that have 
not been collected  due to a mistake by the customs office effective from the date of  
lodgment of the customs declaration .  
 
 
Section XVII Final Provision
s 
 
Article 
177 
 
a).  the director general  may exclude the ministries, government departments and the 
official public  organizations from certain procedures to facilitate their duties. 
 
b). The director general my sell the confi scated or abandoned goods and materials to 
the interested ministries, government departments and official public 
organizations, if they express their need for them, at the prices he deems appropriate, or may abandon them free of ch arge  by a resolution by the minister 
or the competent authority .  
 
Article 
178  
 
The Financial and Economic C ooperation Committee of the GCC Member States shall approve 
the Rules of implementation of this regulation “l aw’ which will be issued according to the legal 
instrument of each State. 
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Article 179  
 
The Common Customs Law (law) of the GCC Member States shall, when implemented, 
supersede the customs regulations and laws in force in the Member States within the limits 
of the constitutional rules and regulations and the basic laws in force in each State without 
contradiction therewith. 
 
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
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  Rules of Implementation 
 
Of 
 
The GCC Common Customs Law   
 
  
 
 
CHAPTER (I)  
 
 
Value of goods for customs purposes  
 
 
Pursuant to the provisions of Article (26) of the GCC Common Customs Law, the Value of Goods for Customs Purposes shall be determined as follows:  
 
Article 
(1)  
 
Principles for determining the Value for Customs Purposes as set forth in the Rules of 
Implementation of the GCC Common Customs Law  
 
I. General Provisions  
 
1.  The importer has the right to withdraw his goods upon submitting sufficient  guarantee in 
form of bank or cash deposit, bank guara ntee, 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 custom s value, without penalty, as following:  
a. At the administration level: 
i. Director, customs port, 
ii. Valuation adjudication committee b.
 An independent judiciary body. 
 
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. 
 
4.  If the declared value is stated in a fo reign currency, it should be converted to the 
domestic currency on the basis of excha nge rate announced in bulletins issued by 
the competent agencies.  The registration date  of customs declaration shall be the date 
approved for currency exchange rate. 
 
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  5.  In determining the customs value of  the imported goods, no discounts or deductions 
made after the date of importation in th e payable or actually paid price will be 
considered.  Also, no credit balances pertaining to prev ious consignments will be 
considered at the date of customs declara tion registration of the goods being valued at 
the customs offices. 
 
6.  This Article 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 provisions 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 c ountries when applying the Article in 
question. 
 
(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 information carrier media such as the  magnetic  tapes  or  the  like, containing data or computer software re corded thereon, the value shall be assessed 
on the basis of  value  of  such  media  only  without   determining  the  value  of information recorded thereon. 
 
9.  Upon written request, the importer has the right to an explanation in writing from the 
customs administration as how the customs value of the imported goods was determined. 
 
II. Definitions:  
 
Taking into account the text of Article 2 of the GCC Common Customs Law, and for  the 
purpose of implementing this Article to de termine the value for customs purposes, the 
following words and expressions mean: 
 
1.  “Price actually paid or payable” means the total payment made or to be made by the 
buyer or under his knowledge, to or for 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 made by way of letters of credit or negotiable instruments.  Payment 
may be made directly or indirectly such as se ttlement by the buyer, in whole or in part, 
of a debt owed by the seller. 
 
2.  “Imported goods being valued” means the goods being valu ed for customs purposes. 
 
 
 
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  3.  “Packing  costs”  means  the  cost  of  all   containers  (excluding instruments  of  
international traffic) and coverings of what ever nature and of packing, whether for 
labor or material, used in packing th e  for shipment to the GCC States. 
 
4.  “Produced” includes grown, manufactured, mined (raw material), the services, or 
intellectual products. 
 
5.  “Related persons” means:  
(1) legally recognized partners in business;  
(2) officers or directors of one another’s business; 
(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 indirect ly 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 respects, including  physical 
characteristics, quality and trade reputation to, and produced in the same country and by the same person as, the goods being va lued. Minor differences in appearance 
that are ineffective in the value, would not preclude goods which  otherwise 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  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 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 an d capability of performing  the same 
functions, and commercially interchangeable  with the goods being valued.  The  
quality of the goods, their trade reputation,  and existence of a trademark will be 
factors considered to determine whether the goods are similar.  If similar goods 
produced by the same person 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 va lued, may be treated 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 according to the Clause 
IV.B.1.iv.(d) of this Article. 
 
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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 not  related to the persons from whom they 
buy such goods, at the first commercial leve l after importation in the application of 
any of the Clause VI. 
 
9.  “Goods of same class or kind” means the goods which fall within a group or range 
of goods produced by a particular indus try 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 pa rticular time, regarding the following:  
(1) resources and obligations that should be recorded as assets and liabilities;  
(2) changes in assets and liabiliti es 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 information that helps in verifying the following:  
(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 VI I of this Article considered as being a 
profit or general expenses. 
 
III.  Methods of Customs Valuation:   
A. Imported goods will be valued on the basi s, and in the order, of the following:  
(1) The transaction value pr ovided for in Clause IV;  
(2) The transaction value of identical goods  provided for in Clause V (a), if the 
transaction value cannot be determined according to Clause IV; 
 
 
 
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  (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 Cl ause VII, if the deductive value cannot be 
determined; or  
(6) The flexible method provided for in Cl ause 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  imported  goods cannot be dete rmined 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. 
 
IV. 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 payabl e when the goods are sold for export to the 
GCC States, according to the provisions 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 the GCC   Common Customs Law, restrictions that  limit 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 with respect to the goods being valued; 
 
3. that no part of the proceeds of any sub sequent resale, disposal or use of the goods 
by the buyer will accrue directly or indir ectly to the seller, unless an appropriate 
adjustment can be made according to the provision of Clause (B) under this method; 
 
4. that the buyer and seller are not related acco rding 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 provisions  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 
  
 
 
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 b. if the transaction value of the imported goods closely 
approximates to one of the test values noted below:. 
 
i. a transaction value of identi cal 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; 
 
iii. a customs value of identical or similar goods as determined 
under the Clause VII:  Computed Value 
 
- When applying Clause IV.A.4.b, the diffe rence 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 account Clause IV.B. of this Article. These test values may not be used as a substitute value. 
 
