Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.

Under the U.S.-Bahrain Free Trade Agreement (FTA), bilateral trade in industrial and consumer products, with the exception of some agricultural items, may be conducted duty free.  Goods manufactured outside the FTA region may be imported according to Bahrain’s tariff schedule, listed below.  Bahrain is party to the GCC Unified Customs Union agreement.  The agreement eliminated tariffs for GCC member states on 426 items (primarily food and medical products), and lowered to five percent import duties on all other commodities except alcohol (125 percent) and tobacco (100 percent).  The Customs authorities of the Gulf Cooperation Council (GCC) countries finalized the Unified GCC Customs Tariff of 2017, which entered into force on January 1, 2017.  In February 2017, the GCC states, including Bahrain, ratified the Unified Selective Tax Agreement for the GCC States.  It imposes a tax on goods harmful to human health and the environment, as well as luxury goods.  Tax rates are determined by the Committee for Financial and Economic Cooperation of the GCC States.
Customs rates for intra-GCC trade are as follows:

Duty ExemptIncludes 428 listed commodities, mostly food and medical products
  • 5 percent import duty
All other commodities, except tobacco and alcoholic beverages
  • 100 percent import duty
Tobacco
  • 125 percent import duty
Alcoholic beverages
 
To incentivize foreign direct investment, the Bahraini Government does not levy duties on imports of raw materials or of semi-manufactured goods, provided that the final products assembled using these inputs will be exported out of Bahrain.  The Bahraini Government also allows items imported for development projects (excluding spare parts), and transshipments to be imported duty free.
Foreign products entering or already in the GCC are treated as follows:
  • Goods imported to the GCC region are granted duty-free entry if the importer presents certificates issued by the first single-entry point as a proof that his customs duties have been paid after the establishment of the customs union.
  • Goods imported to the GCC for which the importer fails to prove payment of customs duties shall have their customs duty collected at the customs point of the country of final destination.
  • The customs declaration for statistical purposes shall be prepared manually by the owner of the goods or the person who acts on his behalf, or by computer, and shall be approved at the customs entry point and have the local invoices attached to it.  Invoices are required to detail the correct value and origin of the goods.
  • The importer must ensure that the customs authority has made the necessary endorsements that justify the entry and exit of the goods on the basis of the statistical declaration.
 

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