Basic chemicals
- Document symbol
- G/LIC/N/3/BHR/3
- Original language
- English
- Published on
- 17/12/2019
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The industrial license is required for the importation, manufacturing, exportation and re exportation of basic chemical products. Industrial licenses are only issued to a firm or individual resident in the Kingdom of Bahrain.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The industrial license includes:
• Manufacture of chemicals using basic processes, such as thermal cracking and distillation. The output of these processes are usually separate chemical elements or separate chemically defined compounds.
• Manufacture of liquefied or compressed inorganic industrial or medical gases
• Manufacture of dyes and pigments from any source in basic form or as concentrate
• Manufacture of chemical elements
• Manufacture of inorganic acids except nitric acid
• Manufacture of alkalis, lyes and other inorganic bases except ammonia
• Manufacture of other inorganic compounds
• Manufacture of basic organic chemicals:
• Manufacture of distilled water
• Manufacture of synthetic aromatic products
• Roasting of iron pyrites
• Manufacture of products of a kind used as fluorescent brightening agents or as luminophores
• Enrichment of uranium and thorium ores and production of fuel elements for nuclear reactors
Q3. The system applies to goods originating in and coming from which countries?
The industrial licence applies to products coming from all countries with exceptions.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The industrial license does not restrict the quantity or value of imports. The purpose of the license is to allow for manufacturing, importation and exportation.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The industrial license is a statutory requirement in accordance with the law No. (81) of 2006, with respect to approving THE COMMON INDUSTRIAL LAW OF THE GCC.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
The industrial license cannot be obtained within a shorter time limit and must be obtained for all goods through the normal process.
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Industrial licenses obtained through the online system of the Ministry of Industry, Commerce and Tourism. All applications are passed on to other governmental authorities for approvals.
For the Manufacture of Basic Chemicals activity, the application will be passed to following governmental authorities:
• Environmental licensing section
• Directorate of Industrial Development
• Municipality affairs
• General Directorate of Criminal Investigation
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
There are no circumstances other than failure to meet standard criteria under which an industrial license may be refused except for applying for illegal products.
Are the reasons for any refusal given to applicants?
Reasons for refusal are given to the applicant.
Have applicants a right of appeal in the event of refusal to issue a licence? If so, to what bodies and under what procedures?
No appeal procedures are specified in the legislation.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Any individual, partnership, corporation, association, joint venture or other legal entity may be eligible to apply for industrial license under non-restrictive system.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
The information and documents required in the industrial license application is as follow (as per attached industrial license sample form (industrial license application)):
• Investment amount
• Workforce
• Project utilities
• Area
• Production details
• Product documents (Pictures)
What documents is the importer required to supply with the application?
The information and documents required in the industrial license application is as follow (as per attached industrial license sample form (industrial license application)):
• Investment amount
• Workforce
• Project utilities
• Area
• Production details
• Product documents (Pictures)
Q11. What documents are required upon actual importation?
No documents are required from the Ministry of Industry, Commerce and Tourism.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
The industrial license fee is BD100 for the first industrial activity and BD50 for each of the second and third activity. Any additional industrial activity will have a fee of BD100 each.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit or advanced payment is required in connection with the issue of the industrial license.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The industrial license is valid for 1 year and can be renewed annually by re-application.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for non-utilization of a permit.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
The industrial license can be transferable between importers and there are no limitations or conditions attached to such transfer.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There are no conditions attached to the issuance of industrial license for products not subject to quantitative restriction.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures required prior to importation.