STATE OF QATAR. Customs & Ports General Authority CUSTOMS LAW & EXECUTIVE REGULATIONS Version

Transcription

1 STATE OF QATAR Customs & Ports General Authority CUSTOMS LAW & EXECUTIVE REGULATIONS 2005 Version

2 SUBJECT CONTENTS PAGE Law No.: (40) For the year 2002 Part 1 : Definitions And General Provisions Part 2 : Customs Traiff Part 3 : Prohibition and Resstriction Part 4 : Disting uishing Elements of the Goods Part 5 : Importation and exportation Chapter (1) : Importation 1- Sea Carriage 2- Import of Goods by Land 3- Air Freight Chapter (2) : Exportation Chapter (3) : Post Mail Chapter (4) : Common Provisions Part 6 : Customs Clearance Stages Chapter (1) : Customs Declarations Chapter (2) : Examination (Inspection) Of Goods Chapter (3) : Provisions Relating to Passengers Chapter (4) : Adjustment of the Value Chapter (5) : Payment of Other Customs Charges and withdrawal of Goods Part 7 : Cases Pending Customs Duties & Cases of Refund Chapter (1) : General Provisions Chapter (2) : Goods in Transit Chapter (3) : Warehouses Chapter (4) : Free Zones & Duty-Free Shops Chapter (5) : Temporary Admission Chapter (6) : Re-exportation Chapter (7) : Drawback Part 8 : Exemptions Chapter (1) : Goods Exempted From Customs Duties

3 Chapter (2) : Diplomatic Exemptions Chapter (3) : Military Exemptions Chapter (4) : Personal Effects and Household Items Chapter (5) : Imports of the Charitable Organizations Chapter (6) : Returned Goods Chapter (7) : General Provisions Part 9 : Service Charges Part 10 : Customs Agents Part 11 : Rights & Duties Of The Authority Officers Part 12 : Customs Legal Actions Chapter (1) : Investigation of Smuggling Chapter (2) : Seizure Report Chapter (3) : Precautionary Measures Section (1) : Precautionary Seizure Section (2) : Preventing the Offenders & the Persons Accused of Smuggling from leaving the Country. Chapter (4) : Customs Offences & Penalties Thereof Chapter (5) : Smuggling & Penalties Thereof Section (1) : Smuggling Section (2) : Criminal Liability Section (3) : Penalties Chapter (6) : Pursuance (Pursuits) Section (1) : Administrative Pursuance (Pursuits) Section (2) : Prosecution of Smuggling offences Section (3) : Conciliatory Settlements Chapter (7) : Liability & Joint Liability Chapter (8) : Trials Procedures Part (13) : Sale Of The Goods Part (14) : Privilege of the Customs Administration Part (15) : Prescription Part (16) : Final Provisions Ministers Council Decree No. (21) for the year 2004 Customs Law Executive Regulations

4 Law No: (40) for the year 2002 in issuing the Customs Law 5

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6 State of Qatar Council of MinisterÕs Law No: (40) for the year 2000 in issuing the Customs Law We, Jassim Bin Hamad Al-Thani Deputy Emir of thr State of Qatar Subsequent to the reviewing of the amended provisional constitution, particularly the articles (22), (23), (34) and (51) thereof, The law No: (2) for the year 1962 in organizing the general financial strategy in Qatar amended by the decree to be canceled Law No: (19) for the year 1996, The Customs Law issued by the law No:(2) for the year 1988 amended by the law No:(25) for the year 1994, The law No: (5) for the year 1989 conerning the general budget of the state, The resolution of the Supreme Council of the Gulf Co-Operation Council for the Arab State issued at itõs twenty second session held in Sultante of Oman during the Period from Shawwal 1422, December 2001 concerning the Unified Customs Law for the Council states and itõs executive regulations, the Finance Minister proposal, the draft law presented by the Ministers Council and considering the advisory Council recommendation 7

7 We have decreed the Following law: Article (1) The Customs Law enclosed to this law shall be carried out. article (2) The Ministers Council shall issue, according to the Finance Minister proposal, and the Executive Regulation for the Customs Law and the Finance Minister shall issue the necessary decisions to execute itõs provisions. and until the Executive Regulation and the mentioned decisions are issued, the on going decisions shall be carried out without conflict to this law provisions. Article (3) The mentioned Customs Law issued by the law No: (5) for the year 1988 shall be eliminated as well as every provision opposing this law provisions. Article (4) All competent entities shall execute this law and to be carried out effectively from first of January 2003 and to be published in the Official Journal. Jassim Bin Hamad Al-Thani Deputy Emir Of State of Qatar Issued at the Amiri Diwan on 17/10/1423 8

