Saudi Arabia declines Bangladesh's request for customs duty exemption

23 Dec '22

2 min read

Pic: Shutterstock

Saudi Arabia recently refused to offer any exemption from customs duties to products from Bangladesh due to a unified customs tariff system of Gulf countries. The latter had requested the former to exempt customs duties on 130 of its products during the fourteenth session of the Saudi-Bangladeshi Joint Committee meeting held in Riyadh in October.

Saudi Arabia is part of the Gulf Cooperation Council (GCC) customs union since January 1, 2003.

"Customs duties according to the unified customs tariff of the Council, except for what is exempted under an international agreement within the framework of the Gulf Cooperation Council, and accordingly the Saudi side is unable to provide any exemptions from customs duties," the Saudi embassy in Dhaka was quoted as saying in a ‘note verbale’ by a domestic newspaper.

Bangladesh exported goods worth $290 million to Saudi Arabia in fiscal 2021-22. Readymade garments were worth $144 million out of that, according to the Bangladesh Export Promotion Bureau.

But the actual exports volume to the Gulf nation is higher as a significant amount of that is conducted through informal channels.

Saudi Arabia is the 24th largest export destination of Bangladesh out of 202 countries. The former is also the 26th largest destination for readymade garments from the latter.

Fibre2Fashion News Desk (DS)

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