H.H. Shaikh Khalifa Bin Salman Al KhalifaHis Majesty King Hamad Bin Isa Al KhalifaH.H. Shaikh Salman Bin Hamad Al Khalifa
The Prime Minister
The King of Kingdom of Bahrain
The Crown Prince and Commander-In-Chief
of the Bahrain Defence Force
KINGDOM OF BAHRAIN
MINISTRY OF INDUSTRY
LAWS GOVERNING INDUSTRY
IN KINGDOM OF BAHRAIN
INTRODUCTION
The Kingdom of Bahrain has always placed a
special focus on industrialization. As part of this
attention, the Government has introduced several
laws and regulations to streamline the industrial
activities in Bahrain. While some of such
regulations are intended to regulate the business
of the local industrial sector, other regulations are
issued by virtue of Bahrain’s membership of the
Gulf Cooperation Council.
We are now pleased to present to investors, researchers and
industrialists a booklet comprising various regulations with respect to
organising and supporting industry in Bahrain. It is designed to be
used as a reference and guide for starting industrial projects and for
applying for industrial incentives.
Undoubtedly, the current industrial progress in Bahrain would have
not been possible without the full support and guidance of the political
leadership of His Majesty King Hamad bin Isa Al-Khalifa, His
Highness the prime Minister, Shaikh Khalifa bin Salman Al-Khalifa,
and His Highness the Crown Prince and Commander-in-Chief of the
Bahrain Defence Force, Shaikh Salman bin Hamad Al-Khalifa. It is
their enthusiastic Policy to encourage industrialization as a strategic
option for the total economic development, a source of attracting local
and foreign capitals, a means of transferring technology and a
process of creating further employment opportunities for citizens.
Hassan Abdulla Fakhro
Minister of Industry
5
CONTENTS
INTRODUCTION ............................................................................................................
5
1. LEGISLATIVE DECREE NO. 6 OF 1984
GOVERNING THE ORGANISATION OF INDUSTRY
CHAPTER 1 – INDUSTRIAL LICENCES ......................................................................
7-16
LEGISLATIVE DECREE NO. 6 OF 1984
CHAPTER 2 – INDUSTRIAL REGISTRY
LEGISLATIVE DECREE NO. 6 OF 1984
CHAPTER 3 – GENERAL & FINAL PROVISIONS
2. MINISTERIAL RESOLUTION NO. 1 OF 1986
WITH RESPECT TO PROMULGATING
THE IMPLEMENTING REGULATIONS OF
LEGISLATIVE DECREE NO. 6 OF 1984
GOVERNING THE ORGANISATION OF INDUSTRY .................................................. 17-23
IMPLEMENTING REGULATIONS TO THE ACT
GOVERNING THE ORGANISATION OF INDUSTRY
3. LEGISLATIVE DECREE NO. 11 OF 1985
WITH RESPECT TO THE PROTECTION AND
SUPPORT OF NATIONAL INDUSTRY ........................................................................ 24-27
4. DECREE-LAW NO. 16 OF 1987
AMENDING CLAUSE 5 OF ARTICLE FOUR OF
DECREE-LAW NO. 11 OF 1985 WITH RESPECT TO
THE PROTECTION AND SUPPORT OF NATIONAL INDUSTRIES ............................ 28-29
5. PRIME MINISTERIAL EDICT NO. 21 OF 1987
WITH RESPECT TO UNIFIED RULES FOR GIVING
PRIORITY IN GOVERNMENT PURCHASES TO
NATIONAL PRODUCTS AND PRODUCTS OF
NATIONAL ORIGIN ...................................................................................................... 30-33
6. LEGISLATIVE DECREE NO. 6 OF 1989
WITH RESPECT TO PROTECTION OF
INDUSTRIES OF NATIONAL ORIGIN .......................................................................... 34-35
7. PRIME MINISTERIAL EDICT NO. 8 OF 1989
WITH RESPECT TO UNIFIED STANDARD RULES FOR
PROTECTION OF INDUSTRIAL PRODUCTS OF
A NATIONAL ORIGIN OF GCC STATES ...................................................................... 36-41
8. DECREE-LAW NO. 35 OF 2000
AMENDING ARTICLE ONE OF DECREE-LAW NO. 6 OF 1989
WITH RESPECT TO THE PROTECTION OF NATIONAL ORIGINAL
INDUSTRIES ................................................................................................................ 42-43
6
LEGISLATIVE DECREE NO. 6 OF 1984 GOVERNING
THE ORGANISATION OF INDUSTRY
We, Hamad bin Isa Al Khalifa, Deputy Amir of the State of Bahrain,
having examined the Constitution,
and Amiri Order No. 4 of 1975,
and Amiri Order No. 3 of 1984,
and upon the submission of the Minister of Development and Industry,
and with the consent of the Council of Ministers,
DO HEREBY ENACT THE FOLLOWING ACT :
CHAPTER ONE
INDUSTRIAL LICENCES
Article 1
For the purposes of enforcing this Act, an industrial establishment is
defined as every establishment having the principal objects of converting raw materials into fully manufactured or semi-manufactured
products or turning the latter products into fully manufactured products. This shall also include the blending, assembly packing or packaging of products through the use of mechanical power.
Article 2
It shall not be permitted to set up or manage an industrial establishment to which the provisions of this Act apply or to enlarge it, to move
it or alter its principal objects except after obtaining a licence from the
Ministry of Development and Industry, in which he shall specify the
terms and conditions under which the licence is granted.
N.B.
1. The ‘Directorate of Industry’ referred to in this guide will henceforth be
referred to as the ‘Directorate of Industrial Protection and Registration.’
2. In the event of dispute reference will be made only to the law as stated in the
Arabic version.
7
Article 3
As from the effective date of this Act, the licences referred to in the
preceding Article shall not be granted except to Bahraini persons and
companies incorporated in accordance with the provisions of the
Commercial Companies Law.
