GCC nations launch customs union today
Gulf Arab states are confident the launch of their customs union on Wednesday will be smooth despite the fact that a number of technical issues remain outstanding, a top Gulf official said Tuesday.
"We are confident and determined and have the political will to implement the customs union," said Mohammed al-Mazruwi, assistant undersecretary for economic affairs of the Gulf Cooperation Council (GCC).
"I don't believe that problems will hinder the progress of the union... It is a great challenge and we must overcome any obstacles," Mazruwi told AFP in an interview.
Leaders of the oil-rich GCC states ended a two-day annual summit in Doha December 22 by announcing that the long-awaited customs union would be launched as scheduled on January 1.
"Under the union, the member states will become a single customs zone in which customs duties, charges and measures hindering inter-trade will be removed," stated a special declaration.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates will implement a five-per cent duty on foreign imports, and movement of goods between them should be free.
But the six member states have agreed to delay the implementation of certain parts of the union for up to three years, Mazruwi said.
In the initial stages, the union will not apply to scores of national products enjoying customs protection. Each member state has submitted a list of products to be excluded from the union, he said.
The GCC states have agreed to share customs revenues temporarily on the basis of the final destination of imports, but are engaged in further discussions to reach a permanent formula, Mazruwi pointed out.
The Gulf states have also reached a temporary solution for anti-dumping measures and are looking to resolve conflicting interests among agents of similar products in various member states.
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