Saudi Arabia’s Finance Minister, who also chairs the Zakat, Tax, and Customs Authority (ZATCA), issued Minister of Finance Resolution No. (1-88-1446) on 15 July 2024. The resolution, now in effect, amends customs duty rates on certain goods, aligning with the World Trade Organization (WTO) ceilings to which Saudi Arabia is committed.
These amendments primarily target the protection and encouragement of national industries and transactions involving local agricultural products. Notably, the customs duties on specific electrical products have been increased from 5% to 15%, as detailed below:
- HS Code 85352100: For voltages less than 72.5 kV.
- HS Code 85352900: For other self-propelled circuit breakers with voltages over 72.5 kV, as well as other electrical machinery and equipment.
- HS Code 85364900: For relays with voltages over 60V, as well as other electrical machinery and equipment.
This increase in duties is expected to have implications for importers of these goods into Saudi Arabia, potentially affecting market dynamics and trade flows. Domestic producers may benefit from the increased protection, gaining a stronger foothold in the local market.