Non-Bahrainis who own industrial establishments existing on the
effective date of this Act shall satisfy the conditions provided for in this
Article by obtaining a licence according to the provisions of this Act
during the period set forth in Article 15, otherwise, they shall be
required to liquidate their business activities within two years from the
effective date of this Act.
Article 4
An application for a Licence shall be filed with the Directorate of
Industry at the Ministry of Development and Industry on the form to be
prescribed by order of the Minister of Development and Industry
accompanied by such necessary drawings and documents evidencing
the validity of the details required under the terms of the resolutions to
be issued for the implementation of this Act. If the applicant is an
already established company such company shall provide evidence of
its incorporation in accordance with the provisions of the Commercial
Companies Law.
Article 5
The Ministry of Development and Industry shall, upon the recommendations of the Directorate of Industry, make a decision on the
application for the licence referred to in Article 2 within sixty days from
the date of filing the application and completing all documents and
studies relating thereto.
Article 6
Subject to the conditions to be made by any other government authority with the intention of preserving security, public health and environment, the Ministry of Development and Industry shall by ministerial
resolutions determine the conditions applicable to each type of such
establishments.
8
Article 7
The Directorate of Industry may introduce technical modifications it
deems fit to the drawings and specifications before issuing the
licence. The applicant shall be bound to effect such modifications at
its own expenses on the specified date. If one year elapses from the
specified date without effecting the said modifications, the applicant
shall be deemed to have relinquished his application.
Article 8
A licence issued for an establishment shall specify a period of time for
commencing execution of the works, which period shall not be more
than one year and may be extended by a resolution from the Minister
of Development and Industry for such period as he deems fit at the
request of the applicant concerned should the latter give acceptable
reasons for the delay.
Article 9
For issuing a licence, the following shall be taken into consideration:
a) The country’s economic needs and the possibility of local
consumption and export.
b) Requirements of the Country’s development programmes.
c) The objects of the establishment shall not be contrary to public
order or public interest.
d) The capacity of the local market as regards the setting up of an
establishment similar to existing establishments.
Article 10
No modifications shall be made to a licensed establishment without
the consent of the Ministry of Development and Industry. An example
of such modifications shall include everything affecting the establishment’s facilities whether inside or outside the establishment, or the
method of operating its machinery, or the kind of know-how used
therein, method of manufacture, addition of a new activity or increasing the mechanical power used.
9
Article 11
In case of sale, lease of assignment of all or part of the establishment
and in the case of fully or partially ceasing to operative, the person
concerned shall be bound to give notice thereof to the Ministry of
Development and Industry stating the reasons for the situation.
Failure to comply with such procedures shall result in depriving the
establishment of all or some of the privileges granted by the State to
such industrial establishment.
Article 12
The Minister of Development and Industry may, upon a recommendation from the Undersecretary of the Ministry of Development and
Industry, terminate any industrial licence or close the establishment by
an administrative order at the occurrence of the following events.
1. Setting up, expanding, relocating or altering the principal objectives of an industrial establishment without a licence.
2. Cessation of the establishment’s operations for one year without
justifiable reasons.
3. Notifying the Directorate of Industry by a registered letter of the
desire of the establishment’s proprietor to cease the operations of
the establishment.
4. Demolition of the establishment premises, even if they are rebuilt.
5. Modification of the establishment without obtaining the consent of
the Ministry of Development and Industry.
6. Contravening the conditions of the licence.
7. Failure to start construction within the period specified in the
licence.
Cancellation of the licence pursuant to the events referred to in this
Article shall not prevent the person concerned from seeking the
insurance of a new licence should the conditions thereof be fulfilled.
10
Article 13
An applicant for a licence or a licensee shall have the right to appeal
against the decision rejecting his application for a licence, cancellation
thereof or closure of the establishment before the High Civil Court
within sixty days from the date of notifying it/him of such decision.
Article 14
The provisions of this Chapter shall apply to the industrial establishments which are specified by the Minister of Development and
Industry’s resolutions.
Article 15
Industrial establishments already in existence on the effective date of
this Act shall, within 3 months from its coming into effect, apply to the
Ministry of Development and Industry for the registration thereof in
accordance with the required terms and conditions
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CHAPTER TWO
INDUSTRIAL REGISTRY
Article 16
A Registry shall be established at the Ministry of Development and
Industry for the registration of various types of industrial establishments which are subject to the provisions of this Act.
Article 17
Proprietors of establishments which are subject to the provisions of
this Act shall apply to the Ministry of Development and Industry for
registration in the Industrial Registry within two months from the date
of commencing actual production, and such Registration shall be
renewed within thirty days after the elapse of one year from the date
of registration or the last renewal thereof.
The Executive Regulations shall determine the particulars to be
recorded in the aforesaid Registry and the requirements of applications for registration and renewal and manner of filing them.
Article 18
The Ministry of Development and Industry shall deliver to the establishment a certificate of registration with the Industrial Registry, renewal of registration or altering particulars thereof within 30 days from filing an application and completing its particulars.
Article 19
Proprietors of industrial establishments and officers responsible for
the management thereof shall notify the Ministry of Development and
Industry in writing of any alteration to the particulars registered in the
Industry Registry within 90 days from the date of such alteration subject to the terms and conditions to be determined by the Executive
Regulations.
12
Article 20
In the event of contravening the provisions of Articles 17 and 19, the
Minister of Development and Industry may, upon a recommendation
from the Directorate of Industry, close the establishment by an administrative order.
Article 21
An establishment shall be struck off the Registry in any of the following events:
a. Upon an application from a concerned party owing to the liquidation thereof.
b. If it finally ceases production.
c. Issuance of a judicial decree for the removal thereof.
Article 22
A concerned party may appeal to the Minister of Development and
Industry against the decisions taken in pursuance of the provisions of
this Chapter within 60 days from his notification of the decision
appealed against.
