WORLD TRADE  
ORGANIZATION  G/VAL/N/1/SAU/1 
6 February 2007 
 
 (07-0506) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON  
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
 
SAUDI ARABIA 
 
  The following communication, dated 3 October 2006, is being circulated at the request of the delegation of Saudi Arabia.  
_______________ 
 
   The Kingdom of Saudi Arabia hereby notifies the following legislation on customs valuation
1: 
 
- The Common Customs Law of the Gulf Cooperation Council (GCC), its Rules of 
Implementation and Explanatory Notes thereof, which is applied by the Kingdom of Saudi 
Arabia and other GCC Member States with effect from 1 January 2003. 
 - Ministerial Decision No. 1207 dated 24 June 2004 by the Ministry of Finance of the Kingdom 
of Saudi Arabia, on Value Determination of Customs Purposes. 
                                                     
 
1 In English only. G/VAL/N/1/SAU/1 
Page 2  
 
   ﻧﻈﺎم"ﻗﺎﻧﻮن" اﻟﻤﻮﺣﺪ  اﻟﺠﻤﺎرك  
Common Customs Law  
of the GCC States  
  
Rules of Implementation  
And Explanatory Notes Thereof  
  
January 2003   
•        This English text is to be used for reference only.  
•        The Arabic Text is the authentic and binding version.  G/VAL/N/1/SAU/1 
 Page 3 
 
 
  Introduction  
 Unification of the customs laws and procedur es in the Customs Administrations of the GCC 
Sates is one of the main objectives that the G CC States seek to achieve. The adoption of a common 
customs law, which unifies customs procedures in all GCC Customs  administrations and enhances 
cooperation among member States in the customs fiel d, is one of such envisaged objectives.   
  The efforts to achieve this objective had b een made since 1992 and the technical committee, 
assigned by the directors general of customs to underta ke this task, had held seventeen meetings for 
this purpose which ended with the appr oval of the Law referred to above. 
  To ensure that this Law is in line with the provisions of the international agreements relating 
to customs, the Secretariat General had dispatched  English versions of this Law to both the World 
Trade Organization and the World Customs Organiza tion for their comments. The Secretariat General 
had received those comments and passed them to th e competent technical committee for consideration 
and proposing appropriate action. 
  The Common Customs Law of the GCC Stat es was adopted in the 20th Session of the 
Supreme Council held in Riyadh during the period 27-29 November 1999 provided that it would be 
implemented as a reference Law for one year from th e date adopted by the Supreme Council and that 
it would be revised in the light of the comments re ceived by the Secretariat General from the member 
States in an attempt to have it obligatorily implem ented by all the Customs Administrations of the 
GCC States by 2002.   In order to complete the necessary implementation aspects of the Common Customs Law in  
the customs administrations of the  GCC States  and to review the comments of the member States 
and finalize the preparation of the Rules of Impl ementation and the Explanatory Notes, the Supreme 
Council, in its 21st Session held in Manama, Ba hrain 30-31 December 2000, decided to extend the 
period of the reference implementation of th e GCC Common Customs Law for one more year 
provided that it should be obligatorily implemented by all the Customs Administrations of the GCC 
States in January 2002. 
 
 The said decision "resolution" of the Supreme Council was a step forward that  had enabled 
the customs administrations and the ad hoc committees of the GCC States to complete all the aspects 
that would provide the necessary factors for the proper implementation of this Law  in order to achieve the objective for which it was made, that is the unification and facilitation of the customs 
procedures in the GCC States which would enhance the trade exchange among them and between the 
rest of the  world countries, and lay down the firm foundations of the customs Union of the GCC 
States.   Pursuant to the recommendation of the Ministerial Council, in its 81
st Preparatory Session, to 
adopt the recommendation of the Financial and Econ omic Cooperation Committee (The Ministers of 
Finance and Economy of the GCC States) in its 55th Meeting concerning the Common Customs Law 
of the GCC States, the Supreme Council, in its 22nd Session held in Muscat on 30-31 December 2001, resolved as follows:  1. Approval of the amendments proposed to the Common Customs Law of the GCC States and 
the Rules of Implementation and the Explanatory Notes thereof.   
 2. This Law shall come into force as of January 2002.   G/VAL/N/1/SAU/1 
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  3. Implementation of Articles (9, 98) rela ting to the Common Customs Tariff and the 
mechanism for the collection and distribution (allo tment) of duties in the customs union of the 
GCC States shall coincide with the setting up of the customs union.  
 4. Article (97) relating to drawback "the ref und of the "customs taxes duties" on the goods 
re-exported to outside of the GCC States"  shall be implemented after the issuance of the rules 
of implementation thereof.  
 5. Provisions of Article (109) entitling the GCC nationals the right to practice the activity 
(profession) of customs clearance shall be im plemented after the Financial and Economic 
Cooperation Committee has agreed to permit th e GCC nationals to practice this activity 
"profession" in the GCC States.  
  The Supreme Council, in its 23
rd Session held in Doha, Qatar 21-22 December 2002, 
approved the decisions of the Financial and Economic Cooperation Co mmittee concerning the 
application of Article (9) relating to the applica tion of the Common Customs tariff, and Article (97) 
relating to Drawback, Article (98) relating to the goods exempted from the cu stoms taxes "duties" and 
Article (109) permitting the GCC nationals to practice the activity of customs clearance. 
  This Law falls in (17) sections comprising (178) Articles that contain provisions regulating the customs work, the areas subject to customs cont rol, the nature of the customs procedures at the 
land, sea, air and postal customs offices that apply to the import and export operations, the application 
of the customs tariff and the collection of the customs duties on the imported goods, the stages of the customs clearance of the goods, the exemptions and temporary admission of goods, the documents to be produced to customs for the clearance of the goods , and the provisions for the establishment of free 
zones and duty-free shops and the Law of the work of the customs brokers (clearing agents), the 
treatment of the customs offences and the smuggli ng cases and the rights and duties of the  customs 
officers. Hence this Law is deemed the legal inst rument regulating the customs procedures in the 
customs administrations of the GCC States and the relationship between these administrations and the 
trade community (i.e. nationals, residents, importers ) so that the person dealing with the customs  
administrations would find no difference in the cust oms procedures applied in any of the GCC States. 
This Law does also regulate the relationship between these customs administrations and the 
government departments in each State. 
  When this Law was being prepared, it was take n into account that it would be utilized in the 
customs work for the time being and it would also pr epare the customs administrations of the member 
States for the phase of the forthcoming customs uni on of the GCC States as it meets all requirements 
thereof.   
   
    G/VAL/N/1/SAU/1 
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  Common Customs Law of the Cooperation Council for the Arab States of the Gulf  
SECTION I 
General Provisions and Definitions  
Article 1 
 This Law is called "The Common Customs Law fo r the Arab States of the Gulf (GCC Sates)". 
Article 2 
 The following words and terms, wherever mentioned throughout this Law, its Explanatory 
Note and Rules of implementation, shall have the meanings hereby assigned for them, unless the 
context otherwise requires:  
 1. The term "the  Council " means the Cooperation Council for the Arab States of the Gulf.   
2. The term "the Minister " means the minister to whom the Customs Administration reports.  
3. The term "competent authority" means the authority to which the customs administration 
reports.  
4. The term "the Director General " means the Director General of Customs.  
5. The term "the Director " means the director of a Customs office.  
6. The term "the Administration " means the Customs Administration.  
7. The term " Customs office " means the sector, designated by the Minister, at each seaport, 
airport, land port or at any other place where there is a branch office of the Administration 
authorized to complete all or some of the customs procedures.  
8. The term " Law " means the rules and provisions governing customs work, and any other 
supplementing or amending rules or provisions.  
9. The term " customs zone " means that part of the lands or  seas subject to the customs control 
and procedures set forth herein which is of two kinds:  
 
 (i)  Sea customs zone: Which includes that pa rt of the sea located between the shores and 
 the end boundary of the territorial waters. 
 (ii)  Land customs zone: which covers th e lands located between the land boundaries or 
shores, on the one hand, and the internal line on the other hand, to be prescribed by a 
resolution by the Minister or the competent authority. 
 
10. The term " customs line " means that line conforming to the political boundaries (borders) 
separating between the country and the adjacen t countries and the seashores surrounding that 
country.  
11. The term " customs tariff " means the nomenclature containing the descriptions of the goods 
and the respective taxes and customs duties as well as the rules and notes of the kinds and 
types of commodities.  
12. The term " customs taxes (duties) " means the amounts levied on the goods according to the 
provisions of this Law.  
13. The term " fees/charges " means the amounts collected by customs for the services rendered.  
14. The term " goods " means any natural, material or animal , agricultural, industrial or intellectual 
product.  
15. The term " type of goods " means the description mentioned in the customs tariff 
nomenclature.  
16. The term " the price actually paid or payable " means the total amount paid to the seller, 
directly or indirectly, for the goods imported by the buyer or for his favour.  
17. The term " the imported goods being valued " means the goods being valued for customs 
purposes.  G/VAL/N/1/SAU/1 
Page 6  
 
  18. The term " identical goods " means goods that are the same in all respects, including physical 
characteristics, quality and reputation. Minor differences in appearance would not preclude 
goods otherwise conforming to the defini tion from being regarded as identical.  
19. The term " similar goods " means goods which, although not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially interchang eable. The quality of the goods, their reputation 
and the existence of a trademark are among the factors to be considered in determining 
whether goods are similar.  
20. The term " sales commission " means the commission paid to the seller’s agent who is related 
to the seller or the factory, governed by or acting for its favour or on its behalf.  
21. The term " packing costs " means the cost of all packing an d coverings (excluding instruments 
of international traffic” whether for he labour or  the materials used for placing the goods in 
packings suitable for ship ping to the GCC states.  
22. The term " unit price at the greatest total quantity " means the unit price at which certain 
goods are sold to unrelated persons, at the firs t commercial level after importation in its state 
when imported or after further preparation or  processing, if the importer so requested.  
23. The term " related persons " means persons who are:  
  (a)  legally recognized partners in business, 
(b)  officers or directors of one another’s business, (c)  employer and employee, 
(d)  any person directly or indirectly owns, c ontrols or holds 5 per cent  or more of the 
outstanding voting stock shares of both of them, 
(e)  one of them directly or indirectly controls the other, (f)  both of them are directly or indirectly controlled by a third person, (g) together they directly or indirectly control a third person, 
(h)  members of the same family. 
 
24. The term " Valuation Agreement " means the Agreement on Implementation of Article VII of 
the GATT 1994.  
25. The term " origin of the goods " means the producing country, whether these goods are natural 
resources, agricultural crops or animal or industrial products.  
26. The term " prohibited goods " means any goods the import or export of which is prohibited 
under the provisions of this Law or any other Law.  
27. The term " restricted goods " means those goods the import or export of which is restricted 
under the provisions of this Law "law" or any other Law.  
28. The term " source " means the country from which the goods is imported.  
29. The term " importer " means the natural or legal person importing the goods.  
30. The term " exporter " means the natural or legal person exporting the goods.  
31. The term " manifest " means the document containing a full description of the goods carried  
on  the various means of transport.  
32. The term " free zone " means a part of the state’s territo ries in which commercial or industrial 
activities are exercised under the respective laws of  that state. Any goods entering that zone 
are considered to be outside the customs zone and shall not be subject to the usual customs 
control and procedures.  
33. The term " duty-free shop " means that licensed building or place wherein goods are placed 
free of customs duties (taxes) for purposes of display or sale.  
34. The term " customs declaration " means the goods declaration or the  declaration submitted 
by the importer or his representative describi ng the elements identifying the declared goods 
and quantity thereof in details according to  the provisions of this Law .  
35. The term "
storehouse " means that building or place intended for the temporary storage of 
goods pending their withdrawal under one of the customs procedures whether such  G/VAL/N/1/SAU/1 
 Page 7 
 
 
  place/building is directly administered by th e Administration or by the official public 
agencies or the investors.  
36. The term " warehouse " means the place or facility wherein the goods are deposited under 
supervision of the Administration free of customs duties (taxes) according to the provisions herein.  
37. The term " carrier " means the owner of a means of transportation or his authorized 
representative (under an official authorization).  
38. The terms " specified route " means the routes specified by the minister for the carriage of the 
imported or exported goods into/from the country  or the goods in transit under a resolution.  
39. The term " Treasury “ means the public treasury.  
40. The term " Customs Clearance " means documentation of the customs declarations for the 
imported, exported and transit goods accordin g to the procedures provided for herein.  
41. The term " Customs Broker " means any legal or natural person licensed to undertake customs 
clearance for the account of the others.  
42. The term " representative of the customs broker " means any legal or natural person licensed 
to follow up customs procedures.  
 
Article 3 
 
 The provisions of this Law apply to the sove reign territories and territorial waters of the 
country. Notwithstanding, free zones, totally or pa rtially excluded from customs provisions, may be 
established in such territories. 
Article 4 
 
 Any goods crossing the customs line, at importa tion or exportation, shall be subject to the 
provisions of this Law.   
Article 5 
 
 The Administration shall perform its duty at th e customs office or customs zone and may also 
exercise its powers within the extent of the c ountry’s territories and territorial waters under the 
conditions set forth herein.   
Article 6 
 
 Customs offices are established and cancelled by a resolution of the minister or the competent 
authority. 
Article 7 
 
 Competencies and work hours of the customs offices are specified by a resolution of the 
minister or the competent authority.   
Article 8 
 
 Subject to the provisions of the articles relating to the inspection of goods, customs 
procedures shall only be conducted at the designate d customs offices as set forth in article 7. 
 G/VAL/N/1/SAU/1 
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  SECTION II 
 
Principles of Application of the Customs Tariff 
 
Article 9 
 
 Goods imported into the country are subject to  the customs taxes "duties" specified in the 
customs tariff, and the other applicable fees, excl uding those exempted under the provisions of this 
Law or under the Unified Economic Agreement of th e GCC Arab States or any other international 
agreement within the fra mework of the Council. 
 
Article 10 
 
 The duty rate of the customs tariff shall be either ad Valorem  (percentage of the value of 
goods) or specific (an amount levied on each unit of the goods), or both. 
 
Article 11 
 
 Customs taxes "duties" are levied, amended a nd abandoned by the legal instrument applicable 
in each Member State subject to th e respective resolutions issued by the Council and the provisions of 
the international agreements in force. 
 
Article 12 
 
 Resolutions amending the customs taxes "duti es" shall specify the date at which such 
amended taxes "duties" shall be effective. 
 
Article 13 
 
 Imported goods are subject to the customs taxes " duties" applicable at the date of registering 
the customs declaration with the customs offices unless otherwise provided for in the text of the 
resolutions amending the customs tariff. 
 
Article 14 
 
 When customs taxes "duties" are to be levi ed on the goods deposited at the warehouse due to 
the expiry of the warehousing period, such goods shall be subject to the tariff provisions applicable at 
the date of registering the customs declaration. 
 
Article 15 
 
 Goods taken out from free zones and duty-free shop s into the local markets are subject to the 
customs tariff effective at that time. 
 
Article 16 
 
 Smuggled goods (contrabands) or the like are s ubject to the customs tariff prevailing at the 
time of the detection or occurrence of smugg ling, if applicable, whichever is higher. 
 
Article 17 
 
 The customs tariff effective on the sale day shall apply to the goods sold by the customs 
office according to the provisions provided for herein.    G/VAL/N/1/SAU/1 
 Page 9 
 
 
  Article 18 
 
 Damaged goods shall be subject to the customs tariff based on their value at the date of 
registering the customs declaration.    
SECTION III 
 
Prohibition and Restriction 
 
Article 19 
 
 A customs declaration shall be produced for any goods entering or leaving the country; the 
goods are then presented to the customs au thorities at the nearest customs office. 
 
Article 20 
 
 Marine means of transport entering the count ry, irrespective of their load capacity, are 
prohibited from anchoring in any seaports (harbours)  other than those designated for receiving them, 
excluding the case of sea emergency or force maje ure wherein the shipmaster shall immediately 
notify nearest customs office or secur ity point of such occurrence.   
 
Article 21 
 
 Vessels, loaded with prohibited or restricted goods or goods subject to hi gh rates of duty, of a 
loading capacity less than two hundred marine tons  may not enter or get involved in the shipping 
activity within the marine customs zone except in circumstances arising from sea emergency or force 
majeure, in which case the shipmaster shall prompt ly notify the nearest cust oms office or security 
point of such occurrence, excluding goods transporte d within the local seaports of the country whose 
customs procedures have been finalized.   
Article 22 
 
 Aircraft departing or arriving in the country ma y not take off or land at the airports where no 
customs offices exist unless in cases of force maje ure, in which case the shipmaster shall promptly 
notify nearest customs office or security point of  such occurrence and submit a report, approved by 
the customs office notified of that occurrence, unless otherwise provided for in any other Law or 
resolution. 
 
Article 23 
 
 Land means of transport may not enter or leave the country through the areas where no 
customs offices exist.   
 
Article 24 
 
 By virtue of the provisions of this Law or any other Law or resolution, the Customs 
Administration shall prohibit admission, transit or exit of the prohibited goods or infringing goods as well as the entry, transit or exit of any restri cted goods except under approval from the competent 
authorities in the country.   G/VAL/N/1/SAU/1 
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  SECTION IV 
 
Distinguishing Elements of the Goods 
(Origin, Value, Type) 
 
Article 25 
 
 Imported goods are subject to the proof of or igin according to the rules of origin adopted 
within the framework of the international a nd regional economic agreements in force.  
 
Article 26 
 
 The value for customs purposes shall be calcul ated according to the rules and principles set 
forth in the rules of implementation.  
Article 27 
 
 Acceptance of the value as a distinctive element of the goods requires the following: 
 1. Any customs declaration shall be accompanie d by a detail original invoice and the director 
general or his representative may allow fina lization of the clearance procedures without 
presentation of the authenticated original i nvoices and the required documents against an 
undertaking to produce them within a peri od not to exceed 90 days from the date of 
undertaking.  
2. The value of the goods shall be proved by  producing all original invoices and documents 
reflecting the value according to the rules set forth in Article 26.  
3. The customs office may require all documents , contracts, correspondence and other relevant 
documents without having to accept all that is stated in them or in the invoices themselves.  
4. The Administration may request Arabic tran slation of the invoices issued in a foreign 
language showing details of the goods in acco rdance with the customs tariff as well as the 
other documents, if so required.  
 
Article 28 
 
 The value of the exported goods is that indicated in the customs declaration plus all the costs 
until arrival of the goods at the customs office.   
 
Article 29 
 
 Goods not mentioned in the customs tariff (H armonized System) and the explanatory notes 
are to be classified according to the classificati on advice given by the World Customs Organization. 
Goods that fall under national subheadings in the cust oms tariff are to be classified within the context 
of the Common Customs tariff of the member States of the Council. 
  G/VAL/N/1/SAU/1 
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  SECTION V 
 
Importation and Exportation 
 
Chapter I 
Importation 
 
1.  Sea Transportation 
 
Article 30 
 
(a)  Any goods imported into the country by  sea shall be registered in the manifest. 
(b)  A single manifest for the whole load signed by the shipmaster shall be made which shall 
contain the following information: 
(i)  Name and nationality of the ship and its registered load. (ii)  Types of the goods, total weight thereof and the weight of bulk good, if any. If goods 
are prohibited, their actual description shall be mentioned.  
(iii)  Number of packages and pieces, description of packing, marks and numbers thereof. (iv)  Names of the consignor and consignee. 
(v)  The seaports where the goods are shipped from (ports of loading). 
(c)  When entering the customs zone, the shipmaster shall produce the original manifest to the 
competent authorities. 
(d)  When the ship enters the harbour, the ship master shall submit to the customs office the 
following:  
1.  The cargo manifest. 2.  The manifest of the ship’s supplies (logi stics) and the crew’s baggage and belongings. 
3.  A list of the passengers’ names. 
4.  A list of the goods to be unloaded at this port. 
5.  All the shipping documents which the cust oms office may require for application of 
the customs Laws. 
(e)  Manifests and documents shall be submitted within sixty-three hours from the time the ship 
enters the seaport, excluding official holidays. 
 
Article 31 
 
 If the manifest belongs to a ship (vessel) that does not make regular voyages or that does not 
have a forwarder at the port, or if it is a sail ship, then the manifest must be endorsed by the customs 
authorities at the shipping port. 
 G/VAL/N/1/SAU/1 
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  Article 32 
 
(a)  Cargo of the ships and all other marine m eans of transportation may be unloaded only within 
the customs zone at the port. Any shipment  may be unloaded or transhipped only under 
supervision of the customs office. 
 
(b)  Unloading and transhipment shall be comple ted according to the conditions laid down by the 
director general. 
 
Article 33 
 
 Shipmaster, forwarder or his representative shall be held responsible for any shortage in the 
number of pieces or packages or the amount of the bulk goods until delivery of the goods to the 
customs warehouses or acceptance of the goods by the ow ners, if so allowed, subject to provisions of 
Article 54 herein. 
 
Article 34 
 
 If a shortage in the number of unloaded pi eces or packages or in the amount of bulk goods, 
compared to those mentioned in the manifest, is f ound out, the shipmaster or his representative shall 
justify such shortage and prove that it has occu rred outside the marine customs zone. If documents 
cannot be submitted at once, a time period not exceed ing six months may be given to submit the same 
against a guarantee ensuring the Administration’s rights. 
 
2.  Land Transportation 
 
Article 35 
 
 Customs procedures of the goods imported by la nd should be completed at the first customs 
office and may be referred to another inland customs office, when necessary, under a resolution by the 
director general. 
 
Article 36 
 
(a)  A manifest of the total cargo of the land m eans of transportation shall be prepared and signed 
by the carrier or his representative and shall contain adequate information on the means of 
transportation, its cargo and all other details according to the conditions prescribed by the 
director general. 
 (b)  Carriers or their representatives shall submit th e manifest to the port immediately upon arrival 
therein to. 
 
