All foreign goods are not subject to taxes and customs duties

Saudi Arabia: The Saudi Council of Ministers decided, in its session held last Tuesday, headed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, at the Al-Salam Palace in Jeddah, to approve the establishment of free markets - as needed - at air, sea and land ports, and to allow sales in them for travellers coming to and departing from the Kingdom.

Saudi Arabia: The Saudi Council of Ministers decided, in its session held last Tuesday, headed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, at the Al-Salam Palace in Jeddah, to approve the establishment of free markets – as needed – at air, sea and land ports, and to allow sales in them for travellers coming to and departing from the Kingdom.

Saudi economists emphasized that the free market is concerned with displaying goods designated for display or sale, with the suspension of payment of customs duties and taxes.

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Economist Hani Al-Jafri explained that free markets could be located at customs ports of entry or departure, whether air, sea or land and markets can be located on planes or cruise ships.

Al-Jafri indicated that the body expected to supervise these markets is the Ministry of Finance, represented by the Zakat, Tax and Customs Authority, according to the draft of the free markets previously announced.

He stressed that free markets would support national industries, as it is expected that a specific percentage of the products offered in the halls should be of Saudi origin.

Regarding the mechanism of entry of goods, Al-Jafri explained that it is allowed to enter all foreign goods of any kind into the free market areas, as well as to take them outside the country or to other free market areas without being subject to taxes and customs fees.

As for re-exported foreign goods, Al-Jafri indicated that it is allowed to enter foreign goods re-exported from within the country to the free market zones, provided that they are subject to export restrictions and customs procedures followed in the case of re-export.

Businessman Ahmed Al-Ruwaili confirmed that the draft of the free markets included not entering the prohibited goods, the goods of the countries that decided to boycott them economically, or any goods that were banned.

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Al-Ruwaili noted that the goods are not subject to any restrictions in terms of the duration of their stay in them and will be subject to many Saudi conditions, most notably adding the condition of selling according to the quantities allowed for each passenger, with the goods being destroyed before their expiry date.

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