Article 23
A committee shall be formed by a resolution from the Minister of
Development and Industry, the membership of which may include representatives from relevant ministries and other governmental departments. The said committee shall be responsible for deciding on the
appeals referred to it by the Minister of Development and Industry pursuant to the preceding Article. The committee shall decide on the
appeal within 60 days from the date of reference thereof and its decision shall be supported by reasons. Once confirmed by the Minister of
Development and Industry, the committee’s decisions shall be final,
and the appellant shall be notified in writing of the committee’s
confirmed decision. The Executive Regulations shall determine the
committee’s terms of reference and the procedures to be followed for
handling the appeals.
13
Article 24
A person whose appeal has been dismissed may re-appeal against
the resolution dismissing his appeal before the High Civil Court within
60 days from the date of receiving notice of the said resolution.
Article 25
The Ministry of Development and Industry shall publish a statistical
bulletin for the registered industrial establishments. The bulletin shall
contain particulars determined by Executive Regulations.
Article 26
The Ministry of Development and Industry shall register the industrial
establishments the proprietors of which have failed to apply for registration thereof with the Industrial registry and shall update and alter
the particulars contained in the said Registry.
Article 27
Save for the particulars contained in the statistical bulletin provided for
in Article 26:
a) The officers in charge of enforcing the provisions of this Act shall
maintain the confidentiality of the particulars in the Industrial
Registry.
b) Third parties may obtain registration certificate of the particulars
contained in the Industrial Registry pursuant to a resolution from
the Minister of Development and Industry to that effect.
14
CHAPTER THREE
GENERAL AND FINAL PROVISIONS
Article 28
The authorised officers of the Ministry of Development and Industry
who are designated by a resolution from the Minister of Development
and Industry shall have the right to inspect the establishments which
are subject to the provisions of this Act and have access to their
records and documents to ascertain their fitness to operate in
accordance with the licence granted thereto and the accuracy of the
particulars recorded in the Industrial Registry.
Article 29
Without prejudice to any severe penalty specified under any other law,
any person who contravenes the provisions of Article 2, 11, 15, 17 and
19 of this Act shall be punished with a fine of not less than BD 100 and
not more than BD 500. In the event of the second contravention, the
Court shall order the closure of the establishment for a period not
exceeding three months. For the third contravention, the court shall
order the establishment to be closed finally.
Article 30
Without prejudice to any severe penalty specified under any other law,
any person who provides or gives false information with the intent to
obtain an industrial licence or registration with the Industrial Registry
shall be punished with imprisonment for a period not exceeding one
month and with a fine not less than BD 100 or with any of them.
Article 31
Without prejudice to any severe penalty specified under any other law,
every civil servant who is in charge of enforcing the provisions of this
Act and who contravenes Article 27(a) thereof shall be subject to disciplinary penalties prescribed under the civil service regulations.
15
Article 32
The Minister of Development and Industry shall issue Executive
Regulations and resolutions required for the implementation of the
provisions of this Act.
Article 33
The Ministers, each in his respective capacity, shall implement the
provisions of this Act which shall come into force after six months from
the date of its publication in the Official Gazette.
Signed : Hamad bin Isa Al Khalifa
Deputy Amir of the State of Bahrain
Issued at Riffa Palace
on 22 Rajab, 1404 Hijra
corresponding to 23 April 1984
16
MINISTERIAL RESOLUTION
MINISTRY OF DEVELOPMENT AND INDUSTRY
MINISTERIAL RESOLUTION NO. 1
OF 1986 WITH RESPECT TO
PROMULGATING THE IMPLEMENTING REGULATIONS
OF THE LEGISLATIVE DECREE NO. 6 OF 1984
GOVERNING THE ORGANISATION OF INDUSTRY
The Minister of Development and Industry,
having examined legislative Decree No. 6 of 1984 governing the
Organisation of Industry,
and upon the submission of the Undersecretary of the Ministry
of Development and Industry,
HEREBY RESOLVES THE FOLLOWING:
Article 1
The provisions of the Implementing Regulations attached to the Act
governing the organisation of Industry shall come into force.
Article 2
This resolution shall be published in the Official Gazette and be
enforced from the date of its publication.
Signed : Yousuf Ahmed Al Shirawi
Minister of Development and Industry
Dated :
6 April 1986
17
MINISTRY OF DEVELOPMENT AND INDUSTRY
IMPLEMENTING REGULATIONS TO THE ACT GOVERNING THE
ORGANISATION OF INDUSTRY.
Article 1
Any person wishing to set up a new industrial establishment or effect
any change in an existing industrial establishment as regards its
capacity, output, location or industrial objectives shall obtain a licence
for this purpose from the Ministry of Development and Industry.
Article 2
The Owner of the project or establishment, or whoever deputizes for
him by a special power of attorney, shall submit the application for a
permit to the Directorate of Industry, at the Ministry of Development
and Industry, which shall examine the matter and issue the necessary
recommendations in respect thereof.
Article 3
An application for a permit to set up a new industrial establishment
shall contain the details recorded on Form No. AS/1 or Form No. AS/2,
as the case might be.
The application for a permit to effect any alteration in an industrial
establishment as to its capacity, output, location or industrial objectives shall include the particulars recorded on the above mentioned
two forms as the case might be.
Article 4
Before making a recommendation concerning the permit, the
Directorate of Industry may hear the views and statements of the
applicant or his attorney, and may instruct him to submit any particulars, clarifications or documents necessary for examining his application.
18
Article 5
Upon approving the application, the permit shall be issued to concerned persons including the terms and conditions of granting such
permit, which terms and conditions shall be written on the prescribed
licence certificate according to Form AS/3.
Article 6
A Register shall be established at the Ministry of Development and
Industry wherein industrial establishments already in existence in
Bahrain and all the particulars set forth in these implementing
Regulations shall be recorded. This Register shall be maintained by a
special section to be called the Industrial Register Section.