3.  Air Transportation 
 
Article 37 
 
 Subject to the provisions of Article 22 herein , aircraft crossing the country borders shall 
follow the specified routes and shall land only at the airports where customs offices exist. 
   G/VAL/N/1/SAU/1 
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  Article 38 
 
 A manifest of the airplane’s cargo shall be prepared and signed by the captain according to 
the conditions set forth in paragraphs a, b, c, d, of Article 30 herein. 
 
Article 39 
 
 The captain or his representative shall subm it the manifest and the lists mentioned in 
Article 38 herein to the customs officers and sha ll deliver these documents to the customs office upon 
arrival of the aircraft. 
 
Article 40 
 
 Goods may not be unloaded or dropped out of th e aircraft during flight unless it is necessary 
to do so for safety purposes, provided that the custom s office shall be notified of the same, subject to 
the provisions set forth in the other relevant Laws. 
  
Chapter II 
Exportation 
 
Article 41 
 
 Owners of the means of transportation of goods, loaded or unloaded, shall - when leaving the 
country - submit to the customs office the manifest according to the provisions of Section 1 of this 
Chapter and shall obtain exit permission. However, th e Director General, may, in certain cases, make 
an exception to this condition. 
 
Article 42 
 
 Exporters of goods shall proceed with the goo ds to be exported to the competent customs 
office and declare them in detail. Carriers towa rds land borders may not overpass the customs offices.  
 
Chapter III 
Postal Traffic 
 
Article 43 
 
 Goods are imported or exported by mail accord ing to the provisions of this Law and subject 
to the other applicable international posta l agreements and local Laws in force. 
 
Chapter IV 
Common Provisions 
 
Article 44 
 
(a)  Several sealed packages, assembled in any wa y whatsoever, may not be stated in the manifest 
as a single package.  Containers, palettes and tra ilers are subject to the instructions given by 
the director general.  
 
(b)  A single consignment may not be split. Howe ver, for acceptable reasons, the director general 
may allow such splitting, provided that such splittin g shall not result in a loss to the treasury.  
 G/VAL/N/1/SAU/1 
Page 14  
 
  Article 45 
 
 Provisions of Articles 32, 33, and 34 herein sha ll apply to the land and air transport in respect 
to the unloading and transhipment of goods. Driv ers, captains of aircraft and carriers shall be 
responsible for any shortage in  case of land and air transport. 
 
Article 46 
 
 The Administration may use Electronic Data Interchange (EDI) in customs clearance. 
  
SECTION VI 
 
Stages of Customs Clearance 
 
Chapter I 
Customs Declarations 
 
Article 47 
 
 When clearing any goods, even if exempt ed from customs taxes and duties, a detailed 
customs declaration,  conforming to the forms approved within the framework of the GCC states, shall 
be submitted to the customs office containing all the information that enable application of the 
customs Laws and levying applicable customs taxes and duties and for statistical purposes. 
 
Article 48 
 
 Subject to the provisions of paragraph (1) of  Article 27 herein, The director general shall 
specify the documents to be attached with the customs declarations and the information to be 
contained therein and shall allow the completion of the clearance procedures in the absence of any of 
the required documents against cash or bank gua rantees or a written undertaking to submit such 
documents according to th e stipulated conditions. 
 
Article 49 
 
 Contents of the customs declarations may no t be modified after registration; however, the 
applicant may apply in writing to the customs office  for correction before the customs declaration is 
referred to inspection. 
 
Article 50 
 
 Owners of the goods or their representativ es may check their goods before submitting the 
customs declaration and may take samples thereof,  when necessary, after obtaining permission from 
the Director and under supervision of the customs office.  Such samples shall be subject to the 
applicable customs taxes "duties". 
  
Article 51 
 
 No parties other than the owners of the goods  or their representatives may have access to the 
customs declarations excluding competent judicial or official entities. 
   G/VAL/N/1/SAU/1 
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  Chapter II 
Examination (Inspection) of Goods 
 
Article 52 
 
 The designated customs officer shall examine th e goods wholly or partially after registering 
the customs declarations according to the instructions of the director general. 
 
Article 53 
 
(a)  Examination of goods shall take place at th e customs office; however in certain cases such 
examination may be conducted outside the cust oms office according to the rules laid down by 
the director general. 
 (b)  Transferring the goods to the place of ex amination and the unpack ing and repacking of 
packages and all the other works required for ex amination shall be at the expense of the 
owner of the goods who will be held responsible until arrival of the goods at the place of 
examination. 
 (c)  Goods placed in the customs warehouses or at  the places intended for examination may not be 
removed without approval of the customs office. 
 
(d)  The individuals carrying the goods and presenti ng them for examination shall be acceptable to 
the customs office. 
 (e)  Access to the stores, customs warehouses, ha ngars, sheds and yards intended for the storage 
or deposit of goods and to the places allocated fo r examination may not be authorized to any 
person without approval of the customs office. 
  
Article 54 
 
 Examination shall be conducted only in the presence of the owner of the goods or his 
representative. Should a shortage in the contents of the packages develop, responsibility for such 
shortage is determined as follows:  
1.  If the goods had been placed in the cu stoms warehouses in packages that are in an 
apparently proper condition fro m which it can be ascertained that the shortage in their 
contents had occurred at the exporting country  prior to shipping, then such shortage 
shall be disregarded.  
2.  If the goods entering the customs  warehouses o stores  are in packages that are not in 
an  apparently  proper condition , the entity in charge of these warehouses  and stores shall , together with the carrier, record this occurrence in the acceptance report and 
verify the weight, contents and number of packages. It shall al so take the necessary 
precautions to ensure safety of the goods. In this case, the carrier shall be held 
responsible unless a reservation is indicated on the manifest and endorsed by the customs office of the exporting country in which case the shortage will be 
disregarded and the pursuit shall be discontinued. 
3.  If the goods have been admitted into the customs warehouses and stores in packages 
that are in an apparently proper condition, th en they became subject of suspicion, the 
entity in charge of the warehouses shall be responsible for any shortage or switching, 
if any. 
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  Article 55 
 
 When the customs office suspect s the presence of prohibited or illegal goods, it shall have the 
right to open the packag es for inspection. Such ope ning of packages may be authorized in the absence 
of the owner of the goods or his representative, if he refrains from attending the inspection at the 
specified time notified to him.  
  When necessary, the customs o ffice may inspect the goods before notifying the owner of the 
goods or his representative. Such inspection may be conducted by a committee formed, for this 
purpose, by a decision of the director general and a re port of the findings of inspection shall be made.  
  
Article 56 
 
(a)  The customs office may have the goods analyzed  by specialized agencies to verify the kind 
and specifications of the goods or their conformity to the Laws and regulations. 
 
(b)  Goods requiring the availability of certain cond itions and specifications to be released shall be 
subject to analysis (testing) and inspection; how ever the director may release them against an 
appropriate undertaking ensuring that they are not to be disposed of until the analysis result has come out.  
 
(c)  The director general may order that the goods , proved through inspection or analysis to be 
harmful or not conforming to the approved specifi cations, be destroyed at the expense and in 
presence of their owners or their representativ es. When necessary, such goods shall be 
re-exported to the source country in which case a report of the same shall be made.  
 
Article 57 
 
 Customs taxes "duties" shall be levied accordi ng to the contents of the customs declaration. 
Should physical inspection result in a difference (d iscrepancy) between the goods and what is stated 
in the customs declaration, customs taxes and duti es shall be levied on the basis of this finding 
without prejudice to the customs’ right to levy the applicable fines, when necessary, under the 
provisions herein. 
  
Article 58 
 
 If the customs office cannot verify the contents  of the customs declaration through inspection 
of the goods or the documents submitted, it may suspend inspection and request necessary supporting 
documents.   
Article 59 
 
 The customs office may re-inspect the goods under the provisions of Articles 51 - 56 herein.  
 
Chapter III 
Provisions Relating to Passengers 
 
Article 60 
 
 Items or belongings accompanying the passengers  shall be declared and inspected at the 
competent customs offices according to  the rules and practices laid down by the director general. 
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  Chapter IV 
Adjustment of the Value 
 
Article 61 
 
 A valuation committee composed of officers from the administration shall be established by a 
resolution of the director general to settle the di sputes arising between the customs office and the 
persons concerned about the value of the imported goods. Such committee may seek assistance of experts at its discretion.   
 Without prejudice to the importer’s right to app eal to court, the importer may appeal before 
the valuation committee against the decisions of increased value within fifteen days following 
registration of the customs declaration or from the date of the valuation notice sent to him by registered mail. Decisions of this committee shall be taken by majority and shall be effective once 
approved by the director general. The importer shal l be informed in writing of the decision taken by 
the committee concerning his complaint. Such decision shall be reasonable.  
 
Article 62 
 
(a) Should a dispute arise between the competen t customs officer and the owner of the goods 
about the value of the goods due to discrepancy in description (misdeclaration), origin or any 
other reason, the matter shall be referred to the director for settlement. If the director approves 
the opinion of the customs officer but the owner of the goods does not accept such opinion, the matter shall be referred to the director gene ral for settlement of dispute or for referral to 
the valuation committee. 
 
(b)  The director may release the goods in dispute , if not prohibited, afte r collecting a deposit in 
an amount equivalent to the sum of the custom s duties and taxes determined by the customs 
office. Samples of the goods shall be tempor arily maintained for reference when necessary; 
such samples shall be returned to the owne r of the goods unless they are consumed for 
inspection and analysis purposes. 
 
Chapter V 
Payment of Customs Taxes "duties" and other  
Charges and the Release of Goods 
 
Article 63 
 
(a)   Goods shall be subject to customs tax es "duties" and may not be released unless after 
completion of their customs procedures and payment of customs duties and taxes according to the provisions herein. 
 (b)   Goods shall be delivered to the owners or  their duly authorized representatives according to 
the procedures prescribed by the director general. 
 
Article 64 
 
 The customs officers assigned to collect custom s duties and taxes shall execute an official 
receipt in the form prescribed by the minister or the competent authority. 
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  Article 65 
 
 When a state of emergency is declared, precautions may be taken for removing the goods 
against special guarantees and conditions prescribed by the minister or the competent authority. 
 
Article 66 
  
 According to the rules and conditions prescribed by the director general, goods may be 
released prior to payment of the customs duti es and taxes and after completion of the customs 
procedures against bank, monetary or documentary guarantees. 
 
SECTION VII 
 
Cases where Customs Taxes "duties"  are Suspended and Drawback 
 
Chapter I 
General Provisions 
 
Article 67 
 
 Goods may be admitted and transported to any other place within the country without 
payment of the customs taxes "duties" against subm ission of a bail or bank gua rantee equivalent to the 
amount of the customs taxes "duties" payable accord ing to the instructions given by the director 
general. 
 
Article 68 
 
 Bails, bank guarantees and securities shall be released under discharge certificates according 
to the conditions prescribed by the director general. 
 
 
Chapter II 
Goods in Transit 
 
Article 69 
 
 Subject to Article 67 herein and the provisi ons of the Unified Economic Agreement of the 
GCC Arab States, goods are allowed to transit th e territories of the Council states according to the 
applicable provisions and laws and the international agreements in force. 
 
Article 70 
 
 Transit operations can be completed onl y at the authorized customs offices. 
 
Article 71 
 
 Subject to the provisions of the applicable regional and internationa l agreements, transit 
goods are transported through the specified routes by the various means of transport at the carrier’s 
responsibility according to the instructions of th e director general. The routes for the transit 
transportation and the conditions thereof are to be specified by a resolution of the minister or the 
competent authority. 
  G/VAL/N/1/SAU/1 
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  Article 72 
 
 In the event goods are transported from one cu stoms office to another, the persons concerned 
may be exempted from submitting a detail declaration at the port of entry and the referral shall be 
according to the documents and conditions prescribed by the director general. 
 
Article 73 
 
 The minister or the competent authority sha ll issue the necessary reso lutions governing the 
suspension of the customs duties and taxes appli cable to all other kinds of transit transport.  
 
Chapter III  
Warehouses 
 
Article 74 
 
 Warehouses inside or outside the customs offi ce shall be established by a resolution of the 
minister or the competent authority; the rules and conditions controlling such  warehouses shall be laid 
down by the director general.  
 
Article 75 
 
 Goods may be deposited with the warehouses in side or outside the customs office without 
payment of customs duties and taxes according to th e rules and conditions prescribed by the director 
general. 
 
Article 76 
 
 The Administration is entitled to supervise and control the warehouses, managed by other 
agencies, under the provisions of this law and the other laws in force.   
Chapter IV 
Free Zones and Duty-free Shops 
 
Article 77 
 
 Free zones are established by the legal instru ment of each State; the rules and conditions 
thereof are laid down by a resolution of th e minister or the competent authority. 
 
Article 78 
 
(a)  Subject to the provisions of Articles 79 and 80  herein, all foreign goods, of whatever kind or 
origin may be brought into the free zones a nd duty-free shops, and taken out from them to  
outside the country or to other free zones and duty-free shops, without being subject to 
customs duties or taxes. 
 (b).  Subject to the export restrictions and cust oms procedures applicable to re-exportation, the 
foreign goods re-exported from inside the count ry may be admitted into the free zones and 
duty-free shops.   
  (c)  Goods in the free zones and duty-free shops sha ll not be subject to any restriction in respect to 
the period they can remain therein. 
  G/VAL/N/1/SAU/1 
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  Article 79 
 
 The imported goods, stated in the cargo manifest , may not be transferred or admitted into the 
free zones and duty-free shops unless by approval of th e director general and under the conditions and 
controls prescribed by him. 
Article 80 
 
 The following goods may not be admitted into the free zones and duty-free shops:  
1.  Flammable  goods, excluding the fuels necessary for the  operation allowed by the 
authority supervising free zones and duty -free shops, under the conditions prescribed 
by the competent authorities. 
2.  Radioactive materials 3.   Arms, ammunition and explosives, of  any kind, except those licensed by the 
competent authorities. 
4.  Goods infringing the laws relating to commercial and industrial property rights and 
copyright protection in respect of which resolutions have been issued by the competent authorities.  
5.  All kinds of narcotic drugs and derivatives thereof. 6.  Goods originated in an economically boycotted country. 7.  Goods prohibited from entering the country ; a list of such goods shall be made by 
each State. 
 
Article 81 
 
 The customs office may carry out inspection wo rks in the free zones and duty-free shops for 
detection of prohibited goods, and it may also re view the documents and examine the goods when 
smuggling operations are being suspected.  
Article 82 
 
 The management of the free zones and duty-free shops shall submit to the Administration, if 
so requested, a list of all the goods brought into or taken out from them.  
 
Article 83 
 
 Goods placed at the free zones and duty-free shops  may not be transferred to other free zones 
and duty-free shops, stores or warehouses unless according to the securities, undertakings and 
procedures prescribed by the director general.  
 
Article 84 
 
 Goods shall be withdrawn from the free zones and duty-free shops into the country according 
to the provisions of applicable laws an d as instructed by the director general. 
 
Article 85 
 
 Goods taken out from the free zones into the cu stoms office shall be treated as foreign goods 
even if incorporating local raw materials or arti cles on which customs duties and taxes have been 
collected prior to their ad mission into the free zones. 
  G/VAL/N/1/SAU/1 
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  Article 86 
 
 National and foreign vessels shall be permitted to obtain all necessary marine equipment from 
the free zones. 
 
Article 87 
 
 The administration of the free zones and duty-fr ee shops shall be held responsible for all the 
offences committed by its officers and for the goods  illegally taken out from them. All laws and 
instructions relating to security, public health, smug gling and fraud control shall remain effective in 
these free zones and duty-free shops. 
 
Article 88 
 
 The goods imported from the free zones and duty-free shops into or out of the country shall be treated as foreign goods. 
 
Chapter V 
Temporary Admission 
 
Article 89 
 
 Subject to the provisions provided for in this  chapter and in the Unified Economic Agreement 
of the Council countries and the other international applicable agreements, goods shall be temporarily 
admitted without collection of customs duties and ta xes according to the conditions set forth in the 
Rules of Implementation. 
Article 90 
 
 The director general may grant temporary admission to the following: 
 1.      Heavy machinery and equipment for comp letion of projects or for conducting the experiments 
and tests relating to such projects. 
 
2.  Foreign goods imported for completion of processing.  3.  Items temporarily imported for playgro unds, theatres, exhibitions and like events. 
 
4.  Machinery and equipment imported into the country for repair. 
 5.  Containers and packing imported for refilling.  6.  Animals admitted in for grazing.  
7.  Commercial samples for exhibition. 
 8.  The other cases so requiring.    The items provided for herein shall be re-e xported or deposited with the free zone, customs 
offices or warehouses during the temporary admission period prescribed by the Rules of 
Implementation.  
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  Article 91 
 
 Provisions of the Unified Economic Agreement of  the GCC states and the other international 
applicable agreements governing the temporary admi ssion of vehicles shall be observed according to 
the instructions prescribed by the Rules of Implementation 
 
Article 92 
 
 The materials and articles released under tem porary admission may not be used, allocated or 
disposed of for purposes and objectives other than tho se for which they were imported and declared in 
the submitted declarations. 
 
Article 93 
 
 Any shortage develops in the goods rel eased under  temporary admission when taken out 
shall be subject to the customs duties "taxes"  applicable at the time of admission.  
  
Article 94 
 
 The Rules of Implementation shall prescribe th e conditions for practical application of the 
temporary admission and the guarantees to be produced. 
 
Chapter VI 
Re-exportation 
 
Article 95 
 
 The goods imported into the country, on which customs duties "taxes" were not collected, 
may be re-exported to outside the country or to  the free zone according to the procedures and 
guarantees prescribed by the Rules of Implementation 
 
Article 96
 
  In certain cases, permission may be given for transhipment or withdrawal of the goods, that 
were not placed into the customs warehouses, fro m the wharves to the ships under the conditions 
prescribed by the director general. 
 
Chapter VII 
Drawback 
 
Article 97 
 
 Customs duties "taxes" collected on the foreign goo ds shall be totally or  partially refunded at 
re-exportation according to the practices and conditions  set forth in the Rules of Implementation. 
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  SECTION VIII 
 
Exemptions 
 
Chapter I 
Goods Exempted from Customs Duties "taxes" 
 
Article 98 
 
 The goods agreed to be exempted from cust oms duties and taxes in the Common Customs 
tariff of the GCC states shall be exempted from customs duties and taxes. 
 
Chapter II  
Diplomatic exemptions 
 
Article 99 
 
 Imports of the diplomatic corps, consulates, international organizations and the members of 
the diplomatic and consular corps accredited by the government shall be exempted from customs taxes "duties" on reciprocity basis according to the in ternational agreements, laws and orders in force. 
 
Article 100 
 
(a)  The goods exempted under Article (99) here in may not be disposed of  or abandoned for a 
purpose other than that for which they have  been exempted, unless after notifying the 
Administration of the payment of the due customs taxes "duties". 
 
(b)  Customs taxes "duties" are not to be levi ed if the beneficiary has disposed of the goods, 
exempted under Article (99) herein, after three years from the date released by the customs 
office provided that reciprocity basis is available. 
 (c)  Exempted vehicles "cars" may not be disposed  of before the elapse of three years following 
the exemption date excluding the following cases: 
 
• Termination of the mission of the diploma tic or consular member benefiting from 
exemption in the country. 
• The occurrence of an accident to the exempted  car which makes it unfit for the use of the 
diplomatic or consular member based on a joint recommendation by both the Traffic Department and the Administration. 
• The sale by one diplomatic or consular me mber to another member provided that the 
assignee shall be entitled to the right of exemption. 
 
Article 101 
 
 The right of exemption for the individuals be nefiting from it under Article (99) herein shall 
begin from the date of commencing their jobs at their official places of work in the country. 
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  Chapter III 
Military Exemptions 
 
Article 102 
 
 Imports for all sectors of the military forces and internal security forces,  such as ammunitions, 
arms, equipment, military means of transport and parts thereof and any other materials, shall be 
exempted from customs taxes "duties" by a resoluti on of the Council of Ministers or the authorized 
authority in each State. 
 
Chapter IV 
Personal Effects and Household Items 
 
Article 103 
 
(a)  To be exempted from customs taxes "duti es" are the personal effects and used household 
items brought into the country by the nationals residing abroad or the foreigners coming for 
the first time for residence in the country, subject  to the conditions and controls prescribed by 
the director general. 
 (b)  To be exempted from customs taxes "duti es" are the personal effects and gifts in possession 
of passengers provided that such items are not of a commercial nature and shall be 
conforming to the conditions and controls set forth in the Rules of Implementation. 
 
Chapter V 
Imports of the Philanthropic Societies "Charities" 
 
Article 104 
 
 Imports of the Philanthropic Societies "Charities" shall be exempted from customs taxes 
"duties" according to the conditions and controls  set forth in the Rules of Implementation. 
 
Chapter VI 
Returned Goods 
 
Article 105 
 
 The following goods shall be exem pted from customs taxes "duties": 
 1.     Returned goods of national or igin that were previously exported. 
2.     Returned foreign goods that are proved to  have been previously re-exported to outside the 
country, if returned within one y ear from the date of re-exportation. 
3.     Goods that have been temporarily exporte d for finishing or repair shall be subject to the 
customs taxes "duties" in an amount equivalent  to the addition resulting from such finishing 
or repair according to the decision of the director general.  
  The minister or the competent authority sha ll prescribe the conditions to be satisfied for 
benefiting from the provisions of this article. 
   G/VAL/N/1/SAU/1 
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  Chapter VII 
Common Provisions 
 
Article 106 
 
(a)  The provisions of the exemptions set forth in this chapter apply to the goods covered by 
exemption, whether directly or indirectly imported or bought from the customs warehouses and free zones subject to the requirements prescribed by the Administration. 
 (b)  Should a dispute arise on whether the goods provided for in this chapter are subject to or 
exempted from customs taxes and duties, the di rector general shall settle such dispute. 
 
