Decree No. 200 of 2003 Issuing the Executive Regulations of Law No. 10 of 2003 Promulgating the Unified Customs Law of the GCC States

Decree No. 200 of 2003
Issuing the Executive Regulations of Law No. 10 of 2003 Promulgating the Unified Customs Law of the GCC States

First: Value of Goods for Customs Purposes

Pursuant to the provisions of Article (26) of the Unified Customs Regulation (Law) of the GCC States, the value of goods for customs purposes shall be determined in accordance with the following provisions and bases:

Article 1

Bases for Determining Value for Customs Purposes under the Unified Customs Regulation (Law) of the GCC States
First/ General Provisions:
(1) The importer is entitled to the release of his goods, after providing sufficient guarantees in the form of a bank or cash deposit, or a bank guarantee, or in the form of a deposit or pledged property of an equivalent value to cover the estimated customs taxes (duties), if it becomes evident that the final determination of the customs value will be delayed.
(2) The importer, or any other person liable for payment of customs taxes (duties), may object to and appeal against the assessment of the customs value without penalty, as follows:
A- Administrative level/
1- The Director of the customs office.
2- The Valuation Disputes Committee.
B- An independent judicial authority.
(3) Information that is by nature confidential or that is provided on a confidential basis for the purposes of customs valuation shall be treated as strictly confidential and may not be disclosed except to the extent that its disclosure may be required in the context of judicial proceedings, in accordance with the provisions of the Unified Customs Regulation (Law) of the GCC States.
(4) Where the declared value is expressed in a foreign currency, it should be converted into the local currency on the basis of the rate of exchange announced in the bulletins issued by the competent authorities. The date of registration of the customs declaration shall be the date adopted for the rate of exchange.
(5) In determining the customs value, no regard shall be had to any reduction made after the date of importation in the price actually paid or payable for the goods being valued. Nor shall regard be had to credit balances relating to previous consignments at the date of registration of the customs declaration of the goods being valued at the customs offices.
(6) Nothing in this Regulation (Law) shall be construed as restricting or calling into question the right of Customs to take whatever is necessary to satisfy itself as to the truth or accuracy of any statement, document, declaration or acknowledgement submitted to Customs for valuation purposes.
(7) A – Where, in applying the provisions of paragraphs “Fourth to Eighth” of this Article, it is necessary to use accounting information to determine the customs value, such information shall be used in a manner consistent with the generally accepted accounting principles in the GCC States as appropriate to the particular Article being applied.
(B)- Customs may not reject information submitted by the importer, the buyer or the producer relating to the valuation of the goods, which has been prepared in accordance with “generally accepted accounting principles”, on the ground of the accounting method used therein.
(8) Subject to the provisions of paragraph “Fourth/B” of this Article, in determining the customs value of carrier media bearing information, such as magnetic tapes and the like, on which data or computer programs are recorded, the value shall be calculated on the basis of the value of such media only, without including the value of the information recorded on them.
(9) The importer is entitled, upon a written request, to obtain a written explanation from the Customs Administration as to how the method by which the customs value of the imported goods was determined was established.
Second/ Definitions:
For the purposes of applying this Article in calculating value for customs purposes, the following words and expressions shall have the meanings assigned to each of them:
(1) Price actually paid or payable: The total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods. The payment need not necessarily take the form of a transfer of money; payment may be made by way of letters of credit or negotiable instruments, and payment may be made directly or indirectly, such as the buyer’s settlement, in whole or in part, of a debt owed by the seller.
(2) Imported goods being valued: Means those goods whose value for customs purposes is being determined.
(3) Cost of packing: Means the cost of all receptacles (other than containers), coverings of whatever kind and packages, whether for labour or for materials used to place the goods in packages suitable for their shipment to the GCC States.
(4) The term “produced”: Includes grown, manufactured and extracted from the earth (raw materials), as well as services and intellectual products.
(5) “Related persons” means the following:
A – Legally recognized partners in business.
B – Officers or directors of one another’s businesses.
C – An employer and his employees.
D – Any person who directly or indirectly owns, controls or holds five per cent or more of the outstanding voting shares or stock, or both.
E – If one of them controls or dominates the other.
F – Or if both of them are directly or indirectly controlled by a third person.
G – Or if together they directly or indirectly control a third person.
H – Or if they are members of the same family.
(6) Identical goods: Goods which are the same in all respects as the goods being valued, including physical characteristics, quality and reputation, and which were produced in the same country and by the same person. Minor differences in appearance that do not affect the price shall not preclude goods otherwise conforming to this definition from being regarded as identical goods. Where no identical goods produced by the same person can be found, goods which are the same in all respects as the goods being valued and which were produced in the same country by a different person may be treated as identical goods. Identical goods do not include goods which incorporate or reflect engineering, development, artwork, design work, plans and sketches undertaken in the GCC States, which are not included in the adjustments to the transaction value under paragraph (Fourth/B/1/4/D) of this Article.
(7) Similar goods: Goods produced in the same country of production as the goods being valued and by the same person, 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 with the goods being valued, taking into account quality, reputation and the existence of a trademark in determining whether the goods are similar. Where no similar goods produced by the same person can be found, goods produced in the same country of production as the goods being valued and produced by a different person, but which resemble them in characteristics and component materials and are commercially interchangeable with them, shall be treated as “similar goods”. Similar goods do not include those goods which incorporate or reflect engineering, development, artwork, design work, plans and sketches undertaken in the GCC States, which are not included in the adjustments to the transaction value under paragraph (Fourth/B/1/4/D) of this Article.
(8) Unit price at which the greatest aggregate quantity is sold: The price at which the greatest number of units is sold, sufficient to establish the unit price, in sales to persons who are not related to the persons from whom they buy the goods, at the first commercial level after importation, in applying paragraph (Sixth).
(9) Goods of the same class or kind: Goods which fall within a group of goods produced by a particular industry or industry sector, and which include, but are not limited to, identical goods and similar goods.
(10) Generally accepted accounting principles: The recognized consensus or substantial authoritative support at a particular time as to the following:
1 – The economic resources and obligations that should be recorded as assets and liabilities.
2 – The changes in assets and liabilities that shall be recorded.
3 – How the assets and liabilities, and the changes in them, should be measured.
4 – What information should be disclosed and how it should be disclosed.
5 – Which financial statements should be prepared.
(11) Objective data: That information which helps to ascertain the accuracy of the following:
1 – An amount added under paragraph (Fourth/B) of this Article to the price actually paid or payable.
2 – Any adjustment under paragraph (Fifth) of this Article.
3 – An amount deducted under paragraph (Sixth) of this Article as profit and general expenses, or as value arising from further processing.
4 – An amount added under paragraph (Seventh) of this Article as profit or general expenses.
Third/ Bases of Customs Valuation:
(A) Imported goods shall be valued according to the following bases, in order:
(1) The transaction value of the goods being valued, provided for in paragraph (Fourth).
(2) The transaction value of identical goods, provided for in paragraph (Fifth/A), if the transaction value cannot be determined under paragraph (Fourth).
(3) The transaction value of similar goods, provided for in paragraph (Fifth/B), if the transaction value of identical goods cannot be determined.
(4) The deductive value provided for in paragraph (Sixth), if the value cannot be determined on the basis of the transaction value of similar goods.