Article 7
Every proprietor or manager of an industrial establishment, whether
already in existence or under formation on the effective date of the
Organisation of Industry Act 1984, (Act No. 6) must apply to the
Industrial Register Section at the Ministry of Development and
Industry within 3 months from the effective date of enforcing the Act
for the registration of his establishment in the Industrial Register
according to the conditions specified in the Act and in these
Implementing Regulations pursuant to Forms Nos. AS/4 and AS/5. As
regards establishments set up after the enforcement of the Act, registration thereof shall be effected within two months from the date of
actually going on stream.
Article 8
Following the final approval of the application for the permit, the
Industrial Register Section shall enter the particulars of the application
in the Industrial Register in addition to the licence number concerning
the setting up of an industrial establishment and date thereof.
Article 9
The owner of an industrial establishment or his heirs, as the case may
be shall apply according to registration rules for the cancellation of the
establishment’s registration in the following events:
19
1. Relinquishing the establishment by the owner thereof.
2. Death of owner.
3. Liquidation of the establishment.
The application must be filed within one month from the date of the
occurrence involving cancellation of registration. Should the concerned persons fail to submit the application, the Industrial Register
Section shall, on it own accord, cancel the registration.
Article 10
A separate page shall be set aside in the Industrial Register for each
industrial establishment. The pages of the Register shall have serial
numbers, and they shall be endorsed with the official seal of the
Industrial Register Section.
Article 11
Applications for registration, entry in the Industrial Register or cancellation therefrom shall be written on the forms designed for this purpose which shall be accompanied by the supporting documents.
Article 12
Registration and entry particulars must be noted down in legible handwriting without any abbreviation, alteration, insertion or deletion. The
applicant shall sign on every addition or correction on the margin
thereof. He shall count the number of words added or deleted, which
words shall be entered in by the Industrial Register Section to prove
that checking has been made.
Article 13
Accepted applications shall be given serial numbers according to the
date of filing them, and the Industrial Register Section shall write down
on each application the serial number thereof and the date of depositing it. A receipt to this effect shall be given to the applicant.
20
Article 14
The applications referred to in the preceding Article shall be entered
in the Industrial Register according to the succession of approving
them. This shall be effected by noting down the particulars thereof in
the relevant columns of the Industrial Register. Entries in the Register
shall always be given serial numbers.
Article 15
In case an application for registration or entry is rejected, the Industrial
Register Section shall notify the applicant of the reasons for rejection.
Article 16
Any person who has registered his establishment in the Industrial
Register may obtain a copy of the details thereof which have been
recorded in the Register in accordance with Form No. AS/6.
Article 17
In the event of entering particulars which may cause alteration or
amendment to the details recorded in the Industrial Register, such
details shall be deleted and the new particulars shall be entered in the
same relevant column, and the date of entry thereof and the document supporting such amendments and its date shall be noted in the
margin of the Register.
Article 18
The following recorded details or any amendments thereto in the
Industrial Register shall be published in the Official Gazette:
1. Date of registration and number thereof.
2. Name of industrial establishment, type and name of owner.
3. Location of the industrial establishment.
21
Article 19
Registration with the Industrial Register shall be renewed within thirty
days after one year from the date of registration or the last renewal
thereof in accordance with the applicable terms and conditions of registration.
Article 20
The Ministry of Development and Industry may publish a statistical
bulletin of the registered industrial establishments. Such bulletin shall
contain the following particulars:
1. Name of the industrial establishment.
2. The legal status of the establishment.
3. Location.
4. Address.
5. Capital of the establishment.
6. Production capacity.
7. Kinds of products.
8. Manager in charge of the project.
Article 21
Appeals against the decisions provided for in Article 22 of the
Organisation of Industry Act 1984 (Act No. 6) shall be filed with the
Minister of Development and Industry or mailed to him by a registered
letter with an acknowledgement slip within sixty days from the date of
giving notice to the appellant of the decision appealed against.
Article 22
The appeal must include the following details:
1. Name of the appellant, designation and address.
2. Date of the decision appealed against and date of notifying the
appellant of the said decision.
22
3. Subject of the decision appealed against and the reasons for the
appeal. The appeal shall be accompanied by the documents which
the appellant deems necessary.
Article 23
The committee referred to in Article 23 of Legislative Decree No. 6 of
1984 shall receive the appeals and enter them under serial numbers
in a special register wherein the date of filing or receipt thereof shall
be indicated. A receipt showing the appeal number and date of filing
thereof shall either be given to the appellant or sent to him by a registered letter.
Article 24
After completion of the documents, the Committee shall examine
them and decide on the appeal. The decision shall be submitted to the
Minister of Development and Industry for confirmation within a period
of thirty days from the date of placing the appeal before the
Committee.
Article 25
Appellant shall be notified by a registered letter of the confirmed decision taken in respect of the appeal and the reasons for taking thereof.
23
LEGISLATIVE DECREE NO. 11 OF 1985 WITH RESPECT
TO THE PROTECTION AND SUPPORT OF NATIONAL INDUSTRY
We Isa bin Salman Al Khalifa, Amir of the State of Bahrain,
having examined the Constitution,
and upon the submission of the Minister of Development and
Industry,
and with the approval of the Council of Ministers,
HEREBY DECREE THE FOLLOWING ACT:
Article 1
A national industrial establishment is defined as every establishment
the principal object of which is to convert raw materials into fully or
semi-manufactured products, to transform semi-manufactured products into fully manufactured products or mixing, assembling, packing
or wrapping products using mechanical power, provided that
Bahrainis and GCC nationals, being natural or corporate persons,
shall have a shareholding of no less than 51% in the capital of such
establishment.
Article 2
Protection is defined as the methods used for protection of national
industrial products by levying customs duties on imports of products
similar to national products, limiting imports thereof and such other
methods.
