Saudi Arabia will impose the highest licensing tariff on imported steel materials

According to foreign media, Saudi Arabia plans to raise the import tariff rate of various kinds of steel materials to the highest "binding tax rate" permitted by the World Trade Organization (WTO).

From June 10, the import tariff of steel billet will be increased from 5% to 10%; the tariff of hot rolling steel materials will be increased from 5% to 10-15%, depending on different varieties; the import tariff of coated steel materials will be increased from 5% to 12-15%; the import tariff of wire rod will be increased from 10% to 20%, and the tariff of thread steel will be increased from 10% to 15%. The complete list of products affected by this tariff policy adjustment can be obtained from Saudi customs.

Binding tariff rate is the highest tariff rate that WTO member countries promise when they join WTO. It is different from the applicable tariff rate, that is, the current tariff rate levied by member countries.

Recently, the Saudi government's budget for fiscal expenditure has been greatly suppressed due to the fall in oil prices and the new crown epidemic. Local market participants in Saudi Arabia believe that there are many reasons behind the government's increasing tariff rate on imported steel materials, including protecting domestic industries and increasing national financial revenue. The Saudi government earlier announced its intention to double the value-added tax to 15% from July 1 to increase additional revenue.