The State of Kuwait WT/TPR/S/258 
 Page 23 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
1. The Unified Customs Law of the Cooperation Coun cil for the Arab States of the Gulf (the 
GCC Common Customs Law) regulates customs procedures in Kuwait.  Customs procedures and the 
documents required are the same for all GCC members. 
2. Import declarations are generally made before th e goods' arrival.  Declarations may be made 
either by the owners of the goods (and their aut horized representatives), or licensed customs brokers 
(who must be GCC nationals).  Non-GCC nationals may work through the office of a licensed 
customs broker.  In Kuwait, 95% of import declara tions (including invoices, delivery orders, bills of 
lading, packing lists of goods, cer tifications of origin, import licences, and commercial registration 
certificates) are made through an electronic system.  The system automatically identifies goods that 
are prohibited from importation or require special permission, and whether the goods need to be 
inspected.  Where the importation requires special permission, the system identifies the competent 
agency for permission.  Customs auditors check the particulars of the declaration, determine whether 
the documents are complete, and assess the value of the goods and the amount of duty to be collected 
through the electronic system.  According to the authorities, if the documentation is complete, the goods may be cleared within a few hours. 
3. Kuwait does not have preshipment inspection requirements. 
4. Pursuant to Article 22.2 of the Agreement on Implementation of Article VII of GATT 1994, 
Kuwait notified its legislation related to customs va luation, which includes:  Emir decree No. 10/2003 
on issuing the  GCC Common Customs Law (in particular, Articles 26-29 and 61-62, the explanatory notes, as well as sections IV and VI), and Emir decree No. 200/2003 on issuing the Rules of Implementation of the GCC Common Customs Law. 
5. Customs value is determined as the tran saction value of the imported goods.  If the 
transaction value cannot be determined, the following alternative methods may be used in sequential 
order:  (1) transaction value of identical goods;  (2) transaction value of similar goods;  (3) deductive 
value;  (4) computed value.  The importer may re quest that "deductive value" and "computed value" 
be applied in reverse sequence.  If the customs value of the imported goods cannot be determined 
under these methods, it is then determined by reasona ble methods that are in line with the general 
principles and provisions of the Agreement on Cust oms Valuation, by referring again to the above 
methods, with more flexibility of application. 
6. A Valuation Committee was set up in accordan ce with Article 61 of the GCC Common 
Customs Law, to resolve any value disputes between Customs and the importers.
1  This Committee 
consists of Customs officials of Kuwait and a representative of the Kuwait Chamber of Commerce 
and Industry.  Importers who are not satisfied with  the Committee decisions, may appeal to courts.  
According to the authorities, there has been no disp ute regarding customs valuation in recent years, 
and thus no appeal to judicial authorities. 
7. Kuwait does not apply non-preferential rules of or igin.  Its preferential rules of origins are 
listed in Table III.1. 
                                                      
1 WTO document G/VAL/N/1/KWT/1, 7 December 2007. WT/TPR/S/258 Trade Policy Review 
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Table III.1 
Kuwait's preferential rules of origin, 2011 
Agreement/country Rules 
Goods of Arabic 
origin (GAFTA) All goods of Arab origin are exempted from  customs tariffs if consignments are:  
(a) accompanied by a certificate of or igin issued by the relevant author ities of the country of production;  
(b) the added value of the production ta king place in the Arabic country is no less than 40% of its final value; 
(c) the added value resulting from assembly industries in Ar ab countries is no less than 20% of its final value; 
(d) the certification of origin must be issued from the producing entity, a nd be authenticated by the relevant 
authority of issuance in Arabic country of origin. 
Goods of GCC origin Products are generally considered as origina ting from the country where they are wholly obtained or where 
they underwent substantial transformation, with at leas t 40% of local value-added.  The country of origin 
should be written clearly for import clearance. 
EFTA Products are generally considered as originating from the EFTA states if they are wholly obtained in the 
EFTA states; or if they have undergone sufficient work ing or processing.  Sufficient working or processing 
must satisfy product-specific rules of origin listed in Appendix 2 of the Agreement, where in most cases, the 
value of all non-originating materials must not ex ceed 60% of the ex-works  price of the product. 
Singapore Goods are wholly obtained in Singapore ; or have undergone sufficient working or production:  if the sufficient 
working or production (a) satisfies product-specific rules of origin in Annex 3 of the Agreement; or (b) attains 
a qualifying value added of not less than  35% based on the ex-works price. 
 
Source: Kuwait Chamber of Commerce and Inudstr y online information.  Viewed at:  http://www.kcci.org.kw/.  EFTA 
 online information.  Viewed at:  h ttp://www.efta.int/ fr ee-trade/fr ee-trade-agre ements/gcc/rou-annexes-letters.aspx 
 [27/01/11].  Singapore  Government online information.   Viewed at:  h ttp://www.fta.gov.s g/fta_C_gsfta.asp?hl=30   
 [17/05/2011];  a nd information provided by the Kuwaiti authorities. 
(ii) Tariffs 
(a) MFN tariffs 
8. Kuwait bound 99.5% of its tariff lines, leaving oil, petroleumm, and petrochemicals unbound. 
All bound rates are at 100%. 
9. Kuwait charges at most MFN duty rates to WT O Members.  Tariff revenue accounts for a 
large portion of total tax revenue:  69.7% in 2010/ 11, although tax revenue accounts for less than 2% 
of total government revenue.  Ku wait does not have tariff-rate quotas. 
10. Under the "single entry" principle, goods impor ted into Kuwait (or any other GCC State) are 
subject to customs duty only at the first point of entry into the GCC, with a redistribution system for collected tariffs among the GCC countries.  All g oods that enter Kuwait are subject to the common 
external tariff, at 0% and 5% for most products , and 100% and a specific duty for tobacco products, 
with some GCC-approved specific exceptions for each  member state.  According to the authorities, 
Kuwait has no country-specific exceptions. 
11. Article 18 of the Industrial Law (No. 56 of 1996)  stipulates that Customs duties on imports of 
products, if similar to those produced domestically , may be increased for a specified duration based 
on a proposal by the Board of Directors of the Public Authority for Industry (PAI), taking into consideration whether local producti on is satisfactory as regards quantit y, type, quality, and consumer 
interest.  According to the authorities, Kuwa it does not apply this article in practice. 
12. Based on data supplied by the authorities, Kuwait's 2011 applied MFN tariff consisted of 
7,100 lines at the HS 8-digit level (HS 2007)  (Table III.2) and AIII.1):  7,001  lines (98.6%) carry 
ad valorem  rates (zero, 5%, and 100%) (Chart III.1).  Th e dispersion in applied MFN rates, indicated 
by the coefficient of variation, was up slightly from 1.0 in 2003 to 1.1 in 2011, reflecting the increase in the number of duty-free lines. The State of Kuwait WT/TPR/S/258 
 Page 25 
 
 
13. Non- ad valorem  rates (mixed tariffs) apply to 19 tariff lines on tobacco and tobacco 
products.2  The ad valorem equivalents (AVEs) of non- ad valorem  tariffs are calculated using average 
unit prices of import (based on import value and quan tity data for 2009), where they exist.  Although 
the bound tariff rates for tobacco products are at 100%, the AVEs calculated for non- ad valorem  tariff 
lines show that eight lines with AVEs of 100% , while three have AVEs of 104.8%, 140%, and 
534.9% (HS24031090: ot her manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco ex tracts and essences – other), respectively.  Data 
for calculating the AVEs for the remaining eight lin es, were not available to the Secretariat. 
Table III.2 
Summary analysis of the MFN tariff, 2003, 2007, 2011  
(%) 
  2003 2007 2011 
Bound tariff lines (% of all tariff lines) 99.5 99.5 99.5 
Simple average rate 5.0 4.7 4.8 
Agricultural products (HS 01-24) 5.4 5.4 5.4 
Industrial products (HS 25-97) 4.9 4.6 4.6 
WTO agricultural productsa 5.7 5.7 5.7 
WTO non-agricultural productsb 4.9 4.6 4.6 
By ISIC sector c    
ISIC 1 - Agriculture, hunting, forestry, and fishing 3.3 3.2 3.2 
ISIC 2 – Mining and quarrying 5.0 4.9 4.9 
ISIC 3 - Manufacturing 5.1 4.8 4.9 
By stage of processing    
First stage of processing 4.0 3.9 3.9 
Semi-processed products 4.9 4.8 4.8 
Fully processed products 5.2 4.9 4.9 
Domestic tariff "spikes" (% of all tariff lines)d 0.3 0.6 0.6 
International tariff "peaks" (% of all tariff lines)e 0.3 0.6 0.6 
Overall standard deviation of tariff rates 5.2 5.3 5.3 
Coefficient of variation of  tariff rates 1.0 1.1 1.1 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
Duty-free tariff lines (% of all tariff lines) 5.8 10.6 9.4 
Non- ad valorem  tariffs (% of all tariff lines) 1.1 1.3 1.4 
Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 1.1 1.3 1.4 
Nuisance applied rates (% of all tariff lines)f 0.0 0.0 0.0 
Number of lines 7,154 7,121 7,100 
  Ad valorem  98.9 98.7 98.6 
  Non- ad valorem   1.1 1.3 1.4 
      Specific 0.0 0.0 0.0 
      Compound 0.0 0.0 0.0 
      Mixed 0.3 0.3 0.3 
      Others (prohibited and special goods) 0.8 1.0 1.1 
Table III.2 (cont'd)
                                                      
2 Other lines include items prohibited from importation or that require special import permission, and 
6 lines with no duty rates. WT/TPR/S/258 Trade Policy Review 
Page 26 
  
  2003 2007 2011 
Memo:  some comparisons    
By WTO definitiong    
WTO Agriculture 5.7 5.7 5.7 
Live animals and products thereof 2.8 2.7 2.7 
Dairy products 5.0 5.0 5.0 
Coffee and tea, cocoa, sugar, etc. 4.0 4.0 4.0 
Cut flowers and plants 4.5 4.5 4.5 
Fruit and vegetables 3.5 3.5 3.5 
Grains 0.5 0.5 0.5 
Oil seeds, fats, oils, and their products 4.9 4.8 4.8 
Beverages and spirits 5.0 4.9 4.9 
Tobacco 100.0 100.0 100.0 
Other agricultural products 4.4 4.1 4.2 
WTO Non-agriculture (excluding petroleum) 4.9 4.6 4.6 
Fish and fishery products 3.2 3.2 3.2 
Mineral products, precious stones, and precious metals 4.8 4.7 4.7 
Metals 5.0 5.0 5.0 
Chemicals and photographic supplies 4.8 4.5 4.5 
Leather, rubber, footwear, and travel goods 5.0 5.0 5.0 
Wood, pulp, paper, and furniture 4.6 4.5 4.6 
Textiles and clothing 5.0 5.0 5.0 
Transport equipment 4.4 4.4 4.4 
Non-electric machinery 5.0 4.2 4.6 
Electric machinery 5.0 3.4 3.8 
Non-agricultural articles n.e.s. 5.0 4.6 4.7 
Oil and petroleum 5.0 5.0 5.0 
 
a WTO Agreement on Agriculture definitions. b Excluding petroleum. 
c International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
d Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate.  
e International tariff peaks are defined as those exceeding 15%. 
f Nuisance rates are those greater than zero, but less than or equal to 2%.  
g 34 tariff lines on petroleum products are not taken into account.  
Note: The 2003 tariff is based on HS 02 nomenclature, and the 2007 and 2011 tariffs are based on HS 07 nomenclature.  For non- ad 
valorem  tariff lines, the ad-valorem  part of alternate rates was take n into account for the calculations.  
 