8 Part (1) Definitions and General Provisions 9

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10 Article (1) Part (1) Definitions and General Provisions In this Law and the executive regulations thereof unless the context otherwise requires: The Council : Means the Gulf Cooperation Council for the Arab States of the Gulf. The Minister : Authority : Director General : The Administration: Means the Minister of Finance. Means Customs & Ports General Authority. Means the General Manager of the Authority. Means the Competent Administration in the Authority Customs station : Means the station, appointed by the Authority at each seaport, airport, land port or at any other place where there is an office of the Authority authorized to complete all or some of the customs procedures. The Director : Customs zone : Means the director of a Customs station Means the lands or that part of seas subject to the customs control and procedures set forth herein which include:- (A) Land customs zone: Which covers the lands located between the land boundaries or shores, on 11

11 the one hand, and an internal line to be prescribed by a decision of the authority on the other hand? (B) Sea customs zone: Which includes that part of the sea located between the shores and the end boundary of the territorial waters. Customs line : Means the line that march with border line the political separating between the country and the neigh touring states and the seashores surrounding that country. Unified customs tariff : Means the nomenclature containing the descriptions of the goods and the respective customs duties as well as the rules and notes of the kinds and types of goods. Customs duties : Mean the amounts levied on goods according to the provisions of this Law. Charges : Means the amounts collected for the services rendered. Goods : Means any natural, material, or animal, agricultural, industrial or intellectual product. Type of goods : Means the description mentioned in the customs tariff nomenclature. Goods subject to Goods subject to high customs duties : Means goods specified by the General Manager for 12

12 high customs duties : the purpose of customs control. The price actually paid or payable : The price actually paid or payable : Means the total amount paid or payable to the seller, directly or indirectly, for the goods imported by the buyer or for his benefit. The The imported imported goods goods pending appraisement: pending appraisement: Means the goods being evaluated for customs purposes Identical goods: Means goods that are identical in all respects, including material characteristics, quality and commercial reputation, minor differences in appearance would not preclude goods from being regarded as identical. Similar goods : Means goods which, although not identical in all respects, have similar characteristics and similar component materials which enable them to perform the same functions and to be commercially interchangeable, the quality of the goods, their reputation and the existence of a trademark are among the factors to be considered in determining whether the goods are similar. Sales commission: Means the commission payable to the seller's agent who is connected to the seller or the factory, governed by or acting for its favor or on its behalf 13

13 Packing costs : Means the cost of all packing and coverings (excluding instruments of international traffic" whether for the labor or the materials used for placing the goods in packing suitable for shipping to the GCC states. Unit price at the biggest large- scale total quantity : means the unit price at which certain goods are sold to unrelated persons, at the first commercial level after importation, in its states when imported or after further preparation or processing, if the importer so requested. Related persons: Means persons who are: a) legally recognized partners in business. b) officers or directors of one another's business. c) employer and employees. d) any person directly or indirectly owns, controls or holds 5 per cent or more of the portions or stock shares which entitles him to vote or both of them. e) any two persons one of them directly or indirectly controls the other. f) any two persons both of them are directly or indirectly under the supervision of a third person. g) any two persons jointly directly or indirectly 14

14 control a third person. h) members of the same family. Value Agreement: Means the Agreement on Implementation of Article VII of the GATT Origin of the goods: Prohibited goods: Means the country of production of the goods. Means any goods the import or export of which is prohibited by the state under the provisions of this "Law "or any other "law ". Restricted goods: Means those goods the import or export of which is restricted under the provisions of this regulation "law "or any other regulation "law " Source : Means the country from which the goods are imported. Importer : Means the natural or juristic person importing the goods. Exporter : Means the natural or Juristic person exporting the goods. Manifest : Means the document containing a full description of the goods carried on the various means of carriage. Free zone : means a part of the state territories in which commercial or industrial activities are exercised under the and regulation laws relating thereto any goods entering that zone are considered to be 15

15 outside shall not be subject to the ordinary customs procedures. Means that licensed building or place wherein goods are placed free of customs duties for Duty-free shop: Customs declaration: purposes of display and sale. Means the goods declaration or the declaration submitted by the importer or his representative describing the elements identifying the declared goods and quantity thereof in details according to the provisions of this " law ". Storehouse : means the place or building intended for the temporary storage of goods pending the withdrawal thereof in accordance with one of the customs procedures whether such place/building is directly administered by the Authority or by the public institutions or corporations or the investing bodies. Warehouse : means the place or building wherein the goods are deposited under supervision of the Authority free of customs duties according to the provisions of the Law. Carrier : Means the owner of the means of carriage or the authorized representative thereof Specified routes: Mean the routes specified by a decision from the authority for the carriage of the imported or exported 16