SECTION IX 
 
Service Charges 
 
Article 107 
 
(a)  Goods placed in the yards and warehouses of the customs office are subject to the storage, 
handling and insurance charges and the other services required for the storage and inspection 
of goods at the applicable rates. However, storage charges shall not, in any way, exceed 
50 per cent of the estimated value of th e goods. In the event such warehouses are 
administered by other entities, they may collect  such charges according to the provisions and 
rates specified in this connection. 
 (b)  Goods may be subject to the charges of stow age, sealing, analysis and all  services rendered. 
 
(c)  The services and charges mentioned in this  Article and the levying conditions shall be 
determined by a resolution issued by the minister or the competent authority. 
 
SECTION X 
 
Customs Brokers 
 
Article 108 
 
 A customs broker is any legal or natural pers on engaged in the preparation of the customs 
declarations, signing them, submitting them to the customs office and completion of the customs 
procedures relating to the clearance of the goods for the others’ account.  
 
Article 109 
 
 Citizens of the GCC Arab States (natural or legal) have the right to exercise the profession of customs clearance upon obtaining a license from the Administration.  
 
Article 110 
 
 Declaration of the goods to the customs office and the completion of their customs 
procedures, whether for importation, exportation or transit, shall be accepted from: 
 1.  The owners of the goods or their author ized representatives satisfying the requirements 
prescribed by the director general including the authorization conditions. G/VAL/N/1/SAU/1 
Page 26  
 
  2.  Licensed customs brokers. 
 
Article 111 
 
 Endorsement of the delivery order for the name  of the customs broker or the representatives 
of the owners of the goods shall be deemed as an authorization for finalization of the customs 
procedures without any liability on the part of th e customs office for delivering the goods to the 
endorsee. 
 
Article 112 
 
 The customs broker shall be held responsible fo r his acts and those of his employees vis-à-vis 
the importers, exporters and the Admi nistration under the provisions herein. 
 
Article 113 
 
 The director general may issue the directions concerning the following:  
1.   Licensing requirements for customs brokers, 2.   Licensing requirements for the representative of the customs broker, 3.   Licensing procedures for customs procedures and their representatives, 4.   Obligations of the customs broker and his representative, 5.  Requirements for opening customs clearance offices, 
6.  The number of customs brokers and their repr esentatives authorized to exercise the profession 
at the customs offices, 
7.  The customs office(s) wherein the cu stoms brokers are authorized to work, 
8.  Procedures of dispensing with the cu stoms brokers and their representatives, 
9.  Procedures of transfer (movement) of the representatives of customs brokers among the 
customs clearance offices,  
10.  Procedures of withdrawing the licenses of the customs brokers and their representatives, 
11.  Cases of deletion of the licence from the Administration’s register. 
 
Article 114 
 
 Subject to the provision of Article 140 herein and without prejudice to any civil or penal 
liability set forth herein or in any other Law, th e director general may impose on the customs broker 
and his representative any of the following penalti es commensurable with the offence committed: 
 1.      Notice (warning). 
2.     A fine not to exceed SR 5000 or its equiva lent in the currencies of the other Council Member 
 States. 
3.      Suspension of activity for a period not to exceed two years. 4.       Cancellation of the license and final prevention from exercising the profession. 
  
 An appeal against the imposition of these penalties may be made to the minister or the 
competent authority within thirty days from the date of notification. The resolution (judgment) of the minister or the competent authority shall be final.      
Article 115 
 
 The customs broker shall keep a register wh erein he records a summary of the customs 
transactions he has completed for the account of others  according to the conditions stipulated by the  G/VAL/N/1/SAU/1 
 Page 27 
 
 
  customs office. This register shall contain the amount  of duties paid to the customs office, the fees 
paid to the broker and any other expenses relating to the transactions. The director or his authorized 
representative shall have absolute power to have access, at any time, to these registers (records) 
without objection by the broker.  
  
SECTION XI 
  
Rights and duties of the customs officers  
  
Article 116 
 
(a)      The customs officers, when performing th eir duties, shall be deemed as judicial officers 
within the limits of their competencies. 
 (b)      The customs officers, when appointed, sh all be given identification cards indicating the nature 
of their jobs, to be presented upon request. 
 (c)       The customs officers shall put on the sp ecified official uniform when performing their duties 
if the nature of their job so requires. 
  
Article 117 
 
 Civil and military authorities and internal secur ity forces shall render to the customs officers 
every assistance for the performance of their duties once requested and the customs office, in turn, 
shall cooperate with the other official entities. 
  
Article 118 
 
 Customs officers, whose nature of job so requi res, are allowed to carry guns. Such officers are 
designated by a resolution of the minister or the competent authority. 
  
Article 119 
 
 Any customs officer, whose services are termin ated for any reason whatsoever, shall return 
the items in his custody to his immediate supervisor.  
  
Article 120    
 
 The incentives and allowances granted to the cust oms officers are determined by a decision of 
the minister or the competent authority based on a pr oposal form the director general according to the 
nature of their jobs. Such incentives and allo wances shall be effective once approved by the 
competent authorities. 
  
SECTION XII  
  
Customs Zone  
  
Article 121 
 
 Prohibited goods, restricted goods and goods subject to higher customs taxes "duties" as well 
as the other goods designated by a decision of the direct or general shall be subject to the provisions of 
the customs zone. The Rules of Implementation sha ll specify the conditions of transportation within 
this zone and the necessary documents and procedures. G/VAL/N/1/SAU/1 
Page 28  
 
    
SECTION XIII 
  
Customs Matters 
  
Chapter I 
Investigation of Smuggling 
 
Article 122 
 
(a)  Customs officers shall combat smuggling. To th is effect, they are authorized to inspect the 
goods and the means of transport and to search  persons under the provisions herein, and the 
other applicable Laws. 
 (b)  The body search of women shall be conducted only by a female inspector. 
 
(c)  In the event there are adeq uate evidences of the presence of  contraband, and after obtaining 
permission from the competent authority, cust oms officers shall be entitled to inspect any 
house, store or shop according to the applicable Laws. 
 (d)  Customs officers shall not be held res ponsible for the damages resulting from the proper 
performance of their jobs. 
  
Article 123 
 
 Authorized customs officers have the right to  get aboard the vessels anchoring in the local 
ports or those entering or leaving such ports and to  stay aboard until the cargo is unloaded and they 
may inspect all parts of the vessel. 
  
Article 124 
 
 Authorized customs officers have the right to  get aboard the vessels in the customs zone for 
inspection or presentation of the cargo manifest  and the other required documents under the 
provisions herein; when refraining from producing such documents or in the absence of such 
documents and when contraband or prohibited goods are suspected to be concealed, customs officers 
may take all necessary measures to seize such goods and shall lead the vessel to the nearest customs 
office.  
  
Article 125 
 
 The Administration may take appropriate ac tions for investigating (detecting) smuggling 
inside and outside the customs office according to the rules laid down by the minister or the 
competent authority. 
  
Article 126 
 
 Investigation of smuggling, seizure of goods  and proving customs offences may be conducted 
on all goods within the territories of the country in the following cases: 
 
1.   in both   the land and maritime (sea) customs zones. 2.   At the customs offices, seaports, airpor ts and all the places subject to customs control.  G/VAL/N/1/SAU/1 
 Page 29 
 
 
  3.  Beyond the land and maritime (sea) zones wh en continuously tracking controlled deliveries of 
the goods that have been witnessed within the z one in a situation that obviously indicates that 
they are intended to be smuggled.    
  
Article 127 
 
 Customs officers are entitled to have ac cess to the papers, documents, records, 
correspondence, commercial contracts and instruments  whatsoever, directly or indirectly relating to 
the customs operations, and to seize them  when o ffences are found out which shall be done at the 
premises of the shipping and transportation compan ies and the natural and le gal persons involved in 
customs operations.  
   Such companies and persons shall keep all the aforesaid documents for a period of five years 
from the date of completion of the customs operations. 
  
Article 128 
 
 Customs officers may detain any person suspect ed to have committed or attempted to commit 
an offence or involved in committing any of the following offences: 
 
(a)  Smuggling 
 
(b)  Transporting or acquisition of contraband. 
  
Chapter II 
Seizure Report 
  
Article 129 
 
 The seizure report of the offences and crimes  of customs smuggling shall be made according 
to the practices set forth in this Law. 
  
Article 130 
 
 When the offence/crime of smuggling is detected , a seizure report shall be promptly made by 
at least two customs officers and it can be made by one customs officer when necessary. 
  
Article 131 
 
 The seizure report shall contain the following details: 
 1.  The place, date and hour (in letters and figures) it is prepared. 2.  Names of the customs officers who had detect ed the offence and those who had prepared the 
seizure report, their signatures and the nature of their jobs. 
3.  Names of the offenders or those responsible  for smuggling, their nationalities, characteristics, 
occupations and detail addresses. 
4.  Seized goods, kinds and quantities thereof, their value and tariff   heading. 5.  Detailed facts, statements of the offender s or the individuals responsible for smuggling and 
statements of witnesses, if any. 
6.  An indication in the seizure report that it has been recited to the offenders or those involved in 
smuggling who had approved it by signing it or refused to do so.  
7.  All the other useful documents and the presen ce or absence of the offenders or those involved 
in smuggling when making inventory of the goods. G/VAL/N/1/SAU/1 
Page 30  
 
  8.  Referring samples of the seized contraband to the competent authorities for verification of 
prohibited materials. 
9.  Identifying the authority to which contraband has been delivered and taking an 
acknowledgement of receipt.  
10.  Identifying the security entity to which th e smuggler(s) has been delivered and the hour and 
date of delivery. 
  
Article 132 
 
(a)  The seizure report, prepared according to  Articles 130 and 131 here in, is a proof of the 
material facts that have been seen by the customs officers  w ho had prepared it, unless proved 
otherwise. 
 (b)  The formal deficiency in the seizure re port does not cause it to be null and may not be 
returned to the customs officers who had prep ared it unless such deficiency is relating to 
material facts. 
  
Article 133 
 
 The Customs office may seize the goods subject of offence or smuggling and the other items 
used for concealment as well as the means of transp ort whatsoever (i.e. boats, vehicles and animals) 
excluding vessels, aircraft and public buses intende d for the transport of passengers, unless these are 
specially designed for smuggling purposes. 
  
Article 134 
 
 Smuggled goods or those attempted to be smuggl ed such as narcotic drugs and the like shall 
be disposed of according to the Laws and regulations in force in the State.  
  
Chapter III 
Precautionary (Provisional) Measures 
  
Part I  
Precautionary (Provisional) Seizure 
  
Article 135 
 
(a)   Customs officers executing the seizure report may seize the goods -subject of smuggling or 
offence- and the means of concealment and tran sport thereof and all documents in order to 
prove the offences or smuggling and to  secure the duties, taxes and fines. 
 (b)      The director general may, when necessary,  have an order issued by the competent authorities 
to effect provisional attachment on the properties of the offenders and smugglers as a security 
of the payment of the customs duties and tax es and fines and implementation of the final 
decisions and judgments issued in this respect. 
  
Article 136 
 
 The director general may, when necessary and as a guarantee of the public treasury’s rights, 
impose a customs security on the property of the tax (duties) payers or their partners.     G/VAL/N/1/SAU/1 
 Page 31 
 
 
  Article 137 
 
 Arrest may be authorized only in the following cases: 
 1.  Smuggling offences in the act. 
2.  Resistance to customs officers or security officers that impedes seizure of smuggling cases or 
customs offences or the persons involved therein.  
3.  When the persons are likely to escape in orde r to avoid the fines, penalties or compensations 
that might be imposed. 
  
 The authorized customs officers or the security  authorities shall issue the arrest order. The 
arrested person shall be presented to the compet ent court within 24 hours from the time of arrest. 
 
Part II 
Preventing the Offenders and the Persons Accused 
of Smuggling from Leaving the Country 
  
Article 138 
 
 The director general or his authorized re presentative may ask the competent authorities to 
prevent the offenders or the persons accused of sm uggling from leaving the country if the value of the 
seized goods is not sufficient to cover the taxes, duties and fines. 
   Such prevention order shall be cancelled if the offender or the person accused of smuggling 
has submitted a bail equivalent to the claimed amounts, or if it is found out thereafter that the value of 
the seized goods is sufficient to cover the claimed amounts. 
  
Chapter IV 
Customs Offences and Penalties Thereof 
  
Article 139 
 
 The collected customs fines and seizures provided for herein are deemed as a civil 
compensation to the Administration and shall not be covered by the provisions of amnesty. 
  
Article 140 
 
 In the event of multiple offences, fines sha ll be imposed on each offence separately and the 
severest fine will be sufficient to impose if th e offences are so correlated and inseparable.  
  
Article 141 
 
 With the exception of the smuggling cases provided for in Article 142 herein and without prejudice to the international agreements in force,  a fine shall be imposed on the following offences 
according to the rules of implementation of this Law:  1.  Offences of impor tation and exportation. 
2.  Offences of customs declarations. 
3.  Offences of goods in transit. 
4.  Offences of warehouses. 5.  Offences of zones falling under customs surveillance.  6.  Offences of temporary admission. 7.  Offences of re-exportation.  G/VAL/N/1/SAU/1 
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  8.  Any other customs offences.  
  
Chapter V 
Smuggling and Penalties Thereof 
  
Part I  
Smuggling 
  
Article 142 
 
 Smuggling is to bring or attempt to bring goods into or out of the country in contravention to 
the applicable laws without payment of the custom s taxes "duties", in whole or in part, or in 
contradiction to the provisions of prohibition or rest riction provided for herein or in the other laws. 
  
Article 143 
 
 The following actions are particularly deemed as smuggling: 
 1.  Not proceeding with the goods to the first port of entry (customs office). 2.  Not following the routes specified for getting the goods into or out of the country. 3.  Unloading or loading the ships contrary to the Laws applicable at the customs office, or 
unloading or loading the ships beyond the marine customs zone. 
4.  Illegal unloading or loading of aircraft car go  outside official airports or dropping goods 
during flight, subject to the provi sions of Article (40) herein. 
5.  Not declaring to the customs office the imported or exported goods without a manifest 
including the goods accompanied by passengers , which have a commercial character. 
6.  When the goods surpass the customs offi ce at entry or exit without being declared. 
7.  Discovering goods, not declared to a cust oms office, concealed in places or cavities not 
usually designed for containing such goods. 
8.  Increase, shortage or alteration in the numbe r of the packages or the contents thereof in a 
situation suspending the duties provided for in Chapter VII herein, discovered after the goods 
have left the customs office. This provision app lies to the goods that have illegally transited 
the country or without finalization of their customs procedures in which case the carrier shall 
be held responsible. 
9.  Failure to produce the evid ences prescribed by the Administra tion to justify suspensions of 
the customs taxes "duties". 
10.  Taking the goods out of the free zones and duty-free shops, customs warehouses, stores or 
customs zones without finalization of their customs procedures. 
11.  Producing false, fraudulent or fabricated docum ents or lists or affixing false marks intended 
to evade the customs taxes "duties", in whole or in part, or to avoid the provisions of 
prohibition and restriction. 
12.  Transporting or acquisition of prohibited or restricted goods without submitting evidences 
supporting their legal importation. 
13.  Transporting or acquisition of  goods subject to customs authority within the customs zone 
without legal documents. 
14.  Non re-importation of the goods prohibited from exportation that were temporarily exported 
for any purpose whatsoever. 
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  Part II 
Penal Responsibility 
  
Article 144 
 
 The penal responsibility for the smuggling o ffence requires the presence of intention. 
Determination of this responsibility takes into acc ount the applicable penal provisions. The following 
are deemed to be penally responsible in particular: 
 1.      Principal perpetrators (offenders). 
2.      Partners in the offence. 
3.      Inciters and interferers. 4.   Possessors of contraband. 5.  Owners of the means of transport used fo r smuggling, drivers and assistants who are proven 
to be involved in the contraband. 
6.  Owners or tenants of the shops and places where contraband are kept or the beneficiaries who 
are proved to be aware of the presence of contraband in their shops or places. 
  
Part III   
Penalties 
  
Article 145 
 
 Without prejudice to any higher penalty provided for in the other laws applicable in the State, 
smuggling and like offences and the attempt to comm it any of them, shall be penalized as follows: 
 
1.      If the smuggled goods are subject to high customs taxes "duties", the penalty shall be a fine 
not less than double the payable customs taxes "du ties" and not more than double the value of 
the goods and imprisonment for not less than one month but not to exceed one year or either of them. 
2.      As for the other goods, the penalty shall be a fine not less than double the payable customs 
taxes "duties" and not more than the value of the goods and imprisonment for not less than 
one month but not to exceed one year or either of them. 
3.      If smuggled goods are exempted from customs taxes "duties", the penalty shall be a fine of 
not less than ten percent of the value of th e goods and not more than their value and 
imprisonment for not less than one month but not to exceed one year or either of them. 
4.       If smuggled goods are prohibited ones, the penalty shall be a fine not less than the value of 
the goods but not more than three times the value and imprisonment for not less than six 
months but not to exceed three years or either of them. 
5.      Confiscation of the smuggled goods or impos ing a fine equivalent to the value thereof when 
the goods are not seized. 
6.      Confiscation of the means of transporta tion and the tools and materials used in smuggling, 
excluding public means of transportation such as ships, aircraft, trains and public vehicles, 
unless there are intended or hired for smuggling purposes, or imposing a fine equivalent to 
their value when goods are not seized. 
7.      The penalty may be doubled if the offence is repeated.   
Article 146 
 
 The director general may hold the goods and the seized means of transport in case the 
smugglers have escaped or could not be caught, and sell them according to the provisions of Section 14 herein, and the proceeds of sale shall re vert to the government upon the expiry of one year 
form the date of sale with the smugglers not being caught. Should the smugglers be caught or bought G/VAL/N/1/SAU/1 
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  to court during this period and the goods have been ordered to be confiscated, the order of 
confiscation shall apply to the proceeds of sale.   
  
Chapter VI 
Prosecutions (Pursuits) 
  
Part I  
Administrative Prosecutions (Pursuits) 
  
Article 147 
 
(a)  The director general may issue the necessar y orders for collection of the payable customs 
taxes "duties" and fines, which the payer has not paid. 
 (b)   Objection to the collection orders may be ma de to the Administration within fifteen days from 
 notification date. Nevertheless, this shall not stay execution of the orders (Judgments) unless 
 the claimed amounts are paid under deposit through a bank guarantee or in cash. 
  
Article 148 
 
(a)   The fines provided for in chapter 5 of this  section shall be imposed by a resolution of the 
 director general or his authorized representative. 
 (b)   The offender or his representative shall be notified of the imposed fine by a written notice 
 through the competent authority. The offender sh all pay the fines within fifteen days from the 
 date of notification. 
  
Article 149 
 
 The penalization orders (judgments) referred to  in the preceding Article may be appealed 
before the minister or the competent authority during the same period and the minister or the 
competent authority shall have the right to c onfirm, amend or cancel the penalization order. 
  
Part II  
Prosecution of the Smuggling Offences 
  
Article 150 
 
 The action of smuggling offences may be rec onsidered only upon wr itten request from the 
director general. 
  
Part III   
Conciliatory Settlement (Compromise) 
   
Article 151 
 
(a)   The director general or his authorized representative may- upon a written request by the 
 person concerned- make a compromise (concilia tion), in the smuggling issues, whether prior 
 to the bringing of the action or when the acti on is being tried and prior to the issuance of the 
 first instant judgment which will be in lieu of  all the customs penalties and fines provided for 
 in article 145 herein. 
  G/VAL/N/1/SAU/1 
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  (b)  The Manual of Reconciliatory Settlements is is sued by a resolution of the minister or the 
competent authority. 
 
Article 152 
 
 Subject to the provisions of Article 150, the c onciliatory settlement (Compr omise)  shall be as 
follows:  1.      If contraband are goods that are subject to high customs taxes "duties",  the penalty shall be a  
fine not less than  twice the amount of the customs taxes "duties"  and not exceeding double 
the value of the goods.  
2.       As regards the other commodities, the pena lty shall be a  fine not less than the amount of the 
payable customs taxes "duties" and not exceed ing 50% of  the value of the goods.  
3.      If the smuggled goods are not subject to customs taxes "duties" (exempted), the penalty shall 
be a fine not less than 10% of the value of th e goods and not more than 50% of their value. 
4.     If smuggled goods are prohibited ones, the penalty shall be a fine not less than the value of 
the goods and not more than three times their value. 
5.    Confiscation, release or re-exportation (wholly or partially) of the smuggled goods in 
 question. 6.      Confiscation of the means of transport together with the tools and materials used for 
smuggling excluding the public means of trans port such as vessels, aircraft and cars unless 
these are designed or rented for this purpose. 
  
Article 153 
 
 The action (claim) shall be relinquish ed when a reconcilement is reached. 
  
Chapter VII 
Liability and Joint Liability 
  
Article 154 
 
(a)  The offence and the consequent civil lia bility in the smuggling offences arise when the 
material evidences thereof are available. Good faith or ignorance shall not be taken into 
account. However, the offender shall be exonerated  from liability if he is proved to be a 
victim of a force majeure as well as he who proves that he has not committed any act of offence or smuggling or caused it to occur or be committed.  
 
(b)  Civil liability shall include, in addition to the offenders and smugglers, the partners, 
financiers, sponsors, beneficiaries, agents , clients, donators, carriers, possessors and 
consigners of the goods. 
  
