FOR THE ARAB GULF CO-OPERATION COUNCIL STATES

(DIRECTORATE GENERAL OF CUSTOMS, ROYAL OMAN POLICE) 2003

INTRODUCTION

Pursuant to the Unified Economic Agreement among the AGCC States and based on the Doha Declaration issued by the Supreme council in its 23rd Session in Qatar for the establishment of the Custom Union for the AGCC States as of 1.1.2003. The transitional period Shall be three years starting from the date of declaration and ending in the year 2005.

THE CONCEPT OF CUSTOM UNION OF THE COUNCIL STATES

It is the Territory where custom duties are abolished along with the abolishment of the regulations and procedures restricting trade among the Council States and where unified custom duties of commerce regulations, custom regulations are implemented on trade with other countries in the world.

PRINCIPLES OF THE CUSTOM UNION

The custom union for the council states is based on the following principles:

(a) Unified Custom Tariff towards the outside world.

(b) A unified Custom Union

? Similar custom regulations and procedures for the Council States

THE ONE POINT ENTRY FOR THE COUNCIL STATES

(1) Any Land, Sea or Air Custom exit point for the council states that has link with the outside world shall be considered A POINT OF ENTRY for foreign goods to any of the AGCC States.

(2) The First Custom exit point for the AGCC States to the outside world shall undertake the inspection of the goods which are to be imported to any country of the Council States, for the purpose of insuring the conformity of such goods with the required documents and its non-continment of any restricted materials and to collect the custom duties accordingly.

(3) The following custom exit points shall be considered as FIRST ENTRY POINT for foreign goods from the outside world to the Sultanate of Oman.

- Port Sultan Qaboos custom exit point

- Seeb International Airport custom exit point

- Salalah Seaport custom exit point

- Almazyona Land custom exit point

- Khasab Seaport custom exit point

- Sarfeet Land custom exit point

- Sohar Seaport custom exit point

- Shinas Seaport custom exit point

- Sur Seaport custom exit point

- Post Office custom exit point

FIRST: IMPORTING

Definition of Importing

﹛It is any goods imported to the country whether by sea, land or air and is subject to custom duties according to the unified custom duties and the imposed levy except for such goods that are exchanged by provisions of the unified custom union or by the unified economic agreement for the council states or any other international agreement within the framework of the council commencing from the date of registration of the custom declaration in the custom departments﹛.

Documents to be attached to custom declaration:-

1- In addition to D/O and other required certificates pertaining to validity and specifications of goods in other legislations, the following documents should be attached to customs declarations when the goods are to be cleared.

(a) The custom declaration of the neighbouring countries for goods originating from them are exported through their ports or transiting through them by land to other countries.

(b) The Sea Bill of Landing from the carrier or the Ship﹛s agent for goods that are imported through one of the countries﹛ ports.

? The Air Way Bill for goods that enter the country by air and statement of Load for goods that are imported by road.

(d) Arab Transit declaration for goods that are imported fro non-neighbouring Arab countries.

(e) The certified Purchase List (Invoice) to include number of parcels, their type, signs, numbers and the quantity of goods, their gross weight and net weight along with the name of consigner and consignee.

(f) Certified and valid Certificate of Origin duly prepared according to the provisions of Law and origin regulations that are agreed upon with the frame work of economic and regional organizations.

(g) Application for taking out goods stored in free zones (for goods to be imported from free zones).

2- Failure to present the certified list (Invoice) or the certified certificate of origin or any of the required documents which are shown under article (1) above will result in the clearance of goods against the collection of cash or bank guarantee to be specified by the Director General of Customs or the invoice and certificate of origin or either of them. The guarantee can be refunded if the applicant succeeds to present the certified invoices and certificates of origin within 90 days from the date of payment.

3- The Unified Statistical Declaration

4- Any other documents required by the Custom Department while the consignment is under clearance.

If the origin of goods is the first entry point:-

(a) FULL CONSIGNMENTS:

are the goods which have been imported according to a single consignment from outside the Council States and for which the custom procedures are to be finalized in the FIRST SINGLE ENTRY POINT provided that all the consignments shall fully porceed to the country of destination.

