Import licenses for items sold in Bahrain are issued only to local companies that are at least 51% Bahraini-owned. Principal prohibited items are arms, ammunition, liquor (except by authorized importers), and cultured pearls. Customs duties are 20% on corn and palm oil (duties for most foodstuffs were abolished in 2000); 10% on non-essential goods; 20% on cars and boats; 100% on tobacco and cigarettes; and 125% on authorized imports of liquor.
A free transit zone operates at the port of Mina Sulman. Free trade is available with Gulf Cooperation Council (GCC) countries if products have at least 40% local value-added content.