Source:  WTO Secretariat calculations , based on data provided by  the Kuwaiti authorities. 
14. Overall, Kuwait's applied MFN tariff displa ys positive escalation from unprocessed to fully 
processed products (Chart III.2).  This escalation is mainly because the average applied tariff rate on 
the first stage of processing is relatively low.  At  a more disaggregated level, the tariff structure 
reflects that a large number of sectors are subject to flat tariff protection: uniform tariff applies for the 
three stages of processing for textiles and appare ls, wood products, non-me tallic mineral products, 
and other manufacturing.  Nonetheless, for certain industries the tariff depicts negative escalation, 
such as in paper and printing, chemicals a nd plastics, and fabricated metal products. 
15. As a result of the implementation of the G CC common external tariff, Kuwait's simple 
average applied MFN tariff was reduced from 7.7% in 2002, to 5.0% in 2003 (when the Customs 
Union was launched) and 4.7 % in 2007.  The simple average tariff rate increased slightly, to 4.8% in 
2011. The State of Kuwait WT/TPR/S/258 
 Page 27 
 
 
(9.4)(89.2)
(0.3)
0102030405060708090100
01,0002,0003,0004,0005,0006,000
05 1 0 0The figures in brackets correspond to the percentage of total lines. Totals do not add to 100% due to the exclusion of 
prohibited and special goods rates.
WTO Secretariat calculations, based on data provided by the Kuwaiti authorities.Chart III.1
Breakdown of import duty rates, 2011
Number of tariff lines
Note:
Source :Percentage
Number of lines 
Cumulated percentage
(right-hand scale)
 
16. In September 2010, Kuwait joined the WTO Information Technology Agreement (ITA).  The 
authorities stated that Kuwait applied zero tariffs on most IT products before it joined the ITA.  It 
committed to further eliminate tariffs on all IT products as of 2012. 
(b) Tariff exemptions and reductions 
17. GCC Member States agreed to exempt "national industry inputs" from Customs duties.  These 
inputs are:  machinery, equipment, parts, raw ma terials, semi-manufactured materials, and packing 
materials required for immediate industrial produc tion.  The manufacturing plant must have an 
industrial licence from the competent authority (PAI).  Exemption is valid as long as the plant is in business.  The purpose of the exemption is to lower production costs, increase competitiveness, 
encourage industrial investment and incr ease industry’s contribution to the economy.
3  According to 
the authorities, there has been no study on the e ffects of tariff exemptions on domestic industry 
development. 
18. The GCC Common Customs Law specifies the ag encies and goods that are exempt from duty, 
including the diplomatic corps, military forces, pers onal effects, imports by charitable societies, and 
returned goods.4 
19. Goods imported into Kuwait, on which customs duties and other taxes were not collected, 
must be  re-exported, or used in the free-trade zone.5  Customs duties and other taxes collected on 
                                                      
3 GCC Secretariat General, Amended Controls for Exemption of Industry Inputs from Customs Duties 
in GCC Member States, 2009. 
4 Article 98-106 of the GCC Customs Law. 
5 Article 95-97, Unified Customs Regulation (Law) of  the Cooperation Council for the Arab States of 
the Gulf. WT/TPR/S/258 Trade Policy Review 
Page 28 
  
foreign goods may be totally or partially refunded  at re-exportation (depending on whether entire or 
part of the imported goods are re-exported). 
0.01.02.03.04.05.06.07.08.0Chart III.2
Tariff escalation by ISIC  2-digit industry, 2011
Per cent
Source : WTO Secretariat estimates, based on data provided by the Kuwaiti authorities.
All products
Food, beverages
Textiles, 
apparel
Wood 
products
Paper, 
printing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal products
Other 
manufacturingNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
(iii) Other fees and charges 
20. Customs collects ad valorem  fees on imported goods, including special services fees for 
temporary entry of products, transit services fees, and non -ad valorem  fees for certificates.  According 
to information from the authorities, in 2009/10, Ku wait Customs collected US$19 million in fees and 
charges, down from US$22 million in 2008/09 and US$48 million in 2005/06.  The decline was attributed to the collection of a large part of f ees and charges being entrusted to the private sector. 
Table III.3 
Customs duty and fees, 2003-10 
(US$ million ) 
Fiscal year Fees and charges Customs duty 
2003/04 20.9 491.6 
2004/05 31.5 565.8 
2005/06 48.1 602.1 
2006/07 16.9 655.7 
2007/08 19.1 787.6 
2008/09 21.9 798.5 
2009/10 18.9 662.5  
 
Source : Customs information. 
21. Kuwait  requires authentication of documents su ch as commercial invoices, certificates of 
origin, health and halal meat certificates, and mani fests, for all imports.  These documents must be 
authenticated by the Kuwaiti embassy or an assigne d embassy in the exporting country.  Consular 
authentication costs KD 5-10 per page, and the author ities are preparing a study to reassess these fees.  The State of Kuwait WT/TPR/S/258 
 Page 29 
 
 
According to the authorities, the purpose of consular  authentication is to prevent the importation into 
Kuwait of problematic goods through fake and fraudulent documentation. 
(iv) Free-trade zones 
22. The Law Concerning Free Trade Zones (No. 26 of 1995) allows for the establishment of one 
or more free-trade zones (FTZs).  The Ministry of Commerce and Industry assumes supervision of the 
free-trade zones, although it may entrust their mana gement to the private sector.  Firms can obtain 
licences on the spot and face little state intervention.6  They are exempted from corporate income tax 
and customs duties (although firms outside the zon es are also exempted from customs tariff when 
importing "national industry inputs").  Exports and im ports into the zone are not subject to the import 
and export restrictions, although they may not impor t goods that are prohibited.  Foreign invested 
firms established in the zones are subject to th e offset programme if they obtain government 
procurement contract (section (3)(iii)). 
23. In 1998, Kuwait established a fr ee-trade zone in the industr ial and commercial area at 
Shuwaikh Port.  The FTZ is owned and financed by the private sector.  The objective of the zone is to 
"attract national and foreign investment for the restoration of Kuwait as a pioneering trade country, by 
providing investors with commercial and investment opportunities, so as to carry out all permissible 
activities without restriction or limitation, which w ill  to boost exports and revive national economy".7 
(v) Import prohibitions, restrictions, and licensing 
(a) Import prohibitions 
24. Kuwait prohibits the importation of certain goods mainly for religious considerations, as well 
as meeting the requirements of international conve ntions and following UN sanctions, security, health 
and safety, moral, and environment protection.   Products prohibited from importation cover, 
inter alia , food products containing alcohol, pork and thei r derivatives, as well as cars and trucks with 
the steering wheel to the right or the modified steering wheel (Table AIII.2). 
(b) Import licensing 
25. Kuwait maintains a non-automatic, "general" impor t licensing system, in accordance with the 
Import Law (No. 43 of 1964).8  The licensing system applies to all goods from all countries.  
Importers must obtain a commercial licence, then  an import licence, both from the Ministry of 
Commerce and Industry (MCI).  The MCI is the si ngle administrative body in charge of issuing 
licences.  According to the authoriti es, licensing is not in place to restrict the quantity or value of 
imports;  it is to ensure that goods do not enter Ku wait if they do not meet the requirements of its 
different laws, regulations or decisions. 
26. Import licences may be further grouped into tho se granted to firms and companies, and those 
given to persons and some companies according to their activities.  The conditions and validity of 
these licences are listed in Table III.4.  There is no penalty for non-use of a licences;  licences are not 
transferable.  There are no fees or administrative charges, or deposit or advance payment requirements 
associated with the i ssuance of a licence. 
                                                      
6 Abdullah Kh. Al-Ayoub & Associates.  Viewed a t:  http://www.al-ayoub.org/index.html [04/02/11]. 
7 Ministry of Commerce and Industry (2010), p. 55. 
8 WTO document G/LIC/N/3/KWT/1, 25 October 2010. WT/TPR/S/258 Trade Policy Review 
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Table III.4 
Import licences, 2004-10 
 
Source : MCI (2010), Annual Report 2009 , Department of Planning and Research, p. 43;  and information provided by the 
 Kuwaiti authorities. 
27. For certain goods, importers require special pe rmission from competent agencies, in addition 
to the “general” import licence from the MCI (Table III.5). 
Table III.5 
Imports requiring special permission 
HS code Description Agency of release 
Chapters 1-5 Live animals, animal pr oducts Public Authority of Agriculture 
Affairs and Fish Resources 
(PAAF) 
Chapter 6 Live trees other plants;  bulbs, roots and the like;  cut flowers and 
ornamental foliage (Fresh) 
PAAF 
Chapter 7 Edible vegetables and certain roots and tubers 
Chapter 8 Edible fruits and nuts; peel of citrus fruit or melons 
Chapter 9 Coffee, tea, mate a nd spices (Chilled and frozen) 
Kuwait Municipality Chapter 10 Cereals 
Chapter 11 Products of the milling indus try; malt; starches; inulin; wheat 
gluten 
Chapter 12 Oil seeds and oleaginous fruits ; miscellaneous grains, industrial or 
medicinal plants; straw and fodder 
Chapter 15 Animal or vegetable fats a nd oils, and their cleavage products and 
prepared edible fats; animal or vegetable waxes PAAF 
Table III.5 (cont'd) Type of licence Conditions Validity 
Import licences to firms and 
companies Granted to companies and establishments upon provision of:  
1. Application signed by the person concerned 
2. Copy of valid commercial license 
3. Copy of signature certificate of the person concerned 
4. Copy of Chamber of Commerce certificate valid for 
 the current year 
5. Copy of Commercial Register certification 
6. Original import licence, in case of renewal 
7. A letter from concerned company/establishment 
 requesting a replacement, if the original is lost One year; extension may be granted.  
 