(5) The computed value provided for in paragraph (Seventh), if the value cannot be determined on the basis of the deductive value.
(6) The fallback method provided for in paragraph (Eighth), if the value cannot be determined on the basis of the computed value.
(B) The importer may request that the computed value method be applied before resorting to the deductive value method. Such request shall be submitted when the import declaration is submitted to Customs. If the importer submits his request but his imported goods cannot be valued according to the computed value method, they shall be valued according to the deductive value method, and if that is not possible, valuation shall be made in accordance with paragraph (Eighth).
Fourth/ Transaction Value of the Goods Being Valued:
(A) The customs value of goods imported into the GCC States shall be the transaction value, that is, the price actually paid or payable for those goods when sold for export to the GCC States, subject to the provisions of paragraph (B) of this basis, and in accordance with the following conditions:
1- That there are no restrictions on the disposition or use of the imported goods by the buyer, other than restrictions provided for in the Unified Customs Regulation (Law) of the GCC States, or which limit the geographical areas in which the goods may be resold, or restrictions which do not substantially affect the value of the goods.
2- That the sale or price is not subject to a particular condition or consideration for which a value cannot be determined with respect to the goods being valued.
3- That no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made to the value in accordance with the provisions of paragraph (B) of this basis.
4- That the seller and the buyer are not related in accordance with paragraph (Second/5) of this Article. If they are related, the transaction value shall be acceptable for customs purposes in accordance with the provisions of paragraph (A) of this basis if either of the following two conditions is met:
A – If an examination of the circumstances of the sale shows that the relationship between the buyer and the seller did not influence the price actually paid or agreed to be paid.
B – Or if the transaction value of the imported goods closely approximates one of the test values set out in the following paragraphs:
1- The transaction value of identical or similar goods sold for export to unrelated buyers in the GCC States.
2- A customs value determined for identical or similar goods under paragraph (Sixth), deductive value.
3- A customs value determined for identical or similar goods under paragraph (Seventh), computed value.
– In applying paragraph (Fourth/A/4/B), any difference between the declared value and the test value shall be adjusted, if any, on the basis of objective data submitted by the buyer or available to Customs, in accordance with paragraph (Second/11) of this Article, and taking into account paragraph (Fourth/B) of this Article; and these values may not be used as substitute values.
(B) Additions to the price actually paid or payable (adjustments):
(1) In determining the customs value under this paragraph (Fourth), the following costs shall be added to the extent that they are incurred by the buyer, where such costs are not included in the price actually paid or payable for the imported goods:
1- Commissions and brokerage, except buying commissions.
2- The cost of containers which are treated, for customs purposes, as being one with the goods.
3- The cost of packing, whether for labour or materials.
4- The value of goods and services (assists) supplied directly or indirectly by the buyer, free of charge or at reduced cost, for use in connection with the production and sale for export to the GCC States of the imported goods, such value to be apportioned as appropriate, as follows:
A- Materials, components, parts and similar items incorporated in the production of the imported goods.
B- Tools, dies, moulds and similar items used in the production of the imported goods.
C- Materials consumed in the production of the imported goods.
D- Engineering, development, artwork, design work, plans and sketches, undertaken outside the GCC States and necessary for the production of the imported goods.
5- Royalties and licence fees which the buyer shall pay, either directly or indirectly, for the exploitation of an intellectual property right or of licences of use, as a condition of the sale under which ownership of the goods being valued passed into his possession, and which relate to the imported goods being valued, where they are not included in the price actually paid or payable.
6- The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
7- The cost of transport of the imported goods to the port or place of importation.
8- Loading, unloading and handling charges, and insurance, associated with the transport of the imported goods to the port or place of importation.
(2) No addition may be made to the price actually paid or payable except in accordance with the provisions of paragraph (Fourth/B) of this Article, and any addition shall be made on the basis of objective and quantifiable data, that is, on the basis of facts with actual figures without subjective interpretation, taking into account paragraph (Second/11) of this Article. Otherwise, arriving at the transaction value shall be deemed not possible under this basis.
(C) Exclusions from the Transaction Value:
The following costs and amounts shall not be included in the value for customs purposes, provided that they are distinguished from the price actually paid or payable:
1. Post-importation expenses, such as:
A- Charges for construction, erection, assembly, maintenance or technical assistance undertaken after importation of the goods into the GCC States.
B- Charges for transport, loading, unloading, handling and insurance of the imported goods after importation.
C- Customs duties and any other taxes imposed after importation on the goods imported into the GCC States.
D- Dividends and other payments from the buyer to the seller that do not relate to the imported goods.
E- Interest accrued under a financing arrangement entered into by the buyer for the purchase of the imported goods.
F- Activities undertaken by the buyer on his own account.
2. Credit balances held by the seller in favour of the importer.
3. Amounts of export subsidies that may be granted by certain countries for the export of certain goods.
4. Any amounts in respect of dumping, where goods are sold at dumped prices (at a price below cost), since dumping shall be dealt with under the Anti-Dumping Agreement.
(D) If it is found that there are reasonable grounds for doubting the accuracy of the documents submitted or of the information contained therein, notwithstanding the applicability of the provisions of this Article, the importer should be notified in writing of those grounds, upon his request, and granted a sufficient period to respond, as determined by the customs office. If he does not submit evidence acceptable to the office within that period, and the customs value cannot be determined in accordance with the provisions of paragraph (Fourth) of this Article, it shall be determined in accordance with the methods set out in paragraphs (Fifth to Eighth), in succession, until the customs value is arrived at under the first possible method.
Fifth/ Transaction Value of Identical and Similar Goods:
(A) The transaction value of identical goods, accepted as a transaction value under paragraph (Fourth) of this Article, sold for export to the GCC States on the same date as, or at about the same date as, the date of export of the goods being valued, at the same commercial level and in the same quantities as the imported goods being valued. Where no such value is available, the transaction value of identical goods sold at a different commercial level and/or in different quantities shall be used, adjusted to take account of the difference in commercial level and/or quantities, on the basis of objective data in accordance with paragraph (Second/11) of this Article and of conclusive evidence establishing the reasonableness of the adjustment, whether the adjustment leads to an increase or a decrease in the value, taking into account the difference in the costs referred to in paragraph (Fourth/B) of this Article. Where more than one transaction value of identical goods is found, the lowest of those values shall be adopted as the customs value of the goods being valued, in accordance with paragraph (Fifth/A) of the Interpretative Annex.
(B) The transaction value of similar goods, accepted as a transaction value under paragraph (Fourth) of this Article, sold for export to the GCC States on the same date as, or at about the same date as, the date of export of the goods being valued, at the same commercial level and in the same quantities as the imported goods being valued. Where no such value is available, the transaction value of similar goods sold at a different commercial level and/or in different quantities shall be used, taking into account the difference in commercial level and/or quantities, on the basis of objective data in accordance with paragraph (Second/11) and of conclusive evidence establishing the reasonableness of the adjustment, whether the adjustment leads to an increase or a decrease in the value, taking into account the difference in the costs referred to in paragraph (Fourth/B/1) of this Article. Where more than one transaction value of similar goods is found, the lowest of those values shall be adopted as the customs value of the goods being valued, in accordance with paragraph (Fifth/B) of the Interpretative Annex.