B. Additions to the price actually paid or payable (Adjustments):  
 
1. In determining the customs value ac cording to this Clause IV, the following 
costs will be added to the extent incurre d by the importer but are not included  
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 labor 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 thereof 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, molds 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. 
  
 
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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 payable; 
 
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 Article. 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 identified 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;  
b. transportation, 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;  
 
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  2. credit balances with the bu yer in favor 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 tr eated according to the Anti-Dumping 
Agreement. 
 
D.  If it is found that there are reasonable gr ounds to doubt valid ity of the submitted 
documents or the data contained therein, the importer should be notifie d 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 do es not provide  evidence acceptable to the 
customs port within such period, and the cust oms value could not be determined according 
to the provisions of Clause IV of this Ar ticle, the value must then be determined 
according to the methods specified in Claus es V to VIII sequentially until a customs value 
according to a practical method is established. 
 
 
V. The transaction value of Identical and Similar Goods:  
 
A.  the transaction value of identical go ods already accepted as a transaction value 
according to Clause IV of this Article, sold fo r export to the GCC States at or about the 
same date as the export of the goods bei ng 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 
different 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  adju stment according to Clause II.11. of this 
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 va lue for identical goods is found, the lowest 
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 alr eady accepted as a transaction value according to 
Clause IV of this Article,  sold for export 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 attr ibutable to  commercial level and/or to quantity, based on 
objective data and demonstrated evidence which establishes reasonableness of  the 
adjustment according to Clause II.11., whethe r the adjustment leads to an increase or 
decrease in the value, taking in to account the difference in the costs mentioned in  Clauses 
IV.B.1. of this Article. If more than one tran saction value for similar goods  is found, the 
lowest of such values shall be used as th e customs value for the goods being valued, 
according to Clause V.B. of the Interpretative Annex. 
  
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  VI. Deductive Value:  
 
1.  The  customs  value  shall  be  based  on  the  unit  price  at  which  the imported  
goods  or  identical  or  similar  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 in corporating in production any of the assists 
mentioned in Clause IV.B.1.iv of this Artic le, subject to deductions for the following:  
a. either the commissions (usually paid or ag reed 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 insu rance after importation and associated costs 
in the GCC States, provided that such costs are not included as general expenses according to Clause (a) above;  
c. customs taxes “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 accordi ng to this Clause in case the importer records 
them within the general expenses ment ioned in Clause (a) of this method. 
 
2.  If neither the goods being valued nor identical nor similar imported goods are 
sold 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 quan tities sufficient for determination of the unit 
price at the first commercial level, in the G CC States’ local market, in the  condition as 
imported at the earliest date after  the  importati on  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 un it 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 defi nition in Clause II.5 of this Article, due 
allowance being made for the value adde d by  such processing, and the deductions 
provided for in Clause 1 of this method.  
 
  
VII. Computed Value:  
 
1.  If the customs value could not be determined according to Clause VI of this 
Article, or in case the importer requested app lication of the computed value 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:  
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   (a) the cost or value of materials 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  
examination, 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 value  under  the  provisions  of  this  Article  in  another  country,  with 
agreement of the producer, provided a suffi cient advance notice is given to the 
government of the country where the inve stigation is to take place, and the 
government does not object to it. 
 
VIII. Flexible Method:  
 
(a) If the customs value of the imported goods cannot be determined under the forgoing  
methods mentioned in Clauses IV  through VIII  of this Article, the provisions of the 
same Clauses shall be applied once again seque ntially with  reasonable flexibility, until 
the customs value according to the first possible method is arrived at. 
 
(b) If the customs value could not be arrived at by applying those methods even flexibly, 
reasonable methods not inconsistent with th e principles and general provisions of the 
Customs Valuation Agreement (CVA), the Article VII of the GATT 1994, on the basis of data available anywhere in the GCC St ates 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 in the domestic market of the country of exportation; 
 
iv .  the production costs other than the computed value determined 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. 
 
 
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  (c) Upon request, the importer has the right to be informed in writing of the methods  
adopted  for  determining  the  customs  value  according  to provisions of this  Clause. 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 through 
the same or other port of entry. This procedure is only intended for information purposes, and does not affect or replace pr ocedure of objection and appeal provided 
for in this Clause. 
 
IX. The following Interpretative Annex is to be considered as 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 balance 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 va lue, 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 negotiati ons, or may be arrived at by 
applying a particular formula. 
 
2. “Payable” means price of goods not paid at time of determination 
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 of 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 method for his debt owed by the seller. The indirect payment will not include 
activities undertaken by 
 
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 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 determining 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 determination 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 
importation 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 particular 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 specified 
quantities; or the price of the importe d goods is dependent upon price/s at 
which the importer shall sell 
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 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 go ods is to be subjected to further 
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 information 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 in formation from the importer. If the 
customs 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 consiste nt with normal 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 adeq uate to ensure recovery of all costs 
plus a profit which is representative of 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 difference in value is commercially 
significant; and 
 
(d) whether the difference in valu e is attributable to internal 
 
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 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, diffe rences between the declared 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 appr oximate 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 th e customs has sufficient information 
to be satisfied, without further deta iled inquiries, that one of the test
values is approximate to the declar ed 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 repr esentation 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 
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  addition shall be only apportioned to the amount reduced by 
the importer (buyer).  
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 trans portation costs thereof, to the  
production place of the goods being valued, including non-refundable  
duties and  taxes, shall be determin ed 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, molds, or similar items used  in 
the production of the imported goods, acquired  by  the  buyer  from  an  unrelated  seller,  the valu e 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 :  An importer of  the GCC states 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 :  An  importer  of the  GCC  states  supplied molds  
free  of  charge  to  foreign  producer  (exporter). The molds  were necessary to manufacture goods for the GCC importer. The GCC importer had some molds manufactured in a GCC State and others manufactured 
 
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 outside GCC States. 
 
