Article 5 specifies the two primary cases where Excise Tax on goods is suspended. The first case applies to a licensee during the production, processing, possession, storage, or receipt of locally produced Excise Goods. The second case involves the transport of goods under a Tax Suspension Situation, which includes movement between Tax Warehouses in the same or different Member States, transfer from a Tax Warehouse to a GCC exit point for export or re-export under the Common Customs Law, and upon import into a Tax Warehouse. The Ministerial Committee is responsible for defining the rules and mechanisms for its application.
Chapter 2 - Charging Tax
Article 5 - Tax Suspension
Tax on Excise Goods shall be suspended in the following two cases:
Production of Excise Goods or the processing, possession, storage or receipt of Locally Produced Excise Goods by a Licensee.
Transport of Excise Goods in a Tax Suspension Situation in any of the following cases:
From one Tax Warehouse to another Tax Warehouse in the same Member State.
From a Tax Warehouse to another Tax Warehouse in another Member State.
From a Tax Warehouse to the place where goods exit the GCC Territory for export or re-export, according to the provisions of the Common Customs Law.
Upon import to a Tax Warehouse in a Member State.
The Ministerial Committee shall determine the rules for the application of this Article and the mechanism for the movement of Excise Goods in a Tax Suspension Situation among Member States.
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