Oman WT/TPR/S/201
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III.  trade policies and practices by measure

(1)  Introduction

  1. Since 1 January 2003, Oman has been applying the GCC common external tariff (CET), which consists of rates of zero (9.4% of all lines) and 5% (88.8%). On alcoholic beverages, tobacco and tobacco products, and pork and pork products, Oman applies a 100% tariff (1% of lines); and a minimum import price also applies to tobacco and tobacco products. Oman's applied average MFN tariff rate is 5.5%, i.e. 9.9% in agriculture (WTO definition), and 4.6% on non-agricultural products. Oman bound 100% of its tariff lines at rates ranging up to 200%, and averaging 13.8% (i.e. average bound rates of 28% on agricultural products, and 11.6% on non-agricultural goods); this leaves margin for applied tariff increases.
  2. The documentation for all imported products must be authenticated by the Consulate of Oman or representative, or any Arab Embassy in the country of origin. Oman encounters some difficulties in implementing the provisions of the GCC customs law based on the WTO Agreement on Customs Valuation. Non-tariff measures are maintained on a limited number of products (imports and exports), mainly for health, security, moral, and religious reasons. Oman is harmonizing its regime on standards and technical regulations at the GCC level.
  3. The Government of Oman has a strong influence on the economy, mainly through various state-owned companies, such as Petroleum Development Oman, Oman Telecommunications Company, and Oman Air. Recognizing the need to increase efficiency, reduce the pressure on public revenue, and promote private-sector participation in the economy, Oman is implementing a privatization programme.
  4. Oman has adopted the GCC Treaty provisions on contingency trade remedies. Its government procurement regime provides for price preferences of 10% for local products and 5% for GCC products. Oman has no competition legislation per se. It is to enact new laws on, inter alia, intellectual property rights, a prerequisite for the entry into force of its bilateral trade agreement with the United States.

(2)  Measures Directly Affecting Imports

(i)  Registration and documentation

  1. All companies must be registered with the Commercial Registration Department under the Ministry of Commerce and Industry (MOCI) for a fee ranging from RO 33 to RO 1,500; registration is valid for five years. Importers and exporters are also required to join the Oman Chamber of Commerce and Industry (OCCI), and pay an annual membership fee ranging from RO33to RO 625. In addition, there is a municipality fee of RO 25 to RO100.[1]
  2. All imports into Oman, except those of low pecuniary value (up to RO 1,000) and those intended for own use, must be accompanied by, inter alia, a commercial invoice, a bill of lading (airway bill for air cargo and sea bill for sea cargo), and a certificate of origin (if required). Commercial invoices and certificates of origin must be authenticated by an Omani Consulate or representative (any Arab Embassy) in the country of origin before the goods are exported to Oman. In the event that the documents are not certified, the goods may still be cleared after inspection by Customs, payment of duties, as assessed by the Directorate General of Customs, and a deposit of RO20 in cash. This deposit is reimbursed if the required documents are submitted within 90 days.[2]

7.  Product-specific documentation in the form of phytosanitary certificates are also required for some imports of plants or plant origin, such as plywood, timber, rice, fruits, plants, and seeds; while health permits are needed for some foodstuffs (e.g. biscuits, chocolates, soft drinks, tea, coffee powder). In addition, veterinary permits are required for all animals and animal products (sections(v)and (vii)).

(ii)  Customs procedures and valuation

  1. Since the launch of the GCC customs union on 1January 2003, Oman has been applying the GCC Common Customs Law, and its Rules of Implementation and Explanatory Notes, through Sultani Decree No. 67/2003.[3] Under the "single port of entry" principle, items imported into Oman (or any other GCC State), and destined for another GCC market, are subject to customs duty only at the first point of entry into the GCC. Customs procedures and the required documentation are the same for all GCC members.[4]
  2. According to the authorities, on average, clearance of goods takes ten minutes, regardless of the mode of transportation, and provided everything is in order, including the documentation. On average, about 2% of all imports are subject to inspection procedure. Inspected goods are randomly selected on the basis of a recently established risk management system (e.g. type, description, and value of goods). Importers in Oman are not required to use a commercial agent. Oman has notified the WTO that it has no laws or regulations on preshipment inspection.[5]
  3. Oman is in the process of automating all local customs activities relating to the movement of goods from and to Oman (e.g. exports, imports, collection of customs duties, inspection, transit, warehousing, and refund), with the aim of allowing traders to complete the necessary customs procedures in a few hours and effectively. Currently, almost all Customs in Oman are fully automated.
  4. According to the authorities, Oman is implementing the WTO Customs Valuation Agreement (CVA), on the basis of Sultani Decree No. 67/2003. However, it has yet to make the relevant notification to the WTO Committee on Customs Valuation (CCV), including its current legislation on customs valuation.[6] Moreover, it still maintains minimum import price on products such as tobacco and tobacco products. Oman notified the CCV that, as from 9 November 2000, it applies both the Decision on Treatment of Interest Charges in the Customs Valuation of Imported Goods and the Decision on Valuation of Carrier Media Bearing Software for Data Processing Equipment.[7] Oman has reserved its rights under Annex III, paragraphs3(concerning reversal of sequential order of Articles 5 and 6), and 4 (to apply Article 5.2 whether or not the importer so requests).[8] Customs tariffs are levied on the c.i.f. value of imports.

