Customs Upgrade

Bahrain Customs Affairs introduce new ‘Automated Direct Transfer Mechanism’

The Customs Affairs department under the Ministry of Interior recently introduced a new Automated Direct Transfer Mechanism to improve the process of moving goods between the GCC countries. This new system was adopted on August 11, after coordinating with the GCC General Secretariat. 

This latest development aims to improve the previously implemented mechanism by linking GCC’s electronic systems with the Customs Information Centre in the GCC  General Secretariat. The new mechanism is also expected to reduce human error, especially from customs brokers and officers while checking physical documents, searching specific data, and other fund-transfer issues.

The implementation of the Automated Direct Transfer Mechanism was the product of the collective willingness of the GCC members to progress from an outdated clearing mechanism, and to meet the principles of the Gulf Customs Union. This also includes preventing the extraneous collection of customs duties for products that have already been paid while on transit between the members of the customs union.

The new mechanism was put to force in the light of the Committee of Financial and Economic Cooperation approving the recommendations of the ninth session of the Customs Union Commission. The committee agreed on applying the Automated Direct Transfer Mechanism within the GCC Customs Union.

Relying on this electronic mechanism linking the customs administrations and the GCC General Secretariat will ensure the smooth transfer of the customs duties to a good’s final destination, according to an official statement.

The new mechanism would use barcode scanners that directly send the information electronically, resulting in precision and speed – saving time for traders. Customers can take advantage of the Automated Direct Transfer Mechanism through the exemption of tax for goods coming from members of the GCC.  

If the trader refuses to hand in the document of the clearing mechanism, the customer may review this issue with Bahrain Customs Affairs, who will provide assistance and guidance, and help reach a reasonable solution with the trader.

Goods moving from Bahrain to anywhere in the GCC would have a unique barcode that contains information agreed upon between GCC countries. It will also include a tracking number sent to the Information Centre informing them about the release of goods moving to their destination. 

The Information Centre will inform Bahrain Customs Affairs when the goods reach their destination, and will provide a month to complete the transfer of the collected customs duties. In order to implement this new mechanism, Bahrain Customs Affairs set up a systems analyst working group between GCC members.  They also held workshops for people – including customs brokers and officers –  involved in the existing clearing mechanism, and informed the Bahrain Chamber of Commerce and Industry and Association of Customs Brokers about the changes.