With the help of Allah the Almighty, We, Fahd bin Abdulaziz Al Saud, King of the Kingdom of Saudi Arabia, Based on Article 70 of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH, And based on Article 20 of the Council of Ministers System, issued by Royal Order No. (A/13) dated 3/3/1414 AH, And based on Articles (17) and (18) of the Shura Council System, issued by Royal Order No. (A/91) dated 27/8/1412 AH, And after reviewing the decision of the Shura Council No. (43/44) dated 12/10/1423 AH, And after reviewing the decision of the Council of Ministers No. (241) dated 26/10/1423 AH, Hereby decree:
Firstly: Approval of the Unified Customs Law for the Gulf Cooperation Council (GCC) States and its explanatory memorandum in the attached format.
Secondly: Continuation of the application of the provisions related to the customs committees stipulated in the Customs Law issued by Royal Decree No. (425) dated 5/3/1372 AH and its implementing regulations. These committees undertake the tasks specified in Articles (162, 163) of the Unified Customs Law until they are reconstituted in light of the provisions related to them in the said law.
Thirdly: His Highness the Deputy Prime Minister and the Ministers, each in their respective area of responsibility, shall implement our decree.
Fahd bin Abdulaziz.
After reviewing the transaction received from the Office of the Prime Minister with reference number 5/b/40643 and dated 19/10/1423 AH, which includes a letter from His Excellency the Minister of Finance and National Economy with reference number 184/14451 and dated 29/11/1422 AH, regarding the request for issuing the regulatory instrument to implement the decision of the Supreme Council of the Gulf Cooperation Council adopted at its 22nd session held in the Sultanate of Oman on 15-16/10/1422 AH concerning the unified customs law for the GCC countries, its implementing regulations, and explanatory memorandum, And after reviewing the Unified Customs Law for the GCC countries, its implementing regulations, and explanatory memorandum, And after reviewing the Customs Law issued by Royal Decree No. 425 and dated 5/3/1372 AH, And after reviewing the minutes prepared by the Board of Experts with reference numbers 243 and dated 22/6/1423 AH, and 417 and dated 26/10/1423 AH, And after considering the decision of the Shura Council with reference number 43/44 and dated 12/10/1423 AH, And after reviewing the recommendation of the General Committee of the Cabinet with reference number 490 and dated 26/10/1423 AH.
Firstly: Approval of the unified “Customs Law” system for the Gulf Cooperation Council (GCC) countries, along with its explanatory memorandum in the accompanying format. Secondly: The continuation of the implementation of the provisions related to the customs committees in the customs system issued by Royal Decree No. (425) dated 5/3/1372 H and its executive regulations. These committees are responsible for performing the tasks stipulated in Articles (162, 163) of the unified customs system until their reorganization in light of the provisions related to them in the said system. A royal decree has been prepared in this regard, and its wording is attached herewith. Secondly: The Minister of Finance and National Economy shall issue the executive regulations for the system.
Prime Minister.
This regulation (law) is called “The Common Customs Law for the Arab States of the Gulf (GCC Sates)”.
The following words and terms, wherever mentioned throughout this Regulation ” Law ” , its Explanatory Note and Rules of implementation, shall have the meanings hereby assigned for them, unless the context otherwise requires: 1. “the Council “means the Cooperation Council for the Arab States of the Gulf. 2. “the Minister “means the minister to whom the Custom Administration reports. 3. The “competent authority” means the authority to which the customs administration reports. 4. The “Director General “means the Director General of Customs. 5. The “Director “means the director of a Customs office. 6. “Administration “means the Customs Administration. 7. “Customs office “means the sector, designated by the Minister, at each seaport, airport, and 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. “Regulation I law “means the rules and provisions governing customs work, and any other supplementing or amending rules or provisions.9. “customs zone/territory” means that part of the lands or seas subject to the customs control and procedures set forth herein which is of two kinds: ـ
(i). Sea customs zone: Which includes that part of the sea located between the shores and the end boundary of the territorial waters. (ii) Land customs zone: which covers the 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. “Customs line “means that line conforming to the political boundaries (borders) separating between the country and the adjacent countries and the seashores surrounding that country. 11.”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 “Customs taxes (duties) “means the amounts levied on the goods according to the provisions of this Law. 13.”Fees/charges “means the amounts collected by customs for the services rendered. 14.”Goods “means any natural, material, animal, agricultural, industrial or intellectual product. 15. “Type of goods “means the description mentioned in the customs tariff nomenclature. 16. “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 account. 17. “the imported goods being valued” means the goods being valued for customs purposes. 18. “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 definition from being regarded as identical.19. “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 interchangeable. 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.”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 favor or on its behalf. 21.”packing costs” means the cost of all packing and coverings ( excluding instruments of international traffic” whether for he labor or the materials used for placing the goods in packings suitable for shipping to the GCC Member States. 22. “Unit price at the greatest total quantity” means the unit price at which certain goods are sold to unrelated persons, at the first commercial level after importation at its state when imported or after further preparation or processing, if the importer so requested. 23. “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, controls or holds 5 per cent or more of the outstanding voting stock shares of both of them,
one of them directly or indirectly controls the other,
both of them are directly or indirectly controlled by a third person,
together they directly or indirectly control a third person,
members of the same family
24. “Valuation Agreement “means the Agreement on Implementation of Article VII of the GATT 1994.
