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Go to Bahrain country overview

Doing business

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(Last updated: 05 Nov 2008)

 

Business etiquette

Business tips

When making business appointments, it is important to make it clear if the visitor is female.

For men, the standard business attire is a suit and tie. For evening functions such as receptions and dinners, a dark business suit is usually worn. Slacks and short-sleeve shirts are suitable for casual wear. Shorts should not be worn in public. Women are also expected to dress conservatively, eg. long skirts should be worn and a head scarf is optional. 

‘Small talk’ is vital for the establishment of trust and must not be hurried or dispensed with. In introductory business conversations, talk often centres on the health and well being of the other person, but never about his wife and female relatives.

Refreshments should always be accepted. Coffee is offered to guests in order of their rank, if known to the host. It is customary to drink more than one cup of coffee or tea but not more than your host or others present. To decline a further serving, you shake the cup when handing it back to the server.

It is not unusual for a Bahraini businessman to receive several visitors at once. It is a Bahraini custom of having a number of people in an office all discussing various matters at once. When invited into an office, you will be given a seat, refreshments, and begin introductory conversation, after which your host may break off conversation with you and deal with one of his other visitors before returning to you.

The exchange of gifts is common practice but items are usually limited to small corporate items such as pens and brochures.

Social etiquette

Do not use your left hand when passing or receiving items as it is considered unclean.

Bahrainis' show respect for seniority that visitors should also observe. For example, ensure that an older or more senior person walks through the door first. Similarly, if walking together, the guest or senior person should be on the right of the group as a mark of respect.

It is considered offensive to sit with the soles of your shoes or feet facing the other members of your group.

Bahraini men are usually addressed by their first given name. For example, Mr Khalid Bin Abdullah Al-Jasem has the given name of Khalid, is the son of Abdullah and his tribe or family grouping is Al-Jasem. He would therefore be called Mr Khalid.

If invited to dinner, it can generally be assumed that only males will attend the function. Women frequently have separate functions.

If you invite a Bahraini to dine with you, do not include his wife in the invitation unless you have prior indication that she may accept..


Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

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Tariffs and non-tariff barriers

Tariff

In 2005, Bahrain became the first country to enter into an FTA with the US resulting in tariff free trade between the two countries.

Non-tariff barriers

Import restrictions

Consolidated shipments are allowed. Charges collect and back-to-back shipments are allowed. Cigars and cigarettes (tobacco) promotional items are not allowed.

 
There is no general import licensing system. However, imports of arms and ammunition alcohol, pearls and jewellery, drugs and pharmaceuticals, and some electronic and camera equipment are controlled.


Importers must be members of the Bahrain Chamber of Commerce, and be registered in the commercial registry, Ministry of Commerce.


The Bahrain Monetary Agency is responsible for exchange control. Foreign exchange is freely available from authorised banks. Most trade is transacted in US dollar, to which the Bahrain Dinar is directly tied.


The sale of pork and pork products is restricted and can only be retailed in specially marked areas.


The import of cultured pearls is prohibited.


All imports from Israel are prohibited, as are products manufactured by foreign companies blacklisted by the Arab League.

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Product certification, labelling and packaging

Labelling

Outer containers should carry consignee's mark and port mark and should also be numbered (to accord with packing list) unless their contents can be otherwise readily identified. It is essential that the country of origin is indicated. The name of the manufacturer or supplier should be shown on four sides of the packing case.


Labelling in Arabic is mandatory. Additional labelling in another language shall be identical to the label's details indicated in Arabic.


All imports must bear a label indicating country of manufacture. Labels on foodstuffs must indicate common or generic name, list of ingredients, nutritional qualities, preparation and storage directions, name and address of manufacturer, packer and distributor, country of origin, production date, date of packing, expiry date, net contents, grade or quality and batch number.


Gold and silver jewellery must be correctly hallmarked.


All drugs sold must display the dates of production and expiry.

Special certificates

Health certification, issued by an approved authority in the country of origin, is required for all shipments of animals, plants and their products (see 'Public health requirements').

Live plants are not permitted entry if packed in soil. Peat moss is acceptable. The certificates issued for animals must indicate freedom from infectious diseases (rinderpest inoculation in the case of cattle). Certificates accompanying shipments of fresh, chilled and frozen meat, poultry and fish must state that the products are fit for human consumption.


A certificate of free sale may be required for imports of food, drugs and pharmaceutical products.

Packaging

Packing should be secure and should guard against extreme heat and humidity in summer and possible storage in the open.

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Methods of quoting and payment

Quotations should be in $US on a C&F or CIF basis (Incoterms 2000). Payment is usually by letter of credit or sight draft.

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Documentary requirements

Commercial invoice

No prescribed form. Two copies are required by customs. The customer should advise the number of additional copies. The top copy must be an original. Photostat copies are considered original if they are stamped 'Original', and bear the original official stamp and signature of the exporting company. Fax copies are not acceptable.


