KSA re-imposes 5% duty on steel and cement imports

Steel had been exempt from duty for two years until this week's decision by Saudi Arabia.

Saudi Arabia has re-imposed a 5% customs duty on all steel rebar and cement imports, except those coming from other GCC countries, according to reports.

The decision became effective as of January 1 and has been circulated to all border ports according to the Arab Iron and Steel Union website.

Two years ago, the GCC agreed to exempt all steel and cement imports from duties in order to tackle supply shortages and rising material costs; however, this was overturned at the 80th GCC Financial and Economic Cooperation Committee meeting in Muscat in May.

At the meeting, it was decided to end duty exemptions on rebar, bricks and cement imports as of January 1, 2010 because the reasons for the exemptions no longer existed.

Saudi Arabia is the first GCC country to re-impose protectionist policies on the commodities.

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