1. Preferential customs tariff rates under the FTA:
All goods, which fulfill the provisions of the Rules of Origin stipulated in the FTA will be exempted from customs duty, with the exception of the following:

a) Goods listed in Attachment (1) for which the duty shall be reduced gradually, starting from the 1st of August 2006, until it is completely exempted after 10 years from the date of implementation of the FTA.

b) Tobacco, Cigarettes and Alcohol, as listed in Attachment (2) will be exempted from customs duty after 10 years from the date of the implementation of the FTA.

2. Customs Requirements for claims of preferential tariff rates:
a) The Importer shall request preferential tariff treatment by stating in the customs declaration that " The imported goods satisfy the provisions related to preferential tariff rates prescribed in the FTA and the relevant regulations as per the following phrase: “The goods satisfy the provisions related to preferential tariff rates of the FTA between the Kingdom of Bahrain and the USA”.

b) Where Customs Affairs has reason to question the accuracy of any such claim, the importer may be requested by Customs Affairs to submit a declaration setting forth all pertinent information required to substantiate the claim. 

c)  Where paragraph 2(b) applies, the imported goods will be released to the Importer upon submission of a bail or bank guarantee in accordance with Article 67 of the Common Customs Law of the GCC States 2003, such bail or bank guarantee to be returned to the Importer in full if the declaration made under paragraph 2(a) is substantiated.

d) Where Customs Affairs rejects a claim for preferential tariff treatment, it shall issue written advice to the importer containing the reasons for the decision and any bail or bank guarantee submitted under paragraph 2(c) shall be set-off against any customs duties owed by the Importer.

N.B. Under the provisions of the FTA a Certificate of Origin is not  required when importing or exporting goods.

3. Re-Exporting of Preferential Tariff goods to other GCC countries:

Goods which are exempted from customs duty in accordance with the FTA and re-exported to other GCC countries will be liable for customs duty at the final destination.

4. Contact points

For any further information or queries relating to the customs requirements or exemptions of duty, please contact the concerned Customs Officials listed below.
• Mr. Aref Abdul Ghafar Al Alwai, Head of Development & Customs Relations.
• Mr. Mohamed Rabea Saeed, Exemption Supervisor in Mina Salman Clearing section.
• Mr. Jalal Ahmed Ali, Customs Clearing Supervisor at GLS.

All Directors, Customs Officials at all Customs Points are requested to implement these requirements effective from 18th September 2008.

This order shall be read in conjunction with the attached procedures and Chapters Three, Four and Five of the Bahrain – U.S. FTA, copies of which are also attached.

Brigadier Basim Yacob Al Hamer
President of Customs 

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                                                                       CIRCULAR

Regarding Procedures for Determining Eligibility for Preferential Tariff Treatment entry under Bahrain – USA FTA

Claims for preferential tariff treatment entry are administered according to rules prescribed in attached Administrative Order of Customs Affairs No. 16 Dated 28 Sep. 2008 . The relevant legal provisions of the FTA include Articles 4.10 & 4.11 .

The following procedures apply to most goods. Other procedures apply to some goods, such as those covered by the rules of FTA Annex 3- A (textiles and apparel) or FTA Annex 4-A (certain foods stuffs). If there are questions about these procedures, the FTA should be consulted.

 Import Procedures:

The Bahrain – U.S.A FTA eliminates the requirement of an origin certificate. Instead the following process applies:

1- The importer will claim eligibility for preferential tariff treatment entry under the FTA by indicating this on the Customs Declaration Form (CDF).
         - On an e-CAS CDF by ticking the 'BH –US FTA' check box.

          -On manual CDF by indicating 'USA' in the origin field and by  making the statement 'preferential tariff treatment under BH-US FTA' on the face of the CDF.

2- By doing this the importer is 'deemed ' to have certified that the goods meet all the requirements and qualify for preferential tariff treatment entry - . It should be noted that :

- No certificate of origin is required.

- No country of origin marking is required on the goods.

- No other certification or signatures by foreign producer or exporter are required.

3- While no certificate of origin is required , in certain circumstances Customs Affairs may request the importer prepare, sign and submit a detailed declaration;

- Where Customs has reason to question the accuracy of the importer's claim.

- Where it is part of a random verification process.

- Customs Affairs should not require a declaration as a matter of course.

4- The declaration requested by Customs Affairs may require the following:

ii- Description of the goods, quantity, invoice numbers and bills of lading;
   
iii- Description of the operations of growth, production or manufacture and identification of direct costs of processing operations;

iv- Description of the materials used in growth, production or manufacture and value of such materials;

v- Description of the origin and value of any foreign goods or materials used in the production and if applicable the operations performed that have resulted in them being ' substantially transformed'.

5- While a claim is begin investigated the importer may request release of the goods subject to a bond or security pending a decision.

6- Where Customs Affairs rejects a claim it will issue a written determination explaining the findings of facts and legal reasons for the decision.  

To be eligible to be originating good under the Bahrain-USA FTA a good must (generally):
• Be made entirely in the US from US and/or Bahraini materials; OR
• Be made in the US (made from a foreign material that has been "substantially transformed") and have at least 35% of the value from US and/or Bahraini origin materials and direct costs of processing operation; AND

• Be imported directly from the US, (Note: Goods are allowed to transit through a 3rd county and be subject to operations such as unloading , reloading and inspections , but the goods cannot undergo production or manufacturing operations.

• NOTE: Special rules apply to some goods.