Customs Duty Suspensions 2025: How Manufacturers Can Save 5 % on Raw Materials
Most imports into Oman attract a standard 5 % customs duty—a margin-killer for manufacturers who rely on overseas inputs.
What many businesses still overlook is the Industrial-Exemption (duty-suspension) scheme under Royal Oman Police – Directorate General of Customs.
With the right licence and paperwork, you can land raw materials, machinery, and even packaging at 0 % duty, boosting cash-flow overnight.
1. What Is the Industrial-Exemption Scheme?
Oman’s Customs Law allows companies holding a valid industrial licence to apply for duty suspension on:
- Raw and initial materials
- Machinery, spare parts, production-line equipment
- Wrapping and packing materials
- Once approved, these items enter Oman duty-free, provided they feed directly into local production.
2 Who Qualifies in 2025?
| Criterion |
Requirement |
| Industrial licence |
Issued by the Ministry of Commerce, Industry & Investment Promotion (MOCIIP). |
| Commercial registration (CR) |
Up-to-date CR with “industrial activity” code. |
| Production plan |
Detailed list of HS codes, quantities, and end-use in the factory. |
| Separate accounting |
Ability to track exempt goods in inventory until consumed. |
Tip: SMEs with turnover < OMR 1 million can still qualify if they hold a formal industrial licence.
3 How Much Can You Save?
| Item Category |
Typical Duty |
Post-Exemption Duty |
Cash Saving |
| Bulk steel coils |
5 % |
0 % |
OMR 50,000 on a OMR 1 m shipment |
| Food-grade packaging film |
5 % |
0 % |
OMR 12,500 on OMR 250 k import |
| CNC machinery |
5 % |
0 % |
OMR 25,000 on OMR 500 k machine |
Add import VAT at 0 % if you subsequently export 100 % of finished goods.
4 Four-Step Application Process (Bayan System)
- Collect documents – CR, industrial licence, signature specimen, production plan.
- Submit ‘Request for Industrial Exemption’ via Bayan customs portal.
- Tri-agency review – Customs, MOCIIP, and Ministry of Finance meet to approve.
- Import under exemption – use the approval code when declaring shipments.
5. Common Pitfalls (and Fixes)
| Pitfall |
Quick Fix |
| Mixing exempt and non-exempt stock |
Maintain separate inventory codes; annual audit. |
| Licence expired mid-year |
Renew before importing—retroactive duty applies if lapses. |
| HS code mismatch |
Cross-check against the new GCC Unified Tariff 2025 list. |
| No production evidence |
Keep BOMs, production logs, and scrap reports for 5 years. |
6. 2025 Compliance Checklist
- Industrial licence valid through 2026
- CR mirrors industrial activity code
- HS codes mapped to GCC Unified Tariff 2025
- Bayan portal access and signatories updated
- Inventory system tracks exempt stock consumption
- Annual customs audit folder prepared
