WT/TPR/S/185 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. As a result of its participation in the Gulf Cooperation Council (GCC) customs union, Bahrain 
has been applying the GCC common external tariff (CET) since 1 January 2003. Bahrain's adoption of 
a version of the CET decreased its simple average MFN duty rate from 7.7% in 2000 to 5.3% in 2007; 
all rates are ad valorem (except on tobacco), and there are no tariff quotas and no other duties and 
taxes on imports. Bahrain's exceptions to the GCC CET include alcohol (125%) and tobacco (with an 
alternate tariff, the ad valorem  component being 100%). Bahrain bound 72.7% of its tariff lines at 
rates ranging from 35% to 200%, i.e. an average bound rate of 35.6%; this leaves ample margins for 
applied tariff increases.  
2. The documentation for all imported products must  be authenticated by the Consulate of 
Bahrain or any Arab Embassy in the country of origin. Bahrain encounters some difficulties in implementing the provisions of the GCC custom s law based on the WTO Agreement on Customs 
Valuation. Non-tariff measures are maintained on imports and exports, mainly for health, security, 
and moral reasons. Bahrain has largely harmonized its  regime on standards and technical regulations 
with other GCC members. 
3. The Government of Bahrain continues to have  an influence on the economy, mainly through 
various state-owned companies, such as ALBA (a luminium), BANAGAS (gas), BAPCO (petroleum), 
and Gulf Air. However, recognizing the need to  increase efficiency, reduce the pressure on public 
revenue, and increase private sector participation in the economy, it established a privatization 
programme. 
4. Since its last TPR in 2000, Bahrain has en acted new laws and regulations, notably on 
government procurement, telecommunications, and in tellectual property rights (i.e. on patents and 
utility models, copyrights and ne ighbouring rights, trade marks, trade secrets, geographical 
indications, integrated circuits, and industrial desi gns). The new government procurement regime still 
provides for price preferences of 10% and 5% for local and GCC products, respectively. Bahrain has 
no competition legislation per se .  It has adopted the GCC Treaty provisions on contingency trade 
remedies.  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration and documentation 
5. All importers and exporters are re quired to be listed in the commercial registry maintained by 
the Ministry of Industry and Commerce (MIC), and to be members of the Bahrain Chamber of Commerce and Industry (BCCI).  Since 1 January 2006, the company registration fee has been BD 
20 per year. 
6. All imports into Bahrain, including those des tined for bonded areas, must be accompanied by, 
inter alia , four copies of the bill of landing (airway bill fo r air cargo); the original of the certificate of 
origin (for statistical purposes)
1; three copies of the commercial invoi ce;  and insurance certificates for 
all shipments insured by the exporter or shipper. Commercial invoices must be certified by a Chamber 
of Commerce in the country of origin, stating origin and current export price of the product, and 
stamped by the relevant Consulate of  Bahrain or any Arab Embassy in the country of origin before the 
goods may be exported to Bahrain. In the event th at the documents are not authenticated, the goods 
                                                      
1 In case the certificate of origin is not available, a BD 10 deposit is payable until it is provided. Bahrain WT/TPR/S/185 
 Page 23 
 
 
may still be cleared after inspection by customs a nd payment of the duties payable as assessed by the 
Customs administration (deposit), which is forfeited if the authenticated documents are not provided 
within six months of the date of import. 
7. Product-specific documentation is also required for imports of drugs and medicines, food 
products, live animals, birds and fish, and all meat  and poultry products (section (vii)(b) below)).  
Import permits must accompany certain products, including special breed horses (Arabian horses), 
armaments, insecticides, and fungicides (section (v) below)).   
(ii) Customs procedures and valuation 
8. Since the launch of the GCC customs union on 1 January 2003, Bahrain has been applying its 
GCC Common Customs Law, and its Rules of Impl ementation and Explanatory Notes, through Royal 
Decree No. 2/2002.2  Under the "single port of entry" principle, items imported into Bahrain (or any 
other GCC State), and destined for another GCC mark et, are subject to customs duty only at the first 
point of entry into the GCC. Customs procedures and the required documentation are the same for all 
GCC members.3  
9. According to the authorities, on average clear ance of goods takes 15 minutes, regardless of 
the mode of transportation, and provided everything  is in order, including the documentation. Import 
duties must be paid or guaranteed at the time of cu stoms clearance. Prior to 2003, importers who used 
the services of a commercial agent had to pay a ma ximum commission of 5%. In 2003, this fee was 
lifted; importers are no longer restrained by th eir agents' monopoly of the local market. Foreign 
companies may now appoint more than one distributor for their products in Bahrain.4 
10. Bahrain is in the process of implementing the Customs Automation System (eCAS), a 
computerized bilingual (Arabic/English) system, wh ose main objective is to automate and manage all 
local customs activities relating to the movement of  goods from and to Bahrai n (e.g. exports, imports, 
collection of customs duties, inspection, transit, warehousing, and refund). It is aimed at allowing 
traders to complete the necessary customs procedures  in a few hours and effectively. According to the 
authorities, the eCAS will be implemented graduall y throughout Bahrain, starting at Mina Salman 
Port during the second half of 2007. 
11. In January 2000, Bahrain requested a three-year  extension period (until 1 January 2003) in the 
application of the provisions of the WTO Customs Valuation Agreement (CVA), in order to finalize 
the necessary legislation, complete computeriza tion and training of customs personnel, and to 
acquaint them with the provisions of the CVA.5 In May 2002, in the Committee on Customs 
Valuation, Bahrain indicated that it was applying the CVA, on the basis of Royal Decree No. 10/2002.
6 However, Bahrain has yet to make the relevant notification to the Committee, including 
of its legislation on customs valuation. The auth orities face certain difficulties in implementing the 
CVA partly due to the lack of a computerized system. Bahrain has reserved its rights under Annex III, paragraphs 3 (concerning reversal of  sequential order of Articles 5 and 6), and 4 (to apply Article 5.2 
                                                     
 
2 Common Customs Law of the GCC States. Viewed at: http://library.gcc-sg.org/ English/enew01.htm. 
 3 For a description of the GCC customs procedur es, see GCC online information.  Viewed at: 
http://www.gcc-sg.org/GCC-Customs/gcc_cu01e.html.   
4 U.S. Department of State (2005). 
5 WTO document G/VAL/W/57, 13 January 2000. 
6 Bahrain also requested technical assistan ce (WTO document G/VAL/M/27, 5 June 2002). WT/TPR/S/185 Trade Policy Review 
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whether or not the importer so requests).7 Bahrain has notified the WTO that it has no laws or 
regulations on pre-shipment inspection.8 Customs tariffs are levied on the c.i.f. value of imports. 
12. A Customs Valuation Committee, composed of officers from the administration, was 
established through Office Order No. 10 dated 17 July 2003 to settle customs valuation and 
classification disputes. The operator may also seek a ssistance from the Director General of Customs, 
and has the right to appeal to the Bahraini Court of  Arbitration.  According to the authorities, there 
have been no disputes recently. 
13. Bahrain is a member of  the World Customs Organization. 
(iii) Rules of origin 
14. Bahrain applies non-preferential and preferential ru les of origin. As part of its obligations 
under the GCC customs union, Bahrain applies the same non-preferential rules of origin as the other five GCC members. Under the non-preferential sc heme, products are generally considered as 
originating from the country where they are wholly  obtained or where they underwent substantial 
transformation, with at least 40% of local value- added.  A certificate of origin produced by the 
original exporter and legalized by a recognized au thority in the country of export, is required for 
import clearance.  
15. Bahrain's preferential rules of origin are also generally based on a value-added content 
criterion, but may vary according to the agreemen t (Chapter II(4)(ii)).  For products imported from 
GAFTA, local value-added of at le ast 40% is required in order to qualify for preferential treatment, 
while under the bilateral trade agreement with the Un ited States, local value-added of at least 35% is 
necessary.9  
16. There have not been any disputes or complaints in the WTO regarding the rules of origin 
applied by Bahrain.  It has never made a notification to the WTO Committee on Rules of Origin.   
(iv) Tariffs, other duties, and taxes 
(a) MFN applied tariffs  
17. Bahrain has a relatively simple MFN tariff,  comprising 7,166 lines;  all rates are ad valorem 
(except on tobacco), and there are no tariff quotas, no nuisance rates, and no other duties and charges 
on imports (Table III.1).  Its tariff is based on the GCC's CET, which consists of rates of 5% (92.4% 
of all lines) (Chart III.1), and zero for 421 lines, ma inly agricultural raw materials and basic food 
products, pharmaceutical products, and other products including cert ain papers, books and magazines, 
unwrought precious metals;  vessels;  and airplanes.  Imports into Bahrain of  alcoholic beverages are 
subject to a 125% tariff; and an alternate tariff of 100% ad valorem  or a specific amount (whichever is 
higher)10 applies to tobacco products. 
                                                      
7 WTO document G/VAL/W/156, 27 September 2006. 
8 WTO document G/PSI/N71/Add.6, 6 June 1997. 
9 The bilateral trade agreement with the United States also stipulates specific "yarn forward" rules of 
origin for textiles. 
10 The specific component of the alternate tariffs fo r tobacco and tobacco-related products are (HS code 
in parentheses): BD 2 per kg gross (2401.1000 to 2401.3090); BD 15 per kg (2402.1000 and 2402.9010); BD 10 
per thousand cigarettes (2402.2000 and 2402.9020); BD 4 per kg net (2403.1010 to 2403.9930); BD 0.6 per kg gross  (2403.9940 and 2403.9950); and BD 4 per kg gross (2403.9990). Bahrain WT/TPR/S/185 
 Page 25 
 
