Saudi Arabia : Raises Import Tariffs For Certain Textiles

The government of Saudi Arabia, as part of a broader tariff review of nearly 500 products, has decided to raise its import duty rates on certain textile products from 5% to 12% effective January 1, 2002. The increase will affect Saudi imports of polyester woven fabrics, carpets, blankets and bed linen.

Saudi Arabia had reduced its import duties on these products to 5% in May 2001 from an original 12% levy. The latest change restores the original 12% duty but it has caused concern from some exporters, as they fear the duty increase will negatively impact export sales that flourished while the lower tariff was in effect.

Exporters in Pakistan have voiced serious concern that the new provisions will hurt their sales. Pakistani exporters have build up sizable export business with Saudi buyers; for example, Pakistan has exported $66 million of bed linen to Saudi Arabia since May 2001.

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