25. “Origin of the goods” means the producing country, whether these goods are natural resources, agricultural crops or animal or industrial products.
26. ” Prohibited goods ” means any goods the import or export of which is prohibited under the provisions of this Regulation” Law” or any other regulation” law”.
27. “Restricted goods” means those goods the import or export of which is restricted under the provisions of this regulation “law ” or any other regulation ” law “.
28. “Source “means the country from which the goods are imported.
29. “Importer “means the natural or legal person importing the goods.
30. “Exporter “means the natural or legal person exporting the goods.
31.” Manifest ” means the document containing a full description of the goods carried on the various means of transport.
32. “Free zone “means a part of the state’s territories 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.”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. “Customs Declaration” means the goods declaration or the declaration submitted by the importer or his representative describing the elements identifying the declared goods and quantity thereof in details according to the provisions of this regulation ” law ” .
35. “Storehouse” means that building or place intended for the temporary storage of goods pending their withdrawal under one of the customs procedures whether such place/ building is directly administered by the Administration or by the official public agencies or the investors.
36. “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. “Carrier “means the owner of a means of transportation or his authorized representative (under an official authorization).
38. “Specified routes “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. “Treasury “means the public treasury.
40. “Customs Clearance” means documentation of the customs declarations for the imported, exported and transit goods according to the procedures provided for herein.
41. “Customs broker “means any legal or natural person licensed to undertake customs clearance for the account of the others.
42. “Representative of the customs broker” means any legal or natural person licensed to follow up customs procedures.
The provisions of this regulation “Law “apply to the sovereign territories and territorial waters of the country. Notwithstanding, free zones, totally or partially excluded from customs provisions, may be established in such territories.
Any goods crossing the customs line, at importation or exportation, shall be subject to the provisions of this regulation (law).
Customs circuits are created and cancelled by a decision made by the minister or the relevant authority.
Subject to the provisions of the articles relating to the inspection of goods, customs procedures shall only be conducted at the designated customs offices as set forth in article 7.
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.
When custom taxes “duties” are to be levied 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 lodgment of the customs declaration.
Goods taken out from the free zones and duty-free shops into the local markets are subject to the customs tariff effective at that time.
Smuggled goods (contrabands) or the like are subject to the customs tariff prevailing at the time of the detection or occurrence of smuggling, if applicable, whichever is higher.
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”
Damaged goods shall be subject to the customs tariff based on their value at the date of lodgment of the customs declaration.
A customs declaration shall be produced for any goods entering or leaving the country; the goods are then presented to the customs authorities at the nearest customs office.
Marine means of transport entering the country, irrespective of their load capacity, are prohibited from anchoring in any seaports (harbors) other than those designated for receiving them, excluding the case of sea emergency or force majeure wherein the shipmaster shall immediately notify nearest customs office or security point of such occurrence.
Vessels, loaded with prohibited or restricted goods or goods subject to high 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 promptly notify the nearest customs office or security point of such occurrence, excluding goods transported within the local seaports of the country whose customs procedures have been finalized.
Aircraft departing or arriving in the country may not take off or land at the airports where no customs offices exist unless in cases of force majeure 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 regulation (law) or resolution.
Land means of transport may not enter or leave the country through the areas where no customs offices exist.
By virtue of the provisions of this regulation (law) or any other regulation ( law ) or resolution, the Customs Administration prohibits admission, transit or exit of the prohibited goods or infringing goods as well as the entry, transit or exit of any restricted goods except under approval from the competent authorities in the country.