 
Table III.1 
Structure of MFN tariffs in Bahrain, 2000 and 2007 
  2000 2007 U.R.a 
1.   Bound tariff lines (% of all tariff lines)b 74.5 72.7 n.a 
2.   Duty-free tariff lines (% of all tariff lines) 5.8 5.9 2.4 
3.   Non- ad valorem  tariffs (% of all tariff lines)c 0.3 1.0 0.0 
4.   Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
5.   Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.3 1.0 0.0 
6.   Simple average applied tariff  7.7 5.3 34.4 
 Agricultural products (WTO definition) 7.9 7.4 37.7 
 Non-agricultural products (WTO definition)d 7.7 4.9 33.5 
 Agriculture, hunting, forestry and fishing (ISIC 1) 4.3 3.3 35.7 
 Mining and quarrying (ISIC 2) 5.2 4.9 35.0 
 Manufacturing (ISIC 3) 8.0 5.4 34.3 
7   Domestic tariff "spikes" (% of all tariff lines)e 0.6 1.6 0.3 
8.   International tariff "peaks" (% of all tariff lines)f 3.4 1.6 97.6 
9.   Overall standard deviati on of applied rates 8.8 7.9 11.4 
a The implementation of certain products runs until 2008. 
b The reduction in the percentage of bound tariffs is  mainly due to a change in classification. 
c Data for 2000 and 2007 include prohibited items. 
d Excluding petroleum. e Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). 
f International tariff peaks are defined as those exceeding 15%. 
Source : WTO Secretariat calculations, base d on data provided by Bahraini au thorities;  and IDB WTO database. 
(0.2) (0.3) (0.3(92.4)
(5.9)
01,0002,0003,0004,0005,0006,0007,000
0 5 20 100 1250102030405060708090100
The figures in brackets correspond to the percentage of total lines. They do not add to 100% due to non-ad valorem 
duties and prohibited items.
WTO Secretariat calculations, based on data provided by the Bahraini authorities.Chart III.1
Breakdown of applied MFN duties, 2007
Number of tariff lines
Note:
Source :Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 WT/TPR/S/185 Trade Policy Review 
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18. Bahrain's overall average MFN applied tariff is 5.3% (down from 7.7% in 2000). The 
coefficient of variation is 1.5, reflecting the fact th at the modal rate is 5% and a few items are subject 
to the zero rate or tariffs of 100-125% (Tables III. 2 and AIII.1). On the basis of the WTO definition, 
tariffs average 7.4% in agriculture (down from 7.9% in 2000)11, and 4.9% on non-agricultural 
products (7.7% in 2000). Using ISIC (Revision 2) definition, the least tariff protected sector is 
agriculture with 3.3% (compared with 4.3% in 2000), followed by mining and quarrying (4.9%, down 
from 5.2% in 2000), and manufacturing (5.4%, 8% in 2000). 
19. On aggregate, Bahrain's tariff displays positive escalation, from first-stage processed 
products, with an average tariff of 4%, to semi-finish ed goods, with an average rate of 4.9%, and fully 
processed products, on which tariffs average 5.8%. This positive tariff escalation stems from the 
lower applied tariffs (on average) to agricultural raw materials. Further desegregation shows mixed results:  in some industries (e.g. textiles and appare l, basic metal products) tariffs are uniform from the 
first to the final stage of processing (Chart III.2). Otherwise, tariff escalation is mixed (negative from 
the first to the second stage, and then positive) in  food and beverages, refl ecting the high rates on 
tobacco and spirits, and in non-metallic mineral produc ts. Escalation is slightly negative in chemicals 
and in paper and printing, because of duty-fr ee imports of pharmaceuticals and certain books. 
Table III.2 
Summary analysis of Bahrain's MFN tariff, 2007  
  Applied 2007 rates 
Analysis No. of linesa No. of lines 
used Simple avg. 
tariff (%) Range tariff 
(%) Std-dev (%) CV   
Imports 2006
(US$ million)
Total 7,166 7,107 5.3 0-125 7.9 1.5 8,956.9b 
By WTO definitionc               
Agriculture 1,153 1,136 7.4 0-125 19.3 2.6 522.1 
Live animals and products thereof 154 151 3.1 0-5 2.4 0.8 70.4 
Dairy products 33 33 5.0 5-5 0.0 0.0 79.7 
Coffee and  tea, cocoa, sugar, etc. 248 246 4.0 0-5 2.0 0.5 118.1 
Cut flowers and plants 69 64 4.5 0-5 1.5 0.3 4.6 
Fruit and vegetables 267 267 3.5 0-5 2.3 0.7 79.2 
Grains 22 21 0.5 0-5 1.5 3.2 24.3 
Oil seeds, fats, oils and their 
products 91 88 4.9 0-5 0.5 0.1 18.5 
Beverages and spirits 64 63 35.5 5-125 52.7 1.5 80.7 
Tobacco 20 20 100.0 100- 100 0.0 0.0 31.0 
Other agricultural products 185 183 5.0 0-125 9.1 1.8 15.5 
Non-agriculture (excl. petroleum) 5,979 5,937 4.9 0-20 1.3 0.3 3,512.9 
Fish and fishery products 153 153 3.2 0-5 2.4 0.8 8.3 
Mineral products, precious stones 
and precious metals 468 446 4.7 0-5 1.3 0.3 269.9 
Metals 747 747 5.2 5-20 1.5 0.3 632.1 
Chemicals and photographic 
supplies 1,142 1,139 4.9 0-20 1.5 0.3 640.2 
Leather, rubber, footwear and 
travel goods 222 216 5.0 5-5 0.0 0.0 40.4 
Wood, pulp, paper and furniture 435 435 4.9 0-20 2.5 0.5 182.1 
Textiles and clothing 1,045 1,042 5.0 0-5 0.3 0.1 144.8 
Transport equipment 235 233 4.4 0-5 1.6 0.4 677.8 
Non-electric machinery 609 609 5.0 0-5 0.2 0.0 509.9 
Electric machinery 304 302 5.0 5-5 0.0 0.0 313.2 
      Table III.2 (cont'd) 
                                                      
11 The WTO definition of agriculture covers:  HS Chapters 01-24, less fish and fishery products 
(HS 0301-0307, 0509, 051191, 1504, 1603-1605 and 230120), plus some selected products (HS 290543, 
290544, 290545, 3301, 3501-3505, 380910, 382311-382319, 382360, 382370, 382460, 4101-4103, 4301, 5001-5003, 5105-5103, 5201-5203, 5301 and 5302). Bahrain WT/TPR/S/185 
 Page 27 
 
 
  Applied 2007 rates 
Analysis No. of linesa No. of lines 
used Simple avg. 
tariff (%) Range tariff 
(%) Std-dev (%) CV   
Imports 2006
(US$ million)
Non agricultural articles n.e.s. 619 615 5.0 5-20 0.6 0.1 94.3 
By ISIC sectord        
Agriculture, hunting, forestry and 
fishing 447 434 3.3 0-100 9.7 2.9 118.7 
Mining 130 129 4.9 0-5 0.8 0.2 5,040.8 
Manufacturing 6,588 6,543 5.4 0-125 7.8 1.4 3,795.9 
By stage of processing        
Raw materials 848 830 4.0 0-100 7.1 1.8 5,207.8 
Semi-processed products 2,060 2,060 4.9 0-20 1.3 0.3 1,044.6 
Fully-processed products 4,258 4,217 5.8 0-125 9.7 1.7 2,703.1 
a Tariff rates are based on a lower frequency (numbe r of lines) since prohibited products are excluded. 
b The total of imports is higher than the sum of sub-items, as  certain imports, to the value of US$1.4 million are not classifi ed in 
the Harmonized System and therefor e cannot be classified under ISIC.  
c 34 tariff lines on petroleum products are not taken into account.  
d International Standard Industrial Classification (Rev.2).   Electricity, gas and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by the Bahraini aut horities; 2006 imports data from UNSD, 
Comtrade database. 
 
0.02.04.06.08.010.012.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2007
Per cent
Sourc e: WTO Secretariat estimates, based on data provided by the Bahraini authorities.
All product s
Food, beverages
and tobacco
Textiles,
apparel
Wood products
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other
manufacturin gNOT APPLICABLEAgricuture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
(b) MFN bound tariffs 
20. In the Uruguay Round, Bahrain bound 72.7% of its tariff. Most bound tariffs are at ceiling 
rates of 35%;  however, on tobacco and alcohol products (23 lines), tariffs are bound at 100% and 
200%, respectively. WT/TPR/S/185 Trade Policy Review 
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21. Bahrain's average bound tariff is 35.6%. The overall average MFN applied tariff (5.3%) is 
considerably lower than the bound rate; this pr esents an element of uncertainty, as it gives the 
authorities a substantial margin for increasing applie d MFN tariffs. In addition, the percentage of 
tariffs bound in some HS Chapters, notably on ch emicals, wood and wood ar ticles, mineral products, 
pulp and paper, and hides and skins, which togeth er represent 24% of the tariff, remains below 50% 
of all lines in those Chapters.12 
(c) Other duties and taxes 22. Bahrain does not apply other duties and taxes, except on some fresh agricultural products, 
where a municipality tax of up to 2% may be ch arged for statistical purposes. Bahrain bound other 
duties and taxes at zero, with the exception of 40  tariff lines (HS 08) for which they were bound at 
2%. 
(d) Duty and tax concessions and exemptions 23. Bahrain grants tariff exemptions on raw materi als, machinery, and equipment imported for 
local factories qualifying under the Local and GCC Industries Laws. In addition, duty and tax 
concessions may be granted selectively to certain industries or companies on imports necessary for 
their operational use. Duty-free imports are also allowed for, inter alia , international organizations, 
diplomatic missions, the armed forces, police, and charity institutions.
13 
24. Duty and tax concessions are also granted to exporters (section (3)(iv) below). 
25. Tariff concessions and exemptions are specific to each GCC member and may therefore differ 
from one State to another. 
(e) Tariff preferences 
26. In principle, products from a GCC member circulate free of duty across the customs union. 
With the exception of tobacco and alcoholic produc ts, which are excluded from Bahrain's preferential 
arrangements, imports originating from the othe r members of GAFTA and the United States enter 
Bahrain duty-free, provided that the goods meet the respective origin criteria (section(2)(iii) above). 
(v) Import prohibitions, restrictions, and licensing 
27. Under the GCC Common Customs Law, each GCC state determines its own list of prohibited 
or restricted products, although members are developi ng a common list.  Imports that are prohibited in 
some GCC member states and permitted in others must  not transit through the states in which they are 
prohibited. Transit of restricted imports is allowed. 
28. In Bahrain, absolute import prohibitions ar e maintained for various reasons, including 
international conventions, envir onmental protection, health and safety, and religious and moral 
considerations. They cover live swine; all kind of drugs; Indian pan and derivatives; asbestos and 
articles of asbestos;  used pneumatic tyres;  cultur ed pearls; advertisement material for all types of 
cigarettes; radio remote-control model aeroplanes; child ren toys in the form of guns, with power; and 
ivory and articles of ivory (Table III.3). 
                                                      
