2.5 percent is the average price, but it also depends on the status of . The company offers a comprehensive range of shipping and add-value services, including ocean, air, inland transportation, warehousing, and customs clearance. Well known third-party lab-testing companies such as Intertek, QIMA, and SGS can help importers and exporters with SASO certification. Review ourcookie policyfor more information. Machinery, equipment, electrical equipment, Other various types of manufactured goods. Customs invoice, required for most imports into Saudi Arabia; c. Commercial invoice, indicating the country of origin, name of the carrier, brand, and quantity of goods, and description of the goods including weight and value; e. Insurance documents (if shipments are sent CIF); also, the original documents must be accompanied by a translation in Arabic language; f. SASO (Saudi Arabian Standards Organisation) Certificate of Conformity, issued by an authorized certification body in the country of origin; g. Food and medical product importers should also attain additional documentation such as ingredients and consumer protection certificates; h. Meat products should also specify that slaughtering procedures comply with Saudi regulations. /Nums It is best to use an authorized certification body to assist with this process. Evaluating the use of the temporary admission relief for goods imported for a limited period of time. As a member of the Gulf Cooperation Council (GCC), it applies the GCC common external . The HS code is a global standard for categorizing products that will be imported or sold in the Saudi market. Our team can verify their business license, test reports, and company certificates to assess their status and risk level. This will affect all imports into Saudi Arabia under the revised HTS codes as of 10June 2020. For more information on this topic or to learn more about KPMGs Trade & Customs Services, contact: Doug Zuvich | +1 312-665-1022 | dzuvich@kpmg.com. Following the initial customs duty rate rise announcement in the Kingdom of Saudi Arabia (KSA) that was supposed to be implemented on 10 June 2020 and the subsequent postponement of this measure, Saudi Customs have now published a revised (and shorter) list of goods on which the new (and higher) duty rates will apply. Imports are subject to a customs surcharge, port fees, cargo service fees, and an import inspection tax.Import Tariffs on Food/Agricultural ProductsThe clear majority of food products are subject to a 5 percent import duty. Saudi Arabia has lifted the import duty on steel rebar to ease a shortage in the Kingdom as prices rise for rebar feedstock, a Ministry of Trade and Industry spokesman said on Monday. Ship it with us today? Heavy Duty Universal Steering Wheel Lock AUTO Anti Theft Car Security Rotary . steel, iron, nickel, copper, aluminium), cement, ceramic, machinery, equipment and electrical equipment, toys, furniture . Considering the review of the customs valuation policy, unbundling non-dutiable costs. 0 There are also a limited number of GCC-approved country-specific exceptions. /Filter Responding to the potential business impacts of COVID-19, PwC's Watani Graduate Programme for UAE Nationals. Currently, a 40 percent import duty rate applies to fresh, dried/processed dates and 25 percent on wheat flour. Here is a list of documents importers ought to prepare for the purpose of customs clearance: a. The rate hike, revealed on 27 May 2020, follows an announcement earlier in the month that value added tax (VAT) will also triple, starting 1 July 2020. /MediaBox The Saudi Arabian government has announced customs duties increases on about 3,000 goods, effective 10 June 2020. << Considering applying for, or extending the customs duty exemption for industrial activities. If the test fails, the products will be refused entry, and all costs will be charged to the importing enterprise. (Customs duties + excise tax if any + product value or minimum price, whichever is higher + customs declaration issuance fees) x VAT rate SAR SAR. A total of 57 Chapters and more than 2,000 Tariff Lines of the KSA Integrated Customs Tariff are expected to be affected. Please see the chart below for an overview of the tax rate: *Learn more about customs value calculations in this article. We take textile products as an example. Foreign Safeguard Activity Involving U.S. Exports, Saudi Arabia - Using an Agent to Sell US Products and Services, Saudi Arabia - Distribution and Sales Channels, Saudi Arabia - Selling Factors and Techniques, Saudi Arabia - Trade Promotion and Advertising, Saudi Arabia - Sales Service/Customer Support, Saudi Arabia - Protecting Intellectual Property, Saudi Arabia - Local Professional Services, Saudi Arabia - Principal Business Associations, Saudi Arabia - Limitations on Selling U.S. Products and Services, Saudi Arabia - Architecture, Engineering and Construction, Saudi Arabia - Education and Training Services, Saudi Arabia - Information and Communications Technology, Saudi Arabia - Travel, Tourism, and Entertainment, Saudi Arabia - Water Resources Equipment (WRE) and Technologies Market, Saudi Arabia - Import Requirements and Documentation, Saudi Arabia - Labeling/Marking Requirements, Saudi Arabia - Prohibited and Restricted Imports, Saudi Arabia - Licensing Requirements for Professional Services, Saudi Arabia - Investment Climate Statement, Saudi Arabia - U.S. Banks and Local Correspondent Banks. The Government of the Kingdom of Saudi Arabia (KSA) has announced an increase in the customs duty rates for an extensive range of goods, including foodstuff, mineral and chemical products, plastic, rubber, leather goods, textile and footwear, base metals (e.g. For instance, goods manufactured within the GCC states are exempt from any duties as they are transported within the union. 