Question : Should the customs value of the goods include 
the value of the molds?  
Answer : Yes. The value of the molds 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 appropr iate to the circumstances  and 
according to generally accepted accounting  principles.  The method of apportionment 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 undertakings 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 several countries, the method of apportionment will depend upon the documentation submitted by the importer.  
Example : An importer provides the producer with a mold to be 
used in production of the imported goods, and contracts to buy10,000 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 generally 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  a nd copyrights, and shall be added to 
the customs value.  
2. The price actually paid or payable for the imported goods 
 
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 being valued shall not include the charges for right of 
reproduction. It relates to the following goods: originals or copies ofartistic or scientific works, originals or copies of models  and industrial  drawings,  model  mach ines  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 ad ded 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 goo ds and partially 
on other factors which have nothing to do with the imported  goods (such as when the royalty  cannot 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 b ased only on the imported goods and 
can readily be quantified, an add ition 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 SR56,000 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 as 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 no t 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 bedistinguished 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; 
 
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2. that the financial agreem ent 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  advertisem ent, preparation of showrooms, and
participation in the commercial exhibitions. 
 
IV.C.2.   
Credit  balances  with  the  seller  in  favor  of  the  importer, included in 
the price actually paid or paya ble for the goods being valued, as
compensation for a previous consignment or business transaction. Since balance adjustment for previous cons ignments 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 goodsbeing valued, from the same manufacturer, at the same  commerciallevel of the importer, and same qua ntity 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 level;  
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. 
 
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 shall be adjusted to take acc ount 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 
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 Lists containing 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 re ferring to that price list, through
applying an appropriate value  according to the imported goods
being valued. This does not require that a transaction 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 provisionsof 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 foun d, 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 ofproduction, factory clearance, or end-of-the-season sales, etc.), then 
the lowest of 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 qua ntity of the goods being valued. 
 
2. Where no such value is found, the transaction of similar goods 
according 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  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.  
4. If there is difference in the goods being valued and the similar
goods in the quantities, commercial level and costs mentioned in 
Clauses IV.B.1. of this Article, th e transaction value of similar goods 
shall be adjusted to take into 
 
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 account such differences whether the ad justment leads to an increase or 
decrease in the value,  based on demonstrated evidence which establishes
reasonableness and accuracy of th e adjustment, such as authorized
price lists containing  values reflecti ng different  levels and quantities;  
Example : If the imported goods being valu ed 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   acco rding  to  the  quantities  then  an 
adjustment can be reached by re ferring to that price list, through
applying an appropriate value  acco rding 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  through  sales  at  other quantities.  In  absence  of  such  an  objective  measure, however, the
determination of a customs value under the provisions of the similargoods  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 ofsale 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 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  sold  in  different quantities, the unit  price to be used will be the price at which the greater number of the units issold.  
Example 1 : Goods are sold based on a price list which grants  
favorable unit prices for purchases made in larger quantities: 
 
Sale 
quantity Unit price 
(SR) 
Number of sales Total 
quantity 
sold at 
each 
price 
1-10 unites 100 10 sales of 5 units
5 sales of 3 units 65 
11-25units 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 
 
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VI.1.a   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. 
 Sales:  
Sale quantity (unit) Unit price (SR) 
40 units 100 
30 90 
15 100 
50 95 
25 105 
35 90 
5 100 
 
Totals: 
 
    
  
 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 90 Riyals. Sale quantity sold (unit) Unit price (SR) 
65 units 90 
50 95 
60 100 
105 25 
VI.1.a 1. In case the goods being valued ar e 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 being 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 ofprofit usually added by the importer to the selling price in the localmarket 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 amount 
will be based on relevant informa tion other than supplied by or on 
behalf of the importer.  
3. The profit and general expenses should be taken as a  G/VAL/N/1/BHR/2 
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 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  expe nses,  it should  be used. This 
deductible figure should  be de termined on the basis of the
information supplied by or on  behalf  of  the  importer.  The  general 
expenses  shall include direct and indirect costs of marketing theparticular goods.  
4.  “Goods of same class and kind”  are goods falling within a group or
range of goods produced by a partic ular industry or industrial sector, 
including but not limited to, identical goods and similar goods,
whether imported from the same country of production orexportation  of the goods being valued, or from another country.
Whether  certain goods are “of same class or kind” must bedetermined 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  of  the 
imported  goods  is  lost,  the  value  added  by processing can be 
determined accurately  without unreasonable difficulty, provided  thatit is based on the basis of objective and quantifiable data  related tocost of such work. Acceptable industry formula, recipes, 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 unjustifie d. 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 determined 
on the basis of information readily  available in the country of 
importation. In order to apply the computed value method fallingunder Clause VII, it may be necessary to examine the costs ofproducing the  goods being valued an d 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 customsthe necessary costing, and to provi de facilities 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  goodsbeing valued, supplied by or on behalf  of  the  producer  and  where 
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 
 
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 so requests, of the source of such  information, the data 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 ClauseIV.B.1.iv. of this Interpretative Annex.  Taking into account thatthe costs of the elements speci fied 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 obtainingsuch elements. No cost or value of  elements referred to in this 
Clause shall in any case be counted twice. 
 
VII.1.b.   
1. The amount for profit and gene ral expenses should be taken as a 
whole. If the producer’s profit figure is low and  general expenses  are  high,  those  figures  taken together may beconsistent 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 tothe GCC countries, in that case, the amount for profit and generalexpenses may be based on objective data, according to Clause 
II..11 of this Article, other than th at 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 productionand sale of the goods for export, not included in Clause VII.1.a of 
this Article. 
 
4. While  determining  usual  prof it  and  general  expenses according 
to  the  provisions  of  Clause  VII.1.b  of  this Article, thenarrowest  group or range of the goods of same class or kind willbe  examined including sales of identical or  similar goods from same country of production of th e goods being valued, which are
sold for export to the GCC St ates,  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. 
 
VIII.(a)   
This Clause does not provide for a specific method of valuation.  
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  Rather, it requires that the customs valu e 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 methods:   
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 purposes and provisions of the Customs Va luation  Agreement.  If  the   
customs  value  could not determined using such methods, the customs value may be determined us ing other logical methods provided 
that:  
1. such methods are not prohibited under Clause VIII.B; 
and  
2. such  methods  are  consistent  w ith  general  principles and provisions 
of the CVA. 
 
