New Direct Tax Transfer Mechanism For Vehicle Imports

The Director General of the General Administration of Customs, Abdullah Al-Sharhan, has issued Customs Instruction No. 21 of 2024, marking a significant development in GCC customs procedures. These instructions, formulated in line with recommendations from the Gulf Cooperation Council Customs Union Authority, address the issue of repetitive customs duty payments for vehicles moving between GCC countries.

Effective from April 23, 2024, the new instructions introduce a direct tax transfer mechanism aimed at streamlining customs clearance processes for both new and used cars. Under the directive, vehicles can obtain customs clearance within a maximum period of two years from the date of initially collecting customs duties in the first customs declaration.

The primary objective behind this directive is to prevent the duplication of customs tax payments within GCC countries, thereby facilitating smoother cross-border movement of vehicles. Importantly, this measure eliminates the need for GCC citizens to engage local agents or rely on the first importer to obtain notification of customs duties.

The issuance of Customs Instruction No. 21 reflects ongoing efforts to enhance cooperation and standardization within the GCC customs framework. By implementing this directive, authorities aim to promote greater efficiency and transparency in customs procedures, ultimately benefiting individuals and businesses engaged in cross-border trade and transportation of vehicles.

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