Problems relating to Trade and Investment on Gulf Cooperation Council

9. Restrictive export/import trade, duty, and customs clearance
Issue	Issue details	Requests	Reference

(1) Mandatory Acquisition of Consular Legalisation on Products Import

- The consular legalisation of each GCC country is quite cumbersome, as customs clearance documents must be consular legalized at diplomatic establishments in exporting countries. In practice, it is no longer required in some GCC country(ies). The extremely steep cost of the consular legalisation in UAE is a serious problem.
- GCC requires consular legalisation on documents for trade such as invoices with added costs and a longer lead-time.

- It is requested that GCC countries will dispense with the consular legalisation requirement.
- Only a few countries in the world now require consular legalisation. It is requested that GOJ sounds out the respective subject countries for removal of this requirement.

- Customs rules and regulations

(2) Compulsory Submission of Public Documents of the Exporting Countries upon Imports of Foods, Drugs, etc.

- While certificate of health (for foods) and free sale certificate (drugs including health foods) issued by the government of exporting country are necessary, GOJ issues no such document, sometimes disabling export/import or causing hiatus.

- It is requested that GOJ makes such documents available.

(3) Delayed FTA Negotiation	- In 2006, GCC and Japan started negotiation toward the FTA conclusion, provided, however, that no further progress resulted in negotiation. Should other countries such as ROK sign FTA ahead of Japan, it may result in hiatus of export/import business or make Japanese companies disadvantageous. - Japan-GCC EPA has come to a standstill, while customs duty on plastic resin remains the same, so that unfavourable competitive climate continues against the FTA/EPA enforced countries. As a result, depending upon products, orders concentrate upon FTA/EPA enforced countries, narrowing the selective range of the importers.	- It is requested that GCC and GOJ conclude FTA as soon as possible. - It is requested that GOJ makes transparent the FTA/EPA negotiation and its early conclusion is eagerly awaited.
	(Action) - The FTA negotiation between GCC and Japan that began in 2006 has been held pending since 2010, as GCC began its review of the entire FTA Policy.

(4) Physical Inspection upon Import Customs Clearance by Opening Containers

- At the container yard, a substantial rate (about 30%) of containers was opened for inspection. It took much time and substantial cost for shippers; numerous damages were caused upon reloading cargoes back to containers.

- It is requested that GOJ approaches GCC for rectifying the inspection rate to a level in line with other countries, as the inspection rate is excessively too high.

- Customs rules and regulations

(5) Pre-Shipment Inspection System

- Upon customs clearance, pre-shipment inspection certificate issued by a third party institution is required, however, it is extremely costly (SASO in Saudi, and KUSO in Kuwait), while changes to inspection details are frequent occurrences.

- It is requested that GOJ approaches the countries requiring to abolish pre-shipment inspection; as such inspection is required only in a few countries in the world.

- Customs rules and regulations

(6) Impossibility of Shipping Transport

- As there is a risk that cargoes disappear (particularly small ones addressed to individuals), shipping transport may not be used.

(7) Safeguard Measures	- On 7 November 2009, following the petition by local manufacturers in Saudi Arabia and Oman, investigation was conducted on shape steel (square shape steel, structural shape steel, beam shape steel), GCC initiated investigation on safeguard measures.
	(Improvement) - On 30 December 2009, large shape steel with 200mm or more has been removed from the subject goods of investigation as Mills, local manufacturer, may not produce. - On 9 June 2010, at the TSAD Standing Committee, GCC Antidumping Secretariat determined no serious injury to the domestic industries, and on 9 June 2010, officially notified the Japanese subsidiary of Mills for termination of investigation.

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