- Legislative Decree No. (16) of 1987
LEGISLATIVE DECREE NO. (11) OF 1985
WITH RESPECT TO PROMULGATING THE PROTECTION & SUPPORT OF NATIONAL INDUSTRIES LAW
We, Isa Bin Salaman Al Khalifa, Amir of the State of Bahrain
- Having reviewed the Constitution,
- And Amiri Decree No. (4) of 1975,
- And upon the submission of the Minister of Development and Industry,
- And with consent of the Council of Ministers,
HEREBY ENACT THE FOLLOWING LAW:
A national industrial establishment shall mean every establishment which has its main objective the conversion of raw materials into finished goods or the conversion of semi finished goods into finished goods, the mixing, assembly, packaging or wrapping of products by using mechanical means provided that Bahrain or GCC citizens hold at least 51% of its capital.
Protection shall mean measures adopted for the protection of national industrial production, such as the imposition of custom tariff applicable to imported products which are similar to the nationally manufactured products, the restriction of such imported products or the adoption of other similar measures.
Support shall mean assistance, facilities and privileges granted to national industrial establishments and all other means which lead to the encouragement and growth of national industry.
"As amended by Legislative Decree No. (16) of 1987"
The Council of Ministers may upon the recommendation of the Committee for the Protection and Support of National Industries, provide protection and support generally to national industrial establishments by various means and in particular by:
- The imposition of protective custom tariffs applicable to imported manufactured products by a percentage which shall be determined by the Board.
- Limitation of the import of similar industrial products for fixed periods of time.
- Exemption of custom duties on imports of capital machinery and equipments required for the factory or for increasing its production capacity.
- Exemption of custom duties on imports of raw materials and semi- finished materials required by the establishment and exemption of duties on exports.
- National products in government purchases are granted a 10% priority in prices over similar imported products and a 5% priority over similar products of national origin and in case of non-availability of a national product, products of national origin shall be granted a 10% over similar imported products.
For the purpose of implementing the provisions of this article a national product shall mean a product produced in the State of Bahrain and deemed to be a national product in accordance with its Laws. Products of national origin shall mean products where the percentage of the value added ensuing from their production in a member State of the Gulf Cooperation Council shall not be less than 40% of their final value when production is completed and the ownership of the citizens of these states in the establishment shall not be less than 51%.
Production and support may be obtained in accordance with the provisions of the preceding Article subject to the following conditions:
- The local production factors involved in the production from the commencement of protection shall not be less than 20% during the first three years and shall be increased to more than 40% after five years from such date .
- The lapse of one year from the commencement of production.
- The products of the establishment requesting protection should be of high quality.
- The production of the establishment should cover a reasonable proportion, to be determined by the concerned authorities, of the local consumption.
- The establishment shall utilize the production factors such as raw material, labour and other similar factors in a proper manner.
- The provision of information required by the committee and the undertaking of the persons in charge of the establishment to facilitate the work of the experts and technicians appointed to ensure, in the establishment premises, the accuracy of the information provided and efficiency in the utilization of the production factors.
New industrial projects should satisfy the following conditions:
- Submission of a financial and technical feasibility study acceptable to the Ministry of Development and Industry.
- To provide employment opportunities and training to Bahraini labour.
- The project should contribute to the growth of industrial development, in particular, with regard to the replacement of imports, export and use of locally available production factors.
The Prime Minister shall, by a resolution to be passed by him, form a committee, to be called “The committee for the Protection and support of National Industries” which shall include representative of the Ministry of Development and Industry, the Ministry of Finance and National Economy and Ministry of Commerce.
The resolution shall determine the functions and procedures for the work of the Committee.
An application for protection and support shall be submitted, in the prescribed form to the Directorate of Industry.
The application shall be referred to the Committee for review, verification of the information provided thereby and preparation of a report containing the recommendations of the Committee in respect of the application.
The committee shall submit its report to the Minister of Development and Industry who shall submit it, in his turn, to the Council of Ministers accompanied by a memorandum.
The application shall be notified, by a registered letter, of the acceptance or rejection of the application by a resolution to be passed by the Minister of Development and Industry.
The Council of Ministers may, upon a recommendation of the Minister of Development and Industry, decide to deprive an establishment from all or part of the privileges provided for under this Law in the event of its violation of the provisions of this law or its implementing regulation.
The establishment shall be informed of the decision through a registered letter issued by the Minister of Development and Industry.
An applicant whose application has been rejected, or a person who has been deprived from all part of the privileges provided for by this law, may appeal to the High Court within 30days from the date of notification thereof against the resolution referred to in the second paragraph of the preceding Article.
The lapse of one year from the date of application is deemed to be a rejection of the application.
The Minister of Development and Industry shall issue the necessary resolutions for the implementation of the provisions of this Law.
Each minister shall, where applicable, implement the provisions of this Law which shall come into force on the date of the publication thereof in the Official Gazette.
Isa Bin SalamanAlKhalifa
Amir of the State of Bahrain
Issued at Reffa’a Palace
15 sha’aban 1405 Hijri
15 May 1985