16 or transshipped goods. Treasury : Customs Clearance : Means the state public treasury means documentation of the customs declarations for the imported, exported and transshipped goods according to the procedures provided for herein. Customs broker: means natural or Juristic licensed to practice customs clearing on behalf of others. Representative of the customs broker : means any natural or juristic person licensed to follow up customs procedures. Article (2) The provisions of this "law "shall apply to lands subject to the state sovereignty and territorial waters of the country. Notwithstanding, free zones, totally or partially exempted from customs provisions, may be established in such lands. Article (3) Any goods crossing the customs line, for importation or exportation, shall be subject to the provisions of this law. Article (4) The Authority shall perform its functions at the customs station or customs zone and May also exercise its powers within the extent of the state land and territorial waters according to the conditions set forth herein. 17

17 Article (5) Customs stations shall be established by a resolution of the Minister The Competence and work hours thereof shall be specified by a resolution of decision of the authority. Article (6) Subject to the provisions of the second part of chapter 6, customs procedures shall only be conducted at the competent customs stations. 18

18 Part (2) Customs Tariff 19

19 Part (2) Customs Tariff Article (7) Goods imported into the state are subject to the customs "duties" specified in the unified the customs tariff, and the charges, excluding those exempted under the provisions of this " law "or under the Unified Economic Agreement of the GCC Arab states or any other agreement within the framework of the Council. Article (8) The rate of the customs tariff shall be either ad Valorem (percentage of the value of goods) or per unit (an amount levied on each unit of the goods), or both. Article (9) Customs" duties" shall be levied, amended and abolished by a decree taking into consideration the provisions of the international agreements in force, and the resolutions issued by the council. The amended decree shall specify the date on which such amended "duties" shall be effective. Article (10) Imported goods are subject to the customs "duties" applicable at the date of registering the customs declaration with the customs station unless otherwise provided for in the text of the resolutions amending the customs tariff. 20

20 Article (11) When custom duties are to be levied on the goods deposited at the warehouse due to the expiry of the warehousing period, such goods shall be subject to the tariff provisions applicable on the date of registering the customs declaration. Article (12) Goods taken out from the free zones and duty-free shops into the local markets are subject to the customs tariff effective at the date of such taking out. Article (13) Smuggled or constructively smuggled goods or are subject to the customs tariff applicable at the time of the detection or occurrence of the smuggling, if it is possible to be ascertained whichever is higher. Article (14) The customs tariff applicable on the date of sale shall apply to the goods sold by the Authority in accordance with the provisions provided for herein. Article (15) Damaged goods shall be subject to the applicable customs tariff based on their value at the condition thereof at the time of the registration of customs declaration. 21

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22 Part (3) Prohibition and Restriction 23

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24 Article ( 16 ) A customs declaration shall be submitted on any imported or exported goods the goods shall be presented to the customs authorities at the nearest customs station. Article (17) Marine means of transport entering the country, irrespective of their load capacity, are prohibited from anchoring in any seaports (harbors) other than those designated for their anchoring, excluding the circumstances arising out of sea emergency or force majeure in such case the master the shipmaster shall without delay notify the nearest customs station or security center of such circumstances. Article (18) Vessels, of loading capacity less than two hundred marine tons loaded with prohibited or restricted goods or goods subject to high rates of duty, may not enter or pass within the marine customs zone except in circumstances arising from sea emergency or force majeure, in which case the master shall promptly notify the nearest customs enclosure or security center of such circumstances, excluding goods transported within the local seaports of the country whose customs procedures have been finalized. Article (19) Part (3) Prohibition and Restriction Aircraft departing or arriving in the country may not take off or land 25

25 except at the airports where customs stations exist unless in cases of force majeure in which case the pilot shall promptly notify the nearest customs station or security center of such cases and submit a report, approved by the customs station notified of that case, unless otherwise provided for in any other law Article (20) Land means of transport may not enter or leave the country except through the areas where customs enclosures exist. Article (21) The Customs Administration prohibits admission, transit or exit of the prohibited goods or on the contravening goods as well as the entry, transit or exit of the restricted goods except with an approval issued by the competent authorities in the state. Article (22) Prohibited and restricted goods and goods subject to high custom duties as well as other goods determined by the General Manager by virtue of a decision to be issued thereby shall subject to the custom zone rules. The executive regulations of this law shall determine the conditions of transportation within this zone and the necessary documents and procedures therefore. 26

26 Part (4) Distinguishing Elements of the Goods (Origin- Value- type) 27

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28 Part (4) Distinguishing Elements of the Goods (Origin- Value- type) Article (23) Imported goods are subject to the proof of origin rules provided for in the agreements concluded within the framework of the international or regional economic organizations. Article (24) The value of goods for customs purposes shall be calculated according to the rules and basis of this Law set forth in the executive regulations. Article (25) Approval of the value as a distinctive element of the goods requires the following: 1. Any customs declaration shall be accompanied with a detailed original invoice and the director general or whom he may delegate may allow finalization of the clearance procedures without presentation of the authenticated original invoices and the required documents against an undertaking to produce them within a period not exceed 90 days from the date of the undertaking. 2. The value of the goods shall be proved by submitting all invoices and documents reveres the value thereof according to the basis set forth in the executive regulations of this Law. 3. The customs office may require the submission of tracts, 29