Article 3
Subsidies are defined as grants, facilities or concessions obtained by
national industrial establishments and all means which are conducive
to the encouragement and development of the national industry.
Article 4
The Council of Ministers shall, upon recommendation from the
National Industry Protection and Support Committee, extend to
national industrial establishments any general support or protection,
especially the following:
24
1. Levying protective customs duties on imported industrial products
at the rates to be determined by the Council of Ministers.
2. Restricting the import of industrial products similar to national
industrial items for a specific period of time.
3. Exempting imports of capital machinery, plant and equipment
required for the setting up of a factory or boosting its production
capacity from customs duties.
4. Exempting raw material and semi-manufactured materials required
by the establishment from customs duties, and exemption of
exports from export duties.
5. Giving preference in tenders and purchases of the Government
and its institutions to national industrial products even if the value
thereof is in excess of their imported counter parts by a maximum
of 10%, provided that such products shall meet the standard specifications as to kind and quality.
Article 5
Protection or support may be obtained in pursuance of the provision
of the foregoing Article according to the following conditions:
1. The elements of local production included in the manufacture from
the date of commencing protection shall not be less than 20% in
the first three years and such percentage shall rise to more than
40% after five years from this date.
2. One year shall have elapsed from the commencement of production.
3. Products of the establishment seeking protection shall be of a high
standard of quality.
4. The establishment’s production shall meet a reasonable proportion of local consumption to be determined by the concerned
authorities.
5. The establishment shall properly exploit the factors of production
such as raw materials, manpower and the like.
25
6. All the information requested by the Committee shall be provided,
and the management of the establishment shall undertake to facilitate the task of experts and technical personnel designated by the
Committee to verify the accuracy of the information provided and
the extent of the efficiency of using the factors of production.
The following conditions shall apply to new industrial projects:
1. Submission of economic and technical feasibility studies to be satisfactory to the Ministry of Development and Industry.
2. Availing employment and training opportunities for Bahraini manpower.
3. The project shall contribute to the support of industrial development, particularly as regards replacement of imports, promoting
exports and using locally available factors of production.
Article 6
A Committee shall be formed by Prime Ministerial Edict under the
name of National Industry Protection and Support Committee (NIPSC)
consisting of representatives of the Ministry of Development and
Industry, Ministry of Finance and National Economy and Ministry of
Commerce and Agriculture.
The NIPSC’s duties and terms of reference shall be set forth in the
said Edict.
Article 7
An application for protection or support shall be filed with the
Directorate of Industry on the form prepared for this purpose by the
NIPSC.
Such application shall be referred to the NIPSC for study and verification of the details contained therein and preparing a report containing its recommendations in respect thereof.
The NIPSC shall refer its report to the Minister of Development and
Industry, who shall, in turn, refer it to the Council of Ministers accompanied by a memorandum.
26
An applicant shall be given notice of acceptance or rejection by a registered letter pursuant to a resolution to be issued by the Minister of
Development and Industry.
Article 8
The Council of Ministers shall, upon a proposal of the Minister of
Development and Industry, deprive any establishment of all or some of
the privileges provided for under this Act in case of contravening its provisions or provisions of the resolutions issued for its implementation.
The establishment concerned shall be notified of the action by a registered letter pursuant to a resolution to be issued by the Minister of
Development and Industry.
Article 9
Any person whose application for support, or protection has been
rejected or who has been deprived of all or some of the privileges set
forth in this Act, shall appeal against the resolution referred to in
Paragraph 2 of the preceding Article before the High Civil Court within 30 days from the date of being notified of the said resolution.
The elapse of one year from the date of filing an application for support
or protection shall be considered as a rejection of such application.
Article 10
The Minister of Development and Industry shall issue the necessary
resolutions for implementing the provisions of this Act.
Article 11
The Ministers, each in his respective capacity shall implement this Act
which shall come into force from the date of its publication in the
Official Gazette.
Signed : Isa bin Salman Al Khalifa
Amir of the State of Bahrain
Issued at Riffa Palace
on 15 Shaaban 1405
corresponding to 5 May 1985.
27
DECREE-LAW NO. 16/1987
AMENDING CLAUSE 5 OF ARTICLE FOUR OF DECREELAW NO. 11/1985 WITH RESPECT TO THE PROTECTION
AND SUPPORT OF NATIONAL INDUSTRIES
We, Isa bin Salman Al-Khalifa, Amir of the State of Bahrain;
In pursuance of the Constitution and:
Amiri Order No. 4/1975;
Decree-Law No. 26/1981 with respect to the Endorsement of the
Consolidated Economic Convention of the Gulf Cooperation Council
(GCC) countries;
Decree-Law No. 6/1984 with respect to the Regulation of Industry;
Decree-Law No. 11/1985 with respect to the Protection and Support
of National Industries, as amended by Decree-Law No. 16/1987;
Decree-Law 6/1989 with respect to the Protection of National Origin
Industries; and GCC Summit Resolution at the 20th session in Abu
Dhabi in 1986 with respect to the consolidated regulations for giving
preference in governmental purchases to national products and
national origin manufactured goods;
In accordance with the recommendation submitted by the Minister of
Finance & National Economy;
After approval of the Council of Ministers;
Have enacted the following the law;
Article One
The provision of Clause 5 of Article Four of Decree-Law No. 11/1985
with respect to the Protection and Support of National Industries is
hereby replaced to read as follows:
“5) In government purchases, the national products shall be given
price preference of 10% higher than similar foreign products and 5%
over national origin products. Where the national products required
are not available, national origin products shall be given price preference of 10% over similar foreign products.
28
For the purposes of this law, a national product shall mean any product manufactured in the State of Bahrain and considered to be as
such by the laws of Bahrain.
A national origin product is meant to be a product of which the added
value arising from manufacturing it in one or more member countries
of the Gulf Cooperation Council is not less than 40% of its final value
as a finished product and the ownership of citizens of such countries
in the manufacturing establishment concerned is not less than 51% as
verified by a certificate of origin.”
