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Saudi Arabia excludes free zone products made with Israeli components

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Saudi Arabia has amended import rules from the Gulf Cooperation Council countries to exclude goods that use Israeli components or those produced in free zones from preferential customs concessions.

The ministerial decision published in the Saudi Official Gazette stated that the Gulf customs agreement would not apply to goods that include a component of Israeli production or manufactured by companies wholly or partly owned by Israeli investors or companies included in the Arab boycott agreement.

Saudi Arabia also decided that all goods produced in the free zones will not be considered locally manufactured. It excluded goods produced by companies with a workforce of less than 25% of local labour, and industrial products value less than 40% after the manufacturing process from the customs agreement of the Gulf Cooperation Council.

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