Sixth/ Deductive Value:
1 – The customs value shall be based on the unit price at which the imported goods themselves, or identical goods, or similar goods are sold, at the first commercial level, in the domestic market of the GCC States, in the condition as imported, in the greatest aggregate quantity in accordance with paragraph (Second/8) of this Article, at or about the time of importation of the goods being valued, to persons who are not related in accordance with paragraph (Second/5) of this Article, excluding sales of goods in whose production any of the assists set out in paragraph (Fourth/B/1/4) of this Article were incorporated, subject to the following deductions:
A – Either the commissions usually paid or agreed to be paid, or the additions usually made for profit and general expenses in the GCC States in connection with goods of the same class or kind.
B – The usual costs of transport and insurance after importation and associated costs incurred within the GCC States, provided that such costs have not been added as general expenses under Paragraph (A) above.
C – The customs taxes (duties) and other taxes or Zakat payable in the GCC States by reason of the importation or local sale of the goods. Care shall be taken not to deduct such taxes or Zakat under this paragraph where the importer has recorded them within the general expenses under Paragraph (A) above under this basis.
2 – If neither the goods being valued nor identical or similar imported goods have been sold in the condition as imported at or about the time of importation of the goods being valued, the customs value shall, subject to the provisions of Paragraph (1) of this basis, be based on the unit price at which the imported goods or identical or similar imported goods are sold in the local market in the GCC States, in the condition as imported, at the earliest date after the importation of the goods being valued but before the expiration of ninety days from the date of importation of the goods being valued, in quantities sufficient to establish the unit price.
3 – If neither the imported goods nor identical or similar imported goods are sold in the local market in the GCC States in the condition as imported, the customs value shall, at the request of the importer, be based on the unit price at which the imported goods, after further manufacturing or processing, unless they have lost their identity, are sold in the greatest aggregate quantity in the local market in the GCC States to persons who are not related as defined in Paragraph (Second/5) of this Article, due allowance being made for the value added by such further manufacturing or processing in the GCC States and for the deductions provided for in Paragraph (1) of this basis.
Seventh/ Computed Value:
1 – If the customs value cannot be determined under Paragraph (Sixth) of this Article, or where the importer requests that the computed value be applied before the deductive value pursuant to Paragraph (Third/B) of this Article, the customs value shall, in accordance with the provisions of this paragraph, be based on the computed value, which shall consist of the sum of the following:
A – The cost or value of materials and fabrication or other processing employed in producing the imported goods.
B – An amount for profit and general expenses of the producer equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by other producers in the same country of exportation for export to the GCC States.
C – The costs and expenses set out in Paragraphs (7) and (8) of (Fourth/B/1) of this Article.
2 – No person not resident in the GCC States may be required to produce for examination, or to allow access to, any account or other record for the purposes of determining a computed value. However, the Customs Administration may verify in another country information supplied by the producer of the imported goods for the purposes of determining the customs value under the provisions of this Article, with the agreement of the producer and provided that sufficient advance notice is given to the government of the country in which the verification is to take place and that it does not object to the verification.
Eighth/ Fallback Method:
A – If the customs value of the imported goods cannot be determined under the preceding bases referred to in Paragraphs (Fourth) to (Eighth) of this Article, the provisions of the same bases shall be applied again, in sequence, with a reasonable degree of flexibility, in order to arrive at the customs value under the first possible basis.
B – Where the customs value is not arrived at using those bases, even in their flexible form, reasonable means consistent with the principles and general provisions of the Valuation Agreement and with Article VII of GATT 1994 may be used, on the basis of data available to any entity in the GCC States. The customs value may not be determined on the basis of the following:
1 – The selling price in the GCC States of goods produced in the GCC States.
2 – The higher of alternative values.
3 – The price of the goods on the domestic market of the country of exportation.
4 – A cost of production other than the computed value determined in accordance with the provisions of Paragraph (Seventh) of this Article.
5 – The price of goods sold for export to a country other than the GCC States.
6 – Arbitrary or fictitious values.
7 – Minimum customs values.
C) The importer is entitled, upon a written request, to obtain a written explanation of the bases adopted in determining the customs value under the provisions of this paragraph. The explanation shall cover only the imported goods being valued, and shall not serve as a reference with regard to the valuation of imports of any other commodity at the same customs port of entry or any other. This procedure is for information purposes only, and shall not affect or replace the objection and appeal procedures set out in this paragraph.
Ninth/ The following Interpretative Annex shall be deemed an integral part of this Article.
Interpretative Annex
First/5 – Credits relating to previous consignments shall not be taken into account in determining the customs value of the goods being valued.
Example: An importer received a consignment of television sets valued at 10000 riyals, and the invoice included an amount of 9000 riyals as the value of the sets and a credit of 1000 riyals. The importer explained that the credit of 1000 riyals was granted to him as compensation for damage to (10) television sets from the previous shipment. In this case, the credit has no relation to the consignment being valued, and accordingly the customs value of the consignment shall be determined at 10000 riyals.
Fourth/A– Price Actually Paid or Payable:
1 – In determining the transaction value, regard shall be had to the price actually paid or payable as defined in Paragraph (Second/1) of this Article, irrespective of how it was derived; it may be the result of discounts, additions or negotiations, and may be arrived at by applying a particular formula.
2 – The expression “payable”: means that the price of the goods has not been paid when Customs determines the customs value of the imported goods, and this price agreed to be paid shall be the basis for determining the customs value. Payment need not take the form of a transfer of money; payment may be made by way of letters of credit or negotiable instruments, directly or indirectly.
3 – Indirect payment: includes the settlement by the buyer, in whole or in part, of a debt owed by the seller, or the buyer may obtain a reduction in the price of the goods being valued as a means of settling a debt owed to him by the seller. Indirect payment does not include activities undertaken by the buyer on his own account, such as advertising, other than the activities provided for in (Fourth/B), even though they also benefit the seller. The costs of such activities shall not be added to the price actually paid or payable in determining the customs value of the imported goods.
4 – Assembled goods: the price actually paid or payable may represent an amount for the assembly of the imported goods. The price paid or payable shall be calculated by adding the value of the components and the assembly.
Example: An importer previously supplied a foreign assembly plant with components ready for assembly, whose value or cost at the assembly plant amounts to (1) riyal per unit. The importer pays the assembly plant half a riyal per unit for the assembly. The transaction value per assembled unit is therefore (1 , 50) riyals.
Fourth/A/1 – Restrictions which do not substantially affect the value of the goods do not prevent the determination of the customs value using the transaction value method, for example:
1 – Restrictions which set a specific date for the sale of the imported goods.
Example (1): An importer purchased goods consisting of clothing, and it was evident from the purchase contract that the seller stipulated that the buyer (the importer) not sell them except on a certain date, such as the beginning of the winter season, for example.
2 – Restrictions which specify a certain place in the country of importation for the resale of the imported goods.
Example (2): Taking into account Example (1), if the seller had stipulated that the buyer (the importer) not sell the goods except in the city of Riyadh, for example.
