All about Exemptions from Oman Customs Duties

by Sweta Bose 07, Nov 2022

The Sultanate of Oman has seen a significant investment spike since various strategies were implemented to uplift the non-oil segment. It is the only GCC member, which is situated outside the Gulf.

Oman has beautifully balanced its traditional past with growth and modernization. It is the oldest state which was independent in the world of Arabs.

While starting a business here regarding import-export, complete knowledge about the Oman customs duties and exemptions is required. Custom Duties are a tax imposed on goods transported across international borders.

The Customs taxes collected for foreign goods can be fully or partially refunded if those are re-exported. They must work according to the Unified Customs Law of the GCC and its executive regulations.

Documents Required for Import and Export in Oman

The person concerned/ customs broker should submit all the documents to the customs officer after the company formation process in Oman is completed.

The documents to be submitted are as follows:

1. For Imported Goods

  • An accredited copy of C.R. (commercial registration) and an activity form/permission for importing
  • An affiliation certificate copy to the OCCI (Oman Chamber of Commerce and Industry)
  • A certificate from the manufacturer
  • A quotation list and packing lists
  • A bill of lading (at air and sea customs offices only)
  • A manifest of the shipment (describing the cargo)
  • Permission from the shipping agent to deliver goods
  • Written authorization from the person in charge of customs clearance
  • Fill in the import declaration form for clearing and classifying the goods according to the Customs procedure
  • If a purchase invoice or a valid certificate from the manufacturer is not available, then R.O. 20 must be paid in cash for clearance
  • Approval for restricted goods from the authority in charge
  • The taxes and customs fees must be paid for the shipment's total value, including cargo and insurance (CIF).

2. For Exported Goods

  • A copy of the invoice for export
  • A packing list
  • An application letter for non-Omani citizens only regarding the export of used or personal belongings issued by the employer.
  • The import declaration and form should be filled out according to the Customs procedure for clearing and classifying the goods.
  • Approval for restricted goods from the authority in charge.

The Goods’ Eligibility for Oman Customs Clearance

After your import-export company registration in Oman, the temporary goods which are granted entry without paying the customs fees and the tax here should satisfy the conditions mentioned below:

  • The origin is an Arab Gulf State
  • Import for carrying out government projects/investments
  • Not available locally
  • Unless permission from the D.G of Customs, arguing the type and description of the imported machines and equipment is prohibited
  • They cannot be used unless they have been imported into the project
  • The temporary entry period is six months and could be extended to similar periods for seven years
  • The provisional entry system does not apply to the spare parts, batteries, tires, and others that are subjected to consumption in the projects
  • Foreign goods imported to complete manufacturing for a temporary period of fewer than twelve months
  • The imported equipment for playgrounds and theatres
  • Equipment and machines that have been brought to the country for repair
  • Packages and containers which are brought to be filled
  • Commercial samples for display.

Re-Exporting as per the Customs Procedure in Oman

The following documents are essential while re-exporting goods from the country:

  • An application letter for re-exporting and a copy of the CR
  • A certificate from the manufacturer and the original purchase invoices
  • Packing lists and Bills of Lading
  • Permission for delivery at sea and air customs offices by the shipping agent
  • An authorization for custom clearance
  • A letter to apply for temporary entry of the merchandise and the other required documents are to be submitted to the officer in charge
  • For goods imported for playgrounds, theatres, and exhibition centers, the required documents should be submitted two weeks in advance before the date of entry.
  • Fill in the export manifest and clear and classify the goods according to the operating system.
  • Approval by the authorities in charge
  • Deposit the required custom fees (CIF) value in cash or bank warranty addressed to the D.G of Customs.

You can choose any jurisdiction for your company incorporation, like the mainland or the free zones in Oman. For that, several legal methods must be followed, and being a foreigner, going through the processes single-handedly would be challenging.

Therefore, you can proceed further under our expert guidance to smoothly complete the business setup in Oman. We make it a time-saving process easy on your pockets with many years of experience and proper connections in the Sultanate of Oman.

Thus, it would be advisable to connect with Commitbiz for further information and fulfill your dream.

FAQs

Will the clearance cost collected without a valid purchase invoice during import be reimbursed in Oman?

Yes, the R.O. 20 collected could be reimbursed if the documents required are submitted within 90 days from the payment date.

Does the customs broker have to be an Omani national?

Yes, and the Omani national should be of 18 years at least.

What are the required documents to obtain an Omani customs broker's license?

The following documents are required:

  • An annual work permit issued by the D.G. of Custom
  • An authorization from the merchant.

Are the exported goods exempted from customs taxes in Oman?

Yes, only R.O. 1 remains due for customs declaration.

What are the documents required for exported goods?

The following documents are essential:

  • A copy of the invoice for export
  • A packing list
  • An application letter for non-Omani citizens only regarding the export of used or personal belongings issued by the employer.
  • The import declaration and form should be filled out according to the Customs procedure for clearing and classifying the goods.
  • Approval for restricted goods from the authority in charge.