Article Two
The Ministers, each within his own jurisdiction, shall implement this
law, which shall come into force as from the date of its publication in
the Official Gazette.
Amir of the State of Bahrain
Isa bin Salman Al-Khalifa
Issued at Riffa’s Palace on:
29th Rabi al-Thani, 1408 A.H.
20th December 1987
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PRIME MINISTERIAL EDICT
PRIME MINISTERIAL EDICT NO. 21 OF 1987 WITH RESPECT TO
UNIFIED RULES FOR GIVING PRIORITY IN GOVERNMENT PURCHASES TO NATIONAL PRODUCTS AND PRODUCTS OF A
NATIONAL ORIGIN IN THE ARAB GULF STATES COOPERATION
COUNCIL.
The Acting Prime Minister,
having reviewed Amiri Order No. 14 of 1987,
and the resolution of the G.C.C. Supreme Council adopted at its
7th Session in Abu Dhabi in 1986 with respect to the Common
Rules for Giving Priority in Government Purchases to National
Products and Products of a National Origin,
and Legislative Decree No. 11 of 1985 with respect to the
Protection and Support of National Industries as amended by
Legislative Decree No. 16 of 1987,
and upon the submission of the Minister of Finance and National
Economy,
and with the approval of the Council of Ministers,
HEREBY RESOLVES THE FOLLOWING :
Article 1
Ministries, public authorities, government organisations and companies and companies in which the Government participates with not
less than 51% of its share capital shall satisfy all their purchasing
requirements in accordance with the rules laid down in this Edict.
Article 2
National products shall be given preference in Government purchases in terms of prices over their foreign counterparts by no less than
10% and over similar products of a national origin by not more than
5%. In case a national product is not available, products of a national
origin shall be given preference by 10% over their foreign counterparts.
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A national product shall be defined as every product which is manufactured in Bahrain and is deemed as a national product subject to
the laws of the State of Bahrain. Products of a national origin are
defined as such products in which the added value arising from the
manufacture thereof in a G.C.C. state is not less than 40% of their
final value upon completing the manufacture thereof. Shareholdings
by G.C.C. nationals in the industrial establishment shall not be less
than 51% according to the Certificate of Origin.
Article 3
a) In case of insufficiency of national products to meet all the requirements of government departments and agencies of a particular
product, the said departments and agencies shall satisfy the
remaining requirements from products of a national origin, than
from foreign products subject to the provisions of the preceding
article and to quality and delivery conditions.
b) Prices shall be calculated for the preference purposes provided for
in Article 2 of this Edict on the basis of delivery to Government
stores. In the cases where foreign products are exempted from
customs duties or any other exemptions, the value thereof shall be
added for the purpose of comparison.
c) National products, products of a national origin and foreign products shall meet the specifications laid down by the G.C.C.
Measurements and Specifications Organisation approved in
Bahrain or with the specifications and measurements applicable in
the State of Bahrain, if any. Where neither specifications are
available, the international specifications shall be applicable.
Article 4
Subject to the conditions of price, quality and delivery, all government
departments and agencies shall secure all their purchase requirements from national products or products of a national origin including
all agricultural, animal and industrial products whether in primary form
or in any subsequent stage of processing or manufacture.
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Article 5
In preparing their contracts for supply, public works, maintenance,
operation or other contracts, the government agencies shall ensure
that the said contracts shall include an express provision obliging the
contractor or supplier to purchase its requirements of materials or
items of national products or products of national origin in accordance
with the terms of Article 2 of this Edict.
Failure by a supplier or contractor to comply with the obligation
referred to in the preceding paragraph shall be deemed as a breach
of the fundamental obligations arising from the contract resulting in
payment of a fine of 20% of the value of the purchases in addition to
enforcement of the other terms and penalties under the terms of the
contract and provisions of the Law.
Article 6
All government departments and agencies shall, upon contracting
with consultancy firms for preparing designs and laying down general
specifications and of general conditions for their projects, shall include
in the forms of contracts and specifications of the required works a
clause ensuring that all requirements shall be met from the available
national products or products of a national origin that satisfy the
intended purposes. Consultants or technical authorities in government
departments shall ensure upon laying down specifications that they
are compatible with the specifications of the available national products or products of a national origin.
Article 7
Government agencies contracts must contain a provision which prevent any foreign contractor executing government projects, whether
as a main contractor or sub-contractor, from establishing any manufacturing unit for meeting the project’s construction requirements.
A foreign contractor must purchase all of their requirements from
national products or products of a national origin, if available.
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Article 8
Government agencies must provide in their notices for supplies or tenders for purchases, projects, maintenance or commissioning works
and in the forms of contracts they conclude for this purpose that such
notices, tenders and contracts shall be subject to the unified rules for
giving priority to national products and products of a national origin.
Article 9
(a) A breach of any of the obligations set forth in Articles 6 and 7 by
a foreign consultant or contractor shall be deemed as a breach of
one of the fundamental obligations arising from the contract,
which breach shall have the consequence of enforcing the conditions and penalties relating to the breach by a contracting party of
its obligations in accordance with the terms of the contract and
provisions of the law.
(b) Without prejudice to any other legal penalty, a contract with a supplier, contractor, undertaker or consultant may be terminated in
addition to banning him from dealing with any government agency
for a period of 2 years in case of committing an act of deceit or
fraud by giving false information about the products, including the
display trade marks of national products or products of a national
origin on foreign products.
Such acts shall be reported to the country that has issued the certificate of origin in order to inflict the appropriate penalties against any
person committing an act of deceit or fraud and to the remaining
G.C.C. member states to take the measures they deem fit.
Article 10
The Ministers, each in his respective capacity, shall implement the
provisions of this Edict which shall come into force from the date of its
publication in the Official Gazette.