Import licences to persons, 
firms, and companies according to activities Granted upon provision of 
A: persons: 
1. Application signed by the relevant person 
2. Copy of shipment policy 
3. Copy of civil identity card 
B:  Establishment/company: 
1. Application signed by the concerned person 
2. Copy of valid commercial licence 
3. Copy of shipment policy 
4. Copy of signature certificat e of the concerned person  One-shipment licence  
 
Year Newly issued import licences Import licences to firms and companies 
(new and renewed) Import licences to persons and some 
companies 
2004 2,152 9,619 5,409 
2005 1,928 10,084 5,776 
2006 1,704 10,214 6,111 
2007 1,801 10,536 7,116 
2008 1,754 10,955 8,509 
2009 1,401 10,944 6,998 
2010 1,343 10,076 6,214 The State of Kuwait WT/TPR/S/258 
 Page 31 
 
 
HS code Description Agency of release 
Chapter 16-23 Prepared foodstuffs;  bevera ges, spirits and vinegar;  tobacco and 
manufactured tobacco substitutes Kuwait Municipality 
Chapter 24 Tobacco and manufactured tob acco substitutes Ministry of Health 
25010010 Common salt (table salt) Kuwait Municipality 
Chapter 28 Inorganic chemicals; organic or inorganic compounds of metals, of 
rare earth metals, of radioactive elements or of isotopes Environment Public Authority 
Chapter 29 Organic chemicals 
Chapter 31 Fertilizers 
Chapter 32 Tanning or dyeing extracts; tanning and their derivatives, dyes, 
pigments and other colouring matte r; paints and varnishes; putty 
and other mastics;  inks 
Chapter 35 Albuminoidal substances; modified starches;  glues;  enzymes 
Chapter 38 Miscellaneous chemical products 
Chapter 30 Pharmaceutical products Ministry of Health 
Chapter 33 Essential oils and resinoi ds; perfumery, cosmetic or toilet 
preparations 
Chapter 34 Soap, organic surface-activ e agents, washing preparations, 
lubricating preparations, artificial waxes, prepared waxes, candles 
and similar articles 
Chapters 44-46 Wood and articles of wood;  wood charcoal Public Authority for Industry 
(PAI) 
56081100 Made up fishing nets of man-made textiles PAAF 
Chapters 84-85 Machinery and mechanical  appliances; electrical equipment; parts 
thereof; sound recorders and reproducers, television image and 
sound recorders and re producers, parts and accessories of such 
articles PAI 
8424.1000 Fire extinguishers Kuwait Fire Service Directorate 
8424.9090 Other parts for mechanical  or jet projecting appliances,  not 
elsewhere classified  
8413.1910 Fire pumps 
8705.3000 Fire fighting vehicles 
6506.1020 Firemen's helmets 
8905.9010 Fire-floats 
Chapter 87 Private cars (1,000 to 3,000cc)  of the current year model, or the 
model of the previous five years maximum (in Chapter 8703) Ministry of Commerce and 
Industry 
9020.0000 Other breathing appliances and ga s masks Kuwait Civil Defence Directorate 
 
Source:  Information provided by the Kuwait Customs Authority. 
(vi) Contingency measures 
(a) Legislation framework 
28. Kuwait notified to the WTO that the GCC Common Law on Anti-dumping, Countervailing 
Measures and Safeguard was most recently amended in December 2010.9  It agreed to notify the 
Rules of Implementation when its translation into English has been completed.  Under the amended 
Law, the GCC Ministerial Committee, the Permanen t Committee (PC), and the Technical Secretariat 
are responsible for implementing this law and its implementing rules. 
29. Complaints may be made by, or on behalf of  the GCC industry, if supported by those GCC 
producers who account for more than 50% of the total production of the like product produced by 
GCC producers who support or oppose the complaint;  GCC producers expressly supporting the 
                                                      
9 WTO document G/ADP/N/1/KWT/1, G/SCM/N/ 1/KWT/1, G/SG/N/1/KWT/1, 20 June 2011. WT/TPR/S/258 Trade Policy Review 
Page 32 
  
complaint must account for at least 25% of the total production of the like product produced by the 
GCC industry. 
30. All complaints must be submitted to the Technical Secretariat.  Within 30 days of receipt of a 
complaint, the Technical Secretariat examines the accuracy of the evidence provided and prepares an 
initial report to the Permanent Committee with its prop osal whether to initiate an investigation.  
Within 15 working days of receipt of the initial re port, the PC must decide either to initiate an 
investigation, as there appears to be sufficien t evidence within the meaning of the Law and its 
regulation;  or to reject the complaint because of  insufficient evidence.  The Technical Secretariat 
informs the complaining party of the PC's decision w ithin 7 working days of issuance of the decision. 
31. If the PC decides to initiate an investiga tion, the Technical Secretariat must send 
questionnaires to interested parties, including dom estic producers, importers, exporters, and foreign 
producers and consumer associations.  Parties receivi ng questionnaires have 40 days to reply;  an 
extension of 10 days may be grante d depending on parties' circumstances.  The Technical Secretariat 
may disregard any reply that is not submitted with in the time provided and in the form requested. 
32. The Technical Secretariat normally makes a preliminary determination no later than 180 days 
following initiation of investigation, and publish es a report containing details of the finding and 
conclusions reached, as well as the reasons that le d to the conclusions, while protecting confidential 
information.  Parties must submit comments, if any, on information disclosed to them, in writing 
within 15 days of the disclosure. 
33. An investigation must be terminated immediat ely if (a) the volume of imports (actual or 
potential) is negligible, i.e., if the volume of im ports from a particular country accounts for less than 
3% of the total imports of that product10;  and (b) if it is determined that the price margin is de minims , 
i.e., if this margin is less than 2% of the export price. 
34. The decision to terminate the investigation, to impose anti-dumping duties, countervailing 
measures, or safeguard measures, must be published by the Technical Secretariat in the Official Gazette.  The decision to impose any trade remedy measures enters into force on the date of its 
publication in the Gazette. 
35. The Ministerial Committee,  which is the GCC industrial c ooperation committee consisting of 
industrial ministers from member states, is responsible for applying definitive measures upon recommendations of the PC.  A national government al body, assists the GCC authorities in carrying 
out the investigation. 
36. The GCC Ministerial Committee has not applied any trade remedy measures to date.  Two 
safeguard investigations have been  initiated:  Notice No. 1/2009 against increased imports of other 
uncoated paper and pape rboard in rolls or sheets;  and Notice No. 2/2009 against increased imports of 
angles, channels and beams.  The two investig ations were terminated by the GCC Permanent 
Committee, which determined that th ere was a lack of injury in bo th cases.  In accordance with the 
Law, affected parties may apply to the Ministerial Committee for review. If the case is rejected by the 
Ministerial Committee, the party may appeal to a judicial body in a member state. 
                                                      
10 However, the volume of dumped imports is not negligible if more than one country is under 
investigation, and collectively imports from these countri es account for more than 7%  of total imports of the 
investigated product. The State of Kuwait WT/TPR/S/258 
 Page 33 
 
 
(b) Anti-dumping 
37. The PC may impose provisional anti-dumping measures if the following conditions are met:  
(a) an investigation has been initiated and notice has b een given to that effect;  (b) interested parties 
have been given adequate opportunities to submit information and make comments;  and (c) an 
affirmative preliminary determination has been made of dumping, injury, and causal link, and 
confirms that provisional measures are necessar y to prevent injury being caused during the 
investigation.  Provisional measures may take th e form of provisional duty or a security (by cash 
deposit or bond), not greater than the estimated dumping margin.  The provisional duties may be 
imposed no earlier than 60 days from initiation of th e investigation.  They may be applied for 
four months and may be exte nded for another two months. 
38. The need for the continued imposition of provisional measures may be reviewed.  Upon 
initiation of a review, the Technical Secretariat must  publish a notice in the Official Gazette.  After 
the review, the PC submits a proposal to the Ministeria l Committee to:  (a) repeal the measures if it is 
determined that the anti-dumping duty is no longer warranted;  (b) maintain the measure if it is 
determined that dumping and injury would likely conti nue or recur if the measure were removed;  (c) 
amend the measure.  A review must be conc luded within 12 months of its initiation. 
39. Based on the proposal from the PC, the Ministerial Committee may adopt definitive anti-
dumping duties, which must not exceed the margin of dumping.  Such duties are imposed on the dumped imports from all sources, for a period not exceed  five years, which may be extended after a 
review. 
40. If a product is subject to definitive anti-dumping duties, a review must be carried out to 
determine individual dumping margins for new e xporters.  No anti-dumping duties are levied on 
imports from such exporters or producers duri ng the review process.  However the PC, upon 
proposals from the Technical Secretariat, may withhold  appraisal or request guarantees to ensure that 
anti-dumping duties may be levied retroactively to th e date of the initiation of the review.  Such a 
review must be completed within nine months from initiation, and in any case no more than twelve 
months. 
41. Kuwait notified in 1998 that it did not adopt any anti-dumping actions during the period 
1 July to 31 December 1997.
11  According to the authorities, Kuwait (or the GCC) has not taken any 
anti-dumping actions. 
(c) Countervailing duties 
42. The PC may impose provisional countervailing duti es if the following conditions are met:  
(a) an investigation has been initiated and a notice has been given to that effect;  (b) interested parties 
have been given adequate opportunities to subm it information and make comments;  (c) an 
affirmative preliminary determination has been made that provisional measures are necessary to 
prevent injury being caused  during the investigation.12  Provisional measures may take the form of a 
provisional duty or a security (by cash deposit or bond), not greater than the estimated amount of the 
countervailable subsidy.  Provisional duties must be imposed no earlier than 60 days from the initiation of the investigation, and must be applied for a period not exceeding four months. 
                                                      
11 WTO document G/ADP/N/35/Add.1, 30 March 1998. 
12 A negative preliminary determination does not automatically terminate the investigation, but no 
provisional measures may be imposed in such a case. WT/TPR/S/258 Trade Policy Review 
Page 34 
  
43. A countervailing measure may remain in force only as long as, and to the extent that, it is 
necessary to counteract the countervailable subsidy th at is causing injury.  A definitive countervailing 
duty expires five years from its imposition, or five years from the date of initiation of the most recent 
review. 
44. The need for the continued imposition of c ountervailing duties may be reviewed.  Upon 
initiation of a review, the Technical Secretariat must  publish a notice in the Official Gazette.  After 
the review, the PC submits a proposal to the Minist erial Committee to:  (a) repeal the measure;  (b) 
maintain the measure if it is determined that subsid ization and injury would likely continue or recur if 
the measure were removed;  or (c) amend the me asure.  A review must be concluded within 12 
months. 
45. Kuwait notified that it did not adopt any countervailing duty action during the period 
1 January to 30 June 199513, or 1 January to 30 June 1996.14  According to the authorities, Kuwait (or 
the GCC) has not taken any countervailing measures. 
(d) Safeguard measures 
46. The Technical Secretariat is responsible for re porting to the PC if it finds that the import 
quantity of an investigated product is increasing so fast as to cause or threaten  to cause serious injury 
to the GCC industry producing like or directly co mpetitive products, and that the application of a 
definitive safeguard measure is in the public inte rest.  The PC may recommend that the Ministerial 
Committee apply a definitive safeguard measure.  Th e duration and level of any such measure must 
not be more than necessary to prevent or remedy  serious injury and to facilitate adjustment. 
47. A definitive safeguard measure may take the form  of a quota on imports of the investigated 
product, or safeguard duties; the measure must not  reduce the quantity of those imports below the 
average level registered in the most recent three representative years for which statistics are available, 
unless there is clear justification that a different level is necessary. 
48. According to the authorities, Kuwait (or the GCC) has not taken any safeguard measures. 
(vii) Standards and other technical requirements 
(a) Standards and technical regulations 
Standardization 
49. According to the authorities, Kuwaiti standard s are based on international standards with 
limited deviations due to climatic, geographical, a nd infrastructural conditions;  more than 90% of 
Kuwaiti standards are equivalent to international standards. 
50. A decision was taken through the Gulf Standa rdization Organization (GSO), to develop 
common unified standards and technical regulations  that will eventually replace the standards and 
technical regulations of individual GCC member countries.  According to the authorities, the GCC common standards and technical regulations are to  be based on international standards wherever 
possible, and deviations are to be kept to an absolute minimum for climatic, geographic, 
infrastructure, and moral reasons.
15  Before adopting a unified GCC standard, individual GCC 
                                                      
