The U.S. Department of Agriculture Foreign Agricultural Service issued a report June 22 on a series of Saudi tariff increases on agricultural goods. The measures, which took effect June 20, raised duties on livestock, seafood, vegetables, fruit, potato products, dried yeast and more. USDA said the category most impacted is dairy products, which accounted for more than 80% of the 224 food and agricultural products subject to increased tariffs. The report contains a list of all the impacted products with their new tariff rates. The list does not include many items that were on a now-rescinded list of increased tariffs that were scheduled to take effect June 10, the USDA said (see 2006020028).
Morocco recently announced plans to establish a free-trade zone on its northeastern coast to try to reduce illegal imports, the Hong Kong Trade Development Council said June 24. The FTZ, which will be located in the town of Fnideq, near Ceuta, will include several customs warehouses dedicated to “high-demand goods” such as textiles and food products, the report said. The area will benefit goods imported through Morocco’s Tanger Med port and is expected to be completed within a year. The report said food and textiles are among “the most commonly smuggled commodities through Ceuta,” a Spanish autonomous city on the north African coast, near the Morocco border.
Nigeria issued a June 24 guidance to clarify which goods are exempt from value-added taxes, KPMG said in a June 25 post. The country also listed the following as not exempt: natural gas, “essential” raw materials for producing pharmaceuticals, renewable energy equipment, and raw materials for producing baby diapers and sanitary towels, the post said. Those goods are, however, subject to a 7% VAT rate.
Turkey plans to ban production and imports of 16 active substances found in plant protection products, the U.S. Department of Agriculture Foreign Agricultural Service said in a June 19 report. The import ban, which will take effect for each of the substances over a “transitional period” from June 30 through Dec. 31, will impact difenacoum, fenamidone, triadimenol, chlorothalonil and other substances because of their harmful effects on humans and the environment, the report said. The move is aimed at harmonizing Turkish regulations with European Union rules.
Importers of certain consumer goods in Kenya will be banned from using bonded warehouses to delay duty payments starting Aug. 12, according to a June 17 report from the Hong Kong Trade Development Council. Those importers will instead be required to pay customs duties when the goods arrive, the report said. The measure, which is expected to hit smaller businesses the hardest, will impact imports of alcohol, used motor vehicles, textiles, office supplies, “foodstuffs of any form,” a range of bulk commodities, cigarettes, spare parts, electrical parts, cameras, phones, used footwear and more. It is not yet clear what will happen to commodities currently stored in warehouses, the report said.
The United Nations Security Council extended for one year a measure to allow member states to inspect certain vessels for violating the UNSC's arms embargo on Libya, according to a June 5 news release. The measure allows states to inspect “vessels on the high seas bound to or from Libya, given reasonable grounds to believe” the ships are violating the arms embargo.
Abu Dhabi’s customs authority recently introduced a series of measures to help importers during the COVID-19 pandemic, a June 8 Hong Kong Trade Development Council report said. The incentive package allows importers to defer customs duties for 90 days from the date of their customs statement, and provides “pre‑clearance services” for imports through the agency’s “customs online operations system,” which is expected to save importers time and money. The agency will also offer “self-clearance services,” allowing companies to clear cargo “without the need for intermediary customs brokers.” Certain firms may also issue a customs warehouse license without paying license fees, and deposit and withdraw goods from warehouses without paying service fees, the report said.
Dubai Customs recently announced the extension of a 20% refund on customs fees for imports sold in Dubai markets from March 15 through June 30, according to a June 2 report from the Hong Kong Trade Development Council. The customs authority also eliminated the requirement for a bank or cash guarantee for customs clearance processing, the report said. The measures are part of a “wide-ranging” stimulus package to mitigate the impacts of the COVID-19 pandemic, the report said.
Saudi Arabia’s customs authority announced a range of increased customs rates covering agricultural goods, consumer products, chemicals, vehicles and more, according to a June 1 KPMG post. The rates will increase by anywhere from 0.5% to 15% beginning June 10. Impacted agricultural products include poultry, meat products, seafood, dairy, vegetables and olive oil. The increased duties will also impact a range of chemicals -- including carbon and silicon -- building materials and emergency vehicles. The change represents an “unexpected increase” in costs for Saudi importers and other supply chain actors, KPMG said. Some importers may be able to mitigate the portions of the increased duties by reviewing tariff codes and making use of available customs exemptions and reductions, the post said. Saudi Arabia's announcement comes one month after the country said it plans to triple its value-added tax rate (see 2005110024).
The Saudi Ports Authority recently announced a new shipping route to East Asia that will connect a number of major East Asian ports, according to a June 1 report from the Hong Kong Trade Development Council. The route, announced in May, will stop in Shanghai, the United Arab Emirates, Hong Kong, South Korea and Malaysia, among others. The route will be operated out of Saudi Arabia’s Jubail Commercial Port, the report said. The shipping line will open “direct lines for shipping and exporting national products” while “accelerating direct import and export operations from East Asian countries and increasing trade exchange,” Saudi’s Ports Authority said in a statement, according to HKTDC.