Summary of Bahrain FTA Textiles

Footwear

The rule of origin for footwear is a change to HTS headings 6401 through 6405 from any heading outside that group, provided that the sum of—

1. the value of each material produced in the territory of Bahrain or of the United States, or both, and
2. the direct costs of processing operations performed in the territory of Bahrain or the United States, or both,

is not less than 35 percent of the appraised value of the good at the time the good is entered into one of the FTA countries.

Note: There are no restrictions on the use of imported uppers. The 35% value-added requirement can be comprised of a combination of value from Bahrain and the United States.

Non-Textile Travel Goods

For non-textile travel goods, the good will qualify under the FTA if it is a new or different article of commerce that has been grown, produced, or manufactured in the territory of one or both of the Parties; and the sum of

1. the value of materials produced in the territory of one or both of the Parties, plus
2. 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.

Commercial Availability

Article 3.2.3 of the Agreement provides for a consultation mechanism to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability of supply of fibers, yarns, or fabrics in the territories of the Parties.

For information on commercial availability requests and modifications to the rules of origin, see the Bahrain Commercial Availability webpage.

Documentation Requirements

For qualifying goods in which USBFTA duty benefits are requested, the importer must make a claim of preference. The Agreement does not require that the importer provide a certificate of origin in support of the claim of preference. However, both the importer and the exporter have obligations to generate supporting documentation to back-up any claims of preferential treatment under the Agreement.

To make a claim for preferential tariff treatment for a good, the importer must submit to the customs authority of the importing Party, on request, a signed declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. A requested declaration may require the following details:

• a description of the good, quantity, numbers, and invoice numbers and bills of lading;
• a description of the operations performed in the production of the good in the territory of one or both of the Parties
• a reference to the specific provision that forms the basis for the claim for preferential tariff treatment
• a statement as to any fiber, yarn, or fabric of a non-Party and the origin of such material used in the production of the good

In general, Bahrain Customs requirements for the exemption of tariff on qualifying U.S. goods are as follows:

• Submission of invoice for the goods which indicates that The Country of Origin is “USA”.
• Country of Origin “USA” to be clearly marked on the goods.

The Importer shall request for exemption of customs duty by stating in the customs declaration that “The imported goods satisfy the provisions related to customs exemption prescribed in the Agreement and the relevant regulations as per the following phrase: The goods satisfy the provisions of the FTA between the Kingdom of Bahrain and the USA”.

Bahraini customs officials may verify a claim of preferential treatment up to five years after the date of importation. Therefore, it is recommended that importers and exporters maintain documents relating to the importation of the good and all supporting documents for at least five years.

Measures to Prevent Circumvention of the Agreement’s Rule of Origin

The USBFTA contains additional measures to ensure that textile and apparel goods are not subject to fraud, such as illegal transshipment. The Parties agree that the exporting Party, at the request of the importer Party, shall conduct verification procedures to determine that a claim for origin of a textile and apparel good is accurate, allows the exchange of information between parties when suspicion occurs, and permits the importing party to suspend preferential tariff treatment to the textile and apparel good under suspicion or any textile and apparel good produced or exported by a specific company.

Intellectual Property Rights

Bahrain commits to provide strong intellectual property rights (IPR) protection and enforcement. In order to implement its FTA obligations, Bahrain passed several key pieces of IPR legislation. These laws improve protection and enforcement in the areas of copyrights, trademarks, and patents. Implementing regulations supporting these laws have also been enacted. Bahrain has launched public awareness campaigns to equate IP piracy with theft.

Government Procurement

In 2002, Bahrain implemented a new government procurement law to ensure transparency and reduce bureaucracy in government tenders and purchases. The law specifies procurements on which international suppliers are allowed to bid. The Tender Board is chaired by a Minister of State who oversees all tenders and purchases with a value of BD10,000 ($26,525) or more. The Tender Board plays an important role in ensuring a transparent bidding process, which the Government of Bahrain recognizes as vital to attracting foreign investment. The FTA requires procuring entities in Bahrain to conduct procurements covered by the FTA in a fair, transparent, and non-discriminatory manner.