Saudi Arabia to establish duty-free markets in air, land and sea ports; 20% support to local products

Logo of Zakat, Tax and Customs Authority (ZATCA)

The Zakat, Tax and Customs Authority (ZATCA) invited the public to express their opinion on the draft Free Market Rules through “Istitlaa” platform until Aug. 12.

According to the project guide, the authority explained that the previous guide was limited to operating duty-free shops in the departure lounges at international airports, which in turn curtailed expansion and development of duty-free markets in the Kingdom.

The goal of the new update is to add some articles, which in turn will contribute to the development of duty-free markets in the Kingdom.

The new clauses included allowing duty-free shops (in air, land, ports and on-board ships and aircraft) for sale to passengers and cabin crew in arrival and departure lounges, and adding an operating license to duty-free markets instead of previous agreements.

The amendment also included the addition of a 20% support requirement for local products, sales limit requirement as per the quantities allowed per passenger according to the customs system, requirement not to sell expired products, and developing a policy for disposing goods before expiry.

Meanwhile, the draft included adding a financial fee instead of previous fees, cancelling the SAR 200,000 bank guarantee, in addition to a third-party insurance requirement for goods in warehouses and lounges for potential risks such as fire.