As of January 1st 2002, Common Customs Law was implemented by all Member States. On January 1st 2003, the GCC Member States achieved an important step by establishing the Customs Union where a common external tariff of 5% was levied on all foreign imports. Such CET was implemented on January 1st 2003. However, a number of essential commodities were exempted from customs duties as well as the customs exemptions provided for in the Common Customs Law and the WTO tariff bindings of some Member States. Duty–free commodities account for some 10% of the imported goods. Customs procedures have been applied to all foreign goods at the first point of entry into any of the Member States. Accordingly, the first point of entry would inspect and examine the foreign goods imported through it, ensure their conformity to the required documentation and that they do not contain any prohibited goods, and consequently levy the applicable duties. Hereafter, goods will move freely within Member States. That required abolishment of the Intra-GCC transit of foreign goods as Member States constitute a single customs territory.

Within the framework of following up the implementation of the requirements of the customs union, a team from the Secretariat and Member States had visited some customs offices at the GCC ports during September 2003 and January 2005 to ensure implementation of the requirements of the customs union. Customs officers from the GCC Customs Administrations were assigned to work at the customs ports of the other GCC Member States during May 2004 with a view to exchanging customs expertise among Member States.

Within the efforts being made for following up implementation of the customs union, the GCC Ministers of Economy and Finance resolved as follows:

Member States shall provide the Secretariat with copies of the instructions given to the customs administrations and border customs offices concerning implementation of the requirements of the customs union, and the Secretariat would in turn notify such instructions to the Member States
The Customs Union Committee shall be instructed to complete the studies related to the Customs Union, along with adopting a time schedule for elimination of all barriers and difficulties delaying the process of the Customs Union
The Customs Authorities of Member States shall not require national products to meet conditions more than those required from similar foreign products, in respect to the format and type of the evidence of origin
Increasing the official working hours at the Intra-GCC borders of Member States in order to facilitate the Intra-GCC flow of goods and encourage trade between Member States. Member Customs Administrations have instructed the Intra-GCC customs points to increase their official business hours
Not to require industrial license for the first consignment of factory products; where the customs are doubtful about the origin of national goods, the applicable duties shall be levied under deposit pending presentation of the origin evidence
Stressing that national product shall have a single evidence of origin; where two evidences (national or foreign) are labeled to a single product, such goods shall be subject to customs duties
Full adherence to the resolution of the Supreme Council adopted at its 22nd session (December 2001) and 23rd session (December 2002). That resolution has provided for a common external tariff to be imposed on foreign commodities, and that no Member State may exempt any dutiable commodity unless such exemption is agreed on within the framework of the GCC
Where a Member State wants to exempt any commodity for prospective contingent reasons, that Member State shall call for an exceptional meeting of the Customs Union Committee to examine the issue and submit appropriate recommendation to the Ministers of Economy and Finance at the GCC States
Approved a mechanism for the Intra-GCC movement of prohibited or restricted goods.
Approved the controls on the food products imported across intra-GCC borders
Approved uniform restrictions, conditions and procedures for the registration and importation of medicaments across Member States.
Established a Customs Information Center, which will provide important information on the Intra-GCC flow of goods.
Issued of the second edition of the GCC Common Customs Law, which entails the new mechanisms for determining the value for customs purposes in consistent with the WTO requirements that has been implemented by all member Customs Administrations as of January 2008.
Issued of the second edition of the Common External Tariff including the commodities that Member States agreed to exempt from customs duties.
Approved a mechanism for the intra-GCC movement of goods under the final status of the customs union.
Approved unified procedures for inspection and release of postal consignments imported through land borders of GCC Member States
Approved a mechanism for calculating the value of second-hand modes of transportation imported into Member States.
Approved a mechanism for treating foreign goods imported without an evidence of origin.
Exempting a number of commodities within the WTO tariff bindings of Member States under the Information Technology Agreement (ITA).
Approved the electronic clearing mechanism within the GCC customs union.