Article 155 
 
 Investors of private shops and premises wher ein infringing or smuggled goods are kept shall 
be held responsible. Whereas investors  and employ ees of public shops and premises as well as the  
owners, drivers and assistants of public means of tr ansport shall be  held responsible unless they prove 
their ignorance of the presence of such infringing or smuggled goods and that they have no direct or 
indirect interest in them. 
  G/VAL/N/1/SAU/1 
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  Article 156 
 
 Guarantors (sponsors) shall be responsible, w ithin the limits of their guarantees, for the 
payment of customs taxes "duties", fines and the other amounts payable to the Administration by the principal payers. 
  
Article 157 
 
 Customs brokers shall be fully responsible for the offences and smuggling offences they or 
their authorized employees commit in the customs d eclarations. But they will not be responsible for 
the undertakings submitted in the customs declarations  unless such undertakings are made by them or 
they have guaranteed the undertakers. 
  
Article 158 
 
 Owners of the goods, employers and carriers of goods  shall be responsible for the acts of their 
employees and all the persons working for their account in respect to the duties and taxes collected by 
the customs office and the fines and confiscations provided for herein as a result of such acts. 
  
Article 159 
 
 Heirs shall not be responsible for the payment-  from their own shares of the heritage- of the 
fines payable by the dead offenders, unless they are partners in smuggling. The action (suit) shall be 
relinquished upon the death of the offender. 
  
Article 160 
 
 Payable customs duties, taxes and fines shall be  jointly paid by the offenders or the persons 
liable for smuggling according to the applicable prac tices for collecting the funds due to the State 
Treasury. The seized goods and means of transport, if any, shall be a security for the payment of the 
payable amounts. 
  
Chapter VIII 
Rules of Court Proceedings 
  
Article 161 
 
 First instance customs courts may be establis hed at both the Administration and the customs 
offices according to the legal instru ment applicable in each state. 
  
Article 162 
 
 The first instance customs court sh all have the following jurisdictions: 
 
1.   Hearing all smuggling offences and the like. 2.  Hearing all offences committed against th e provisions of this Law and the Rules of 
Implementation thereof. 
3.   Hearing the objections to the collection orders under the provisions  of Article 147 herein. 
4.  Considering the objections submitted agains t the penalization judgments under the provisions 
of Article 148 herein. 
5.  The court may request any person accused unde r this Law to bring a sponsor to guarantee his 
appearance before the court or it may decide to detain him until settlement of the issue.  
   G/VAL/N/1/SAU/1 
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  Article 163 
 
(a)  Judgments of the first instance  cu stoms court may be appealed before an ad hoc appeal  court 
formed under the legal instrument applicable in each State. 
 
(b)   this court shall try the actions brought to it and shall take its decisions by majority. 
 (c)  The period of appeal shall be thirty days from the date of notification of the first instance 
judgment by default and from the date of pro nouncement of the judgment in presence of the 
litigant. 
  
Article 164 
 
 The judgments passed by the court of appeal shall be final. 
  
Article 165 
 
 Collection and penalization orde rs and the judgments passed in the customs matters shall be 
carried out by all means of execution, after havi ng the final status, on the movable and unmovable 
property of the offenders. The minister or the compet ent authority may have an order issued to attach 
a sufficient amount of such property to cover payment of the claimed amounts. 
  
SECTION XIV 
  
Sale of Goods 
  
Article 166 
 
(a) The Administration has the right to sell th e perishable seized goods and those subject to 
shortage or leakage or if the goods are in a condition that might endanger the safety of the other goods and the facilities therein. 
 
(b)  Seized goods which are subject to a consider able depreciation may be sold by authorization 
from the director general or his representativ e. The sale of the goods shall be based on a 
report showing the condition of the goods and the justifications of sale without having to get 
an order from the competent court, provided that  the owner of the goods shall be notified of 
such sale.  
 
 If a judgment (order) to return the goods to its owner is issued thereafter, then price of the 
sold goods shall be paid to the owner afte r deducting any payable duties or taxes.  
  
Article 167 
 
 Upon expiry of the period specified by the minister or the competent authority, the 
Administration may sell the goods placed in the cust oms warehouses, those existing in the yards or 
wharves or left out goods at the customs offices.  
  
Article 168 
 
 The Administration shall sell the following: 
 1.  The goods and means of transport that have become property of the customs under a 
confiscation judgment, a compromise or a written waiver. G/VAL/N/1/SAU/1 
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  2.  The goods not withdrawn from the customs warehouses within the legal period specified 
according to Article 75 herein. 
3.  The goods and items whose owners are unknown and which have not been claimed within the 
storage period specified by the director general or the competent authority.  
  
Article 169 
 
 The Administration assumes no responsibility for any damage caused to the goods being sold 
under the provisions herein, unless it is proved th at the Administration had committed an obvious 
default in the procedures of the sale process.  
  
Article 170 
 
(a)  The sales provided for in this Section shall be  effected in an auction according to the rules and 
conditions prescribed by the minister or the competent authority. 
 
(b)  The goods, items and the modes of transport sh all be sold without the customs taxes "duties" 
and other taxes, excluding the commission that shall be borne by the buyer during the sale procedures. 
  
Article 171 
 
(a)  The proceeds of sale shall be distributed as follows: 
 
1.   Customs taxes "duties". 2.   The costs of the sale process. 
3.   The expenses incurred by  the Administration whatsoever. 
4.   Transportation charges, when necessary. 5.   Any other charges.  
(b)  The balance remaining from the proceeds of selling the goods, the importation of which is 
permitted on the day of sale,  after deducting th e sums provided for in paragraph (a) herein, 
shall be deposited with the Administration as a deposit. The persons concerned may claim 
refund within one year from the sale date, otherw ise such balance will be transferred to the 
treasury. 
 (c)  As for the goods that are prohibited or not allowed to be imported on the day of  sale, the 
remaining  balance shall be property of the Treasury. 
 (d)   As for the goods that are prohibited, restrict ed or not allowed to be imported and those sold 
under a compromise, penal order or a court j udgment (relating to smuggling), the remaining 
balance shall be distributed according to the pr ovisions of article 172 herein after deducting  
the taxes ,duties and costs.  
  
Article 172 
 
 The share of the treasury from the proceeds (am ounts) of the customs fines and the value of 
the seized or abandoned goods and means of trans port are determined at 50% after deducting the 
customs duties taxes "duties" and costs. The remain ing portion of the balance shall be deposited with 
the customs rewards fund or with any other account in favour of the customs, to be paid to the 
individuals who had discove red and seized the offences and their assistants. The rules for distributing 
such rewards shall be laid down by the minister or the competent authority upon a proposal from the 
director general.  G/VAL/N/1/SAU/1 
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  SECTION XV 
  
Privilege of the Customs Administration 
  
Article 173 
 
 For the purpose of collecting the customs taxes "duties" and the other fees and taxes to be 
collected as well as the fines, compensations, confi scations and refunds, the Administration shall have 
a general privilege over the movable and unmovable pr operty of the tax payers and offenders, even in 
the case of bankruptcy, and shall also have precedence  over all debts except for the judicial expenses. 
  
SECTION XVI 
  
Prescription 
  
Article 174 
 
 Any claim or action for refunding the customs ta xes "duties" paid since over three years shall 
not be accepted.   
Article 175 
 
 The Administration may destroy the records, receipts, declarations and the other customs 
documents upon the expiry of five years followi ng finalization of the customs procedures. The 
Administration shall not be bound to present such docum ents or give copy ther eof to any entity upon 
the elapse of that period. 
  
Article 176 
 
 Without prejudice to the other laws and regulations in force in the State, prescription period 
for the Customs Administration, if not prosecuted, shall be as follows: 
  
15 years for the following two cases : 
 
(a)  Acts of smuggling and the like effec tive from the date of committing the offence. 
 (b)  Execution of the smuggling judgments and th e like effective from the date of passing the 
judgment. 
  
5 years for the following cases, if not claimed : 
 (a)  Investigation of the offences from the date occurred.  
(b)  Collection of the fines and the confiscati ons imposed on the offences with effect from the 
issuance of the penalization order. 
 (c)  Collection of the customs taxes "duties" and the other charges that have not been collected  
due to a mistake by the customs office effectiv e from the date of  lodgement of the customs 
declaration. 
  G/VAL/N/1/SAU/1 
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  SECTION XVII 
  
Final Provisions 
  
Article 177 
 
(a)  The director general may exclude the ministries, government departments and the official 
public organizations from certain procedures to facilitate their duties. 
 (b)  The director general my sell the confiscat ed or abandoned  goods and materials  to the 
interested ministries, government departments and official public organizations, if they 
express their need for them,  at the prices he deems appropriate, or may abandon them free of 
charge  by  a resolution by the minister or the competent authority .  
  
Article 178 
 
 The Financial and Economic Cooperation Co mmittee of the GCC States shall approve the 
Rules of implementation of this law which will be issued according to the le gal instrument of each 
Sate.    
Article 179 
 
 The Common Customs Law of the GCC States shall, when implemented, supersede the 
customs Laws and regulations in force in the Member States within the limits of the constitutional rules and Laws and the basic laws in force in each State without contradiction therewith. 
   G/VAL/N/1/SAU/1 
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  Rules of Implementation of the  Common Customs Law of the Member Sates of the 
Cooperation Council for the Arab States of the Gulf 
 
I.  VALUE OF GOODS FOR CUSTOMS PURPOSES 
 
 Based on the provisions of Article (26) of the Common Customs Law of the GCC States, the 
value of goods for customs purposes shall be acco rding to the following rules and principles: 
 
Article (1) 
 
I. GENERAL PROVISIONS 
1.  The importer may clear his goods after payment of the customs taxes "duties" under cash 
deposit, if the final determinati on of the value is prolonged. 
 2.  The importer may obtain, upon a written request , a written clarification of the method used in 
determining the customs value of his goods. 
 3.  The importer or any person liable for paymen t of the customs taxes "duties" may appeal 
against the determined customs value, without penalty.  4.  The confidential information or the informa tion provided on confiden tial basis for valuation 
purposes shall be treated as top confidential and ma y not be disclosed unless within the limit required 
for court procedures.  5.  Freight, insurance and other relevant charges shall be added up to the customs value of the 
imported goods until arrival to the port of destination in the GCC States. 
 
6.  The time of payment of the customs taxes "duties" shall be the time approved for currency 
exchange rate.  7.  In determining the transaction value, no di scounts or deductions of the payable or actually 
paid price shall be considered if such discounts/ deductions are made between the buyer and seller 
after the date of importation of the goods. Also , no credit balances pertaining to previous 
consignments shall be considered when determin ing the customs value of the goods being valued. 
 8.  The Valuation Agreement shall be the refere nce for the interpretation and application of the 
present article. 
 
II.  BASES OF CUSTOMS VALUATION 
 Imported goods are valued according to the following bases: 
 1.  The first basis for determining the value for customs purposes is the   transaction value of the 
imported goods. 
 
2.  If the customs value can not be determined according to the first basis above, it shall be 
determined by the sequential application of the following alternative methods: 
 
(a)  Transaction value of identical goods 
(b)  Transaction value of similar goods 
(c)  Deductive value 
 (d)  Computed value G/VAL/N/1/SAU/1 
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  3.  If the customs value cannot be determined unde r the above methods, it shall be determined by 
application of reasonable methods that conform to the general principles and provisions of the 
Valuation Agreement, but with more flexibility.  4.  The importer may request that "Deductive valu e" and "Computed value" be applied in reverse 
sequence. 
  
 
First Method:   Transaction Value of the Goods Being Valued.  
 Transaction value is the price actually paid or  to be paid against the sale of the goods for 
export to GCC States, mutatis mutandis.   
I  Conditions of the transaction value
 
  The transaction must satisfy the following conditions : 
 1.  That there are no restrictions applicable to  the disposition or use of the imported goods by the 
buyer, other than the restrictions imposed by la w in  the GCC States, or those which specify the 
geographical area within which the goods may be reso ld, or those which do not substantially affect the 
value of the goods; 
 
2.  The sales price is not subject to any c ondition or compensation whose value can not be 
determined;  3.  That the seller is not entitled to any part of the proceeds of the resale, disposition or use of the 
goods by the importer as a subsequent stage, directly or indirectly, unless a proper adjustment, based 
on objective and quantitative data , can be made; and 
 4.  that  no relationship, if any, shall exis t between the seller and bu yer which  affects the 
transaction value  according to the provisions of pa ragraph (23) of Article (2) of this Law.  
  
II  Adjustments to the transaction value
 
 
 When necessary, the following shall be added to the price actually paid or to be paid: 
 
1.  The costs borne by the buyer to  the extent they are not included in the price actually paid or to 
be paid;  
(a)  amounts of commission and brokerage, excluding the purchasing commission, (b)  cost of the containers that are treated for customs purposes as one unit along with the 
goods under assessment, and 
(c)  packing cost, whether for labour or material  
2.  An appropriate percentage of the costs of the following goods and services provided by the 
buyer, directly or indirectly, free or at a reduced  cost, against its use in production of the imported 
goods, if it was not included in the price paid or to be paid, as per the following: 
 
(a)   materials, parts, components and simi lar items used in production of the imported 
 goods, (b) tools, dies, moulds and similar items used in production of the imported goods, (c) materials consumed in pro duction of the imported goods, and  G/VAL/N/1/SAU/1 
 Page 43 
 
 
  (d)  engineering works, designs, studies, gra phs, drawings and similar items necessary for 
 production of the imported goods and done in  a country other than the GCC States. 
 
3.  License and royalty fees relating to the impor ted goods under assessment that must be paid by 
the importer (buyer), directly or indirectly, as a condition of sale of the goods being valued if not 
included in the price actually paid or payable, and 
 4.  Value of any part of the proceeds from any s ubsequent sale, disposition or use of the imported 
goods, payable to the seller directly or indirectly. 
  
III  The amounts related to the items mentioned in paragraphs 1 and 2 above shall be 
included based on objective and quantifiable data  
  
Second Method:   Transaction Value of Identical Goods 
  
 Transaction value of the identical goods sold fo r export to the GCC States and exported at or 
about the same time as the export of the goods being valued.  At the time of its application, the 
transaction value of identical goods in a sale at the sa me commercial level and quantity shall be used.   
  In case such a transaction is not found, the transaction value of identical goods sold at a 
different commercial level or differe nt quantity, adjusted for the diffe rence, shall be used.  In case 
such a transaction is not found, the transaction valu e of identical goods sold at a different commercial 
level or different quantity adjusted for the difference shall be used.   If more than one transaction value for identical goods is found, the lowest of such values shall 
be used for determining the customs value for the imported goods. 
  
Third Method:   Transaction Value of Similar Goods 
  
 Transaction value of the similar goods sold for export to the GCC States and exported at or 
about the same time as the export of the goods being valued.  At the time of its application, the 
transaction value of similar goods in a sale at the sa me commercial level and quantity shall be used.  
In case such a transaction is not found, the transac tion value of similar goods sold at a different 
commercial level or different quantity, adju sted for the difference, shall be used 
   When there is more than one transaction value of similar goods, the lowest value will be used 
as the customs value of the imported goods. 
  
Fourth Method:  Deductive Value 
 
 The customs value will be determined accordi ng to the unit price at which  the goods being 
valued were sold, or identical goods, or simila r goods (in the same condition as  imported), in the 
earliest sale in the Kingdom, in the local market, at  the greatest aggregate (wholesale) quantity at or 
about the time the goods being valued are imported but before the elapse of 90 days from importation 
of the goods being valued, to n on-related persons, provided that the following costs and expenses, 
incurred after arrival of the goods at the port of d estination  in the GCC States,  shall be deducted: 
 1.  Commissions usually paid or payable or a dditions usually added to allow for profit and 
general expenses in connection with the imported goods of the same class or kind sold in the 
Kingdom;  2.  Local transportation and insura nce costs and other related costs; 
 G/VAL/N/1/SAU/1 
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  3.  Customs taxes (duties). 
  If the imported goods, identical goods or similar goods ,  are not sold in the local market in the 
same condition as imported, the customs value shall be  based, if requested by the importer, on the unit 
price at which the imported goods are sold, after pr ocessing and finishing,  at the greatest aggregate 
quantity to non-related persons in the GCC States,  along with making the appropriate deductions for 
the added value for such  processing in addition to the deductions provided for in paragraphs (1), (2) 
and (3) of this method.    
Fifth Method:   Computed Value 
 
 Computed value is the sum of the various costs incurred in the country of origin of the goods 
which includes the following:  1.  Cost or value of materials and fabrica tion or other processing employed in producing the 
imported goods; 
 2.  An amount for profit and general expenses equal to that usually reflected in the sales of goods 
of the same class or kind as the goods being valued which are made by producers in the country of 
exportation for export to the GCC States;  
3.  The costs listed in II b. of the first method, if not included in (1) or (2) above, and the cost of 
packing. 
  
Flexible Valuation Methods  
 If the customs value of the imported goods  cannot be determined under the foregoing 
methods, the customs value shall be determined by reasonable methods that are in line with the 
general principles and provisions of the Valuati on Agreement by referring once again to those five 
methods, but with more reasonabl e flexibility of application. 
  Imported goods may not
 be valued on the basis of : 
 
1.  The selling price in the GCC States of goods produced in the GCC States;  2.  The selling price of the goods in the local market of the country of exportation;  
3.  Minimum, arbitrary or fictitious values; 
 4.  Production costs different from the computed value defined in the fifth method  5.  The price of goods for export to a country other than the GCC States; or 
 
6.  A system which provides for the acceptan ce, for customs purposes, of the higher of two 
alternative values.   
II.  Temporary Admission
 
 
 Based on the provisions of Articles (89–94) of the Common Customs Law of the GCC States, 
temporary admission shall be subject to the following conditions and procedures: 
   G/VAL/N/1/SAU/1 
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  Article (2) 
 
(a)  The goods mentioned in Article s (89) and (90) herein shall be allowed to be placed under 
temporary admission for six renewable months with the suspension of the levied customs taxes "duties" as stated in the Rules of implementation. 
 
(b)  The customs taxes "duties" and other taxes " duties" , if any, shall be secured by a bank or 
cash guarantee as circumstances may require and at the discretion of the director general. 
 (c)   Temporary admission procedure shall be te rminated by re-exporting  the admitted goods to 
outside of the state or depositing them into the free zones or customs warehouses or stores or 
placing them for home consumption and payment of payable customs taxes "duties" according to the procedures prescribed by the director general. 
  
Temporary Admission of Heavy Machinery and Equipment 
  
Article (3) 
 
(a) Temporary admission of the heavy machinery and equipment, which are not available in the 
markets and are required for the completion of projects or the conducting of practical and scientific tests relating to those projects, shall be granted for a period of six months renewable 
for similar periods which shall not exceed three years at the most unless the completion of a 
project requires a longer period. 
 (b)  For the project to benefit from temporary ad mission under these rules, it shall be one of the 
projects completed for favour of the government or an investment project whose completion 
requires the admission of such machin ery and equipment for this purpose. 
  
Article (4) 
 
(a)  Temporary admission shall not be granted to the spare parts, tyres, batteries and other 
materials that can be consumed in the projects. 
 
(b)  The type and description of the admitted piece of machinery or equipment may not be 
changed unless after obtaining approval from the Customs Administration. 
 (c)  The use of the machinery and equipment sh all be limited to the completion of project for 
which they have been admitted. 
  
Article (5) 
 
 The entity applying for the temporary admission of the machinery and equipment required for 
the completion of its projects shall: 
 
1.      submit a copy of the contract or agreement  made with the governmental body for the account of which the project is being completed; and  2.      make a customs declaration according th e form approved for temporary admission and state 
all information and attach the documents required unde r this Law. The declaration shall be subject to 
all customs procedures; and  G/VAL/N/1/SAU/1 
Page 46  
 
  3.      submit a bank guarantee or cash deposit equivalent to the amount of the customs taxes 
"duties" payable on the registration date of   customs declaration for placing them under the temporary admission  procedure.   
Temporary Admission of Goods for Finishing and Re-exportation 
  
Article (6) 
 
 Foreign goods shall be temporarily admitted into  the State with the suspension of the customs 
taxes "duties" levied on them for the purpose of fi nishing and re-exportation within a time period not 
to exceed a year. 
  
Article (7) 
 
 The director general shall give instructions  specifying the conditions to be satisfied for 
granting temporary admission to the other types of  goods mentioned in Article  (90) of this Law, 
provided that the period of temporary admission shall not exceed six months.   
Temporary Admission of Foreign Vehicles 
  
Article (8) 
 
 Foreign tourist vehicles (other than those regist ered in a GCC member state) shall be granted 
a temporary admission as follows:  1.      Six months for the vehicles covered by an International Passage Carnet (IPC); and 
 
2.      Three months for the vehicles not covere d by an Inter-national Passage carnet to be renewed 
for a similar period if the person concerned submit s bank guarantees or cash de posit equivalent to the 
amount of the payable customs taxes "duties". 
  
Article (9) 
 A. F
OR A VEHICLE TO BENEFIT FROM THE PROVISIONS OF TEMPORARY ADMISSION , THE 
FOLLOWING CONDITIONS SHALL BE SATISFIED  
1.      The vehicle shall be officially registered in the country licensed in under a document proving 
the same; and 
 
2.     The vehicle’s licence shall be va lid and shall not have export plates; and 
 3.     Production of an insurance from an insu rance company approved in the State covering its 
territories during the period of temporary admission; and  
4.      The production of an accredited IPC to secure the customs taxes "duties".   
 B. I
N ORDER TO BENEFIT FROM THE PROVISIONS OF THESE RULES , THE FOLLOWING SHALL BE 
SATISFIED BY THE PERSON WISHING TO OBTAIN TEMPORARY ADMISSION FOR HIS VEHICLE  
1.      He shall be the owner of the vehicle or  authorized to drive it under a special authorization 
issued from the country of registration and duly certified; and 
  G/VAL/N/1/SAU/1 
 Page 47 
 
 
  2.      He shall have a valid residence in the country where the vehicle is registered unless he is a 
national of that country; and  3.      He shall have a valid driving licence.  
Article (10) 
 
(a)     To benefit from the provisions of th ese Rules, the IPC shall be accepted by the customs 
administration and its validity shall cover the period of temporary admission of the vehicle. 
 