Signed : Hamad bin Isa Al Khalifa
Acting Prime Minister
Dated : 20 December 1987
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LEGISLATIVE DECREE
LEGISLATIVE DECREE NO. 6 OF 1989 WITH RESPECT TO PROTECTION OF INDUSTRIES OF A NATIONAL ORIGIN
We, Isa bin Salman Al Khalifa, Amir of the State of Bahrain,
having examined the Constitution,
and Amiri Resolution No. 4 of 1975,
and Legislative Decree No. 26 of 1981 with respect to Approving
the Gulf Co-operation Council Unified Economic Agreement,
and Legislative Decree No. 6 of 1984 Governing the
Organisation of Industry,
and Legislative Decree No. 11 of 1985 with respect to the
Protection and Support of the National Industry as amended by
Legislative Decree No. 16 of 1987,
and the Resolution adopted by the Gulf Co-operation Council,
Supreme Council at its 9th Session in Manama in 1988 with
respect to the United System for Protection of the National
Industry in the G.C.C. countries,
and upon the submission of the Minister of Finance and National
Economy,
and with the approval of the Council of Ministers,
HEREBY DECREE THE FOLLOWING ACT :
Article 1
Products of a national origin shall be defined as such products in
which the shareholdings by G.C.C. nationals in the industrial establishment manufacturing them shall not be less than 51% and the
added value arising from the manufacture thereof in one G.C.C. state
or several states shall not be less than 40% of their final value upon
completing the manufacture.
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Article 2
Protection shall be defined as the ways and means which shall be
determined by the Arabian Gulf States Financial and Economic Cooperation Committee upon a recommendation of the G.C.C. National
Industry Protection Committee. Such ways and means shall include
the levying of tariffs at the rates prescribed by the Standard Rules for
Protection of Industrial Products of a national origin, whether on the
quantity of the imported items or its value or both, or the quantitative
restriction on imports or banning it or any other method to be proposed by the aforesaid National Industry Protection Committee.
Article 3
The Council of Ministers shall issue an Edict with respect to the unified
Standard Rules for Protection of Industrial Products of a National
Origin.
Article 4
The Prime Minister and Ministers each in his respective capacity shall
implement this Act which shall come into force as from the date of its
publication in the Official Gazette.
Signed : Isa bin Salman Al Khalifa
Amir of the State of Bahrain
Dated : 19 March 1989
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PRIME MINISTERIAL EDICT
PRIME MINISTERIAL EDICT NO. 8 OF 1989 WITH RESPECT TO
THE UNIFIED STANDARD RULES FOR PROTECTION OF INDUSTRIAL PRODUCTS OF A NATIONAL ORIGIN OF THE GULF COOPERATION COUNCIL MEMBER STATES
The Prime Minister,
having examined Legislative Decree No. 6 of 1989 with respect
to the Protection of the National Industry.
and Legislative Decree No. 11 of 1985 with respect to Protection
and Support of National Industry as amended by Legislative
Decree No. 16 of 1987,
and the Resolution adopted by the Gulf Co-operation Council
Supreme Council at its 9th Session in Manama, in 1988 with
respect to the Unified Standard Rules for Protection of Industrial
Products of a National Origin in the G.C.C. Countries,
and upon the submission of the Minister of Finance and National
Economy and the Minister of Development and Industry.
HEREBY RESOLVES THE FOLLOWING:
Article 1
DEFINITIONS
The words and phrases in this Edict shall have the specific meanings
for each as shown below:
A PRODUCT OF A NATIONAL ORIGIN
A Product of a National Origin shall mean, such products in which the
shareholdings by G.C.C. Nationals in the industrial establishment
manufacturing them shall not be less than 51% and the added value
arising from the manufacture thereof in one G.C.C. state or several
states shall not be less than 40% of their final value upon completing
the manufacture thereof.
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PROTECTION
Shall include one or more of the following methods:
Protection Tariffs:
Shall mean the levying of customs duties whether on the quantity of
the imported items or their value or both, and in case of dumping the
method shall in addition to the limitation of the imported quantity,
include banning of imports or any other method to be proposed by the
Protection Committee.
Protection Committee:
Shall mean the Committee for the Protection of Industrial Products of
a National Origin of the G.C.C. states which shall be formed of authorised Representatives from each of the member States from the
authorities concerned with Finance and Industry or any other authority designated by the concerned state.
Article 2
OBJECTIVES OF THE PROTECTION OF INDUSTRIAL PRODUCTS OF A NATIONAL ORIGIN.
The Protection of Industrial Products of a National Origin aims to
realise the following:
(a) Reinforcement of the competitive capacity of the Industrial products of a national origin against unfair competition from foreign
industrial products such as the dumping policy and the use of bad
quality products.
(b) Steering of investment and other resources towards industrial
products which conform with the priorities of the local supplementary industrialisation programmes.
(c) Giving the opportunity to growing national industries to acquire
expertise and the necessary technical, administrative and marketing skills to reduce production and distribution costs so as
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to enhance their competitive capability in the face of foreign industries which enjoy wide experience.
(d) Boosting the exploitation of resources to meet the G.C.C. market’s requirements.
(e) Encouraging and promoting trade in the field of industrial products
of a national origin between the G.C.C. member states.
Article 3
CRITERIA FOR PROTECTION OF INDUSTRIES OF A NATIONAL
ORIGIN
Protection of products of a national origin shall take place subject to
methods and procedures which are temporary by nature, according to
the following criteria :
(a) Protection shall not be granted to any industrial product which
does not meet a percentage of the G.C.C. countries market
requirements to be determined by the Protection Committee for
each individual product according to the conditions of its manufacture and distribution.
(b) Protection shall not be granted to any industrial product of a
national origin which fails to conform to the standard specifications issued by the G.C.C. Specifications and Measurements
Organisation, if any, or the local or international specifications
approved and accepted by the Protection Committee.