29 correspondences and other relevant documents without being bound to accept all that is stated therein or in the invoices. 4. The Administration may request Arabic translation of the invoices issued in a foreign language showing details of the goods in accordance with the customs tariff as well as the other documents, if so needed Article (26) The value of the exported goods is the value at the time of registration of customs declaration plus all the costs until arrival of the goods to the customs enclosure Article (27) Goods not mentioned in the customs tariff (Nomenclature) and the explanatory notes thereof are to be classified according to the publications of the World Customs Organization relating thereto. Goods that fall under local subheadings in the customs tariff Nomenclature are to be classified within the context of the Council states. 30

30 Part (5) Importation and exportation 31

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32 Article (28) Part (5) Importation and exportation Chapter (1) Importation 1. Sea carriage Any goods imported into the country by sea shall be registered in the manifest. A single manifest for the whole load signed by master shall be made which shall contain the following information: 1 - Name and nationality of the vessel and its registered load. 2 - Types of the goods, total weight thereof and the weight of bulk goods (if any) if goods are prohibited, their actual designation shall be mentioned. 3 - Number of packages and pieces, description of packing, marks andnumbers thereof. 4 - Names of the consignor and consignee. 5 - The seaports where the goods are shipped from (ports of loading). Article (29) When entering the customs zone, the master shall produce the original manifest to the competent authorities. When the vessel enters the harbor, the master shall submit to the customs office the following information and documents: 33

33 1 - The (manifest). 2 - The manifest of the vessel supplies and the crew's luggage and the commodities belonging to them. 3 - A list of the passengers' names. 4 - A list of the goods to be discharged at this port. 5 - All the shipping documents which the customs enclosure may require for application of the customs regulations. The required information and documents shall be submitted within (36) hours from the time of entering the port official holidays shall not be calculated in this time limit. Article (30) If the waybill belongs to a vessel that does not make regular voyages or that does not have a forwarder at the port, or if it is a sail vessel, then the manifest must be endorsed by the customs authorities at the shipping port. Article (31) Cargo of the vessel and all other marine means of shipping may be unloaded only within the customs zone at the port. Any shipment may be unloaded or transshipped only under supervision of the customs office. Unloading and transshipment shall be completed as per to the conditions laid down by the General Manager. Article (32) Subject to the provisions of Article (53) herein the master, forwarder or his representative shall be held responsible for any shortage in the number 34

34 of pieces or packages or the contents thereof or the amount of the bulk goods until delivery of the goods to the customs storehouses or at the warehouses or to the owners thereof, if so allowed. Article (33) If a shortage in the number of unloaded pieces or packages or in the amount of bulk goods, compared to those mentioned in the manifest, is found out, the master or his representative shall explain the causes of such shortage and prove the rough documents that it has occurred outside the marine customs zone. If such documents cannot be submitted at once, a time limit not exceeding six months may be given to submit the same against a guarantee ensuring the Administration's rights. 2. Import of goods by land Article (34) Customs procedures of the goods imported by land should be completed at the nearest customs station and may be referred to another inland customs station, in cases to be decided by the General Manager. Article (35) A manifest of the total cargo of any land means of conveyance shall be prepared and signed by the carrier or his representative and shall contain adequate information on the means conveyance, its cargo and all other details as per to the conditions specified by the General Manager. Carriers or their representatives shall submit the manifest to the customs station immediately upon arrival thereinto. 35

35 3. Air Freight Article (36) Subject to the provisions of Article (19) herein, aircraft crossing the state airspace shall follow the specified routes therefore and shall land only at the airports where customs stations exist. Article (37) A manifest of the airplane's cargo shall be prepared and signed by the captain according to the conditions set forth in Article (28) and paragraphs 1 and 2 of article 29 herein. Article (38) The captain or his representative shall submit the manifest and the lists mentioned in the preceding article herein to the customs officers and shall hand over these documents to the customs station upon the arrival of the aircraft. Article (39) Goods may not be unloaded or dropped out of aircrafts during flight unless it is necessary to do so for safety reasons, provided that the customs station shall be notified of the same. Chapter (2) Exportation Article (40) Owners of the means of conveyance of goods or their agents, loaded or unloaded, shall- when leaving the country- submit to the customs station the manifest as per the provisions of chapter 1 of this part and shall obtain 36

36 exit permission. However, the General Manager, may, in certain cases, make an exception to this condition. Article (41) Exporters of goods shall pass with the goods to be exported through the competent customs station and declare them in details. Carriers towards land borders are prohibited to overpass the customs station. Chapter 3 Post Mail Article (42) Goods may be imported or exported by mail in accordance with the provisions of this law and subject to the other applicable international postal agreements and local Laws and regulations in force. Chapter 4 Common provisions Article (43) Several sealed packages, assembled in any way whatsoever, may not be stated in the manifest as a single package. Containers, closets and trailers are subject to the instructions given by the General Manager. A single consignment may not be splitted. However, for acceptable reasons, the Director General may allow such splitting, provided that such splitting shall not result in a loss to the treasury. Article (44) Provisions of Articles 31, 32, and 33 herein shall apply to the land and air conveyances in respect to the unloading and transshipment of goods. 37