Imported goods are subject to the proof of origin according to the rules of origin adopted within the framework of the international and regional economic agreements in force.
The value for customs purposes shall be calculated according to the rules and principles set forth in the rules of implementation.
Acceptance of the value as a distinctive element of the goods requires the following:
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.
Goods not mentioned in the customs tariff (Harmonized System) and the explanatory notes are to be classified according to the classification advice given by the World Customs Organization. Goods that fall under national subheadings in the customs tariff are to be classified within the context of the Unified Customs
Tariff of the member States of the Council.
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.
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.
a) Cargo of the ships and all other marine means of transportation may be unloaded only within the customs zone at the port. Any shipment may be unloaded or transshipped only under supervision of the customs office. b) Unloading and transshipment shall be completed according to the conditions laid down by the director general.
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 owners, if so allowed, subject to provisions of Article 54 herein.
If a shortage in the number of unloaded pieces or packages or in the amount of bulk goods, compared to those mentioned in the manifest, is found out, the shipmaster or his representative shall justify such shortage and prove that it has occurred outside the marine customs zone. If documents cannot be submitted at once, a time period not exceeding six months may be given to submit the same against a guarantee ensuring the Administration’s rights.
a) A manifest of the total cargo of the land means 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 the manifest to the port immediately upon arrival therein to.the following information:
a) A manifest of the total cargo of the land means 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 the manifest to the port immediately upon arrival therein to.
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.
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.
The captain or his representative shall submit the manifest and the lists mentioned in Article 38 herein to the customs officers and shall deliver theses documents to the customs office upon arrival of the aircraft.
Goods may not be unloaded or dropped out of the aircraft during flight unless it is necessary to do so for safety purposes, provided that the customs office shall be notified of the same, subject to the provisions set forth in the other relevant regulations.
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, the Director General, may, in certain cases, make an exception to this condition.
Exporters of goods shall proceed with the goods to be exported to the competent customs office and declare them in detail. Carriers towards land borders may not overpass the customs offices. .
Goods are imported or exported by mail according to the provisions of this regulation (law) and subject the other applicable international postal agreements and local regulations in force.
a) Several sealed packages, assembled in any way whatsoever, may not be stated in the manifest as a single package. Containers, palettes and trailers are subject to the instructions given by the director general. b)Asingle consignment may not be split. However, for acceptable reasons, the director general may allow such splitting, provided that such splitting shall not result in a loss to the treasury.
Provisions of Articles 32, 33, and 34 herein shall apply to the land and air transport in respect to the unloading and transshipment of goods. Drivers, captains of aircraft and carriers shall be responsible for any shortage in case of land and air transport.
The Administration may use Electronic Data Interchange (EDI) in customs clearance.
When clearing any goods , even if exempted from customs taxes and duties, a detailed customs declaration, conforming to the forms approved within the framework of the GCC Member States, shall be submitted to the customs office containing all the information that enable application of the customs regulations and levying applicable customs taxes and duties and for statistical purposes.
Subject to the provisions of clause (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 guarantees or a written undertaking to submit such documents according to the stipulated conditions.
Contents of the customs declarations may not 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.
Owners of the goods or their representatives 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”.
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.
The designated customs officer shall examine the goods wholly or partially after registering the customs declarations according to the instructions of the director general.
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:
When the customs office suspects the presence of prohibited or illegal, it shall have the right to open the packages for inspection. Such opening 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 office 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 report of the findings of inspection shall be made.
Customs taxes “duties” shall be levied according to the contents of the customs declaration. Should physical inspection result in a difference (discrepancy) between the goods and what is stated in the customs declaration, customs taxes and duties 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 set forth herein.
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.
The customs office may re-inspect the goods under the provisions of Articles 51 – 56 herein.
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.
Avaluation committee composed ofofficers the administration from 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 appeal 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 shall be informed in writing of the decision taken by the committee concerning his complaint. Such decision shall be reasonable.
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 customs duties and taxes determined by the customs office. Samples of the goods shall be temporarily maintained for reference when necessary; such samples shall be returned to the owner of the goods unless they are consumed for inspection and analysis purposes.
(a) Goods shall be subject to customs taxes “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.
The customs officers assigned to collect customs duties and taxes shall execute an official receipt in the form prescribed by the minister or the competent authority. .
