MANUAL GUIDE FOR TRADERS IN OMAN IN ACCORDNACE WITH THE UNIFIED CUSTOMS UNION
FOR THE ARAB GULF CO-OPERATION COUNCIL STATES
(DIRECTORATE GENERAL OF CUSTOMS, ROYAL OMAN POLICE)
2003
INTRODUCTION
Pursuant to the Unified Economic Agreement among the AGCC States and based on the Doha Declaration issued by the Supreme council in its 23rd Session in Qatar for the establishment of the Custom Union for the AGCC States as of 1.1.2003. The transitional period Shall be three years starting from the date of declaration and ending in the year 2005.
THE CONCEPT OF CUSTOM UNION OF THE COUNCIL STATES
It is the Territory where custom duties are abolished along with the abolishment of the regulations and procedures restricting trade among the Council States and where unified custom duties of commerce regulations, custom regulations are implemented on trade with other countries in the world.
PRINCIPLES OF THE CUSTOM UNION
The custom union for the council states is based on the following principles:
(a) Unified Custom Tariff towards the outside world.
(b) A unified Custom Union
(c) Similar custom regulations and procedures for the Council States
THE ONE POINT ENTRY FOR THE COUNCIL STATES
(1) Any Land, Sea or Air Custom exit point for the council states that has link with the outside world shall be considered A POINT OF ENTRY for foreign goods to any of the AGCC States.
(2) The First Custom exit point for the AGCC States to the outside world shall undertake the inspection of the goods which are to be imported to any country of the Council States, for the purpose of insuring the conformity of such goods with the required documents and its non-continment of any restricted materials and to collect the custom duties accordingly.
(3) The following custom exit points shall be considered as FIRST ENTRY POINT for foreign goods from the outside world to the Sultanate of Oman.
- Port Sultan Qaboos custom exit point
- Seeb International Airport custom exit point
- Salalah Seaport custom exit point
- Almazyona Land custom exit point
- Khasab Seaport custom exit point
- Sarfeet Land custom exit point
- Sohar Seaport custom exit point
- Shinas Seaport custom exit point
- Sur Seaport custom exit point
- Post Office custom exit point
FIRST: IMPORTING
Definition of Importing
“It is any goods imported to the country whether by sea, land or air and is subject to custom duties according to the unified custom duties and the imposed levy except for such goods that are exchanged by provisions of the unified custom union or by the unified economic agreement for the council states or any other international agreement within the framework of the council commencing from the date of registration of the custom declaration in the custom departments”.
Documents to be attached to custom declaration:-
1- In addition to D/O and other required certificates pertaining to validity and specifications of goods in other legislations, the following documents should be attached to customs declarations when the goods are to be cleared.
(a) The custom declaration of the neighbouring countries for goods originating from them are exported through their ports or transiting through them by land to other countries.
(b) The Sea Bill of Landing from the carrier or the Ship’s agent for goods that are imported through one of the countries’ ports.
(c) The Air Way Bill for goods that enter the country by air and statement of Load for goods that are imported by road.
(d) Arab Transit declaration for goods that are imported fro non-neighbouring Arab countries.
(e) The certified Purchase List (Invoice) to include number of parcels, their type, signs, numbers and the quantity of goods, their gross weight and net weight along with the name of consigner and consignee.
(f) Certified and valid Certificate of Origin duly prepared according to the provisions of Law and origin regulations that are agreed upon with the frame work of economic and regional organizations.
(g) Application for taking out goods stored in free zones (for goods to be imported from free zones).
2- Failure to present the certified list (Invoice) or the certified certificate of origin or any of the required documents which are shown under article (1) above will result in the clearance of goods against the collection of cash or bank guarantee to be specified by the Director General of Customs or the invoice and certificate of origin or either of them. The guarantee can be refunded if the applicant succeeds to present the certified invoices and certificates of origin within 90 days from the date of payment.
3- The Unified Statistical Declaration
4- Any other documents required by the Custom Department while the consignment is under clearance.
If the origin of goods is the first entry point:-
(a) FULL CONSIGNMENTS:
are the goods which have been imported according to a single consignment from outside the Council States and for which the custom procedures are to be finalized in the FIRST SINGLE ENTRY POINT provided that all the consignments shall fully porceed to the country of destination.