13 WTO document G/SCM/N/7/Add.1/Rev.1, 7 February 1996. 
14 WTO document G/SCM/N/19/Add.1, 9 October 1996. 
15 WTO document G/TBT/2/Add.105, 6 April 2011. The State of Kuwait WT/TPR/S/258 
 Page 35 
 
 
countries apply their own standards;  a product that meets the requirements of a technical regulation 
of another GCC country but not Kuwait 's is not allowed to enter Kuwait. 
51. Kuwait's Standards Unification Law No. 128 /1977 covers the adoption of standards, 
technical regulations, and conformity assessment pro cedures, and established the Public Authority for 
Industry (PAI) as the government agency responsible for enforcing the Law.  The PAI reviews current 
standards at least every five years.  The Sta ndards and Metrology Depart ment (KOWSMD) under the 
PAI is in charge of developing and publishing nati onal standards, adopting foreign and international 
standards as national standards, quality mark licensi ng, and issuing conformity certificates for local 
and imported products.16 
52. Article 11 of the Law designated the Official Gazette as the official publication for 
announcing the adoption of standards.  The ongoi ng drafting work on standards and technical 
regulations is announced in the Consumer Magazine .  According to the authorities, proposed drafts 
are available upon request. 
53. Kuwaiti standards take into consideration the opinions of various stakeholders (producers, 
traders, consumers, relevant authorities, and expert s) through their participation in the work of the 
specialized Technical Committees (T Cs), which draft standards and c onduct relevant studies.  Foreign 
producers and exporters may participate as TC member s through their local agents.  They may also 
submit their comments on draft standards directly. 
54. The authorities state that provisions of the Sta ndards Unification Law are compatible with the 
TBT Agreement.  Kuwait applies the Code of Good Practice for the Preparation, Adoption, 
Application and Notification of Standards and T echnical Regulations in accordance with the TBT 
Agreement.  Its acceptance of the Code was no tified to the TBT Committe e on 29 October 2002. 
55. Article 13 of the Standards Unification Law s tipulates that Kuwaiti standards are voluntary, 
and the Ministry of Commerce and Industry may conve rt them into mandatory technical regulations 
for considerations of health, safety, or nationa l security.  The Technical Committee for the sector 
concerned, in the KOWSMD, discusses and reco mmends the conversion, and prepares a draft 
technical regulation.  Once approved by the Director of the KOWSMD, the draft technical regulation 
is notified to the WTO for comments within 60-90 da ys.  A tentative enforcement date is assigned, 
which allows a sufficient period for importers and lo cal manufacturers to comply.  If the measure is 
likely to have a major effect on importers or lo cal manufacturers, advertisements are placed in 
newspapers, and stakeholders are i nvited to meetings and seminars to express their views.  In most 
cases, the period allowed for enforcement is no less than six months from publication of the technical 
regulation in the Official Gazette.  The finalized regulation must be approved by the Minister of the Ministry of Commerce and Industry. 
Kuwait Conformity Assurance Scheme (KUCAS) 
56. From June 2006, PAI has implemented the Ku wait Conformity Assura nce Scheme (KUCAS) 
Guidelines to verify the conformity of all "regul ated products" (imported or domestically produced), 
i.e. products subject to technical regulations, in cluding electrical toys, household and commercial 
electrical and gas appliances, automotive, chemical, and building materials (Table AIII.3).  According 
to the authorities, this is to protect  consumers and prevent deceptive practices.
17  The authorities state 
that all Kuwaiti technical regulations and conform ity assessment procedures target consumer products 
                                                      
16 WTO document G/TBT/CS/N/148, 13 November 2002. 
17 PAI online information, "Kuwait Conformity Assura nce Scheme (KUCAS) Guidelines".  Viewed at:  
https://www.pai.gov.kw/portal/page/portal/pai/KUCAS/G uidelines/KUCAS_Guidelines_en_r.pdf  [13/01/11]. WT/TPR/S/258 Trade Policy Review 
Page 36 
  
that pose a high risk to Kuwaiti consumers due to he alth and safety hazards associated with their use, 
or as a result of prevailing deceptive practices.18 
57. For imported products, conformity assurance pr ocedures may be completed either by the 
exporters, in the exporting country, through a cer tification/inspection body (CIB) approved by PAI 
(four CIBs have been approved);  or by importe rs, who complete conform ity procedures upon arrival 
of consignments at Kuwaiti ports, through KUCAS  Conformity Unit under the KOWSMD.  In order 
to avoid “full testing” of frequently exported/im ported regulated products, the exporter/importer may 
apply for a Technical Evaluation Report (TER) or a Technical Evaluation Certificate (TEC), valid for 
two years. 
58. Consignments of regulated products that ha ve obtained a TEC/TER are subject to selective 
technical inspection.  After inspection, the Confor mity Unit issues a Certificate of Clearance (CoC), 
the importer may obtain customs clearance, and th e products are allowed for sale on Kuwait market. 
If the product fails the test, it is considered as non- conforming and a re-export order is issued.  The 
importer must show evidence that the consignmen t has been re-exported within two weeks of the 
order. 
59. For regulated products considered high risk by the KUCAS' Risk Assessment System, the 
Conformity Unit must conduct market surveillance on samples picked up randomly in the market.  
This is done in cooperation with the Directorate of  Consumer Protection in the Ministry of Commerce 
and Industry.  If the product fails to meet applicab le standard requirements, a product recall or re-
export order is issued.  According to the author ities, the Risk Assessme nt System takes into 
consideration several risk factors:  type of product (process or batch pr oduction versus non-process), 
compliance history as determined in pervious c onsignments and through market surveillance, 
confidence in the product (whether the exporting country adheres to international standards and 
conformity assessment procedures), application of quality management system by the manufacturer 
(such as ISO 9001 or equivalent), and the frequency of consignments. 
60. Some regulated products are exempted from KUCAS conformity procedures:  products 
holding the Kuwait Quality Mark;  diplomatic cars imported by foreign embassies;  products imported 
in small non-commercial quantities;   products imported on a temporary basis (e.g. for display 
purpose);  products forming contents of large industr ial or government projects.  In addition, the GSO 
issues GCC certificates for road vehicles and ty res, both of which are exempted from KUCAS 
conformity procedures. 
61. Locally manufactured regulated products that do not have a Kuwait Quality Mark licence are 
subject to the same conformity procedures as impo rted products.  If the product fails to meet the 
requirements of the applicable technical regula tions, a Production suspension and product recall order 
is issued.  The manufacturer must rectify the defi ciencies in all stock a nd recalled products before 
being allowed to re-market them.  If this is not feasible, the manufacturer must either destroy the 
products, or export them to countries whose st andards consider these products as compliant 
(according to the authorities, this has never happe ned in practice).  A manufacturer must obtain 
Approval to Market for his product, without which he cannot renew his annual manufacturing license.  
                                                      
18 When assessing the risks and hazards involved, the PAI considers the apparent hazards in the 
product;  information receive d about accidents and injuries to consum ers in Kuwait and ne ighbouring Gulf 
countries, as well as information from  several product recall databases in the United States, U.K., Australia, and 
other countries;  technical regulation status of the relevant product in the United States, Canada, EU, and 
Australia;  and extent of voluntary compliance of produc ts and the prevalence of deceptive practices assessed by 
the market surveillance activities carried out by the PAI. The State of Kuwait WT/TPR/S/258 
 Page 37 
 
 
This approval is only granted to manufacturers whose products are compliant with KUCAS, or the 
Kuwait Quality Mark Scheme. 
62. The Kuwait Quality Mark is a voluntary system assuring the quality of products.  
Manufacturers may request a Quality Mark on their products from the Quality Control and 
Development section of the PAI.  A Quality Mark is valid for one year;  after that the product must be 
re-evaluated and re-inspected in the factory.  Manufacturers must to pay for the Quality Mark:  
KD 225 for the first year of a new application, and KD 80 for annual renewal. 
TBT notifications 
63. Up to 13 October  2011, Kuwait had made 69 notificati ons of standards and technical 
regulations to the WTO;  56 were notified under Article 2.9 of the TBT Agreement, 52 by the 
Standards and Metrology Department (KOWSMD), and the other 4 by the PAI directly.  The period 
for comment for these notifications was 60 days.  Around 70% of the notifications were on technical 
regulations (i.e. mandatory);  more than half re lated to motor vehicles, while the rest covered 
foodstuffs, and halal food. 
64. Between January 2008 and October 2011, WTO Members raised one concern in the TBT 
Committee over Kuwait's technical regulations.19   Australia encouraged GCC members to nominate 
one member to act as a single TBT notification authority on behalf of the GSO or the GCC Secretariat.
20  Kuwait authorities noted that they agreed with Australia's comments. 
(b) Sanitary and phytosanitory requirements 
65. Kuwait adopts the GCC Laws on Veterinary Qu arantine and Plant Quarantine, aiming to 
protect human, animal, and plant life and health. 
66. The Public Authority of Agriculture Affair s and Fish Resources (PAAF) is the national 
enquiry point under the WTO SPS Agreement.21  Kuwait is a member of the OIE (World 
Organization for Animal Health), IPPC (Internati onal Plant Protection Convention), and CODEX (the 
Codex Alimentarius Commission).  The authorities stated that SPS requirements in Kuwait are based on international standards. 
67. An importer of animals and animal products, and plants and plant products must register with 
PAAF to obtain import permission;  an official sanitary or phytosanitary certificate is required from the exporting country.  PAAF conducts testing/inspec tion through its legal entity at the border, in 
accordance with the GCC SPS laws.  According to the PAAF, it bears the cost of conformity 
assessments and inspections.  If a consignment is not in conformity with SPS requirements, the 
importer may either destroy the consignment or re-export within a maximum of one week. 
68. In accordance with the GCC Veterinary Quaran tine Law, animals suspected of having been 
infected with an epizootic or contagious disease must  be held in quarantine for a period not less than 
the incubation period for the epizootic disease, in orde r to allow the necessary tests to be carried out.  
In accordance with the GCC Plan t Quarantine Law, if an imported item presents any risk of 
introducing or spreading pests, the competent aut hority may require the item to undergo appropriate 
                                                      