3 – Restrictions which specify a certain method of resale in the country of importation.
Example (3): If the seller in Example (1) had stipulated that the buyer (the importer) sell the goods only through sales representatives, or through advertisements in the media.
Fourth/A/2 – Conditions or considerations for which a value cannot be determined:
Such as where the seller establishes the price of the imported goods on condition that the importer also buys other goods in specified quantities; or where the price of the imported goods is dependent upon the price or prices at which the importer sells other goods to the seller of the imported goods; or where the seller establishes the price of the imported goods on the basis of a form of payment extraneous to the goods, for example where the goods are to be subjected to further manufacturing by the buyer and the seller stipulates that the buyer provide him with a specified quantity of the goods after manufacturing.
Fourth/A/4 – If Customs has sufficiently detailed information on the buyer and the seller to satisfy it that the relationship between them did not influence the price actually paid or payable, the price shall be accepted without requesting additional information from the importer. However, if Customs has doubts that the relationship influenced the price, it shall notify the importer thereof, and he shall be given a sufficient period to respond, and the notification shall be in writing if the importer so requests.
Fourth/A/4/A – The transaction value shall be accepted, after examination of the circumstances of the sale, if it is shown to Customs that:
1 – The buyer and the seller, although related, buy from and sell to each other as if they were unrelated persons.
2 – If the price has been settled in a manner consistent with the normal pricing practices of the industry in question, this is an indication that the price has not been influenced by the relationship.
3 – If it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the firm’s overall profit realized over a certain period of time in sales of goods of the same class or kind.
Fourth/A/4/B – Test Values:
1 – These are values previously accepted as customs values for goods exported to the GCC States at or about the time of importation of the imported goods. Test values shall be used only for comparison with the transaction value of the imported goods.
2 – In determining whether the transaction value closely approximates the test value, the following factors shall be taken into account:
A – The nature of the imported goods and the nature of the industry.
B – The period during which the goods are imported.
C – Whether the difference in value is commercially significant.
D – Whether the difference in value is attributable to internal freight costs in the country of exportation.
Since the above factors may vary, a uniform standard such as a fixed percentage cannot be applied in each case. A small difference in value in a case involving one type of goods may be unacceptable, while a large difference in a case involving another type of goods might be acceptable.
3 – In applying test values, account shall be taken of the differences between the declared value and the test value, and the difference shall be adjusted if it is based on objective data submitted by the buyer or available to Customs. The difference may relate to the following:
A – The commercial level of the importer.
B – The quantity imported or contracted for.
C – The costs set out in Paragraphs (7) and (8) of (Fourth/B/1) of this Article.
D – Costs incurred by the seller in sales in which the seller and the buyer are not related, and not incurred by him in sales in which the seller and the buyer are related.
4 – If the result of the comparison or test shows that one of the test values provided for in (Fourth/A/4/B) of this Article closely approximates the declared value, there is no need to resort to an examination of the circumstances of the sale to determine whether the relationship between the buyer and the seller influenced the price. Where Customs already has sufficient information to be satisfied, without further inquiry, that one of the test values closely approximates the declared price, it shall not require the importer to demonstrate the validity of the test value.
Fourth/B/1/1 – Buying commission: means the fees paid by the importer to his agent for the service of representing him abroad in the purchase of the goods being valued. It shall not be included in the customs value.
Selling commission: means the fees paid to the seller’s agent who is related to, or subject to the control of, the manufacturer or seller, or who works for or on behalf of them, for the services of selling the goods.
Fourth/B/1/4/A – Requirements for adding the value of assists:
1 – If they have not already been included in the price actually paid or payable.
2 – If they were supplied free of charge by the importer (the buyer) to the producer (the manufacturing company), directly or indirectly.
3 – If they were supplied at a reduced cost, the addition shall be made only to the extent of the reduced amount.
4 – If they were used in the production of the goods being valued.
B – Determination of the value of assists:
In order to add the value of assists to the transaction value of the goods being valued, or to include it among the components of the computed value, the value of the assists and the costs of shipping them to the place of production of the goods being valued, including non-recoverable duties and taxes, shall be determined and apportioned proportionately to the value of the imported goods as follows:
1 – If the assist consists of materials, components, parts or similar items incorporated in the production of the imported goods, or consumed in the production of the imported goods, and was acquired by the buyer from an unrelated seller, the value of the assist is its cost of acquisition. If the assist was produced by the buyer or by a person related to him, its value is its cost of production.
2 – If the assists consist of tools, dies, moulds or similar items used in the production of the imported goods, and the importer purchased them from an unrelated seller, their value is their cost of production. If the assists have been previously used, the original cost of their acquisition or production should be adjusted to reflect the current value after use before its value is determined. However, if the importer leased the assist from an unrelated person, the value of the assist is its cost of rental. In both cases, the cost of any modifications or repairs made to it shall be added.
Example (1): A GCC importer supplied a foreign producer with detailed designs necessary for the manufacture of the goods. The GCC importer had purchased those designs from an engineering company in the GCC States in order to supply them to the foreign producer.
Q: Does the customs value of the goods include the value of that assist?
Answer: No, because design work undertaken in the GCC States may not be added to the price actually paid or payable.
Example (2) – A GCC importer supplied the foreign producer (the exporter) with moulds free of charge. These moulds are required for manufacturing goods for the GCC importer. The GCC importer had moulds manufactured in one of the GCC States and other moulds manufactured outside the GCC States.
Q: Does the customs value of the goods include the value of the moulds?
Answer: Yes, the value of the moulds shall be included in the transaction value, whether they were produced in the GCC States or outside the GCC States.
C – Apportionment of the value of assists:
The value of assists shall be apportioned to the imported goods in a reasonable manner appropriate to the circumstances and in accordance with generally accepted accounting principles, on the basis of the documents submitted by the importer. For example: if the total number of pieces expected to be manufactured using the assist will be exported to the country of importation, the total value of the assists may be apportioned using one of the following methods:
1 – To the first consignment, if the importer wishes to pay duty on the total value of the assist at once.
2 – Over the number of units produced up to the arrival of the first consignment.
3 – Over the entire anticipated production of the assist, where contracts or firm commitments exist for that production.
4 – Any method of apportionment requested by the importer that is consistent with generally accepted accounting principles.
5 – If the imported goods are only part of the production, or if the assist is used in several countries, the method of apportionment shall depend on the documents submitted by the importer.
Example: The importer sent the producer a mould to be used in producing the imported goods, and the importer had agreed with the producer to purchase 10000 pieces. When the first consignment containing 1000 pieces arrived, the producer had finished producing 4000 pieces.
In this case, the importer may request Customs to apportion the value of the mould over 1000, 4000 or 10000 pieces, or any number consistent with generally accepted accounting principles.
Fourth/B/1/5/1 – The charges (amounts) paid by the buyer for the exploitation of an intellectual property right or licences to use may include, among other things, costs covering patents, registered trademarks and copyrights. They shall be added to the customs value.
