Executive summary

On 27 October 2025, the Minister of Finance, in his capacity as Chairman of the Board of Directors of the Zakat, Tax and Customs Authority (ZATCA), issued Decision No. (1447-88-5), approving and implementing amendments to specific Harmonized System (HS) codes and their related subheadings in the Integrated Customs Tariff Schedule, which is based on the international system of classification of goods developed by the World Customs Organization.

Additionally, the Minister of Finance issued Decision No. (1447-88-7) dated 14 November 2025, revising the customs duty rates for the specified HS codes, as a schedule provided in Decision No. (1447-88-5), taking into account the ceilings that Saudi Arabia committed to with the World Trade Organization (WTO).

Detailed discussion

Decision No. (1447-88-5) includes the introduction, deletion and modification of HS code descriptions, and the introduction of HS code 98.04, for goods transferred between customs zones within the country, including free zones. The provisions outlined in Decision No. (1447-88-5) do not affect any existing or future decisions regarding amendments to customs duty rates intended to protect and promote national industries and agricultural products.

Decision No. (1447-88-7) details updates to the customs tariff (HS codes) for a wide range of food and beverage products, including sweetened drinks, with new subcategories that specifically reference sugar content per 100 g/ml (e.g., less than 5 g/100 ml, 5 g to 7.99 g/100 ml, 8 g/100 ml or more). This granular classification appears to be aligned with the recent changes in excise tax applicable to sweetened beverages, which imposed different tax rates based on the sugar content of beverages. (For background, see EY Global Tax Alert, Saudi Arabia to implement new excise tax method for sweetened beverages, dated 3 December 2025.)

Both the decisions were published in the Official Gazette and came into effect on 27 November 2025.

Recent amendments to the customs tariff schedule have resulted in a broad range of duty increases, with some rates remaining unchanged or increasing only marginally, while others have seen substantial hikes, reaching up to 20% for select products. Notable examples include protective goggles, medical eyewear and refrigerated vehicles.

Key tariff changes are as follows:

• Many goods in the food, agriculture and light manufacturing sectors now face higher duty rates, commonly ranging from 5% to 15%. Notable examples include bovine meat and animal fats and oils at 15%.
• Certain products previously exempt from duties, such as sugar cubes and sugar powder, are now taxed at 15% and 20% respectively.
• The agricultural and food sectors are the most affected, with increased duties on meats, fish, dairy, processed foods, sugar and edible oils. Industrial sectors, including building materials, chemicals, plastics and machinery, have also experienced notable rate increases.

These adjustments are primarily aimed at supporting domestic manufacturing and agriculture, in alignment with Vision 2030 objectives.

Implications

Importers and businesses operating in Saudi Arabia should be aware of the amendments to the HS codes and subheadings in the Integrated Customs Tariff Schedule, whether related to introducing, deleting or modifying descriptions, or adjusting the customs duty rates for HS codes in line with WTO commitments.

It is also important to take into consideration the introduction of HS code 98.04 for goods transferred from one customs zone to another within the country, including free zones. Familiarity with these changes is essential for compliance and to mitigate disruptions in operations.