THE PROCEDURES:

1- Custom procedures shall be fully performed on goods imported to the council states at the First Custom Point in the council states with the outside world. I.e. the unified custom declaration check, inspection and collection of custom duty.

2- Goods imported from outside the council states shall be moved in full following the fulfillment of the custom procedures and the collection of custom duties at the Single Entry Point directly to its final destination or through one or more member state/states after the goods are properly sealed according to a copy of the import declaration bearing its value and the due custom duty in favour of the country of final destination along with the statistical declaration.

(b) PARTIAL CONSIGNMENTS:

Are the goods that have been imported according to single consignment from outside the council states and for which the custom procedures are finalized in the FIRST SINGLE ENTRY POINT and shall be sent in portions to the countries of destination according to a statistical declaration for each portion of the same consignment.

THE PROCEDURES:

If the goods to be transited amongst the council states are part of a consignment whose custom procedures have been finalized at the FIRST ENTRY POINT and the importer wishes to move part of them to another country from the council states or via them, prior to such goods leave the custom point to its final destination, their movement shall be according to the agreed statistical declaration within the framework of council and copy of the original import declaration following the completion of customs procedures.

PROCEDURES FOR THE MOVEMENT OF LOCAL MARKETS ORIGIN GOODS AMONGST THE COUNCIL STATES

(a) National products:-

Shall be moved according to local invoices and any documents that can stand as proof for the products﹛ origin from the country of source, and the customs declaration for statistical purposes

(b) Foreign products:-

Shall be dealt with as follows:-

(1) Goods that have been imported to the Council States prior to the date of 1.1.2003 from GCC States Local Markets shall have their custom duties collected at the country of destination.

(2) Goods that have been imported to the Council States post to the date of 1.1.2003 and for which the importer presents custom certificates issued by the FIRST ENTRY POINT as a proof that their custom duties have been paid after the establishment of the custom union, shall be passed on grounds of the collection of their custom duties at the first custom point.

(3) Goods that have been imported to the Council States post the date of 1.1.2003 and for which the importer fails to prove payment of custom duties post to the establishment of the custom union, shall have their custom duty collected at the custom point of the country of final destination.

(4) The custom declaration for statistical purposes shall be prepared manually by the goods owner or the person who acts on behalf of him or by computer, and shall be approved by the custom exit point and have the local invoices attached to it. Such invoices shall bear the correct value and origin of the goods.

(5) The importer must ensure that the custom officer has made the necessary endorsements that justify the entry and exit of such goods on the basis of the statistical declaration.

SECOND: CATEGORIES OF CUSTOM DUTIES.

(a) Goods that are exempted from Custom Duty:-

1- Goods exempted from custom duty according to the Unified Custom System Law for the Council States and which are exempted from the Unified Custom Tariff for Council States as agreed by them.

2- Goods that are exempted fro custom duty according to bilateral agreements with one of the Council States. Such goods should not necessarily be exempted in other member states.

(b) Other goods shall be subject to Custom Duty at the rate of 5%

? Custom Duties for the import of Tobacco and its derivatives are 100% of the cost provided that the duty should not be less than what is mentioned in appendix (1).

(d) High Custom Duty Goods

1- Special kinds of meat and its derivates (pork 100%)

2- All kinds of alcoholic drinks (100%)

(e) Protection Duties:

1- Protection duties now valid in Oman shall be collected during a period of 3 years ending in 2005.

2- Types of goods that are subject to protection:

Dry Lemon (100%), Dates and Bisoor (20%), Fresh Bananas (25%)

THIRD: EXPORTING

Definition of Exporting

Goods that are exported from AGCC States to other countries regardless of their origin.

Documents to be attached:-

1- Custom export declaration to be prepared by the exporter.

2- Bill of Landing from the approved Shipping Agent (if the goods are to be exported by sea) or Airway Bill from the Airline Agent (if the goods are to be exported by air).

3- The Manifest.