2 – Charges for the right to reproduce, which covers goods such as: originals or copies of artistic or scientific works, originals or copies of industrial models or drawings, models of machines and samples thereof, and plant or animal species, shall not be added to the price actually paid or payable for the imported goods being valued.
3 – Amounts paid by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable if such amounts are not paid as a condition of the sale of the goods for export to the GCC States.
4 – If the intellectual property right is based partly on the imported goods and partly on other factors unrelated to the imported goods, and the intellectual property right cannot be distinguished from special financial arrangements between the buyer and the seller, it shall not be possible to determine the customs value under the transaction value method in paragraph (Fourth) of this Article.
5 – If, however, the intellectual property right is based solely on the imported goods and its amount can be readily determined, it shall in that case be added to the price actually paid or payable.
Fourth/C/1/C – Method of excluding ad valorem customs duties and any other taxes:
Example: If the price actually paid or payable amounts to (56000) riyals and includes the value of the imported goods, insurance and freight (CIF), and ad valorem customs duties at a rate of, for example, 20% in the GCC States, in addition to a tax of 500 riyals that became due after importation.
The customs duties and taxes are deducted as follows:
56000 – 500 = 55500
55500 – 1 , 20 = 46250 (the result represents the CIF value).
Fourth/C/1/D – Dividends and other payments from the buyer to the seller that are unrelated to the imported goods, such as dividends paid to shareholders that do not relate directly to the imported goods, shall not be included in the customs value. A distinction shall be made between dividends and proceeds, since proceeds are a portion accruing directly or indirectly to the seller as a result of any subsequent resale, disposal or use of the imported goods, and they shall be added to the value of the goods.
Fourth/C/1/E – Interest on financing for the purchase of the imported goods, provided by the seller, a bank or any other person, shall not be included in the customs value, provided that:-
1 – Such interest is distinguished from the price actually paid or payable for the imported goods.
2 – The financing arrangement has been made in writing.
3 – The buyer can demonstrate that the goods are actually sold at the declared price, being the price actually paid or payable.
4 – The rate of financing interest does not exceed the level prevailing in the country where the financing was provided in respect of that transaction.
Fourth/C/1/F – The value for customs purposes shall not include the costs of activities undertaken by the buyer on his own account, other than those for which an adjustment may be made under paragraph (Fourth/B), even though they might be regarded as of benefit to the seller. Such activities include, for example:
Marketing studies and research, advertising and promotion, preparation of showrooms, and participation in trade fairs.
Fourth/C/2 – Credit balances held by the seller in favour of the importer and included in the price actually paid or payable for the goods being valued as compensation for a previous consignment or commercial transaction shall be settled separately from the consignment being valued, as they are balances for previous shipments. Refer to the example in paragraph (First/5) of this Annex.
Fifth/A/1 – The customs value shall be the transaction value of identical goods previously accepted as a customs value under the provisions of paragraph (Fourth) of this Article, on the basis that such identical goods were sold for export to one of the GCC States at or about the same date as the goods being valued were exported, from the same manufacturer, at the same commercial level as the importer, and in the same quantities as the imported goods being valued.
2 – If no such value is available, the transaction value of identical goods shall be used in the following order of priority:
A – From the same manufacturer, in different quantities and/or at a different commercial level.
B – From a different manufacturer, in the same quantities and/or at the same commercial level.
C – From a different manufacturer, in different quantities and/or at a different commercial level.
3 – “Commercial level of the importer” means the form of activity carried on by the importer, for example: wholesale, retail, or personal consumption.
4 – If there is a difference between the goods being valued and the identical goods in terms of quantities, commercial level and the costs referred to in paragraph (Fourth/B/1) of this Article, the transaction value of the identical goods shall be adjusted to take account of those differences, whether the adjustment leads to an increase or a decrease, and on the basis of conclusive evidence that clearly establishes the reasonableness and accuracy of the adjustments, such as a valid price list containing values relating to different levels or different quantities.
Example: If the imported goods being valued consist of 10 units and the only identical goods for which a transaction value exists involved 500 units, and there is a price list from the seller abroad containing different prices according to quantity, then in this case the adjustment may be made by resorting to that price list and applying the price appropriate to the quantity of the imported goods being valued. It is not necessary that the transaction for the identical goods was made in quantities of 10 units, as long as a valid price list exists based on sales in other quantities. However, in the absence of such an objective measure, it is not appropriate to determine the customs value under the provisions relating to the transaction value of identical goods.
5 – If, in applying this paragraph, more than one transaction value of identical goods sold at the same commercial level, in the same quantities and under the same conditions of sale is found (in terms of the manner of payment: cash or deferred), (and in terms of the condition of the goods at the time of sale: first production line goods, or “stock” goods such as remnants of production lines, factory clearance or end-of-season sales, etc.), the lowest of these values shall then be used.
Fifth/B/1 – The customs value shall be the transaction value of similar goods previously accepted as a customs value under the provisions of paragraph (Fourth) of this Article, on the basis that such similar goods were sold for export to one of the GCC States at or about the same date as the goods being valued were exported, from the same manufacturer, at the same commercial level as the importer, and in the same quantities as the imported goods being valued.
2 – If no such value is available, the transaction value of similar goods shall be used in the following order of priority:
A – From the same manufacturer, in different quantities and/or at a different commercial level.
B – From a different manufacturer, in the same quantities and/or at the same commercial level.
C – From a different manufacturer, in different quantities and/or at a different commercial level.
3 – “Commercial level of the importer” means the activity of the importer in the country of importation: wholesale, retail, or consumer.
4 – If there is a difference between the goods being valued and the similar goods in terms of quantities, commercial level and the costs referred to in paragraph (Fourth/B/1) of this Article, the transaction value of the similar goods shall be adjusted to take account of those differences, whether the adjustment leads to an increase or a decrease, and on the basis of conclusive evidence that clearly establishes the reasonableness and accuracy of the adjustments, such as a valid price list containing values relating to different levels or different quantities.
Example: If the imported goods being valued consist of 10 units and the only identical goods for which a transaction value exists involved 500 units, and there is a price list from the seller abroad containing different prices according to quantity, then in this case the adjustment may be made by resorting to that price list and applying the price appropriate to the quantity of the imported goods being valued. It is not necessary that the transaction for the identical goods was made in quantities of 10 units, as long as a valid price list exists based on sales in other quantities. However, in the absence of such an objective measure, it is not appropriate to determine the customs value under the provisions relating to the transaction value of similar goods.
5 – If, in applying this paragraph, more than one transaction value of similar goods sold at the same commercial level, in the same quantities and under the same conditions of sale is found (in terms of the manner of payment: cash or deferred; and in terms of the condition of the goods at the time of sale: first production line goods, or “stock” goods such as remnants of production lines, factory clearance or end-of-season sales, etc.), the lowest of these values shall then be used.
Sixth/1 – If a number of units of the imported goods themselves, or of identical or similar goods, are sold in different quantities, the unit price shall be the price at which the greatest number of units was sold.
Example (1): Goods are sold under a price list that grants favourable unit prices for purchases made in larger quantities. The following resulted:

Quantity of units sold	Unit price (SR)	Number of sales	Total quantity sold at each price
1 – 10 units	100	10 sales of 5 units 5 sales of 3 units	65
11 – 25 units	95	5 sales of 11 units	55
Over 25 units	90	one sale of 30 units one sale of 50 units	80

In this case, the quantity of (80) units is the greatest aggregate quantity sold at a single price, namely (SR 90); accordingly, the “unit price in the greatest aggregate quantity” is (90) SR.
Example (2): Two sales took place to two unrelated persons: the first involved (500) units sold at a price of (95) riyals per unit, while the second sale involved (400) units sold at a price of (90) riyals per unit.
In this case, the greatest number of units sold at a particular price in this example is (500); therefore, the unit price in the greatest aggregate quantity sold is (95) riyals.
Example (3): The following quantities were sold to unrelated persons at different prices, as shown below:-
Sales series:

Quantity sold (units)	Unit price (SR)
40	100
30	90
15	100
50	95
25	105
35	90
5	100

Totals:

Total quantity sold at a single price	Unit price (SR)
65	90
50	95
60	100
25	105

In this case, the greatest aggregate quantity sold at a particular price in this example is (65) units; therefore, the unit price in the greatest aggregate quantity is (90) Gulf riyals.
Sixth/1/A/4 – Where ownership of the goods being valued belongs to the seller or exporter outside the GCC States and the goods are sold on the basis of a consignment or agency commission, that “commission” shall be deducted, being the commission paid or customarily payable by the seller to the importer in return for the costs he bears in selling the goods locally.
2 – If, however, the goods being valued are sold for the account of the importer acting on his own account, the “profit and general expenses” shall be deducted, being the profit and general expenses that the importer adds to the selling price in the local market, unless they are not comparable and consistent with the amount of profit and general expenses usually added in sales in the GCC States of goods of the same class or kind as the goods being valued, imported from the same country or from other countries, in which case that usual amount shall be deducted on the basis of appropriate information from a source other than the importer.
3 – The amount of profit and the amount of general expenses should be taken together as a single whole. One of the two amounts may be inconsistent with its counterpart in a particular industry, but as long as their overall total is consistent with the usual total of “profit and general expenses”, it should be used. The amount to be deducted shall be determined on the basis of information supplied by or on behalf of the importer, and general expenses include the direct and indirect costs of marketing the goods in question.
4 – Goods of the same class or kind: goods that fall within a group or range of goods produced by a particular industry or industry sector, including, but not limited to, imported identical and similar goods, whether from the same country of production or export as the goods being valued or from another country.
Whether certain goods are of the same class or kind shall be determined on a case-by-case basis by reference to the circumstances surrounding the goods.
Sixth/3/1 – There may be cases in which, although the identity of the imported goods is lost, the value added by processing or manufacture can be accurately determined without unreasonable difficulty, provided that this is done on the basis of objective and quantifiable data relating to the cost of such work, relying on accepted industry formulas, recipes, methods of construction and other industry practices.
2 – On the other hand, there may also be cases in which the imported goods retain their identity but form such a minor element of the goods sold in the importing country that use of this valuation method would be unwarranted. In view of this, each case should be considered on its own merits.
Seventh/1 – As a general rule, the customs value shall be determined under this Article on the basis of information readily available in the GCC States. However, in using the computed value under basis (Seventh), it may be necessary to examine the costs of producing the goods being valued and other information which has to be obtained from outside the GCC States. In general, use of the computed value method is limited to cases where the buyer and the seller are related and the producer is prepared to supply to Customs the necessary costings and to provide facilities for any subsequent verification that may be necessary.
Seventh/1/A – The “cost or value” referred to in this paragraph shall be determined on the basis of information relating to the production of the goods being valued, supplied by or on behalf of the producer himself, and consistent with the generally accepted accounting principles of the country of export.
Where such information is available from another source, Customs shall, upon the importer’s request, notify him of the information that will be used and its source, subject to confidentiality in accordance with paragraph (First/3) of this Article.
2 – The cost or value referred to in this paragraph shall include:
(A) The costs of the elements set out in paragraphs (Fourth/B/1/(2) and (3)) of this Article.
(B) The costs of the elements specified in (Fourth/B/1/4) of this Article, apportioned in accordance with the provisions of paragraph (Fourth/B/1/4) of this Interpretative Annex, provided that the costs of the elements set out in paragraph (Fourth/B/1/4/D) that are undertaken in the GCC States shall not be included in the customs value as part of the cost of materials, except to the extent that they are borne by the producer in obtaining such elements. The value of the elements referred to in this paragraph may not in any case be counted twice.
Seventh/1/B/1 – The amount for profit and general expenses should be taken as a whole. Thus, if a producer’s profit is low and his general expenses are high, the two taken together as a whole may be consistent with the profit and general expenses usually reflected in sales of goods of the same class or kind.
2 – Where the figures supplied by the producer for profit and general expenses are not consistent with those usually reflected in sales of goods of the same class or kind as the goods being valued, made by producers in the country of export for export to the GCC States, in such a case the amount for profit and general expenses may be based on objective data, in accordance with paragraph (Second/11) of this Article, other than those supplied by or on behalf of the producer of the goods.
3 – The general expenses referred to in paragraph (Seventh/1/B) of this Article cover all direct and indirect costs of producing and selling the goods for export that are not included under paragraph (Seventh/1/A) of this Article.
4 – In determining the usual profit and general expenses under the provisions of paragraph (Seventh/1/B) of this Article, the narrowest group or range of goods of the same class or kind shall be examined, so as to include sales of identical or similar goods produced in the same country of production as the goods being valued and sold for export to the GCC States, including the goods being valued. Whether certain goods are of the same class or kind as other goods shall be determined on a case-by-case basis with reference to the surrounding circumstances.
Eighth/A – This paragraph does not provide a specific valuation method; rather, it requires that the customs value be determined as follows:
1 – Using reasonable means or methods.
2 – Consistent or in conformity with the general principles and provisions of the Customs Valuation Agreement and with Article VII of GATT 1994.
3 – On the basis of data available in the country of importation.
1 – Determination of value using reasonable means:
The customs value under the provisions of this paragraph shall be based, to the greatest extent possible, on the bases for determining customs value previously set out in paragraphs (Fourth) to (Seventh), with a reasonable degree of flexibility in their application in line with the objectives and provisions of the Valuation Agreement. If the customs value cannot be determined using those bases, the customs value may be determined using other logical methods, provided that:
1 – Such methods are not prohibited under paragraph (Eighth/B).
2 – Such methods are consistent and in conformity with the general principles and provisions of the Valuation Agreement.
Example:
A consignment arrived consisting of a machine leased for a fixed period, for example three years (representing the useful life of the machine), at a monthly rent of (2000) riyals. No identical or similar machine had previously been imported. The customs value of that machine could not be determined under the bases set out in paragraphs (Fourth to Seventh).
To determine the customs value of the machine, account is taken of the fact that there is no sale to which the transaction value can be applied, no identical or similar machine has previously been imported, the machine has not been resold in the GCC States, and there is no information on the cost of producing that machine. Accordingly, the customs value cannot be determined under paragraphs (Fourth to Seventh), even when applied flexibly. However, there is a reasonable means that may be used under paragraph (Eighth), namely using the full lease charges, which may represent the useful life of the machine (36 months x 2000 = 72000 riyals), as the customs value.
2 – General principles of the Customs Valuation Agreement:
A – Reliance, to the greatest extent possible, on the transaction value of the imported goods.
B – A uniform system of valuation.
C – Simple and equitable criteria.
D – Clear and neutral.
E – Consistent and in conformity with commercial practices.
3 – Data available in the country of importation:
Where data are available from a foreign source, this shall not in itself preclude the use of such data for the purposes of determining value under paragraph (Eighth) of this Article. However, as long as correct and accurate information is available in the GCC States, it should be used.
* Replaced by Decree No. 199 of 2008 (Kuwait Al-Youm, Issue No. 882, 3 August 2008).

Second: Temporary Admission

Pursuant to the provisions of Articles (89) to (94) of the Unified Customs Regulation (Law) of the GCC States, temporary admission shall be subject to the following conditions and procedures:

Article 2

A- The goods set out in Articles (89, 90) of the Unified Customs Regulation (Law) of the GCC States may be admitted, as set out in these Regulations, under the temporary admission regime for a period of six months, renewable, with collection of the customs taxes (duties) thereon suspended.
B- Customs taxes (duties) and other taxes (duties), if any, shall be secured by a bank guarantee or a cash guarantee, as the case may be, and in accordance with what the Director General decides.
C- The temporary admission regime shall end upon the re-export of the admitted goods outside the State, their deposit in free zones, customs stores or warehouses, or their entry for local consumption and the payment of the customs taxes (duties) due thereon, in accordance with the conditions and procedures decided by the Director General.

Temporary Admission of Machinery and Heavy Equipment

Article 3

A- Machinery and heavy equipment not available in the markets may be admitted for the completion of projects or for conducting practical and scientific trials pertaining to such projects for a period of six months, renewable for similar periods up to a maximum of three years, unless the period required to implement the project requires more than this period.
B- A project benefiting from temporary admission under these Regulations shall be a project implemented for the account of the State or an investment project whose implementation requires the admission of the machinery and equipment necessary for this purpose.

Article 4

A- Temporary admission shall not be permitted for spare parts, tyres, batteries and other consumable materials in projects.
B- The type and description of the admitted machinery and equipment may not be changed except after obtaining the approval of the Customs Administration.
C- The machinery and equipment may not be used except in the project for whose implementation they were admitted.

Article 5

The entity requesting permission for the temporary admission of the machinery and equipment necessary for implementing its projects shall:
1- Submit a copy of the contract or agreement concluded with the government entity for whose account the project is implemented.
2- Prepare a customs declaration in accordance with the approved form for temporary admission, declare all information, and attach the documents required under the Regulation (Law); the declaration shall also be subject to all customs procedures.
3- Submit a bank guarantee or a cash deposit in the amount of the customs taxes (duties) due on the date of registration of the customs declaration for their admission under the temporary admission regime.

Temporary Admission of Goods for Completion of Manufacture and Re-export

Article 6

Foreign goods may be admitted into the State with collection of the customs taxes (duties) thereon suspended, for the purpose of completing their manufacture for export, within a period not exceeding one year.

Article 7

The Director General shall issue instructions specifying the conditions to be met for granting temporary admission to the other types of goods set out in Article (90) of the Unified Customs Regulation (Law), provided that the admission period does not exceed six months.

Temporary Admission of Foreign Vehicles

Article 8

Foreign tourist cars (other than cars registered in a member State of the GCC States) shall be granted a temporary admission licence as follows:
1- A period of six months for cars guaranteed by an international carnet.
2- Three months for cars not guaranteed by an international carnet, extendable for a similar period if the person concerned submits bank guarantees or a cash deposit in the amount of the customs taxes (duties) due on the car.