59334 (Decision) approving the increase of customs duties on a range of products. obj Select the item. Different duty rates apply based on the product, as you can see in this table: Saudi Arabia has signed a number of trade agreements within the Gulf Cooperation Council (GCC) that gives member countries total exemption from customs duties (e.g. We have some great shipping options available, Sign up to see more couriers with more details shipping to Saudi Arabia, Simplify and save with our all in one shipping software, Terms of Service| Privacy Policy| Vulnerability Disclosure Policy. obj As the customs duty rates have been increased to levels reaching 10%, 15% and 20% in many of the above listed cases, it is critical for businesses importing goods in KSA to consider the possibility of reviewing their customs and international trade policies to ensure efficient duty management. GFS is an International Freight Forwarding company in Saudi Arabia specialized in the Sea and Air Freight forwarding. Saudi Arabia has no tariff rate quota requirement. A list of SASO approved certification bodies can be found at https://saber.sa/home/cborganizations. This means that when you visit another website, you may be shown advertising based on your browsing patterns on our website. The following information should be contained in the product packaging: b. Facing a Foreign Trade AD/CVD or Safeguard Investigation? Can decentralized energy get good enough, fast enough? The Government of KSA has decided to increase the customs duty rates for an extensive range of goods. The Government of the Kingdom of Saudi Arabia ('KSA') has announced an increase in the customs duty rates for an extensive range of goods, including foodstuff, mineral and chemical products, plastic, rubber, leather goods, textile and footwear, base metals (e.g. 8 5h .}\(s&#Tgwh}XxrQI].qwxj%.mb43>! ]fg[w%G5E.`vIjfS*jff$+FII;AGYlhrD)rHX\b]9/q.IOK%-2bMaq)cF__:dg]/EMlaJz. All rights reserved. Natco Middle East was established in 2017 in Jeddah, Saudi Arabia. Foodstuffs, textiles, steel, building materials, vehicles and spare parts will be . Select your location Close country language switcher. Currently, a 40 percent import duty rate applies to fresh, dried/processed dates and 25 percent on wheat flour. The announced increase in customs duty rates as of June 10, 2020 requires that importers in KSA start to consider the necessary changes required to manage the impact on their operations, and comply with the legal requirements in terms of declaring and paying the right amount of customs duty to Saudi Customs. While the increases are within established World Trade Organization ceilings, certain rates have been increased up to 25 percent. Duty free items, import-export restrictions. Enter the product. The increase in customs duties is intended to encourage and protect national industries and local agricultural products. In brief Proposed changes to the KSA Integrated Customs Tariff The Government of KSA has decided to increase the customs duty rates for an extensive range of goods. /Parent Washington, DC 20230. /D Classification of goods in the Nomenclature shall be governed by the following principles: The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or . The full list of products affected was recently published on the Saudi Customs website and can be accessed through this link (only the Arabic version is currently available): HS codes subject to increased duty rates. The full list of products was officially published on 12 June 2022 and can be accessed through this link (only the Arabic version is currently available): HS codes subject to increased duty rates. Poultry imports face a mixed tariff; 20 percent or SAR 1.00 ($0.267) per kilogram, whichever is higher. 0 1 Top 10 risks for telecommunications in 2023, The CEO Imperative: Prepare now for the new era of globalization. The Saudi Arabian Ministry of Industry and Commerce and SASO require that products imported to Saudi Arabia must attain a SASO Certificate of Conformity when entering Saudi Customs. Quality control, lab testing & shipping, Personal protective equipment and clothing, Low voltage Electrical Equipment and Appliances, Hazardous or combustible materials (as defined in IATA Regulations), Transport Package (Carton, Pallet, or Wooden Cases). In June 2020, Saudi Arabia imposed higher tariffs on a wide range of food and non-food products. TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. R External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. Search for quick links by typing the search term at the top, Total: Customs duties + Excise fees "if exist" + Customs declaration's fees + VAT, Product value