37 Drivers, captains of aircrafts and transportation company's carriers shall be responsible for any shortage in the goods. Article (45) The Authority may exchange with other bodies the information's relating to customs clearance through electronic means. 38

38 Part (6) Customs clearance Stages 39

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40 Article (46) Part (6) Customs clearance Stages Chapter (1) Customs declarations When clearing any goods, even if exempted from customs duties, a detailed customs declaration, as in the approved forms shall be submitted to the customs office containing all the information that enable in application of the customs regulations and levying applicable customs duties and for the purposes of statistics. Article (47) Subject to the provision of paragraph (1) of Article 25 herein, The General Manager shall specify the documents that must be attached with the customs declarations and the information to be contained therein and shall allow the completion of the clearance procedures in the absence of any of the required documents against cash or bank guarantees or a written undertaking to submit such documents according to the conditions specified thereby. Article (48) Contents of the customs declarations may not be modified after registration; however, the declarant may apply in writing to the Director for correction before the customs declaration is referred to inspection. 41

41 Article (49) Owners of the goods or their representatives may check their goods before submitting the customs declaration and may take samples thereof, when necessary, after obtaining permission from the Director and under supervision of the customs station. Such samples shall be subject to the applicable customs duties. Article (50) No parties other than the owners of the goods or their representatives may have access to the customs declarations and documents excluding competent judicial or official authorities. Chapter (2) Examination (Inspection) of goods Article (51) The authorized customs officer shall examine the goods wholly or partially after registering the customs declarations as per to the instructions of the General Manager. Article (52) Examination of goods shall take place at the customs station; however in certain cases such examination may be conducted outside the customs station according to the regulations laid down by the General Manager. Transferring the goods to the place of examination and the unpacking and repacking of packages and all other works required for such examination shall be at the expense of the owner thereof who will be 42

42 responsible thereof until the arrival of the goods at the place of examination. Goods placed in the customs storehouses or at the places intended for examination may not be removed there from without the approval of the customs station The individuals who work in carrying goods and presenting them for examination shall be acceptable to the customs station. access to the store houses, warehouses, enclosures, sheds and yards intended for the storage or deposit of goods and to the places allocated for examination may not be authorized to any person without approval of the customs station. Article (53) Examination shall be conducted only in the presence of the owner of the goods or the representative thereof. Should a shortage in the contents of the packages shown up, the responsibility thereof shall be determined as in the following order:- 1 - If the goods had been placed in the customs storehouses and warehouses in packages that are in an apparently proper condition from which it can be ascertained that the shortage in their contents had occurred at the exporting country prior to shipping, then the detection of such shortage shall be disregarded. 2. If the goods entering the customs storehouses or warehouses are in packages that are in an apparently improper condition, the body in charge of these storehouses or warehouses shall, together with the carrier, record this incidence in the delivery report and ascertain 43

43 of the weight, contents and number of thereof. It shall also take the necessary precautions to ensure safety of the goods, in such case the carrier shall be held responsible unless a reservation is indicated on the manifest and endorsed by the customs office of the exporting country in which case the detention of such shortage shall be disregarded. 3. If the goods have been admitted into the customs storehouses warehouses in packages that are in an apparently proper condition then became subject of suspicion thereafter, the body in charge of such storehouses and warehouses shall be responsible there from. Article (54) When the customs station suspects the presence of prohibited or different than stated in the customs documents, it shall have the right to open the packages for inspection in the absence of the owner thereof or his representative, if he refrains from attending the inspection at the specified time although being notified therewith. When necessary, the customs station may inspect the goods before notifying the owner or his representative. Such inspection may be conducted by a committee to be formed for this purpose, by a decision of the General Manager and a report of the findings of inspection shall be made. Article (55) The customs station may have the goods analyzed by specialized agencies to verify the kind and specifications thereof or their conformity to the provisions of the regulations and laws in force. 44

44 Goods requiring the availability of certain conditions and specifications to be released shall be subject to analysis (testing) and inspection; however the Director may release such goods adequate guarantees ensuring that such goods shall not to be disposed of until the analysis result was produced. The General Manager may order that the goods, proved through inspection or analysis to be harmful or not conforming to the approved specifications, be destroyed on the expense and in presence of the owners thereof or their representatives. When necessary, such goods shall be re-exported to the source country of origin in which case a report of the same shall be made. Article (56) If the customs office cannot verify the correctness contents of the customs declaration through inspection of the goods or the documents submitted, it may suspend inspection and request necessary supporting documents. Article (57) Customs duties shall be levied according to the contents of the customs declaration. Should inspection resulted in a difference (discrepancy) between the goods and what is stated in the customs declaration, customs taxes and duties shall be levied on the basis of this finding without prejudice to the authority's right to levy the applicable fines, when necessary, under the provisions herein? 45