12.  To settle customs valuation and classification disputes, an operator may appeal to the Directorate General of Customs under the Royal Oman Police (ROP); then to the Inspector General of Police and Customs, also under the ROP; to the Minister of Finance; and lastly to the Omani Court of Arbitration. According to the authorities, there have been no disputes recently.

13.  Oman is a member of the World Customs Organization.

(iii)  Rules of origin

  1. Under the GCC customs union, products are generally considered as originating from the country where they are wholly obtained or where they underwent substantial transformation, with at least 40% of local value-added. The country of origin should be written clearly for import clearance.
  2. Oman's preferential rules of origin are also generally based on a value-added content criterion, but may vary according to the agreement. For products imported from the Pan Arab Free-Trade Area (PAFTA), local value-added of at least 40% is required in order to qualify for preferential treatment, while under the bilateral trade agreement with the United States, local value-added of at least 35% will be necessary.[9]
  3. There have been no disputes or complaints in the WTO regarding Oman's rules of origin. It has made one notification to the WTO Committee on Rules of Origin.[10]

(iv)  Tariffs, other duties, and taxes

(a)  MFN applied tariffs
  1. Oman's relatively simple MFN tariff comprises 7,101 lines; all rates are ad valorem, and there are no tariff quotas, or other duties and charges on imports (TableIII.1). Oman's tariff is based on the GCC's CET, which consists of two rates: zero (9.4% of all lines) and 5% (88.8%) (ChartIII.1). Oman applies a 100% tariff (1% of the lines) on imports of alcoholic beverages, tobacco and tobacco products (also subject to minimum import prices), and pork and pork products. Duty-free items include agricultural raw materials and basic food products, pharmaceutical products, and other products such as certain papers, books and magazines; unwrought precious metals; vessels; and airplanes.

Table III.1

Structure of MFN tariffs, 2008

(Per cent)

/ 2008 /
1. Bound tariff lines (% of all tariff lines) / 100
2. Duty-free tariff lines (% of all tariff lines) / 9.4
3. Non-ad valorem tariffs (% of all tariff lines) / 0.0
4. Tariff quotas (% of all tariff lines) / 0.0
5. Non-ad valorem tariffs with no AVEs (% of all tariff lines) / 0.0
Table III.1 (cont'd)
6. Simple average tariff rate / 5.5
Agricultural products (WTO definition)a / 9.9
Non-agricultural products (WTO definition)b / 4.6
Agriculture, hunting, forestry and fishing (ISIC 1) / 3.9
Mining and quarrying (ISIC 2) / 4.9
Manufacturing (ISIC 3) / 5.6
7 Domestic tariff "spikes" (% of all tariff lines)c / 1.1
8. International tariff "peaks" (% of all tariff lines)d / 1.1
9. Overall standard deviation of applied rates / 9.6
10. "Nuisance" applied rates (% of all tariff lines)e / 0.0

a WTO Agreement on Agriculture definitions.

b Excluding petroleum.

c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6).

e International tariff peaks are defined as those exceeding 15%.

e Nuisance rates are those greater than zero, but less than or equal to 2%.

Source: WTO Secretariat calculations, based on data provided by the Omani authorities.

  1. Oman's overall average MFN applied tariff is 5.5%. The coefficient of variation is 1.7: the modal rate is 5% and a few items are subject to the zero rate or tariffs of 100% (Tables III.2 and AIII.1). On the basis of the WTO definition, tariffs average 9.9% in agriculture, and 4.6% on non-agricultural products. Using ISIC (Revision 2) definition, the least tariff protected sector is agriculture with 3.9%, followed by mining and quarrying (4.9%), and manufacturing (5.6%).

