New Rules of Customs procedures by ZATCA

The Zakat, Tax and Customs Authority (ZATCA) has recently introduced comprehensive rules to streamline customs procedures for the import and export of goods in the Kingdom of Saudi Arabia (KSA). These rules align with the provisions of the Common Customs Law of the GCC States and its Implementing Regulations, aiming to enhance efficiency and clarity in customs operations.

Objectives of the New Rules

The newly announced rules focus on several critical areas to improve customs processes:

• Streamlining Documentation: Simplifying the required documents for importing goods and establishing a clear submission mechanism.
• Transportation Processes: Defining the transportation of goods between customs offices within KSA, conditions for splitting consignments, and pre-clearance procedures.
• Inspection Procedures: Implementing business-friendly inspection rules and processes.
• Exemption from Customs Duties: Simplifying the conditions for customs duty exemptions.
• Provision of Guarantees and Refunds: Streamlining the process for bank guarantees and refunds.
• Suspension of Customs Duties: Clarifying conditions for suspending customs duties in specific scenarios such as movement within Special Economic Zones (SEZs), transit, temporary admission, and re-export of goods.

Detailed Breakdown of the New Customs Procedures

1. Documentation Requirements for Importing Goods

The rules provide detailed procedures for amending customs declarations. Amendments must be requested by the entity that submitted the original declaration. However, ZATCA reserves the right to amend declarations on its own initiative if discrepancies are found between the declaration and the attached documents.

2. Transportation Process

The new rules outline scenarios where goods received through land customs ports may need to be redirected to other customs offices within KSA, such as for additional inspections. The rules also address conditions under which a single consignment can be split, such as receiving goods in incomplete shipments or due to the nature and size of the goods.

Pre-clearance of goods is a significant aspect, allowing importers to save time. To qualify for pre-clearance, goods must be shipped from the country of export, and the customs declaration must be submitted electronically at least 24 hours before arrival at KSA customs ports.

3. Inspection Rules and Procedures

The rules establish risk-based principles and criteria for inspecting imported goods. For goods that require off-site inspections, owners must transport and ensure the safety of the goods at the designated inspection site. Additionally, owners can request inspections before submitting the customs declaration and can take samples, for which a customs declaration and corresponding duties will apply.

4. Conditions for Suspension of Customs Duties

The rules detail conditions for suspending customs duties for goods entering, leaving, or being transported between SEZs. For instance, to claim a refund of customs duties for goods moving from KSA to SEZs, owners must submit a re-export declaration linked to the original import declaration. Duty suspension within SEZs requires an import declaration and customs duties payment when moving goods into KSA. The rules also cover duty suspension for goods in transit, temporary admission, and re-export, including obligations of carriers and guarantee provisions.

5. Exemption from Customs Duties

The rules specify criteria for customs duty exemptions, such as for personal effects and used household items of citizens residing abroad for at least six months and foreigners entering KSA for the first time. Commercial samples with a customs value not exceeding 5,000 SAR can also be exempted upon request by the owner.

6. Provision of Guarantees and Refunds

The new rules allow for the importation of goods and their transportation within KSA without immediate customs duty payment by submitting a cash, bank, or documentary guarantee. Owners can also request a 30-day postponement for customs duty payment from the clearing date, provided a guarantee is offered. Specific provisions are included for re-exporting harmful or non-conforming goods, allowing owners to claim refunds for paid customs duties upon ZATCA approval.

Conclusion

The new rules introduced by ZATCA represent a significant step towards enhancing the efficiency, clarity, and business-friendliness of customs procedures in KSA. By streamlining documentation, transportation, inspection, duty suspension, exemptions, and guarantees, these rules aim to facilitate smoother import and export processes, benefiting businesses and promoting economic growth in the region.

Summary

The Zakat, Tax and Customs Authority (ZATCA) has introduced new rules to streamline customs procedures for the import and export of goods in Saudi Arabia (KSA). These rules align with the Common Customs Law of the GCC States and its Implementing Regulations, aiming to enhance efficiency and clarity in customs operations.

Disclaimer: 
The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk. 

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