IMPORTANT BUSINESS REGULATIONS AND PROCEDURES

 PRELUDE

Saudi Arabia pursues a liberal trade policy with no quantitative or price restrictions for importers. However, there are a number of regulations and procedures governing business and trade in the Kingdom and adherence thereto could be very helpful for those intending to do business in Saudi Arabia.

 CUSTOMS DUTIES

According to Royal Decree No. M/13 dated 10/5/1408 H., corresponding to 12/30/1987, and to the Saudi Council of Ministers order No. 86 dated 10/5/1408 H. (12/19/87) the following customs duties' rates have been in effect since 13/5/1408 H. (corresponding to January 2, 1988):

• Most of the basic consumer products are duty free, e.g., sugar, rice, tea, unroasted coffee, cardamom, barley, corn, livestock and meat (fresh or frozen).
• Customs duties of 20% are imposed on some imported commodities for the purpose of protecting the national infant industries.
• Import duty on other items is 12% ad valorem on the c.i.f. (cost, insurance, and freight) value.
• A limited number of items are subject to customs duties calculated on the basis of metric weight or capacity, rather than ad valorem. However, the rates for these items are fairly low.
• Members of the Arab League who are signatories to the Agreement to Facilitate Trade and Exchange and to Organize Transit between the Arab League States are granted special concessions.
• Imports from the Arab states with which Saudi Arabia has bilateral trade agreements are entitled to further reductions of duty.

Royal Decree No. M/56 dated 19/10/1407 H., corresponding to June 15, 1987, has approved the international Brussels agreement of 14 June 1983 on the Harmonized Commodity Description and Coding System (HS). According to the Minister of Finance and national Economy Order No. 3/1805 dated 19/10/1410 H., corresponding to May 14, 1990, the Kingdom has been implementing the Harmonized System since 15/6/1411 H., corresponding to 1/1/1991. For details, contact Customs Department (see appendix I for address).

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