Unification of the customs laws and procedures in the Customs Administrations of the GCC Sates is one of the main objectives that the GCC States seek to achieve. The adoption of a common customs law , which unifies customs procedures in all GCC Customs administrations and enhances cooperation among member States in the customs field, is one of such envisaged objectives.

The efforts to achieve this objective had been made since 1992 and the technical committee, assigned by the directors general of customs to undertake this task, had held seventeen meetings for this purpose which ended with the approval of the Law referred to above.

To ensure that this Law is in line with the provisions of the international agreements relating to customs, the Secretariat General had dispatched English versions of this Law to both the World Trade Organization and the World Customs Organization for their comments. The Secretariat General had received those comments and passed them to the competent technical committee for consideration and proposing appropriate action.

The Common Customs Law of the GCC States was adopted in the 20th Session of the Supreme Council held in Riyadh during the period 27-29 November 1999 provided that it would be implemented as a reference Law for one year from the date adopted by the Supreme Council and that it would be revised in the light of the comments received by the Secretariat General from the member States in an attempt to have it obligatorily implemented by all the Customs Administrations of the GCC States by 2002.

In order to complete the necessary implementation aspects of the Common Customs Law in the customs administrations of the GCC States and to review the comments of the member States and finalize the preparation of the Rules of Implementation and the Explanatory Notes, the Supreme Council , in its 21st Session held in Manama, Bahrain 30-31 December 2000, decided to extend the period of the reference implementation of the GCC Common Customs Law for one more year provided that it should be obligatorily implemented by all the Customs Administrations of the GCC States in January 2002 .

The said decision “resolution” of the Supreme Council was a step forward that had enabled the customs administrations and the ad hoc committees of the GCC States to complete all the aspects that would provide the necessary factors for the proper implementation of this Law in order to achieve the objective for which it was made, that is the unification and facilitation of the customs procedures in the GCC States which would enhance the trade exchange among them and between the rest of the world countries, and lay down the firm foundations of the customs Union of the GCC States.

Pursuant to the recommendation of the Ministerial Council, in its 81st Preparatory Session, to adopt the recommendation of the Financial and Economic Cooperation Committee (The Ministers of Finance and Economy of the GCC States) in its 55th Meeting concerning the Common Customs Law of the GCC States, the Supreme Council, in its 22nd Session held in Muscat on 30-31 December 2001, resolved as follows:

1. Approval of the amendments proposed to the Common Customs Law of the GCC States and the Rules of Implementation and the Explanatory Notes thereof.

2. This Law shall come into force as of January 2002.

3. Implementation of Articles (9, 98) relating to the Common Customs Tariff and the mechanism for the collection and distribution (allotment) of duties in the customs union of the GCC States shall coincide with the setting up of the customs union.

4. Article (97) relating to drawback “the refund of the customs taxes ”duties” on the goods re-exported to outside of the GCC States” shall be implemented after the issuance of the rules of implementation thereof.

5. Provisions of Article (109) entitling the GCC nationals the right to practice the activity (profession) of customs clearance shall be implemented after the Financial and Economic Cooperation Committee has agreed to permit the GCC nationals to practice this activity “profession” in the GCC States.

The Supreme Council, in its 23rd Session held in Doha, Qatar 21-22 December 2002, approved the decisions of the Financial and Economic Cooperation Committee concerning the application of Article (9) relating to the application of the Common Customs tariff, and Article (97) relating to Drawback, Article (98) relating to the goods exempted from the customs taxes “duties” and Article (109) permitting the GCC nationals to practice the activity of customs clearance.

This Law falls in (17) sections comprising (178) Articles that contain provisions regulating the customs work, the areas subject to customs control, the nature of the customs procedures at the land, sea , air and postal customs offices that apply to the import and export operations, the application of the customs tariff and the collection of the customs duties on the imported goods, the stages of the customs clearance of the goods, the exemptions and temporary admission of goods, the documents to be produced to customs for the clearance of the goods, and the provisions for the establishment of free zones and duty-free shops and the Law of the work of the customs brokers (clearing agents), the treatment of the customs offences and the smuggling cases and the rights and duties of the customs officers. Hence this Law is deemed the legal instrument regulating the customs procedures in the customs administrations of the GCC States and the relationship between these administrations and the trade community (i.e. nationals, residents , importers) so that the person dealing with the customs administrations would find no difference in the customs procedures applied in any of the GCC States. This Law does also regulate the relationship between these customs administrations and the government departments in each State.

When this Law was being prepared, it was taken into account that it would be utilized in the customs work for the time being and it would also prepare the customs administrations of the member States for the phase of the forthcoming customs union of the GCC States as it meets all requirements thereof.