Example :  A consignment containing an equipment leased for 
specified period, for instance, of th ree 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 customs value of such equipment could not be determined according to the methods specifi ed 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 
value; no identical or similar equi pment 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 
VII 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;   
 
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  c. Simple and equitable criteria;  
d. Clear and neutral systems;  
e. Consistent 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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  CHAPTER (II)  
 
 
Temporary Admission  
 
Based on  the  provisions  of  Articles  (89  –  94)  of  the  Common Customs  Law of 
the GCC Member 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 tax es “duties” , if any, shall be secured by a 
bank or cash guarantee as circumstances may require and at the discretion of the 
director general. 
 
(c) Temporary admission  status  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”  accordi ng  to  the  procedures prescribed by the 
director general.  
 
 
Temporary admission of heavy machinery and equipment   
 
 
Article (3)  
 
a) Temporary admission of the heavy machinery and equipment, which are not 
available in the markets and are required for the completion  of   projects   or  the  conducting  of  practical  and scientific t ests relating to those projects, shall be 
granted for a period of six months renewable for similar periods 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 government or an  investment project the completion of which requires the admission of such  machinery and equipment for this purpose. 
 
 
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  Article (4  
 
a) Temporary admission shall not be grante d to the spare parts, tyres,  batteries 
and other materials that can be consumed 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) t h e  use of the machinery and equipment shall be limited to the completion of 
project for which they have been admitted.  
 
 
Article (5)  
 
The entity applying for the temporary ad mission 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 projects being completed; and 
2. make a customs declaration according the form approved for  temporary  
admission  and  state  all  information  and attach  the   documents  required  under  this  Law.  The de claration shall be  subject to all 
customs procedures; and 
3. submit a bank guarantee or cash depos it equivalent to the amount of the 
customs taxes “duties” payable on the registration date of customs declaration for placing them under the temporary admission  procedure. 
 
 
 
 
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  Temporary admission of goods for finishing and re-exportation   
 
 
Article (6)   
 
 
Foreign goods shall be temporarily admitted in to the State with the suspension  of the 
customs taxes “duties” levied on them for the purpose 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 ty pes 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 covere d by an International Passage Carnet 
(IPC); and 
2. Three months for the vehicles not covered by an International Passage 
carnet to be renewed for a simila r period if the person 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 
2. The vehicle’s licence shall be valid and shall not have export plates;  and 
 
 
 
 
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  3. Production of an insurance from an insurance company 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  shall 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 fo llowed when a vehicle is admitted under 
the IPC:  
 
 
1. The number, date and period of the tem porary 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 universities 
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. 
 
 
 
 
  
 
 
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  Article (12)   
 
 
The customs office shall grant temporary admission to vehicles according to the provisions herein.  
 
 
Article (13)   
 
 
a. The temporary admission permit shall cont ain all the information relating to the 
vehicle and the person concerned (i.e. plates No., chassis No., engine No., make and colour of vehicle a well as the name of the person concerned, his nationality 
and passport number). 
b.  The procedure of the temporary admi ssion of foreign vehicles shall terminate 
when the vehicle leaves the country via one of the customs 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. 
 
  
 
CHAPTER (III) 
Re-exportation of the Goods 
 
 
 
Pursuant to the provisions of Article (95) of the GCC Common Customs Law, procedures, 
conditions and guarantees when re-exporting the foreign goods ente ring the country shall be as 
follows:  
 
 
Article (14)  
 
Foreign goods, imported into th e country without payment of the customs taxes “duties”, may 
be re-exported. Such goods include the following: 
 
1. Imported goods that were not withdrawn from the customs stores.  
 
 
2. Imported goods, intended to be re-e xported, which have been temporarily 
released against cash or bank guarantees covering 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. 
 
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  4. Goods deposited at warehouses whic h 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 are made at the discretion of the director general. 
b) The goods may be re-exported by a pe rson other than the importer subject to 
the approval of the customs office. 
c)  The number of the customs declar ation under which the goods have been 
imported 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 Customs Law of the GCC Member 
States, the customs taxes “duties” levied on the foreign goods re-exported to  outside of the GCC 
Member States shall be refunded (drawn back) according to the following controls: 
 
1.  The exporter “re-exporter” shall be  the person in whose name the foreign 
goods were imported or any ot her 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 fi ve thousand US dollars (or its equivalent in 
the local currency). 
3.  A) The foreign goods “commodity” sha ll be re-exported within one  Gregorian 
year from the date of payment of the custom s taxes “duties” B) The claim for drawback 
shall be made within six Gregorian m onths 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 single 
consignment may be re-exported in part ship ments once it is definitely proven for the 
customs administration that such shipments c onstitute a part of the same consignment. 
5.  The claim for drawback shall be for fore ign goods that were not locally used after 
importation from outside of the GCC Member States and at the same condition when imported. 
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  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 Member 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. 
10. These controls shall be reviewed after three years of application or whenever 
necessary at the request of a member Stat e, 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 
regulations, procedures and laws 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   customs  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 th e 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 signed by the competent 
customs officer at the custom s 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 he free zone. 
3.  a discharge certificate approved by the competent authorities at the country  
of destination certifying that the re-expor ted goods have been imported into it. 
 
 
 
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CHAPTER (IV)   
 
Exemption of personal effects and gifts  accompanying the passengers  
 
 
 
Pursuant to the provisions of Article 103(b) of th e GCC Unified 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 p assengers 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 satis fied to qualify to this exemption: 
 
1.  Effects and gifts shall be of a pers onal nature and in no n-commercial quantities. 
2.  The passenger shall not be a frequent traveler 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 exempt ion 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 Unified Customs Law and the national legislation of each Member State. 
 
 
  
 
  
 
  
 
 
 
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  CHAPTER (V)   
 
Exempting the imports of the philanthropic societies 
(charities) from he 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 tax es “duties”  shall be as follows:  
 
 
Article (22)  
 
a)  The charity benefiting 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 tax es “duties”, imports of the charities shall: 
 
1.  be of a nature 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 th e 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 cons umed or used materials and supplies that 
were exempted from customs taxes “duties”,  the charity shall apply in writing to 
the customs administration to obtain approval of the sale after conducting the necessary inspection thereof.  
 
