Saudi Arabia Council of Ministers announced an increase to the rates of customs duties, effective 20 June 2020.
The customs duties rate increases the range from 0.5% to 15%.
A full list of new duty rates can be found on the Saudi Customs website. Briefly, imported products affected by the customs duty rate increase include dairy and food products, chemicals, plastic, rubber, leather, paper, clothes, shoes, fabrics, marble, ceramics, porcelain, glass, various metals, furniture, and machinery.
Importers need to 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 customs duty rate increases. For example, it would be prudent to determine that the correct tariff codes are applied, and to make use of customs duty exemptions and reductions available (including free trade agreements, General System of Preferences, etc.) and the use of bonded warehouses and tolling arrangements.
Read a July 2020 report prepared by KPMG International
For more information, contact the Global Practice Leader of KPMG’s Trade and Customs practice:
Doug Zuvich | +1 312 665-1022 | email@example.com
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