WORLD TRADE  
ORGANIZATION  G/VAL/N/1/KWT/1 
7 December 2007 
 
 (07-5409) 
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 
 
KUWAIT 
 
  The following communication, dated 16 November 2007, is being circulated at the request of 
the delegation of Kuwait. 
_______________ 
 
  The Permanent Mission of the State of Ku wait has the honour to notify the Committee on 
Customs Valuation, pursuant to Article 22.2 of th e Agreement on Implementation of Article VII of 
the GATT 1994, of the following decrees
1: 
 
1. Amiri decree No. 10/2003 on issuing the unified Customs Law of the GCC states, 
(Articles 26-29 and 61-62 as well as explanator y notes, sections IV and VI) in order to 
implement Articles 11, 12 and 13 of the Agreement on Customs Valuation. 
 2. Amiri decree No. 200/2003 on issuing the Rules of Implementation of the unified Customs 
Law of the GCC states, article (1) entitled "Value of Goods for Customs Purposes". 
  Please note the following:  - This Law is identical to the Common Cu stoms Law of the GCC States, Rules of 
Implementation and the Explanatory Notes thereof (2003). 
 
- The implementation of the Agreement on Customs Valuation took place after the legislation 
of the GCC Common Custom Law by the Amir i decree (No. 10/2003) on September 2003. 
 - Articles concerning Implementation of the Ag reement on Customs Valuation are: (26-29), 
(61-62) and Article (1) of the Rules of Implementation. 
 - Kuwait General Administration of Customs has implemented Articles 11, 12 and 13 of the 
Agreement on Customs Valuation as follows: 
 
 (a) Article 11
 
   This Article is implemented according to Article (61) "Adjustment of the value" of 
the Common Customs Law of the GCC States through the establishment of an independent committee which includes representatives of the Kuwait Chamber of 
                                                     
 
1  In English only. G/VAL/N/1/KWT/1 
Page 2  
 
  Commerce and Industry to settle any va lue disputes between the Customs and 
Importers. 
  Moreover, Article (61) guarantees importe rs' right to appeal before the valuation 
committee, and to appeal to court against the committee's decisions. 
 
 (b) Article 12
 
   This Article is implemented through the publication of all trade-related laws, 
regulations and administrative ru lings of general application. 
 
 (c) Article 13
 
   Kuwait General Administration of  Cust oms has implemented this Article through 
Article (62 b) of the GCC Common Customs Law which allows the release of goods 
in dispute, if not prohibited, after collecting a deposit in an amount equivalent to the 
sum of the customs duties determined by the customs office.  G/VAL/N/1/KWT/1 
 Page 3 
 
 
  STATE OF KUWAIT  
Law No. 10/2003 on Issuing the  
Unified Customs Law of GCC States  
 
- After reviewing  the Constitution,  
- Based on Law No. 16/1960 on the issuance of th e Criminal Law  and its amending Codes ,  
- With regard  to the Law No.17/1960 on the i ssuance of Procedural and Criminal Procedure 
law and its amending Codes,  
- According to the Amiri decree On Law No. 13/1980 concerning Customs,  - Pursuant to the  Law No. 44/1981 on the Approval of AGCC Statute,  - Based on Law No. 26/1995 concerning Free Zones, - With regard to Law No. 56/1996 on the issuance of the Industry law, 
- Pursuant to Law No. 5/2003 on the Approval of the  GCC Unified Economic Agreement, 
- According to AGCC Supreme Council’s decision taken at its 22nd Session held in Muskat, 
Oman between 30
th - 31st December 2001, regarding the Adoption of AGCC Unified Customs 
Law and its Explanatory Note, 
- And based on AGCC Supreme Council’s decision taken at its 23rd Session held in Doha, 
Qatar between 21st - 22nd December 2002, on declaring the Foundation of AGCC Customs 
Union. 
  Therefore, the National Assembly has approve d the following Law, as we thereafter endorse 
and issue:   
Article 1
 
 
The Unified Customs Law of GCC States by its attached Text has been approved. 
 