19 WTO document G/TBT/GEN/74/Rev.6, 19 October 2010. 
20 WTO document G/TBT/M/49, 22 Dec 2009. 
21 Animal health affairs are the responsibilities of  Department of Animal Health, Animal Quarantine 
Section.  Plant wealth affairs are the responsibilities of Department of Re search and Nursery, Plant Quarantine 
Section, Plant Protection and Pest Controlled Section, Soil and Water Section. WT/TPR/S/258 Trade Policy Review 
Page 38 
  
treatment to remove the risk within  one week;  to be re-exported to the originating country or another 
country;  or to be destroyed by a means specified in the notice. 
69. The PAAF is also in charge of issuing phyto sanitary certificates for e xporters of animals and 
animal products, and plants and pl ant products.  An exporter/re-exporte r must submit an application to 
the PAAF, to obtain a phytosanitory certificate.  Cons ignments must be exported within one week of 
issuance of the phytosanitory certificate. 
70. Imports of foodstuffs of animal origin must  be inspected by municipal officials, while 
medicines and drugs are subject to laboratory testi ng by the authorities in the Ministry of Public 
Health.22 
71. Kuwait has made three notifications under the Agreement on the Application of Sanitary and 
Phytosanitory Measures (Table III.6).  All the notif ications were made by the PAAF, and were on 
emergency measures. 
Table III.6 
Notifications on sanitary and phytosanitary measures, 13 October 2011  
Date of 
notification
/symbol of document Products covered Objective/rationale Nature of the urgent 
problem(s) and reason for 
urgent action Regions/countries 
likely to be 
affected International 
standard 
applicable 
30/05/2007 
G/SPS/N/KWT/1 Live birds, their 
products (including poultry meat, day-old 
chicks, eggs) and 
by-products Food safety, animal 
health, and protect humans from animal disease, to prevent the 
entry of avian influenza 
virus Import restriction imposed due 
to the reported detection of highly pathogenic avian influenza (HPAI) virus serotype 
H5N1 in Kuwait All countries OIE 
31/07/2009 
G/SPS/N/K
WT/2 Live birds, their 
products 
(including poultry meat, day-old 
chicks, eggs) and 
by-products Food safety, animal 
health, and protect 
humans from animal disease, to prevent the 
entry of avian influenza 
virus Import restriction imposed due 
to the reported detection of low 
pathogenic avian influenza (LPAI) virus serotype H7N9 in 
the State of Kentucky, United 
States United States, 
State of Kentucky OIE 
31/07/2009 
G/SPS/N/K
WT/3 Equine breed Food safety, animal 
health, and protect 
humans from animal disease, to prevent the 
entry of equine influenza 
virus Import restriction imposed due 
to the reported detection of 
highly pathogenic equine influenza (HPEI) virus serotype 
H3N8 in India India OIE 
 
Source:  WTO documents;  and information provided by the Kuwaiti authorities. 
72. According to the authorities, import restricti ons were imposed temporarily in 2010 due to 
reported HPAI virus serotype H5N1 in Romania and Denmark. 
73. Kuwait has signed bilateral/regional agreemen ts covering SPS measures with: Algeria, 
Argentina, Australia, Bulgaria, Egypt, Indonesi a, Iran, Jordan, Laos, Mongolia, Morocco, Sudan, 
Syria, Turkey, Tunisia, Viet Nam, Yemen, and ICARDA.  
(c) Labelling and packaging requirements 
74. Kuwait has three technical regulations coveri ng labelling of pre-packaged foodstuffs, food 
additives, and packaged tobacco products.  All packaging containing foods should have a sticker 
                                                      
22 Kuwait Chamber of Commerce and Industry online information.  Viewed at:  http://www. 
kcci.org.kw/. The State of Kuwait WT/TPR/S/258 
 Page 39 
 
 
showing the name of the product, the contents, the ne t and gross weights, the country of origin, date 
of production, and date of expiry in Arabic.  In general, labels must be in Arabic and any other 
language. 
75. Technical regulations are applied on the p ackaging of non-returnable glass bottles for 
carbonated beverages, tea and herbs bags, and food packages.  A voluntary standard applies to the 
production, processing, labeling a nd marketing of organically pr oduced food;  and a standard 
(GSO150:2007) on shelf life covers expiry pe riods for food products, which includes both a 
mandatory and a voluntary expiry period.  Accord ing to the authorities, this standard is under 
modification.  
76. Kuwait has two technical regulations on halal f ood.  One is a general requirement that must 
be followed when producing, preparing, dealing, and storing halal food and its products;  the other is a 
guideline for halal food certification bod ies and the accreditation requirement. 
77. Currently, genetically modified organisms (G MOs) are not allowed to be imported into 
Kuwait. 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
78. Kuwait maintains simple export procedures.  Acco rding to the authorities, any natural persons 
or legal entities, Kuwaiti, GCC or foreign, may export  in Kuwait.  The same declaration, registration, 
and documentation requirement s apply as for imports. 
(ii) Export prohibitions and licensing 
79. Kuwait prohibits the following products from exportation, for economic, safety, security, and 
environmental reasons, and to ensure compliance with international obligations (Table III.7). 
Table III.7 
Products banned from exportation, 2011  
HS code Description 
11010010 Wheat or meslin flour  
Chapter 93 Arms and ammunition; parts and accessories thereof 
01041090, 01041010,  Live sheep and goats 
10030000, 10059090 
10059030, 10059020 
10059010  Maize (corn), barley, bran 
Chapter 97 Works of art, collectors’ pieces and antiques 
03062300, 03061300 Crustaceans, whether or not in  shell, live, fresh, chilled, frozen, dried 
0303, 0302,0301 Live fish, fresh, chilled or frozen 
73251010, 8544 Other articles of iron and steel, cable 
1006, 1512, 2940, 0401, 0402, 
0403, 0702, 1104 Rice, sugars, sunflower-seed oil, milk and crea m, cereals grains otherwise worked, tomatoes, 
fresh or chilled 
 
Source:  Information provided by Kuwait Customs. 
80. Certain goods require an export licence from the competent authorities (Table III.8). 
81. Kuwait does not apply export quotas. WT/TPR/S/258 Trade Policy Review 
Page 40 
  
Table III.8 
Export licensing  
HS code Description Authority Rationale 
Chapter 27 Mineral fuels, mineral oils and products of their 
distillation; bitumen substances; mineral wax Kuwait Petroleum 
Corporation "Strategic" 
products 
Chapters 1, 2, 3, 4, 7, 8, 9, 10, 11, 15, 17, 18, 
19, 20, 21, 2201, 2002  Foods Kuwait Municipality Health, SPS 
09082000 
12079100 12079910 
12079920 
12113000 12114000 12119020 
12119060 
13021100 13021910 29399110 Oil seeds, oleaginous fruit, manufactured Ministry of Health Health 
2844 Radioactive isotopes Ministry of Health Health 
90182000, 9022 Apparatus based on the use of X-rays or of alpha Ministry of Health Health 
28416100 
29143100 29163400 
29163500 
29224300 29329100 29329200 29323000 
29329400 
29333200 29394100 29394200 29396100 
29396200 
29396300 Psychotropic substances Ministry of Health Health 
Chapter 3 Fish, crustaceans and aquatic invertebrates Public Authority of 
Agriculture and Fish Resources (PAAF) SPS 
23099010 Preparations of a kind used in animal feeding PAAF SPS 
Chapters 1, 41, 5, 4301, 
4302, 4303 Animal ecology and leather PAAF SPS 
9706 Antiques of an age exceeding 100 years Dept. of Antiques 
and Museum Culture 
71181000 Coin (other than gold coin), not being legal tender Central Bank Security 
Chapter 0101 Live horses PAAF SPS 
3825 Residual products of chemic al or allied industries Environment Public 
Authority Protecting 
environment 
3915 Waste, parings and scrap, of plastics Environment Public 
Authority Protecting 
environment 
40170010 Including waste and scrap; articles of hard rubber Environment Public 
Authority Protecting 
environment 
Chapter 30 Pharmaceutical products Ministry of Health Health 
8506-8507 Primary cells and primary batteries Environment Public 
Authority Protecting 
environment 
27101901 Engine oil Environment Public 
Authority Environment 
protection 
Table III.8 (cont'd) The State of Kuwait WT/TPR/S/258 
 Page 41 
 
 
HS code Description Authority Rationale 
7204, 7404, 7503, 
7602, 7802, 7902, 8002, 81019700 
81027900 
81033000 81042000 81053000 81060000 
81073000 
81083000 81093000 81102000 81121300 
81122200 
81125200 81130000 Ferrous waste and scrap Ministry of Energy 
Ministry of Defence Environment 
protection 
 
Source: Information provided by Kuwait Customs.  
(iii) Export duties, duty concessions, and subsidies 
82. Kuwait applies no export taxes, charges, or levies. 
83. According to the authorities, Kuwait applies no  export subsidies.  Kuwait notified that it 
provided no export subsidies to agricultural products from 1995 to 201023, and no export subsidies to 
agricultural products were provided in 2011. 
84. The Arab Investment and Export Credit Guaran tee Corporation, through an MOU with the 
PAI, provides insurance to exporters for commercia l and non-commercial risks.  It aims to promote 
capital mobility in Arab countries and to enhance Arab exports worldwide, by providing guarantee 
coverage to Arab and non-Arab investments in its  member countries against non-commercial risks, 
and by providing export credit guarantees against co mmercial and non-commercial risks.  In 2010, of 
a total value of US$768 million export credit co ntracts, 8% (US$65 million) were for Kuwait 
exporters.24  Loans are not subject to any interest rates, although the Corporation charges some fees 
(depending on the project). 
85. Exporters may obtain a credit line from the Is lamic Development Bank (IDB).  Between 1976 
and 2010, Kuwait exporters obtained a total of US$1.4 billion from the IDB, of which 80% went on 
trade financing.25  The Islamic Corporation for the Insuran ce of Investment and Export Credit (ICIEC) 
provides export credit guarantees to member states.   It also provides member states investment 
insurance and guarantees against non-commercial risks. 
(iv) Export promotion and marketing assistance 
86. The Ministry of Commerce and Industry promotes Kuwaiti exports through export 
exhibitions, financed jointly by the MCI, PAI, a nd Kuwait Chamber of Commerce.  In 2009, the MCI 
agreed to establish 113 exhibitions, of which 6 were held abroad;  74 of the 107 exhibitions in Kuwait 
were private exhibitions.26 
                                                      