(b)      The following procedures shall be fo llowed when a vehicle is admitted under the IPC: 
 
1.  The number, date and period of the tem porary admission permit shall be recorded on 
the IPC. 
2.      The relevant coupon shall be cut out from the carnet at entry and exit. 
 
Article (11) 
 
 Students and those on scholarships (other than the GCC nationals) studying at one of the universities and institutes in the State shall be allo wed to renew the period of temporary admission for 
their vehicles during the period of study  or scholarship, provided that the vehicle shall be guaranteed 
by a valid IPC. 
  
Article (12) 
 
 The customs office shall grant temporary admi ssion to vehicles according to the provisions 
herein. 
  
Article (13) 
 
(a)      The temporary admission permit shall cont ain all the information relating to the vehicle and 
the person concerned (i.e. plates No., chassis No., engine No., make and colour of vehicle a 
well as the name of the person concerne d, his nationality and passport number). 
 (b)      The procedure of the temporary admi ssion of foreign vehicles shall terminate when the 
vehicle leaves the country via one of the custom s offices or when it is placed  in the free zone 
or when it is cleared for home use with the paym ent of the due customs taxes "duties" subject 
to the approval of Customs.  
  
 III.  Re-exportation of the Goods 
 
 Pursuant to the provisions of Article (91) of the GCC Common Customs Law, procedures, 
conditions and guarantees when re-exporting the fo reign goods entering the country shall be as 
follows: 
 
Article (14) 
 
 Foreign goods, imported into the country withou t payment of the customs taxes "duties", may 
be re-exported. Such goods include the following: 
 1.      Imported goods that were not withdrawn from the customs stores. G/VAL/N/1/SAU/1 
Page 48  
 
  2.      Imported goods, intende d to be re-exported, which have been temporarily released against 
cash or bank guarantees covering the customs taxes "duties" to be submitted within a period 
not to exceed six month from the date released.  
3.      Goods imported into the country under the temporary admission procedure whose owners 
wish to re-export them. 
4.      Goods deposited at warehouses which is one  of the situations for suspension of the customs 
taxes "duties". 
  
Article (15) 
 
(a)      Re-exportation of the goods shall be under re-export declarations containing all the distinctive 
elements of the goods; such declarations are made  at the discretion of the director general. 
 (b)      The goods may be re-exported by a person ot her than the importer, subject to the approval of 
the customs office. 
 
(c)      The number of the customs declaratio n under which the goods have been imported shall be 
affixed on the re-export declaration. 
 (d)      The goods shall be subject to the cu stoms inspection and procedures prescribed by the 
Common Customs Law "Law".  
  
Article (16) 
 
 Pursuant to the provisions of Article (97) of the Common Customs Law of the GCC States, 
the customs taxes "duties" levied on the foreign goo ds re-exported to outside of the GCC States shall 
be refunded (drawn back) according to the following controls: 
 1.     The exporter "re-exporter" shall be th e person in whose name the foreign goods were 
imported or any other person who can definitely pr ove to the customs administration that he has 
purchased the goods.  
2.      The value of the re-exported foreign goods  for which the customs ta xes "duties" are to be 
refunded shall not be less than five thousand US dol lars (or its equivalent in the local currency). 
 3. A)  The foreign goods "commodity" shall be re-exported within one Gregorian year from 
the date of payment of the customs taxes "duties".   
 B)  The claim for drawback shall be made within six Gregorian months from the date of 
re-exportation. 
 4.      The foreign goods to be re-exported sha ll be of a single consignment for ease of identification 
and matching with the importation documents; howev er, a single consignment may be re-exported in 
part shipments once it is definitely proven for the customs administration that such shipments 
constitute a part of the same consignment. 
 5.      The claim for drawback shall be for fore ign goods that were not lo cally used after importation 
from outside of the GCC States and at the same condition when imported.  
6.      Drawback shall be limited to the cust oms taxes "duties" that were actually paid on the 
imported foreign goods.  7.      The customs taxes "duties" shall be refunded after re-exportation of the foreign goods and 
verification of all the documen ts required for re-exportation.  G/VAL/N/1/SAU/1 
 Page 49 
 
 
  8.      The approved unified "single" customs d eclaration shall be used for re-exportation of the 
goods, whose customs taxes “duties” are to be re funded,   to outside of the GCC states. 
 9.      These controls shall be implemented imme diately upon the application of the single point of 
entry and the common collection and allotment of th e customs taxes "duties" levied on the foreign 
goods. 
 10.  These controls shall be reviewed after three years of application or whenever necessary at the 
request of any member State, and the Financial and Economic Cooperation Co mmittee has the right to 
interpret and amend these controls. 
 
11.  These controls shall have priority of appli cation upon contradiction with  the laws, regulations 
and procedures in force in any member State.    
Article (17) 
 (a)      Means of land transport carrying re-expor ted goods shall be subject to the provisions relating 
to the customs sealing and security of cove ring (canvas), ropes and the other provisions 
applicable to transit. 
 (b)      Goods shall be re-exported within the prescribed period. 
 
(c)     Customs taxes "duties" levied on the go ods to be re-exported sha ll be secured by cash or bank 
guarantees. 
  
Article (18) 
  Re-export declarations shall be discharged a nd settled and their guarantees shall be released 
upon submission of one of the following evidences:  1.      a copy of the re-export declaration sealed and signed by the competent customs officer at the 
customs office of exit proving that the goods have left the country. 
 
2.      a copy of the re-export declaration se aled and signed by the co mpetent customs officer 
indicating that the goods have entered the free zone.  3.      a discharge certificate approved by the competent authorities at the country of destination 
certifying that the re-exported goods have been imported into it. 
   IV.  Exemption of Personal Effects and Gifts Accompanying the Passengers
 
   Pursuant to the provisions of Article 103(b) of the GCC Common Customs Law, the conditions and controls for exem pting the personal effects and gifts accompanying the passengers 
shall be as follows: 
  
Article (19) 
 
 Personal effects and gifts accompanying th e passengers whose value does not exceed 3000 
Saudi riyals or its equivalent value in one of the other GCC currencies shall be exempted from the 
customs taxes "duties".   G/VAL/N/1/SAU/1 
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  Article (20) 
 
 The following requirements shall be sat isfied to qualify to this exemption: 
 1.      Effects and gifts shall be of a personal nature and in non-commercial quantities. 
2.      The passenger shall not be a frequent traveller through the customs office or a trafficker of the 
items in his possession. 3.     The number of cigarettes subject to exem ption shall not exceed 400 (four hundred) cigarettes. 
  
Article (21) 
  Personal effects and gifts benefiting from the exemption referred to in Articles 18 and 19 of 
these Rules shall be subject to the provisions of prohibition and restriction set forth in the GCC 
Common Customs Law and the national legislation of each Member State.    V.  Exempting the Imports of the Philanthropic Societies (Charities) from the Customs 
Taxes "duties"  
  
 According to the provisions of Article (140)  of the Common Customs Law of the Cooperation 
Council for the Arab States of the Gulf, the conditions and controls for exempting the imports of the charities from the customs taxes "duties" shall be as follows: 
  
Article (22) 
 
(a)      The charity benefiting from exemption shall be registered with the competent authority in the 
State and the purpose for establishing it shall be  to provide services in the humane, social, 
educational, scientific or religious fields or any other charitable purpose not being a profitable 
one. 
 (b)      Societies with political purposes shall not benefit from exemption from the customs taxes 
"duties". 
  
Article (23) 
 
 To benefit from exemption from the customs ta xes "duties", imports of the charities shall: 
 1.      be of a nature suitable for the purpo ses and activity it performs according to its Articles of 
Incorporation; and 
2.      the volume and quantity of the  imports to be exempted shall be proportional to the actual 
needs that enable it to perform its charitable activity; and 3.      Such imports shall be direc tly imported in the name of the charity. 
  
Article (24) 
 (a)     the charity may not dispose of the exem pted imports for purposes other than those for which 
they have been exempted and the management of the charity shall be held responsible for that 
vis-à-vis customs. 
 
(b)      Should the charity wish to sell the consumed or used materials and supplies that were 
exempted from customs taxes "duties", it shall apply in writing to the customs administration 
to obtain approval of the sale after conducting the necessary inspection thereof.   
   G/VAL/N/1/SAU/1 
 Page 51 
 
 
  Article (25) 
 
 The competent government authority shall a ddress the customs administration for exempting 
the imports of charities from the custom s taxes "duties" on a case by case basis. 
  VI.  Goods Subject to the Provisions of the Customs Zone and the Conditions of Transport 
Therein  
  
 Pursuant to the provisions of the GCC Common Customs Law, goods subject to the 
provisions of customs zone shall be treated as follows: 
  
Article (26) 
 
 Goods subject to the provisions of the custom s zone shall be accompanied with a transport 
authorization issued by the custom s office indicating the following: 
 
1.      Name of the person concerned. 2.      The distinguishing elements of the goods  such as type, number, weight, origin and value. 
3.      Name, type and number of the m eans of transport and the name of its driver. 
  
Article (27) 
 A)     Possession of goods within the customs zone  shall be prohibited except at the places specified 
by the customs office. 
B)     Normal requirements of goods which can be possessed within the customs zone for 
consumption purposes shall be specified by a decision of the customs administration. 
  
Article (28) 
 
 The illegal transportation of the goods that are subject to the provisions of customs zone or 
possession or circulation thereof within the cu stoms zone shall be deemed as smuggling. 
  
VII.  Fines Imposed on the Customs Offences
 
  
 Without prejudice to the provisions of Articles 142, 143, 144 and pursuant to the provision of 
Article 141 of the Common Customs Law, the rul es for imposing fines on the customs offences shall 
be as follows: 
  
Article (29) 
 
 A fine not exceeding twice the amount of the cu stoms taxes "duties" and not less than their 
equivalent amount on the following offences:  
1.      The customs declaration (exportation, re -exportation) that could lead to benefiting from 
drawback or finalization of the temporary ad mission procedure for temporarily admitted goods 
without a legal ground. 2.      The unjustified increase/decrease of the goods compared to that stated in the manifest. 
3.      The use of the materials subject to ex emption or to reduced customs tariff for purposes other 
than those for which they have been imported or  replacing, selling or disposing them without the 
approval of the customs administration and the paym ent of the customs taxes "duties" imposed under 
Articles 99, 100 and 104 of the Common  Customs Law and the provisions of these Rules.  G/VAL/N/1/SAU/1 
Page 52  
 
  4.      Disposition of the goods on which the customs taxes "duties" have been suspended for 
purposes other than those for which they have been  imported or replacing them without the approval 
of the customs administration and the payment of the customs taxes "duties". 5.      Redemption of or the attempt to redeem the customs taxes "duties".    Article (30)  
 A fine not less than five hundred  Saudi riyals (SR 500) and not exceeding five thousand 
riyals (SR 5000) or its equivalent  in the other currencies of the GCC States on the following offences: 
 
1.      Improper customs declarations that may lead to evading any condition or restriction relating 
to import or export. 2.      Improper customs declaration in respect  to value, type, number, weight, measurement or 
origin that may lead to the loss of the customs ta xes "duties" through mis-declaration according to the 
provisions of Article (47) of this law. 
3.      Alteration of the routes specified in the transit declaration without the consent of the 
Administration according to the provisions of Article (710) of this law. 4.     The lack of the manifest of the goods or the availability of more than one manifest for the 
goods according to the provisions of Articles 30(a), 36(a) and (38) of this law. 5.      Submission of the required certificates for the discharge and settlement of the transit, temporary admission or re-export declarations in co ntravention to the conditions prescribed by the 
director general under the provisions of Article (68) of this law. 
6.      Contravention of the rules and conditions prescribed by the director general for depositing the 
goods at the warehouses according to the provisions of Articles (74, 75) of this law 7.      Anchorage of vessels, landing of aircrafts or stopping of other means of transport at places other than those prescribed by the Administration acco rding to the provisions of Articles (20, 21, 22, 
37) of the Law  "law". 
8.      Departure of vessels, aircrafts and othe r means of transport from the ports or the customs 
boundary without authorization from the customs administration according to the provisions of Article (41) of this law. 9.      Transfer of goods from one means of transport to another without the consent of the 
Administration according to the provisions of Articles (32, 45) of this law.  
10.  Unloading of goods from vessels and other m eans of transport or withdrawing the goods 
without authorization from the Customs Administrati on or in the absence of the customs officers or 
outside the office hours prescribed according to the provisions of Articles (32, 40, 45) of this law. 11.  Impeding the customs officers from carrying out their duties and exercising their right of inspection, auditing and reviewing according to the pr ovisions of Section XIII of this law. This fine 
shall be imposed on every individu al involved in the offence. 
12.  Not keeping records, documents and the lik e for the period prescribed in Articles (115, 127) 
of this law. 13.  Breaking the sealing or removing the customs seals from goods.   
Article (31) 
  A fine not less than five hundr ed  Saudi riyals (SR 500) but not exceeding one thousand riyals 
(SR 1000) or its equivalent in the other currenci es of the GCC States on the following offences: 
 1.      Non-submission of the manifest or the other documents at importa tion or exportation as well 
as delaying the submission of the manifest or the other documents beyond the prescribed time 
according to the provisions of Articles (30, 36, 39, and 40) of this law 2.      Not having the manifest endorsed by the customs authorities at the port of shipping in the cases so requiring according to the provisions  of Article (31) of this law.   G/VAL/N/1/SAU/1 
 Page 53 
 
 
  3.      Declaring several sealed packages combin ed in any way in the manifest or the like document 
as being  a single package according to the provisions  of Article (44) of the Law, subject to the 
instructions given by the director general in respect of the containers, pallets and trailers. 
4.      Neglecting to mention some necessary in formation in the manifest or the like document. 
5.      The postal import of closed parcels or boxes not bearing the approved labels in contradiction 
to the provisions of the Arab and international postal agreements and the national legislations 
according to the provisions of Article (40) of this law. 6.      Any other contravention to the provisions of the ministerial resolutions and the instructions 
issued under this law.   
Article (32) 
 
 A fine amounting to two hundred Saudi riyals (S R 200) or its equivalent in the currencies of 
the other GCC States for each day of delay provided that the fine shall not exceed half the price of the 
goods; this applies to the offences of delaying the production of the transit goods or re-exportation to 
the customs office through which the goods will leave or to the customs office to which the goods are 
dispatched after expiry of the period pr escribed in the customs declarations. 
  
Article (33) 
 
 A fine amounting to two hundred Saudi riyals (S R 200) or its equivalent in the currencies of 
the other GCC States for each day of delay of th e public transport vehicles and taxis entering the 
country provided that such fine shall not exceed one  thousand Saudi riyals (SR 1000) or its equivalent 
in the currencies of the other GCC States.   
Article (34) 
  A fine amounting to one thousand Saudi riyals (S R 1000) or its equivalent in the currencies of 
the other GCC States for each week of delay or a fr action of the week provided that the fine shall not 
exceed twenty percent (20%) of th e value of the goods, for the offences of delaying re-exportation of 
the temporarily admitted goods beyond the period prescrib ed in the customs declar ations. In respect of 
the tourist cars, these shall be subject to a fine of tw enty Saudi riyals (SR 20) or its equivalent in the 
currencies of the other GCC States for each day of delay provided that the fine shall not exceed ten 
percent (10%) of the price of the tourist car after expiry of the period prescribed in the temporary admission licence. G/VAL/N/1/SAU/1 
Page 54  
 
  Explanatory Notes 
To the Common Customs Law  
of the Cooperation Council for the 
 Arab States of the Gulf  
  
 The GCC Common Customs Law, which was prep ared by a technical committee of the GCC 
member States, has been laid dow n to meet the provisions relating to the customs affairs and to 
regulate the relationship between customs and the public. The Law contains provisions and 
procedures for the importation, exportation and tr ansit of goods through the territories of the GCC 
States.  This law also clarifies the right s of the employees of those administrations. 
   This Law aims at protecting the society th rough the control of the entry and exit of 
individuals, goods and means of transport. 
   This Law falls into 17 sections comprising 17 9 articles and represents the legal instrument 
regulating the duties of the customs offices and spec ifying the areas subject to customs control, the 
nature of the customs procedures at the land, marine and air ports and the postal customs offices as 
well, applied to the various customs transactions  such as importation, exportation, temporary 
admission, re-exportation and transit. It is the inst rument by which the customs tariff is applied and 
the customs taxes "duties" are levied on the impor ted goods. All these Laws support the trend to make 
the GCC States an international market, encourage their national industries and projects and extend 
the scope of their transactions and increase their exports.   
 This Law also  contains provisions specifyi ng  the stages of the clearance of the goods, 
exemption from customs taxes "duties", conditions of the temporary admission of the goods without payment of the customs taxes "duties", the documents to be produced to customs for the clearance of 
the goods in addition to the provisions governing the establishment of the free zones and duty-free 
shops and controlling the activity of the customs clearing agents (brokers) and the conditions of 
obtaining the licences for practising the customs clea rance job and treatment of the customs offences 
and smuggling matters.    This Law employs the latest customs Laws and regulations in force in the GCC Sates and the Arab States in addition to the privacy of the GCC Stat es and the nature of the role of customs therein, 
and the WTO Agreement as well as the WCO Conventions. 
  
 The Common Customs Law of the GCC states  was adopted in the 20th Session of the 
Supreme Council held in Riyadh, Kingdom of Saudi Arabia in December 1999 and was agreed to implement it as a reference (guidance)  Law for one year from the date adopted and that it would be 
reviewed in the light of the comments received by the Secretariat General from the member Sates in 
an attempt to have it obligatory implemented by all customs administrations of the member States by 
2000.    To complete the requirements for implementation of the Law, and to review the comments of the member States and finalize the preparation of the explanatory notes and Rules of Implementation 
thereof, the Secretariat General proposed in the 21
st Session of the Supreme Council that the reference 
implementation should be extended fo r one more year and consequent ly the Supreme Council, in its 
21st Session held in Manama, Bahrain in Dece mber 2000, decided to extend the reference 
implementation for one more year provided that it would be obligatorily implemented by all customs 
administrations of the GCC States in January 2002.  G/VAL/N/1/SAU/1 
 Page 55 
 
 
    The objective of having a Common Customs Law of the GCC States is to unify customs 
procedures in all customs administrations of th e GCC States and to enhance cooperation in the 
customs field and regulate the relationship between these administrations and the trade community in 
the GCC States so as to ensure unification of the customs procedures in all the GCC States. This Law 
regulates the relationship between the customs administrations and the other governmental 
administrations in the member States and supports  the trade exchange between them and the other 
foreign countries which is one of the bases of the customs union of the GCC States.    
Section I
 
 
Definitions and General Provisions  
 
 This Section deals with the definition of this Law as the "Common Customs Law of the 
Cooperation Council for the Arab States of the Gulf" and contains definitions of the terms provided 
for therein. It provides that the provisions of th is Law shall apply to the territories subject to the 
sovereignty of the State and its territorial waters and allows the establishment of free zones thereon 
and that all goods entering or leaving the State shall be subject to the provisions of this Law.  Article 
(5) entitles the customs administration to exercise its powers in the customs offices and the customs 
zone and within the extent of its la nds and territorial waters subject to the conditions set forth in this 
Law. 
   As regards the setting up and the cancellation of th e customs offices, this shall be issued by a 
resolution of the competent minister to whom the customs administration reports, and the same applies to the designation of the competen ces and office hours of the customs offices. 
  
 Article (8) provides that customs procedures sha ll be carried out only in the customs offices; 
these procedures are those applied when the goods ente r the customs office. This Article excludes the 
cases prescribed by the director general through appli cation of the provision of Article (53) of this 
Law.    
Section II
 
 
Provisions for Application of the Customs Tariff  
 
This Section contains the principles of application of the customs tariff as follows:  
 
 Article (9) provides that goods entering the Stat e shall be subject to the taxes "duties" stated 
in the customs tariff and to the other taxes and fees excluding those goods excluded under the 
provisions of this Law or under the GCC Unified Economic Agreement or a ny other international 
agreement through mutual coordination among the GCC States.   
 The objective of limiting the exemption from th e customs Taxes "duties" to the cases covered 
by this Article is the setting up of the customs union among the GCC States which is based on a single 
point of entry and the common collection of the cust oms Taxes “duties” vis-à-vis the external world. 
   Article (10) provides for the bases for levying th e taxes "duties" which could be ad valorem (a 
percentage of the value of the goods for customs purposes) or specific (a lump sum for each unit of 
the goods such as weight, number, volume, measureme nt or the other specifications of the goods). 
   This Article also provides that the customs tax es "duties" could be ad valorem and specific at 
one time which is based on combining both the ad va lorem and specific rates for one type  of goods. 
  G/VAL/N/1/SAU/1 
Page 56  
 
   Article (11) provides that the imposition, amendment or cancellation of the customs taxes 
"duties" shall be made according to the legal inst rument and the legal and constitutional practices of 
each State, subject to the resolutions issued by th e Council in this connection and to the provisions of 
the international agreements in force.   
 The other Articles of this Section deal with the subjection of the goods to the customs taxes 
"duties" from the registration date of the customs de claration, and the provisions of the customs taxes 
"duties" relating to the clearance of the goods w hose deposit period at the warehouses has elapsed and 
taking out these goods from the free zones and duty-fr ee shops and the tariff to be applied to the 
smuggled goods or those damaged. 
  
