Sudan Exempts Basic Foodstuffs and Industrial Inputs From Customs Duties and VAT

• Sudanese Prime Minister Kamil Idris issued two decisions on 26 October 2026 exempting specified basic foodstuffs and industrial production inputs from customs duties and taxes, expressly including VAT. The measures seek to lower the cost of essential goods while supporting domestic manufacturing and the reconstruction of Sudan’s industrial sector. [sudan.gov.sd], [sudan.gov.sd]
• The food exemption covers flour, lentils, rice, fava beans, edible oils, beans, chickpeas and peas. A separate decision lifted import restrictions on a wider range of goods, but businesses should not assume that every product released from the import ban also qualifies for the customs and VAT exemptions. [sudan.gov.sd], [sudantribune.com]
• The government announcements do not specify the effective date, tariff classifications, duration, customs procedures or documentary requirements. Importers and manufacturers should therefore wait for implementing instructions, confirm eligibility against precise customs codes and obtain clearance before excluding customs duty or import VAT from declarations and landed-cost calculations. [sudan.gov.sd], [sudan.gov.sd], [riotimesonline.com]

Extended article

Sudan has announced customs-duty and VAT exemptions for specified essential foodstuffs and industrial production inputs under separate decisions issued by Prime Minister Kamil Idris on 26 October 2026.

The decisions pursue two related policy objectives. The food measure is intended to ease pressure on household living costs and improve the availability of essential commodities. The industrial-input measure seeks to support domestic manufacturing and help reconstruct Sudan’s industrial sector. [sudan.gov.sd], [sudan.gov.sd]

The measures could reduce the import-tax burden for businesses dealing in eligible goods. However, the official announcements are high-level and do not yet provide the detailed tariff, procedural and effective-date rules needed for transaction-level implementation.

Eight basic food categories covered

The official government announcement identifies eight categories of foodstuffs covered by the exemption:

• flour;
• lentils;
• rice;
• fava beans;
• edible oils;
• beans;
• chickpeas; and
• peas.

These goods are exempted from customs duties and taxes, expressly including VAT. [sudan.gov.sd]

The announcement does not provide the applicable Harmonized System or national tariff codes. This leaves uncertainty over the exact products included within each category.

For example, further guidance may be required to determine whether the exemption applies to:

• all types of flour or only specified cereal flour;
• crude and refined edible oils;
• packaged and bulk products;
• prepared or processed pulses;
• mixtures containing an eligible foodstuff;
• products intended for retail sale or industrial processing;
• seeds suitable for sowing; and
• products falling under different tariff subheadings despite having similar commercial descriptions.

Importers should therefore avoid relying exclusively on product descriptions used in purchase orders or supplier invoices. Eligibility should ultimately be assessed against the tariff codes and specifications adopted by the Sudanese customs authorities.

Industrial production inputs also exempted

A separate decision exempts industrial production inputs from customs duties and taxes, including VAT.

The government described the measure as part of its efforts to support and encourage national industries, contribute to the reconstruction of the industrial sector and enable manufacturing to play a greater role in Sudan’s economic development. [sudan.gov.sd]

The official announcement does not define “industrial production inputs.” This expression could potentially cover raw materials, components, intermediate goods, consumables, manufacturing equipment or spare parts, but the precise scope must be established through implementing guidance.

Several practical questions consequently remain unanswered:

• Which industries and manufacturers qualify?
• Must the importer hold an industrial or manufacturing licence?
• Are finished goods excluded?
• Are machinery, spare parts and production equipment covered?
• Is the relief restricted to goods consumed or transformed during manufacturing?
• Must the goods be imported directly by the manufacturer?
• Can a distributor import exempt inputs for onward supply to a manufacturer?
• Will an exemption certificate or prior approval be required?
• How will diverted or unused goods be treated?
• Will guarantees, bonds or post-import reporting apply?

Manufacturers should not remove customs duty and import VAT from their purchasing forecasts until the relevant products and procedures have been confirmed.

Separate decision lifts import restrictions

Prime Minister Kamil Idris also issued a separate decision lifting the import ban on certain foodstuffs and other goods.

Subsequent reporting identified the measure as Decision No. 95 of 2026 and indicated that it lifted restrictions on 44 categories of goods. The reported list included food and consumer products, building materials, clothing, packaging, furniture, cosmetics, animal feed and certain industrial raw materials. [sudantribune.com]

The lifting of an import ban and the granting of a tax exemption are legally distinct measures.

A product may therefore be:

1. Permitted to be imported and exempt from customs duty and VAT.
2. Permitted to be imported but remain subject to customs duty and VAT.
3. Subject to another licence, restriction or regulatory approval.
4. Outside the product scope of both decisions.