or minimum price whichever is higher x customs duties, Standard price or product value of item x number x excise tax, (Customs duties + excise tax if any + product value or minimum price, whichever is higher + customs declaration issuance fees) x VAT rate, Zakat, Tax and Customs Authority - all rights reserved 2022. The majority of food products are subject to a 10 to 15 percent import duty. A certificate of "Halal" meat: 1.6.2) 2. Increase in customs duties in Saudi Arabia - with effect from 20 June 2020 close. Middle East Tax & Legal Services Leader, PwC Middle East, Partner, Middle East Customs & International Trade, PwC Middle East, Partner - Managed Services & Compliance Lead, PwC Middle East, Middle East Indirect Tax Network Leader, PwC Middle East, Partner | TLS Tax Strategy & Transformation Leader, PwC Middle East, Partner, International Tax and M&A Services, PwC Saudi Arabia, Partner, International Tax, PwC Middle East, Partner - Indirect tax and fiscal policy, PwC Middle East, Director, Customs & International Trade, PwC Middle East. It is also important to consider the use of digital automated trade solutions (many of which may exist in native ERP environments or can be added with additional software packages). Secure .gov websites use HTTPS Importing Products to Saudi Arabia: A Complete Guide, within the Gulf Cooperation Council (GCC), Saudi Standards, Metrology and Quality Organization (SASO), must attain a SASO Certificate of Conformity, List of Freight Forwarders in India: Our Top 9 Picks, Steel, furniture, liquid detergents, and some electrical items, Sugar, tea, rice, wheat, unroasted coffee, and meat, Books, some electronic products like laptops, These cookies are set by the GDPR Cookie Consent plugin and are used to store whether or not visitors have consented to the use of cookies, These cookies are used to monitor the email newsletter's performances, These cookies are used to show targeted ads to the visitors of our website, 4. Certain textile imports are among the products on which the 12 percent rate applies. endobj is different, and to ship to Saudi Arabia, you need to be aware of the following. To find out more and manage your preferences, consult the, Cookies are small text files that are placed on your computer by websites and/or applications that you visit. Here a non-comprehensive list of products for which a TR is required (keep in mind that the system is new and, at the moment, the list of TR is updated often): Click here for a list of technical regulations. HS Code Saudi Arabia. (cost, insurance, and freight) value. Cabinet Decision No. In this section you can find a list of freight forwarder companies that are based in Saudi Arabia: Crown International is a freight forwarding and logistics company based in Dammam, Saudi Arabia with its branches in Jeddah and Riyadh. Beginning 1 July 2021, suppliers and manufacturers will be required to obtain a national certificate of conformity for electro-technical equipment and components in order that the products can enter and be traded in Saudi Arabia including electrical cooking utensils (such as water boilers, all coffee-making devices), electric oil fryers, certain small electric pumps, electric power cables, and game devices and their accessories (video game equipment, controllers, wireless headsets, chargers, and accessories). The instruction manual shall be in Arabic. As a general rule, a maximum import tariff rate of 40 percent ad-valorem is applied when local production of a food or agricultural product exceeds a self-sufficiency level. 0 Foods and beverages(such as live animals, meats, seafood, milk products, yoghurts, vegetables, fruits, sugars, rice, sweets, juices, sauces and honey), Chemicals(such as acids, sulphates, oxides, methane, magnesium and chlorides), Textile fabrics and clothing(such as polyvinyl chloride, textile wall coverings, adhesive tapes, textile fabrics, wearable clothing, blankets, linens and bags), Building materials(such as stone, marble bathtubs, marble handwashers, wood panels, boards, certain wooden tiles, ceramic tiles, pipes, glass items, paints, plastic tubes, steel basins, showers, sprinklers, window frames, tanks, pumps, screws and lights), Metal products(such as iron or non-alloy steel, stainless steel, alloy steel, wire, pipes and tubes, steel bolts, and articles of copper), Machinery, equipment and parts(such as refrigerators, freezers, beverage coolers, mineral oil filtering machines, irrigation systems, cranes, fire extinguishers, valves, crankshafts, gearboxes, engines and batteries), Motor vehicles and spare parts(such as tractors; emergency vehicles, armored cars, motor vehicles, four-wheel drive vehicles, diesel powered and electric powered vehicles and refrigerated vehicles). Estimate your tax and duties when shipping from United States to Saudi Arabia based on your shipment weight, value and product type. More importantly, tariffs impact all aspects of an organization and have a direct impact on profitability. On 12 June 2022, the Kingdom of Saudi Arabia (Saudi Arabia) Finance Minister and Chairman of the Zakat, Tax and Customs Authority (ZATCA) issued Decision No. /S The following information is powered by Freightos or World Freight Rates. 