SAUDI ARABIA, CUSTOMS IN SUPPORT OF INTERNAL PRODUCTION

The objective of protecting the domestic economy from unfair practices carried out by competing markets has prompted Saudi Arabia to approve new customs rules, to regulate imports of goods from other member countries of the Gulf Cooperation Council (UAE, Bahrain, Oman, Qatar, Kuwait).

On July 3, the Chairman of the Board of the Department of Zakat, Tax and Customs Authority approved a new resolution which introduces new import procedures in Saudi Arabia:  with effect from the date of  publication,  all products, finished or semi-finished, leaving the free zones through the countries belonging to the Gulf Cooperation Council  will be subject to import formalities and, like all other foreign products, while goods containing components produced by companies owned, partially or totally, by Israeli companies cannot benefit from any tariff reduction. On the contrary, preferences, are granted to goods produced by those companies that respect the Saudi principles on the nationalization of the workforce, that is, local employees not less than 25% of the total and goods with at least 40% of value added. In the steel segment, the measure is expected to affect billets and rounds for reinforced concrete; already some cargoes from Oman have been cleared through customs at a rate of 20%, creating total confusion on the market, polluted, according to Saudi sources, by a downward pricing policy of Oman and the UAE.