Section III 
 
 
Prohibition and Restriction  
  This Section requires the importers to subm it a customs declaration for any goods imported 
into or exported from the country. This declarati on shall be the official document produced to the 
customs along with all the other documents relating to the goods provided that the declared goods shall be presented to the nearest customs office at the point of entry (land, sea or air). The Section also 
provides that anchorage of the marine means of carriage shall be according to the conditions and 
situations set forth in Articles (20, 21). 
  
 Article (22) deals with the arrival and depart ure of aircraft and the conditions of landing and 
takeoff according to the provisions of this Article.    Article (23) limits the entry or exit of the land means of transport to those areas within the 
country where customs offices exist, and Article (24) stipulates that the customs administration shall 
apply the conditions and procedures prohibiting the entry, exit or passage of the prohibited goods or 
the goods contravening this Law or any other Law or resolution. 
  
Section IV
 
 
The Distinguishing Elements of the Goods  
  
 This Section provides clarification and descrip tion of the distinguishing elements of the goods 
(origin, value, type) and stipulates that importe d goods shall be subject to the proof of origin 
according to the rules agreed on within the framework of the in ternational and regional economic 
organizations. The provision of Article  (26) of the Law and the provision of Article (1) of the Rules of 
Implementation are in line with the provisions of  the WTO Valuation Agreement where calculation of 
the value of goods for customs purposes is determin ed according to the provisions and principles 
prescribed in detail in the Rules of Implementation of this law .   Article (27) specifies the documents to be a ttached with the customs declaration and the 
nature of these documents and the treatment of the cases where the importer fails to submit such 
documents to customs, whereas Article (28) provid es that the value of the exported goods shall be 
their value prevailing at the time of registering th e customs declaration plus all charges incurred until 
arrival of the goods to the customs office. Article (29) provides that the goods that are not mentioned in the customs tariff nomenclature and the explanat ory notes thereof shall be classified according to 
the classification advice issued by  the World Customs Organization which is the approved body in 
respect to the international classification. Howe ver, goods falling under national subheadings of the 
customs tariff beyond six digits are to be classi fied within the framework of the GCC Common 
Customs tariff for the Classification and Coding of Commodities which is in line with the Harmonized System in force.  G/VAL/N/1/SAU/1 
 Page 57 
 
 
  Section V  
 
Importation and Exportation  
 
 This Section covers Articles (30 to 46 ) of the Law which contain provisions for importation 
and exportation such as the rules, practices and procedures to be followed- at importation and 
exportation-  by the carriers of the goods through the air, land and sea means of transportation or by 
post, and the documents to be produced to the cu stoms authorities and the times of producing and the 
details to be contained in these documents and the c ontrols to be observed by carriers at loading and 
unloading and the extent of their responsibility fo r the goods they carry when such goods traverse the 
borders of the State.   
 Article (46) of this Section provides an important element of facilitation of the customs 
operations which is the use of the modern technolo gy media in the Electronic Data Interchange for the 
clearance of the goods according to the rules prescribed  by the minister or the competent authority. 
 
Section VI
 
 
Stages of the Customs Clearance  
  
 This Section elucidates in detail the stages of the customs clearance beginning with the 
lodgement of the customs declaration according to  the forms approved within the frame of the 
Council and that the director genera l shall be empowered to specify th e documents to be attached with 
the customs declarations, the details to be c ontained therein and the clearance cases without 
production of such documents under cash or bank guarantees or undertakings according to the 
conditions prescribed by the director general. The Law permits the owners of goods or their 
representatives to examine their goods prior to the l odgement of the customs declaration and to have 
access to the customs declarations and documents to which no other persons can have access except 
the competent judicial and official authorities.    Articles (52 to 59) deal with the right of th e competent customs officer to inspect the goods 
wholly or partially on a case-by-case basis accordin g to practices in force, the inspection procedures, 
the movement of goods, the presence of the owner of the goods during the inspection, the right of the 
administration to open the packages and to make an alysis (tests) of the goods, the discrepancy cases 
and the missing (incomplete) documents stating th e description and specifications of the goods and 
the right of the administration to re-inspe ct the goods and the other relevant matters. 
  
 Article (60) tackles declaration and inspection, at the customs offices, of the passengers 
accompanied luggage and belongings according to the practices and rules prescribed by the director general.     Article (61) discusses the formation of valu ation committee composed of the administration’s 
employees under a resolution issued by the director general. Such committee is specialized in the 
settlement of the disputes arising between the cust oms office and the importers concerning valuation 
of the imported goods, and that the committee ma y seek assistance of experts according to the 
measures and procedures provided for in Article (26)  of this Law without prejudice to the importer’s 
right to appeal before the court.   
 Article (62) deals with the disputes between the customs officer and the owner of the goods 
concerning the valuation of the goods and provides that  the dispute shall be referred to the director 
general for settlement or to the Valuation Settleme nt Committee. This article also provides for the G/VAL/N/1/SAU/1 
Page 58  
 
  right of the director to release the goods against the guarantees provided for in this Article and the 
conditions thereof.    Articles (63 to 66) deal with the payment of the customs taxes “duties” and the other charges 
and the release of the goods accordi ng to the rules and conditions prescribed by the director general.   
   
Section VII
 
 
The Cases where the Customs Taxes "Duties" are Suspended; Drawback  
  This Section deals with cases where the goods could be released and moved from one place o 
another in the country without payment of the cu stoms taxes "duties"; these are known as the cases 
where the customs taxes "duties" are susp ended. The Section also deals with the Drawback (a system 
under which the paid customs taxes "duties" can be refunded when the goods leave the country 
according to the following provisions and rules: 
  
1.      The release of the goods against submitting cash or bank guarantees in an amount equivalent 
to the customs taxes "duties" according to the instructions of the director general. Such 
guarantees shall be released upon presentation of the discharge certificates. 
 2.      When the goods transit the territories of  the GCC States according to the provisions of the 
international Laws and agreements in force such  as the Transit Agreement of the Arab States 
and according to the specified routes and at the responsibility of the carrier as instructed by 
the director general. The routes and conditions of  transport shall be prescribed by a resolution 
of the minister or the competent authority. 
 
3.      The placement of the goods inside th e warehouses of the customs office according to the 
conditions and rules prescribed by the director general. 
 4.      The free zones and duty-free shops set up un der the legal instrument of each State; the rules, 
conditions and customs procedures thereof are to be prescribed under a resolution by the 
minister or the competent authority subj ect to the enhanced control thereof. 
  
 Article (80) designates the goods prohibited from entering the free zones and duty-free shops 
and Article (83) provides that goods may not be  moved from one free zone to another unless in 
accordance with the Laws in force,  whereas Article (85) provides that the goods taken out from the 
free zone into the country shall be treated as foreign goods. 
  
 Article (87) holds the Administration of the free zone responsible for the offences committed 
by its employees.     Articles (89 to 94) deals with the cases wher e the goods not imported for home markets can 
be temporarily admitted and then re-exported fro m the country upon completion of the purposes and 
expiry of the legal period for their stay in the country. 
   These Articles also refer to the temporary admission of tourist vehicles under the Temporary Admission System subject to the internationa l agreements made in this connection. 
  
 Article (97) deals with the cases where the cust oms taxes "duties" levied on the foreign goods 
are wholly or partially refunded (drawback) at re-e xportation according to the conditions set forth in 
the Rules of Implementation.      G/VAL/N/1/SAU/1 
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  Section VIII  
 
Exemptions  
  
 This Section contains provisions for the exem ption from the customs taxes "duties" (Articles 
98 to 106). Exemption covers the following commodities and items: 
 1.      The commodities exempted in th e Common Customs tariff of the GCC States. 
 2.      The commodities imported for the dipl omatic and consular bodi es and the international 
organizations, the heads and members of the di plomatic and consular missions approved by 
the country according to the international agreem ents, laws and practices in force subject to 
the reciprocity principle and subject to the provisions of Article (100) concerning the conditions and procedures relating to the goods exempted under Article (99) of this Law.  
 
3.      Imports by all sectors of the Armed Forces and the Internal Security Forces such as 
ammunition, arms,…etc. 
 4.      The personal effects and used household appliances belonging to the citizens residing abroad 
or those brought with the foreigners (expatriat es) upon their first arrival for residence in the 
country according to the conditions prescribed by the director general. 
 
5.      Personal effects and gifts brought by p assengers according to the conditions of the Rules of 
Implementation. 
 6.      Imports of the philanthropic societies (Cha rities) according to the conditions set forth in the 
Rules of Implementation of this Law. 
 7.      The cases provided for in Article (105) ex empted from the customs ta xes "duties" such as the 
returned goods of national origin that were exported to outside the country as well as the 
foreign goods returned to the country which ar e proved to have been previously re-exported 
to outside of the country and the goods tempor arily exported for completion of processing or 
repair. 
  
Section IX
 
 
Service Charges  
 
 Article (107) provides that the goods placed in the yards and warehouses belonging to the 
customs office shall be subject to the storage, hand ling and insurance charges and the fees of the other 
services required for the storage and inspection of  the goods according to the specified rates. 
  However, in no case shall the storage charge ex ceed half the estimated value of the goods; in 
the event  such warehouses  are managed by other entities, these fees shall be collected according to 
the provisions and rates prescribed in this respect. This Article permits the collection of charges for 
the sealing and analysis (testing) of the goods and all the other rendered services and that the services mentioned in this Article and the conditions of collection shall be prescribed by a resolution to be 
issued by the minister or the competent authority. 
  G/VAL/N/1/SAU/1 
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  Section X
 
 
Customs Brokers  
 
 This section defines the customs broker and his capacity Article 108. Article 109 entitles the 
natural and legal nationals of the GCC States the right to exercise this profession (activity) after 
obtaining the necessary licence from the Administration.   
Section XI
 
 
The Rights and Duties of the Customs Officers of the Administration  
 
 This section outlines two important aspects of the nature of the job of the customs officers; 
the security aspect which is to prevent the entry of the smuggled goods and contraband into the 
country via the customs ports and the economic aspect being to collect the customs taxes "duties". 
The section regulates the rights and duties of the offi cers of the Administration and the   incentives 
given to them and entitles them the power of judici al arrest. The section does also permit the customs 
officers to carry guns provided that such officers sha ll be nominated by a resolution of the minister or 
the competent authority, and requires the civil and mi litary authorities and the Internal Security Forces 
to help them carry out the duties assi gned to them when so requested.   
 
Section XII  
 
Customs Zone (Boundary)  
 
This Section contains provisions of the Customs zone (boundary)  
 
 Article (121) states that there are provisions  relating to the customs boundary (paragraph 9 of 
Article (2) of this Law states that the marine customs boundary covers that area of the sea located 
between the seashores and the ending of the territori al waters). The land customs boundary covers the 
lands located between the shores or the land borders  on the one hand, and an internal line to be 
specified under a resolution by the minister or the competent authority on the other hand. This 
provision states that prohibited and restricted goods as well as high customs taxes goods shall be 
subject to the provisions of the customs boundary. Hence the presence of such goods within these 
areas requires their subjection to the provisions of the customs boundary and the movement of such goods is usually subject to special provisions in order to avoid their smuggling into the country. 
  
Section XIII
 
 
Customs Matters  
 
 This section deals with the customs matters whic h are an important aspect of the provisions of 
this Law. 
 
 Articles (122 to 128) relate to the investiga tion of smuggling according to the controls and 
powers set forth in these Articles such as the inspec tion of the goods and the means of transportation, 
the search of persons, seizure of the goods, exam ining the documents, records, correspondence and 
other documents and the right to detain any suspect  according to the rules pr escribed by a resolution 
issued by the minister or the competent authority. Paragraph (3) of Article (126) states that the 
exercise of work outside of the two customs zon es shall be within the borders of the State. 
   G/VAL/N/1/SAU/1 
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   Articles (129 to 134) deal with the seizure report and the main elements to be contained 
therein. This report is deemed as a pretext (proof) of the material facts and the incompleteness of the 
report shall not render it null.    Those Articles allow the cust oms office to seize the contravening or smuggled goods and the 
items used for concealing them as well as the vari ous means of transport, excluding those intended for 
the transport of persons unless such means are sp ecially designed for the purpose of smuggling. The 
Administration has the right to dispose the goods smuggled or being smuggled if such goods are narcotics and the like according to the Laws and regulations in force in the country.   
 Articles (135 to 137) deal with the provisional seizure of the smuggled goods and the things 
used for concealment thereof and the mean of trans port and the seizure of all documents to ensure the 
customs taxes "duties". These Articles also authorize the director general – when necessary- to obtain 
an order from the competent authorities to effect the provisional attachment on the properties of the 
offenders and those involved in smuggling. The dir ector general may, when necessary and to ensure 
the rights of the public treasury, impose a customs secu rity on the properties of the tax "duty" payers 
or their partners. The Articles have specified the ar rest cases for the smuggling crimes in the act, the 
resistance of the customs officers or the security officers and the other matters regulating the arrest 
process, provided that the arrested persons shall be brought to the competent court within 24 hours 
following the time of arrest.   
 Article (138) provides that the offenders and the persons accused of smuggling shall be 
prevented from travel by a decision of the director ge neral in the event the value of the seized items is 
not sufficient to cover the custom s taxes "duties" and fines. This decision can be cancelled if the 
offender submits a guarantee in an amount equivalent to the claimed amounts or if the value of the 
seized items is found to be sufficient to cover the claimed amounts. 
  
 Articles (139 to 141) deal with the customs offe nces and the penalties thereof, and regard the 
collected customs fines and confiscations provided  for in the Law, as a civil compensation to the 
Administration and not subject to amnesty. These Articles also provide that a penalty shall be imposed on each offence separately provided that the higher (sterner) penalty shall be sufficient if the 
penalties are inseparable. 
  
 Except for the cases deemed as smuggling which ar e provided for in Article (143) of the Law, 
and without prejudice to the provision of the internatio nal agreements in force, a fine shall be imposed 
on the offences referred to in Article (141) of this Law according to the rules set forth in the Rules of 
Implementation.      
  
 Articles (142, 143) deal in detail with the s ubject of smuggling, its definition and the cases 
deemed as smuggling. Paragraph "14" of Article (143) defines such cases as those goods prohibited 
from exportation to outside the country, but are ex ceptionally allowed to be exported provided that 
they are re-imported into the country. Non-compli ance with this requirement shall be deemed as 
smuggling, while Article (144) provides definitions  of the penal liability a nd the persons deemed  
penally  liable. 
   Article (145) provides for the penalties imposed on the customs smuggling or attempted smuggling (the fines provided for in Article 145).   
 Articles (147 to 149) deal with the admi nistrative prosecution "pursuit" and entitle the 
director general to take the necessary decisions for the collection of the taxes "duties" and the 
measures of such collection and allow for the complain t before the minister or the competent authority 
against the penalization judgments within a specified period and that the minister or the competent authority may confirm, amend or cancel such judgments. G/VAL/N/1/SAU/1 
Page 62  
 
    Article (151) provides that smuggling cases (actions) can only be activated by a written 
request from the director general.    Article (151) provides for the rules of reconciliatory settlement  and entitles the director general or his representative to make a reconcileme nt (compromise) of the smuggling actions whether 
prior to bringing out the actions  or during trial a nd before the issuance of the first instance judgment 
which shall be in lieu of the penalties and fines prov ided for in Article (145) of this Law, provided 
that a manual of reconciliatory settlements shall be issued by a resolution of the minister or the 
competent authority.   
 Article (152) provides in detail for the amount of reconcilement subject to the provisions of 
Article (151).    Article (153) provides that the action (claim) shall be settled after r econcilement and Articles 
(154 to 160) deal with the subject of  liability and joinder in the smuggli ng matters and the rules 
thereof, while Article (155) holds the investors of  the private shops and premises where the goods, 
subject of the offence or smuggling, are stored res ponsible for such premises; whereas the investors of 
the public shops and premises and the employees, the owners of the means of transport and drivers 
and their assistants shall be held responsible unless they can prove their ignorance of the presence of 
such infringing goods or contraband and that they have got no direct or indirect interest in them.   
 Article (156) provides that sponsors "guarantors"  shall be held responsible within the extent 
of their guarantees upon payment of the customs taxes "duties" and fines, while Article (157) provides 
that customs brokers shall be responsible for the offences and smuggling crim es they commit in the 
customs declarations, and Article (158) holds the owners of the goods, employers and the carriers 
responsible for the acts of their employees and those working for them. 
  
 With respect to the customs taxes "duties", fi nes and confiscations, Article (159) provides that 
heirs shall not be responsible for the payment of  the fines imposed on the deceased unless they are 
partners in the smuggling.    Article (160) provides that the applicable cust oms taxes “duties” and fines shall be jointly 
paid by the offenders or smugglers according to  the practices adopted for the collection of the 
property of the Government Treasury and that the sei zed goods and means of transport, if any, shall 
be a security for the payment of the claimed amounts.    Articles (161 to 165) provide for the formation of first instance customs courts at the 
Administration and the customs offices according to th e legal instrument applicable in each State. The 
competences and judgments’ finality of such first inst ance customs courts and app eal courts as well as 
the collection of fines and the methods and me ans of executing attachment on the movable and 
unmovable property of the offenders have been set forth in these Articles. Article (165) empowers the 
minister or the competent authority to order that a su fficient amount of such property shall be retained 
for the payment of the claimed amounts. 
 
Section XIV
 
 
The Sale of Goods  
 
 This section contains provisions relating to the sale of the goods in possession of the 
Administration provided for in Articles (166 to 172) and the rules to be followed for the sale of goods 
as set forth in Article (166), whereas Article (167) entitles the Administration, after expiry of the period specified by the minister or the competent authority, the right to sell the goods stored in the customs warehouses or placed in the yards and wharv es or the goods left out in the customs offices.  G/VAL/N/1/SAU/1 
 Page 63 
 
 
    
 Article (168) provides for the goods to be sold by the Administration and Article (169) 
provides that the Administration shall not be respons ible for any damage caused to the goods sold by 
the Administration under the provisions of this Law unless it is proven that the Administration had committed an obvious error in the sale process. Article  (170) contains some provisions relating to the 
sale process described in detail in this Article. 
   Article (171) deals with the controls for disposition of the proceeds of the sale of the 
permitted, prohibited and restricted goods.   
 Article (172) provides that the portion due to the Government Treasury of the proceeds of the 
customs fines and the value of the confiscated or  abandoned goods and means of transport shall be 
50% after deducting the customs taxes "duties" and charges and contains provisions for the 
disposition of the remaining portion.   
Section XV
 
 
Privilege of the Customs Administration  
  
 This section grants the customs administra tion a general privilege over the movable and 
unmovable property of the taxes "duties" payers in case of bankruptcy through precedence over all 
debts excluding the legal expenses in order to collect  the customs taxes “duties” and other charges and 
the fines, compensations, confiscations and redemptions. 
 
Section XVI  
 
Prescription  
  
 This section contains provisions of prescripti on. Article (174) provides that any claim or 
action for the refund of the customs taxes "duties" th at have been paid since more than three years, 
shall not be accepted, and Article (175) empowers th e administration to destroy the records, receipts, 
customs declarations and the other documents afte r five years following finalization of the customs 
procedures thereof and that the administration shall not be required to produce them to any entity or 
give copies or duplicates thereof after the expiry of that period.    Article (176) specifies the prescription time, in  respect to customs, if no pursuit "prosecution" 
has been initiated, and without prejudice to the othe r laws and regulations applicable in the State. 
 
Section XVII
 
 
Final Provisions  
  
 This section contains final provisions as follows: 
  
 Article (177) empowers the director general to:  1.      exclude the ministries, governmental de partments and official and public institutions from 
certain procedures for facilitation of their business, and 
 
2.      sell the confiscated goods to the ministries and official departments and public institutions 
belonging to the government at the price he deems appropriate if they indicate their need of such goods, or to abandon such goods free of charge under a resolution by the minister or the competent authority. G/VAL/N/1/SAU/1 
Page 64  
 
    
  Article (178) entitles the Financial and Econom ic Cooperation Committee of the GCC States 
the right to adopt the Rules of Implementation of this  Law. Article (179) provides that this Law shall, 
after implementation, supersede the customs Laws and regulations in force in the member states 
subject to and without contradiction to the Laws and constitutional rules in each State.   G/VAL/N/1/SAU/1 
 Page 65 
 
 
  PRINCIPLES OF VALUE DETERMINATION FOR CUSTOMS PURPOSES 
 
1. General Provisions 
1.  The importer has the right to withdraw hi s goods upon submitting sufficient guarantee in form  
bank or cash deposit, bank guarantee, surety or mo rtgaged property of equiva lent value covering the 
assessed customs taxes "duties", if it is found that the final determination of the customs value is 
delayed.  2.  The importer or any person liable for payment of the customs duties can object and appeal against the assessment of customs value, without penalty, as following: 
 
(a)  At the administration level:  
(i)  Director, customs port, (ii)  Valuation adjudication committee. 
 
(b) An independent judiciary body (Board of Grievances). 
 
3.  The information, confidential or provided on a confidential basis for purposes of customs 
valuation, shall, be treated as strictly confidentia l, and may not be disclo sed except to the extent 
required to be disclosed in the context of judici al proceedings, according to the Article 51 of the 
Common Customs Law (CCL). 
 4.  If the declared value is stated in a forei gn currency, it should be converted to the domestic 
currency on the basis of exchange rate announced in bulletins issued by the co mpetent agencies (i.e., 
Saudi Arabian Monetary Agency (SAMA)) The time of payment of the customs taxes “duties” shall 
be the time approved for currency exchange rate. 
 5.  In determining the customs value, no di scounts or deductions made after the date of 
importation of the goods in the payable or actuall y paid price will be considered. Also, no credit 
balances pertaining to previous c onsignments will be considered wh en determining the value of the 
goods being valued.  
 
