ablcc_newsletter-4th-edition-2021_A5_04
34 SAUDI ARABIA: Newnational rules of origin ZATKA, the tax authority of the Kingdom of Saudi Arabia, issued the Ministerial Decision No.3852 introducing the new national rules of origin and determines the conditions to be fulfilled for importation of goods into the Kingdom. For the products to be considered in the preferential GCC customs tariff (i.e. zero percent custom duty), here are the main criteria’s: • The goods must have a valid certificate of origin. • The goods should arrive to Saudi Arabia directly from their GCC manufacturing country of origin. • The manufacturing establishment producing the goods must have at least 40% local added value • The manufacturing establishments should have a minimum nationalization workforce rate of 25% These rules are quite flexible regarding the local added value and localization rates. Indeed, they can complement each other to the extent that the local added value is at least 20% and the localization rate is at least 10%. Finally, goods will not be considered as having GCC origin if they leave from Free Zones. Nonetheless, exceptions are made on this point meaning they can leave if: • The transit was unavoidable due to geographical reasons • They remain under Customs control • The only processes undergone by the goods are shipping, handling and preservation of goods’ integrity. They will also not be considered if they are produced in Israel or by an establishment which is owned wholly or partly by an Israeli entity. Sources: https://home.kpmg/sa/en/home/insights/2021/07/saudi-arabia-introduces-new-national-rules-of- origin.html
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