Insight – Saudi Arabia increases import taxes on 107 tariff lines

29 September 2022

From 12 June 2022, Saudi Arabia has increased tariffs on 107 tariff lines. These increases are within Saudi Arabia’s agreed maximum tariff rates as part of its World Trade Organization obligations.

Saudi Arabia has stated that the purpose of these tariff increases is to protect domestic industries and local agricultural production.

Saudi Arabia has not set an expiry date for these tariff increases.

The tariff increases are expected to impact approximately 2% of Australian agricultural exports to Saudi Arabia. The Australian agricultural commodity most impacted by these changes is carrots.

Implications for Australian agricultural exporters

Higher tariffs make imported products more expensive, which impacts their competitiveness relative to products made domestically. If implemented for one year, tariff revenue on the affected Australian agricultural exports are expected to increase from around $12,000 per year to $2.7 million per year.

  • carrots ($17.3 million in exports to Saudi Arabia per year)
  • potatoes ($177,000 in exports to Saudi Arabia per year)
  • onions ($123,000 in exports to Saudi Arabia per year).

Australian exporters should work with their Saudi importers to review the impact these tariffs may have on their sales to Saudi Arabia.

Table 1: Australian agricultural export commodities most affected by increased Saudi Arabian import tariffs

Commodity

Saudi Arabia HS import code

Previous tariff rate

Tariff from 12 June 2022

Australian exports to Saudi Arabia (2019–20 to 2021–22 average)

Exports to Saudi Arabia as a proportion of Australian exports to the world (2019–20 to 2021–22 average)

Horticulture

Carrots

 

0706.10.00

0%

15%

$17.3m

18.50%

Melons

0807.19.10, 0807.11.00

0%

15%

$0.09m

0.28%

Potatoes

0701.90.00

0%

15%

$0.18m

0.53%

Onions

0703.10.11

0%

15%

$0.12m

0.39%

Other

Birds’ eggs

0407.29.00

20%

25%

<$0.01m

0.07%

Frozen fish

0303.89.91

5%

6%

$0.04m

0.36%

Meat & offal (other)

0208.90.31, 0208.90.32

20%

25%

$0.03m

0.23%

The full list of affected products is available here.

Australian agricultural, fisheries and forestry exports to Saudi Arabia

Australia exported a record $1.5 billion in agriculture, fisheries and forestry products to Saudi Arabia in 2021–22 (see Figure 1).

The major driver since 2019–20 has been exports of barley. This is due to higher diversification of barley exporters into the Saudi Arabian market. There were also increases in exports of wheat, beef and sheepmeat.

Figure 1: Australian AFF exports to Saudi Arabia (FY2017–18 to FY2021–22)

Figure 1 Australian AFF exports to Saudi Arabia

Resources

The Manual of Importing Country Requirements has information about Saudi Arabia’s import conditions.

Austrade has more information about market opportunities in Saudi Arabia.

The Australian Government’s network of Agriculture Counsellors provided information for this article. More information about the Agriculture Counsellor network, including contact details, is available on the Department of Agriculture, Fisheries and Forestry website.

Go further, faster with Austrade

Go to Austrade export services to learn the basics, find the right markets and understand market requirements.