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.

Nigeria issued a clarification related to its recently announced value-added tax exemption for food items, according to a May 22 KPMG post. For VAT purposes, Nigeria's definition of “basic food items” does not include items sold at restaurants, hotels, “eateries, lounges and other similar premises,” KPMG said. In addition, basic food items sold by “contractors, caterers and other similar vendors” do not qualify for the exemption.

KPMG posted a series of questions and answers regarding Saudi Arabia’s recent spike in value-added taxes (see 2005110024). In a May 18 post, KPMG said it expects the Saudi government to issue industry guidance on the change before it takes effect July 1. The firm also provided guidance on how the rate may apply to goods and services received before the effective date but invoiced after, how the changes will impact contracts, a potential grace period and more.

The 16 member countries of the Southern African Development Community announced they will soon introduce an electronic certificate of origin system, according to a May 19 report from the Hong Kong Trade Development Council. The system will first feature a test rollout this month in six member states: Botswana, Eswatini, Malawi, Namibia, Tanzania and Zambia. After the test, the system will be in use across all member nations, which includes nearly all African countries south of the equator, the HKTDC said. The system is expected to save exporters time and money by no longer requiring hard copy submissions.

Kenya, Rwanda and Uganda announced increased restrictions on cargo movement due to a rise in coronavirus cases attributed to truck drivers, according to a May 18 report from the Hong Kong Trade Development Council. Truck drivers in Kenya must now undergo virus screening at border points and “fumigate” their trucks at international borders, the report said. Kenya is also “strongly” urging traders to conduct all customs-related actions online. Rwanda announced a “driver relay” system in which cargo transportation companies must employ two drivers per truck: one who will drive the truck from the departure point to the border and another who will drive to the final destination after undergoing health checks. Uganda introduced a similar relay system and is also prohibiting truck drivers from “stopping at any point of their journey in order to reduce their interaction with the public,” except for three designated stops per route.

Morocco extended its suspension of customs duties on wheat imports through December 2020, according to a U.S. Department of Agriculture Foreign Agricultural Service report released May 13. The measure, which applies to all wheat classes and products except durum, is intended to maintain the “competitive” price level of wheat imports and build the country’s stocks, the report said. USDA called Morocco’s decision to lift wheat duties through the summer “unprecedented,” adding that the country typically raised tariffs during summer months to ensure “strong prices for local wheat producers. The change is based on Morocco’s upcoming yield, which is expected to drop at least 50% below the country’s 10-year production average, the report said.

Saudi Arabia’s decision to triple is value-added tax rate could lead to a spike in consumer spending before the new rate takes effect July 1, according to a May 11 KPMG post. This could lead to a rise in sales in Saudi Arabia's automotive, retail and electrical markets, the post said. While companies in these markets might see a short-term increase in sales, businesses will likely need to take measures to remain competitive in the Saudi market after the new rate takes effect, including potentially absorbing part or all of the VAT increase so “goods and services are affected as little as possible,” KPMG said. Companies should also review VAT clauses in their contracts. Despite Saudi Arabia’s VAT increase, the United Arab Emirates has no plans to raise its VAT rate, according to a separate KPMG alert.