(c) In granting protection, regard shall be had for consumers’ interests and reduction of any adverse effects against them.
(d) Protection shall not be granted to any industrial product of
National origin if the national capital of its manufacturing establishment is less than 51% or if the added value arising from its
manufacture in one G.C.C. state or several G.C.C. states is less
than 40% of its final value upon completing its manufacture.
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Article 4
FUNCTIONS OF THE PROTECTION COMMITTEE
The Committee for Protection of Industrial Products of a National
Origin in the G.C.C. states shall carry out the following functions :
(a) Reviewing applications for protection of industrial products of a
national origin submitted by the G.C.C. states and issuing the
appropriate recommendations concerning them, including the
determination of the suitable period for protection should it be recommended.
(b) Controlling and following up the implementation of the protection
decisions taken by the Financial and Economic Co-operation
Committee in co-ordination with both the Industrial Co-operation
Committee and the G.C.C. General Secretariat, especially supervising the price and quality of the protected products, the development in the utilisation of the unused production capacity during
the protection period and referring its views in this regard to the
G.C.C. Financial and Economic Co-operation Committee.
(c) Studying the positive and negative effects of the protection decisions and raising its views in this regard to the G.C.C. Financial
and Economic Co-operation Committee and Industrial Co-operation Committee.
(d) Recommending the cancellation of the protection resolutions if
the majority owners of the protected industries failed to discharge
their duties specified in these rules.
(e) Suggesting the proper measures to be taken against the dumping
cases.
(f) Any other functions the committee is entrusted with by the
Financial and Economic Co-operation Committee in co-ordination
with the Industrial Co-operation Committee.
The Protection Committee shall issue its recommendations with the
unanimous agreement of the member states subject to its applicable
internal organisation.
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Article 5
Procedures for the protection of industries of a National Origin shall be
as follows:
(a) The member states shall send the protection applications to the
GCC General Secretariat to include them in the Protection
Committee’s draft agenda two months before its meeting. The
GCC General Secretariat shall refer copies of the applications
and their enclosures to the committee members five weeks
before the date of the committee meeting.
(b) The Financial and Economic Co-operation Committee shall issue
the protection resolutions upon the recommendation of the protection committee after the approval of the Industrial Co-operation Committee. The resolutions shall be enforced in all member
states two months after the date of their issuance unless another date is determined by the resolution.
Article 6
OBLIGATIONS OF OWNERS OF INDUSTRIAL PROJECTS OF
A NATIONAL ORIGIN
The owners of the Industrial Projects of a National Origin for
which protection has been granted according to these rules shall
be bound by the following:
(a) Any industry protected according to these rules shall not be
allowed to raise the prices of its protected products above the
appropriate average prices.
(b) The establishment requesting protection for its products is
required to permit the representatives of the authority designated
by the protection committee to have access to (the establishment’s site or the management site or any other location belonging thereto) all the necessary information required to perform
their duties.
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(c) The establishment whose products have enjoyed protection shall
be bound to maintain quality standards of the protected products,
according to the specifications and measurements approved and
accepted by the Protection Committee during the protection period and the Protection Committee shall be enabled to verifying that.
(d) The establishment which enjoys protection shall seek during that
period to raise productivity, reduce the costs and to abide by the
conditions of the sale contracts it has entered into.
Article 7
GENERAL PROVISIONS
1. The protection tariff percentage shall not be more than 25% of the
value of the goods at the port of arrival or the value which shall be
determined by the Protection Committee. In case of dumping, the
Committee shall deal with each case using the appropriate protection methods.
2. During the protection period, it should be observed that no such
licences shall be issued for the manufacture of the products protected according to these rules unless the product fulfill the
conditions of the product of a National Origin in addition to the economic viability and all other conditions required for the licensing.
3. The provisions of this Edict shall not be applied to the products
manufactured in the free zones which are not subject to the criteria for protection of Industrial Products of a National Origin.
Article 8
The Ministers, each in his respective capacity, shall implement this
Edict which shall be published in the Official Gazette and come into
force as from 1st April 1989.
Signed:
Khalifa bin Salman Al Khalifa
Prime Minister
Dated : 19 March 1989
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DECREE-LAW NO. 35/2000
AMENDING ARTICLE ONE OF DECREE-LAW NO. 6/1989
WITH RESPECT TO THE PROTECTION OF NATIONAL ORIGINAL
INDUSTRIES
We, Hamad bin Isa Al-Khalifa, Amir of the State of Bahrain;
In pursuance of the Constitution and:
Amiri Order No. 4/1975;
Decree-Law No. 26/1981 with respect to the Endorsement of the
Consolidated Economic Convention of the Gulf Cooperation
Council (GCC) countries;
Decree-Law No. 6/1984 with respect to the Protection and
Support of National Industries, as amended by Decree-Law No.
16/1987;
Decree-Law 6/1989 with respect to the Protection of National
Origin Industries; and
GCC Summit Resolution at the 20th session in Riyadh in 1999
with respect to the revocation of proprietorship requirements provided for in the Consolidated Economic Convention;
In accordance with the recommendation submitted by both the
Minister of Oil & Industry and the Minister of Finance & National
Economy;
Having sought the opinion of the Shura Council;
After approval of the Council of Ministers;
Have enacted the following law:
Article One
The provision of Article One of Decree-Law No. 6/1989 with respect to
the Protection of National Origin Industries is hereby replaced to read
as follows:
“Article One: A national origin industrial product is meant to be a product of which the added value arising from manufacturing it in one or
more member countries of the Gulf Cooperation Council is not less
than 40% of its final value as a finished product.”
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Article Two
The Prime Minister and the Ministers, each within his own jurisdiction,
shall implement this law, which shall come into force as from the date
of its publication in the Official Gazette.
Amir of the State of Bahrain
Hamad bin Isa Al-Khalifa
Issued at Riffa’a Palace on:
24th Ramadhan 1421 A.H.
20th December 2000
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