23 WTO documents G/AG/N/KWT/1, 28 July 2010, and G/AG/N/KWT/2, 21 March 2011. 
24 Arab Investment and Export Credit Guarantee Corporation (2011), p.17. 
25 IDB (2011), Table 2. 
26 Ministry of Commerce and Industry (2010), p. 51. WT/TPR/S/258 Trade Policy Review 
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87. The PAI has signed bilateral agreements to promote exports, with Jordan, Morocco, Oman, 
Syria, and Tunisia;  the parties agree to promote their national exports by facilitating the participation 
of private/public sectors in international exhi bitions, and organizing conferences, seminars, and 
discussions.  
88. The PAI's Industrial Establishment Exports De velopment Programme, is aimed at increasing 
the share of Kuwaiti industrial exports in interna tional markets, by providing accurate and updated 
market information;  developing training programm es for the national labour force;  and creating new 
opportunities for Kuwaiti export products. 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation and subsidies 
89. Tax revenue accounts for a very small portion of government revenue in Kuwait;  most 
government revenue comes from oil income.  In  2009/10, tax revenue accounted for about 1.7%  of 
total government revenue, while oil inco me accounted for 93.7% (Table III.9).27 
90. Kuwait does not levy value-added tax, or excise  tax.  Major taxes include taxes and fees on 
trade (including tariffs), corporate income tax (fo r foreign companies), and national labour support tax 
(Chapter II(3)(ii)).  While foreign companies are s ubject to corporate income tax, Kuwaiti (and GCC) 
companies are not. 
Table III.9  
Tax revenue and percentage in total taxes, 2006-10 
(KD million) 
  2006/07 2007/08 2008/09 2009/10 Share in total 
gov. revenue 
(2009/10) 
Total government revenue 15,509 19,022 21,005 17,688 100% 
Tax revenue 287 355 349 296 1.7% 
Indirect taxes 205 246 227 202  1.14% 
Fees on properties 13 20.5 10 9 0.05% 
Fees on goods and services 1.8 2.3 2 1.9 0.01% 
Taxes and fees on trade 190 224 214 190 1.1% 
Direct taxes 82 111 127 94 0.5% 
Zakat 0 0.17 4.5 16 0.1% 
National labour support tax 49 72 79 31 0.2% 
Corporate income tax 33 38 43 47 0.2% 
Other major government revenue 14,511 17,719 19,710 16,584 93.7% 
Total government expenditure 10,306 9,698 18,262 11,250  n.a. 
 
n.a. Not applicable. 
 
Source : Ministry of Finance. 
91. According to the authorities, Kuwait mainta ins no trade-related investment measures. 
92. The Government has adopted a welfare state model since independence in 1961.  People 
receive a number of free social services (e.g. health care and education), while paying a small fraction 
of the cost of public services (e.g. communications, water, and electricity).  Most fees for public 
services have not changed for decades.  
                                                      
27 The remaining 4.6% of government revenue came from services revenues, and miscellaneous 
revenues and fees. The State of Kuwait WT/TPR/S/258 
 Page 43 
 
 
(ii) State trading, state-owned enterprises, and privatization 
93. According to the authorities, Kuwait has no state trading enterprises. 
94. The Kuwait Petroleum Corporation (KPC) is a State-owned corporation run by an 
independent management and Board of Directors.  The KPC conducts its business in accordance with 
commercial considerations and, according to the aut horities, does not influence the level or direction 
of import and export through its purchases or sales. 
95. The public sector is Kuwait's largest employer  with 76% of the Kuwaiti labour force working 
in the sector.  The State has a direct and strong in fluence in the economy:  it fully owns companies 
such as the Kuwait Petroleum Corporation (KPC), an d the petroleum sector accounts for half of GDP.  
The State also has full/majority ownership in the te lecoms, banking, and electricity generation sectors.  
The authorities provided a list of selected SOEs w ith full/majority state ownership (Table III.10), 
although the share of SOEs in the economy in term s of contributions to GDP and employment was not 
available. 
96. The Government considers privatization as a me ans of increasing State revenue, and help the 
economy to diversify from oil.  Under Law No. 37 of 2010 Regarding the Organization of the 
Privatization Programs and Operations (Privatizati on Law), a Technical Bureau is expected to be 
established soon, to consider details  on how to implement the Privatization Law in Kuwait.  Ministry 
of Finance is working with the World Bank throug h technical assistance programme to prepare a 
Kuwait privatization vision;  a guidebook on the dr afting of an implementing regulation;  and to 
establish a technical bureau. 
97. Even before the Privatization Law is implemente d, progress has been made in privatization.  
For example, the Kuwait Airways Corporation (KAC) is undergoing transition to a private shareholding company pursuant to Law No. 6 of 2008 (Regarding Conversion of KAC into a Joint 
Stock Company).  Also, the Kuwait Stock Exchange is  to be privatized in accordance with the Capital 
Markets Law (Law No.7 of 2010) (Chapter IV). 
Table III.10 
Selected SOEs, 2011 
SOEs Government 
share (%) Major activities 
Kuwait Investment 
Company 76.194% - Investing and trading in stock exchange 
- Investing in real estate market - Writing bills and issuance of  the certificate of deposit 
- Accepting term deposits and investing in financial institutions 
- Contracting foreign currencies - Organizing international, re gional and local exhibitions 
- Managing the portfolio of customers 
 
Kuwait Public 
Transport Company 100% - Public transport including road transport inside and outside of Kuwait, and sea 
 transport among Kuwaiti islands 
- purchasing, using and selling vehicles and any necessary means of transport for sea 
 and land public transport 
- Building industries related to public transport for sea and land transport 
- Renting any means of transport for the services of sea and land public transport 
 
National Offset Company 100% - Managing offset programme in the name of Ministry of Finance 
- Guiding foreign companies to carry ou t their liabilities to the Kuwait offset 
 programme by implementing long-term part nerships in the Kuwait private sector, 
 and guaranteeing transparency 
- Encouraging and attrac ting foreign investment 
- Supporting the private sector in the national economy 
 
Table III.10 (cont'd) WT/TPR/S/258 Trade Policy Review 
Page 44 
  
SOEs Government 
share (%) Major activities 
Kuwait Real Estate 
Investment Consortium 99.127% - Coordinating real estate companies in Kuwait 
- Investing in real estate for profit - Building construction, and importing and trading materials related to building 
- Establishing the management of hotels, cl ubs, restaurants, coffees, motels, chalets, 
 and all facilities of tourism, sport and entertainment - Investing in other real estate companies 
- Managing the properties of third parties 
- Establishing real estate companies in other countries, to strengthen Arab and 
 international cooperation 
 
Touristic Enterprise 
Company 99% - Entertainment projects 
- Establishing and managing entertainment centres, including amusement parks 
- Managing tourism projects 
- Establishing and managing hotels and ente rtainment places with cooperation of 
 hotel companies 
 
National Technology 
Enterprise Company 100% - Establishing or participating in priv ate projects with international technology 
- Helping the development of technical  skills and technology, and encouraging 
 citizens to engage in advanced technology projects 
- Studying the highly automated industrial, commercial, professional, occupational, 
 and service projects - Employing national labour force, and providing with the needed experts  
- Establishing, participating in portfolios 
 
Source : Ministry of Commerce and Industries. 
98. According to the Kuwait Investment Authorities (KIA), the privatization process has been 
conducted through ownership transfer , and the Government retains 24% of the shares of the new 
company, with the rest divided between a strategi c partner, and the public.  The KIA, as a passive 
investor, has some influence on the Board of Directors.   In parallel, efforts have also been made to 
encourage competition, to avoid having a private company replacing a public company as a monopoly. 
99. Through privatization, the Gove rnment intends to increase the share of the private sector in 
the economy;  it currently accounts for 25% of GDP.
28  In particular, the aim is to increase the share 
of private investment in tota l investment from 31% in 2009/10 to 49% in 2011/12 (Table III.11). 
Table III.11 
Public and private sectors in the economy, 2009-12 
 2009/10 2010/11a 2011/12a 
Total investment (KD Million)  6,172.8 7,712.6 8,265 
Government investment/total i nvestment 68.5% 64.8% 51.1% 
Private investment/total investment 31.5% 35.2% 48.9% 
 
a Estimates. 
 
Source : Information provided by the Kuwaiti authorities. 
(iii) Government procurement 
100. According to the authorities, the main objectiv e of government procurement in Kuwait is to 
achieve the best value for money, and to maxi mize competition through transparency and unbiased 
procurement procedures. 
                                                      
28 Oxford Business Group (2011), p.24. The State of Kuwait WT/TPR/S/258 
 Page 45 
 
 
(a) Legislative framework 
101. Government procurement is regulated under Ci rcular 16 of 1995 on Purchasing Systems of 
State Authority, Circular of Collective Purchasing, and Law No. 37 of 1964 concerning Public Tenders (Table III.12).  Procurement by state-owned en terprises, or public utilities, is not considered 
part of government procurement in Kuwait.  This section focuses on government procurement above 
KD 5,000 and regulated under Law No.37 of 1964. 
Table III.12 
Government procurement methods and corresponding legislation 
Procurement methods and description Legal instruments Threshold Value 
2008/09 Value 
2009/10 
  Kuwaiti dinar (KD) 
Direct order 
An order to the supplier to provide the state authority 
with materials or services Circular 16 of 1995 on 
Purchasing Systems of 
State Authority < 2,000 19 million 16 million 
Tender with lower threshold 
Bids submitted by more than one supplier, for goods 
or services;  selection is through the purchasing 
committee in the state authority 
(Mumarasah) Circular 16 of 1995 on 
Purchasing Systems of 
State Authority 2,000-5,000 5 million 7 million 
Collective purchase 
Special requirements of materials and services,are 
standardized for a group of government authorities.  
The standardized requirements are announced by the 
Collective Purchase Committee under the Ministry of Finance Circular of Collective 
Purchasing < 5,000  
(if over KD 5,000, 
Central Tenders 
Committee must 
approve) 6 million 3 million 
Tender 
Buying materials and services that are not 
monopolized or controlled by administrated pricing;  
process through the CTC Law No. 37 of 1964 on 
Public Tender > 5,000 2009: 
2,709 
million 2010:  
4,783 
million 
 
Source:  Information provided by the Kuwaiti authorities. 
102. Public procurements above KD 5,000 are supe rvised and managed by the Central Tenders 
Committee (CTC), which was set up under Law No. 37 of  1964.  The threshold is the same for goods, 
services, and works.  The CTC, affiliated to the Cabinet, comprises six full-time independent 
members appointed by the Council of Ministers, as well as representatives from, inter alia , the 
Ministry of Finance, FATWA (Legislative Departme nt), and the General Secretariat of the Supreme 
Council for Planning and Development. 
103. Annual government procuremen t managed by the CTC was KD 4,783 million (12% of GDP) 
in 2010, up from KD 2,709 million (9% of GDP) in 2009 (Table III.13).  The authorities do not have 
data on the annual value or proportion of proc urement of foreign products and services. 
104. Kuwaiti suppliers, or non-Kuwaiti suppliers with  a Kuwaiti partner or agent may submit 
tenders.  Suppliers must register with the CT C, the Kuwait Commercial Registry, and the Kuwait 
Chamber of Commerce.  Suppliers of construction works are classified into the following categories 
after registration:  category I – suppliers that ha ve the ability to undertake projects with initial cost 
exceeding KD 1 million (but less than KD 5 million);  category II – suppliers with technical and financial abilities to participate in tenders not exceeding KD 1 million;  category III – local suppliers 
with total works value not exceeding KD 500,000;  category IV – local suppliers with total works 
value not exceeding KD 250,000.  After one year of  classification, the supplier may ask the CTC to 
reconsider the classification category, and transfer to a higher category.  WT/TPR/S/258 Trade Policy Review 
Page 46 
  
