VI. TRADE REGULATIONS AND STANDARDS Qatar recently became a member of the General Agreement on Tariffs and Trade (GATT). Earlier it participated in GATT as an observer. As a member of the GCC, it also participates in the GCC's free trade arrangements, which provide duty-free access to all goods produced in GCC states, provided that the goods meet GCC content requirements (at least 40 percent value- added within GCC in plants which are at least 51 percent owned by GCC nationals). GCC states have yet to integrate matters such as external tariffs, standardization of investment and industrial rules and regulations, and facilitation of intra-GCC travel. Qatar has been engaged through the GCC in trade and investment negotiations with the United States, the European Community and Japan. The dialogue initiated among them is on-going. In addition to the GCC Economic Agreement (1983) signed among member states of the GCC, Qatar has signed economic/commercial agreements with Egypt and Tunisia in recent years. While some slight progress has been made in carrying out the GCC economic agreement, there have been few developments on any of the other agreements. Yet Qatar continues to hold discussions with many countries on improving trade ties and exchanges. Internally, Qatar maintains a variety of trade barriers which can affect foreign investors. Import of religiously or politically sensitive items may also be banned by the GOQ. Although tariffs are relatively low (4 percent on a very wide range of products), the GOQ recently raised the tariff on cigarettes to 50 percent; the GOQ still maintains a high tariff level of 20 percent on steel imports in order to protect the State-owned Qatar Steel Company. Officially, foreign firms placed on the Arab Boycott of Israel list are not allowed to do business in Qatar. However, in recent years, the GOQ has deleted unilaterally some giant foreign firms, including some U.S. corporations, from the blacklist. Moreover, Qatar has moved unofficially to ease the secondary and tertiary aspects of the boycott. Further action will be linked to progress in Middle East negotiations. All importers are required by law to have an import license for almost all products. Such import licenses are issued only to Qatari nationals. Even in the case of joint ventures between foreign and Qatari partners, agency/dealership agreements issued by foreign suppliers can be registered only in the name of the Qatari partner in the Commercial Registration Department of the Ministry of Finance, Economy and Commerce. Foreign investors entering into a joint venture with Qatari partners are allowed a maximum of 49 percent interest in the business. Taken together, the above represents a formidable array of privileges and preferences, which disadvantage a foreign investor in the Qatari market. Despite stated fines and penalties, the practice of a Qatari illegally lending his name to a foreign-owned/operated business has been common, but on a reduced scale in recent years. Current laws and regulations of the Ministry of Municipal Affairs and Agriculture and the Ministry of Public Health require labeling and marking requirements to be honored, especially where import of foodstuffs is concerned. Labels should clearly show name and address of producers, dates of production and expiry, contents and components. Shelf life validity of all foodstuffs should not be less than six months, as of date of entry of the products into Qatar. All foodstuffs are examined at the State-owned and State-regulated Central Laboratories before they reach consumers. Import and distribution of alcoholic liquor is strictly controlled, through an arrangement between the Customs Department and the British Embassy in Doha. Alcoholic drinks are not allowed to be imported into Qatar by any other means. Additionally, in accordance with Islamic laws and regulations, pork and pork derivatives are not allowed to be brought into the country. Qatar and other GCC member states are preparing lists of standards to be termed "GCC Standards" for all imports into the six member countries. GCC specifications on motor vehicles have been introduced already, and have been incorporated at the manufacturing level in producing countries. Until specifications relating to other imports are drafted and approved, Qatar continues to acknowledge international standards. In Qatar, the letter of credit (LC) is the most common instrument for controlling exports and imports. When an LC is opened, the supplier is required to undertake to provide a certificate of origin, and a certificate from the captain of the ship or from the shipping agency stating that the ship is allowed to enter Arab ports. Both documents should be notarized by an Arab Embassy or consulate or an Arab Chamber of Commerce in the exporting country. In order to clear goods from Customs zones at ports or land boundaries in Qatar, importers must submit a variety of documents, including a Bill of lading, certificate of origin, proforma invoice and import license. In Qatar, only authorized local agents are allowed officially to import specific goods produced by the foreign firms they represent in the local market. However, this requirement may be waived if the local agent fails to provide the necessary spare parts and backup services for the product in Qatar. Tariffs: Generally 4 percent ad valorem on all foodstuffs and other industrial products. Hi-fi equipment 10 percent, steel 20 percent and cigarettes 50 percent. Import Licenses: All imported beef and poultry products require a health certificate from the country of origin and a halal slaughter certificate issued by an approved Islamic center in the country of origin. As is the case with other products, importers of foodstuffs should have an import license, which is issued only to Qatari nationals by the Government. Labelling: Food labels must include production and expiry dates, country of origin, name of the manufacturer, net weight in metric units, and a list of ingredients and additives, if any. All fats and oils used as ingredients must be specifically identified on the label. Labels should be in Arabic or Arabic/English. Prohibited imports: Pork and pork products and constituents.