According to market sources, the authorities in Saudi Arabia have decided to implement the previously announced additional import duties on various goods after all, despite the delay which had been announced. Although no official information has been widely disclosed, the range of products has been reduced from 1,040 to 575 items, however, with the steel product group remaining subject to the additional duties, SteelOrbis understands.
Earlier, it was planned that the import rates would be increased from 5 to 10 percent for square billet, from 5 to 10-15 percent for hot rolled coil (HRC) and from 5 up to 15 percent for coated products. In the longs segment, the tariff for rebar and wire rod will be increased from 10 to 15 and 20 percent, respectively. According to sources, the government has officially implemented the duties starting from June 20. There is no disclosed timeline for how long the measures will be in force, but most market players believe there are here to stay.
As SteelOrbis mentioned previously, the additional duties will mainly hit flat steel imports, while rebar trade to Saudi Arabia from outside the region has been minimal for years. Billet imports, which are rather significant, will remain unaffected as the importers are exempt from paying the import tax. “It seems there was a delay to reconsider the number of goods included in the list as it was considered that in addition to the VAT increase from 5 to 15 percent the higher duties would have too much of a negative impact,” a Saudi Arabia-based producer told SteelOrbis.
