1. The Council: The Cooperation Council for the Arab States of the Gulf.
2. The Member States of the Council: The member countries of the Cooperation Council.
3. The State: One of the member states of the Council.
4. The Industrial Cooperation Committee: The ministerial committee responsible for industrial affairs in the member states of the Council.
5. The Financial and Economic Cooperation Committee: The ministerial committee responsible for financial affairs in the member states of the Council.
6. The Competent Minister: The Minister of Industry or the minister responsible for granting customs exemptions.
7. The Competent Authority: The authority responsible for granting industrial licenses.
8. The Customs Duty "Fees": The amounts collected on goods in accordance with the "Unified" Customs Law of the member states of the Council.
9. The Industrial Facility: Any facility whose primary purpose is to convert raw materials into finished products or semi-finished products into finished products, including processes of mixing, separation, shaping, assembly, packaging, and wrapping, provided that some of these operations are carried out mechanically, as well as knowledge-based and environmental industries.

All industrial establishments holding an industrial license under the "Unified Industrial Regulation System of the Council" are granted an exemption from customs duties on industrial inputs as stipulated in Article (3) of these regulations.

• 1. The exemption from customs duties on machinery, equipment, spare parts, raw materials, semi-finished goods, finished products, and packaging materials necessary directly for industrial production shall be granted for the entire duration of the industrial establishment's operation.

• 2. Finished goods necessary for industrial production shall be exempted according to the actual production capacity, provided that it does not exceed the licensed capacity from customs duties under the following conditions:

  • A- The finished goods must include the main components used in completing the manufacturing of the final product.

  • B- The classification of the finished goods must comply with the tariff item of the Harmonized System Code applicable in the Customs Union of the Gulf Cooperation Council according to the international commodity classification issued by the World Customs Organization.

  • C- The granting authority for the exemption must visit the industrial establishment that has applied for the exemption of finished goods before the exemption is approved, and a report must be prepared that includes the products actually produced and their quantities, as well as the requirement for the finished goods.

• 1. Inputs for industry are exempted according to the following procedures:

  • A- The industrial establishment shall submit to the competent authority a "Request for Exemption from Customs Duties" according to Form (A) based on the materials listed in Article (3) of these regulations and in accordance with the coordinated system and the quantities required periodically.

  • B- All data contained in Form (A) must be completed in Arabic, except for the list of imports required to be exempted from customs duties, which may be completed in Arabic or English or both together.

  • C- The competent Minister or his delegate shall approve the request for customs exemption from the customs duties specified in paragraph (A), based on which the industrial establishment obtains the exemption from customs duties for its imports and the necessary quantities directly for industrial production.

  • D- The Customs Administration of the state shall enter the materials exempted from customs duties based on the approval of the competent Minister or his delegate on the request for exemption from customs duties.

  • E- The list of spare parts, raw materials, semi-finished products, and packaging materials specified in Article (3) of these regulations shall be renewed periodically.

• 2. Industrial establishments are exempt from customs duties in the case of receiving shipments exempt from customs duties from a port other than the port of the granting state according to the following procedures:

  • A. The industrial establishment shall submit to the competent authority a "Request for Customs Exemption for Imports of an Industrial Establishment" within a sufficient period to grant the exemption on Form (B), which includes the name of the establishment, license number, industrial registration, in addition to the bill of lading number, type of product, quantity, country of origin, invoice number, value, and supporting documents.

  • B. Form (B) shall be submitted after the approval of the competent authority to the customs port through which the exempt shipments will arrive, which is not the port of the granting state, to complete the procedures for exempting the imports of the industrial establishment.

  • C. Customs ports in member states that imported the goods through them shall facilitate the entry of imports for which a customs exemption certificate has been issued by the competent authority in any of the Council states.

Subject to the provisions of paragraph (1) of Article (4) of these regulations, the industrial establishment may increase the quantity of each item of the exempt materials specified in Article (3) of these regulations that are subject to exemption from customs duties by submitting a customs exemption request to the competent authority using Form (A) in accordance with the licensed production capacity.

Subject to the provisions of paragraph (1) of Article (4) of these regulations, the industrial establishment may amend or add new items from the exempt materials specified in Article (3) of these regulations that are covered by the exemption from customs duties by submitting a customs exemption request to the competent authority using Form (A).

• 1. The owner of the industrial establishment is obligated in matters related to the exemption from customs duties as follows:

  • A- To maintain a record for registering machines, equipment, and spare parts according to Form (C) and for registering raw materials, semi-finished materials, and packaging materials according to Form (D), provided that this record includes all the data listed in the two forms.

  • B- The owner of the industrial establishment that has obtained the customs exemption is required to submit the balance sheet and final accounts (trading and profit and loss) for the previous financial year, certified by an auditor registered in the country where the industrial establishment is located, annually to the competent authority.

  • C. Not to use the machines, equipment, spare parts, raw materials, semi-finished materials, and packaging materials for purposes other than those for which the customs exemption was granted, outside the industrial establishment that was included in the exemption.
     

1. The Financial and Economic Cooperation Committee, in coordination with the Industrial Cooperation Committee, has the right to interpret and amend these regulations.
2. These regulations shall be evaluated three years after their adoption by the Financial and Economic Cooperation Committee or whenever necessary.
3. Authorized personnel from the competent authority are permitted to conduct field inspection visits to ensure that the industrial facility complies with the provisions of these regulations.
4. The provisions of the "Unified Industrial Regulation System" Law of the Council shall apply in the event that the industrial facility violates the provisions of these regulations.

1. Form (A) Application for Exemption from Customs "Duties" Tax, Appendix (1).
2. Form (B) Certificate of Customs Exemption for Imports of Industrial Establishments, Appendix (2).
3. Form (C) Register of Machinery, Equipment, and Spare Parts, Appendix (3).
4. Form (D) Register of Raw Materials, Semi-Finished Materials, and Packaging Materials, Appendix (4).

To view the appurtenances: click here.