Table III.13 
Government procurement value, 2009-11 
(KD million) 
Procurement 2009 2010 2011 (April–August) 
Total 2,708.8 4,783.3 1,717.5 
Procurement by public administrators 1,998.9 2,281.8 1,605.0 
Procurement by oil companies 709.9 2,501.6 112.5 
 
Source : Information provided by the CTC. 
(b) Procedures 
105. The Government allows a 10% price preference  for local products and 5% for GCC products.  
However, if no Kuwaiti company is participating in a tender, GCC products are treated as Kuwaitis 
and receive a 10% price preference. 
106. For procurements managed by the CTC, two procurement methods are used:  open tendering 
and restricted tendering.  The Ministry of Fina nce must approve the projects, and FATWA reviews 
contracts above KD 75,000.  For open tendering, a dvertisement is open; for restricted tendering, 
advertisement is to a list of registered contractors or suppliers (usually more than six).  The State 
Audit Bureau must review contracts above KD 100, 000 before they are signed.  According to the 
authorities, restricted tendering accounts for more th an half of all governme nt procurement managed 
by the CTC, as most mega projects are awarded to a list of international companies.  
107. The CTC awards tenders to bidders who submitte d the lowest total price if the quality is 
satisfactory.  The CTC may award a tender to the bi dder who offered a higher price if the lowest price 
offered is unreasonably low. 
108. Any interested party has the right to appeal against the CTC's decisions, and the CTC must 
hold a meeting to discuss the grievance urgently.  The Council of Ministers makes final decisions.  
The CTC noted that 813 grievances arose during September 2010 to August 2011, and all the cases 
were addressed during the meetings of the CTC. 
109. To ensure transparency in government procurem ent, according to the authorities, information 
on government procurement should be made ava ilable publicly, through CTC online announcement.29  
In addition, Law No. 25 of 1996 on the Disclosure of Commissions requires transparency and 
accountability in all government contracts exceedi ng KD 100,000.  Under the Law, the contracting 
party must declare whether it has paid, or will pay a commission of any kind to a disclosed or 
concealed intermediary.  The Law also requires both the payer and the payee to disclose, separately, 
the amount of the commission, the type of the currency, and the place and the manner of the 
commission.  Any actions of non-disclosure or misi nformation result in sanctions ranging from civil 
and criminal penalties, to imprisonment.30 
(c) International agreements on government procurement 
110. Kuwait is not a party, nor an observer, to the WTO Plurilateral Agreement on Government 
Procurement (GPA). 
                                                      
29 The CTC website is:  www.ct c.gov.kw (only in Arabic). 
30 Kuwait Foreign Investment Bureau online information, "Investors Guide".  Viewed at:  
http://www.kfib.com.kw/kfibclient/clientpages/Index.aspx?id=64 [10.01.2011]. The State of Kuwait WT/TPR/S/258 
 Page 47 
 
 
111. The GCC has signed two bilateral agreements covering government pr ocurement, i.e., FTAs 
with EFTA and with Singapore.  Under the GCC– EFTA FTA, for a transition period of ten years, 
GCC countries may provide price preferences of 10 % to goods of domestic origin.  For Kuwait, 
government procurement refers to purchases by central government entities (except Defence and 
Interior), with thresholds of SDR 400,000 fo r goods, SDR 400,000 for services, and SDR 5 million 
for construction services.  Kuwait includes no public  utilities or SOEs, but includes public authorities, 
Kuwait University, Port Authority, Kuwait Institute  for Research, with thresholds of SDR 400,000 for 
goods, SDR 800,000 for services, and SDR 5 million for construction services. 
112. The GCC–Singapore FTA has the same arrangement for governme nt procurement, with the 
same coverage of entities and the same thr esholds.  Further, under the GCC–Singapore FTA, 
Singapore enterprises may participate in Kuwait's government procurement market with the same 
10% price preference as for local firms. 
(d) Exceptions 
113. Kuwaiti government agencies may request permi ssion from the CTC to conduct particular 
tenders outside the Public Tenders Law; according to  the government online information, this rarely 
occurs.31  Military procurement by the Ministries of Defence, Interior, and National Guard is 
excluded. 
114. Procurement by oil and petrochemical compan ies may be excluded from the Public Tenders 
Law.  However, specific rules cover purchases by  the Kuwait Oil Company (KOC), Kuwait National 
Petroleum Company (KNPC), Kuwait Oil Tanker Co mpany (KOTC), and Petrochemical Industries 
Company (PIC):  purchases of products/services/cons truction works with a value above KD 5 million, 
or purchases whose value changes by more than 10% of  the contract value, must be managed by the 
CTC under the Public Tenders Law. 
(e) Offset programmes 
115. The Government plays a big role in the economy, and government contracts are of significant 
weight.  To facilitate the devel opment of a private sector, Kuwait's offset programme requires foreign 
firms that win government contracts above certain thresholds to make an investment that will add 
value to the economy.  Primary objectives of offset  programme includes the transfer of advanced 
technology, creation of job opportunities for Kuwaiti nationals, and provision of training for Kuwaitis. 
116. The offset programme commenced in 1992 when the Council of Ministers established a 
Counter-Trade Offset Programme (Offset Progr amme) through its Decisi on No. 694.  Between 2004 
and August 2005, the programme was suspended, as in many cases offset obligations had not been 
fulfilled.  The offset obligation was reinstated in August 2005, and in Ma rch 2006 a National Offset 
Company (NOC), a state-owned shareholding corpora tion, began to manage the offset programme on 
behalf of the Ministry of Finance.  NOC works w ith foreign contractors by reviewing and approving 
their offset proposals and ensuring their offset obligations are fulfilled. 
117. For foreign firms, offset obligations apply to military contracts of KD 3 million and above, 
civilian contracts of KD 10 million and above, and oil and gas contracts (with the exception of 
                                                      
31 Kuwait Government online information.  Viewed at:  http://www.e.gov.kw/sites/kgoenglish/portal/ 
Pages/Visitors/DoingBusinessInKuwait/G overningBodyOverView.aspx [25/01/11]. WT/TPR/S/258 Trade Policy Review 
Page 48 
  
exploration and production contracts).  Since 1992, 112 offset contracts have been signed;  defence 
contracts accounted for 60%.32 
118. Before they may receive government contracts Fo reign firms must invest 35% of the contract 
value in an approved offset business venture.  Offset  investment can be either direct or indirect.  
Direct investment involves projects in which forei gn contractors help the Government to acquire and 
deploy new technologies, or to train Kuwaiti citizen s in their use, such as establishing a laboratory, 
training programme on high technology equipment or so ftware.  Indirect investment involves projects 
that help the Government develop the private sect or, such as grants or donations to approved and 
licensed organizations in Kuwait providing educationa l, health care, and public services.  The NOC 
uses a multiplier system to encourage offset project s in the most needed areas.  A higher multiplier 
value means a smaller financial obligation for the foreign firm.  Projects in health, education, 
environment, social, manufacturing, and services typically receive higher multiplier values, and direct 
projects are given a higher multiplier value than indirect ones. 
119. Foreign contractors subject to offset must  provide an unconditional and irrevocable bank 
guarantee, equal to 6% of the contract value.  The bank guarantee is to ensure that foreign contractors 
implement their offset obligations.  The value of  the bank guarantee is reduced gradually until the 
obligation is fulfilled and the guarantee is cancelled. 
(iv) Competition law and price controls 
(a) Competition law 
120. In April 2007, Kuwait National Assembly appr oved the Law for Protecting Competition (No. 
10, 2007), regulating competition policy issues.  Ho wever, this Law does not apply to facilities and 
projects owned or managed by the State;  thus, its scope is limited to private businesses. 
121. The aim of the Law is to ensure fair comp etition in the market, protect consumers and 
producers, and provide legal and fair principles a nd rules to encourage investment and stimulate 
business activities.  The authorities state that the impl ementing regulation is still  awaiting ratification.  
At the same time, the GCC is preparing a comm on Anti-Unfair Competition Law, which will replace 
Kuwait's competition law. 
122. The Competition Law prohibits any agreements, contracts, practices or decisions that 
adversely affect competition.  These include fixing prices, restricting the free flow of products, selling 
below cost, bid rigging, sharing or allocating mark ets, and eliminating equal opportunities between 
competitors through preferring some to the others.  Violations are subject to a penalty of KD 100,000 
maximum, or equal to the amount of realized ille gal gains, whichever is higher.  The relevant 
commodities may be confiscated. In case of repetition of violation, the penalty is doubled.  The 
business may be suspended for a maximum of three years.  
123. Some anti-competitive behaviours may be allowe d, provided they may achieve certain and 
specific benefits for consumers, and the benefits are greater than the negative impact of restriction of 
competition.  The Ministry of Commerce and Industr y determines whether spec ific behaviours can be 
exempted. 
124. The Law applies to the abuse of IPRs, trade ma rks, patents, and publishing rights if these 
rights have resulted in an adverse effect on competition. 
                                                      
32 Oxford Business Group (2011), p. 26. The State of Kuwait WT/TPR/S/258 
 Page 49 
 
 
125. A Competition Protection Authority is to be estab lished and will report to the Minister of 
Commerce and Industry.  Mergers and acquisitions must  be notified if the combined market share is 
more than 35%.  The Authority must examine and decide on such mergers and acquisitions, against a 
fee of 0.1% of the paid-up capital, or the total va lue of assets of the respective persons, whichever is 
less, subject to a maximum of KD 100,000. 
(b) Price controls 
126. With some exceptions, prices of goods and services are freely determined by the market.  The 
Government controls the prices of public utilities such as electricity and water, as well as public 
transportation prices.  Domestic calls on the fixed- line network are free, and calls from fixed-line to 
mobile phones in Kuwait are free.  The Government also subsidies food for food security reasons.  The regulated prices are applied to all cons umers, regardless of their nationality.   
(v) Intellectual property rights 
(a) Legal framework 
127. Under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights 
(TRIPS), Kuwait must pass intellectual property la ws that meet the minimum standards for the 
protection and enforcement of intellectual prope rty rights set out in the Agreement.  Other 
international treaties on IPRs that Kuwait has signed,  as well as its national legislation are listed in 
Table III.14. 
Table III.14 
IPR legal framework 
Area Description 
International conventions Convention Establishing the WIPO, signed in 1998 
Arab Convention on Copyright Protection, signed in 1981 
GCC GCC Patent Law, 1998 
The GCC is preparing a common law on trade marks; which will replace corresponding national 
laws of GCC members 
Kuwait national legislation  
Copyright Law on Copyright and Neighbouring Rights (L aw No. 64 of 1999).  Kuwait has drafted a new 
copyright law under the MCI, it is before  the competent authorities for approval 
Patent, designs and industrial 
models Law on Patents, Designs and Industrial Models (L aw No.4 of 1962 and amended by Law No.3 of 
2001) 
Trade marks Articles 61-85 of the Law of Commerce No. 68 of 1980 (as amended by Law No.1 of 2001) 
Geographical indications Article 62.3 of the Law of Co mmerce No. 68 of 1980 (as amended by Law No.1 of 2001) 
Major responsible agencies 
MCI Patents, designs, industrial models, copyri ghts, trade marks, geographical indications 
National Council for Arts, 
Culture and Letters Intellectual property rights regarding tr aditional knowledge and traditional cultural 
expressions/folklores.  The Council is chaired by the Minister of the Ministry of Information 
Customs Enforcement of IPRs at the border 
 
