Saudi Arabia clarifies liquor sale limitation at duty free shops

RIYADH -  Liquor will not be sold at the newly established duty-free markets in Saudi Arabia's entry ports, it has been confirmed.

Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) stated on Friday that according to the rules and requirements for establishing duty-free markets, only goods and products that are permitted to be traded in the Kingdom will be allowed at the duty-free markets.

The authority has set the customs rules, requirements and procedures for establishing duty-free markets at air, sea and land ports, in accordance with the unified customs law for the GCC countries, which includes the conditions related to the operation of duty-free markets, Saudi Gazette reported.

ZATCA highlighted that the decision will contribute to supporting supply chains and enhancing logistical services provided to duty-free markets by providing a wide range of goods and products for travel shopping.

“The duty-free shops will grant additional sales channels to local companies by selling their products to the duty-free operators, which supports and contributes to the promotion of national products,” the authority said.

It has also been clarified that duty-free markets are currently located in the departure terminals of King Abdulaziz International Airport in Jeddah, King Khalid International Airport in Riyadh, King Fahad International Airport in Dammam and Prince Muhammad bin Abdulaziz Airport in Madinah, with plans to expand the markets as needed in air, sea and land ports.

Duty-free markets at customs outlets are those retail outlets which are exempted from customs duties or taxes.

The decision by Riyadh comes days after United Arab Emirates' Dubai ended its 30% tax on alcohol sales besides withdrawing mandatory license fee to buy alcohol.