When a state of emergency is declared, precautions may betaken for removing the goods against special guarantees andconditions prescribed by the minister or the competent authority.
According to the rules and conditions prescribed by the director general, goods may be released prior to payment of the customs duties and taxes and after completion of the customs procedures against bank, monetary or documentary guarantees.
Goods may be admitted and transported to any other place within the country without payment of the customs taxes “duties” against submission of a bail or bank guarantee equivalent to the amount of the customs taxes “duties” payable according to the instructions given by the director general.
Bails, bank guarantees and securities shall be released under discharge certificates according to the conditions prescribed by the director general.
Subject to Article 67 herein and the provisions of the Unified Economic Agreement of the GCC Arab States, goods are allowed to transit the territories of the Council states according to the applicable provisions and regulations and the international agreements force.
Transit operations can be completed only at the authorized customs offices.
international 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 the 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.
In the event goods are transported from one customs 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.
The minister or the competent authority shall issue the necessary resolutions governing the suspension of the customs duties and taxes applicable to all other kinds of transit transport.
Warehouses inside or outside the customs office 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.
Goods may be deposited with the warehouses inside or outside the customs office without payment of customs duties and taxes according to the rules and cond.itions prescribed by the director general.
The Administration is entitled to supervise and control thea warehouses, managed by other agencies, under the provisionsa of this regulation” law”a and the other regulations (laws )in force.
Free zones are established by the legal instrument of each State; the rules and conditions thereof are laid down by a resolution of the minister or the competent authority.
(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 and duty-free shops , and taken out from them to outside the country or to other free zone and duty-free shops , without being subject to customs duties or taxes. (b ). Subject to the export restrictions and customs procedures applicable to re-exportation, the foreign goods re-exported from inside the country may be admitted into the free zones and duty-free shops. (c). Goods in the free zones and duty-free shops shall not be subject to any restriction in respect to the period they can remain therein. .
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 the director general and under the conditions and controls prescribed by him.
The following goods may not be admitted into the free zones and duty-free shops:
The customs office may carry out inspection works in the free zones and duty-free shops for detection of prohibited goods, and it may also review the documents and examine the goods when smuggling operations are being suspected.
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.
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.
Goods shall be withdrawn from the free zones and duty-free shops into the country according to the provisions of applicable regulations and as instructed by the director general.
Goods taken out from the free zones into the customs office are treated as foreign goods even if incorporating local raw materials or articles on which customs duties and taxes have been collected prior to their admission into the free zones.
National and foreign vessels shall be permitted to obtain all necessary marine equipment from the free zones. .
The administration of the free zones and duty-free shops shall be held responsible for all the offences committed by its officers and for the goods illegally taken out from them. All regulations and instructions relating to security, public health, smuggling and fraud control shall remain effective in these free zones and dutyfree shops.
The goods imported from the free zones and duty-free shops into or out of the country shall be treated as foreign goods. .
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 taxes according to the conditions set forth in the Rules of Implementation
The director general may grant temporary admission to the
following:
The items provided for herein shall be re-exported or deposited with the free zone, customs offices or warehouses during the temporary admission period prescribed by the Rules of Implementation.
Provisions of the Unified Economic Agreement of the GCC Member States and the other international applicable agreements governing the temporary admission of vehicles shall be observed according to the instructions prescribed by the Rules of Implementation
The materials and articles released by temporary admission may not be used, allocated or disposed of for purposes and objectives other than those for which they were imported and declared in the submitted declarations.
Any shortage develops in the goods released by temporary admission when taken out shall be subject to the customs duties “taxes” applicable at the time of admission.
The Rules of Implementation shall prescribe the conditions for practical application of the temporary admission and the guarantees to be produced.
The goods imported into the country, on which customs duties “taxes” were not collected, may be re-exported outside the country or to the free zone according to the procedures and guarantees prescribed by the Rules of Implementation
In certain cases, permission may be given for transshipment of the goods or withdrawal of the goods that were not placed into the customs warehouses, from the wharves to the ships under the conditions prescribed by the director general.
Customs duties “taxes” collected on the foreign goods shall be totally or partially refunded at re-exportation according to the practices and conditions set forth by the Rules of Implementation.
The goods agreed to be exempted from customs duties and taxes in the unified customs tariff of the GCC Member States shall be exempted from customs duties and taxes.