Article 2  
 
All goods that enter Kuwait’s territory shall su bmit to the levied customs duties and other 
charges at the rate of 5% of its value, in additi on to CIF and other expenses set through the concerned 
Minister’s decision until the port of arrival.   
Some imported goods may be exempted from the levied customs duties through an Exclusion 
Amiri Decree.  In addition, it is possible to lay down other categories of customs duties by an Amiri 
Decree that must not exceed the one  levied in the AGCC States.  
 
Article 3
 
 
After three months since the implementation of AGCC Unified Tariff and according to the 
measures agreed upon between the AGCC States and by an Amiri Decree, the Industrial 
Establishments shall be exempted from the levied  customs duties on all their imports of machines, 
equipments, spare parts, primary and semi-manufactured raw materials, packing and packaging materials necessary for commencing the industrial production.   
During the mentioned period of three months, the Industrial Establishments exemptions 
provided for in the provisions of Industry La w No. 56/1996 provisions shall be effective. 
 
Article 4
 
 
The Amiri Decree on Law No. 13/1980 referred to  shall be cancelled, and the attached 
Unified Customs Law of GCC States shall be in force. 
 G/VAL/N/1/KWT/1 
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  Moreover, and without prejudice to the provisi ons of the AGCC Unified Customs Law and its 
Rules of Implementation, and until the issuance of  the Resolution applying it, the operated rules and 
regulations before it comes into force shall be effective.   
Article 5
 
 
The Prime Minister and all Ministers, each in his field, must implement this Law, and shall be 
effective since the date of applying its Rules of Implementation.  
The Amir of Kuwait 
 
H.H. Sheikh Jaber Al-Ahmad Al-Subah 
   
Issued at Bayan Palace, 
On 22
nd April  G/VAL/N/1/KWT/1 
 Page 5 
 
 
   
 
Part of Unified Customs Regulation "Law" 
of the GCC States 
and 
Explanatory Notes Thereof 
    
 
    
 
     
 
    
 
Note
:  Enclose article From  26-29 and 61-62 of the Unified Customs Law of GCC States in order to 
implement Articles 11, 12, and 13 of the CUSTOM VALUATION AGREEMENT of the WTO G/VAL/N/1/KWT/1 
Page 6  
 
  Section IV
 
 
Distinguishing Elements of the Goods  
 
(Origin, Value, type)  
 
 
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 th e 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 Unified Customs Tariff of the member States of the Council. 
 
  G/VAL/N/1/KWT/1 
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  SECTION VI  
 
Stages of customs clearance  
Chapter IV: Adjustment of the value  
 
Article 61  
 
 A valuation committee composed of officers fro m the administration shall be established by a 
resolution of the director general to settle the disputes arising between the customs office and the 
persons concerned about the value of the imported goods. Such committee may seek 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 the 
registration of the customs declaration or from the date of the valuation notice sent to him by 
registered mail. Decisions of this committee shall be taken by majority and shall be effective once 
approved by the director general. The importer sha ll 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 competent customs officer and the owner of the goods 
about the value of the goods due to discrepancy in  description, origin or any other reason, the 
matter shall be referred to the director 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 general for settlement  of dispute or for referral to the valuation 
committee. 
 (b)  The director may release the goods in dispute , if not prohibited, after collecting a deposit in 
an amount equivalent to the sum of the custom s duties and taxes determined by the customs 
office. Samples of the goods shall be temporar ily 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. 
  
Explanatory Notes
 
To the Unified Customs Regulation “Law”  
Of the Cooperation Council for the Arab States of the Gulf  
 
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 frame work of the international and regional economic 
organizations. The provision of Article (26) of th e regulation “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 cu stoms purposes is determined according to the 
provisions and principles prescribed in detail in the Rules of Implementation of the Regulation “Law”. Article (27) specifies the documents to be attached  with the customs declaration and the nature of 
these documents and the treatment of the cases where the importer fails to submit such documents to G/VAL/N/1/KWT/1 
Page 8  
 
  customs, whereas Article (28) provides that the value of the exported goods shall be their value 
prevailing at the time of registering the customs d eclaration plus all charges incurred until arrival of 
the goods to the customs office.  Article (29) provi des that the goods that are not mentioned in the 
customs tariff nomenclature and the explanatory not es thereof shall be classified according to the 
classification advice issued by the World Customs Organization which the approved body in respect 
to the international classification.  However, goods  falling under national subheadings of the customs 
tariff beyond six digits are classified within the framework of the GCC as the unified Customs Tariff 
for the Classification and Coding of Commodities is in line with the Harmonized System in force. 
  G/VAL/N/1/KWT/1 
 Page 9 
 