Table III.2

Summary analysis of the applied MFN tariff, 2008

Analysis / No. of
lines / Applied 2008 rates / Imports 2006a
(US$ million)
No. of lines used / Simple avg. tariff (%) / Range tariff (%) / Std-dev
(%) / CV
Total / 7,101 / 7,076 / 5.5 / 0-100 / 9.6 / 1.7 / 10,897.8
By WTO definitionb
Agriculture / 1,119 / 1,108 / 9.9 / 0-100 / 23.5 / 2.4 / 1,165.4
Live animals and products thereof / 145 / 145 / 19.5 / 0-100 / 36.9 / 1.9 / 182.5
Dairy products / 33 / 33 / 5.0 / 5.0 / 0.0 / 0.0 / 195.9
Coffee and tea, cocoa, sugar, etc. / 250 / 249 / 5.2 / 0-100 / 10.7 / 2.1 / 254.0
Cut flowers and plants / 64 / 58 / 4.5 / 0-5 / 1.5 / 0.3 / 4.7
Fruit and vegetables / 265 / 265 / 3.5 / 0-5 / 2.3 / 0.7 / 145.2
Grains / 22 / 22 / 0.5 / 0-5 / 1.5 / 3.2 / 131.2
Oil seeds, fats, oils and their products / 90 / 87 / 9.2 / 0-100 / 20.1 / 2.2 / 90.8
Beverages and spirits / 63 / 63 / 29.0 / 0-100 / 41.7 / 1.4 / 96.6
Tobacco / 20 / 20 / 100.0 / 100.0 / 0.0 / 0.0 / 31.8
Other agricultural products / 167 / 166 / 5.1 / 0-100 / 10.7 / 2.0 / 32.8
Non-agriculture (excl. petroleum) / 5,948 / 5,934 / 4.6 / 0-5 / 1.3 / 0.3 / 9,227.7
Fish and fishery products / 165 / 165 / 3.2 / 0-5 / 2.4 / 0.7 / 20.9
Mineral products, precious stones, and precious metals / 461 / 456 / 4.7 / 0-5 / 1.1 / 0.2 / 387.3
Metals / 728 / 728 / 5.0 / 5.0 / 0.0 / 0.0 / 1,714.5
Chemicals and photographic supplies / 1,249 / 1,248 / 4.5 / 0-5 / 1.5 / 0.3 / 775.2
Leather, rubber, footwear, and travel goods / 212 / 204 / 5.0 / 5.0 / 0.0 / 0.0 / 147.3
Wood, pulp, paper and furniture / 428 / 428 / 4.6 / 0-5 / 1.4 / 0.3 / 336.9
Textiles and clothing / 980 / 980 / 5.0 / 0-5 / 0.3 / 0.1 / 199.9
Transport equipment / 233 / 233 / 4.4 / 0-5 / 1.6 / 0.4 / 2,847.9
Non-electrical machinery / 633 / 633 / 4.6 / 0-5 / 1.3 / 0.3 / 1,973.2
Electrical machinery / 310 / 310 / 3.8 / 0-5 / 2.1 / 0.6 / 580.3
Non-agricultural articles n.e.s. / 549 / 549 / 4.7 / 0-5 / 1.3 / 0.3 / 244.4
By ISIC sectorc
Agriculture, hunting, forestry and fishing / 430 / 417 / 3.9 / 0-100 / 9.9 / 3.1 / 304.5
Mining / 123 / 121 / 4.9 / 0-5 / 0.8 / 0.2 / 193.8
Manufacturing / 6,547 / 6,487 / 5.6 / 0-100 / 4.9 / 1.0 / 10,224.7
By stage of processing
Raw materials / 831 / 818 / 4.4 / 0-100 / 9.8 / 2.2 / 680.4
Semi-processed products / 2,120 / 2,117 / 4.8 / 0-5 / 1.0 / 0.2 / 1,832.5
Fully-processed products / 4,150 / 4,141 / 6.0 / 0-100 / 11.7 / 2.0 / 8,210.2

a The total of imports is higher than the sum of sub items as US$174.7million are not classified in the HS.

b 34 tariff lines on petroleum products are not taken into account.

c International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded (0 tariff line).

Note: CV = coefficient of variation.

Source: WTO Secretariat estimates, based on data provided by the Omani authorities; and imports 2006 from UNSD, Comtrade database.

  1. On aggregate, Oman's tariff displays positive escalation, from first-stage processed products, with an average tariff of 4.4%, to semi-finished goods, with an average rate of 4.8%, and fully processed products, on which tariffs average 6%. This escalation stems from the lower applied tariffs (on average) on agricultural raw materials. At a more disaggregate level, there are mixed results: in some industries (e.g. textiles and apparel, wood products, and non-metallic mineral products) tariffs are uniform from the first to the final stage of processing (Chart III.2); otherwise, tariff escalation is mixed (negative from the first to the second stage, and then positive) in the food, beverages, and tobacco industry, reflecting the high rates on tobacco and spirits. Escalation is negative in chemicals and plastics, and in the paper, printing and publishing industries, and other manufacturing because of duty-free imports of pharmaceuticals and certain books.