Customs basics for importers: duty, HS codes and clearance

If you import goods, customs costs are part of your product cost — and your pricing.

What determines the duty?

• The HS code: every product has a tariff classification that sets its duty rate under the GCC common customs tariff.
• The customs value: generally the price of the goods plus shipping and insurance to the point of entry.
• Origin: goods from certain countries may benefit from trade agreements.

What you pay at import

1. 1Customs duty on the customs value.
2. 2Excise tax, if the product is subject to it.
3. 315% VAT on the total.

Avoiding delays

• Confirm the correct HS code before you ship — wrong codes mean penalties and re-assessment.
• Make sure invoices, packing lists and certificates of origin match.
• Check whether your product needs approvals from other authorities before it arrives.

Tip

Include all import costs in your landed cost before setting your selling price.