12 See WTO (2000). 
 13 Section VIII of the Common Customs Law of GCC States specifies the agencies and goods exempt 
from duty, such as the diplomatic corps, military forces , personal effects, imports by charitable societies, and 
returned goods. Bahrain WT/TPR/S/185 
 Page 29 
 
 
Table III.3 
Prohibited imports, 2007 
HS Code Product description Reasons for prohibition Authorizing ministry 
01030000 Live swine Religious reasons Ministry of Industry and Commerce 
.. Drugs Drugs and narcotics reasons Ministry of Interior 
.. Indian pan and derivative To preserve environment Ministry of Industry and Commerce 
40120000 Retreaded tyres and used tyres Safety reasons Ministry of Industry and Commerce 
.. Advertisement material for propaganda 
of all type of cigarettes Health reasons Ministry of  Industry and Commerce 
and Ministry of Health 
.. Asbestos and articles of asbestos Safety and health reasons Ministry of Industry and Commerce 
71012100 
71012200 
71161010 Cultured pearls To assist regeneration of natural pearl 
industry Ministry of Industry and Commerce 
95038000 Radio remote control model aeroplane Security and safety reasons due to 
space limitations Ministry of Interior 
95039000 Children toys in the form of gun, with 
power Security and safety reasons Minist ry of Interior and Ministry of 
Industry and Commerce 
95071000 
96011000 
96019000 Ivory and articles of ivory To preserve the natural environment Ministry of Industry and Commerce 
.. Not available. 
Source: Information provided by the Bahraini authorities. 
29. Bahrain has notified the WTO Committee on Im port Licensing Procedures that it has no 
import licensing system.14  Nonetheless, goods subject to import restrictions must be accompanied by 
certificates from the relevant authorities. Most of th e import restrictions maintained by Bahrain are on 
safety, health or moral grounds, and apply to, inter alia , special breed horses, armaments, insecticides 
and fungicides, and radioactive materials (Table III.4). 
Table III.4 
Restricted imports, 2007 
HS Code Product description Conditions for release of import Authorizing ministry 
01010000 Horses No-objection certificate from 
Equestrian and Horse Racing Club; 
and valid certificate from 
Veterinary Authority Crown Prince Court and 
Ministry of Municipal and 
Agriculture Affairs 
01061990 and  95081000 Other live wild dangerous 
animals for circus only No-objection certificate from 
Ministry of  Interior;  and valid 
certificate from Veterinary Authority  Ministry of Interior and 
Ministry of Municipal and 
Agriculture Affairs 
22072019 Unadulterated et hyl alcohol of 
isopropyl, isopropanol No-objection certificate Ministry of Interior 
28444010 Radioactive chemical elements 
and active isotopes Permission  Ministry of Health 
31010000 to 
31050000 Animal or vegeta ble fertilizers 
whether or not mixed together or chemically treated No-objection certificate  Ministry of Municipal and 
Agriculture Affairs 
38080000 Insecticides and fungicides No-objection certificate  Ministry of Municipal and 
Agriculture Affairs 
   Table III.4 (con'd) 
                                                      
14 WTO document G/LIC/N/3/BHR/1, 15 September 2000.   WT/TPR/S/185 Trade Policy Review 
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HS Code Product description Conditions for release of import Authorizing ministry 
73269099 Handcuffs made from iron and 
steel No-objection certificate  Ministry of Interior 
87011000 Pedestrian controlled four-wheel 
mini car No-objection certificate  Ministry of Interior 
93000000 to 
93070000 Arms and ammunition, military 
weapons and parts thereof; 
bombs, grenades, torpedoes, 
mines, missiles and parts thereof, swords, cutlasses, 
bayonets, lances, and similar 
arms and parts thereof No-objection certificate Ministry of Interior 
Source: Information provided by the Bahraini authorities. 
30. Food, plant, and animal imports, which are rest ricted for health reasons, must be accompanied 
by sanitary and phytosanitary health certificates from the exporting country.  Imports of food products 
must be accompanied by a certificate declaring them to be free of radiation and dioxin (section (vii)(b) below).  In addition, pharmaceutic al products must be imported directly from a 
manufacturer with a research department, and th e products must be licensed in the country of 
manufacture and in at least two GCC countries othe r than Bahrain, one of which must be Saudi 
Arabia. 
(vi) Contingency trade remedies 
31. Bahrain has notified the WTO that it has no nationa l laws or regulations relevant to the WTO 
Agreements on Anti-dumping, and on Safeguards.
15 Bahrain has not yet submitted a notification on 
laws and regulations under Ar ticle 32.6 of the WTO Agreement on Subsidies and Countervailing 
Measures. However, it adopted the provisions on contingency trade remedies contained in the GCC 
Treaty through Law No. 4/2006;  implementing regula tions have yet to be finalized.  Bahrain has 
never taken anti-dumping, counter vailing or safeguard measures. 
(vii) Standards and other technical requirements 
(a) Standards, testing, and certification 
32. Bahrain accepted the TBT Code of Good Practice in September 1997.16 Its standardization 
body and enquiry point is the Bahrain Standards and Metrology Directorate (BSMD) within the 
MIC.17 The National Committee for Standards and Metrol ogy (NCSM) is the technical arm of the 
BSMD. The NCSM comprises representatives from various ministries and the BCCI, and independent technical experts;  it is chaired by the Minister of Industry and Commerce.
18  
33. Bahrain is harmonizing its technical regulations  and standards at the GCC level. GCC-wide 
standards may be proposed/initiated by a body in a member country, and are formulated by the Gulf 
Standards Organization (GSO), wh ich is based in Riyadh, Saudi  Arabia. The proposal requires 
support from two member countries in order to be included in the GSO work programme. Once 
approved, GSO standards are circulated to all GCC member states for adoption.  In general, GCC 
                                                      
15 WTO document G/ADP/N/1/BHR/1, 3 June 1997;  and WTO document G/SG/N/1/BHR/1, 
12 June 1997. 
16 WTO document G/TBT/2/CS1/Add.2, 11 February 1998. 
17 WTO document G/TBT/ENQ/28, 27 October 2006. The BSMD was established under Legislative 
Decree No. 16 of 1985. 
18 The NCSM was established under Legislative Decree No. 16 of 1985. Bahrain WT/TPR/S/185 
 Page 31 
 
 
standards are based on international standards.  According to the authorities, Bahrain develops 
technical regulations and standards at the national le vel only if there is a pressi ng need.  All technical 
regulations and standards must be adopted by the NCSM; any proposed technical regulation or 
standard is examined by one of the seven tec hnical committees under the NCSM, which has a period 
of seven to ten months to approve it. In Bahrain,  standards and technical regulations are adopted by 
Ministerial Orders and then published in the Official Gazette . Technical regulations and standards 
normally enter into effect after three to six months, unless there is an emergency situation. 
34. Bahrain has 1,805 standards in place (March  2007), of which 1,804 are based on GCC 
standards as set by GSO; 225 are compulsory standa rds (technical regulations), and the remainder are 
voluntary. Bahrain has a voluntary national standard on local bread.19 BSMD, together with GSO and 
the other national standardization bodies of th e GCC, is to establish a Regional Conformity 
Assessment Scheme (RCAS) in 2007,  with the support of the Joint Accreditation System of Australia 
and New Zealand. 
35. All mandatory standards in Bahrain apply equa lly to locally produced and imported products, 
with the exception of quality marks on gold (sec tion (c) below).  Regulated products are given 
automatic entry to Bahrain if they are covered by conformity assessment certificates issued by 
internationally recognized bodies. Otherwise, th e products must be assessed by accredited bodies.  
Bahrain has not concluded any mutual recognition agreements. 
36. In addition to standards, all precious metals, whether imported or locally produced, must be 
hallmarked. The quality mark is issued by the Assay Office. The GSO is developing a voluntary 
quality mark for the GCC area. 
37. Ten categories of imported pr oducts are under the control of BSMD, and are subject to 
specific requirements (Table III.5). A new safety pr ogramme for ten electric home appliances entered 
into force on 1 January 2007.20 
38. Bahrain is a member of the Arab Centre for Standardization and Metrology in the Arab 
Organization for Industrial Development and Mi ning (AIDMO); and is a full member of the 
International Organization for Standardization (IS O), and the Internationa l Organization of Legal 
Metrology (OIML). Bahrain has also signed a memorandum of unders tanding on technical 
cooperation in standardization, quality, and metrol ogy with Egypt, Iran, Jordan, Syria, and Yemen. 
Table III.5 
Import controls, 2007  
Product Category Requirements 
Tyres (passenger cars and trucks) Mechanical systems and components 
for general use Copy of: GSO conformity certificate for the models 
shipped stating compliance w ith the required standards; 
customs release document;  and invoice of lot 
Motor vehicles (passenger cars 
and trucks) Mechanical systems and components 
for general use Copy of: GSO conformity certificate for the models 
shipped stating the compliance with the required 
standards;  
customs release document;  and invoice of lot 
Car batteries – lead-acid starter 
batteries used for motor cars and 
internal combustion engines Mechanical systems and components 
for general use Copy of: GSO conformity certificate for the models 
shipped; and customs release document conformity 
certificate from the manufacture complying to the 
technical regulation base d on GCC standard N° 34-
35/1984 for controlling lead–acid starter batteries used 
for motor cars and internal combustion engines and its 
methods of test; the certificate is valid for one year 
  Table III.5 (cont'd) 
                                                      
