That is, they enter into a free trade agreement fta and apply a common external tariff. Only firms with the appropriate trade license can engage in importation. This document is a translated english version of the gcc vat framework agreement originally published in arabic. Impact of customs union agreement on gcc bilateral trade 1. Until the gcc customs union is established, the provisions of article 3 of the gcc economic agreement signed in 1981 ad 1402 ah shall continue to be applied. Of the many other examples of economic integration regulated by gatt, the gulf cooperation council gcc may be considered as the best example of advanced regional integration in the arab world as it has set up a customs union, a common market and there is a monetary union agreement among the majority of its member states. States have taken an important step by adopting the security agreement, and establishing the gcc police, based in abu dhabi, united arab emirates. Except where the context otherwise requires, throughout the nomenclature any.
Input tax shall be deductible for capital assets in accordance with the net book. As part of the objectives of the charter of the arab states of the gulf cooperation council gcc, a policy designed to strengthen regional cooperation, the gcc member states have agreed to sign a unified vat agreement to implement value added tax vat. Each gcc member state will implement the framework through legislation and other instruments. Expanding the gcc into a customs union, common market, and monetary union. In the context of the fta negotiations, this has delayed the ability to conclude the contract. Approval of the amendments proposed to the gcc common customs law, the rules of implementation and the explanatory notes thereof. The member states of the gulf cooperation council gcc have developed a broad framework for the introduction of value added tax vat across the gcc on. Trade and investment framework agreements tifas with saudi arabia, the united. Pdf the gulf cooperation council gcc is generally regarded as a success story for economic integration in arab countries. The appropriate monetary policy coordination for the gcc.
Customs revenue management, border controls and procedures and institutional arrangements. The common customs law of the gcc member states was adopted by the supreme council at the 20th session riyadh, 2729 november 1999 to be implemented as a reference law for one year from the date adopted by the supreme council and to be revised in the light of the comments received by the. Gcc customs union settlement of duties and taxes to reach the cloud. The customs union is the territory wherein customs duties and trade restrictions among the. The g cc states will also develop a list of products to which a. The gccs activities have included joint security ventures and.
The need for a free trade agreement between the european union eu and gulf cooperation council gcc is analyzed in this research project. In 2001, the gcc supreme council set the following goals. These countries are often referred to as the gcc states or gulf countries. For the purposes of this annex, one year means 365 days, including weekends and public holidays. The unified customs tariffe for gcc states 2017 chapter 1 live animals notes. The unified vat agreement for the cooperation council for. Gcc unified guide for customs procedures at first points of entry 4 foreword the member states of the cooperation council for the arab states of the gulf gcc seek to simplify customs procedures within the gcc customs union with a view to increasing intra. Pdf relative to the study of free trade agreements, customs unions cus have been neglected in international.
Customs union, a trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while granting free trade among themselves. Unified customs regulation law of the gcc states rules. The growth rates of intragcc trade is not anticipated, in the short run, to reach the rates achieved by the european union. The uae is basically a part of a group of countries, which are connected through the economic agreement between the gcc states and the gcc customs union. When will the vat go in effect and what will be the rates. Within the framework of following up the implementation of the requirements of the customs union, a team from the secretariat and member states had visited some customs offices at the gcc ports during september 2003 and january 2005 to ensure implementation of the requirements of the customs union. The gcc countries will also implement the unified gcc customs procedures guide in order to facilitate bilateral trade and strengthen cooperation with nongcc countries. In line with the objectives of the gcc economic agreement of 2001, which seeks to. A study made by the secretariat prior to the formation of the customs union estimated that the growth of intragcc trade would be 630% during the first four years. Interesting news item shared from dubai customs website.
A customs union cu is a form of trade agreement under which certain countries. Article 97 relating to drawback the refund of the customs taxes duties on the goods reexported to outside of the gcc states shall be implemented after the. The unified gulf cooperation council value added tax framework agreement released on 03 may 2017 disclaimer. Common vat agreement of the states of the gulf cooperation council. Any reference in this section to a particular genus or species of an animal, except where the context otherwise requires, includes a reference to the young of that genus or species. Gcc customs union to enforce unified procedures in 2015. Gcc unified guide for customs procedures at first points of entry 3 foreword the member states of the cooperation council for the arab states of the gulf gcc seek to simplify customs procedures within the gcc customs union with a view to increasing intra gcc trade and international trade, as well as compilation. Fca uae,federal customs authority united arab emirates. Gulf cooperation council states the economic agreement signed by their. The cooperation council for the arab states of the gulf gcc, is a political and economic group of six members namely. In anticipation of the gcc customs union, bahrain reduced customs tariffs to five percent in january. Value added tax vat the official portal of the uae. The unified economic agreement between the countries of the gulf cooperation council was signed on 11 november 1981 in abu dhabi, uae.
