24 June 2022 Saudi Arabia increases customs duties on certain goods On 12 June 2022, the Kingdom of Saudi Arabia (Saudi Arabia) Finance Minister and Chairman of the Zakat, Tax and Customs Authority (ZATCA) issued Decision No. 59334 (Decision) approving the increase of customs duties on a range of products. The increase in customs duties is intended to encourage and protect national industries and local agricultural products. The Decision was published in the Official Gazette on 12 June 2022 and came into effect on the same day. Prior to the Decision, the products which are affected by the increase of customs duties were subjected to customs duties ranging from 0% to 20%. The Decision mandating the increase of customs duties on these goods imported into Saudi Arabia was issued in response to the request by the Ministry of Industry and Mineral Resources and the Ministry of Environment Water and Agriculture, to protect national industries. The new customs duties range from 6% to 25% and will impact 99 Harmonized System (HS) codes covering an extensive range of products. Further details can be found on Umm Al-Qura website, accessed through this link (only the Arabic version is currently available).
In light of the new tariff changes in Saudi Arabia, companies involved in the import and export of goods should evaluate the impact of the new tariff rates on their supply chain, as applicable. In addition, such companies should review and declare the accurate HS codes while importing the affected goods for duty payments in compliance with the Decision.
Document ID: 2022-0986 |
