IMPORT TAXES AND DUTIES IN SAUDI ARABIA
Import taxes and duties significantly increase the cost of shipping goods from China to Saudi Arabia. These charges mainly include value-added tax (VAT), which is 15% in Saudi Arabia, and customs duties, which vary depending on the type and origin of the goods.
For example, electronic products imported from China may face a customs duty rate of 5-20%, depending on their classification under the Harmonized System (HS) code. These taxes are assessed on the CIF value (cost, insurance and freight) of the goods, which means that all transportation and insurance costs to the port of entry are included in the tax base.
| Product Type | HS Code | Customs Duty | Additional Taxes |
|---|---|---|---|
| Electronics | 85 | 5-20% | 15% VAT |
| Machinery | 84 | 5-15% | 15% VAT |
| Textiles | 61-63 | 12% | 15% VAT |
| Toys | 95 | 10-20% | 15% VAT |
| Furniture | 94 | 15% | 15% VAT |
How to calculate tariffs
Suppose you ship electronics from China to Saudi Arabia and the costs are as follows:
Product cost: $10,000
Insurance: $200
Freight $600
Tariff rate: 5%
So, the tariff is: Tariff = CIF value × Tariff rate
CIF value = (cost of goods + insurance + freight)
CIF value = ($10,000 + $200 + $600) = $10,800
Tariff = $10,800 × 5% = $540