Increase in customs duties in Saudi Arabia – with effect from 20 June 2020
The Council of Ministers has announced an increase in customs duties effective from 20 June 2020.
The rate increases range from 0.5 to 15%. A full list of new duty rates can be found on the Saudi Customs website.
The increase in duty rates affects a wide variety of products such as: dairy, food products, chemicals, plastic, rubber, leather, paper, clothes, shoes, fabrics, marble, ceramics, porcelain, glass, various metals, furniture and machinery. Please see below examples of the products affected:
We recommend that all importers consider a detailed assessment of their supply chain and customs practices in an effort to explore strategies to mitigate the likely negative effect of the duties increase on the business. For example, ensuring that the correct tariff codes are applied, making use of customs duty exemptions and reductions available (including the applicability of Free Trade Agreements, General System of Preferences, etc), use of bonded warehouses and tolling arrangements).
KPMG in Saudi Arabia can advise businesses on these matters and provide support with the estimation of the impact of duties increase, identifying options to mitigate the effect on the business, planning and execution of the transitional measures needed, as well as support with the ongoing compliance with the customs legislation in Saudi Arabia.
For more information and to discuss how this announcement might affect your business, please do not hesitate to contact us.
Head of Indirect Tax
Indirect Tax Manager
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