Article 22 of the GCC Common Excise Tax Agreement establishes the legal basis for penalties related to excise tax violations. The provision mandates that each Member State is responsible for creating and imposing administrative penalties for any contraventions of their respective local excise tax laws. This article ensures a framework for enforcement, delegating the specific details of the penalties—such as the nature and severity of fines or other sanctions—to the national legislation of each individual GCC state. It underpins the importance of compliance with local excise regulations by requiring a punitive system for non-compliance.