Article 9

A- To benefit from the temporary admission provisions, the car shall meet the following:
1- The car shall be officially registered in the country in which it is licensed, under a document proving this.
2- The car’s licence shall be valid, and the car shall not bear export plates.
3- Insurance shall be produced from one of the companies approved in the State, covering its territory throughout the temporary admission period.
4- A recognised international carnet shall be produced to secure the customs taxes (duties).
B- To benefit from the provisions of these Regulations, the person wishing to obtain temporary admission for his car shall meet the following:
1- He shall be the owner of the car or authorised to drive it under a special power of attorney issued in the country in which the car is registered and duly authenticated.
2- He shall hold a valid residence in the country in which the car is registered, if he is not a national of that State.
3- He shall hold a valid driving licence.

Article 10

A- To benefit from the provisions of these Regulations, the international carnet shall be recognised by the Customs Administration, and the carnet’s period of validity shall cover the period of temporary admission of the car.
B- The following procedures shall be followed upon the entry of a car under an international carnet:
1- Recording the number and date of the temporary admission licence and the period granted thereunder on the carnet.
2- Detaching the relevant voucher from the carnet upon both entry and exit.

Article 11

Students and scholarship holders (other than nationals of the GCC States) studying at one of the universities or institutes in the State may renew the temporary admission period of their cars during the period of study or scholarship, provided that the cars are guaranteed by a valid international carnet.

Article 12

Temporary admission licences for cars shall be granted by the customs office in accordance with the provisions of these Regulations.

Article 13

A- The temporary admission licence shall contain all information relating to the car and the person concerned, in terms of the car’s plate number, chassis and engine, the make of the car and its colour, as well as the name, nationality and passport number of the person concerned.
B- The temporary admission regime for a foreign car shall end upon its exit from the State through one of the customs offices, its placement in the free zone, or its local clearance and the payment of the customs taxes (duties) due thereon, with the approval of Customs.

Third: Re-export of Goods

Pursuant to the provisions of Article (95) of the Unified Customs Regulation (Law) of the GCC States, the procedures, conditions and guarantees for the re-export of foreign goods brought into the State shall be as follows:

Article 14

Foreign goods entering the State on which customs taxes (duties) have not been collected may be re-exported. This shall include the following:
1- Imported goods that have not been withdrawn from customs stores.
2- Goods imported for the purpose of re-export that have been temporarily released against cash or bank guarantees covering the customs taxes (duties), within a period not exceeding six months from the date of release.
3- Goods admitted into the State under the temporary admission regime which their owners wish to re-export.
4- Goods deposited in warehouses as one of the customs taxes (duties) suspension regimes.

Article 15

A- Goods shall be re-exported under re-export declarations containing all the distinguishing particulars of the goods, prepared in accordance with what the Director General decides.
B- The person re-exporting the goods may be other than their importer, provided that the customs office approves this.
C- The number of the customs declaration under which the goods were imported shall be entered on the re-export declaration.
D- The goods shall be subject to customs examination and the customs procedures prescribed under the Unified Customs Regulation (Law).

Article 16

Pursuant to the provisions of Article (97) of the Unified Customs Regulation (Law) of the GCC States, customs taxes (duties) on foreign goods re-exported outside the GCC States shall be refunded, and the customs taxes (duties) collected thereon recovered, in accordance with the following controls:
1 – The exporter (re-exporter) shall be the importer in whose name the foreign goods were imported, or any other person once he proves to the Customs Administration beyond any doubt that he purchased the goods.
2 – The value of the foreign goods to be re-exported, and on which the customs taxes (duties) collected are to be recovered, shall not be less than five thousand US dollars (or its equivalent in local currency).
3 – A – The foreign goods shall be re-exported within one calendar year from the date of payment of the customs taxes (duties) thereon upon their first importation from outside the GCC States.
B – The refund of the customs taxes (duties) collected thereon shall be claimed within six calendar months from the date of re-export.
4 – The foreign goods to be re-exported shall be from a single consignment, in order to identify them and match them against the import documents; the consignment may be re-exported in parts once it is proven to the Customs Administration beyond any doubt that they are part of the same consignment.
5 – The claim for the refund of customs taxes (duties) shall be for foreign goods that have not been used locally after their importation from outside the GCC States, and in the same condition as at importation.
6 – The refund of customs taxes (duties) shall be limited to those actually paid on the foreign goods upon their importation.
7 – Customs taxes (duties) shall be refunded after the re-export of the foreign goods on which the refund of the customs duties (taxes) collected is sought, and after verification of all documents required for re-export.
8 – The agreed unified customs declaration shall be used upon the re-export to outside the GCC States of foreign goods on which recovery of the customs taxes (duties) collected is sought.
9- These controls shall apply immediately upon the commencement of application of the single point of entry and the joint collection and distribution of the customs duties (taxes) imposed on foreign goods.
10 – These controls shall be reviewed after three years from the date of their application, or whenever necessary, at the request of one of the member States, and the Financial and Economic Cooperation Committee shall have the right to interpret and amend these controls.
11- These controls shall have priority in application where they conflict with the regulations, laws and procedures applied in any member State.

Article 17

A- Land means of transport carrying re-exported goods shall be subject to the provisions relating to lead sealing, affixing seals, and the soundness of covers (tarpaulins) and ropes, and other provisions applicable to the transit regime.
B- Goods shall be re-exported within the period prescribed for them.
C- The customs taxes (duties) due on goods to be re-exported shall be secured by cash or bank guarantees.

Article 18

Re-export declarations shall be discharged, their entries settled, and the guarantees submitted returned, upon submission of one of the following proofs:
1- A copy of the re-export declaration stamped and signed by the competent customs officer at the customs exit point, evidencing the exit of the goods from the country.
2- A copy of the re-export declaration stamped and signed by the competent customs officer, evidencing the entry of the goods into the free zone.
3- A discharge certificate authenticated by the competent authorities in the country of destination, evidencing the entry of the re-exported goods thereinto.

Fourth: Exemption of Personal Effects and Gifts Accompanying Travellers

Pursuant to the provisions of Paragraph (B) of Article (103) of the Unified Customs Regulation (Law) of the GCC States, the rules and conditions for the exemption of personal effects and gifts accompanying travellers shall be as follows:

Article 19

Personal effects and gifts arriving with travellers shall be exempt from customs taxes (duties) where their value does not exceed (3000) three thousand Saudi riyals or the equivalent thereof in the currencies of the other GCC States.

Article 20

The following conditions shall be met in order to benefit from the exemption:
1 – The effects and gifts shall be of a personal nature and in non-commercial quantities.
2 – The traveller shall not be a frequent visitor to the customs office, nor a trader by profession in the goods in his possession.
3 – The number of cigarettes to which the exemption applies shall not exceed (400) four hundred cigarettes.

Article 21

Effects and gifts to which the exemption referred to in Articles (18 and 19) of these Regulations applies shall be subject to the provisions on prohibition and restriction set out in the Unified Customs Regulation (Law) of the GCC States and in the national legislation of each Member State.

Fifth: Exemption of the Requirements of Charitable Societies from Customs Taxes (Duties)

Pursuant to the provisions of Article (104) of the Unified Customs Regulation (Law) of the GCC States, the conditions and rules for exempting the requirements of charitable societies from customs taxes (duties) shall be as follows:

Article 22

A- The charitable society benefiting from the exemption shall be registered with the competent government entity in the State, and the purpose of its establishment shall be the provision of services in the humanitarian, social, cultural, scientific or religious fields, or any other charitable purpose, without the aim thereof being the realisation of material profit.
B- Societies whose purpose is political activity shall not benefit from the exemption from customs taxes (duties).

Article 23

For materials and supplies imported by a charitable society to be exempt from customs taxes (duties), the following conditions shall be met:
1- They shall be of a nature consistent with the purposes of the society and the activity it carries out in accordance with its articles of association.
2- The volume and quantity of the materials and supplies for which exemption is requested shall be commensurate with the actual needs that enable the charitable society to carry out its charitable activity.
3 – These materials and supplies shall be imported directly in the name of the charitable society.

