The officials say that there should be a single point between any two borders when it comes to customs and immigration.
Bahrain –It has been suggested that a reduction of border checkpoints will helps in easing the trade flow in the GCC markets. The GCC Customs Union draft that was made by the Federation of GCC Chambers had this as one of its 75 recommendations.
This draft is now being presented to the GCC Chambers with the help of workshops and the third session was recently at the BCCI or Bahrain Chamber of Commerce and Industry headquarters in Sanabis.
This draft paper is prepared after conducting a feasibility study done by Gulf Organisation for Industrial Consulting (GOIC). It is planned to be presented at the second Gulf Economic Forum, which is scheduled next month in Riyadh.
The secretary-general of the Federation of GCC Chambers, Abdulrahim Hassan Naqi said, The main objective is to help the goods to transit smoothly between the various markets in the GCC.A common market could be a solution, where there would be no checks done by the Customs.
The recommendation is to have a common point between the borders of two countries for immigration and also Customs. So if a vehicle has got a clearance in Bahrain, then there is no need for another check in UAE or Saudi Arabia.
This will reduce the time spent by the vehicles at the border, and also reduce the losses. The discussions with the Customs officials are underway and it is hoped that this plan would be implemented soon.
Mr. Naqi also said that the proposal is still under consideration across GCC. For this, the first workshop happened in Riyadh two weeks ago and the second happened in Bahrain.
The good news is that these after recommendations are implemented, it will improve the intra-GCC business and commerce flow and company formation in GCC will become more feasible and attractive.
The GOIC assistant secretary-general, Shmalan Hamoud Al Jeheidli said that having a Customs Union for GCC will help in reducing the challenges and limitations of moving goods and enhance the intra-GCC trade.
More Competition
This could also increase the competition, increase the production rates and the best utilization of resources at hand; and it could also reduce the consumer prices.
BCCI board member Abdulhakim Al Shemmari said that after 25 years of the announcement of GCC union of Customs, the private sector feels that the end result is way lesser than expected.In the last decade, many proposals have been sent, which aimed at reducing the number of barriers which lie between the nations when it comes to clearances, transportation and also for certification of products.
The Gulf Customs Union means to enhance the wealth and growth and in this, the private sector could replace the income from the oil industry.This union is aimed at growing the business and economic exchange between GCC countries. A GCC Union is surely going to have a big impact.
The one-stop measures at the border were initially announced in December, 2016 and could have taken 18 months for implementation. After it’s put in place, the vehicles will be stopped at only one post for border routine procedures, like passport control, clearance of car and customs. But someone going into Saudi Arabia would only have to go through the Saudi formalities; whereas if you are going to Bahrain, you will need only Bahraini clearance.
At present, it ends up in a chaos and congestion because the drivers have to comply with both Bahraini and Saudi formalities.
The Customs Affairs has shown an upward trend in e-payment transactions done for customs clearance. A 181 per cent rise was recorded in January, when a BD2,845,714 worth of transactions were registered.