19 Since 2000, two other Bahraini-specific standards, on safety and warehouses for foodstuff, have been 
converted to GCC standards. 
20 HS 8509.8090 items (WTO document G/TBT/N/BHR/5, 24 May 2006). WT/TPR/S/185 Trade Policy Review 
Page 32 
 
 
Product Category Requirements 
Cigarettes - general Food and agriculture Visual in spection of samples to a ssure that: the nicotine 
yield shall not exceed 0.6 mg/cigarette, the tar yield shall 
not exceed 10.0 mg/cigare tte, and the carbon monoxide 
yield shall not exceed 12mg/cigarette. 
The following labelling information must be available: 
trade mark, number of cigarettes (max. 20 cigarettes per 
packet), name of producer or importer, packaging date 
(month – year), and batch number;  customs release document;  invoice of lot 
The following warning shall be printed on the front side 
of the packet in both Arabic  and English with clear letter 
size not less than black 8: "Health warning:  smoking is 
the main cause for lung cancer and diseases and for heart 
and arteries diseases".  The colour of the packets or letter 
shall not affect the clarity of such warning 
Asbestos – importing, manufacturing, and circulation of 
asbestos materials and products Chemical product Documents stating that  the item is free from asbestos: 
  Conformity certificate from the manufacture or   Declaration of "asbestos free products" on the package Otherwise: A sample from the consignment will be tested at the cost 
of the importer, and goods released/rejected according to 
the results 
Household electrical appliances Electrical product – selected ite ms Approval of Bahrain Standa rds and Metrology Directorate 
(BSMD) for importing the electrical products; safety mark 
on the regulated products; customs release document;  and 
invoice of lot Otherwise: A sample from the consignment will be tested on the cost 
of the importer, and goods released/rejected according to 
the results 
Toys – importing children's toy Mechan ical and chemical None, under study 
Lavatory flush tanks Buildi ng materials None, under study 
Weighing scales, weights, 
measuring tapes and meters Metrology A signed declaration for not selling the scales before 
obtaining calibration certificate from BSMD 
Food Food and agriculture Requirements are determined by the Ministry of Health 
for verification of conform ity of food (Law N° 3/1985 
concerning the control of foodstuff) 
Source: Information provided by the Bahraini authorities. 
(b) Sanitary and phytosanitary measures 
39. The national enquiry point and notification aut hority on food safety is the Directorate of 
Public Health under the Ministry of Health. Bahrai n's national enquiry point for plant health is the 
Directorate of Plant Health under the Ministry of  Municipal Affairs and Agriculture (MMAA), while 
the notification authority on SPS is the Director ate of Foreign Trade Relations under the MIC. 
40. Bahrain has made seven SPS notifications since becoming a WTO Member.  Recent 
notifications relate to draft mandatory standard s on table olives, canned fruit cocktail, and grape 
juice.21 All SPS measures are published in the Official Gazette . Bahrain is a member of the World 
Organization for Animal Health (OIE), the Inte rnational Plant Protection Convention (IPPC), and 
Codex Alimentarius.22 In 2005, Bahrain notified the adoption of International Codex Standards 
regarding food additives, food contaminan ts, pesticides, and veterinary drugs.23 
41. According to the Red Sea Livestock Trade Co mmission, Bahrain is free of animal diseases. 
Since 2003, Bahrain has been applying the GCC Laws on Veterinary Quarantine and Plant 
Quarantine. Imports, exports, and dom estic production of plants and animals are subject to inspection 
                                                      
21 WTO documents G/SPS/N/BHR/5-7, 7 November 2005. 
22 WTO document, G/SPS/GEN/49/Rev.7, 26 July 2006.   
23 WTO document G/SPS/GEN/537, 18 January 2005. Bahrain WT/TPR/S/185 
 Page 33 
 
 
by the Agricultural Quarantine Unit (AQU) of the MMAA. The AQU also examines and issues SPS 
certificates for all agricultural products prior to their export.24 All imports of plants must be 
accompanied by agricultural clearance certificates is sued by the appropriate authorities in the country 
of export.  Phytosanitary certificates are also re quired for imports of flour, rice, wheat seed, and 
agricultural seeds and plants.  
42. A health certificate and prior permission from the MMAA is required to import live animals 
from all countries.  For pets, health certificates ar e required for all birds;  cats and dogs may be 
imported from all countries, but must be accompanied by a health certificate and certificate from the competent authority stating that the animal is free from rabies. 
43. Imports of foodstuffs are inspected organolepticaly
25 by the Ministry of Health to ensure that 
they are free from physical or visible contaminants . Samples are drawn from shipments for laboratory 
analysis according to a predetermined plan. All cons ignments that are imported for the first time are 
analysed before release. Results are assessed ag ainst GCC and Codex Alimentarius standards to 
ensure that imported food items are safe for human c onsumption. Unfit foodstuffs are rejected at the 
port of entry;  they are either destroyed or returned to the country of origin (the decision is left to the 
importer).26 According to the authorities, the same trea tment applies to locally produced foodstuffs. 
Poultry and poultry produc ts from countries affected by Avian Flu must be accompanied by a 
certificate indicating that they were free from Avian Flu 15 days prior to slaughter. Imports of bovine 
origin from Europe and Japan are prohibited on gr ounds of bovine spongiform  encephalopathy (BSE). 
Potasium bromate is also banned, regardless of its or igin, as is titanium dioxide used in tahina (sesame 
paste) and tahina sweet. All eggs must be stamped. 
44. Due to SPS considerations, Bahrain is still unabl e to export fish products to the European 
Union.  Additionally, Bahrain cannot export shrimp to  the United States as the correct turtle exclusion 
device (TED) is not in use (Chapter IV(2)(iii)). 
(c) Marking, labelling, and packaging requirements 45. Bahrain is updating its packaging and produc t labelling standards on the GSO norms. Some 
GCC standards, in particular shelf-life standards,  have been criticized for being too restrictive.
27 To 
address this situation, on 18 February 2004 , Bahrain replaced its GCC production shelf-life 
requirements on the basis of Ministerial Order No. 3/2004.  
46. Labels must be in Arabic, although a small num ber of products with labels only in English 
may be approved, on a case-by-case basis, for marketing test purposes. Food labels must contain product and brand names, production and expiry dates,  country of origin, name of the manufacturer, 
net weight in metric units, and the list of ingredients and additives in descending order of 
importance.
28 
47. As an Islamic country, Bahrain has strict ma rking and labelling requirements for meat and 
poultry products, including that the product was sla ughtered according to Islamic halal procedures, if 
so required.  Products containing pork should be la belled accordingly. Packaged fresh or frozen meat 
and poultry must also carry the following informa tion:  bilingual labelling, of which one language 
must be Arabic; country of origin; production (sla ughtering or freezing) and expiry dates, including 
                                                      
24 WTO (2000). 
25 Organolepticaly refers to the physical properties of food, such as colour, smell, taste, and texture. 
26 Any complaint is examined  by a Committee of experts, and a decision is made to accept or reject the 
consignment. 
27 U.S. Department of State (2005). 
28 GCC Technical Regulation No. 9 of 1995. WT/TPR/S/185 Trade Policy Review 
Page 34 
 
 
the name of the month; shelf life of the produc t; metric net weight; and product identification. 
Pre-packaged processed meat and poultry must be accompanied by production and expiry dates as 
well as the net weight of the product.   
48. Ministerial Order No. 33/2005 provides for na tional voluntary standards on general-purpose 
polythene bags (e.g. sho pping and garbage bags). 
(viii) Government procurement 
49. Bahrain adopted a new government procurem ent regime through Legislative Decree 
No. 36/2002 (Law Regulating G overnment Tenders and Purch ases), and Decree No. 37/2002 
(Implementing Regulations of the Law Regul ating Government Tenders and Purchases).29 The main 
objectives of the regime are, inter alia , to: protect public funds and pr event the influence of personal 
interests on tendering formalities; encourage participa tion of, and provide fair treatment to, suppliers 
and contractors; and achieve transparency in all phases of government purchasing procedures.30 
50. Article 8 of the Decree established the Tender Boar d (TB) as an independent body that reports 
directly to the Council of Ministers. The TB's main responsibilities are to oversee and supervise all 
tendering, purchasing, and awarding processes relate d to the public sector and government-owned 
organizations. In January 2003, the TB empowered individual ministries and departments to process 
projects valued at less than BD 10,000. The TB is  composed of the Chairman, Deputy Chairman, and 
seven other members. The term of office for members of the TB is two years, renewable only once31, 
all are appointed by Royal Decree. 
51. The tendering procedures specified in the new regi me are: (i) public tender, either local or 
international32, as the main method for the purchases of goods  or construction; (ii) limited tenders, 
applied, for example, if there is a limited numbe r of suppliers, or the intended purchase is of small 
value that does not justify a large number of bids; ( iii) negotiated tenders, applied, for example, if at 
the end of public procedures, no tender is submitted,  and when goods cannot be identified by precise 
specifications; (iv) direct purchase, if it is establis hed that the needs can only be supplied by a single 
source; and (v) requests for proposals, the main me thod for services, through local or international 
advertisement, or in a specialized publica tion, or applications for pre-qualification.33 Despite the 
improvements over the previous procurement regi me, some firms have indicated that the new 
procedures are not always strictly followed, and that it may still be important to have a local 
representative with strong connections.34 
                                                      
