Chapter one: General Provisions
Goods may be imported and transported to any other location within the country without paying customs duties, provided that a banking guarantee or documented pledge equivalent to the customs duties is presented, according to the instructions issued by the Chairman.
Bails, bank guarantees and securities shall be released under discharge certificates according to the conditions prescribed by the Chairman.
Chapter Two: Goods in Transit
Subject to the provision of Article 66 herein and the provisions of the Unified Economic Agreement of the GCC Arab States, goods shall be allowed to transit the territories of the Council states according to the applicable provisions and laws and the international agreements in force.
Transit operations may be completed only at the authorized Customs Administrations.
Subject to the provisions of the applicable regional and international agreements transit goods shall be transported through the specified routes by the various means of transport at the carrier's responsibility according to the instructions of the Chairman. The routes for the transit transportation and the conditions thereof shall be specified by a decision of the Chairman.
In the case of transfer from one customs zone to another, persons concerned may be exempted from submitting a detailed customs declaration at the entry point. The referral shall be carried out according to the documents and conditions specified by the Chairman.
The Competent Authority shall issue the necessary decisions governing the suspension of the customs duties and taxes applicable to all other kinds of transit transport.
Chapter Three: Warehouses
Warehouses may be established within or outside the customs zone by a decision of the Chairman or his delegate.
Goods may be deposited with the warehouses inside or outside the Customs Administration without payment of customs duties and taxes according to the rules and conditions prescribed by the Chairman.
The Competent Authority shall be entitled to supervise and control the warehouses, managed by other agencies, under the provisions of this law and the other laws in force.
Chapter Four: Free zones and duty-free markets
Free zones and duty-free markets shall be established by a law; the rules, conditions and customs procedures thereof shall be laid down by a decision of the Minister based on a proposal of the Competent Authority.
Subject to the provisions of Articles 78 and 79 herein, all foreign goods of whatever kind or origin may be brought into the free zones and duty-free markets, and taken out therefrom to outside the State or to other free zone and duty-free markets, without being subject to customs duties or taxes.
Subject to the export restrictions and customs procedures applicable to re-exportation, the foreign goods re-exported from inside the State may be admitted into the free zones and duty-free markets .
Goods in the free zones and duty-free markets shall not be subject to any restriction in respect to the period they can remain therein.
The imported goods, stated in the cargo Manifest, may not be transferred or admitted into the free zones and duty-free markets unless by approval of the Chairman Assistant and under the conditions and controls prescribed thereby.
The following goods may not be admitted into the free zones and duty-free markets:
1- Flammable goods, excluding the fuels necessary for the operation allowed by the Competent Authority supervising free zones and duty-free markets under the conditions prescribed by the competent authorities.
2- Radioactive materials
3- Arms, ammunition and explosives, of any kind, except those licensed by the competent authorities.
4- Goods infringing the laws relating to commercial and industrial property rights and copyright protection in respect of which resolutions have been issued by the competent authorities.
5- All kinds of narcotic drugs and derivatives thereof.
6- Goods originated in an economically boycotted State.
7- Goods prohibited from entering the State
The Customs Administration may carry out inspection works in the free zones and duty-free markets for detection of prohibited goods, and it may also review the documents and examine the goods when smuggling operations are being suspected.
The management of the free zones and duty-free markets shall submit to the Competent Authority, if so requested, a list of all the goods brought into or taken out therefrom
Goods placed at the free zones and duty-free markets may not be transferred to other free zones and duty-free markets, stores or warehouses unless according to the securities, undertakings and procedures prescribed by the Chairman.
Goods shall be withdrawn from the free zones and duty-free markets into the State according to the provisions of applicable laws and as instructed by the Chairman.
Goods taken out from the free zones into the Customs Administration shall be treated as foreign goods even if incorporating local raw materials or articles on which customs duties and taxes have been collected prior to their admission into the free zones.
National and foreign vessels shall be permitted to obtain all necessary marine equipment from the free zones.
The Department of the free zones and duty-free markets shall be held responsible for all the offences committed by its officers and for the goods illegally taken out from them. All laws and instructions relating to security, public health, smuggling and fraud control shall remain effective in these free zones and duty-free markets.
The goods imported from the free zones and duty-free markets into or out of the State shall be treated as foreign goods.
Chapter Five: Temporary Admission
Subject to the provisions provided for in the Unified Economic Agreement of the Council countries and the other international applicable agreements, goods shall be temporarily admitted without collection of customs duties and taxes according to the conditions set forth in the Rules of Implementation of this law.
The Chairman Assistant may grant temporary admission to the following:
Heavy machinery and equipment for completion of projects or for conducting the experiments and tests relating to such projects.
Foreign goods imported for completion of manufacturing.
Items temporarily imported for playgrounds, theatres, exhibitions and like events.
Machinery and equipment imported into the State for repair.
Containers and packing imported for refilling.
Animals admitted in for grazing.
Commercial samples for exhibition.
The other cases so requiring.
The items provided for herein shall be re-exported or deposited with the free zone, Custom Administrations or warehouses during the temporary admission period prescribed by the Rules of Implementation.
Provisions of the Unified Economic Agreement of the GCC states and the other international applicable agreements governing the temporary admission of vehicles shall be observed according to the instructions prescribed by the Rules of Implementation.
The materials and articles released by temporary admission may not be used, allocated or disposed of for purposes and objectives other than those for which they were imported and declared in the submitted declarations.
Any shortage develops in the goods released by temporary admission when taken out shall be subject to the customs duties “ taxes “ applicable at the time of admission.
The Rules of Implementation shall prescribe the conditions for practical application of the temporary admission and the guarantees to be produced.
Chapter Six: Re-exportation
The goods imported into the State, on which customs duties “taxes” were not collected, may be re-exported outside the State or to the free zone according to the procedures and guarantees prescribed by the Rules of Implementation
In certain cases, permission may be given for transshipment of the goods or withdrawal of the goods that were not placed into the customs warehouses, from the wharves to the ships under the conditions prescribed by the Chairman.
Chapter Seven: Drawback
Customs duties “taxes” collected on the foreign goods shall be totally or partially refunded at re-exportation according to the practices and conditions set forth by the Rules of Implementation.