The commercial invoice must contain accurate descriptions of the goods, country of origin, marks and numbers, rebates and discounts, and the name and address of the manufacturer. It is important that details of the CIF value and gross and net weights of each separate commodity (especially on mixed consignments) should be provided by the exporter on invoices and shipping documents to enable the importer to clear the goods.


The commercial invoice must bear the following certification: 'We hereby certify that the goods enumerated in this invoice are not if Israeli origin nor do they contain Israeli material and are not being exported from Israel.' It must include an endorsement to the effect that all particulars given in the invoice are true and correct, and must state whether it was prepared by the manufacturer or by the exporter.


Certification by an Arab representative may be requested; if so, follow importer's instructions.

Bill of lading

To Order bills are acceptable.


Goods may be consigned directly to Bahrain or In Transit, in which case, the words In Transit must appear on the lading document if the destination of the goods is beyond Bahrain. Some merchants may require all documents to be stamped In Transit, in which case, the words In Transit should be entered in the Leading Marks column. Bahrain should be entered as the port of delivery.


Freight charges must be prepaid for CIF invoices (Incoterms 1990) or else a separate invoice for freight must be included, to enable collection prior to clearance of the goods.

The CCCN heading must be included on at least one copy of the bill of lading.

Packing list

A packing list is not compulsory but it facilitates clearance.

Certificate of origin

One copy is required. This must indicate: country in which the goods were manufactured, the name of manufacturer or supplier and that no material of Israeli origin was used in their manufacture and that they are not being imported from Israel.


It must be certified by an approved authority prior to consular legalisation.

Insurance

Normal commercial practice. However, insurance must be arranged with a company with no Israeli connections.

Weights and measures

The metric system.

Public health requirements

The import of animals and animal products, plants and plant products (including seeds, fruit and vegetables) require health certification from an approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service (AQIS), Commonwealth Department of Agriculture, Fisheries and Forestry or relevant state department of agriculture. Livestock also requires prior permission from the Bahrain Government.


Only licensed merchants may import food, drugs or pharmaceuticals. A certificate of freesale may also be required. These certificates are issued by the approved authority in the country of origin, (proving that the product is allowed to circulate in that country). In Australia the issuing body is generally either the Therapeutic Goods Administration or the National Registration Authority for Agricultural and Veterinary Chemicals.


The import of products containing phenylbutazone and oxyphenbutazone is prohibited.

Imported food products must be accompanied by a certificate, issued by a 'reliable authority', stating that the products contain no cyclamates.

Air shipment

Original, printed, signed, legalised invoice is required clearly mentioning the manufacturer's name, country of origin, harmonised commodity code, packing list, purchasing terms.


The commercial invoice (one original + two copies) duly signed showing specific name, address and country of manufacture with description of goods and showing terms of purchase.


Certificate of origin is also required, if available.


Legalisation is required. Commercial invoice and Certificate of Origin is to be legalised at the Bahrain Embassy in the Country of Origin. If the Bahrain Embassy is not available, legalisation can be done at any Arab embassy. There will be a fine if legalisation is not done.


Limited pre-inspection facilities and Transhipments / transit are available at the Bahrain ports of entry, subject to restrictions applied as per IATA Rules Books for Bahrain.

Ocean shipment


The following shipping documents should be forwarded at least 72 hours prior to the arrival of shipments to Bahrain:

  • Original carrier master bill of lading
  • One full set of house bill of lading
  • Freight invoice (if any freight collection at Bahrain)
  • One set of freight/cargo manifest (cargo destined for Bahrain only)

Carrier master bill of lading should show the shipper name and consignee name (destination agent's name). House bill of lading should show full style address of the actual consignee in Bahrain (with contact details) prompt dispatch of cargo arrival notices.


All cargo documents must show the following details clearly:

  • Correct address of consignee / notify party (not bank's address or to order only)
  • Number of packages
  • Weight and measurements

Original, printed, signed, legalised invoice is required clearly mentioning the manufacturer's name, country of origin, harmonised commodity code, packing list, purchasing terms.


Legalisation is required. Commercial invoice and Certificate of origin is to be legalised at the Bahrain Embassy in the country of origin. If the Bahrain Embassy is not available, legalisation could be done at any Arab Embassy. There will be a fine if legalisation is not done.

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Taxation

No tax or duty is payable on imports of raw materials or semi-manufactured goods for manufacture, imports required for development projects, and transhipments or re-exports.

Further details can be obtained from Tradeport.

A municipality tax of two per cent on ghee and fresh fruit is levied. There are no customs surcharges.

There is no personal or corporate taxation in Bahrain. The financial sector is not active in encouraging small and medium size enterprises.

In 1999 Bahrain was removed from the United States watchlist of countries violating intellectual property rights.

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OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

     

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