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 international agreements , laws and orders in force.
a) The goods exempted under Article (99) herein 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 levied 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:
The right of exemption for the individuals benefiting from it under Article (99) herein shall begin from the date of commencing their jobs at their official places of work in the country.
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 resolution of the Council of Ministers or the authorized authority in each State.
(a). To be exempted from customs taxes” duties” 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 “duties” 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 prescribed by the Rules of Implementation.
Imports of the Philanthropic Societies “Charities” shall be exempted from customs taxes “duties” according to the conditions and controls prescribed by the Rules of Implementation.
The following goods shall be exempted from customs taxes and duties:
(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 director general shall settle such dispute. .
Declaration of the goods at the customs office and the completion of their customs procedures, whether for importation, exportation or transit, shall be accepted from
The director general may issue the directions concerning the
following:
Subject to the provision of Article 140 herein and without prejudice to any civil or penal liability set forth herein or in any other regulation (law), the director general may impose on the customs broker and his representative any of the following penalties commensurable with the offence committed:
Civil and military authorities and internal security forces shall render to the customs officers any assistance for the performance of their duties once requested and the customs office shall cooperate with the other official entities.
Customs officers, whose nature of job so requires, are allowed to carry guns. Such officers are designated by a resolution of the minister or the competent authority. .
Any customs officer, whose services are terminated for any reason whatsoever, shall return the items in his custody to his immediate supervisor.
The incentives and allowances granted to the customs officers are determined by a decision of the minister or the competent authority based on a proposal form the director general according to the nature of their jobs. Such incentives and allowances shall be effective once approved by the competent authorities.
Prohibited goods, restricted goods and goods subject to higher customs taxes “duties” as well as the other goods designated by a decision of the director general shall be subject to the provisions of the customs zone. The Rules of Implementation shall specify the conditions of transportation within this zone and he necessary documents and procedures.
a). Customs officers shall combat smuggling. To this effect, they are authorized to inspect he goods and the means of transport and to search persons under the provisions herein and the other applicable regulations (laws). . b) The body search of women shall be conducted only by a female inspector. c). In the event there are adequate evidences of the presence of contraband and after obtaining permission from the competent authority, customs officers shall be entitled to inspect any house, store or shop according to the applicable regulations (laws). d). Customs officers shall not be held responsible for the damages resulting from the proper performance of their jobs.
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.
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.
The Administration may take appropriate actions for investigating (detecting) smuggling inside and outside the customs office according to the rules laid down by the minister or the competent authority.
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: :
Customs officers are entitled to have access to the papers, documents, records, correspondence, commercial contracts and instruments whatsoever , directly or indirectly relating to the customs operations, and to seize them when offences are found out which shall be done at the premises of the shipping and transportation companies and the natural and legal 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..
Customs officers may detain any person suspected to have committed or attempted to commit an offence or involved in committing any of the following offences:
When the offence/crime or smuggling is detected, a seizure report shall be promptly made by at least two customs officers and it may be made by one customs officer when necessary.
The seizure report shall contain the following details:
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 transport whatsoever (i.e. boats, vehicles and animals) excluding vessels, aircraft and public buses intended for the transport of passengers, unless they are specially designed for smuggling purposes.
Smuggled goods or those attempted to be smuggled such as narcotic drugs and the like shall be disposed of according to the regulations and laws in force in the State.
a. Customs officers executing the seizure report may seize the goods -subject of smuggling or offence- and the means of concealment and transport thereof and seize 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 taxes and fines and implementation of the final decisions and awards issued in this respect.
The director general may, when necessary and as a guarantee the public treasury’s rights, impose a customs security on the property of the tax (duties) payers or their partners. .
Arrest may be authorized only in the following cases:
The director general or his authorized representative may ask the competent authorities to prevent the offenders or the persons accused of smuggling 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 gods is sufficient to cover the claimed amounts.
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.
In the even of multiple offences, fines shall be imposed on each offence separately and the severest fine will be sufficient to if the offences are so correlated and cannot be separated.
Excluding 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 regulation (law):
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 customs taxes “duties, in whole or in part, or contrary to the provisions of prohibition or restriction provided for herein or in the other laws.
Excluding 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 regulation (law):
The penal responsibility for the smuggling offence requires the
presence of intention. Determination of this responsibility takes
into account the applicable penal provisions. The following are
deemed to be penally responsible in particular:
Without prejudice to any higher penalty provided for in other regulations applicable in the State, smuggling and like offences and the attempt to commit any of them shall be penalized as follows:
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 revert 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 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.
a) The director general may issue the necessary 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 made 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.
