The law allows foreign goods marked with country of origin to be sold and bought in duty-free markets without paying customs duty.
First Published Jan 16, 2023, 12:03 PM IST
RIYADH: Saudi Finance Minister Mohammad Al Jadyan has approved the laws related to the establishment of duty free markets at the entry gates of Saudi Arabia including airports and seaports. The official gazette ‘Ummul Qura’ on Friday published details of legal provisions for setting up duty free markets at hubs of arrival and departure by land, air and sea passengers and guidelines for their operation.
The law allows foreign goods marked with country of origin to be sold and bought in duty-free markets without paying customs duty. It is also permitted to store all kinds of goods in the duty-free markets and their warehouses, except those that violate commercial and industrial laws and regulations related to the protection of literary and artistic property rights. The stipulation is that such goods must be produced in a country not subject to economic sanctions and not banned in Saudi Arabia.
Duty free market operators are required to implement an annual action plan with the objective of supporting the sale of indigenous products. The Zakat, Taxation and Customs Authority will review this in the middle of each year. Duty free shops are open around the clock.
In order to operate such tax-free entities, they must complete the procedures and obtain a license from the Zakat, Customs and Tax Authority. A valid social insurance certificate and commercial register containing the working outline of the market should be submitted along with the application for the same. The rules will come into force after 30 days from the date of publication in the Gazette.
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Last Updated Jan 16, 2023, 12:03 PM IST
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