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  • According to the Saudi Arabia customs law, when all the necessary documents have been filed for the entry of goods, the goods must undergo identification. Further, laboratory test is conducted for miscellaneous specimens of the imported goods. This is meant to ascertain their expiry dates vis-à-vis the filed documentation. Under Article 63 of the GCC Common Customs Law, goods should not be released until after completion of their customs procedures and settling of payment or bank guarantee for the customs taxes and duties.6 Customs documentation for the GSFTA has not been finalised yet.7

According to the Saudi Arabia customs law, when all the necessary documents have been filed for the entry of goods, the goods must undergo identification. Further, laboratory test is conducted for miscellaneous specimens of the imported goods. This is meant to ascertain their expiry dates vis-à-vis the filed documentation. Under Article 63 of the GCC Common Customs Law, goods should not be released until after completion of their customs procedures and settling of payment or bank guarantee for the customs taxes and duties.6 Customs documentation for the GSFTA has not been finalised yet.7 Essay Example

  • Category:
    Law
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    519

Activity 3

Saudi Arabia has been keen on increasing trade with other countries and has for a long time been a member of the Gulf Cooperation Council (GCC). This means that goods entering Saudi Arabia from other GCC countries are exempted from all Saudi import duties as long as 40 percent of their value has been added within the GCC region and the producing firm is possessed by at least 51 percent by GCC citizens.1 The Kingdom of Saudi Arabia also acted by establishing free trade zones in the ports of Dammah and Jeddah, which later gradually evolved from being used for re-export and warehousing to full trade ports.2 But the FTA has not been so beneficial to Saudi Arabia as the Kingdom has only enjoyed marginal benefits despite being the largest member of the GCC3. Saudi Arabia can therefore be said to be reaping less than would be expected by its membership to the GCC.

Another significant FTA is between Singapore and the GCC (GSFTA). With this FTA, trade between GCC and Singapore has more than doubled from US$ 17.34 billion to US$ 39.2 billion.4 Saudi Arabia is the largest trading partner of Singapore in the Middle East5, and the GSFTA serves to cement this relationship and increases the benefits enjoyed by Saudi Arabia through its membership to the GSFTA.

According to the Saudi Arabia customs law, when all the necessary documents have been filed for the entry of goods, the goods must undergo identification. Further, laboratory test is conducted for miscellaneous specimens of the imported goods. This is meant to ascertain their expiry dates vis-à-vis the filed documentation. Under Article 63 of the GCC Common Customs Law, goods should not be released until after completion of their customs procedures and settling of payment or bank guarantee for the customs taxes and duties.6 Customs documentation for the GSFTA has not been finalised yet.7

References

Anthony H. Cordesman, Saudi Arabia Enters the Twenty-first Century: The political, foreign policy, economic, and energy dimensions, (2003) New York, Greenwood Publishing Group, 341

Rodney Wilson, Economic development in Saudi Arabia, (2004) New York, Routledge, 87

Lim Hng Kiang, ‘Faraway Friends’ in Oxford Business Group The Report: Bahrain 2009, (2009) New York, Oxford Business Group, 26

Lester Lu‘GCC signs first free trade agreement with Singapore,’ viewed 5 April 2011. <http://www.iadvisory.gov.sg/upload/market_17dec08.html>

Country Dossier, Saudi Arabia, viewed 5 April 2011 <http://ec.europa.eu/agriculture/markets/export_refunds/forms/sa.pdf>

Singapore Government, ‘Overview of The Gulf Cooperation Council (GSFTA), 18January 2010, viewed 5 April 2011. < http://www.fta.gov.sg/fta_gsfta.asp?hl=32>

1 Anthony H. Cordesman, Saudi Arabia Enters the Twenty-first Century: The political, foreign policy, economic, and energy dimensions, (2003) New York, Greenwood Publishing Group, 341

2 Anthony H. Cordesman (above)

3 Rodney Wilson, Economic development in Saudi Arabia, (2004) New York, Routledge, 87

4 Lim Hng Kiang, ‘Faraway Friends’ in Oxford Business Group The Report: Bahrain 2009, (2009) New York, Oxford Business Group, 26

5
Lester Lu‘GCC signs first free trade agreement with Singapore,’ viewed 5 April 2011. < http://www.iadvisory.gov.sg/upload/market_17dec08.html>

6 Country Dossier, Saudi Arabia, viewed 5 April 2011 <http://ec.europa.eu/agriculture/markets/export_refunds/forms/sa.pdf>

7 Singapore Government, ‘Overview of The Gulf Cooperation Council  (GSFTA), 18January 2010, viewed 5 April 2011. < http://www.fta.gov.sg/fta_gsfta.asp?hl=32>