Businesses should not assume that all 44 categories released from the import ban qualify for the food or industrial-input exemptions. The relevant customs, VAT and import-control treatment must be determined separately.

Effective date remains unclear

The official announcements were published on 26 October 2026, but they do not specify whether the exemptions:

• applied immediately upon signature;
• apply from publication;
• require a further ministerial or customs circular;
• apply only to declarations accepted after a future implementation date;
• cover goods already in transit;
• cover goods held under customs control; or
• apply retrospectively to goods already cleared.

The timing can materially affect shipments arriving around the implementation date. Importers should obtain written confirmation before applying the exemption to goods already ordered, shipped or presented to customs.

The announcements also do not specify an expiry date or review period. External reporting similarly notes that the duration and implementation timetable were not disclosed. [riotimesonline.com]

Import VAT and customs-duty treatment

The decisions expressly refer to customs duties and taxes, including VAT. Eligible imports should therefore potentially benefit from relief from both customs duty and import VAT.

Businesses should nevertheless determine whether the relief constitutes:

• a full statutory exemption;
• zero rating;
• suspension subject to conditions;
• a refund after importation; or
• an administrative waiver.

This distinction affects customs declarations, accounting entries, documentary requirements and the consequences of later non-compliance.

If an eligible product is fully exempt at import, the importer should not pay import VAT and therefore has no corresponding import VAT amount to deduct. Businesses should ensure that accounting systems do not record notional recoverable VAT where no VAT was legally paid.

Impact on input VAT recovery

Manufacturers should also distinguish the exemption for imported production inputs from the VAT treatment of their finished products.

Relieving VAT on the imported input does not necessarily determine whether the manufacturer’s subsequent domestic sale is taxable or exempt. The output VAT treatment should be established separately under Sudanese VAT law.

Where the finished product is exempt, the manufacturer may face restrictions on recovering VAT incurred on other expenses. Where the finished product remains taxable, normal deduction rights may continue for VAT-bearing costs, subject to the general rules.

The measures may therefore affect:

• import VAT accounts;
• input VAT recovery;
• partial-exemption calculations;
• inventory valuation;
• standard product costs;
• pricing; and
• VAT-return reconciliations.

Customs classification remains central

The absence of published tariff codes creates a significant implementation risk.

Customs relief is normally linked to the legal classification of the goods rather than only to their commercial name. Businesses should review:

• product specifications;
• composition;
• manufacturing process;
• intended use;
• packaging;
• supplier literature;
• existing customs rulings;
• certificates of analysis; and
• the applicable tariff heading and subheading.

Where classification is uncertain, businesses should seek clarification from the Sudan Customs Forces or an authorised local adviser before customs clearance.

A product should not be split artificially or described inaccurately to bring it within an exempt category. Incorrect classification could lead to reassessment, penalties, delayed clearance or seizure.

Documentation and internal controls

Until detailed procedures are issued, importers should maintain a comprehensive file supporting every exemption claim.

The file should include:

• the Prime Minister’s decision and subsequent implementing guidance;
• the customs declaration;
• tariff classification analysis;
• purchase order and supplier invoice;
• packing list;
• bill of lading or airway bill;
• product specifications;
• evidence of industrial use, where relevant;
• manufacturing licence;
• exemption certificate or approval;
• proof of the importer’s eligibility; and
• inventory records tracing the goods after importation.

For industrial inputs, stock controls may be needed to demonstrate that the goods were used in manufacturing rather than resold or diverted to another purpose.

ERP and customs systems should use dedicated exemption codes linked to an approval workflow. Users should not be permitted to apply the exemption solely because a product description contains terms such as “oil,” “rice,” “raw material” or “industrial input.”

Potential economic effect

Removing customs duty and VAT can reduce an importer’s upfront landed cost. Whether the measure ultimately lowers consumer prices will also depend on exchange rates, transport costs, supply availability and whether importers and distributors pass the tax saving through the supply chain.

External reporting places the measures in the context of currency depreciation, fuel shortages, high domestic transport costs and rapidly increasing food prices. [sudantribune.com], [ecofinagency.com]

Businesses should separately identify the tax saving rather than attributing the entire change in landed cost to the exemption. Foreign-exchange movements or increased logistics costs may offset part of the benefit.

External sources and further reading

• Sudanese Government: decision exempting industrial production inputs
• Sudanese Government: decision exempting specified foodstuffs
• Sudan Tribune: essential food exemptions and import-ban decision
• Sudan Tribune: 44 categories released from the import ban
• VATupdate: Sudan exempts essential food imports
• Ecofin Agency: food exemptions and economic context