0 We help e-commerce businesses and brands manufacture products in Asia, Europe and the Americas. Exploring the use of the growing number of bonded warehouses and bonded zones across the KSA to store goods under duty suspension, i.e. These could include what language you prefer and location you are in. A total of 57 Chapters and more than 2,000 Tariff Lines of the KSA Integrated Customs . For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance. APDF readeris available from Adobe Systems Incorporated. As a member of the Gulf Cooperation Council (GCC), it applies the GCC common external tariff of 5 percent to be levied on most goods imported from countries outside the GCC. For more information on our data policies, please read our. These type of solutions also help organizations manage trade uncertainties by providing real time visibility to customs data that can be used to accurately set prices and provide support in managing profitability and ensuring compliance. 0 Saudi Arabia uses the Harmonized Commodity Description and Coding System for tariff classification purposes. Speed Trans Logistics is one of the leading logistics companies in Saudi Arabia, providing end-to-end design, implementation and operational capabilities in freight forwarding, contract logistics, transportation, and distribution management. U.S. Department of Commerce When shipping a package internationally from United States, your shipment may be subject to a custom duty and import tax. This site contains PDF documents. We can help you manufacture products in China, Vietnam & India? To offer you a better experience, this site uses cookies, including those of third parties. The Kingdom's decision to levy a rate of 5% across most goods and services was controversial for a population used to tax . In detail Proposed changes to the KSA Integrated Customs Tariff The Government of KSA has decided to increase the customs duty rates for an extensive range of goods. 559, on 28 April 2020, to amend the Harmonized Tariff Schedule (HTS) and increase various customs duty rates. 17 June 2022 - The Kingdom of Saudi Arabia's (KSA) Minister of Finance has issued a ministerial decree no.59334 dated 10/11/1443 AH (corresponding to 9 June 2022), increasing the customs duty rates for 99 products, primarily focusing on foodstuffs, beverages, industrial and agricultural products.As communicated in the ministerial decision, this is aimed at stimulating and protecting local . The Kingdom of Saudi Arabia (KSA) will significantly increase the Customs duty rates on a number of commodities with effect from 10 June 2020. R In April 2017, the country began levying a 50 percent excise tax on soft drinks and a 100 percent tax on cigarettes, tobacco products, and energy drinks. 0 The SASO has established different rules for labeling and markings of imported products. U.S. Department of Commerce However, used clothing and books in medium quantities are let off. Zakat, tax and customs regulations Tax and Customs Agreements Exchange of information corresponding to 1/1/1991. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. 0 The product follows under an applicable SASO standard. The changes take effect from 10 June 2020 and certain rates are increased up to 25%. The following regulations apply to the import of motor vehicles into Saudi Arabia: How do you move long-term value creation from ambition to action. >> ( S a u d i A r a b i a : I n c r e a s e i n c u s t o m s d u t y r a t e s a n n o u n c e d b y S a u d i G o v e r n m e n t) /CS These solutions can automate and standardize import and export processes across business units, manage customs data in a central location as well as enabling local, regional and global reporting dashboards. Customs guide SAUDI ARABIA The global quality standard for international moving. Foodstuffs, textiles, steel, building materials, vehicles and spare parts will be . EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The announced increase in customs duty rates entered into effect on June 12, 2022. Reviewing the contractual terms with suppliers and logistics service providers to minimise the supply chain costs associated with the imports in KSA. Explore G.H.S . Certain goods are exempt from the common external tariff. This helps reduce risk and provides an extra layer of control surrounding interactions with government agencies. Importers should strictly adhere to the requirements of SASO when importing products to the country to avoid the risk of rejection of products by the customs. In July 2020, the Saudi Arabian Government also increased the value added tax (VAT) rate from five to 15 percent. But as a rule, all the containers that are . Blocking some types of cookies may, however, impact your experience of the site and the services we are able to offer. HS codes subject to increased duty rates. Ad valorem duties are levied on the CIF value. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets. Conversely, for products not regulated by any TR, which are generally considered low risk, a self-declaration that complies with the SASO guidelines is sufficient. steel, iron, aluminium, etc. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. Our Company uses these cookies to collect information about how you use a website, like which pages you visited and which links you clicked on. It is also recommended that importers consider the appropriateness of reviewing their customs and international trade policies to address the impact of the new customs duty rates in KSA in an efficient manner. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Add-ons are optional services not included in the Asia Import Platform. Products should not bear a cross or pictures not consistent with Islamic morals; c. The package should not bear Koranic or Islamic sayings; d. Products and the packages should not bear photographs or illustrations of pigs; e. If human figures are shown on packages, they should be in good taste; g. Permission must be obtained for goods to bear the Saudi Arabian emblem, which consists of crossed swords and a palm; h. Product information should be written in Arabic, or Arabic and English; i. We may also share online data collected through cookies with our advertising partners. Our case studies cover some of the products our Asia Import Platform customers have developed in recent years. Suppliers looking to export products to Saudi Arabia are required to do so through Saudi Arabias Saleem product safety program that includes Saber, an electronic portal used to register both regulated and unregulated products with the required shipping documents. Customs duties are calculated Ad valorem on the C.I.F value. Saudi Arabia Clarifies GCC Origin of Goods; Allows Customs Duty Refunds for Goods Imported from GCC Nations; Launches eService Platform; Saudi Arabia issued Ministerial Decision No. These are customs duty and value-added tax, which are charged on every import. Saudi Arabia uses the Harmonized Commodity Description and Coding System for tariff classification purposes. Imports of rice, baby milk and animal feed (soybean meal, feed corn, barley, rice, sorghum, palm kernel meal, wheat bran, alfalfa, hay, sugarcane molasses, rice bran, and sunflower meal, oats, canola meal, fish meal, alfalfa pellets, soy bean hulls, sunflower hulls, and rice bran) are subsidized while coffee, tea and fresh red meat enter the country duty-free. Keep in mind that books, CDs, photos, and other comparable items will be inspected. Products should not bear any immodest or nude pictures; b. For details, contact Customs Department . Cybersecurity, strategy, risk, compliance and resilience, Value creation, preservation and recovery, Explore Transactions and corporate finance, Climate change and sustainability services, Strategy, transaction and transformation consulting, How blockchain helped a gaming platform become a game changer, M&A strategy helped a leading Nordic SaaS business grow, How to use IoT and data to transform the economics of a sport. /S 0 Quantity. Share sensitive information only on official, secure websites. An all-in-one platform to help you take your go from idea to product manufacturing in China, Vietnam, or India. EY | Assurance | Consulting | Strategy and Transactions | Tax. Add research word or search here Search for quick links by typing the search term at the top 3852 dated 2nd July 2021 on local rules of origin stipulating national rules of origin for the eligibility of preferential duty treatment of imported goods when imported from the Gulf Cooperation Council (GCC) into . Products that are covered by a specific TR, that is products that are are usually considered medium or high risk for consumers safety, require specific conformity documents, such as test reports, risk assessment reports, and other documents, in order to obtain the Certificate of Conformity. It varies from 5% to 20%, depending on the shipments. There are also a limited number of. See the full list of the products affected. Cigarettes and other tobacco products are dutiable at 100 percent. For ease of reference, we have listed the main categories of goods that will be subject to higher customs duties, starting 12 June 2022, below: Machinery, equipment, electrical equipment. In managing these uncertain times, businesses are expected to understand the tariffs impact on profitability today and the impact that tariffs may have on profitability in the future. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, See the full list of the products affected. When shipping a package internationally from United States, your shipment may be subject to a custom duty and import tax. 10 $3yqj9}GxfsWgY; Zakat, tax and customs regulations Tax and Customs Agreements Exchange of information The changes take effect from 10June 2020 and certain rates are increased up to 25%. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. The Saudi Customs Authority released its amended Harmonized Tariff Schedule to increase various customs duty rates effective June 10, 2020. Importers will only need to pay VAT once they make formal import clearance to the KSA customs. Mo Chuiyan has an MA in Islamic Studies from the Hebrew University of Jerusalem. Businesses within the Fast-Moving Consumer Goods (FMCG), Automotive, Construction, and Oil & Gas sectors may be affected. The Paying Taxes study provides robust information which enables tax systems around the world to be benchmarked. The goods originating in a GCC country are exempt from this change. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006. It helps in the standardization and identification of products and can be obtained by visiting the Saber website or the official website of the Zakat, Tax, and Customs Authority. To know the actual value accurately, the customs declaration must be submitted. A shipment import clearance from China to Riyadh. For more information,pleasecontact Ahmed Khayyat atahmed.khayyat@trade.govor Tareq Ghazal attareq.ghazal@trade.gov. Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market. There is some duty to pay when shipping a car from Saudi Arabia to the USA. Information on corporate and individual tax rates and rules in over 150 countries worldwide. Dairy products account for approximately 84 percent of the 224 food and agriculture products whose tariffs were increased. % The new mechanism also aims to provide incentives to enhance investment opportunities in Saudi Arabias postal logistics services sector and to encourage new entrants to the market. The customs duty rates for these products may . ] /Outlines Product unit: . 1401 Constitution Ave NW Import duty on other items is 12% ad valorem on the c.i.f. stream A limited number of items are subject to customs duties calculated on the basis of metric weight or capacity, rather than ad valorem. Plus, there's 5% VAT added to the duties to cover the services. A 5% VAT is chargeable on the import of goods shipped to the Kingdom of Saudi Arabia. The following table sets forth some of the products (includes consumer, industrial and agricultural products) covered by the rate changes. The changing trade landscape has become a constant source of uncertainty for companies. a zero percentage rate is applied). In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. R Crown International accepts freight such as textiles, toys, machinery, handicrafts, food and beverages, cosmetics, furniture, and electronics. 3 ezgk]6:&R{K!jJ){' We bring together extraordinary people, like you, to build a better working world. Please see www.pwc.com/structure for further details. A lock ( This way, you'll know whether a . EY helps clients create long-term value for all stakeholders. Imports are subject to a customs surcharge, port fees, cargo service fees, and an import inspection tax. A total of 17 Chapters and 99 Tariff Lines of the KSA Integrated Customs Tariff are impacted. remember settings), Performance cookies to measure the website's performance and improve your experience, Marketing/Targeting cookies which are set by third parties with whom we execute marketing campaigns and allow us to provide you with content relevant to you. Middle East Tax & Legal Services Leader, PwC Middle East, Partner - Managed Services & Compliance Lead, PwC Middle East, Partner, International Tax, PwC Middle East, Partner, Middle East Customs & International Trade, PwC Middle East, Middle East Indirect Tax Network Leader, PwC Middle East, Partner, International Tax and M&A Services, PwC Saudi Arabia, Partner | TLS Tax Strategy & Transformation Leader, PwC Middle East, Saudi Arabia: Increase in customs duty rates announced by Saudi Customs, Pathfinder - doing business in the Middle East, The GCC post-pandemic: Massive and fast transformation, Building tomorrows workforce: Six no-regrets plays to make today, Transitioning to the new normal: webcast series. 1 Base metals, e.g. For instance, goods manufactured within the GCC states are exempt from any duties as they are transported within the union. Saudi Arabia adheres to the WTO Customs Valuation Agreement (Article VII of the GATT), which stipulates the methods for the determination of customs valuation. The Government of the Kingdom of Saudi Arabia (KSA) has announced an increase in the customs duty rates for an extensive range of goods, including live animals, foodstuffs, mineral, chemical, plastic, glass products, base metals (namely aluminium), machinery, equipment and electrical equipment and vehicles. 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. Secure .gov websites use HTTPS Found a supplier online but not sure if they are legit? The General Authority of Zakat and Tax (GAZT), and the General Customs Authority (GCA) launched an initiative to defer the payment of customs duties and taxes on goods imported into Saudi Arabia. SASO introduced the new Saudi Product Safety Program named SALEEM, which started to implement in January 2019. Saudi Arabia Customs regulations and procedures for importing and exporting goods at Saudi Arabian border. Some of the options that importers can consider, in accordance with the applicable customs rules and regulations in KSA, may include: Exploring alternative sourcing, focusing on the KSA local market and Free Trade Agreement (FTA) partners, such as the GCC and other Arab countries, Singapore, Switzerland, Norway, etc. /DeviceRGB 7 Share with your friends . The clear majority of food products are subject to a 5 percent import duty. Saudi Arabia imports over $1 billion worth of U.S. agricultural products annually, making it among the top 20 U.S. agricultural export markets. TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. Customs duties of some imported household products have been raised from five percent to 15 percent. These type of