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Improving the Border Agency Cooperation

Among the OIC Member States for Facilitating Trade

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truck and vessel turnaround time. The aim is to reduce clearance times at ports from around

50 minutes in 2014 to 10 minutes in 2020 and from 30 minutes to eight minutes at land

borders.

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In recent years, all GCC countries have adopted national e-clearance systems. Abu Dhabi and

the UAE are looking for ways to build connectivity between the e-clearance systems of their

trading partners. The Abu Dhabi customs are, for example, negotiating with Jordan, a Middle

East country that sends goods into Abu Dhabi through Saudi Arabia, to receive advance

customs cargo information for customs and security purposes. Customs houses at the Omani

border are under a modernisation process that will enable quick online communications

between Abu Dhabi and Omani customs authorities. At the GCC-level in general, there is a huge

potential for regional Single Window implementation, but so far there have been only tentative

negotiations on this matter. Even so, the customs administrations in the Gulf region have

recently been exchanging quite a lot experiences regarding e-clearance systems.

Towards regional AEO (within GCC)

The Abu Dhabi customs manages a local trusted trader program similar to Authorised

Economic Operator (AEO) initiatives that grant customs simplifications for certified

companies. “We have around 47 companies with the trusted trader status,” an Abu Dhabi

customs specialist explains. “We make customs formalities easier for these companies.” The

UAE has taken some steps towards a national AEO program, but the progress is rather slow.

“We are discussing with local emirates and the Federal Customs Authority,” the specialist

continues. “But the emirates have different criteria for AEO certification, and settling the

differences takes time.” Meanwhile at the GCC level, there have been talks about a regional AEO

program, or mutual recognition of national programs. Establishing a regional AEO scheme,

however, is not going to become operational over the following years.

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4.1.3.

Summary and discussions

Abu Dhabi and the UAE have already implemented some important elements of international

BAC. There are some special arrangements to synchronise and coordinate inspections at the

Oman-UAE and Saudi-UAE land border crossings. The GCC countries follow the common

customs law that obliges the member countries to use the same harmonised dataset for

customs declaration. The common customs law also facilitates exchange of intelligence and

deeper collaboration on customs training and education.

At the same time, there is a great potential to strengthen further international BAC in the GCC

customs union. GCC countries could connect their national e-clearance systems for a regional

single window system. The countries could also establish a regional AEO program by

harmonizing their national programs – including the security requirements, audit practices

and granted benefits. More locally at the borders, neighbouring GCC countries could establish

joint customs houses, share inspection equipment, and organize more joint operations as well

as intelligence sharing.

Good news is that the customs union provides a solid legal basis for strengthening the regional

BAC. Three main barriers, nevertheless, hinder further development of BAC in the GCC

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Abu Dhabi Customs Administration expert interview, 2016

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Abu Dhabi Customs Administration expert interview, 2016