Bahrain’s strategic location in the Gulf makes it an attractive hub for import and export businesses. With its business-friendly customs regulations, world-class ports, and free trade agreements, Bahrain provides a streamlined process for startups engaged in global trade. Here’s a guide to navigating customs regulations, fees, and key infrastructure in Bahrain.
Understanding Bahrain’s Customs Regulations
Bahrain follows a streamlined customs clearance process regulated by the Bahrain Customs Affairs under the Ministry of Interior. Key regulations include:
- GCC Customs Union: Bahrain is part of the GCC Customs Union, allowing duty-free trade between GCC countries.
- Customs Declarations: All imports and exports must be declared through Bahrain’s Electronic Customs Clearance System (OFOQ).
- Required Documentation that includes:
- Commercial Invoice detailing the goods and value.
- Bill of Lading or Airway Bill for shipping verification.
- Certificate of Origin (if applicable) for tariff exemptions.
- Import or Export License for regulated goods (pharmaceuticals, chemicals, food products).
While many goods are duty-free, Bahrain imposes a standard 5% customs duty on most imported products. Key considerations include:
- Zero Customs Duty: Goods imported into Bahrain Free Zones are duty-free.
- Excise Taxes: Certain goods, like tobacco and soft drinks, are subject to higher excise duties.
- Value-Added Tax (VAT): Imports are subject to 10% VAT, except for exempted categories like basic food products and healthcare supplies.
Bahrain has gone above and beyond to provide a simplified export procedures to facilitate global trade by:
- Trade Agreements: Bahrain has Free Trade Agreements (FTAs) with the GCC, USA, Singapore, and more, reducing tariffs on exports.
- Export Documentation:
- Export Declaration Form.
- Packing List & Invoice.
- Certificate of Origin (if required for preferential trade agreements).
- Bahrain Export Development Program: Managed by Tamkeen, this initiative supports startups in expanding internationally.
The Kingdom has modern logistics infrastructure supporting seamless trade:
- Khalifa Bin Salman Port (KBSP): Bahrain’s primary seaport with advanced container handling and free zone facilities.
- Bahrain Logistics Zone (BLZ): A customs-free zone designed for warehousing and distribution, ideal for startups involved in re-exporting.
- Bahrain International Airport Cargo Terminal: Handles fast air freight operations, reducing transit times.
- King Fahd Causeway: Provides direct land access to Saudi Arabia, allowing easy regional distribution.
Free Zones & Special Economic Areas
Bahrain’s free zones provide duty-free import/export benefits and logistical advantages:
- Bahrain Logistics Zone (BLZ) – Ideal for e-commerce and re-exporting businesses.
- Bahrain International Investment Park (BIIP) – Provides 100% foreign ownership and customs exemptions.
- Khalifa Bin Salman Port Free Zone – Supports trade and logistics companies with zero customs duty benefits.
Leveraging Bahrain’s Digital Trade Platforms
To streamline trade, Bahrain offers digital solutions:
- OFOQ (Bahrain Customs Clearance System) – Simplifies customs declarations and duty payments.
- Bahrain Trade Portal – Provides real-time trade statistics, licensing requirements, and customs updates.
- E-Import & Export System – Reduces paperwork and speeds up processing times.
Navigating Bahrain’s import and export logistics is straightforward with business-friendly regulations, tax incentives, and world-class infrastructure. By leveraging free zones, digital platforms, and trade agreements, startups can efficiently expand their global trade operations.
For entrepreneurs looking to scale their logistics and trade businesses, Bahrain provides an efficient, cost-effective, and strategically located platform for regional and international expansion.