The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
The Minister of Finance issued Decision No. 2 of 2022 regarding placing distinctive marks on excise goods, such Decision being published in Official Gazette No. 3 of 2022 dated 19 April 2022. The Decision is issued under the auspices of the Excise Tax Law no. 25 of 2018.
Based on the Decision, distinctive marks to be provided by certain suppliers licensed by the General Tax Authority (GTA) must be placed on good subject to excise tax prior to releasing the goods for consumption in circumstances covered by paragraphs 1, 2, and 4 of Article (3) of the Excise Tax Law, being the following:
1- Producing goods subject to excise tax outside the scope of a tax suspension arrangement;
2- Releasing goods subject to excise tax from any tax suspension arrangement; and
3- Importation of good subject to excise tax, unless being under a tax suspension arrangement.
The obligation of placing the distinctive marks is on the producer of the products whether produced inside or outside Qatar. However, in special circumstances placing the distinctive mark may be done by a licensee at the licensed tax warehouse.
The form of the distinctive marks is yet to be revealed, as the marks will be supplied by a supplier certified by the GTA.
Violating the provisions of this decision, by removing or not placing the marks is punishable in accordance with the Excise Tax Law by a financial penalty of ten thousand Qatari Riyals. However, if such act is considered tax evasion the punishments would be imprisonment for a period not exceeding one year and/or a fine not exceeding three-fold the tax due.
The Decision confirmed the exemptions already in place pursuant to Article 13 of the Excise Tax Law, mainly being goods held by travellers coming to the State that do not have a commercial nature. Goods for diplomatic and international organisations are also exempt. In addition, the Decision adds an exemption for goods imported via express or normal Post for personal usage and goods imported by the Military authorities as part of an agreement with Qatar.
The Decision came into force on 20 April 2022.
However, Article 13 of the Decision provides that the Decision will be put into place through three phases as per the below table. The commencement date of each phase will be announced on the GTA’s website, or by any other means.
|Phase||Goods||Procedure||Application Time Frame|
|First Phase||Cigarettes||Suspension of import without a distinctive mark.||After 90 days from date of application of first phase.|
|Suspension of export, transport, storage or possession within the country without a distinctive mark.||After 180 days from date of application of first phase.|
|Second Phase||Soft drinks and energy drinks||Suspension of import without a distinctive mark.||After 90 days from date of application of second phase|
|Suspension of export, transport, storage or possession within the country without a distinctive mark.||After 180 days from date of application of second phase.|
|Third Phase||Other tobacco products||Suspension of import without a distinctive mark.||After 90 days from date of application of third phase,|
|Suspension of export, transport, storage, or possession within the country without a distinctive mark.||After 180 days from date of application of third phase.|
We would be delighted to support your entity in adapting to the new regulatory framework in any way that we can do so. You can seek our assistance by contact contacting one of the lawyers list below.