Common vat agreement of the states of the gulf cooperation. Gulf paper what is the status of the eugcc relationship. The unified agreement provides the framework for the operation of vat across the gcc. Bahrain, kuwait, oman, qatar, saudi arabia and the united arab emirates uae. Eugcc cooperation agreement cooperation agreement between the european economic community, of the one part, and the countries parties to the charter of the cooperation council for the arab states of the gulf the state of the united arab emirates, the. A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff. The efta states signed a free trade agreement with the gulf cooperation council gcc in hamar, norway, on 22 june 2009. Gcc customs union will accelerate trade the national. Pdf is there a need for a free trade agreement between. In the same year the gcc economic agreement was signed and it came into force in march. These countries are saudi arabia, kuwait, qatar, united arab emirates and oman.
A customs union cu is a form of trade agreement under which certain countries preferentially grant tarifffree market access to each others imports and agree to apply a common set of external tariffs to imports from the rest of the world. And whereas this agreement aims to establish a common legal framework for the introduction of a general tax on consumption in the gcc known as vat levied on the import and supply of goods and services at each stage of production and distribution. Pursuant to the recommendation of the ministerial council, at its 81 51 preparatory session, to adopt the recommendation of the financial and economic cooperation committee the ministers of finance and economy of the gcc member states at its 551h meeting concerning the gcc common customs law, the. A comparative analysis of the customs laws and practices. Its primary decisionmaking entity is the supreme council, consisting of members heads of state. The unified gulf cooperation council value added tax. The announcement of the creation of a common currency by 2010 reflects the real. Economic agreement of the gcc arab states or any other international agreement within the. Customs unions are established through trade pacts where the participant countries set up common external trade policy in some cases they use different import quotas. The customs authoritys main priority is to create a customs union within the uae to unify customs rules, regulations, procedures and documentation. The new ea introduced the gcc customs union, which was put into effect in the uae as of 1st. Common customs law of the cooperation council for the arab states of the gulf introduction the unification of the customs regulations and procedures in the gcc member states is one of the most important objectives to be achieved by the customs administrations of the gcc member states among which is the adoption of a common customs law that unifies the customs procedures in all the.
The appropriate monetary policy coordination for the gcc monetary union bassem kamar. The gcc countries completed the preparation of the gcc unified customs procedures guide, and the member states of the gcc customs union have agreed to implement it in early 2015, said al bustani. The economic agreement between the gcc states bahrain customs. Gcc member states at its 55th meeting concerning the gcc common customs law, the supreme council, at its 22nd session held in muscat on 3031 december 2001, resolved as follows. Gulf cooperation council states gear up for vat in 2018. The customs union of the gcc member states gcc customs. Gcc unified guide for customs procedures at first points. The kingdom of bahrain is a member of a customs union with other five countries in the region. Relations between the eu, member states and the gulf cooperation council countries 3 table of contents 1 eu gulf cooperation council relations 3 1. The manual directory of the conciliatory settlements is issued. S code description category 02 05 00 90 other c edible offal of bovine animals, swine, sheep, goats, horses,asses, mules or hinnies, fresh, chilled or frozen.
The customs union of the gcc member states gcc customs union inspired by the special relationships that tie up the gcc states and the features and similar regulations they have in common. The coverage of the free trade agreement includes trade in goods industrial and processed agricultural goods, fish and other marine products, trade in services, government. The gulf cooperation council gcc was established by an agreement concluded on 25 may 1981 in riyadh, saudi arabia among bahrain, kuwait, oman, qatar, saudi arabia and uae in view of their special relations, geographic proximity. Read common vat agreement of the states of the gulf cooperation council gcc pdf, 200 kb. The percentage of the added value provided for in said article may be amended by a decision of the financial and economic committee. Economic community of west african states ecowas, gulf cooperation council. The customs union project has had a fitful trajectory over the past 12 years, with implementation delayed by disagreements over the mechanisms of dividing customs revenue, as. This paper is intended to shed light on the impact of customs union systems on customs administrations, an area which remains relatively unexplored todate. This union is called the gulf cooperation council gcc. Procedures and steps for implementation of the customs union of the gcc states the supreme council, in its 23rd session held in qatar 21 22 december 2002 a. In case of a disagreement between the translation and the original version arabic, the arabic version will prevail.
Gulf cooperation council gcc, political and economic alliance of six middle eastern countries that was established in 1981. Customs administrations operating under customs union. Common competition policy is also helpful to avoid competition deficiency. The gcc group has previously too worked together to implement new policies. The unified vat agreement for the cooperation council deloitte. Gcc customs union settlement of duties and taxes to reach. July 2004 china and the gulf cooperation council gcc announces the launch of chinagcc free trade agreement negotiations. To this end, this paper focused on three particular areas under customs union systems, namely. In advance of the gcc customs union agreement, the uae created the uae customs authority. A precondition of the eus 1991 negotiating mandate was the achievement of a gcc customs union as this would prevent trade diversion from. It is a partial form of economic integration that offers an intermediate step between freetrade zones which allow mutual free trade. Gulf cooperation council gcc background and objectives. Conclusion of collective economic agreements in cases where joint benefits to.
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