GTL Summary:

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.

Document Type: Tax Law Article
Law: Common Excise Agreement
Article Number: 5
Country: 🏳️ GCC
Location: Chapter 2 - Charging Tax
Order: 5
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 2 - Charging Tax

Article 5 - Tax Suspension

  1. Tax on Excise Goods shall be suspended in the following two cases:

    1. Production of Excise Goods or the processing, possession, storage or receipt of Locally Produced Excise Goods by a Licensee.

    2. Transport of Excise Goods in a Tax Suspension Situation in any of the following cases:

      1. From one Tax Warehouse to another Tax Warehouse in the same Member State.

      2. From a Tax Warehouse to another Tax Warehouse in another Member State.

      3. 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.

      4. Upon import to a Tax Warehouse in a Member State.

  2. 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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