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June 1, 2020
Saudi Arabia increases customs duty rates on imports
Saudi Arabia enacted Cabinet Decision No. 559, on 28 April 2020, to amend the Harmonized Tariff Schedule (HTS) and increase various customs duty rates. The changes take effect from 10 June 2020 and certain rates are increased up to 25%. Businesses should review the changes in the HTS to determine whether their products are affected and how the changes may impact their supply chain and operations.
The following table sets forth some of the products (includes consumer, industrial and agricultural products) covered by the rate changes.
Cabinet Decision No. 559 has made significant changes to the HTS and duty rates. This will affect all imports into Saudi Arabia under the revised HTS codes as of 10 June 2020.
Businesses should assess the impact of the above revisions on their imported goods and ensure these goods are imported with the appropriate tariff classification. Additionally, businesses need to understand the practical implications regarding the movement of goods between Gulf Cooperation Council countries with differing duty rates, and how these changes might affect their supply chain in the future.
For additional information with respect to this Alert, please contact the following:
Ernst & Young and Co (Certified Public Accountants), Riyadh
Ernst & Young Middle East (Dubai Branch)
Ernst & Young LLP (United States), Middle East Tax Desk, New York