A planned customs union in the Gulf Cooperation Council (GCC) region came a step closer to reality recently when the UAE agreed to align import duties, accoring to a report by Tax-News.com.
The UAE is planning to set up a federal customs body following the agreement to unify duties and bring them in line with a planned GCC customs tariff, said the report.
The UAE has agreed on a compromise five percent tax on foreign imports following several years of negotiations in line with a landmark economic pact they signed a year after they created a joint economic, political and defence group in 1981.
In a recent meeting, the cabinet decided to form a joint committee, grouping officials from the ministries of economy and commerce, finance and industry, as well as the customs council to work out the proposal.
"The committee will draft a federal law establishing a unified federal customs authority," it said.
The cabinet took the decision after reviewing a memorandum on the subject by Sheikh Fahim bin Sultan Al Qasimi, the UAE's minister of economy and commerce, who underlined the need for an autonomous customs body.
The customs union, which could pave the way for the long-sought common Gulf market, will be launched in 2003, two years ahead of schedule.
The common market project will be one of the main topics discussed by the GCC heads of state when they hold their summit in Oman in late December.
All GCC members, excluding Saudi Arabia, are members of the World Trade Organization.
Major trading centers like Dubai have been enforcing WTO copyright and trademark standards, according to sources.
Mohammed Al Jabeel, a prominent banker in Dubai, has been quoted in reports as saying that adherence to WTO regulations will alter the way business is done in the Gulf – Albawaba.com
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