29 According to the authorities, the new regime was based on the UNCITRAL Model Law on 
Procurement of Goods, Construction, and Services. 
30 In general, the previous government procurement regime had been criticized for its lack of 
transparency. In addition, contracts were not always d ecided solely based on price and technical merit (U.S. 
Department of State, 2005b). 
31 Article 9 of Legislative Decree No. 36/2002 allows for one third of the TB members to be 
reappointed for a further two-year term. 
32 The criteria for choosing between  local and international tenders are based upon the nature of the 
goods, construction or services to be purchased; volume; complexity; and standards required. The TB is 
empowered to select an international tender based on su ch criteria. A local tender is limited to companies and 
organizations registered in Bahrain (GCC companies are co nsidered as local), and are advertised in one or two 
local newspapers, or as deemed appropriate by the TB, wh ile international tenders are advertised in Bahrain and 
abroad in both Arabic and English. In all cases, the TB may advertise in other media of wider circulation. Public 
procurement, through tendering, for BD 1 m illion or more must be advertised in the Official Gazette .  
33 Requests for submissions of proposals may be made directly to a number of suppliers if: the services 
are unavailable except with a limite d number of suppliers; the costs of th e evaluation exceeds the value of the 
required services; and confidentiality or national inte rests so require (Article 51 of Legislative Decree 
No. 36/2002). 
34 U.S. Department of State (2005a). Bahrain WT/TPR/S/185 
 Page 35 
 
 
52. Under Article 35 of the Decree, the TB must award the tender to the bidder who offers the 
best terms and the lowest price.35 The successful bidder must submit a performance bond within ten 
days for local tenders or 20 days for international tenders of notification of the provisional intention to 
award the contract (this may be extended, in bot h cases, by a further ten days). The amount of the 
performance bond is determined by the TB on the basis of the nature and value of the project.36 
Successful bidders must be notified individual ly. All final awards are published in the Official 
Gazette , in the press, and on the TB's website.37 The TB also publishes online, both in Arabic and 
English, the weekly list of tenders that have been  opened, those that will be  opened during the year, 
and the dates of each tender. During 2007, the TB is expected to implement its e-tendering project, 
with the aim of modernizing the procurement pr ocess and enhancing the pa rticipation of foreign 
companies. 
53. Complaints may be submitted in the first-instan ce, for reconsideration by the procuring entity 
and/or the TB, prior to the contract coming into eff ect. A decision is to be taken within 30 days after 
the complaint is made.38 Judicial review is available for cont ractors or suppliers to challenge the 
decisions taken by the procuring entity or the TB be fore the competent law courts within 60 days after 
the decision is made. 
54. Under Prime Ministerial Edict No. 21/1987, preferences are given for goods produced in 
Bahrain and in other GCC States, provided that th e prices of these goods are within specified margins 
of the value of their imported equivalents (10% for goods produced in Bahrain and 5% for goods 
produced in the GCC). 
55. The TB has awarded 5,653 tenders since its ince ption (up to 2006), with a total estimated 
value of BD 2,317 million (BD 1,942 m illion in award value) (Table III.6). 
Table III.6 
Government procurement, 2002-06 
(Million Bahrain dinar) 
 2002 2003 2004 2005 2006a 
Total 444.5 437.6 429.1 515.5 729.5 
Local 390.3 400.1 383.9 475.8 662.4 
Foreign 54.2 37.5 45.2 39.7 67.1 
Services 102.1 119.4 123.4 135.3 153.2 
Local 93.1 109.1 111.3 121.2 130.9 
Foreign 9.0 10.3 12.1 14.1 22.3 
Goods 51.3 59.1 65.1 115.2 119.0 
Local 50.3 58.9 64.6 114.7 118.6 
Foreign 1.0 0.2 0.5 0.5 0.3 
Construction 291.0 259.1 240.6 265.0 457.3 
Local 246.8 232.1 208.0 240.0 412.8 
Foreign 44.2 27.0 32.6 25.0 44.5 
a Preliminary estimates. 
Source: Information provided by the Bahraini authorities. 
56. Bahrain is neither a member of nor an ob server to the WTO Plurilateral Agreement on 
Government Procurement. 
                                                      
35 The TB estimates in monetary te rms, where possible, all the criteri a of comparison between tenders, 
such as maintenance costs and quality. 
36 If the winning bidder fails to submit the performance bond within the deadline, he/she is deemed to 
have withdrawn from the tender, and cannot participate in tenders for at least one year. The performance bond is 
returned when a supplier or a contract or fulfils the terms of contract.  
37 See TB online information.  Viewed at: http://www.tenderboard.gov.bh. 
38 Complaints in case of local tenders are to be file d within ten days of becoming aware of the decision 
or action, and 20 days in the case of international te nders. According to Article 56 of Legislative Decree 
No. 36/2002, a refusal must be substantiated. However, if no decision is taken with respect to the complaint 
within the 30 days, it shall be deemed as an implicit rejection.  WT/TPR/S/185 Trade Policy Review 
Page 36 
 
 
(ix) Local-content requirements 
57. Bahrain has not notified any trade-related i nvestment measures (TRIMs) to the WTO.  
However, local-content requirements have been sp ecified in some assistance programmes, such as the 
Human Resource Development Support Programme in  the manufacturing sector (HRDS), which was 
eliminated at the end of 199839; and under the Industries Support and Protection Law, Legislative 
Decree No.11/1985, which was phased out in 2005  (section (4)(i) below).40 
(x) Other measures 
58. The authorities indicate that no agreements have ever been concluded with foreign 
governments or foreign firms to restrict exports to Bahrain.  The Secretariat has not been informed of 
any countertrade arrangements involving the governme nt. Bahrain does not maintain any compulsory 
reserve stocks, and has never taken any me asures for balance-of-payment purposes.  
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
59. Exports (like imports) may only be carried out by companies or individuals who are 
registered with the commercial registry at the MIC and are members of the BCCI. Documents 
required for exports include the commercial invoice and a certificate of origin stamped by the 
Chamber of Commerce. Additional documentation may be required by the Directorate General of Customs if exports of the products are restricted, e.g.  if they are subject to permits from the relevant 
Ministries. 
(ii) Export duties and taxes 
60. Bahrain abolished export duties on 1 Septembe r 1986.  Export fees on ready-made clothes 
were eliminated in 2005. 
(iii) Export prohibitions and restrictions 
61. Bahrain prohibits exports of some produc ts including certain foodstuffs and fuels 
(Table III.7).  Export restrictions apply to, inter alia , live horses, camels, and antiques (Table III.8). 
Table III.7 
Prohibited exports, 2007 
HS Code Product description Authority 
0106.3920 "Bul-bul" bird Crown Prince Court 
2707.1000 
2707.3000 
2711.3100 All kinds of fuel as subsidized goods li ke diesel National Oil and Gas Authority 
.. All kinds of flour as subsidized goods Ministry of Industry and Commerce 
0105.9410 Fresh chicken of trade mark "Delmon" Ministry of Industry and Commerce 
.. Red meat as subsidized goods Ministry of  I ndustry and Commerce  
.. Not available. 
Source: Information provided by the Bahraini authorities.  
                                                      
39 Under the HRDS, all manufacturing industries employing a certain percentage of Bahraini personnel 
were given an annual cash grant to a maximum of 40% of the company's value added (WTO, 2000). 
40 To qualify for protection under Legislative Decree No.11/1985, local (including GCC) content had to 
be at least 20% in the first three years of production, risi ng to over 40% within the next five years (WTO, 2000). Bahrain WT/TPR/S/185 
 Page 37 
 
 
Table III.8 
Restricted exports, 2007 
HS Code Product description Authority 
0101.1010                  
0101.9010                  0101.9020 Live horses Equestrian and Horse Racing Club 
0106.1910 Camels Royal Court 
0602.2010 Palm tree offshoot Ministry of Municipality and Agricultural Affairs 
.. Garbage, wastes Public Commission for the Protection of Marine 
Resources, and Wildlife Environment  
9706.0000 Antiques Ministry of Information 
.. Not available. 
Source: Information provided by the Bahraini authorities.  
(iv) Export subsidies, finance, insurance, and assistance 
62. Duty and tax concessions are granted unde r the "import for re-export", "temporary 
admission", or "transit" regimes.  Importers usi ng the import for re-export regime make a deposit or 
provide a bank guarantee in lieu of duty, which is  refunded/released on proof of re-export. Goods 
remaining in Bahrain after 180 days are liable for dut y payment. The same treatment also applies to 
goods declared under temporary admission, such as  goods imported for exhibitions; equipment used 
in construction, scientific research, development project s; and items for repair or maintenance, except 
that the goods must be re-exported within a maximum of three years.  Importers do not need to hold a 
trading licence if they are engaged in re-export, temporary admission, or transit.   
63. Merchandise received on a "through-bill-of-lading", for a destination outside Bahrain and 
dispatched overland, is cleared on a "transit b ill".  A deposit or guarantee is required by the 
Directorate General of Customs, and is refunded on proof of exit of the goods from Bahrain within 
30 days of the date of the transit bill.  If the cons ignment is dispatched by sea, directly from the port 
(ship-shore-ship or ship-to-ship), the goods are cleared on a transhipment bill. 
64. Customs duties are also suspended for goods stored in government bonded warehouses, until 
re-export, whereupon duties are cancelled.  If the goods  are sold in Bahrain instead of being re-
exported, the appropriate duties are levied.  The Directorate General of Customs may inspect all 
goods stored in bonded warehouses. 
65. Duty drawback is allowed under Article 16 of  the Executive Supplementary Notes to the 
GCC Customs Law. It permits exporters to rec over the duty paid on an imported product once the 
product is re-exported from Bahrain.  The qualifying c onditions include:  that the exporter is also the 
original importer of the product;  that the original c. i.f. value of the re-exported goods is not less than 
BD 1,890 (around US$5,000);  that the goods are re-exported within three years of payment of the import duty, in the same condition and packaging as wh en they were imported;  and that the exports 
are not restricted or granted protective duty unde r Bahraini Law, unless prior permission is obtained 
from the relevant authority.
41  Proof is required that the goods being exported are identical to the 
goods that were imported.  The Directorate General of Customs imposes a service charge of 0.5% of 
the c.i.f. value of the goods if the customs duty did not exceed 20%;  and 1% of the c.i.f. value of the 
goods with customs duty above 20%. 
                                                      