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 shall pay the fines within fifteen days from the date of notification.
The penalization orders Uudgments) 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 has the right to confirm, amend or cancel the penalization order.
The action of smuggling offences may be reconsidered only upon written request from the director general.
a). The director general or his authorized representative may- upon a written request by the person concerned- make a compromise (conciliation), in the smuggling issues, whether prior to the bringing of the action or when the action 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. b). The Manual (directory) of the conciliatory settlements is issued by a resolution of the minister or the competent authority.
Subject to the provisions of Article 150, the conciliatory settlement (Compromise) shall be as follows:
The action shall be relinquished when a reconcilement is reached.
a. The offence and the consequent civil liability 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.
Investors of private shops and premises wherein infringing or smuggled goods are kept shall be held responsible. Whereas investors and employees of public shops and premises as well as the owners, drivers and assistants of public means of transport shall be held responsible unless they prove their ignorance of the presence of such infringing or smuggled goods and that they have not a direct or indirect interest them.
Guarantors (sponsors) shall be responsible, within 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.
Customs brokers shall be fully responsible for the offences and smuggling offences they or their authorized employees commit in the customs declarations. 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.
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.
Heirs shall not be responsible for the payment- from their own shares of the heritage- of the fines payable by the dead offenders from unless they are partners in smuggling. The action (suit) shall be relinquished upon the death of the offender
Payable customs duties, taxes and fines shall be jointly paid by the offenders or the persons liable for smuggling according to the applicable practices 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.
First-instance customs courts may be established at both the Administration and the customs offices according to the legal instrument applicable in each state.
a). Judgments of the first instance customs 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 pronouncement of the judgment in presence of the litigant
The judgments passed by the court of appeal shall be final.
Collection and penalization orders and the judgments passed in the customs matters shall be carried out by all means of execution, after having the final status, on the movable and unmovable property of the offenders. The minister or the competent authority may have an order issued to attach a sufficient amount of such property to cover payment of the claimed amounts
a).The Administration has the right to sell the 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 considerable depreciation may be sold by authorization from the director general or his representative. 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 after deducting any payable duties or taxes.
Upon expiry of the period specified by the minister or the competent authority, the Administration may sell the goods placed in the customs warehouses, those existing in the yards or wharves or left out goods at the customs offices.
The Administration assumes no responsibility for any damage caused to the goods being sold under the provisions herein unless it is proved that the Administration had committed an obvious default in the procedures of the sale process.
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 shall be sold without the customs taxes “duties” and other taxes excluding the commission that shall be borne by the buyer during the sale procedures. .
b ). The balance remaining from the proceeds of selling the goods, the importation of which is permitted on the day of sale, after deducting the 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 otherwise 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, restricted or not allowed to be imported and those sold under a compromise, penal order or a court judgment (relating to smuggling), the remaining balance shall be distributed according to the provisions of article 172 herein after deducting the taxes ,duties and costs.
The share of the treasury from the proceeds (amounts) of the customs fines and the value of the seized or abandoned goods and means of transport are determined at 50% after deducting the customs duties taxes “duties” and costs. The remaining 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 discovered 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.
For the purpose of collecting the customs taxes “duties” and the other fees and taxes to be collected as well as the fines, compensations, confiscations and refunds, the Administration shall have a general privilege over the movable and unmovable property 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.
Any claim or action for refunding the customs taxes “duties” paid since over three years shall not be accepted.
The Administration may destroy the records, receipts, declarations and the other customs documents upon the expiry of five years following finalization of the customs procedures. The Administration shall not be bound to present such documents or give copy thereof to any entity upon the elapse of that period.
Without prejudice to the other regulations and laws 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 effective from the date of committing the offence b ). Execution of the smuggling judgments and the 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 fins and the confiscations 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 effective from the date of lodgment of the customs declaration .
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 confiscated 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 .
The Financial and Economic Cooperation Committee of the GCC Member States shall approve the Rules of implementation of this regulation “law’ which will be issued according to the legal instrument of each Sate.
The Common Customs Law (law) of the GCC Member States shall, when implemented, supersede the customs regulations and laws in force in the Member States within the limits of the constitutional rules and regulations and the basic laws in force in each State without contradiction therewith. .