  
 
 
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  Article (25)  
 
The competent government authority shall addr ess the customs administration for exempting the 
imports of charities from the customs taxes “duties” on a case by case basis.  
 
 
  
 
CHAPTER (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 custom s office indicating the following: 
 
1.  name of the person concerned 
2.  The distinguishing elements of the goods 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 z one shall be prohibited except at the 
places specified by the customs office. 
B) Normal requirements of goods which ca n 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 cu stoms zone shall be deemed as smuggling. 
 
 
  
 
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  CHAPTER (VII) 
Fines imposed on the customs offences 
 
 
 
Without prejudice to the provisions of Articles 142, 143, 144 and pursuant to the provision of 
Article 141 of the Common Customs Law, the rule s for imposing fines on the customs offences 
shall be as follows:  
 
 
Article (29)   
 
 
A fine not exceeding twice the amount of the cu stoms taxes “duties’ and not less than their 
equivalent amount on the following offences:  
 
 
1.  The customs declaration (exportation, re-e xportation) that could lead to benefiting  
from  drawback or finalization of the te mporary admission procedure for temporarily 
admitted goods without a legal 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  hem without the approval of the customs administration and the payment of the 
customs taxes “duties” imposed under Articles 99, 100 and 104 of the Customs Law and 
the provisions of these Rules. 
4.  Disposing the goods on which the cust oms taxes “duties” have been suspended 
for  purposes other than hose for which hey ha ve 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 Member States on the 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 resp ect to value, type, number, weight , 
measurement or origin that may lead to th e loss of the customs taxes ‘duties’ through 
misdeclaration according to the provisions of Article (47) of the Law. 
3.  Alteration of the routes specified in th e transit declaration without the consent of 
the Administration according to the provisions of Article (710 of the Law).  
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  4.  Non-presentation of the manifest of the go ods or the availability of more than  one  
manifest for the goods according to the provisions of Articles 30/ (a), 36 (a) and (38) of the Law. 
5.  Submission of the required certificates for the discharge and settlement of  the   transit,   
temporary  admission  or  re-export  declara tions  in contravention to the conditions 
prescribed by the director general under the provisions of Article (68) of the Law. 
6.  Contravention of the rules and conditio ns prescribed by the director general for  
depositing the goods at the warehouses according to the provisions of Articles (74, 75) of 
the Law. 
7.  Anchorage of vessels, landing of aircrafts or stopping of other means of transport at  places 
other than those prescribed by the Administra tion according to the provisions of Articles 
(20, 21, 22, 37) of the regulation” law”. 
8.  Departure of vessels, aircrafts and other means of transport from the ports or the  
customs boundary without authorization by the customs administration according to the 
provisions of Article (41) of the Law. 
9.  Transfer of goods from one means of trans port to another without the consent of  the 
Administration according to the provisions of Articles (32, 45) of the 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 the regulation” Law”. 
11. Impeding  the  customs  officers  from  carrying  out  their  duties  and exercising their 
right of inspection, auditing and reviewing acco rding to the provisions of Section XIII of 
the Law. This fine shall be imposed on ev ery individual involved in the offence. 
12. Not keeping records, documents and the li ke for the period prescribed in Articles  
(115, 127) of the Law. 
13. Breaking the sealing or removing the customs seals from goods.  
 
 
Article (31)   
 
 
A fine not less than five hundred   Saudi riya ls (SR 500) and not exceeding one thousand riyals 
(SR 1000) or its equivalent in the other currencies of the GCC Member States on the following 
offences:  
 
 
1.  Non-submission of the manifest or  the other documents at importation 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 the Law. 
2.  Not having the manifest endorsed by th e customs authorities at the port of shipping 
in  the cases so requiring according to the provisions of Article (31) of the Law. 
3.  Declaring several sealed packages combin ed in any way in the manifest or the like 
document as being  a single package according to the provisions of Article (44) of the Regulation (Law) subject to the -  G/VAL/N/1/BHR/2 
 Page 95 
 
 
  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 which 
is contrary to the provisions of the Arab and international posta l agreements and the 
national legislations according to the prov isions of Article (40) of the Law. 
6.  Any other contravention to the provisions of the ministerial resolutions and the 
instructions issued under the Law.  
 
 
Article (32)  
 
A fine amounting to two hundred Saudi riyals (SR 200) or its equivalent in the currencies of the 
other GCC Member States for each day of delay pr ovided 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 office to 
which the goods are dispatched after expiry of th e 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 Member States for each day of dela y of the public transport vehicles and taxis 
entering the country provided that such fine sh all not exceed one thousand Saudi riyals (SR 1000) 
or its equivalent in the currencies of the other GCC Member States.  
 
 
Article (34)   
 
 
A fine amounting to one thousand Saudi riyals (SR 100 0) or its equivalent in the currencies of the 
other GCC Member States for each week of delay or a fraction of the week provided  that the fine shall not exceed twenty percent (20%) of the va lue 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 sh all be subject to a fine of twenty Saudi riyals 
(SR 20) or its equivalent in the currencies of  the other GCC Member States for each day of 
delay provided that he fine shall not exceed ten  percent (10%) of the price of the tourist car 
after expiry of the period prescrib ed in the temporary admission licence. 
 
 
  
 
  
 
  
 
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Explanatory Notes  
To the Common Customs Law  
Of the Cooperation Council 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 designed to meet the provi sions relating to the customs affairs and regulate 
the relationship between  customs and the public.  The  CCL contains provisions and procedures for 
the  importation, exportation and transit of goods across the territories of th e GCC Member States.  
This CCL also prescribes the rights of the employees of those administrations. 
 
The CCL aims at protecting the society through th e control of the entry and exit of individuals, 
goods and means of transport. 
 
This CCL falls into 17 sections comprising 179 articles and is deemed the legal instrument 
regulating the duties of the customs offices and spec ifying 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 transacti ons 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 regulations 
support the trend to make the GCC Member Stat es an international market, encourage their 
national industries and projects  and extend the scope of their transactions and increase their 
exports. 
 