41 Customs Handbook, Resolution No. 2 (1986) Regarding Drawback of Import Duty paid on foreign 
goods, on re-export. WT/TPR/S/185 Trade Policy Review 
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66. The Bahrain Development Bank (B DB), owned by the Government , is the country's primary 
financial development institution. It was establis hed in 1992 to encourage and develop investment, 
meet the financing needs of small and medium-sized  enterprises (SMEs), and help diversify Bahrain's 
economic base.42 The BDB facilitates exports by SMEs through, inter alia , export financing for goods 
manufactured in Bahrain, and providing project loans at market interest rates, as well as flexible grace 
periods (of up to 3 years), and repayment terms.   
(v) Free zones  
67. Bahrain has two free zones, one at Mina Salman , the main port, and the other in the North 
Sitra Industrial Estate. A third free zone is being established, the Mi na Khalifa bin Salman Port and 
Industrial Area, and is expected to  start operations in September 2008.43 Mina Salman provides a free 
transit zone to facilitate duty-free imports of equipment and machinery. Light processing activities 
(e.g. labelling, packaging), either for the local mark et or for exports, may be carried out in the free 
zones. In addition, all raw materials and most cap ital goods intended for processing in Bahrain may be 
imported in these zones duty-free.  Bonded warehouses may also be used for storage provided certain 
customs procedures are fulfilled.  Ac cording to the authorities, no distinction is made between locally- 
and foreign-owned companies in respect of acce ss to the free zones or bonded warehouses. The 
relevant customs duties must be paid on sales of products from the free zones on the GCC market.   
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
68. Bahrain offers various investment incentives to national and foreign investors.  Their purpose 
is to encourage and orient investments, in orde r to promote the country's development objectives; 
encourage the use of and add value to local produc ts; promote exports; and introduce new industries, 
products, and technologies.44 
69. In addition to import duty concessions (section (2)(iv)(c) above), other general incentives for 
all investors include: short- and long-term loans w ith low interest rates (by national comparison) from 
the Bahrain Development Bank for financing capital assets, and a core portion of working capital for 
small and medium-sized industrial projects; lo w rents (by national comparison) for land in 
government industrial areas45; low energy tariffs (by national comparison) for production; and flexible 
regulations and procedures to import workforce.46 
70. Subsidies presently provided in  the manufacturing sector are:  free entry of machines, 
equipment and raw material; a reduction in electricity tariffs from 16 fills per k/h to 12 fills per k/h for 
investors in the sector; and a five-year grace period on rent payment for land in the industrial zones. 
These subsidies are the same fo r local and foreign investors.47 The Human Resource Development 
                                                      
42 BDB online information. Viewed at: http://www.bdb-bh.com. 
43 The Mina Khalifa bin Salman Port and Industrial Area free zone will cover 1 million square km, and 
will provide warehousing space and plots of land for long-term lease to logistic companies.   
44 Ministry of Industry and Commerce (2006). 
45 Since January 2001, foreign firms can lease industrial land in Ba hrain for a maximum of 50 years. 
The Industrial Area Directorate at the MIC oversees long -term land leases. Government lease arrangements are 
governed by Legislative Decree No. 28/1999 on the Establishment and Organizing of Industrial Areas. 
46 A new Labour Law No. 73/2006 replaced Law No. 23/1976. 
47 WTO document G/SCM/N/38,48,60/BHR, 26 July 2000. Bahrain WT/TPR/S/185 
 Page 39 
 
 
Support Programme for manufacturing (HRDS) was terminated at the end of 199848, and Legislative 
Decree No. 11/1985, which supported infant industries, was phased out in 2005 (section (2)(ix) above).
49 
71. The Government currently provides food support (flour and meat) to all persons in Bahrain, 
through the sale of these products at below-market  prices, although, non-subsidized meat products, 
priced substantially higher, are al so available to consumers. Domestic agricultural production is also 
subsidized;  the Government provides most inputs to farmers, such as material for irrigation, 
pesticides, and poultry feed, at below-market prices.  Electricity, water, and sewerage services are also 
provided at below-market costs. 
(ii) Competition policy and price controls 
72. Bahrain has no competition legislation, per se.  However, Articles 59-64 of the 
Law of Commerce, No. 7 of 1987, deal with unfair competition, and under Amiri Decree No. 18/1975, monopolies are to be eliminated. Accord ing to the authorities, competition policy is to 
be dealt with in the context of the draft Law on C onsumer Protection, expected to enter into force 
during 2007.
50 The Consumer Protection Dir ectorate, under the MIC, aims, inter alia , to prevent 
unfair trade practices (e.g. cartels). 
73. Certain products, such as gas, flour, meat, lo cal bread, poultry, petroleum, electricity, and 
water, as well as some services (e.g. air transport,  postal, and tourism) are subject to consumer 
subsidies/price controls (Chapter IV(3) and (5)).  In general, the prices set for these goods and 
services by the relevant companies are subject to a pproval by the Council of Ministers. In addition, 
consumption of livestock imported from Australia is s ubsidized: the subsidy is on the slaughter price. 
(iii) State-owned enterprises and privatization 
74. The public sector in Bahrain is one of the largest employers and still has a direct and strong 
influence on the economy. It includes the Central G overnment;  the General Organization for Social 
Insurance (GOSI), a pension fund for private sect or employees and a workers' compensation fund for 
expatriates in the public sector;  five municipaliti es; and several state-owned enterprises (SOEs). The 
contribution of SOEs to the economy remains signi ficant, for example, Aluminium Bahrain (ALBA) 
and Bahrain Petroleum Company (BAPCO) dominate production in their respective industries.  
75. A new fully state-owned holding company, Mu mtalakat Holding Company (MHC), has taken 
over the government shares in several companies (T able III.9). Oil-related SOEs (e.g. BAPCO and 
BANAGAS) are not in the portfolio of MHC; they are under the National Oil and Gas Authority 
(NOGA). 
76. Over the last few years, the role of the State has been gradually redefined as that of a policy 
maker and regulator rather than producer of market able goods. The Government is seeking to foster 
greater private sector participation in the economy, so as to increase its contribution to investment and economic growth, to diversify the economic base, a nd to maintain social peace and security. Decree 
                                                     
 
48 The HRDS, inter alia , provided:  incentives for the employment of Bahraini personnel; a rebate of up 
to 50% on power charges;  free rent in government industrial areas;  and exemption from duty on imports of raw 
material and semi-finished goods (see WTO, 2000). 
49 Legislative Decree No. 11/1985 had granted tariff protection of up to 20% to selected national infant 
industries (e.g. medical plastic disp osable products, aluminium hollow profiles, and some types of tissues) 
registered with the Industries Suppor t and Protection Committee in the MIC. 
50 The draft Law on Consumer Protection is yet to be approved by Bahrain's Parliament. WT/TPR/S/185 Trade Policy Review 
Page 40 
 
 
No. 41/2002 with respect to policies and guidelin es of privatization was enacted in October 2002. 
Article 4 stipulates that the privatization programme includes services and manufacturing, and, in particular: tourism, communications, transport, elect ricity and water, ports and airport services, oil 
and gas, and postal services.
51 
Table III.9 
Selected state-owned enterprises, 2007 
SOE Field of activity State ownership (%)
I. Under Mumtalakat Holding Company :   
Aluminium Bahrain (ALBA) Aluminium 77 
Bahrain Telecommunications Company (BATELCO) Telecommunications 36.7 
Tourism Projects Company Tourism 100 
International Circuit Company Tourism (F1 racetrack) 100 
Bahrain Flour Mills Company Agriculture 65.7 
Bahrain Livestock Company Agriculture 25 
Properties Company .. 100 
General Poultry Company Agriculture 100 
Gulf Aluminium Rolling Mill Company (GARMCO) Aluminium 37.29 
Durrat Al Bahrain Tourism 50 
Bahrain International Golf Company Tourism 14.29 
Lulu Tourism Company Tourism 50 
Al Areen Spa Tourism 33 
Zallaq Resort Company .. 8.7 
Southern Development .. 25 
Huwar Islands Development Company Tourism 100 
Awali Properties Company .. 100 
Huwar Holding Company  33.3 
Bahrain Family Entertainment Company Tourism 12.5 
Arab Shipbuilding and Repair Yard Company (ASRY) Shipbuilding 18.5 
Bahrain Development Bank (BDB) Financial services 100 
Housing Bank Financial services 100 
National Bank of Bahrain  Financial services 49 
Gulf International Bank Financial services 12.1 
Gulf Air Air transport 50 
Arabian Navigation Company  2.1 
Arabian Marine and Petroleum Transport Maritime transport 3.8 
Arabian Petroleum Investment Company Petroleum 3.0 
Arabian Telecommunications Est Telecommunications 2.5 
Arabian Investment Company  1.7 
Arabian Pharmaceutical Industrie s Company Pharmaceutical 0.9 
Islamic Finance House Financial services 0.2 
McLaren Company Automotive 30 
Arabian Petroleum Services Petroleum 3.0 
Gulf Investment Corporation .. 16.7 
II. Under National Oil and Gas Authority :   
Bahrain Petroleum Company (BAPCO) Oil and gas 100 
Bahrain National Gas Company (BANAGAS) Gas 75 
Gulf Petrochemical Industries Company (GPIC) Petrochemicals 33.3 
Bahrain Aviation Fuelling Company (BAFCO) Fuels 60 
.. Not available. 
Source:  Information provided by the Bahraini authorities.  
77. The Supreme Privatization Council was created in March 2001 to manage the privatization 
programme. The Council of Ministers delegates to the Ministry of Finance, in coordination with the 
EDB and the ministries concerned, the administrativ e and technical preparations needed to implement 
the privatizations. Decisions to privatize, liquidate, or commercialize SOEs are made on a case-by-case basis. The revenue from the privatization progra mme is deposited in the general reserve of the 
                                                     