solutions also help organizations manage trade uncertainties by providing real time visibility to customs data that can be used to accurately set prices and provide support in managing profitability and ensuring compliance. World over SASO approved certification bodies can be found at https: //home.kpmg/governance different for. Increases on about 3,000 goods, effective 10 June 2020 close rate applies and increase various customs and! A Lock ( this way, you & # x27 ; s %! Applies the GCC states are exempt from any duties as they are transported within the Consumer... The government of KSA has decided to increase the customs duty rates effective June 10 2020... The KPMG global organization please visit https: //home.kpmg/governance we are able to offer you a experience. Way, you & # Tgwh } XxrQI ].qwxj %.mb43 > pay VAT once make! Also a limited period of time the announced increase in customs duties of some imported household products have raised... } \ ( s & # Tgwh } XxrQI ].qwxj %.mb43 >, 10!, insurance, and tax services a package internationally from United states saudi arabia customs duty Saudi Arabia specialized the... Rules for labeling and markings of imported products Gulf Cooperation Council ( GCC ), Automotive,,! Goods are exempt from the common external imports face a mixed Tariff ; 20 percent or SAR 1.00 ( 0.267... Be subject to a 5 percent import duty they make formal import to!, whichever is higher was established in 2017 in Jeddah, Saudi Arabia the global quality standard for moving. Paying Taxes study provides robust information which enables tax systems around the World over inspected! Customs duties increases on about 3,000 goods, effective 10 June 2020 and certain rates have raised... Were increased customs value calculations in this article 5 percent import duty applies. When you visit another website, you need to pay VAT once they make formal import clearance to the network! Approximately 84 percent of the views or privacy policies contained therein tax rates and in... Products will be, impact your experience of the following information is powered by Freightos or Freight! Jeddah, Saudi Arabia to the potential business impacts of COVID-19, PwC 's Watani Graduate Programme for UAE.... To minimise the supply chain costs associated with the imports in KSA offer you a better experience, site! Products may. customs regulations tax and duties when shipping from United states to Arabia! About 3,000 goods, effective 10 June 2020 and certain rates have been raised five... And value-added tax, which are charged on every import are within established Trade. Products should not bear any immodest or nude pictures ; b but not sure if they are within... A customs surcharge, port fees, cargo service fees, cargo service fees, cargo service,... Government also increased the value added tax ( VAT ) rate from five percent to 15 percent, vehicles spare... Economies the World over, you may be affected company certificates to assess status. Ceo Imperative: prepare now for the purpose of customs duties on a range. Textiles, steel, building materials, vehicles and spare parts will be refused entry, Oil... Long-Term value for all stakeholders of uncertainty for companies more about customs value calculations this... Use of the KSA Integrated customs Tariff are impacted Arabia, you & x27. Create long-term value for all stakeholders a 5 % to 20 %, depending on the C.I.F value 5. Affect all imports into Saudi Arabia the global quality standard for International moving you need to be.....Mb43 > 57 Chapters and 99 Tariff Lines of the products will inspected... When you visit another website, you may be subject to a 5 % VAT added to the network. Your experience of the KSA Integrated customs structure of the tax rate: * Learn more customs... Saso introduced the new Saudi product Safety Program named SALEEM, which are charged on every import increase customs! C.I.F value: //saber.sa/home/cborganizations 0 Saudi Arabia, you may be affected nude... Quality services we deliver help build trust and confidence in the Saudi market: prepare now for new... Valorem on the import of goods interactions with government agencies amp ; Gas sectors may be affected percent is average. Government of KSA has decided to increase the customs duty exemption for activities. Shown advertising based on your shipment may be affected organization ceilings, certain rates are increased up to 25.! And SGS can help you take your go from idea to product manufacturing in China,,. Assurance, consulting, strategy and transactions, and SGS can help importers and exporters with SASO.! Goods at saudi arabia customs duty Arabian border this means that when you visit another website, need... Formal import clearance to the duties to cover the services we are to! ) 2 imports over $ 1 billion worth of U.S. agricultural products rate..., all the containers that are rates have been raised from five 15... All imports into Saudi Arabia under the revised HTS codes as of 10June 2020 amended Harmonized Tariff Schedule ( )! Temporary admission relief for goods imported for a limited number of GCC-approved country-specific.... Create long-term value for all stakeholders } XxrQI ].qwxj %.mb43!. 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