 
  Section (VI)  
 
Stages of the Customs Clearance  
 
 This Section elucidates in detail the stag es of the customs clearance beginning with the 
lodgment of the customs declaration according to th e forms approved within the frame of the Council 
and that the director general is empowered to speci fy the documents to be attached with the customs 
declarations and the details to be contained th erein and the clearance cases without production of such 
documents gains cash o bank guarantees or undertakings  according to the conditions prescribed by the 
director general.  The regulation “Law” permits  the owners of goods or their representatives to 
examine heir goods prior to the lodgment of the cu stoms declaration and to have access to the customs 
declarations and documents to which no other pe rsons can have access except the competent judicial 
and official authorities. 
 
 Article (61) discusses the formation of valua tion 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 customs office and the importers concerning the valuation of the imported goods and the committee may seek assistance of experts according to the 
measures and procedures provided for in Article (26) of this regulation "Law" without prejudice of the 
importer’s right to appeal before the court. 
 
 Article (62) deals with the disputes between the customs officer and the owner of the goods 
concerning the valuation of the goods and provides that  the dispute shall be referred to the director 
general for settlement or to the Valuation Settlement  Committee.  This Article also provides for the 
right of the director to release the goods against the guarantees provided for in this Article and the 
conditions thereof. G/VAL/N/1/KWT/1 
Page 10  
 
   
STATE OF KUWAIT
 
 
Amiri Decree No. 200/2003 Regarding the Issuance of  
Rules of Implementation to Law No. 10/2003 on  
Unified Customs Law of GCC Member States  
 
   
- After reviewing  the Constitution,  
- Based on  law No. 5/2003 on approving  the Unified Economic Agreement  between GCC 
Member States,  
- With regard  to the law No.10/2003 on issu ing the Unified Customs Law of GCC Member 
States,  
- According to AGCC Supreme C ouncil’s decision taken at its 22
nd Session held in Muskat, 
Oman between 30th - 31st December 2001, on approving the Rules of Implementation to 
Unified Customs Law of GCC Member States, 
- Pursuant to the presentation of the Minister of Finance,  - And after the approval of Council of Ministers,   
 We lay down the following: 
 
Article 1
 
 
 The rules of implementation of law No. 10/2003 regarding issuing the unified customs law of 
GCC Member States has be approved in its enclosed text form. 
 
Article 2  
 
 All texts that contradict the provisions  of this Decree shall be cancelled.  
 
Article 3  
 
 Ministers - everyone in his field – must implement this Decree. It shall be published in the 
official gazette and enter into force from 1st September 2003. 
 
The Amir of Kuwait 
Jaber Al- Ahamad Al- Sabah 
 
Prime Minister  
Sabah Al-Ahmad al-Jaber Al-Sabah   
 
                  Minister of Finance  
                                      Mahmood Abdulkhaliq Al-Noory 
Issued at Bayan Palace, 
On 24th August 2003  G/VAL/N/1/KWT/1 
 Page 11 
 
 
   
 
Part of Rules of Implementation 
of the Unified Customs Regulation "Law" of the 
Cooperation Council of the Arab States of the Gulf 
 
(CUSTOM VALUATION) 
 
  
 
    
 
     
 
 Note
:  Enclose rules of implementation of Articles From  26-29 and 61-62 of the Unified Customs 
Law of GCC States in order to implement Articles 11, 12, and 13 of the CUSTOM VALUATION AGREEMENT of the WTO. 
 
