2011 Bahrain Country Commercial Guide - US - Export.gov

Return to table of contents
Chapter 5: Trade Regulations, Customs and Standards
Import Tariffs
Trade Barriers
Import Requirements and Documentation
U.S. Export Controls
Temporary Entry
Labeling and Marking Requirements
Prohibited and Restricted Imports
Customs Regulations and Contact Information
Standards
Trade Agreements
Web Resources
Import Tariffs Return to top
With the entry into force of the U.S.-Bahrain Free Trade Agreement in August 2006,
bilateral trade in industrial and consumer products, with the exception of a few
agricultural items, is now duty free. Bahrain will phase out tariffs on the remaining
handful of agricultural product lines by 2015. Textiles and garments are duty exempt,
providing new opportunities for U.S. and Bahraini fiber, yarn, fabric and apparel
manufacturing. Generally, to benefit from preferential tariffs under the FTA, textiles and
apparel must be made from either U.S. or Bahraini yarn and fabric. The FTA provides a
temporary transitional allowance for textiles and apparel that do not meet these
requirements in order to assist U.S. and Bahraini producers in developing and
expanding business contacts.
Despite the entry into force of the FTA, difficulties remain for duty-free access of
selected goods. Customs occasionally attempts to collect custom duties on some items,
and there have been reports that goods that are not individually labeled ―Made in the
USA‖ do not receive the preferential treatment they are accorded under the FTA. These
matters are currently being addressed bilaterally.
Foreign, non-American/GCC goods are imported according to Bahrain‘s tariff schedule,
listed below. In January 2003, Bahrain took a step toward further GCC integration by
ratifying the GCC Unified Customs Union. The agreement eliminated tariffs for GCC
member states on 426 items (primarily food and medical products), and lowered to five
percent its import duties on all other commodities except alcohol (125% duty) and
tobacco (110% duty). Over the next three years, the GCC countries plan to implement a
unified tariff standard and a single-point-of-entry system. According to the GCC
Secretary General for Economic Affairs, intra-GCC trade rose from $62.9 billion in 2009
to approximately $78.6 billion in 2010, an increase of 25 percent. The Government
made several changes to its customs duties regime to comply with the newly-established
GCC Unified Customs Union. New customs classifications are as follows:
49