The Ministry of Industry and Commerce has issued new rules regulating the customs exemption process for industrial inputs used by manufacturing establishments in Bahrain. This resolution outlines clear conditions under which customs duties on imported industrial materials may be waived, aligning with Gulf-wide economic integration initiatives and long-standing GCC customs union commitments.
Under the new decision, Bahraini industrial establishments may be granted a customs exemption on imported inputs when certain conditions are met. These include instances where the inputs are not produced locally, are unavailable in sufficient quality within Bahrain, cannot be manufactured locally within a reasonable time, or where the price of locally produced inputs exceeds the cost of imported ones by more than ten percent.
The resolution provides regulatory clarity in applying earlier GCC-level commitments, including the Supreme Council’s 2004 resolution and the Unified Industrial Organization Law adopted in Bahrain in 2006. It reinforces the role of the Ministry of Industry and Commerce in determining local production capabilities, pricing comparisons, and the availability of goods, effectively acting as the competent authority in assessing exemption requests.
This development is expected to ease import burdens on manufacturers, improve competitiveness, and streamline trade facilitation in line with Bahrain’s industrial policy and customs obligations. Industrial entities seeking exemption should ensure proper documentation and evidence supporting their eligibility under one of the listed grounds.
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