 G/VAL/N/1/KWT/1 
Page 12  
 
   
Rules of Implementation
 
of the Unified Customs Regulation "Law"   
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 th e Unified Customs Regulation "Law" of the GCC 
States, the value of goods for customs purposes shall be according to the following rules and 
principles: 
Article (1)  
 
 General Provisions: 
 
1.  The importer may clear his goods after payment of the customs taxes "duties" under cash deposit, if the final determina tion 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 inform ation provided on confidential basis for valuation 
purposes shall be treated as top confidential and may not be disclosed unless within the limit required for court procedures.  5.  Freight, insurance and other relevant charg es 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/de ductions are made between the buyer and seller after 
the date of importation of the goods. Also, no cred it balances pertaining to previous consignments 
shall be considered when determining th e 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 fo r customs purposes is the transaction value of the 
imported goods.   G/VAL/N/1/KWT/1 
 Page 13 
 
 
  2.  If the customs value can not be determined  according to the first basis above, it shall be 
determined by the sequential applicati on of the following alternative methods: 
 
(a)  Transaction value of identical goods (b)  Transaction value of similar goods 
(c)  Deductive value 
(d)  Computed value 
 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.  G/VAL/N/1/KWT/1 
Page 14  
 
  First Method: Transaction Value of the Goods Being Valued
 
 
 Transaction value is the price actually paid or  to be paid against the sale of the goods for 
export to GCC States, mutatis mutandis.  
I.  Conditions of the transaction value
 
 
 The transaction must satisfy the following conditions: 
 
1.  That there are no restrictions applicable to  the disposition or use of the imported goods by the 
buyer, other than the restrictions imposed by law in  the GCC States, or those which specify the 
geographical area within which the goods may be reso ld, or those which do not substantially affect 
the value of the goods;  2.  The sales price is not subject to any condition 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 buyer which  affects the 
transaction value  according to the provisions of paragra ph (23) of Article (2) of this regulation "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 th ey 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 treat ed 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 sim ilar items used in production of the imported 
goods, 
(b)  Tools, dies, moulds and similar ite ms used in production of the imported goods, 
(c)  Materials consumed in pr oduction of the imported goods, and 
(d)  Engineering works, designs, studies, graphs, drawings and similar items necessary 
for production of the imported goods and done  in a country other than the GCC 
States. 
 3.  License and royalty fees relating to the imported goods under assessment that must be paid 
by the importer (buyer), directly or indirectly, as a condition of sale of the goods being valued if not 
included in the price actually paid or payable, and  4.  Value of any part of the proceeds from an y subsequent sale, disposition or use of the 
imported goods, payable to the seller directly or indirectly.  G/VAL/N/1/KWT/1 
 Page 15 
 
 
  III. The amounts related to the items ment ioned 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 for export to the GCC States and exported at or 
about the same time as the export of the goods being valued.  At the time of its application, the transaction value of identical goods in a sale at the same commercial level and quantity shall be used.   
  In case such a transaction is not found, the tr ansaction value of identical goods sold at a 
different commercial level or different quantity, adju sted for the difference, shall be used.  In case 
such a transaction is not found, the transaction value of identical goods sold at a different commercial 
level or different quantity adjusted  for the difference shall be used. 
  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 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 similar goods in a sale at the sam e commercial level and quantity shall be used.   
  In case such a transaction is not found, the transaction value of similar goods sold at a different commercial level or different quantity, adjusted for the difference, shall be used. 
 
 When there is more than one transaction value of similar goods, the lowest value will be used 
as the customs value of the imported goods.  
Fourth Method: Deductive Value
 
 
 The customs value will be determined accordi ng to the unit price at which  the goods being 
were sold, or identical goods, or similar goods (in the same condition as  imported), in the earliest sale 
in the Kingdom, in the local market, at the greatest aggregate (wholesale) quantity at or about the time 
the goods being valued are imported but before th e elapse of 90 days from importation of the goods 
being valued, to non-related pers ons, provided that the following costs and expenses, incurred after 
arrival of the goods at the port of destinati on  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 importe d goods of the same class or kind sold in the 
Kingdom;  2.   Local transportation and insurance costs and other related costs; 
 
3.   Customs taxes (duties).   If the imported goods, identical goods or similar goods,  are not sold in the local market in the same 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 processing 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.  
 G/VAL/N/1/KWT/1 
Page 16  
 
  Fifth Method: Computed Value
 
 
 Computed value is the sum of the various cost s 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 equa l 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. 
 
__________