Saudi Arabia to apply higher duties on steel products by June 10

The import duty on steel billet starting with HS code 7207 will rise to 10-12% by June 10 from the current level of 5%.

The duty on hot-rolled flat steel starting with HS code 7208 will be 10%, 12% or 15%, up from the current 5%.

The duty on cold-rolled flat steel starting with HS code 7209 will be 15%, up from the current 5%.

The duty on coated flat steel starting with HS code 7210 will be 12%, 13% or 15%, up from the current 5%.

The duty on narrow strip starting with HS code 7210 and 7211 will be 10-12%, up from the current 5%.

The duty on sections and angles starting with HS code 7212 will be 12%, up from the current 5%.

The duty on bars starting with HS code 7213 will be 20% while rebar starting with HS code 7214 will be 15-20%, up from the current 5%.

The duty on sections starting with HS code 7216 will be 12-15%, up from the current 5%.

The duty on alloy flat steel starting with HS codes 7225 and 7226 will be 12%, up from the current 5%.

All new duties with details HS codes can be checked at the customs website of Saudi Arabia.

The new import duties are the highest permitted by the World Trade Organization to its members.

The Saudi Arabian economy has been hit hard by the Covid-19 pandemic and the falling oil price – the country’s main income is from oil sales.

The country will increase its value-added tax (VAT) to 15% from the current 5% with effect from July 1.

The country produced 2.704 million tonnes of crude steel in January-April 2020, down by 2.1% from 2.762 million tonnes in the same period of 2019, according to the World Steel Association.