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Kuwaity parliament apprved Amir's decision for a single gift to each Kuwaity citizen

Customs regime, export and import quota and license system, tariffs

In Kuwait, the import clearing process is time-consuming, requiring numerous transfers, large

quantities of paperwork, and numerous redundancies. The Customs Department is currently undergoing a major privatization effort. Customs has contracted with a private company to manage customs services, including customs clearing. The implementation of a state-of-the-art computer system should also make the import process less complicated.

Tariffs - As a member of the Gulf Cooperation Council (GCC), Kuwait applies the GCC common external tariff of five percent for most products, with a limited number of country-specific exceptions - Kuwaits exceptions include 417 food and agriculture items, which will remain duty-free, as well as tobacco products, on which tariffs remain at 100 percent.

Import Licensing

Kuwait prohibits the importation of alcohol and pork products, and requires a special import license for firearms.

Customs Valuation - Kuwait began implementation of the WTO Customs Valuation Agreement in September 2003.

Export subsidies - The Industrial Bank of Kuwait offers below market rate loans to local industry. Land is also provided at low cost.

GCC Customs Union

In April 2003, the National Assembly passed law number 10/2003 which approves Kuwaits membership in the Gulf Cooperation Council (GCC). Subsequently , the Customs Department issued decision number 50/2003 containing the required implementing regulations including a list of exempt items, tariff rates to be applied to tobacco imports, and the formula for distribution of customs revenues among GCC members.

Under the customs union, most imports of the six GCC members will be taxed uniformly at a 5% rate. Only Kuwait will see an increase in tariffs, since most products in the country were preciously taxed at a 4% rate. This will help boost government revenues from import duties, though it will also raise the cost of imported goods.

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