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UPDATED: 12/30/2009

Bahrain Free Trade Agreement (BFTA)

EFFECTIVE August 1, 2006

The BFTA was signed into law on July 27, 2006 and provides for preferential duty treatment for goods originating in Bahrain.

The following rules of origin must be met:

Under the US-BFTA, a good shall qualify for preferential tariff treatment as a "product of Bahrain" if: a. the good is wholly obtained or produced entirely in Bahrain, the U.S. or both; b. for goods other than those covered by (c) below, the good is a new or different article of commerce that has been grown, produced, or manufactured in the territory of Bahrain, the U.S. or both; and the sum of

(i) the value of materials produced in the territory of one or both of the Parties, plus

(ii) the direct costs of processing operations performed in the territory of one or both of the Parties is not less than 35 percent of the appraised value of the good at the time it is imported into the territory of a Party; or c. textile or apparel goods specified in Annex 3-A or agricultural goods specified in Annex 4-A undergo an applicable change in tariff classification specified in General Note 30(h).

For purposes of the US-BFTA, the expression "a new or different article of commerce" means a good that has been substantially transformed from a good or material that is not wholly the growth, product, or manufacture of Bahrain, the U.S. or both and that has a new name, character, or use distinct from the good or material from which it was transformed. A good, which has undergone simple combining or packaging operations or mere dilution with water or other substances, shall not be considered originating.

It is the importers responsiblilty to have proof or origin on hand, should Customs request it. We strongly recommend you provide us with this documentation at the time of entry.

If you have any questions about eligibility, please contact our office. It may be necessary to obtain a ruling from Customs in some cases.

On 9/17/2006, Customs updated their system to accept claims for BFTA. These claims are filed using the special program indicator BH before the appropriate tariff number.

BTA amendment to rules of origin Effective Jan. 28, 2010

Good no longer must be importer directly from one country to the other. The following rules will now apply:

Goods may NOT undergo and manufacturing or production while in an intermediate country: The following activities will be acceptable to retain the priviledge:

  • Unloading / Loading
  • Inspection
  • Removal of dust that accumulateds during shipment
  • Ventilation / Drying
  • Chilling
  • Replacement of salt, sulfur dioxide or aqueous solution
  • Removed of goods atha tare spoiled or damaged and can damage the remaining goods



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