a- Foreign Trading Companies can Export their Goods to Kuwait
through the following:
1- A Kuwaiti agent to import the goods from the exporting company in accordance with agency agreement contract signed between the two parties.
2- A Kuwaiti businessman who imports via a documentary credit.
3- A Kuwaiti intermediate, whether an importer or a commission agent.
The great competition in the Kuwaiti market increases the importance of and the role played by price in marketing any type of goods. Therefore, a lot of foreign companies prefer to appoint an agent for its products in the State of Kuwait due to the agent’s experience role in marketing. Further, the Kuwaiti merchant always prefers to deal directly with the foreign producing company, or at least with its general approved agent in exporting.
It is worthy mentioning that the laws of the State of Kuwait expressly state that agencies are only for Kuwaiti persons, whether natural or artificial. Laws do not restrict the appointment of sub-agents in the State of Kuwait by the sole agent of the company in the area, provided that the latter do not practice distribution in Kuwait.
b- Methods of Receiving Exported Goods:
Exporters to Kuwait can obtain the prices of their exports via all means of payment and credits known worldwide.
In general, it is advised to follow the style of payment through documentary credits. Bank transactions can be performed in any free and acceptable foreign currency.
c- Documents and Papers Needed for Goods Clearance:
1- Official delivery order issued from the vessels agent or any other authorized entity, showing the number of parcels, their contents and their description as stated in the manifest.
2- Invoices of three copies, mentioning the type of goods in details, unit price, total price, net and gross weight, full name and address of the producer and the exporter, goods origin and exporting entity, approved means of shipment, name of shipping port, type of packing and folding of the goods, trade marks and approved numbers shown on the parcels of the shipment as reflected in the manifest, and authentication of the invoices from the concerned entities (embassy of the State of Kuwait or Kuwaiti Consulate in the exporting country. In case there is no representation of the State of Kuwait on the diplomatic or the consular level, authentication can be obtained from any of the embassies or the consulates of the GCC countries. If not available, from Arab embassies and consulates members of the Arab League found in the exporting country.
3- List of contents (packing) showing the type and method of packing (in boxes, cartoons, bale, parcel, container, etc.), contents of every parcel with its gross and net weight and its value, in addition to the harmonized code of each item. Originals of such list should be authenticated.
It should be verified that on each parcel, box or bale of the exported items bear the name of the country of origin is shown in a fixed manner that can not be damaged, provided that it conforms with the name mentioned in the letter of credit, and all documents relevant to this shipment, and that the commercial trademark is clearly printed on all parcels, and is identical to the trademark mentioned in the manifest.
4- A certificate of origin issued from the producing or the exporting company, authenticated from one of the Arab-Foreign Chambers of Commerce, or the local Chamber of Commerce (in case of the non-existence of the Arab-Foreign Chamber of Commerce), or the Union of Exporters or the Union of Industries in the exporting country stating that the exported goods are of ………. Origin, and that the materials it is made from are ………, exported from……………, and that the producing and manufacturing company is………. In addition to the above, the said certificate should include the name of the factory or the origin, where the goods were manufactured, the name of the producing company. Moreover, the certificate of origin should state the original source of the goods, the net and gross weight, the trade mark mentioned in the Manifest, the total value, the type of packing and folding, and the means of transportation. Originals of the certificate of origin should be duly authenticated.
D- Important Instructions:
1- Assuring that the opened letter of credit upon request of the goods contain every possible detail and specification, particularly those related to measurement, number, colors, packing, folding and method of shipment.
2- Assuring that the importer has received all the documents and shipment papers prior to the arrival of the goods to Kuwaiti ports. Items cannot be custom cleared without such documents.
3- Assuring that materials used in packing and folding are fully suitable to the type of goods exported, will stand the voyage, loading, and unloading processes.
4- It is preferred that shipping be direct to the country of destination, and in one shipment (non-segregated) for each order separately.
5- Procedures of receiving frozen items should be immediately taken upon arrival of the items to the destination port. The same applies to other types of items to avoid accumulation of goods in the stores of the port.
6- Assuring that exported items are not prohibited, and that an importing license for items requiring special importing license, was obtained prior to the date of shipment.
7- Exporters to Kuwait, and importers therein, should be fully aware of the laws, systems and instructions concerning goods as issued from official authorities and as published in the official gazette “Al-Kuwait Al-Youm” (Kuwait Today).
8- It should be taken into consideration that in view of the establishment of the customs union as of the first of January 2003, any land or sea custom point of the GCC Arab Countries that has connection to the outside world shall be considered as a point of entrance to the foreign goods of any member country. The first custom point shall perform the inspection and viewing of the goods coming from member countries, assure their conformity with the required documents, its being free from prohibited items and shall collect custom charges due thereon.
9- The commercial reputation and financial status of any company or establishment in the State of Kuwait can be obtained from Kuwait Chamber of Commerce and Industry and local banks.
10- Import and export is only allowed for members registered with Kuwait Chamber of Commerce and Industry.