Riyadh: Saudi Arabia’s Zakat, Tax and Customs Authority has said that Saudi Arabia wants to expand its duty-free shops beyond airports to land and sea ports, ships and planes.
According to Arab News The authority said plans to update the Duty Free Shops rules would be in the state’s public consultation platform (Estella) by August 12, 2021. Earlier, duty free shops were restricted to departure halls at international airports.
The draft rules include repealing the requirement that store owners provide a 200,000 riyal bank guarantee, but they will need to have third party insurance policies for goods in warehouses and halls, such as to avoid fire hazards.
According to the draft rules, products manufactured in the country will get 20% subsidy. Sales of all products will be limited to the amount allowed for each passenger specified by the customs system.
It should be noted that Saudi Arabia has recently ratified the National Rules of Origin, which aims to promote local content. According to Arab News, this means that products not manufactured in GCC countries will be considered foreign goods in customs.
According to the Zakat, Tax and Customs Authority, the decision was approved after liaison between the Ministry of Industry and Mineral Resources, the Ministry of Commerce and the General Authority for Foreign Trade.
The rules also stipulate that industrial enterprises in the GCC must achieve a national workforce localization rate of less than 25% of the total staff in the facility.