45 Article (58) The customs station may re-inspect the goods according to the provisions of Articles herein. Chapter (3) Provisions relating to passengers Article (59) Items or belongings accompanying the passengers shall be declared and inspected at the competent customs station according to the rules and practices laid down by the General Manager. Chapter (4 ) Adjustment of the value Article (60) A valuation committee composed of officers from the administration shall be established by a resolution of the General Manager to settle the disputes arising between the customs station and the persons concerned about the value of the imported goods. Such committee may seek assistance of experts at its discretion. Without prejudice to the importer's right to resort to court, the importer may complain before the valuation committee against the decisions of increased value within fifteen days following the registration of the customs declaration or from the date of the valuation notice sent to him by registered mail. Decisions of this committee shall be taken by majority and 46

46 shall be effective once approved by the General Manager. The importer shall be informed in writing of the decision taken by the committee concerning his complaint. The reasons for such decision shall be stated therein. Article (61) Should a dispute arise between the competent customs officer and the owner of the goods about the value of the goods due to discrepancy in description, origin or any other reason, the matter shall be referred to the Director. If the director confirmed the opinion of the customs officer but the owner of the goods does not accept such confirmation, the matter shall be referred to the General Manager for settlement of dispute or for referral to the valuation committee. The Director may allow with drawl release the goods in dispute, if not prohibited, after collecting a deposit in an amount equivalent to the sum of the customs duties determined by the customs station. Samples of the goods shall be temporarily maintained for reference when necessary; such samples shall be returned to the owner of thereof unless they are consumed for inspection and analysis purposes. 47

47 Chapter (5) Payment of other customs charges and withdrawal of goods Article (62) Goods shall be subject to customs duties and may not be withdrawn unless after completion of relevant customs procedures and payment of customs duties and any other charge according to the provisions herein. Goods shall be delivered to the owners or their duly authorized representatives according to the procedures prescribed by the General Manager Article (63) The customs officers assigned to collect customs duties shall execute an official receipt voucher in the form prepared by the Authority. Article (64) When a state of emergency is declared, the Authority may precautions for withdrawal of the goods against special guarantees and conditions to be determined by the Authority. Article (65) According to the regulation and conditions issued by the General Manager, goods may be with drawn prior to payment of the customs duties and after completion of the customs procedures, against bank, monetary or documentary guarantees. 48

48 Part (7) Cases Pending Customs Duties and Cases of Refund 49

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50 Part (7) Cases pending customs Duties and cases of Refund Chapter (1) General Provisions Article (66) Goods may enter the state and he transported to any other place within the country without payment of customs duties against submission of a bail monetary or a bank guarantee equivalent to the amount of the customs duties levied thereon according to the instructions issued by the General Manager. Article (67) Monetary bails, bank guarantees and securities may be released against certificates of discharge according to the conditions determined by the General Manager. Article (68) Chapter (2) 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 are allowed to transit the territories of the Council member states according to the provisions of the Law and international agreements in force. Article (69) Transit operations shall not be passed except at the authorized customs station. 51

51 Article (70) Subject to the provisions of the regional and international agreements in force transit goods shall be transported through the routes specified therefore by the various means of transport at the carrier's responsibility according to the instructions issue by the Director General. The routes for such transit transportation and the conditions thereof are to be determined by a resolution of the Authority. Article (71) In the event goods are transported from one customs station to another, the persons concerned may be exempted from submitting a detailed declaration at the port of entry and the referral shall be according to the documents and conditions prescribed by the General Manager. Article (72) The Authority shall issue the necessary resolutions governing pending customs duties applicable to all other kinds of transit goods transportation. Chapter (3) Warehouses Article (73) Warehouses inside or outside the customs station shall be established by a resolution of the Authority; the regulations and conditions controlling such warehouses shall be laid down by the General Manager. Article (74) Goods may be deposited with the warehouses inside or outside the customs station without payment of customs duties according to the 52

52 regulations and conditions determined by the General Manager Article (75) The Authority shall have the right to supervise and control the warehouses managed by other agencies, according to the provisions of Law. Chapter (4) Free zones and duty-free shops Article (76) Free zones and duty free shops shall be established by virtue of a Law the regulations conditions and procedure thereof shall be laid down by a resolution of the Minister based on the Authority recommendation. Article (77) 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 shops, and taken out there from to outside the state or to other free zone and duty-free shops, without being subject to customs duties. Subject to the export restrictions and customs procedures applicable to re-exportation, the foreign goods re-exported from the state may be admitted into the free zones and duty-free shops. Goods in the free zones and duty-free shops shall not be subject to any restriction in respect to the period of remaining therein. Article (78) The goods, stated in the manifest as imported goods, may not be transferred or brought into the free zones and duty-free shops unless by approval of the General Manager and according to the conditions and 53