THE PROCEDURES:
1- Custom procedures shall be fully performed on goods imported to the council states at the First Custom Point in the council states with the outside world. i.e. the unified custom declaration check, inspection and collection of custom duty.
2- Goods imported from outside the council states shall be moved in full following the fulfillment of the custom procedures and the collection of custom duties at the Single Entry Point directly to its final destination or through one or more member state/states after the goods are properly sealed according to a copy of the import declaration bearing its value and the due custom duty in favour of the country of final destination along with the statistical declaration.
(b) PARTIAL CONSIGNMENTS:
Are the goods that have been imported according to single consignment from outside the council states and for which the custom procedures are finalized in the FIRST SINGLE ENTRY POINT and shall be sent in portions to the countries of destination according to a statistical declaration for each portion of the same consignment.
THE PROCEDURES:
If the goods to be transited amongst the council states are part of a consignment whose custom procedures have been finalized at the FIRST ENTRY POINT and the importer wishes to move part of them to another country from the council states or via them, prior to such goods leave the custom point to its final destination, their movement shall be according to the agreed statistical declaration within the framework of council and copy of the original import declaration following the completion of customs procedures.
PROCEDURES FOR THE MOVEMENT OF LOCAL MARKETS ORIGIN GOODS AMONGST THE COUNCIL STATES
(a) National products:-
Shall be moved according to local invoices and any documents that can stand as proof for the products’ origin from the country of source, and the customs declaration for statistical purposes
(b) Foreign products:-
Shall be dealt with as follows:-
(1) Goods that have been imported to the Council States prior to the date of 1.1.2003 from GCC States Local Markets shall have their custom duties collected at the country of destination.
(2) Goods that have been imported to the Council States post to the date of 1.1.2003 and for which the importer presents custom certificates issued by the FIRST ENTRY POINT as a proof that their custom duties have been paid after the establishment of the custom union, shall be passed on grounds of the collection of their custom duties at the first custom point.
(3) Goods that have been imported to the Council States post the date of 1.1.2003 and for which the importer fails to prove payment of custom duties post to the establishment of the custom union, shall have their custom duty collected at the custom point of the country of final destination.
(4) The custom declaration for statistical purposes shall be prepared manually by the goods owner or the person who acts on behalf of him or by computer, and shall be approved by the custom exit point and have the local invoices attached to it. Such invoices shall bear the correct value and origin of the goods.
(5) The importer must ensure that the custom officer has made the necessary endorsements that justify the entry and exit of such goods on the basis of the statistical declaration.
SECOND: CATEGORIES OF CUSTOM DUTIES.
(a) Goods that are exempted from Custom Duty:-
1- Goods exempted from custom duty according to the Unified Custom System Law for the Council States and which are exempted from the Unified Custom Tariff for Council States as agreed by them.
2- Goods that are exempted fro custom duty according to bilateral agreements with one of the Council States. Such goods should not necessarily be exempted in other member states.
(b) Other goods shall be subject to Custom Duty at the rate of 5%
(c) Custom Duties for the import of Tobacco and its derivatives are 100% of the cost provided that the duty should not be less than what is mentioned in appendix (1).
(d) High Custom Duty Goods
1- Special kinds of meat and its derivates (pork 100%)
2- All kinds of alcoholic drinks (100%)
(e) Protection Duties:
1- Protection duties now valid in Oman shall be collected during a period of 3 years ending in 2005.
2- Types of goods that are subject to protection:
Dry Lemon (100%), Dates and Bisoor (20%), Fresh Bananas (25%)
THIRD: EXPORTING
Definition of Exporting
Goods that are exported from AGCC States to other countries regardless of their origin.
Documents to be attached:-
1- Custom export declaration to be prepared by the exporter.
2- Bill of Landing from the approved Shipping Agent (if the goods are to be exported by sea) or Airway Bill from the Airline Agent (if the goods are to be exported by air).
3- The Manifest.
4- The Invoices of the goods concerned.
FOURTH: ENTRY
(a) The following goods can be entered under the status of temporary entry for six months liable to extension whereby the collection of custom duties shall be suspended:-
1- Machineries and heavy duty equipment for the execution of projects or for the running of scientific and practical experiments related to such projects.
