Saudi Arabia: Increased customs duties effective 20 June 2020

Saudi Arabia: Increased customs duties

Saudi Arabia Council of Ministers announced an increase to the rates of customs duties, effective 20 June 2020.

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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.

For example:

  • Foods and beverages—the customs duty rates for dairy products, yogurt, buttermilk, cream, natural butter, butter oil, fresh cheese, maize (corn) starch, glucose sugar, cream caramel, and artificial honey have increased from 5% to a range between 6% and 15%, depending on the product.
  • Chemicals—the customs duty rates for bulk gypsum, zinc oxide, polyamide, silicon resins, bidets, reservoirs tanks, screws, bolts, and washers have increased from 5% and 12% to a range between 5.5% and 15%, depending on the product.
  • Leather products—for example, the customs duty rates for raw skins of goats, tanned skins of goats in the wet state split but not further prepared, and further prepared after tanning skins of sheep without wool un-split have increased from 12% to a new rate of 15%.
  • Straw, paper products—the customs duty rates for unbleached paper in rolls, box files, letter trays, and packing containers for files have increased from 5% to a range between 8% and 10%, depending on the product.
  • Carpets, clothes, shoes—the customs duty rates for synthetic staple fibers (not carded, combed or otherwise processed for spinning), non-woven fabrics, other non-woven fabrics of synthetic, carpets made of synthetic textile materials, blankets, and men 's shoes with outer layer of wood and leather have increased from 5% and 12% to a new rate of 15%.
  • Other products—the customs duty rates for marble and ceramic products, granite paving stones, pipes and pipes, plates and sheets of drawn glass, mixed cast iron, electric wires non-insulated, machinery and machine products, electrical appliances and parts thereof, certain car brands and parts, pumps, air compressors, combined refrigerator-freezers, digital control panels, optic fibers, and water meters have increased from 5%, 10%, and 12% to a range between 7% and 20%, depending on the product.


KPMG observation

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 | dzuvich@kpmg.com

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