Saudi Arabia to expand duty free shops to all air, land and sea ports

  • 7/15/2021
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RIYADH — Saudi Arabia intends to expand its duty-free markets to all airports, seaports and land ports, as well as on board flights and ships. This is to facilitate the sale of goods to passengers and the cabin crew at the arrival and departure lounges. The Zakat, Tax and Customs Authority (ZATCA) urged the public to express their opinion and viewpoints on the draft guide of the Free Market Regulations through its “Istitlaa” platform during the period between July 13 and Aug. 12. 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 updated guide is addition of some articles, which in turn will contribute to the development of duty-free markets in the Kingdom. The new clauses in the guide included allowing duty-free shops at air, land, and sea ports and on-board ships and aircraft for the sale to passengers and cabin crew in arrival and departure lounges, and adding another clause related to issuing operating license to duty-free markets instead of the previous mode of agreements. The update also included the addition of a condition of 20 percent support for local products, sales limit requirement as per the quantities allowed per passenger according to the customs law, as well as not to sell expired products, and developing a policy for disposing of goods before their expiry. The draft included adding a financial fee instead of previous fees, and cancelling the SR 200,000 bank guarantee, in addition to a third-party insurance requirement for goods in warehouses and lounges against potential risks such as fire.

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