Article 24

A – The society may not dispose of materials and supplies exempted from customs taxes (duties) for any purpose other than that for which they were exempted, and the management of the society shall be responsible therefor towards Customs.
B- Where the society wishes to sell consumed or used materials and supplies that were previously exempted from customs taxes (duties), it shall submit a written application to the Customs Administration to obtain approval of the sale after the necessary inspection thereof has been carried out.

Article 25

The competent government entity shall address the Customs Administration for the exemption of materials and supplies received by the charitable society from customs taxes (duties), on a case-by-case basis.

Sixth: Goods Subject to the Provisions of the Customs Zone and Conditions of Transport Within It

Pursuant to the provisions of Article (121) of the Unified Customs Regulation (Law) of the GCC States, goods subject to the provisions of the customs zone shall be treated as follows:

Article 26

The transport of goods subject to the provisions of the customs zone shall be accompanied by a transport permit issued by the customs office, specifying the following:
1- The name of the person concerned.
2- The distinguishing particulars of the goods, such as type, number, weight, origin and value.
3- The name, type and number of the means of transport, and the name of its driver.
4- The place from which the goods are to be transported and their destination.

Article 27

A- The possession of goods within the customs zone is prohibited except in the places specified by the Customs Administration.
B- The ordinary requirements of goods that may be acquired within the customs zone for the purpose of consumption shall be determined by a decision of the Customs Administration.

Article 28

The transport or possession of goods subject to the provisions of the customs zone, or moving about with them within the zone, in a manner contrary to the provisions of the Unified Customs Regulation (Law) and its Executive Regulations shall be deemed smuggling.

Seventh: Fines Imposed for Customs Violations

Without prejudice to the provisions of Articles (142), (143) and (144), and pursuant to the text of Article (141) of the Unified Customs Regulation (Law), the rules for imposing fines for customs violations shall be as follows:

Article 29

A fine of not more than twice the customs taxes (duties) and not less than the amount thereof, for the following violations:
1- A customs declaration (export, re-export) which would lead, without right, to benefiting from a refund of customs taxes (duties) or to the discharge of entries of goods admitted under temporary admission.
2- An unjustified excess or shortage relative to what is entered in the cargo manifest or any document serving in lieu thereof.
3- The use of materials covered by an exemption or by a reduced customs tariff for a purpose or aim other than that for which they were imported, or their exchange, sale or disposal without the approval of the Customs Administration and payment of the customs taxes (duties) due thereon, in accordance with Articles (99, 100 and 104) of the Regulation (Law) and the provisions set out in these Regulations.
4 – The disposal of goods under customs taxes (duties) suspension for purposes other than those for which they were admitted, or their substitution, without the approval of the Customs Administration and payment of the customs taxes (duties) due thereon.
5 – The refund of customs taxes (duties) or the attempt to obtain such refund.

Article 30

A fine of not less than (500) five hundred Saudi riyals and not more than (5000) five thousand Saudi riyals or the equivalent thereof in the currencies of the other GCC States, for the following customs violations:
1- Non-compliant customs declarations which would lead to evading any condition or restriction relating to import or export.
2 A customs declaration that is non-compliant as to value, type, number, weight, measurement or origin and which would lead to exposing customs taxes (duties) to loss, by declaring in the customs declaration what is contrary to the documents attached thereto that correspond to the actual condition of the goods, in accordance with the provisions of Article (47) of the Regulation (Law).
3- Changing the routes and paths specified in the transit declaration without the approval of the Administration, in accordance with the provisions of Article (71) of the Regulation (Law).
4- The absence of a cargo manifest for the goods, or the existence of more than one cargo manifest for the same goods, in accordance with the provisions of Articles (30/A, 36/A, 38) of the Regulation (Law).
5- Submitting the certificates necessary for the discharge and settlement of transit, temporary admission or re-export declarations contrary to the conditions specified by the Director General in accordance with the provisions of Article (68) of the Regulation (Law).
6- Violating the rules and conditions governing the deposit of goods in warehouses issued by the Director General in accordance with the provisions of Articles (74 and 75) of the Regulation (Law).
7- The berthing of ships, landing of aircraft or stopping of other means of transport in places other than those designated for them and licensed by the Administration, in accordance with the provisions of Articles (20, 21, 22 and 37) of the Regulation (Law).
8- The departure of ships, aircraft and other means of transport from ports or the customs zone without a licence from the Customs Administration, in accordance with the provisions of Article (41) of the Regulation (Law).
9- Transferring goods from one means of transport to another without the approval of the Administration, in accordance with the provisions of Articles (32 and 45) of the Regulation (Law).
10- Unloading goods from ships or other means of transport, or withdrawing goods, without a licence from the Customs Administration, or in the absence of its officers, or outside the times specified therefor, in accordance with the provisions of Articles (32, 40 and 45) of the Regulation (Law).
11- Obstructing officers of the Customs Administration from performing their duties and exercising their right of search, audit and inspection in accordance with the provisions of Part Thirteen of the Regulation (Law); this fine shall be imposed on every person who participated in such violation.
12- Failure to retain records, documents, instruments and the like during the period specified in Articles (115, 127) of the Regulation (Law).
13- Cutting the lead seals or removing the customs seals from goods.

Article 31

A fine of not less than (500) five hundred Saudi riyals and not more than (1000) one thousand Saudi riyals or the equivalent thereof in the currencies of the other GCC States, for the following customs violations:
1- Failure to submit the cargo manifest or any document serving in lieu thereof and the other documents upon import and export, as well as delay in submitting the cargo manifest or any document serving in lieu thereof beyond the specified period, in accordance with the provisions of Articles (30, 36, 39 and 41) of the Regulation (Law).
2- Failure to have the cargo manifest endorsed by the customs authorities at the port of shipment in the cases where such endorsement is required, in accordance with the provisions of Article (31) of the Regulation (Law).
3- Stating several packages, closed and combined in any manner whatsoever, in the cargo manifest or any document serving in lieu thereof as a single package, in accordance with the provisions of Article (44) of the Regulation (Law), subject to the instructions issued by the Director General regarding containers, pallets and trailers.
4- Omitting information that is required to be entered in the cargo manifest or any document serving in lieu thereof.
5- Importing by post closed parcels or boxes not bearing the approved labels, contrary to the provisions of Arab and international postal agreements and of national legislation, in accordance with the provisions of Article (43) of the Regulation (Law).
6- Any other violation of the provisions of ministerial decisions and instructions issued pursuant to the Regulation (Law).

Article 32

A fine of (200) two hundred Saudi riyals or the equivalent thereof in the currencies of the other GCC States for each day of delay, provided that the fine shall not exceed half the value of the goods, for violations consisting of delay in presenting goods dispatched in transit or for re-export to the customs office from which the goods will exit, or to the customs office to which the goods are consigned, after the expiry of the periods specified therefor in the customs declarations.

Article 33

A fine of (200) two hundred Saudi riyals or the equivalent thereof in the currencies of the other GCC States for each day of delay, on public transport vehicles and taxis arriving in the State, provided that the fine shall not exceed (10000) ten thousand riyals or the equivalent thereof in the currencies of the other GCC States.

Article 34

A fine of (1000) one thousand Saudi riyals or the equivalent thereof in the currencies of the other GCC States for each week of delay or part thereof, provided that the fine shall not exceed (20%) twenty per cent of the value of the goods, for violations consisting of delay in re-exporting goods admitted under temporary admission after the expiry of the period specified therefor in the customs declarations. As for tourist cars, a fine of (20) twenty Saudi riyals or the equivalent thereof in the currencies of the other GCC States shall be imposed thereon for each day of delay, provided that the fine shall not exceed (10%) ten per cent of the value of the tourist car, after the expiry of the period specified therefor in the temporary admission licence.

Published in the Official Gazette Kuwait Al-Youm on 2 September 2003.