RIYADH: Saudi Arabia recently decided to raise the customs duty rates applied to 193 products from 5 percent up to 25 percent, PricewaterhouseCoopers (PwC) said in a report.
The increase in customs would cover poultry, meat and dairy products, fertilizers, chemicals, electrical appliances, cables, building materials, in addition to certain consumer products.
“Based on our informal discussions with Saudi Customs and our understanding of the current practice at the borders, the new customs duty rates are already being enforced, and importers are requested to pay the increased customs duty to clear the goods into KSA,” PwC said. The new customs duty rates have already been imposed and importers are being asked to pay accordingly to clear their goods into the kingdom, PWC said, citing sources at the Saudi Customs.
This report said the new measures would not only impact immediate shipments –some of which are already at the border but also, all future imports.
“Contracting companies are expected to be particularly affected if the contract with the client (whether a government or private entity) stipulates that the customs duties applicable on all materials and equipment required to deliver the project, shall be embedded in the final price agreed,” PwC said.
The Saudi government has lifted its previous subsidies on a wide range of products as part of the kingdom’s efforts to increase non-oil revenue and reach fiscal balance by 2020.
