Bahrain has introduced new rules allowing goods worth BD10,000 or more to be stored in warehouses within commercial complexes without immediately paying customs duties, under a new framework designed to give traders greater flexibility while maintaining strict customs controls.
The rules were issued by Customs President Shaikh Ahmed bin Mohammed Al Khalifa in Decision No (1) of 2026, published in the recent edition of the Official Gazette – effective immediately.
The decision sets out detailed conditions for establishing and operating warehouses where goods can be held under customs-duty suspension, with traders able to store and dispose of the goods subject to Customs approval.
The move provides businesses with an additional option for managing imported goods before customs duties become payable, while placing responsibility for the goods firmly on the warehouse operator.
Under the new regulations, a commercial complex seeking to establish such a warehouse must first obtain approval from the Industry and Commerce Ministry, secure a licence from the Customs President and submit the required documentary undertaking.
The warehouse must also operate an approved electronic system capable of monitoring the movement of goods and producing control reports compatible with the customs clearance system.
Customs will also require an approved list containing the names and details of those appointed to supervise the warehouse.
The facilities must be suitable for receiving different types of goods safely, with sufficient space for the nature and scale of the activities being carried out.
Goods transferred to the warehouses must be moved under Customs supervision.
Warehouse operators will also have to carefully inspect incoming shipments, checking documentation, the number of packages, dates, markings and numbers displayed on the packages, as well as their condition when received.
The new rules set the normal storage period at one year from the date of deposit.
However, this can be extended when necessary with the approval of the Customs Department, provided the total period does not exceed three years.
The decision also allows goods stored in the warehouses to be divided, but only under controlled conditions.
Any division must not alter the applicable customs tariff classification or result in a loss to the public treasury. Customs must be notified of the process, which must also be recorded in the relevant goods documents, Customs records and the warehouse operator’s records.
The regulations make clear that the warehouse operator assumes responsibility for goods placed under its custody and takes over the obligations of the goods’ owners relating to their deposit.
Taxes, fees, costs and other expenses must be settled when the value of the goods is assessed, including amounts arising from losses caused by deterioration, natural causes or force majeure.
The decision forms part of Bahrain’s implementation of the Unified Customs Law for GCC States and its executive regulations, building on existing rules governing customs warehouses and goods held under duty suspension.
mohammed@gdnmedia.bh
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