In comments on the implementation of the Unified GCC Customs Union, Tech Data FZ-LLC stated that since Feb. 2, GCC states have started recognizing duty collected by the UAE. This means that freight forwarders no longer have to claim refunds of duty paid from UAE Customs for exports to Saudi Arabia, Bahrain, Kuwait, Qatar and Oman. Tech Data also confirmed market information suggesting a sharp decline in under invoicing on shipments between Dubai and Saudi Arabia. Under invoicing, an illegal business practice, helps businesses avoid incurring complete custom duties by presenting under-valued price lists and invoices. This results in financial losses to governments and stifles fair market competition. Michael Vosper, operations director, Tech Data explained that the tighter customs controls on road shipments out of Dubai have forced many companies to change their means of transport to air and sea, where the Unified GCC Customs Union is not yet implemented. Vosper added that when customs duties are levied on a single border, it presents a lot of difficulties in committing illegal business practices. “This is an issue that exists everywhere in the world. It is a great achievement for the GCC and a positive change that will soon be translated into healthier competitive markets and, therefore, a more attractive environment for growth and investments.”
Arab News Compunet 25 February 2003