This CCL also  contains provisions specifying  the stages of the clearance of the  goods,   
exemption  from  customs  taxes  “duties”,  conditions  of  the temporary 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 additio n to the provisions governing the  establishment 
of the free zones and duty-free shops and controlli ng the activity of the customs clearing agents 
(brokers) and the conditions of obtaining the licen ces for practising the customs clearance job and 
treatment of the customs offences and smuggling matters.  
 
 
This CCL employs the latest customs regulations an d laws of the GCC Sates and the Arab States in 
addition to the privacy of the GCC Member States a nd the nature of the role of customs therein, and 
the WTO Agreement  as well as the WCO Conventions. 
 
 
 
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  The CCL was adopted at the 20th  Session of the Supreme Council held in Riyadh,  Kingdom of 
Saudi Arabia in December 1999 and it was agreed to implement it as a  reference Regulation “Law’ for one year from the date adopted and that it would be reviewed 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 customs admi nistrations of the Member States by 2000. 
 
Due to the completion of the requirements of implem entation and the review of the  comments  of 
the Member States and finalizing the prepara tion of the explanatory notes and Rules of 
Implementation thereof, the Secretariat General proposed at the 21
st Session of the Supreme Council 
that the reference implementation should be extended for one more year and the Supreme 
Council, at its 21st Session held in Manama, Bahrain in December 2000, decided to extend the 
reference implementation for one more year provi ded  that it would be obligatorily implemented 
by all customs administrations of the GCC Member States in January 2002.  Having a Common Customs  Law of the GCC  Member States aims at unification of  the customs 
procedures in all customs administrations of the GCC Member States and  the  enhancement of 
cooperation in the customs field and regulation of  the relationship between these administrations 
and the community of traders in the GCC Member St ates so as to ensure unification of the customs 
procedures in all the GCC Member States. This Law regulates the relationship between the customs administrations and the other government al administrations in the Member States and 
enhances Intra-GCC trade and foreign trade, which is  one of the pillars of the customs union of the 
GCC Member States. 
  
 
Chapter (I) 
 
 
Definitions and General Provisions 
 This Section deals with the definition of this  regulation as the “Common Customs Law of the 
Cooperation Council for the Arab States of the Gu lf” and contains definitions of the  terms 
provided for therein. It provides that the provisi ons of this Law shall apply to the territories 
subject to the sovereignty of the State and its terr itorial waters and allows the establishment of free 
zones thereon and that all goods entering or leavin g the State shall be subject to the provisions of 
this Law. Article (5) entitles the customs admi nistration 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 th e customs offices, this shall be issued by a 
decision of the competent minister to whom the customs administration reports, and the same applies to the designation of the compet ences and office hours of the customs offices. 
 
 
 
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  Article (8) provides that customs procedures sha ll be carried out only in the customs offices; 
these procedures mean those app lied when the goods enter the cu stoms office. This Article 
excludes the cases prescribed by the director genera l through application of the provision of Article 
(53) of the unified Law.  
 
 
Chapter (II) 
 
 
Provisions for Application of the Customs tariff 
 
 
 
This Chapter contains the principles of a pplication of the customs tariff as follows:  
 
 
Article (9) provides that goods entering the State sh all be subject to the tax es “duties” stated in the 
customs tariff and to the other taxes a nd fees excluding those goods excluded  under the 
provisions of this Law or under the GCC Un ified Economic Agreement or any  other 
international agreement through mutual c oordination among the GCC Member States. 
 
The objective of limiting the exclusion from the customs Taxes “duties” to the cases covered by 
this Article is the setting up of the customs union am ong the GCC  Member  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 le vying 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, number, volume, meas urement 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 valo rem and specific categories for one type of goods. 
 
Article (11) provides that the imposition, amen dment or cancellation of the customs taxes 
“duties” shall be made according to the legal in strument 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 th e subjection of the goods to the customs taxes 
“duties” from the registration date of the custom s declaration and the provisions of the customs 
taxes “duties” relating to the clearance of th e goods whose deposit period at  the warehouses has 
elapsed and taking out these goods from the free z ones and duty-free shops and the tariff to be 
applied to the smuggled goods or those damaged. 
 
 
 
 
  
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  Chapter III 
 
 
Prohibition and Restriction 
 
 
 
This Chapter requires the importers to submit a customs declaration for any goods imported into 
or exported from the country. This declaration sh all be the official document produced 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  marine  means  of  carriage  shall  be according to the 
conditions and situations set forth in Articles (20, 21). 
 
Article (22) deals with the arriving and departing aircrafts and the conditions  of landing and takeoff 
according to the provisions of this Article. 
 
Article (23) limits the entry or exit of the land m eans of transport to those areas  within   the  
country  where  customs  offices  exist,  and  Article  (24) stipulates  that  the  customs  administration  shall  apply  the  conditions  a nd procedures prohibiting the entry, exit or  passage 
of the prohibited goods or the goods contraveni ng this Law or any other Law or resolution.  
 
 
Chapter IV 
 
 
 
The Distinguishing Elements of the Goods 
 
 
 
This  Chapter  provides  clarification  and  description  of  the  distinguishing elements of the 
goods (origin, value, type) and stipulates that impor ted goods shall be subject to the proof of origin 
according to the rules agreed on within the framewo rk 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 pur poses is determined according to the provisions 
and principles prescribed in detail in th e Rules of Implementation of the Law. 
 Article  (27)  specifies  the  documents  to  be  attached  with  the  customs declaration and the 
nature of these documents and the treatment of the c ases 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 regist ering the customs declaration plus all charges 
incurred until arrival of the goods to the customs o ffice. Article (29) provides that the goods that 
are not mentioned in the customs tariff nomenclat ure and the explanatory notes thereof shall be 
classified according to the classification advice issu ed by the World Customs Organization which the 
approved body in respect  to  the  internationa l   classification.  However,  goods  falling  under 
national subheadings of the customs tariff  beyond si x digits are classified within the  framework 
of the GCC as the unified Customs Tariff for the Classification and Coding of  Commodities is in 
line with the Harmonized System in force.   G/VAL/N/1/BHR/2 
Page 100  
 
  Chapter (V) 
 
 
Importation and Exportation 
 
 
 
This chapter covers the Articles (30 to 46) of th e Law which  contain provisions of  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 th e 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 important  element of facilitation of the customs operations 
which is the use of the modern technology medi a in the Electronic Data Interchange for the 
clearance of the goods according to the rules prescrib ed by the minister or the competent authority. 
 