2- Foreign goods imported for the purpose of finishing their processing.
3- What is temporarily imported for playgrounds, theatres, exhibitions or the like.
4- Machineries, equipment and apparatus that are imported in the country for the purpose of their repair.
5- Containers and packages are imported for the purpose of filling them.
6- Animals that enter the country for the purpose of grazing.
7- Commercial samples for the purpose of presentation.
8- Other cases that necessitate the same.
(b) Custom duties and other levies are safeguarded by the collection of a bank or cash guarantee as the case might be and according to what the Director of Customs decides.
(c) The Temporary Entry shall expire by re-exporting the entered goods outside the country or depositing them in the free zone or in the custom warehouses or availing such goods for local consumption after payment of the prescribed custom duties according to the conditions and procedures decided by the D.G. of Customs.
CONTIDTIONS FOR TEMPORARY ENTRY OF MACHINERIES AND HEAVY DUTY EQUIPMENT:-
(a) Machineries and Heavy Duty Equipment not available in the local market are allowed to be entered in the country for the fulfillment of projects on the running of practical and scientific experiments relating to such projects. Entry shall be for six months extendable for a similar period and for a maximum period of three years unless the period required for the project completion is more than such period.
(b) Projects that benefit from temporary entry according to this regulation must be of the ones that are executed for the government or one of the investment projects the execution of which requires the entry of machineries and equipment necessary for this end.
(c) Temporary Entry is not allowed for spare parts, tyres, batteries etc. and other materials that are consumed in projects’ execution.
(d) Type and features of entered machineries and equipment should not be changed without having prior approval from the D.G. of Customs.
(e) Machineries and equipment of temporary entry should not be used in projects other than the ones for which they have been specifically entered for.
(f) The body applying for temporary entry of machineries and equipment necessary for the execution of its projects should observe the following:-
1- Introduce copy of the contract or agreement signed with the government body for which the project is to be executed.
2- Preparation of custom declaration on the analogy of the form approved for temporary entry, declare all the information and attach the following documents:-
a) Purchase List b) bill of Landing / Airway Bill c) Submission of a bank guarantee or cash guarantee equivalent to the due customs duty as of the date of registering the custom.
CONDITIONS FOR TEMPORARY ENTRY OF THE GOODS FOR THE COMPLETION OF PROCESSING AND RE-EXPORT:-
(a) Conditions for Temporary Entry of goods for the purpose of finalizing their processing and re-export. Foreign goods are allowed to enter the country and their custom duties are to be suspended ps that processing can be completed and re-export effected with a period not exceeding on year.
(b) The D.G. of Customs will issue instructions specifying the conditions necessary for the grant of temporary entry for the rest of the type of goods mentioned in para FOUR above provided that the entry period shall not exceed six meonths.
CONDITONS FO TEMPORARY ENTRY FOR WHAT IS TO BE IMPORTED FOR PLAYGROUNDS, THEATRES, EXHIBITIONS AND THE LIKE AND FOR COMMERCIAL SAMPLES FOR THE PURPOSE OF PRESENTATION:-
(a) The following items are allowed to be temporarily entered for a period of three months extendable, provided that is shall not exceed a maximum of six months.
1- Items temporarily imported for playgrounds, theatres, exhibition and the like.
2- Commercial samples for the purpose of presentation.
(b) Custom duties and other levies (if any) by a bank/cash guarantee.
(c) Any shortage in the goods allowed for temporary entry shall be subject to due custom duties at the time of entry.
(d) The goods owner or his authorized delegate should submit an application for refund of the guarantee during six months period as of the date of exiting the goods from the last custom point in the Sultanate of Oman.
(e) If the D.G. of Customs detects any fraudulent information or any tampering with the price lists or inconsistent details to the specifications of imported goods, then legal custom procedures shall be applied against the inspector.
(f) It is a pre-requisite to get approval from the concerned bodies prior to holding exhibition for goods temporarily imported to playgrounds, theatres, exhibitions and the like.
(g) Inspection fees shall be collected at sites outside the custom territory at the rate of R.O.20/- for each case.
FIFTH: RE-EXPORT OF GOODS
PRCEDURES, CONDITIONS AND GUARANTEES FOR THE RE-EXPORT OF FOREIGN GOODS THAT HAVE ENTERED THE COUNTRY.