 
51 U.S. Department of State (2005a). Bahrain WT/TPR/S/185 
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State and spent, on a discretionary basis, on, inter alia , restructuring operations needed for 
privatization and to cancel any due debts, and to finance retraining of the staff in the privatized 
companies.   
78. Under Law No. 41/2002, the Privatization Comm ittee (PC) was established in 2006 to make 
policy decisions on privatization. It is composed of representatives of the EDB and the Ministry of 
Finance;  the Minister of Finance acts as Chairman.52 Bahrain, together with the World Bank, has 
drawn up a blueprint for its privatization and outsour cing programme. Some of its main elements are: 
creation of the PC to ensure proper coordination between central agencies; implementation of the 
privatization programme and launch of privatization projects according to clear and defined standards; 
establishment of multi-sector regulators to oversee service delivery; and outso urcing of government 
services where feasible.53 
79. Some of the most important SOEs privatized since 2000 include: Bahrain Aluminium 
Extrusion Company (BALEXCO); Al Ezzel Power Plant; Hidd Power Plant; and Transport Directorate (passenger buses). The management of the ports (both Mina Salman and Mina Khalifa bin Salman) has been under a 25-year concession to AMP Mueller since 2006
54, while Aluwheel (an 
aluminium company) and Bahrain Alloy Manufact uring Company (BAMCO) have also been under 
concessions.  In the coming years, more priva tizations are expected, including postal services, 
sewerage, electricity and water plants, and the Equestrian and Horse Racing Club.   
80. Bahrain privatized the importation of li ve sheep from Australia on 1 January 200155, and 
starting 1 January 2006 the private sector is free to import fresh or frozen meat from any country. 
Previously, Bahrain had notified the WTO Working Party on State Trading Enterprises that the MIC 
is considered as a state-trading enterprise within the meaning of Article XVII:4(a) of the GATT 1994. 
According to the notification, the products covered are imports of live sheep from Australia because 
of religious reasons (Halal), and cultural prefer ence to consume only fresh meat slaughtered in 
accordance with Islamic principles. Alumina, used in the production of aluminium, is imported only 
by the state-owned Aluminium Bahrain (ALBA).  
(iv) Intellectual property rights 
(a) Overview 
81. As part of its harmonization efforts within th e GCC, and in accordance with its commitments 
under the WTO TRIPS Agreement, Bahrain has re cently enacted new legislation on patents, 
copyrights, trade marks, trade secrets, geographical  indications, integrated circuits, and industrial 
designs. In addition, a law on plant varieties is in the legislative process (Table III.10).56 The United 
                                                      
52 A new Directorate of Privatization and Outsourc ing will provide secretarial services to the PC. 
53 A draft Prime Ministerial Order has been prepared  on how privatization will be conducted. It also 
defines the areas of responsibility of the Ministry of Finance, EDB, and other relevant ministries and 
stakeholders. 
54 The ports will be managed by a state-owned company before the end of five years from the date of 
the concession. 
55 From 1 January 2001 until 31 D ecember 2005, the function of impor ting live sheep from Australia 
was passed from the MIC to the Bahrain Livestock Company, a private enterprise (WTO document 
G/STR/N/4,5,6/BHR, 27 February 2001).   
56 The proposed Plant Variety Bill grants breeders protec tion on new plant varieties.  It is based on the 
UPOV Model law.  WT/TPR/S/185 Trade Policy Review 
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States removed Bahrain from its Special 301 Watch Li st in 1999 in recognition of its improved IPR 
protection.57 
82. The main institutions responsible for intellectua l property matters are: the Industrial Property 
Directorate (IPD) of the MIC, which includes the National Patent Office, the Trademark Office, and 
the Industrial Property Control Section; the Copyrigh t Protection Office (CPO) within the Ministry of 
Information; the Directorate General of Customs for matters related to border measures; courts of law 
for enforcement issues; and the GCC Patent  Office (based in Riyadh, Saudi Arabia). 
Table III.10 
Summary of IPR legislation in Bahrain 
IPR Main legislation Duration of protection Minimum duration of 
protection under TRIPS 
Copyright Law No. 22 of 2006 on Copyright 
and Neighbouring Rights Life of author plus 20-70 years Life of author plus 50 years 
Patents Law No. 1 of 2004 (as amended 
by Law No. 14 of 2006) on 
Patents and Utility Models 20 years from the date of filing for 
patents; and 10 years from the date of 
filing for utility models. 20 years from date of filing 
Trade marks Law No. 11 of 2006 on 
Trademarks 10 years, renewable indefinitely for 
periods of ten years At least seven years;  
renewable indefinitely 
Trade secrets Law No. 12 of 2006 (amending 
Law No. 7 of 2003) Five years for new pharmaceutical 
products and ten years for new 
agricultural/chemical products (from date of approval) No specific period 
Geographical 
indications Law No. 16 of 2004 on Protection 
of Geographical Indications Not  specified Unlimited 
Integrated circuits  Law No. 5 of 2006 for Integrated 
Circuits 10 years from date of filing or the first 
commercial exploitation, whichever is 
earlier, and renewable for five years. Ten years from first 
commercial exploitation 
Industrial designs Law No. 6 of 2006 for Industrial 
Designs 10 years, renewable for five years At least ten years 
Plant varieties Plant Variety Bill Not  specified No specific period 
Source:  Information provided by the Bahraini authorities.  
83. Bahrain is party to various intellectual propert y treaties and conventions.  It acceded to the 
WIPO Convention (in June 1995); the Paris Conventi on on the Protection of Industrial Property (in 
October 1997); and the Berne Convention on Lite rary and Artistic Works (in March 1997). In 
December 2005, Bahrain acceded to five additional treaties: the Patent Law Treaty (PLT); the Madrid 
Protocol (Madrid Agreement Concerning the Inte rnational Registration of Marks); the Nice 
Agreement on International Classification of G oods and Services; the WIPO Copyright Treaty 
(WCT); and the WIPO Performances and Phonograms Treaty (WPPT).58 In March 2007, Bahrain also 
became party to the Patent Cooperation Treaty (PCT), and to the Trademark Law Treaty (TLT). 
According to the authorities, Bahrain is in the process of becoming party to: the Vienna Agreement 
Establishing an International Classification of the Fi gurative Elements of Marks; the Budapest Treaty 
on the International Recognition of the Deposit of  Micro-Organisms for the Purpose of Patent 
Procedure; and to the International Union fo r the Protection of New Varieties of Plants. 
                                                      
57 U.S. Department of State (2005a). 
58 WIPO online information.  Viewed at: http://www .wipo.int/clea/en/clea_tree1.jsp?expand=BH#BH. Bahrain WT/TPR/S/185 
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84. Bahrain's intellectual property legislation was reviewed by the WTO TRIPS Council in 
June 2001.59 
(b) Patents 85. Law No. 1/2004 (as amended by Law No. 14/2006)  on Patents and Utility Models replaced 
the 1955 Law on Patents, Designs and Trademarks. U nder the law, the definition of the patentable 
subject matter was changed to conform with Article 27 of the TRIPS Agreement. Technical 
inventions based on human necessities, performing operations, chemistry, physics, pharmaceutics, 
biotechnology, and mechanics are patentable provided they are new, involve an inventive step, and 
are capable of industrial application. Phar maceutical products are also patentable.  The decision to 
grant a patent or utility model is published in the Official Gazette for opposition by any interested 
party within sixty days of publication. Once granted,  patent protection is for 20 years from the date of 
filing, while for protection of utility models is 10 y ears from the filing date of the application. In both 
cases, annual maintenance fees (ranging from BD  40-76 for individuals, and from BD 80-152 for 
companies) are due from the beginning of the second year until expiry of the protection period. 
86. The new patents regime also established the mechanism and conditions for the granting of 
compulsory licences. The assignment has no effect against third parties unless it is registered at the 
National Patent Office in the IPD, and published in the Official Gazette . Compulsory licences have 
not been granted so far, and there is no provisi on on parallel imports of  patented products.  
87. Under Article 11 of Law No.1/20 04, patent owners have the ex clusive right (as provided for 
under TRIPS Article 28.1) to assign the patent, or have it transferred by succession, as well as the 
right to conclude licensing contracts. The law also prescribes punishment for infringement of the 
rights of a patentee (section (h) below). 
88. Pursuant to Decision No. 54/2006, the IPD bega n accepting filing of pate nt and utility model 
applications on 14 June 2006, and the Implem enting Regulations of Law No. 1 of 2004.
60 The 
examination of patent and utility model applications is to be c onducted by trained staff with the 
support of national and international authorities. According to the implementing regulations, the 
following documents are required: power of attorney; certificate of incorporation (if applicant is not 
an individual); an abstract of the invention in English and Arabic; technical specifications of the 
invention in English and Arabic; and a certified copy of the priority document, if convention priority 
is claimed.61 
(c) Copyright and neighbouring rights 
89. Law No. 22/2006 on Copyright and Neighbouring Rights62, enacted on 25 June 2006 replaced 
the Copyright Law of 1993. To conform with Ar ticles 12 and 14 of the TRIPS Agreement, Law 
No. 22/2006 increased the term of protection (the author’s lifetime plus 70 years), introduced protection to neighbouring rights, and provided retr oactive protection. Copyright protection covers 
                                                     