  
 
Chapter (VI) 
 
 
Stages of the Customs Clearance 
 
 
 
This  chapter  elucidates  in  detail  the  stages  of  the  customs  clearance beginning with the 
lodgment of the customs declaration according to the forms approved within the frame  of  the 
Council and that the director general is empowered  to   specify  the  documents  to  be  attached  
with  the  customs declarations and the details to be contained therein and the clearance cases without  production  of  such  documents  ga ins  cash  o  bank  guarantees  or undertakings 
according to the conditions prescribed by the dir ector general. The Law permits the owners of 
goods or their representatives to examine their goods prior to the lodgment of the customs 
declaration and to have access to the customs decl arations and documents to  which no other persons 
can have access except the competent judicial and official authorities.  
 
 
Articles (52 to 59) deal with the right of the competent custom s officer to inspect the  goods 
wholly or partially on a case-by-case basis acco rding to practices in force, the inspection 
procedures, the movement of goods and the presence of the owner of the goods  during the inspection and the right of the administration to ope n the packages and make analysis (tests) of the 
goods, the discrepancy cases and the missing (incompl ete)  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.   
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 Page 101 
 
 
   
Article (60) tackles the declaration and inspection,  at the customs offices, of the  passengers  
accompanied  luggage  and  belongings  according  to  the practices an 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 general. Such  committee  is  specialized  in  
the  settlement  of  the  disputes  arising betw een the customs office and the importers concerning 
the valuation of the imported goods and the committ ee may seek assistance of experts according to 
the measures and procedures provided for in Article  (26) of this Law without prejudice of 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 provides that the dispute  shall  be  referred  to  the  
director  general  for  settlement  or  to  th e 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 cu stoms taxes “duties” and the other  charges  and  
the  release  of  the  goods  according  to  the  rules  and conditions prescribed by the director 
general.  
 
 
  
 
Chapter VII 
 
 
 The cases where the customs taxes “dut ies” are suspended and Drawback 
 
 
 
This chapter deals with cases where the goods could be released and moved from one place o 
another in the country without payment of the customs taxes “duties”; these are known as the cases 
where the customs taxes “duties” are suspe nded. The Section also deals with the Drawback (a 
system under which the paid the customs taxes “duties” can be refunded when the goods leave 
the country according to the following provisions and rules:  
 
 
1.  The release of the goods against s ubmitting cash or bank guarantees in an amount 
equivalent to the customs taxes “duties” acco rding 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 Member States according to the 
provisions of the international regulations a nd agreements in force such as the Transit 
Agreement of the Arab States and accordi ng 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 the minister or the competent authority. 
 
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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 by the legal instrument of each State; 
the rules, conditions and customs procedur es 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 fro m entering the free zones and duty-free shops and 
Article (83) provides that goods may not be m oved from one free zone to another unless in 
accordance with the regulations 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 th e 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 duration of time 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 internationa l agreements made in this connection. 
 
Article (97) deals with the cases where the custom s taxes “duties” levied on the foreign goods are 
wholly or partially refunded (drawback) at re-expor tation according to the conditions set forth in the 
Rules of Implementation.  
 
 
  
 
  
Chapter VIII 
 
 
Exemptions 
 
 
 
This chapter contains provisions for the exemp tion from the customs taxes “duties” (Articles 98 
to 106). Exemption covers the following commodities and items: 
 
1.  The commodities exempted in the Un ified Customs Tariff of the GCC Member 
States. 
 
 
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  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 force 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 Fo rces and the Internal Security Forces such 
as ammunition, arms, etc. 
4.  The personal effects and used househ old appliances belonging to the citizens
 residing abroad or those brought with the  foreigners (expatriates) upon their first arrival for residence in the country  according to the conditions prescribed by the 
director general. 
5.  Personal effects and gifts brought by p assengers according to the conditions of the 
Rules of Implementation. 
6.  Imports of the philanthropic societie s (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 tax es “duties”   such as the returned goods of 
national origin that were exported to outside of 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 tempor arily exported for completion of processing or 
repair. 
 
Chapter IX Service Charges 
 
 
 
Article (107) provides that the goods placed in the yards and warehouses belonging to he 
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 specified rates. 
However,  In no case shall the storage charge exce ed half the estimated value of the goods, in the 
event  such warehouses  are managed by other en tities, these fees shall be collected according to 
the provisions and rates prescribed in this respect. 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 resolution 
to be issued by the minister  or the competent authority. 
 
  
 
  
 
  
 
  
 
 
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  Chapter X Customs Brokers 
 
 
 
This chapter defines the customs broker and his capacity (Article 108) and Article (109)  entitles 
the natural and legal nationals of  the GCC Member  States the right to engage in this activity 
after obtaining the necessary licence from the Administration. 
 
  
 
Chapter XI 
 
 
The rights and duties of the Customs officers of the Administration 
 
 
 
This chapter outlines two important aspects of the na ture of the job of the 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 economi c aspect being to collect the customs taxes 
“duties”. The section regulates the rights and duties of  the  officers  of the Administration and the 
incentives given to them and this Law 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 the minister or the competent authority and it requires the civil and 
military authorities and the Internal  Security Fo rces to help them carry out the duties assigned 
to them when so requested.  
 
 
Section XII 
 
 
Customs Zone (Territory) 
 
 
 
This chapter contains provisions of the Customs zone (boundary) : 
 
Article (121)  states  that  there  are  provisions  of   the  customs  territory  as provided for in clause 
9 of Article (2) of this Regulation (Law) which states that the marine customs boundary covers the 
area of the sea located between the seashores 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 by a resoluti on by the minister or the competent authority on the 
other. This provision provides that prohibited a nd restricted goods as well goods subject to high 
customs taxes “duties” shall be subject to the pr ovisions of the customs zone. So the presence of 
such goods within these areas requires their subject ion to the provisions of  the customs zone and 
the movement of such goods is usually subject to special provisions in order to avoid their 
smuggling into the country. 
 
