Industry Ministry starts expanding scope of industrial customs exemption

The Ministry of Industry and Mineral Resources commenced its plan to expand the scope of industrial customs exemption for all industrial establishments that have a valid industrial license from the ministry, on imports of specified materials and products.

The new customs exemption, which entered into force as of today, April 1, covers imports of raw materials, semi-finished materials, finished materials, packing and packaging materials, machinery, equipment and spare parts, which are directly required for industrial production operations without any restrictions.

This, however, excludes, material items which industrial facilities produce locally as outputs for their factories, or import them as inputs for their factories, in accordance with the standards and requirements associated with the service of requesting the addition of a customs item to the list of industrial capabilities for local products, according to a ministerial statement.

Last March, the ministry called on owners of industrial establishments authorized to withhold specific customs items to submit a request to waive the relevant customs and include them in the list of industrial capacities for local products, with supporting justifications.

The expansion of the scope of industrial customs exemption came as part of the incentives provided by the Kingdom to the local industrial sector to boost manufacturing capabilities and increase its competitiveness. It also came in affirmation of the ministry’s role in enabling and accelerating the growth of the Kingdom’s industrial sector, in line with the objectives of the Saudi Vision 2030 and the National Industrial Strategy’s goals.