Important Increases in Customs Duti
Important Increases in Customs Duties
Presidential Decree No. 184 of 2013 amended the tariff rate for some imported commodities, equipment, and manufacturing supplies required for industrial and agricultural production as well as tourism (the “Decree”).[1] In addition, the Decree established a Supreme Council for Tariffs.
These amendments raised the tariff rates for a group of consumption goods; this includes an increase ranging between 15 and 20% upon marine produce and associated products and an increase from 5 to 10% on coconuts, almonds, and other similar products usually highly demanded in Ramadan. A 10% increase was levied on imported flowers and finally fruits were subject to an increase from 5 to 10%. The increase also covered other products such as fireworks, matches, watches, video games, billiards and more.
Regarding specific industries, the Decree is principally directed towards assembly industries. The Decree offered tariff cuts based on the percentage of the final assembled product that was manufactured domestically. Furthermore, tariffs upon Hybrid and Natural Gas vehicles have been reduced by 25%, while imports of the Arab Authority for Oil Pipes, supplies of vehicles and natural gas stations, as well as infant milk production supplies have all been subject to an increase of 2%. Finally, tariffs on three-wheeled vehicles have increased from 10% to 20%.
Concerning agriculture, the tariff amendments exempted imported seeds from any tariffs. In tourism, whichever is less, 20% of the value of imports or the original determined import tax, shall be paid upon all imports for hotel and touristic facilities except for passenger cars, if for the purpose of substitution and renewal. This applies for facilities stipulated in Law No. 1 of 1973 and its amendments.
Finally, the Decree established the Supreme Council for Tariffs to be presided over by the Minister of Finance; its membership of Ministers shall be determined through the Prime Minister's Decree. It aims to explore and suggest tariff amendments based on the continuous economic changes. This Council shall have a technical secretariat which shall answer to the Minister of Finance as he shall determine its composition and competence. The head of this technical secretariat shall be chosen by the Prime Minister.
[1] Presidential Decree No. 184/2013 on Custom Tariffs, Official Gazette, Issue No. 12 (cont.), 26 March 2013.
Presidential Decree No. 184 of 2013 amended the tariff rate for some imported commodities, equipment, and manufacturing supplies required for industrial and agricultural production as well as tourism (the “Decree”).[1] In addition, the Decree established a Supreme Council for Tariffs.
These amendments raised the tariff rates for a group of consumption goods; this includes an increase ranging between 15 and 20% upon marine produce and associated products and an increase from 5 to 10% on coconuts, almonds, and other similar products usually highly demanded in Ramadan. A 10% increase was levied on imported flowers and finally fruits were subject to an increase from 5 to 10%. The increase also covered other products such as fireworks, matches, watches, video games, billiards and more.
Regarding specific industries, the Decree is principally directed towards assembly industries. The Decree offered tariff cuts based on the percentage of the final assembled product that was manufactured domestically. Furthermore, tariffs upon Hybrid and Natural Gas vehicles have been reduced by 25%, while imports of the Arab Authority for Oil Pipes, supplies of vehicles and natural gas stations, as well as infant milk production supplies have all been subject to an increase of 2%. Finally, tariffs on three-wheeled vehicles have increased from 10% to 20%.
Concerning agriculture, the tariff amendments exempted imported seeds from any tariffs. In tourism, whichever is less, 20% of the value of imports or the original determined import tax, shall be paid upon all imports for hotel and touristic facilities except for passenger cars, if for the purpose of substitution and renewal. This applies for facilities stipulated in Law No. 1 of 1973 and its amendments.
Finally, the Decree established the Supreme Council for Tariffs to be presided over by the Minister of Finance; its membership of Ministers shall be determined through the Prime Minister's Decree. It aims to explore and suggest tariff amendments based on the continuous economic changes. This Council shall have a technical secretariat which shall answer to the Minister of Finance as he shall determine its composition and competence. The head of this technical secretariat shall be chosen by the Prime Minister.
[1] Presidential Decree No. 184/2013 on Custom Tariffs, Official Gazette, Issue No. 12 (cont.), 26 March 2013.