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Chapter XIII 
 
Customs Matters 
 
 
 
This chapter deals with the customs matters which are an important 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 transport and the 
search of persons, seizure of the goods, examin ing the documents, records, correspondence and 
other documents and the right to detain any su spect according to the rules prescribed by a 
resolution issued by the minister or the competent authority. Para (3) of Article (126) states that 
the exercise of work outside of the two customs zones shall be wi thin the borders of the State. 
 
Articles (129 to 134) deal with the seizure report a nd the main elements to be contained therein. 
This report is deemed as a pretext (proof) of th e 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 m eans of transport excludi ng those intended for 
the transport of persons unless such means  ar e 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 according to the regul ations and laws in force in the country. 
 
Articles (135 to 137) deal with the provisional sei zure of the smuggled goods and the things used 
for concealment thereof and the mean of transpor t and the seizure of all  documents to ensure 
the customs taxes “duties”. These Ar ticles also authorize the  director  general – when necessary- 
to obtain an order from the comp etent authorities to  effect the provisional attachment of the 
properties of the offenders and those involved in  smuggling. The director general may, when 
necessary to ensure the rights of the public  treasury, impose a customs security on the 
properties of the tax “duty” payers or their partne rs. The Articles have specified the arrest cases in 
the smuggling crimes in the act, the resistance of the customs officers or the security officers and 
the other matters regulating  the arrest proces s 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” a nd fines. This decision can be cancelled if the 
offender submits a guarantee in an amount equivalent to the claimed amounts or if the value of the 
seize items turn to be sufficient to cover the claimed amounts.  
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Articles (139 to 141) deal with the customs o ffences and the penalties thereof and regard the 
collected customs fines and confiscations provide d 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 th e 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 interna tional 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 subj ect of smuggling, its definition and the cases 
deemed as smuggling. Para. “14” of Article (143) defines such case as those goods prohibited fro 
exportation to outside of the country, but were exceptionally allowed to  be  exported provided 
that they shall be re- imported into the country  and the  non-compliance with this requirement 
shall be deemed as smuggling, while Article (144)  defines the penal  liability and those 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 administrativ e prosecution “pursuit” and entitle the director 
general to issue the necessary decisions for the co llection of the taxes “duties” and  the measures 
of such collection and allow for the complaint  be fore  the  minister  or  the   competent  
authority  against  the penalization judgments. With in 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. 
 
Article (151) provides for the rules of reconciliatory  settlement  and entitles the director general or 
his representative to make a reconcilement (compromise) of the smuggling actions whether prior 
to bringing out the actions  or during trial and before the issuance of th e first instance judgment 
which shall be in lieu of the penalties and fines pr ovided for in Article (145) of this 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 r econcilement subject to the provisions of Article 
(151).  
 
 
Article (153) provides that the action (claim)  shall be settled after r econcilement and Articles 
(154 to 160) deal with the subject of liability a nd joinder in the  smuggling matters and the rules 
thereof, while Article (155) holds the investors of the private shops and premises where the  
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  goods, subject of the offence or smuggling, are stor ed 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 assistants shall be held responsible unless they prove their 
ignorance of the presence of such infringing goods or contraband  and that they have got no 
direct or indirect good in them. 
 
Article (156) provides that sponsors “guarantors” sh all be held responsible within the extent of 
their guarantees upon payment of the customs tax es “duties” an fines while  Article (157) 
provides that customs brokers shall be responsible for the offences and smuggling crimes they commit in the customs declarations and Article ( 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 tax es “duties”, fines and confiscations, Article (159) provides that 
heirs shall not 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 custom s taxes “duties” and fines shall be jointly paid 
by the offenders or smugglers according to the prac tices 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 th e legal instrument applicable in each  State. 
The competences and judgments’ finality of such 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 the minister or the competent authorit y to order that a sufficient amount of such 
property shall be retained for the payment of the claimed amounts. 
 
  
Chapter XIV The Sale of Goods 
 
This  chapter  contains  provisions  relating  to  the  sale  of  the  goods  in possession of the 
Administration provided for in Articles (166 o 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 competen t 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. 
 
 
 
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  Article (168) provided for the goods to be so ld by the Administration and Article (169) 
provides that the Administration shall not be respon sible 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. Article (170)  contains  
some provisions relating to the sale process described in detail in this Article. 
 
Article (171)  deals  with  the  controls  under  which  the  disposition  of  the proceeds of the sale 
of the permitted, prohibited and restricted goods. 
 
Article (172) provides that the portion due to th e 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  ch arges  and  contains  provisions  for  the  
disposition  of  the remaining portion.  
 
 
Chapter XV 
 
 
Privilege of the Customs Administration 
 
 
 
This chapter 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 th e customs taxes “duties” and other charges and the 
fines, compensations, confiscations and redemptions. 
 
 
 
  
 
Chapter XVI 
 
Prescription 
 
 
This chapter contains provisions of prescription. Article (174) provides that any claim or action 
for the refund of the customs taxes “duties” that have  been paid since more th an  three  years shall 
not be accepted, and Article (175) empowers  the  administration  to  destroy  the  records,  receipts  ,  customs declarations and the other do cuments after five years following the finalization 
of the customs procedures thereof and the admini stration shall not be required to produce them to 
any entity or give copies or duplicates thereof after the expiry of that period. 
 
Without prejudice to the other regulations and laws applicable in the Member State, Article (176) 
specifies the prescription time, in respect to custom s, if no pursuit “prosecution” has been initiated.  G/VAL/N/1/BHR/2 
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Chapter XVII 
 
 
Final Provisions 
  
This chapter contains the following final provisions: 
Article (177) empowers the Director General: 
1.  to exclude the ministries, government al departments and public institutions from 
certain procedures for facilitation of their business, and 
2.  to 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 by a resolution of the minister or the competent authority.  
 
Article (178) entitles the Financial and Econom ic Cooperation Committee of the GCC Member 
States the right to adopt the Rules of Implementation of  this Law  and  Article  (179)  provides  that  
this  Law  shall,  after  implementation, supersede the customs regulations  and  laws in force in the 
member states subject to and without contradicti on to the regulations and constitutional rules in 
each State. 
 
 
  
 
  
 
  
 
 
 
 
 
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