53 restrains prescribed thereby. Article (79) The following goods are prohibited to be brought into the free zones and duty-free shops: 1 - Flammable goods, except the fuels necessary for the operation allowed by the authority supervising free zones and duty-free shops according to the conditions prescribed by the competent authorities. 2 - Radioactive materials 3 - Arms, ammunition and explosives, of whatever nature, except those licensed by the competent authorities. 4 - Goods infringing the legislations relating to commercial and industrial, intellectual or Artistry property rights 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 country. 7. Goods prohibited from entering the state. Article (80) The Authority may carry out inspection works in the free zones and duty-free shops for goods prohibited to be brought the rein, and it may also review the documents and examine the goods when smuggling operations are being suspected. Article (81) The manager of the free zones and duty-free shops shall submit to the Authority, when requested, a list of all the goods brought into or taken out 54

54 there from. Article (82) Goods placed at the free zones and the duty-free shops shall not be transferred to other free zones and duty-free shops, stores or warehouses unless according to the securities, undertakings and determined prescribed by the General Manager Article (83) Goods may be withdrawn from the free zones and duty-free shops into the state according to the provisions of applicable regulations and as instructed by the General Manager. Article (84) Goods taken out from the free zones into the customs station are treated as foreign goods even if incorporating local raw materials or articles on which customs duties and have been collected prior to their admission into the free zones. Article (85) National and foreign vessels shall be permitted to obtain all needed maritime equipment from the free zones. Article (86) The administration of the free zones and duty-free shops shall be responsible of all offences committed by its employee and for the unauthorized illegally taken out of goods there from. All regulations and instructions relating to security, public health, smuggling and fraud control shall be applied thereon 55

55 Article ( 87 ) The goods taken from the free zones and duty-free shops into or out of the state shall be treated as foreign goods. Chapter (5) Temporary Admission Article (88) Subject to the provisions of the Unified Economic Agreement of the Council states and the other international agreements in force, goods may be temporarily admitted without collection of customs duties thereon according to the conditions set forth in the Executive Regulations hereof. Article (89) The General Manager may grant temporary admission license for the following: 1 - Heavy machinery and equipment to carry off projects or for conducting the scientific and practical experiments relating to such projects. 2 - Foreign goods imported for completion of processing. 3 - Items temporarily imported for playgrounds, theatres, exhibitions and the likes. 4 - Machinery, Appliances and equipment imported into the country for repairing. 5 - Containers and packing imported for filling. 6 - Animals admitted in for grazing. 7 - Commercial samples for display. 8 - Other cases that may require such temporary admission. 56

56 The items provided for herein shall be re-exported or deposited with the free zone, customs station or warehouses during the temporary admission period prescribed by the Executive Regulations hereof. Article (90) Provisions of the Unified Economic Agreement of the GCC States and the other international agreements in force governing the temporary admission of vehicles shall be observed according to the instructions prescribed by the Executive Regulations hereof. Article (91) The materials and articles released by temporary admission may not be used, allocated or disposed of for purposes other than those for which they were imported and declared in the submitted declarations. Article (92) Any discovered shortage in the goods released by temporary admission when taken out shall be subject to the customs duties applicable thereon at the time of admission. Article (93) The Executive Regulations shall prescribe the conditions for practical application of the temporary admission and the guarantees to be produced. Chapter (6) Re-exportation Article (94) The goods imported into the country, on which customs duties were not collected, may be re-exported outside the country or may be taken to the 57

57 free zone according to the procedures and guarantees prescribed by the Executive Regulations hereof. Article (95) In certain cases, permission may be granted for transshipment of the goods or withdrawal of the goods that were not placed into the customs warehouses, from the wharves to the ships according the conditions prescribed by the General Manager. Chapter (7) Drawback Article (96) Customs duties collected on the foreign goods shall be totally or partially refunded at re-exportation according to the rules and conditions set forth by the Executive Regulations hereof. 58

58 Part (8) Exemptions 59

59 60

60 Article (97) The goods specified to be exempted from customs duties and in the unified customs tariff of the GCC states shall be exempted from customs duties. Part (8) Exemptions Chapter (1) Goods exempted from customs duties Article (98) Chapter (2) Diplomatic exemptions Imports of the diplomatic corps, consulates, international organizations and the members of the diplomatic and consular corps accredited by the government shall be exempted from customs duties on reciprocity basis according to the international agreements, laws and orders in force. Article (99) The goods exempted under the preceding Article herein may not be disposed of or abandoned for a purpose other than that for which they have been exempted,unless after notifying the Administration, and payment of the due customs duties. Customs duties are not to be levied if the beneficiary has disposed of the goods, exempted goods after three years from the date released by the customs station provided that reciprocity basis is available. 61

