| Aptec
expects GCC customs union to increase transparency and encourage fair
trade practices
Posted: 14 May 2003
Middle East’s largest IT distributor’s supply
chain management system will ensure on time deliveries
The GCC Customs Union which has been put into practice recently
and converts the six-countries that comprise the Gulf Cooperation
Council into a single customs zone, has been welcomed by Aptec,
one of the biggest and fastest-growing IT distributor in the Middle
East.
The implementation of the customs union will see the removal of
duties, fees, taxes and other charges as well as procedures hindering
trade between Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the
UAE.
“The GCC customs union is consistent with global trends where
the objective of removing trade barriers has become a norm. A unified
customs duty will create a level playing field in the Middle East
market, which will encourage the private sector to compete on an
equal footing. The integrated and transparent duty procedures will
also result in the reduction of logistics and transportation costs
which will ultimately benefit the customer,” said Bahaa Salah,
Regional General Manager, Gulf, Lebanon and Africa at Aptec Gulf.
“Resellers within the region stand to benefit tremendously
from the customs union as unified duties bring more transparencies;
stimulate interregional trade; prices across the GCC will be standardised;
the cost of moving goods between countries will be reduced as freight
becomes cheaper; duty will be paid at the first point of entry into
the GCC and not recharged when shipped into another country.”
Under the terms of the GCC customs union, goods entering the GCC
pay 5 per cent duty at the point of entry after which the goods
are not dutiable throughout the six member states. But, the sudden
implementation of the duty across the GCC created severe logistical
problems for several distributors. In some of the GCC states, the
customs authorities were not clearly notified about the new regulations,
which caused delays at the borders resulting in many of the resellers
paying duty at both the origin and the final destination.
‘Though the sudden implementation of the unified duty caught
many distributors off guard, Aptec’s customers were not affected
by the new measures as we were well placed to handle such a change.
With an efficient supply chain management that offers quicker lead
times and a network of offices across the Middle East and well-stocked
warehouses in UAE, Saudi Arabia and Kuwait, Aptec is in a position
to meet the demands of resellers across the region by delivering
goods to them without any additional charges or delays. As a value-added
distributor (VAD), our aim is to provide a range of extra benefits
to resellers across the region, including minimal shipping charges.”
“Aptec will be analysing the logistical changes that have
come about due to the implementation of the GCC customs union. We
will be looking at further ways to meet the challenges of our ever-changing
business environment. AptecWe will continue to develop our operations
in an endeavour to provide the best possible service to the resellers
at the right time, in the right place and at the right cost,”
Salah added.
Posted by Richard Price,
Editor Pipeline Magazine
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