 
59 WTO document IP/Q-Q4/BHR/1, 6 December 2001, contains the introductory statement made by 
Bahrain, as well as the questions posed and answers given during the review. 
60 Published in the Official Gazette  No. 2738, 10 May 2006. 
61 The certificate of incorporation and the priority document may be submitted within three months 
from filing the patent or utility model.  The specifications may be submitted within four months from the filing date. The remaining documents must be submitted at the time of filing. The application would be deemed 
abandoned if the applicant fails to submit the documents  as indicated. The MIC has an online patent, trade mark, 
and design registration service at: http://www.industry.gov.bh/english/. 
62 Published in the Official Gazette  No. 2745, 28 June 2006. WT/TPR/S/185 Trade Policy Review 
Page 44 
 
 
books, pamphlets and other writings, lectures, sermons, dramatic works, musical works, musical 
compositions, cinematographic works, works of drawi ng, painting, architecture, sculpture, engraving, 
photographic works, works of applied art, illustrati ons, maps, plans, sketches and three-dimensional 
works as well as computer programs. The neighbour ing rights covered by the new law are performers, 
producers of sound recordings, and broadcasting organizations. Law No. 22/2006 also asserts the 
literary and economic rights of the copyright hol ders and their successors. Moreover, it introduces the 
principle of rental rights as required under TRIPS Article 11. 
90. Law No. 22/2006 gives authors and their successors in title the right to authorize or prohibit 
the commercial rental to the public of originals or copies of their copyright works within the limits 
allowed under Article 11 of the TRIPS Agreement.  It also provides for moral rights, and regulates 
acts permitted without the authorization of the right holder, such that those acts, whenever allowed, 
are within the limits stipulated under the Berne Convention and the TRIPS Agreement. In order to 
ensure protection and deter possible violations, penalties for copyright infringements have been 
stiffened (section (h) below). 
(d) Trade marks 
91. Law No. 11/2006 on Trademarks repealed the Trademarks Law of 1991.  Law No. 11/2006 
regulates the procedures for application, publication and registration of trade marks, service marks, 
collective marks, and certification marks.  It revised the definition of a trade mark to bring it into line 
with TRIPS Article 15.1; allows for smell and sou nd to be "registrable" as part of the mark; and 
introduces a definition of the concept of certificati on and collective marks. The decision to grant a 
trade mark is published in the Official Gazette for opposition by any interested party within sixty days 
of publication. Other features of the new law include: the introduction of priority rights for registration of well-known trade marks, allowing for thei r protection even if they are not registered (as 
provided under the Paris Convention); and granting privileges to the holder of a registered trade 
mark.
63 
92. According to Law No. 11/2006, a likelihood of confusion is presumed where an identical sign 
is used without the owner's consen t, for goods or services identical to  those for which the trade mark 
is registered. The Law also grants temporary protec tion for trade marks used in local and international 
exhibitions.  Article 19(b) of the Law protects a registered mark for ten years from the filing date;  and 
the right holder may request the renewal, for equivale nt periods during the last year of the term of 
protection. Registration may be cancelled by the Court if it is satisfied that the trade mark has not 
been used for an uninterrupted period of 5 years for no valid reason.64 
(e) Layout-designs (topographies) of integrated circuits, and industrial designs 93. Law No. 5/2006 for Integrated Circuits, and La w No. 6/2006 for Industrial Designs enacted 
on 29 April 2006
65, specify requirements for the registration, renewal, ownership transfer, and 
licensing of integrated circuits and industrial desi gns.  Under the new regime , protection for industrial 
designs and for integrated circuits is for 10 years from the date of filing the application or the first 
commercial exploitation anywhere in the world, whiche ver is earlier.  It is renewable once, for five 
years. 
                                                      
63 For instance, owners may assign trade marks with or without the transfer of the business to which 
they belong.  
64 Under Article 4 of Law No. 11/2006, either use or intended use qualifies for registration. 
65 Published in the Official Gazette  No. 2737, 3 May 2006. Bahrain WT/TPR/S/185 
 Page 45 
 
 
94. Law No. 6/2006 adopts the definition of industrial designs provided for by Article 25.1 of the 
TRIPS Agreement, introduces the possibility of multi- designs per application for registration, and the 
concept of provisional measures as provided for by TRIPS Article 50. Law No. 6/2006 also incorporates the priority right for registration as pr ovided under the Paris Convention, and allows for 
temporary protection for designs displayed in in ternational and local ex hibitions. In addition, 
cumulative protection is permitted under other laws (such as copyright) and other agreements and 
conventions to which Bahrain is a party. The regi stration system is based on non-examination and the 
law allows for opposition by third parties after registration. 
(f) Trade secrets 
95. At the time of its previous TPR, Bahrain did not have legislation on trade secrets. Law 
No. 12/2006 on Trade Secrets (amending Law No. 7 of 2003) regulates trade secrets and sets out measures to be taken against violations.  Protecti on is for 5 years for new pharmaceutical products and 
10 years for new agricultural-chemical products, from th e date market approval was granted.  It also 
incorporates the provisions of Article 39 of the TRIPS Agreement on protection of undisclosed information, and extends coverage to data excl usivity. Since Bahrain is a party to the Paris 
Convention, Article 10bis of that Convention on Unfa ir Competition is considered part of Bahrain's 
national law. 
(g) Geographical indications 96. Law No. 16/2004 on the protection of geographical  indications replaced Article 61 of the Law 
of Commerce
66; it is administered by the Trademark Office. Under Articles 1 and 3 of the law, 
geographical indications identify a good as originating in a territory or a region in a WTO Member or 
a State that deals with Bahrain on a reciprocal basis, where the quality, reputation or other characteristics of the good, which affect the sales prom otion thereof, are essentially attributable to its 
geographical origin.  Such indications are protected provided that they have acquired protection in the 
country of origin.  The law explicitly states that  any person may claim more favourable protection 
granted to a geographical indication under any agreem ent, convention or treaty to which Bahrain is a 
party. The law excludes protection for geographical i ndications that are not or cease to be protected in 
their country of origin, or which have fallen into disuse in that country. 
(h) Enforcement 97. According to Article 41 of Law No.1/2004 on Patents and Utility M odels, any person who 
commits an offence shall be penalized by imprisonme nt of not less than three months and not more 
than one year, and/or a fine of not less than BD 500 and not exceedi ng BD 2,000. Article 12 of Law 
No.1/2004 implements Article 34 of TRIPS with resp ect to the reversal of the burden of proof in 
judicial proceedings, where the subject matter of a pa tent is a process for obtaining a product. It also 
provides for the reversal of the burden of proof (TRI PS Article 37.2), i.e. the burden of proof will be 
on the alleged infringer only if there is a substantia l likelihood that the identical product - which is the 
subject of the claim - was made by the patented process and provided that the patent owner has been 
unable through reasonable effort to determine the process actually used. 
98. According to Law No. 22/2006 on Copyright a nd Neighbouring Rights, copyright violators 
are subject to a wide spectrum of penalties, in cluding imprisonment ranging from three months to one 
year, and a fine ranging from BD 500 and BD 4, 000. According to the authorities, most cases of 
copyright infringement in Bahrain relate to music and movies from Asia. Over the last two years, 
around 250,000 CDs and DVDs have been seized and destroyed by Customs. 
                                                     
 
66 Law No. 16/2004 was published in the Official Gazette  No. 2648, 18 August 2004. WT/TPR/S/185 Trade Policy Review 
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99. Under Article 13 of Law No. 16/2006 on Geogra phical Indications, any person who misleads 
the public by indicating or suggesting through design ation or presentation that a product originates in 
a geographical area other than its true place of or igin, is liable to imprisonment of between three 
months and a year, and/or a fine of BD 500-2, 000. This also applies to a person who uses a 
geographical indication in a manner that causes unf air competition and contradicts honest practices. 
100. During the last few years, Bahrain has made significant progress in reducing copyright piracy, 
and no significant violations of patents and trade marks have been reported.  Nevertheless, software 
piracy, which has shifted from retail to end-u ser violations, has been reported as problematic.67 The 
Government's enforcement campaign began in la te 1997, and was based mainly on inspections, 
closures, and improved public awareness. Since then , continuous monitoring by the CPO, both in 
Bahrain and, in cooperation with the Directorate Ge neral of Customs, at the border, has ensured a 
decline in rates of piracy.  The CPO has been gr anted significant powers, including joint powers with 
the police to arrest alleged infringers and confi scate goods suspected of violating copyright laws. 
According to the authorities, the CPO may also act in an ex-officio capacity in taking action against 
alleged infringers. 
101. According to Article 47 of Law No. 11/2006 on Trademarks, offenders will be penalized by 
imprisonment of not less than three months and not more than one year, and/or a fine of not less than BD 500 and not exceeding BD 4,000. Under Article 35 of Law No. 5/2006 on Integrated Circuits, any 
person who commits an offence is liable to imprisonm ent of not less than three months and not more 
than one year, and/or a fine of not less than BD  500 and not exceeding BD 2,000. The same penalties 
are set for offences under Article 30 of Law No. 6/2006 on Industrial Designs. 
                                                     
 
67 U.S. Department of State (2005a).