6.  This Law does not contain any provision that im plies restrictions to or doubt in, the right of 
the Customs to undertake whatever is necessary to ascertain the validit y or accuracy of any statement, 
document or undertaking submitted to the customs for valuation purposes.  
7. (A)  If accounting information is required to be  utilized for determining the customs value for 
purpose of applying the provisions of the Clauses IV to VIII of this Article, such information 
shall be utilized in a manner consistent with  generally accepted accounting principles in the 
GCC States in applying the deductive value referred  to in the Clause VI of this Article, or in 
the country of production of the goods being va lued when applying the computed value under 
the Clause VII of this Article, as the case may be. 
 
(B) The customs may not refuse information prepared according to the generally accepted 
accounting principles, and submitted by the impor ter, buyer or producer in connection with 
the valuation of goods, on the grounds of accounting principles used.  
8.  Taking into account provisions of the Clause IV.B of this Article, and in determining the 
customs value of the information carrier media such  as the magnetic tapes or the like, containing data 
or computer software recorded thereon, the value sh all be assessed on the basis of value of such media G/VAL/N/1/SAU/1 
Page 66  
 
  only according to the paragraph 2 of the decision No. 4.1 Adopted by the WTO Customs Valuation 
Committee on 12/5/1995.  
2. Definitions 
1.  "Price actually paid or payable"  means the total payment made or to be made by the buyer 
to or the benefit of the seller for the imported goods. The payment need not necessarily take the form 
of a transfer of money. The payment may be by way of letters of credit or negotiable instruments. Payment may be made directly or indirectly such as settlement by the buyer, in whole or in part, of a 
debt owed by the seller.  
2.  " Imported goods being valued"  means the goods being valued for customs purposes. 
 3.  "Packing costs" means the cost of all containers (e xcluding instruments of international 
traffic) and coverings of whatever  nature and of packing, whether for labour or material, used in 
placing goods in condition, packed for shipment to the GCC States. 
 
4.  "Produced"  includes grown, manufactured and mined, etc.  
 5.  "Related person"  means: 
 
(1)  legally recognized partners in business; 
(2)  officers or directors of one another’s business; 
(3)  employer and employee; (4)  any person directly or indirectly ow ns, controls or holds five per cent or 
 more of the outstanding voting stock or shares of both of them; (5)  one of them directly or indirec tly supervises or controls the other; 
(6)  both of them are directly or indirectly supervised or controlled by a third 
 person; (7)  together they directly or indirectly control a third person; or (8)  members of the same family.  
6.  " Identical goods"  means goods that are the same in  all respects, including physical 
characteristics, quality and reputation to, and produced  in the same country and by the same person as, 
the goods being valued. Minor differences in appearan ce that are ineffective in the value, would not 
preclude goods which otherwise conform to the defi nition, from being considered as identical goods. 
If identical goods produced by the same person cannot be found, goods identical in all respects to, and 
produced by another person, may be treated as id entical goods. "Identical goods" do not include the 
goods that incorporate or reflect any engineering, de velopment, artwork, design work, plan or sketch 
undertaken in the GCC States, that are not included in settlements of the tran saction value according 
to the Clause IV.B.1.iv.(d) of this Article.  7.  "Similar goods"  means the goods produced in the same country and by the same producing 
person, although not alike in all respects, as the goods being valued, in characteristics, component 
materials and capability of performing the same func tions, and commercially interchangeable with the 
goods being valued. The quality of the goods, their re putation, and existence of a trademark will be 
factors considered to determine whether the goods ar e similar. If similar goods  produced by the same 
person cannot be found, goods  produced in the same country as, but not produced by the same person, 
which are like the goods being valued in char acteristics and component  materials, and are 
commercially interchangeable with the goods be ing valued, may be treated as "similar goods". 
"Similar goods" do not include the goods that incorpor ate or reflect any engineering, development, 
artwork, design work, plan or sketch undertaken  in the GCC States, that are not included in 
settlements of the transaction value according to  the Clause IV.B.1.iv.(d) of this Article.  G/VAL/N/1/SAU/1 
 Page 67 
 
 
  8.  "Unit price in greatest aggregate quantity"  means the price at which goods are sold in 
greatest aggregate quantity that is enough to determ ining unit price in transactions of sale to persons 
who are not related to the persons from whom they buy such goods, at the first commercial level after 
importation in the application of any of the Clauses VI.1, 2 and 3.   
9.  "Goods of same class or kind"  means the goods which fall within a group or range of goods 
produced by a particular industry or industrial sector, including but not limited to, identical or similar goods.   10.  "Generally Accepted Accounting Principles"  means the recognized consensus or 
substantial authoritative support, at a pa rticular time, regarding the following: 
 
(1)  resources and obligations that should be recorded as assets and liabilities;   
(2)  changes in assets and liabiliti es that should be recorded; 
(3)  how the assets and liabilities, and changes in them should be measured; 
(4)  what information should be disclo sed and how it should be disclosed; and 
(5)  which financial statem ents should be prepared. 
 
11.  "Objective Data"  means the information that helps in verifying the following: 
 
(1)  an amount added according to Clause IV (b) of this Article to the price actually paid 
 or payable; 
(2)  any adjustment according to Clause V of this Article; (3)  an amount deducted according to Clause VI  of this Article considered as being profit 
 or general expenses, or value arising from further processing; and 
(4)  an amount added according to Clause VII of  this Article considered as being a profit 
 or general expenses. 
 
3. Methods of Customs Valuation 
A.  Imported goods will be valued on the b asis, and in the order, of the following: 
 (1)  The transaction value provided for in Clause IV; 
(2)  The transaction value of identical goods provided for in Clause V(a), if the 
 transaction value cannot be determined according to Clause IV; (3)  The transaction value of similar goods provided for in Clause V(b), if the transaction  value of identical goods cannot be determined; (4)  The deductive value provided for in Clau se VI, if the transaction value of similar 
 goods cannot be determined; 
(5)  The computed value provided for in Clause VII, if the deductive value cannot be 
 determined; or (6)  The value provided for in Clause VIII, if the computed value cannot be computed. 
 
B.  The importer may request application of th e computed value method before the deductive 
value method. Such request must be made at the time of submitting the Cust oms Declaration to the 
customs port. If the importer makes the request, but the value of the imported goods cannot be determined using the computed value method, th e goods will be valued us ing the deductive value 
method if it is possible to do so. If it is found impo ssible, the value will be determined according to 
Clause VIII.  
 
  G/VAL/N/1/SAU/1 
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  4. Transaction value of the goods being valued 
A.  The customs value of the goods imported to the GCC States shall be the transaction value i.e., 
the price actually paid or payable when the goods ar e sold for export to the GCC States, according to 
the provisions of Clause (B) under this method, and subject to the following conditions:  
(1)  that there are no restrictions as to the disposition or use of the imported goods by the 
buyer, other than the restrictions provided fo r in this Law, restrictions that limit the 
geographical area in which the goods may be resold; or the restrictions that do not substantially affect the value of the goods; 
(2)  that the sale or price is not subject to some condition or consideration for which a 
 value cannot be determined with respect to the goods being valued; 
(3)  that no part of the proceeds of any subsequent resale, disposal or use of the goods by 
the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made according to the provision of Clause (B) under this method; 
(4)  that the buyer and seller are not relate d according to Clause II.5 of this Article, or 
where the buyer and seller are related, that the transaction value is acceptable for 
customs purposes according to the provisions of Clause (A) under this method, if any of the following conditions is met:   (a)  if an examination of the circumstances surrounding the sale demonstrates that 
the relationship between the buyer and the seller did not influence the price 
actually paid or payable; or 
 
(b)  if the transaction value of the im ported goods closely approximates to one of 
the test values noted below: 
 
(i)  a transaction value of identical or similar goods in sales to unrelated 
buyers at the GCC States; 
(ii)   a customs value of identical or similar goods as determined under the 
Clause VI: Deductive Value;  
(iii)  a customs value of identical or  similar goods as determined under the 
Clause VII: Computed Value 
 
(c)  When applying Clause IV.A.4.b, the di fference adjustment will be taken into 
account if existed between the declared value and the test value, based on objective data provided by the buyer or available to the customs according Clause II.11 taking into account Clause IV.B of this Article. 
 
B.  Additions to the price actually paid or payable (Adjustments):  
(1)  In determining the customs value according to this Clause IV, the following costs will 
be added to the extent incurred by the importer but are not included in the price 
actually paid or payable for the imported goods: 
 
(i)  commissions and brokera ge, except buying commission; 
(ii)  the cost of the containers which are treated as being one for customs 
purposes with the goods in question; 
(iii)  the cost of packing whether for labour or materials; 
(iv)  the value of the following goods and services (assists) provided by 
the buyer, directly or indirectly, free of charge or at a reduced cost, for its use in the production of the imported goods and sale thereof  G/VAL/N/1/SAU/1 
 Page 69 
 
 
  for export to the GCC States, provided that such value is properly 
apportioned: 
 
(a)  materials, components, parts and similar items used in production of the 
imported goods; 
(b)  tools, dies, moulds and similar items used in production of the imported 
goods; 
(c)  materials consumed in pro duction of the imported goods; and  
(d)  engineering, development, artwor k, design work, and plans and sketches 
undertaken elsewhere than the GCC St ates, and necessary for the production 
of the imported goods 
 (v)  royalty and license fees related to the goods being valued that the 
buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent  that such royalties and fees are 
not included in the price actually paid or payable; 
(vi)  the value of any part of th e proceeds from any subsequent resale, 
disposal or use of the imported goods that accrues directly or indirectly to the seller; 
(vii)  the cost of transport of the imported goods to the port or place of 
importation; and 
(viii)  loading, unloading, handling an d insurance costs associated with the 
transport of the imported goods to the port or place of importation. 
 
2.  No additions shall be made to the price actually paid or payable except according to 
the provisions of Clause IV.B. of this Artic le. Any addition must be made only on the 
basis of objective and quantifiable data, i.e., on the basis of facts supported by actual 
figure without personal interpretation taking into account Clause II.11 of this Article. 
 Otherwise, arriving at the transaction value will not be considered feasible under this method. 
 
C.  Exclusions from the transaction value 
 
The value for customs purposes shall not include the following costs and amounts provided 
that they are identified separately from the price actually paid or payable:  
(1)  Post-importation costs, such as: 
 
(a)  charges for construction, erection,  assembly, maintenance or technical 
assistance, undertaken after importation of goods to the GCC States; 
(b)  transportation, loading, unloading, handling and insurance charges of the 
imported goods after importation; 
(c)  customs duties or any other taxes levied on the imported goods after 
importation to the GCC States; 
(d)  dividends or other payments from the buyer to the seller that do not relate to 
the imported goods; 
(e)  interest that might have accrued on the basis of a financial agreement 
concluded by the buyer for purchasing the imported goods; 
(f)  activities undertaken by the buyer on his own account;  
 
(2)  credit balances with the buyer in favour of the importer;  G/VAL/N/1/SAU/1 
Page 70  
 
  (3)  amounts of export subsidy that might be  provided by some countries for exportation 
of some goods; and 
 (4)  any anti-dumping amounts when goods are sold at dumped prices (i.e., less than the 
cost), since the dumping must be treated according to the Anti-Dumping Agreement. 
 
D.  If it is found that there are reasonable grounds to doubt validity of the submitted documents or 
the data contained therein, the importer should be  notified in writing, upon his request, of such 
grounds, and will be given sufficient time, to be speci fied by the customs port, to provide response. If 
he does not provide evidence acceptable to the cu stoms port within such period, and the customs 
value could not be determined according to the provisi ons of Clause IV of this Article, the value must 
then be determined according to the methods sp ecified in Clauses V to VIII sequentially until a 
customs value according to a practical method is established.  
5. The customs value will be considered 
A.  The transaction value of identical goods al ready accepted as a transaction value according to 
Clause IV of this Article, exported to the GCC Stat es at or about the same date as the export of the 
goods being valued, at the same commercial leve l and quantity of the imported goods being valued. 
Where no such value is found, the transaction value of identical goods sold at a different commercial 
level and/or in different quantities, adjusted to ta ke account of differences attributable to commercial 
level and/or to quantity shall be used based on objective data and demonstrated evidence which 
establishes reasonableness of the adjustment accordi ng to Clause II.11 of this Article, whether the 
adjustment leads to an increase or decrease in the value, taking into consideration the difference in the 
costs mentioned in the Clauses IV.B.1 of this Artic le. If more than one transaction value for identical 
goods is found, the lowest of such values shall be used as the customs value for the goods being 
valued, according to Clause V.A. of the Interpretative Annex; 
 
B.  The transaction value of similar goods al ready accepted as a transaction value according to 
Clause IV of this Article, exported to the GCC Stat es at or about the same date as the export of the 
goods being valued, at the same commercial leve l and quantity of the imported goods being valued. 
Where no such value is found, the transaction value of similar goods sold at a different commercial 
level and/or in different quantities, adjusted to ta ke account of differences attributable to commercial 
level and/or to quantity, based on objective da ta and demonstrated evidence which establishes 
reasonableness of the adjustment according to Cl ause II.11, whether the ad justment leads to an 
increase or decrease in the value, taking into account  the difference in the costs mentioned in Clauses 
IV.B.1 of this Article. If more than one transac tion value for similar goods is found, the lowest of 
such values shall be used as the customs value for the goods being valued, according to Clause V.B. 
of the Interpretative Annex. 
 
6. Deductive Value 
(1)   The customs value shall be based on the unit price at which the imported goods or 
identical or similar goods are sold at the first commercial level, in the GCC States’ 
local market, in the same condition as impor ted, at the greatest aggregate quantity 
according to Clause II.8, at or about the ti me of the importation of the goods being 
valued, to non-related persons according to  Clause II.5 of this Article, but with 
excluding the sale of the goods incorporating in production any of the assists mentioned in Clause IV.B.1.iv of this Artic le, subject to deductions for the following: 
 
(a)  either the commissions (usually paid or agreed to be paid), or the additions 
usually made for profit and general ex penses in the GCC States for goods of 
the same class or kind;  G/VAL/N/1/SAU/1 
 Page 71 
 
 
  (b)  the usual costs of transport and insurance after importation and associated 
costs in the GCC States, provided that such costs are not included as general 
expenses according to Clause (a) above; 
(c)  Customs duties, other taxes or Zakat payable in the GCC States by reason of 
importation or local sale of the goods, taking into account that such taxes and 
Zakat shall not be deducted according to this Clause in case the importer 
records them within the general expen ses mentioned in Clause (a) of this 
method. 
 (2)  If neither the goods being valued nor iden tical nor similar imported goods are sold at 
or about the time of importation of the goods being valued, the customs value, taking 
into account the provisions of Clause 1 of th is method, will be based on the unit price 
at which the imported goods or identical or similar goods are sold in quantities 
sufficient for determination of the unit price at the first commercial level, in the GCC States’ local market, in the condition as imported at the earliest date after the 
importation of the goods being valued but be fore the expiration of ninety days after 
such importation. 
 (3) If neither imported goods nor identical nor similar imported goods are sold in the 
GCC States’ local market in the condition as imported, then, if the importer so 
requests, the customs value, shall be ba sed on the unit price at which the imported 
goods, after further processing, unless their iden tity is lost, are sold at the greatest 
aggregate quantity, between un-related persons according to the definition in 
Clause II.5 of this Article, due allowance being made for the value added by such 
processing, and the deductions provided for in Clause 1 of this method. 
 7. Computed Value 
(1)  If the customs value could not be determ ined according to Clause VI of this Article, 
or in case the importer requested applica tion of the computed value before the 
deductive value according to Clause III (B) of this Article, the customs value, 
according to the provisions of this Clause, shall be based on the computed value. The 
computed value shall consist of the sum of: 
 
(a)  the cost or value of materials and fabrication or other processing employed in 
producing the imported goods; 
(b)  an amount for profit and general expe nses equal to that usually reflected in 
sales of goods of the same class or kind as the goods being valued which are 
made by other producers in the same country of exportation for export to the 
GCC States; 
(c)  the charges and costs listed in the Cl auses IV.B.1 (7) and (8) of this Article. 
 
(2)  Any person resident outside the GCC States shall not be required to produce for 
examination, or to allow access to, any account or other record for the purposes of 
determining a computed value. However, the customs administration may verify the 
information supplied by the producer of imported goods for the purposes of determining the customs value under the provisi ons of this Article in another country, 
with agreement of the producer, provided a sufficient advance notice is given to the government of the country where the investigation is to take place, and the 
government does not object to it. 
 G/VAL/N/1/SAU/1 
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  8. Flexible Method 
(a)  If the customs value of the importe d goods cannot be determined under the 
forgoing methods mentioned in Clauses IV through VII of this Article, the 
provisions of the same Clauses shall be  applied once again sequentially with 
reasonable flexibility, until the custom s value according to the first possible 
method is arrived at. 
 (b)  If the customs value could not be arrived at applying those methods even 
flexibly, reasonable methods not inconsis tent with the principles and general 
provisions of the Customs Valuation Agreement (CVA), the Article VII of 
the GATT 1994, on the basis of data available anywhere in the GCC States 
may be applied. However, no customs va lue shall be determined on the basis 
of the following: 
 
(i)  the selling price in the GCC States of goods produced therein; 
(ii)  the higher of the alternative values; 
(iii)  the price of goods on the domestic market of the country of 
exportation; 
(iv)  the production costs other than the computed value defined under 
provisions of the Clause VII of this Article; 
(v)  the price of goods for export to a country other than the GCC States; 
(vi)  arbitrary or fictitious values; or 
(vii)  minimum customs values. 
 
(c)  If the importer so requests, the importer shall be informed in writing of the 
method adopted in the customs value determination according to provisions 
of this Article. This clarification w ill only cover the goods being appraised, 
and will not serve as a reference with re gard to appraisal of any other goods 
imported through the same or other port of entry. This procedure is only 
intended for information purposes, and does not affect or replace procedure of appeal provided for in Clause I.2 of this Article. IX.  
 9. The following Interpretative Annex is considered an integral part of this Article.  G/VAL/N/1/SAU/1 
 Page 73 
 
 
  Interpretative Annex 
 
  
Article Interpretative Notes 
I.5 No credit balances pertaining to previous consignments will be 
considered when determining the value of the goods being valued. 
Example: An importer receives a shipment of TVs for SR10,000. 
 The invoice shows SR9,000 as price of the TVs, and a balance 
 of SR1,000. The importer stated that the balance of SR1,000 is  given to him as compensation for 10 TVs damaged in the 
 previous shipment.  
In this case, the balance is irrelevant to the shipment being valued. So, the customs value of the shipment will be SR10,000. 
IV.A  Price actually paid or payable: 
1.  In determining the transaction value, the price actually paid or payable 
defined in the Clause II.(1) of this Article, irrespective of the method applied, shall be considered. It may be an outcome of deductions, additions or 
negotiations, or may be arrived at by applying a particular formula. 
 2.  “Payable” means price of goods not paid at time of determination by 
the customs of the transaction value of the imported goods. Th e price agreed to 
be paid will be the basis for determination of the customs value. The payment 
need not necessarily take the form of a transfer of money. Payment may be 
made by letters of credit or financial instruments, directly or indirectly. 
 3.  “Indirect payment” includes settlement of a debt owed by the seller to 
the buyer, totally or partially. The buyer may obtain discount in the price of the 
goods being valued as a settlement method for his debt owed by the seller. The 
indirect payment will not include activities undertaken by the buyer on his own 
account such advertisement (except the activities provid ed for in Clause IV.B) 
despite being beneficial also to the seller. In determining the customs value of imported goods, the costs of such activities shall not be added to the price 
actually paid or payable. 
 4.  Assembled Goods: The price actually paid or payable can represent an 
amount paid against assembly of the imported goods. So, the price actually paid or payable will be calculated by adding the value of the components and 
assembling. Example: An importer had already provided a foreign assembler 
readymade components for assembling, the price or cost of which at the assembling factory is SR1 per unit. The importer pays to the assembler SR0.05 
per unit against assembling. So, the transaction value of each unit will be 
SR1.50. 
IV.A.1  The restrictions that have no substantial effect on the price of the goods, shall 
not preclude determination of the customs value by applying the transaction 
value method. For example:  
 1.  Restrictions specifying a particular date for selling the imported 
goods.
  
 Example 1: An importer buys a lot of garment. It is found that  the purchasing contract contains  a condition by the seller that 
 the buyer (i.e., importer) shall on ly start selling after a particular 
 date, for instance at th e onset of the winter. 
 2.  Restrictions specifying a pa rticular place in the country of 
importation for reselling the imported goods. 
 Example 2: Taking into account  the Example 1, if the seller 
 specifies a condition requiring that the buyer (i.e., importer) 
 shall only resell, for instance, in the city of Riyadh. 
3.  Restrictions specifying a particular method of reselling in the country of importation. G/VAL/N/1/SAU/1 
Page 74  
 
  Article Interpretative Notes 
 Example 3: If the seller in the Example 1, specifies a condition 
 requiring that the buyer (i.e., importer) shall only resell through  the sales representatives only, or through advertisement in the 
 information media.
 
IV.A.2  Condition or consideration for which a value cannot be determined: 
A seller specifies, for instance, the price of the imported goods on the condition 
that the importer shall also buy other goods also in specified quantities; or the 
price of the imported goods is dependent upon price/s at which the importer shall sell other goods to the seller of the imported goods; or the price of the 
imported goods is specified on the basis of a form of payment not related 
substantially to the goods, e.g., the goods is to be subjected to further processing by the buyer, and the seller requires from the buyer to take a 
particular quantity of the goods after processing.
 