(a) Foreign goods that have already entered the country and for which custom duties have not been collected may be re-exported, such goods include:-
1- Imported goods that have not yet been drawn from custom warehouses.
2- Goods imported for the purpose of the re-export and which have been temporarily released against cash/bank guarantee for the custom duties and within a time period not less than six months from the date of release.
3- Goods that have been imported to the country under the status of temporary entry and the owner intends to re-export them.
4- Goods kept in warehouses as one of the cases suspended because of custom duties.
(b) Goods shall be re-exported according to re-export declarations including all the features distinguishing the goods and prepared in accordance with the adopted custom procedures.
(c) The re-exporter is not necessarily to be the importer of the same goods provided the custom department grant him such a status.
(d) Re-export of goods must be effected within the prescribed perod.
(e) Custom duties due for goods to be exported are safeguarded by bank/cash guarantees.
(f) Re-export declarations are cleared, records are maintained accordingly and guarantees are refunded after the submission of the following proofs:
1- a) Copy of the re-export declaration having the custom rubber stamp on it and duly signed by the Custom Officer at the custom exit point to indicate the exit of goods from the country.
b) Clearance certificate certified by the custom authority in te country of destination to indicate entry of the re-exported goods to it.
2- Copy of the re-export certificate having the custom rubber stamp on it and duly signed by the competent Custom Officer in case the goods destination is one of the Duty Free Zones in the Council States.
CUSTOM DUTIES ON FOREIGN GOODS TO BE RE-EXPORTED TO THE OUTSIDE OF AGCC STATES MAY BE REFUNDED ACCORDING TO THE INTERNAL REGULATIONS AND ON THE FOLLOWING CONTITIONS:-
1- The re-export must be the importer of the same goods in whose name the goods have been imported or may be any other person if the custom authority is convinced that he has purchased the same goods.
2- The value of the foreign goods intended for re-export and the refund of custom duties collected on them must not be less than US$ 5000/- or the equivalent in local currency.
3- (a) The re-export of the foreign goods must be effected within one Solar calendar year as of the date of payment of the custom duties on them during the first export of such goods from outside the council states.
(b) Claims for refund of the collected custom duties should take place within six months from the date of re-export.
4- The foreign goods intended for re-export should be of one consignment for the purpose of identifying and comparing them with the import documents. The consignment may be re-exported in portions whenever the custom authority is convinced that re-exported portion’s are parts of same consignment.
5- Claim for the refund of custom duty should be for foreign goods that are not locally used after being imported from outside the council states and in their same condition at the time of import.
6- The refund of custom duties is restricted to the duties paid for the foreign goods at the time of their importation.
7- Refund of custom duties takes place after the re-export of the foreign goods for which the refund of custom duty is intended. It must be ensured that the re-export documents are in order.
8- The declaration for re-export of foreign goods to the outside of the council states as agreed upon within the framework of the council should be used when there is a re-export of foreign goods whose custom duties are to be refunded.
SIXTH: MOVEMENT OF VEHICLES AND MEANS OF TRANSPORT AMONGST THE GCC STATES.
Movement of vehicles and means of Transport amongst the AGCC States without collections of custom duties on them shall be according to the following procedures:-
1- Means of Transport moving amongst the AGCC States shall be dealt with according to export plates or otherwise be carried on board of other transport means in respect of collecting the due custom duties on them as for any other goods according to the custom declaration for statistical purposes.
2- In the case of means of transport entering any of the member states bearing their original number plates and the owner wishes to replace them (number plates) in another member state, the custom authorities and traffic departments at the member states shall liaise together for the provision of the required information on the means of transport whose number plates are replaced within member states so that a claim may be initiated for the refund of custom duty form member states where custom duties have been collected according to the final destination of the goods.
SEVENTH: GCC STANDARDS AND SPECIFICATIONS
It has been decided that AGCC states adopt the principle of mutual recognition of the National Standards and Specifications each other pending the completion of the Unified Gulf Specifications for all imported National goods.
EIGHTH: RESTRICTED GOOD
The concept of restricted goods:-
Restricted goods are the ones that require prior approval from the competent bodies prior to their importation.
The importer is required to liaise with the concerned government bodies to have the necessary permits for the goods to be imported.