Source: WTO Secretariat, based on information provided by the Kuwaiti authorities. WT/TPR/S/258 Trade Policy Review 
Page 50 
  
128. The Copyright Department moved from the Mini stry of Information, to the Ministry of 
Commerce and Industry (MCI) in 2006, when the MCI became the sole ministry supervising 
intellectual property rights.  The MCI is also the contact point under Article 69 of the TRIPS 
Agreement.33 
129. Kuwait does not provide preferential treatment to  GCC countries or other Arab countries, in 
the area of intellectual property rights.  
130. Kuwait is seeking to diversify its economy away  from oil by attracting foreign investment and 
encouraging the development of the private sector .  The Government believes that IPR protection 
tends to encourage invention and innovation, and enforcing IPR protection against counterfeiting and 
piracy could encourage the development of crea tive industries and promote competition.  The MCI 
aims to foster greater public aw areness of IPRs by coordinating with other government bodies, the 
private sector, and civil society entities. 
131. Compulsory licensing is allowed under copyright  legislation, as regards translation into 
Arabic (Article 16 of Law 64 of 1999).34  It is also allowed for patents, for purposes of state interests. 
132. Parallel import of copyright protected goods is not addressed in the current Copyright Law.  
The authorities state that parallel imports are allowed in respect of trade marks, but not in respect of 
patents and industrial designs. 
133. Kuwait has not adopted any specific procedur es regarding the General Council Decision on 
the implementation of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public 
Health. 
(b) Copyright 
134. Copyright is regulated by Law No. 64 of 1999 (Copyright Law).  Article 43 stipulates that, for 
non-Kuwaiti citizens, copyright protection is limited to  works that are published for the first time in 
Kuwait.  For works of Arab authors, who are c itizens of Members of the Arab Agreement for the 
Protection of Author’s Rights, copyright protectio n is limited to works published in any of those 
Member countries.  If the authors are citizens of WI PO member states, copyright protection is limited 
to works published for the first time in one of those states. 
135. Deposit and registration of works of authorship are not a condition for copyright protection.  
Nonetheless, Ministerial Order No. 30 of 2003 designates the Kuwait National Library as the place for 
depositing and registering works of authorship, wher e copyright and assignment of right applications 
are examined, and the necessary certificates issued .  There is a fee of KD 10 per certificate. 
136. The Copyright Law defines a non-exhaustive list of  protected works (Article 2), and the terms 
of protection of the author's economic rights (Article 17).  These are: 
                                                      
33 WTO document IP/N/3/Rev.11/Add.5, 13 October 2010. 
34 Article 16 of Law 64 of 1999:  "The protection of the right of an author of a work made in a foreign 
language and the right of the translator of that work into another foreign language to translate that work into the 
Arabic language shall lapse if the author  or translator fails to exercise that right within 5 years from the date of 
the first publication of original or translated work.  Ho wever, the Minister of Inform ation may issue a license for 
translation of the work into the Arabic language or publica tion of the work after a year from the date of the first 
publication of the original or translat ed work.  In such case, the author or beneficiary of the translation right 
shall be entitled to a fair compensation".  The State of Kuwait WT/TPR/S/258 
 Page 51 
 
 
 50 years from the death of the author or from th e death of the last surviving author for a 
joint work; 
 50 years from the end of the calendar year of publication for (a) works published under a 
pseudonym or anonymously, unless the author reveals his identity or his true name 
becomes publicly known, in which case the term lapses 50 years after his death;  (b) works in which the owner of the copyright  is a legal personality;  (c) cinematographic 
and photographic works, works of applied art, computer programs and databases;  and (d) 
works published for the first time after the author’s death; 
 50 years from the end of the calendar year in  which the performance or recording took 
place; 
 20 years from the end of the calendar year in which the broadcast of a programme first 
occurred. 
137. In case of infringement or potential infringement of  copyright, at the request of the author or 
the successor, a judge may temporarily suspend the publication, production, or presentation of a work 
(Article 36).  If the judge deems appropriate, he  may order destruction of the illegally published 
copies of the work, and the court may decide comp ensation for the use of such work (Article 38). 
138. Penalty for copyright infringement is detention for a period of one year or a fine of KD 500, 
or both.  Compared to a one-year detention, a fine of KD 500 seems rather low.  According to the authorities, the new copyright law is to address this issue. 
(c) Trade marks 
139. The GCC is preparing a common law on trade marks which will replace corresponding 
national laws of GCC members. 
140. Currently, the Commercial Code (Law No. 68 of  1980 and amended by Law No.1 of 2001) 
governs trade mark registration and penalties for infr ingement.  Article 64 stipulates that any person 
may apply for registration of his trade mark at the Register of Trademarks.  If the Registrar accepts 
the application, the application must be published in  three consecutive issues of the Official Gazette.  
Within 30 days of the publication, any concerne d person may write a notice of objection.  If no 
objection is raised, a certificate of registration is gran ted to the applicant.  It takes approximately six 
months to one year to obtain a registra tion certificate, if no objection is raised. 
141. Registered takes effect retroactively from th e date of submission of the application.  
Protection is for ten years from the date the applicati on is approved.  It may be  renewed for further ten 
year intervals. 
142. A decision by the Registrar to reject or susp end the registration of a trade mark may be 
challenged by the applicant before the Court.  Th e Court may order cancellation of the registration, 
upon application by any persons, if the mark has not b een used effectively for five consecutive years.  
The cancellation or renewal of the registration must be published in the Official Gazette:  a cancelled 
mark cannot be re-registered in fa vour of a third party for the same products, until three years after the 
date of cancellation. 
143. Based on information from the authorities, in 2010,  8,410 trade mark applications were filed 
(Table III.15):  6,402 were foreign trade marks, and 2,008 were Kuwaiti trade marks. WT/TPR/S/258 Trade Policy Review 
Page 52 
  
Table III.15 
Trade marks, 2008-10  
 2008 2009 2010 
Trade mark filling 8,825 7,852 8,410 
Trade mark examination 7,377 9,147 9,263 
Notification of acceptan ce 7,520 9, 086 9,898 
Registered trade marks 6,522 6,954 7,923 
Published Trade marks 7,315 7,602 8,980 
 
Source Ministry of Commerce and Industry (2010), Annual Report 2009, Department of Planning and Research, p. 45;  
 and information provided by the Kuwaiti authorities. 
144. The Law protects well-known marks and provides civil remedies against infringement and 
counterfeit use for owners of unr egistered well-known marks.  Infringers of trade marks may be 
imprisoned for a maximum of three years, or liable to a fine not exceeding KD 600.35  Again, 
comparing to a three-year detention, a fine of KD 600 seems to be low.  The Government is planning 
to modify the penalty through the GCC unified trade mark law. 
(d) Patent 
145. The GCC Patent Law entered into force on 3 October 1998, and a GCC Patent Office was set 
up in Riyadh, Saudi Arabia.  Kuwait also has national patent legislation, and a national patent office.  
Currently, dual protection is allowed, i.e., appl ying for both national and GCC patents for the same 
invention. 
146. To apply for a national patent in Kuwait, an inve ntor must register with the Patents Office at 
the Trademark and Patent Department of the MC I.  Non-Kuwaiti citizens, companies, and other 
juristic personalities may register patents in Kuwait if  they are nationals or residents of countries that 
offer Kuwait reciprocity, such as WTO Members.  Currently, patent protection is for 20 years starting from the date of the application. 
(e) Industrial designs and layout designs of integrated circuits 
147. Industrial designs and layout designs of integr ated circuits must be registered in the 
Trademark and Patent Department under the MCI.  Th ey are protected for ten years, renewable for a 
further five years. 
148. Table III.16 shows the number of requests for i ndustrial designs and patents, by local and 
foreign applicants;  however, the number gran ted was not available to the Secretariat. 
(f) Other intellectual property rights 
149. Geographical indications are protected under th e law regulating trade marks (the Commercial 
Law No.68 of 1980 as amended by Law No.1 of 2001,  Article 62.3).  In the WTO TRIPS Committee, 
Kuwait stated that it does not import or export any alcohol, for religious reasons, and that 
participation in the registration system for GIs should be voluntary and w ithout any legal effect. 
                                                      
35 Abdullah Kh. Al-Ayoub and Associates online information.  Viewed at:  http://www.al-
ayoub.org/index.html. The State of Kuwait WT/TPR/S/258 
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Table III.16 
Intellectual property rights applications, 2001-10  
Year Industrial models – total number of reque sts Patents – total number of requests 
Local Foreign Total Local Foreign Total 
2001 15 11 26 35 80 115 
2002 23 49 72 44 94 138 
2003 37 112 149 56 74 130 
2004 19 54 73 75 89 164 
2005 28 29 57 70 42 112 
2006 10 95 105 75 56 131 
2007 28 91 119 102 102 204 
2008 40 117 157 75 108 183 
2009 70 77 147 76 71 147 
2010 36 63 99 18 65 83 
 
Source: Ministry of Commerce and Industry, Annual Report 2009  Department of Planning and Research, p. 46;  and 
 information provided by the Kuwaiti authorities. 
150. Kuwait does not have legislation on plant varie ties, or on undisclosed test or other data. 
(g) Enforcement at the border 
151. Kuwait Customs may act upon applications fro m right holders, or upon information about 
importation of counterfeit and in fringing goods.  For goods suspected of infringing IPRs, Customs 
may detain the goods and refer to the legal departme nt to determine whether the goods infringe IPRs.  
The number of seizures by Customs rose from 188 in  2004 to 382 in 2005, and averaged around 330 
annually between 2006 and 2010.  Most concern c onsumer goods, such as electrical appliances, car 
parts, and clothing, bags, and accessories.  Accordi ng to the authorities, all these goods are destined 
towards the Kuwait market, not for transit.  The va lue of the detained/seized goods was not available 
to the Secretariat.