Saudi Arabia reimposed 5 percent customs duty on steel rebars & cement imports except those coming from GCC countries after a temporary exemption that lasted for 2 years. This decision was circulated to all Saudi border ports for implementation as of the beginning of 2010. Saudi Arabia had prior to that approved a cut in customs duties on steel since April 2004 from 20 percent to 5 percent. GCC had also approved to duty exemptions on steel & cement imports two years ago, hence becoming totally duty free imports, in order to tackle the crisis of tight supply that prevailed in the market then, restraining the upward trend of building materials prices that reached record levels. Other GCC countries are expected to follow the Saudi example of imposing customs duties of 5 percent. In a meeting in Muscat last May, the GCC Financial & Economic Cooperation Committee called for a hold on any further exemptions on rebar, bricks & cement imports in all GCC countries and for the application of protectionism from Jan. 1, 2010. It said the reasons for calling such exemptions no longer exist, adding that the period for these countries to impose duties on imported rebar and cement has expired.