IV.A.4 If the customs has sufficiently detailed information on the buyer and seller 
indicating to its satisfaction that the relationship between both of them has not influenced the price actually paid or  payable, the price shall be accepted 
without requiring additional information from the importer. If the customs has 
doubt that the relationship has influenced the price, then the importer shall be notified thereof, and be given sufficient time to reply. The notification shall be 
in writing, if the importer so requests. 
IV.A.4.a The transaction valu e, after examination of the circumstances surrounding the 
sale, shall be accepted, if the customs found: 1.  that the buyer and seller, despite their relationship, buy and sell to 
each other as non-related person; 
2.  if the price was established consis tent with normal pricing practices of 
the industry in question, this would demonstrate that the price has not been 
influenced by the relationship; and 
3.  if it is shown that the price is adequate to ensure recovery of all costs 
plus a profit which is representative of the firm’s overall profit realized over a 
representative period of time, in sales of goods of the same class or kind. 
IV.A.4.b Test Value: 
1.  These are values previously accepted as customs values for goods 
exported to the GCC States at or about the time of the importation of the goods. 
The test values shall only be used for co mparison with the transaction value of 
the imported goods.  
2.  In order to determine whether the transaction value closely 
approximates to the test value, the following factor will be considered: 
 (a)  the nature of the imported goods, and the industry; 
 (b)  the season in which the goods are imported;  (c)  whether the difference in va lue is commercially significant; 
and 
 (d)  whether the difference in value is attributable to internal   transport costs in the country of exportation. 
Since these factors may vary, a uniform standard, such as a fixed percentage in 
each case cannot be applied. A small diffe rence in value in a case involving one 
type of imported goods could be unaccept able, although a large difference in a 
case involving another type might be acceptable. 3. In applying the test values, differ ences between the declared value and the 
test value will be taken into account. The difference will be adjusted if it is 
based on objective data supplied by the importer or available to the customs. The difference may be related to the following: 
 
  (a)  commercial level of the importer; 
 (b)  imported or contracted quantity;  (c)  costs specified in Clauses IV .B.1.(7) and (8) of this Article;  G/VAL/N/1/SAU/1 
 Page 75 
 
 
  Article Interpretative Notes 
 and 
 (d)  costs borne by the seller in sales where the seller and buyer   are unrelated, which is not borne by him in sales where the 
  seller and buyer are related. 
4.  If it is found through comparison and inquiry that a test value provided 
for in the Clause IV.A.4.b is approximate  to the declared va lue, an examination 
of the circumstances surrounding the sale to determine whether the relationship between the buyer and seller influenced the price, shall not be required. If the 
customs has sufficient information to be satisfied, without further detailed 
inquiries, that one of the test values is approximate to th e declared value, it 
shall not require the importer to prove accuracy of the test value. 
IV.B.1.i “Buying Commission” means expenses paid by the importer to his agent for his 
services of representation abroad for buying the goods being valued. It is not 
included in the customs value.  “Selling Commission” means expenses paid to the seller’s agent, who is related 
to or controlled by , or works for or on behalf of, for selling the goods. 
IV.B.1.iv  A.  Requirements of adding value of assists: 
1.  If the value was not already incl uded in the declared price actually 
paid or payable. 
2.  If the assists were provided by the importer (buyer) free of charge to 
the producer (manufacturer) directly or indirectly. 3.  If the assists were provided at a reduced cost, the addition shall be 
only apportioned to the amount reduced by the importer (buyer). 
4.  If the assists were used in production of the goods being valued. 
 B.  Determining value of assists: 
If cost of assists is to be added to the transaction value of the goods being 
valued, or to be used as a component of the computed value, the value of the 
assists and transportation costs thereof,  to the production place of the goods 
being valued, including non refundable duties and taxes, shall be determined 
and apportioned to the price of the goods in the following manner: 
 1. If the assists consist of materials, components, parts or similar items 
incorporated in the imported goods, or goods consumed in production of the 
imported goods, acquired by the buyer from an unrelated seller, the value of the 
assists is cost of its acquisition. If the assist was produced by the buyer or a person related to the buyer, the value would be the cost of its production. 
2. If the assist consists of tools, dies, moulds, or similar items used in the 
production of the imported goods, acquired by the buyer from an unrelated seller, the value of the assist is the cost of its production. If the assist has been 
used previously, the original cost of acquisition or production will be adjusted 
to reflect its use before its value could be determined. If the assist was leased 
by the importer from an unrelated person, the value of the assist would be the 
cost of the lease. Repairs or modificati ons to an assists may increase its value. 
 
 Example 1 : Sِaudi importer supplied detailed designs required for the goods 
manufacturing, to a foreign producer. The Saudi importer bought the designs 
from an engineering company in the G CC States for providing to the foreign 
producer. 
Question:  Should the customs value of the goods include the value of 
the assist? Answer:  No, design work undertaken in the GCC States may not be 
added to the price actually paid or payable. 
 Example 2 : A Saudi importer supplied moulds free of charge 
to foreign producer (exporter). The moulds were necessary to 
manufacture goods for the Saudi importer. The Saudi 
importer had some moulds manufactured in a GCC State and 
others manufactured in a third country. G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
Question: Should the customs va lue of the goods include the 
value of the moulds? Answer: Yes. The value of the moulds must be added to the 
transaction value whether manuf actured in or out of the GCC 
States. 
 
 C. Apportionment of the value of assists: . 
The apportionment of the value of assists to imported goods will be made in a reasonable manner appropriate to the ci rcumstances and according to generally 
accepted accounting principles. The met hod of apportionment will depend upon 
the documentation submitted by the importer. If the entire anticipated production usin g the assist, for example, is for 
exportation to the country of importation, the total value may be apportioned 
applying one of the following methods: 1.  the first shipment, if the importer wishes to pay duty on the entire 
value of the assist at once, 
2.  the number of units produced up to the time of first shipment, 3.  the entire anticip ated production of the assist, if definite contracts or 
undertakings exist regarding to such production, 
4.  any other method of apportionment requested by the importer  according to generally accepted accounting principles, or 
5.  if the imported goods are only a part of the production, or if the assist 
is used in several countries, the method of apportionment  will depend upon the documentation submitted by the importer. 
 Example : An importer provides the producer with a mould to be 
 used in production of the imported goods, and contracts to buy 
 10,000 units. By the time of arrival of the first shipment of  1,000 
 units, the producer has already produced 4,000 units. In this case, the importer may request the customs to apportion the value over 
1,000, 4,000, 10,000 units, or any other figure which  conforms to generally 
accepted accounting principles. 
IV.B.1.v 1.  Fees or amounts paid by the importer for use of royalties and license 
fees, may include, among other things, payments in respect to patents, 
trademarks and copyrights, and shall be added to the customs value. 
2.  The price actually paid or payable for the imported goods being valued shall not include the charges for right of reproduction. It relates to the following 
goods: originals or copies of artistic or scientific works, orig inals or copies of 
models and industrial drawings, model machines and prototypes, and plants and animal species. 
3.  The payments made by the buyer for the right to distribute or resell the 
imported goods shall not be added to the price actually paid or payable if such payments are not a condition for the sale to export the imported goods to the 
GCC States. 
4.  If the royalty is based partially on the imported goods and partially on other factors which have nothing to do with the imported goods (such as when 
the royalty cannot be distinguished from special financial arrangements 
between the buyer and the seller), the customs value cannot be determined 
according to the transaction value method specified in the Clause IV of this 
Article. 
 5.  If the royalty, however, is based only on the imported goods and can 
readily be quantified, an addition to the price actually paid or payable shall be 
made.  G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
IV.C.1.c How to exclude the ad va lorem customs duties and any other 
taxes: Example : If the price actually paid or paya ble is SR56,000 inclusive of the 
 value of the imported goods, insurance and freight (CIF), plus an ad 
 valorem duty reaching for example in the GCC States  to 20%, in 
 addition to a post-importation payable tax of SR500. 
The customs duties and taxes sha ll be excluded as following: 
56,000 – 500 = 55,500 
55,500 / 1.20 = 46,250 (The outcome represents CIF.) 
IV.C.1.d Dividends or other payments from the buyer to the seller, which do not relate to 
the imported goods, will not be added to the customs value, such as the dividends of the shares paid to the shareholders, which are not directly related 
to the imported goods. Share dividends must be distinguished from the 
proceeds since the proceeds represent a part of the proceeds due to the seller from any subsequent resale, disposal or  use of the imported goods that accrues 
directly or indirectly to the seller, which must be added to the value of the 
goods. 
IV.C1.e The interest on financing provided by the seller, a bank or any other person, for 
buying the imported goods, shall not be included in the customs value, 
provided: 
1.  that such interest is separated from the price actually paid or payable for the imported goods; 
2.  that the financial agreement is concluded in writing; 
3.  that the buyer can prove that th e goods is really sold at the price 
declared, i.e., the price actually paid or payable; and 
4.  that the financing interest rate does not exceed the prevalent rate of the 
country where the financing was exte nded regarding such transaction. 
IV.C.1.f The activities undertaken by the bu yer on his own account other than those for 
which an adjustment provided in Clause IV.B, even if beneficial to the seller, 
include for example studies, market rese arches, publicity and advertisement, 
preparation of showrooms, and participation in the commercial exhibitions. 
IV.C.2 Credit balances with the seller in fa vour of the importer, included in the price 
actually paid or payable for the goods being valued, as compensation for a 
previous consignment or business transaction. Since balance adjustment for previous consignments must be settled separately from the consignment being 
valued, refer to the Example in I.5 of this Annex. 
V.A. 1.  The customs value will be the transaction value of identical goods 
already accepted as transaction value unde r Clause IV of this Article, on the 
basis that such identical goods were sold  for export to a GCC State, as of or 
about, the same date as the export of the goods being valued, from the same 
manufacturer, at the same commercial level of the importer, and same quantity of the goods being valued. 
2.  Where no such value is found, the transaction of identical goods 
according following prio rities will be used: 
 a.  from the same manufacturer, in different quantities and/or 
  commercial level; 
 b.  from a different manufacturer, in the same quantities and/or 
  same commercial level; 
 c.  from a different manufacturer, in different quantities and/or 
commercial level; G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
 3.  The commercial level means form of dealing exercised by the 
importer, i.e., wholesale, retail or self-consumption.  4.  If there is difference in the goods being valued and the identical goods 
in the quantities, commercial level and costs mentioned in Clause IV.B.1. of 
this Article, the transaction value of identical goods shall be adjusted to take 
account of such diff erences, whether the adjustment  leads to an increase or 
decrease in the value, based on demo nstrated evidence which establishes 
reasonableness and accuracy of the adjust ment, such as authorized price lists 
containing values reflecting different levels or quantities. 
Example : If the imported goods being valued  consist of 10 pieces, and the only 
identical goods for which a transaction va lue exists involved  500 pieces, and if 
a price list from the foreign seller is avai lable that contains different prices 
according to the quantities, th en an adjustment can be reached by referring to 
that price list, through applying an ap propriate value according to the imported 
goods being valued. This does not require that a transaction of identical goods 
had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In absence of 
such an objective measure, however, the determination of a customs value 
under the provisions of the identical g oods transaction value is not appropriate. 
 5. If, in the application of this Article, more than one transaction value for 
identical goods is found, which were sold at same commercial level, in same 
quantity and in same sale circumstances (in mode of payment i.e., cash or 
credit; condition of goods at the time of sale i.e., at first line of production, stocks as backlog of the line of produc tion, factory clearan ce, or end-of the-
season sales, etc.), then the lowest of such values shall be used. 
V.B 1.  The customs value will be the transaction value of similar goods 
already accepted as transaction value unde r Clause IV of this Article, on the 
basis that such similar goods were sold for export to a GCC State, as of or 
about, the same date as the export of the goods being valued, from the same manufacturer, at the same commercial level of the importer, and same quantity 
of the goods 
being valued. 2.  Where no such value is found, the transaction of similar goods 
according following prio rities will be used: 
 a.  from the same manufacturer, in different quantities and/or   commercial level; 
 b.  from a different manufacturer, in the same quantities and/or 
  same  commercial level;  c.  from a different manufacturer, in different quantities and/or 
  commercial level; 
 3.  The commercial level means form of dealing exercised by the 
importer, i.e., wholesale, retail or self-consumption. 4.  If there is difference in the go ods being valued and the similar goods 
in the quantities, commercial level and costs mentioned in Clauses IV.B.1. of 
this Article, the transaction value of similar goods shall be adjusted to take into account such differences whether the ad justment leads to an increase or 
decrease in the value, based on demo nstrated evidence which establishes 
reasonableness and accuracy of the adjust ment, such as authorized price lists 
containing values reflecting di fferent levels and quantities;  G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
 Example : If the imported goods being valued  consist of 10 pieces, and the only 
similar goods for which the transaction va lue exists involved 500 pieces and if 
a price list from the foreign seller is avai lable that contains different prices 
according to the quantities then  an adjustment can be reached by referring to 
that price list, through applying an ap propriate value according to the imported 
goods being valued. This does not require that a transaction of similar goods 
had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In absence of 
such an objective measure, however, the determination of a customs value 
under the provisions of the similar goods transaction value is not appropriate. 
 5.  If, in the application of this Article, more than one transaction value 
for similar goods is found, which were sold at same commercial level, in same 
quantity and in same sale circumstances (in mode of payment i.e., cash or 
credit; condition of goods at the time of sale i.e., at first line of production, stocks as backlog of the line of produc tion, factory clearance, or end-of-the-
season sales, etc.), then the lowest of such values shall be used.  
VI.1 1.  If a number of units of the same imported goods, or of identical or 
similar goods, have been sold in differe nt quantities, the unit price to be used 
will be the price at which the greater number of the units is sold. 
Example 1:  Goods are sold based on a price list which grants favourable 
unit prices for purchases made in larger quantities:  
Sale quantity 
 Unit 
price 
(SR) 
 Number of sales 
 Total 
quantity 
sold at 
each price 
 
1-10 units 100 10 sales of 5 units 
5 sales of 3 units 
 65 
 
11-25 units 95 5 sales of 11 units 55 
 
Over 25 units 90 1 sale of 30 units 
1 sale of 50 units 
 80 
 
 
The greatest number of un its sold at a price in this example is 80 
units sold at a price of SR90. Therefore, the unit price in the 
greatest aggregate quantity is SR90. 
 Example 2 : Two sales to unrelated persons occur. In the first sale, 500 units are 
sold at a price of SR95 each; in the seco nd sale, 400 units are sold at a price of 
SR90 each. 
The greatest number of units sold at a price in this example is 500 units sold at 
a particular price. Therefor e, the unit price in the greatest aggregate quantity is 
SR95. 
 G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
 Example 3: Various quantities are sold to unrelated persons at various prices: 
• Sales:  
 
Sale quantity (unit)  Unit price (SR) 
 
40 units  100 
 
30 90 
15 100 
50 95 
25 105 
35 90 
5 100 
 
• Totals  
 
Sale quantity sold 
(unit Unit price (SR) 
65 units 90 
50 95 
60 100 
105 25 
 
In this example, the greates t number of units sold at a particular price is 65; 
therefore, the unit price in the greatest aggregate quantity is SR90. 
 
VI.1.a 1.  In case the goods being valued are owned by the seller or exporter 
outside the GCC States, and are sold on the basis of commission, that which is usually paid or agreed to be paid by the seller to the importer for costs borne by 
him for selling the goods locally, shall be deducted. 
2.  If the goods being valued, however are sold to an importer who works for his own account, then “the profits and general expenses”, that is usually 
added by the importer to the selling price in the local market, shall be deducted, 
unless inconsistent with the amount of profit usually added by the importer to the selling price in the local market and general expenses usually added to sales 
of goods being valued, of the same class or kind, in the GCC States, imported 
from the same or other countries. Dedu ction of such usual amount will be based 
on relevant information other than supplied by or on behalf of the importer. 
3.  The profit and general expenses should be taken as a whole. A figure 
can be inconsistent with similar figure of the same industry. As long as the total of both is consistent with the total of usual profit and general expenses, it 
should be used. This deductible figure should be determined on the basis of the 
information supplied by or on behalf of the importer. The general expenses 
shall include direct and indirect cost s of marketing the particular goods. 
 4.  “Goods of same class and kind” are goods falling within a group or 
range of goods produced by a particular industry or industrial sector, including but not limited to, identical goods and similar goods, whether imported from 
the same country of production or exportation of the goods being valued, or 
from another country. Whether certain goo ds are “of same class or kind” must 
be determined on a case-by-case ba sis by reference to circumstances 
surrounding the goods. 
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  Article Interpretative Notes 
VI.3 
 1. There might be instances where, although the identity of the of the imported 
goods is lost, the value added by processing can be determined accurately without unreasonable difficulty, provid ed that it is based on the basis of 
objective and quantifiable data related to cost of such work. Acceptable 
industry formula, recipes, methods of construction, and other industrial 
practices would form the basis of the calculations. 
2. On the other hand, there can also be instances where the imported goods 
maintain their identity but form such a minor element in the goods sold in the 
country of importation that the use of this valuation method would be 
unjustified. In view of the above, eac h situation of this type should be 
considered on case-by-case basis. 
VII.1 
 As a general rule, customs value under this Article will be determined on the 
basis of information readily available in the country of importation. In order to 
apply the computed value method falling under Clause VII, it may be necessary to examine the costs of producing the goods being valued and other 
information, which is to be obtained from outside the GCC States. The use of 
computed value method will generally be limited to those cases where the buyer and seller are related, and the producer is prepared to supply to the 
customs the necessary costings, and to provide facilities for any subsequent 
verification.  
VII.1.a  1.  The “cost or value” referred to in this paragraph is to be determined on 
the basis of information relating to the production of the goods being valued, 
supplied by or on behalf of the producer and where it is consistent with 
generally accepted accounting practices in  the country of the exporter. Where 
such information is available from another source, the customs shall inform the 
importer, if he so requests, of the source of such information, the data used, 
duly observing confidentiality according to Clause I.3 of this Article. 
2.  The cost or value mentioned in this Clause includes the following: 
 (a)  cost of elements specified in Clause IV.B.1.(ii) and (iii). of 
  this Article; and 
 (b)  cost of elements specified in Clause IV.B.1.(iv). of this 
  Article apportioned as appropriate under the provisions of   Clause IV.B.1.iv. of this Interpretative Annex. Taking into 
  account that the costs of the elements specified in Clause 
  IV.B.1.iv.(d) undertaken in th e GCC States shall be included 
  only to the extent that the el ements are borne by the producer 
  for obtaining such elements. No cost or value of elements 
  referred to in this Clause shal l in any case be counted twice. 
VII.1.b 1.  The amount for profit and general expenses should be taken as a 
whole. If the producer’s profit figure is low and general expenses are high, 
those figures taken together may be cons istent with those usually reflected in 
sales of imported goods of the same class or kind. 2.  If the producer’s figures for the profit and general expenses are 
inconsistent with those usually reflected in sales of goods of the same class or 
kind as the goods being valued, which are made by the producer in the country of exportation, for export to the GCC countries, in that case, the amount for 
profit and general expenses may be based on objective data, according to 
Clause II..11 of this Article, other than that supplied by or on behalf of the 
producer of goods. 
3.  The general expenses mentioned in Clause VII.1.b of this Article shall cover all direct or indirect costs of production and sale of the goods for export, 
not included in Clause VII.1.a of this Article. G/VAL/N/1/SAU/1 
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  Article Interpretative Notes 
 4.  While determining usual profit and general expenses according to the 
provisions of Clause VII.1.b of this Article, the narrowest group or range of the goods of same class or kind will be examined including sales of identical or 
similar goods from same country of production of the goods being valued, 
which are sold for export to the GCC St ates, including the goods being valued. 
Whether certain goods are of the same class or kind as other goods, must be 
determined on a case-by-case basis wi th reference to the circumstances 
involved. 
VIII.(a) This Clause does not provide for a specific method of valuation. Rather, it 
requires that the customs value shall be determined according to the following: 
1.  using reasonable means or methods; 2.  should be consistent with the principles and general provisions of the 
 Customs Valuation Agreement (CVA), and Article VII of the GATT 
 1994; and 3.  be based on the data available in the country of importation. 
 
1.  Value determination using reasonable methods:
 
 
The customs value under provisions of this Clause should, to the greatest extent 
possible, be based on the customs values determination methods already mentioned in Clauses IV to VII with reasonable flexibility in the application in 
conformity with the purposes and provisions of the Customs Valuation 
Agreement. If the customs value could not determined using such methods, the customs value may be determined using other logical methods provided that:  
1.  such methods are not prohibited under Clause VIII.B; and 
2.  such methods are consistent with general principles and provisions of 
the CVA. 
 Example : A consignment containing an equipm ent leased for specified period, 
for instance, of three years (that is the supposed life of the equipment) against a monthly rent of SR2,000, is imported. No identical or similar equipment was 
previously imported. The customs value of such equipment could not be 
determined according to the methods specified in Clauses IV to VII.  In order to determine the customs value of the equipment, it should be taken 
into account that there is no sale to apply to the transaction value; no identical 
or similar equipment was previously imported; the equipment is not resold in the GCC States; and no information on production cost of the equipment is 
available, therefore the customs valu e can not be determined according to 
Clauses IV to VII even if in its flex ible form. However, there is reasonable 
method that can be applied according to Clause VIII, i.e., using total rent 
representing the supposed life of the equipment (36 months x 2,000 = 
SR72,000) as the customs value. 
 2.  General principles of the Customs Valuation Agreement:  
 a. Reliance to the greatest extent possible on the transaction value of 
the imported goods; 
 b. Uniform valuation system;  c. Simple and equitable criteria; 
 d. Clear and neutral systems; 
 e. Consistent with commercial practices. 
3.  Data available in the country of importation
: 
In case of availability of data from a foreign source, utilization of such data for purposes of determining customs value under Clause VIII of this Article is not 
precluded. So long as correct and accurate  information, however is available in 
the GCC States, it should be used.  
 
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