The Gulf Cooperation Council will set up electronic clearing system to resolve customs duties between Bahrain, UAE, Saudi Arabia, Kuwait, Oman and Qatar.

However, the formation of a customs union has been postponed due to differences over revenue sharing and snags in meeting rules set by World Trade Organisation, a top official said.

"We will not rush things and we will study and review at all stages," said GCC Secretary-General Abdulrahman A-Attiyah.

Al-Attiyah added that the states needed to work out procedures for the smooth passage of goods between the countries.

Kuwaiti Foreign Minister Mohammad al-Sabah highlighted the issue of sharing of tariffs, saying, “We agreed to work with the system as it exists now, and undertake an annual review, because the process is dynamic and not static.”