How to successfully export of Chinese enterprises in Saudi Arabia
Editor's Note: --- Middle East and the rich countries of Saudi Arabia is one of the world's largest oil exporter, relatively undiversified economic structure, dominated by oil exports, but mainly relied on imports of consumer goods. In addition, nearly 1700 million people in Saudi Arabia, nearly 500 million foreign residents, are low-class, required to be inexpensive and practical goods. So the Saudi market is an open, large consumer demand levels a wide range of potential markets. Many exporters regard the Middle East as they expand their business potential market.

First, the Saudi import duties on goods case

Saudi Arabia to protect their own industrial development, all with the domestic industry of similar imported products are levied 20% import duty, other non-related products tariff rate was 12%. Some of the production of consumer goods and industrial raw materials and accessories are exempt from customs duties. The following are some related products import tax rates: 1, tobacco products: 30%; 2, furniture and aluminum products: 20%; 3, plastic pipe, steel: 20%; 4, household appliances, lighting, building materials: 12%.
For the Contract of the necessary equipment and raw materials, the first domestic producers and importers should be procured. If you do not be procured in the country are allowed to be imported from abroad, customs duties ranging from 0-4 percent, the Gulf Cooperation Council member countries are mutually owned tax-free (including the United Arab Emirates, Kuwait, Bahrain, Qatar and Oman). United Arab Emirates capital of Dubai is a free trade port, import tariffs only 4%. As long as the United Arab Emirates to get a certificate of origin to be exempted from import tariffs to export Saudi Arabia. There are many domestic import and export companies and companies with offices in Dubai, can be said that Dubai is a business and business opportunities gathered in the city, but also a place frequented by the Saudi buyers. Of course, the local importer of Saudi Arabia also used a lot of false price method to avoid customs duties.

Second, Saudi Arabia in terms of the special requirements of food imports

As an Islamic country, the need for food imports an element of the certificate issued by the manufacturer and consumer protection certificates, including imports of poultry and livestock meat, livestock and bulls ram type only fresh or frozen meat, while Iraq must be in accordance with the method of Lan and official proof of slaughter quarantine certificate for seeds, animal feed, livestock, pets, horses, fruits, vegetables and electrical equipment need special documentation. Less than 2000 dollars for the amount of cargo removed from the relevant documents.

The Saudi government also provides a lot of imported products must obtain the Saudi Standards Organization (SASO) certification

Note that, SASO certification should basically be responsible for applying for the Saudi importers, exporters should not bear the cost. In Saudi Arabia, highly centralized country, corruption is very common. Certification of imported goods are a lot of money to buy, where money can do many things. Of course, it's best to know some export enterprises SASO relevant provisions in order to avoid unnecessary troubles encountered in the future.

Third, the local merchants on the requirements of Chinese goods

Saudi businessmen to China attaches great importance to product quality and price requirements are very strict. Some light industrial products can not be non-sample orders, for the price they are multi-comparison, multi-bargaining, the current sharp rise in international oil prices, Saudi Arabia and the pockets of people drum up, but people have experienced a few years ago the pain of oil price slump , consumer behavior and consumer attitudes have become cautious, in addition, some additional understanding of Islamic culture can help exporters choose to adjust the types of export products to Saudi Arabia, but also help to deal with the importer.

Fourth, the business conditions of the other

Saudi Arabia is relatively good business conditions, business environment is more relaxed, Saudi Arabia has no foreign exchange controls, capital flows freely, there is no quota restrictions and trade barriers on international trade in favorable long-term objective of industrial policy the government is to diversify the economic base of Saudi to reduce excessive dependence on oil exports. The Government strongly encourages foreign investment and cooperation.

In addition, the business dealings with Saudi Arabia, also pay attention to some basic common sense. Such as Saudi Arabia at the two bodies on Thursday and Friday, rather than the usual Saturday and Sunday. Some commercial enterprise, only rest on Friday. Government working hours generally from 7:30 am to 2:30 p.m.; other companies generally from 9:30 to 14:00, and 16:30 to 20:00, Saudi Arabia and China have a 5 hours time difference.

Fifth, the latest economic developments of Saudi

1, the Saudi Industrial Development Fund approved loans to industrial projects for the 8 143 million
 
December 25, 2001 Foundation board meeting, approved the 8 new loans for industrial projects, 8 projects are: production of cushioning materials, projects, project dairy products, red brick factory expansion project, the mirror glass production project , liquid packaging container material production projects, packaging materials production project, paraffin production projects, industrial cleaning agent raw material production projects. Total loans of 5.38 billion riyals, or about 143 million U.S. dollars. Thus, the Saudi Industrial Development Fund approved a total of 2384 loans, loans amounting to 40,226,300,000 rials, or about $ 10,727,000,000.

2, China's imports of the country's ranking in Saudi Arabia continue to move forward

According to Saudi press reports, since 1997 trade between China and Saudi Arabia's continued growth in the major countries exporting to Saudi Arabia, China ranking continuously forward. By 1999 rose to No. 8 No. 7 in 2000, again the first quarter of 2001 rose to fifth place, more than Italy, France and South Korea. According to Saudi Arabia to statistics, in 1997 China exported 898 million U.S. dollars to Saudi Arabia in 1998 reached $ 958,000,000, an increase of 6.6%; in 1999 increased to $ 980,000,000, an increase of 2.3%; in 2000 soared to $ 1,196,000,000, an increase of 22% . China's first quarter of 2001 reached 272 million Saudi exports, ranking the United States, Japan, Germany, Britain, after more than Italy, France and South Korea.

3, the Saudi 2002 budget allocation for water and dam projects $ 1,867,000,000

Saudi agricultural water sector official, the 2002 budget in the drilling and construction of new dam projects. Project funding amounts to 70 billion riyals, or about $ 1,867,000,000, of which the main water supply to rural areas by drilling, in Al-Baha and Abu Ha dam construction areas, to provide drinking water to some cities. The laying of water supply pipeline will dilute the water. Rees and Labi He valley construction of 3 dams and so on.

4, Saudi Arabia on 176 commodities imported 12% of the protective tariff

According to the recommendation of the Saudi Supreme Economic Council, November 12, 2001 meeting of the Saudi Cabinet decided on 176 commodities imported 12% of the protective tariffs. May this year, the Saudi import duties on most goods will be reduced to 5%, Saudi Arabia and the need to protect domestic production of goods, continue to implement 20% of the protective tariff. New decision of the Cabinet, the Saudi national manufacturers must confirm their products meet the specifications of existing standards, the importer must also confirm its imports of goods and their manufacturers as consistent with national standards. Subjected to unfair competition of imported goods manufacturers should submit proof of the Saudi Ministry of Power Engineering, Electrical Engineering Department shall be responsible to investigate one by one, the survey results confirmed, the Commission submitted to tariff protection in order to formulate an appropriate rate. Saudi Cabinet's decision is to continue to develop the Saudi national industrial protective measures taken