61 Article (100) Exempted vehicles in accordance of the provisions of Article 98 herein may not be disposed of before the elapse of three years following the date of exemption excluding the following cases: 1 - Termination of the mission of the diplomatic or consular member benefiting from the exemption in the state. 2 - The occurrence of an accident to the exempted vehicle which makes it unfit for the use of the diplomatic or consular member based on a joint recommendation by both the Traffic Department and the Administration. 3 - The sale by one diplomatic or consular member to another member provided that the assignee shall be entitled to the right of exemption. Article (101) The right of exemption for the individuals benefiting from it according to Article (98) herein shall begin from the date of commencing their jobs at their official places of work in the State Chapter (3) Military exemptions Article (102) Imports for all sectors of the military forces and internal security forces, such as ammunitions, arms, equipment, military means of transport and parts thereof and any other materials, shall be exempted from customs 62

62 duties by a resolution of the Council of Ministers. Chapter (4 ) Personal effects and household items Article (103) The personal effects and used household items brought into the country by the nationals residing abroad or the foreigners coming for the first time for residence in the State shall be exempted from customs duties, subject to the conditions and restrictions determined prescribed by the General Manager. To be exempted from customs taxes duties are the personal effects and gifts in possession of passengers provided that such items are not of a commercial nature and shall be conforming to the conditions and controls prescribed by the Rules of Implementation. Chapter (5) Imports of the Charitable Organizations Article (104) The needs of the Charitable Organizations shall be exempted from customs duties according to the conditions and restrictions prescribed by the Executive Regulations hereof. 63

63 Chapter (6) Returned goods Article (105) The following goods shall be exempted from customs duties: 1 - Returned goods of national origin that were previously exported. 2 - Returned foreign goods that are proved to have been previously re-exported outside the state, if returned within one year from the date of re-exportation. 3 - Goods that have been temporarily exported for completion or repair shall be subject to the customs duties in an amount equivalent to the addition resulting from such finishing or repair according to the decision of the General Manager. The Authority shall determine the conditions to be satisfied for benefiting from the provisions of this article. Chapter (7) General provisions Article (106) The provisions of the exemptions set forth in this chapter shall apply to the goods covered by exemption, whether directly or indirectly imported or bought from the customs warehouses or the free zones subject to the conditions specified by the Authority. Should a dispute arise on whether the goods provided for in this chapter are subject to or exempted from customs duties, the General Manager shall settle such dispute. 64

64 Part (9) Service charges 65

65 66

66 Part (9) Service charges Article (107) Goods placed in the yards and warehouses of the customs station shall be are subject to the charges of storage, handling and insurance and the other services required for the storage and inspection of goods at the applicable rates. However, storage charges shall not, in any way, exceed 50 per cent of the estimated value of the goods. In the event such warehouses are administered by other agencies, they may collect such charges according to the provisions and rates specified in this connection. Goods may be subject to the charges of impacting, sealing, analysis and all services rendered. The services and charges mentioned in this Article and collection conditions shall be determined by a resolution issued by the Authority. 67

67 68

68 Part (10) Customs Agents 69

69 70

70 Part (10) Customs Agents Article (108) A customs broker is any natural person or juristic engaged in the preparation of the customs declarations, signing them, submitting them to the customs station and completion of the customs procedures for clearing the goods on behalf of others Article (109 ) Declaration of the goods at the customs station and the completion of the customs procedures thereof, whether for importation, exportation or transit, shall be accepted from: 1 - The owners of the goods or their authorized representatives satisfying the requirements prescribed by the General Manager including the authorization conditions. 2 - Licensed customs agents. Article (110) Endorsement of the delivery order in the name of the customs agent or the representatives of the owners of the goods shall be deemed as an authorization for finalization of the customs procedures without any liability on the part of the Authority resulting from delivering the goods to the endorsee. 71

71 Article (111) The customs agent shall be held responsible for his acts and those of his employees towards the importers, exporters and the Authority according to the provisions herein. Article (112) The General Manager may issue a decision concerning the following: 1 - The necessary conditions to issue customs clearance proactive license for the a gents and for the representative of the customs agent and Licensing procedures for both. 2 - the Necessary conditions for opening customs clearance offices, 3 - Obligations of the customs agent and his representative, and the number of agents and agents representative authorized to practice at the customs stations. 4 - Procedures of movement of the representatives of customs agent between the customs clearance station, 5 - The customs stations wherein the customs agents are authorized to work, 6 - Procedures to do without customs agents and their representatives, 7 - Procedures of withdrawing the licenses of the customs agents and their representatives, and case of deletion from the Authority registry of agents and their representatives Article (113) Subject to the provision of Article 138 herein and without prejudice to 72