Car duties under 5 per cent?Custom duties to fall [Archives:2005/808/Business & Economy]
The Customs Administration has drawn up a law for the new tariff on goods and their industrial inputs which includes reduction of customs duties.
The administration expects the new law will help reduce prices of food by reducing goods tariffs and their industrial inputs and to curb the process of smuggling, and increase in financial revenues going to the state treasury.
Sources at the Customs Administration say the drawing up of the new tariff is based on a scientific study of important and vital goods, especially commodities that are smuggled into local markets.
The new law would be introduced and put into force after its approval by the cabinet and the parliament.
Lowering of the duties would vary from one commodity to another. Sources say that car customs would be reduced from 25 per cent to less than 5 per cent. As for goods exempted from customs, they are related to technology, such as computers and gold.
Customs on books, magazines and electronic commodities would drop 50 per cent, in addition to fully canceling of tariff on raw materials that are used in local food industry and others.
The customs establishment expects the reductions would also lead to an increase in production level and increase in profits of projects ad improvement in the individual income as well as creation of new jobs.
Adoption of the new law comes as part of the Yemeni government plans of designing clear economic and customs policies to protect local products and realization of the government program of comprehensive economic reforms.