Saudi Arabia Regulates Maritime Goods Imports: Mandatory Pre-Arrival Customs Data Submission
The new procedures announced by Saudi Arabia’s Zakat, Tax, and Customs Authority mark a significant shift in managing maritime cargo flows, aiming to enhance transparency, accelerate customs clearance, and reduce port congestion.
could you clarify zakat , tax ,customs authorty The new regulations require importers and shipping agents to submit customs shipping data in advance, prior to vessels arriving at Saudi ports. This initiative is part of a draft regulation currently open for public consultation via the “Istitlaa” platform and is expected to come into effect 30 days after its official publication.
According to the draft regulations, the cargo manifest and goods data must be submitted on the Authority’s electronic platform within specified timeframes.
- 72 hours prior to the vessel’s arrival at distant ports.
- At least 24 hours prior to arrival at nearby ports.
- For short voyages (less than 24 hours), submission is allowed at any time prior to arrival.
The regulations hold shipping agents responsible for providing accurate information, including vessel details, types of goods, their weights, number of packages, shipper and consignee information, as well as the date and time of loading. Importers—or their authorized representatives—are also required to complete the customs declaration immediately upon receiving the manifest notice from the shipping agent, including shipment details, value, bill of lading number, and commercial data.
New Clearance Mechanism
The regulations grant the Authority the power to automatically release shipments immediately upon arrival, provided the submitted data matches. Customs duties and import restrictions may also be settled either before or after the goods arrive.
Conversely, the draft regulation stipulates fines of up to 1,000 SAR for non-compliance, with the possibility of waiving the penalty in cases of force majeure.
Regulatory Context
The regulations are part of a broader reform package aimed at improving customs performance and align with Saudi Arabia’s commitments under the Trade Facilitation Agreement, as well as the World Customs Organization’s (SAFE) standards. They also fall within the Authority’s efforts to expand the implementation of the “Two-Hour Clearance” initiative and the acceptance of requests from the exporting country.
These measures aim to reduce congestion, expedite handling procedures, and manage security risks before shipments arrive, thereby lowering costs and improving supply chain efficiency at Saudi Arabia’s seaports.
Objectives of the Decision
- Enhancing proactive control over shipments.
- Reducing congestion at ports.
- Expediting handling procedures.
- Reducing costs and improving supply chain efficiency.
Motives Behind the Decision
- Fulfilling the Kingdom’s commitments under the Trade Facilitation Agreement.
- Supporting the “Two-Hour Clearance” initiative.
- Aligning with international customs standards (SAFE Framework).
Expected Impact on the Sector
| Aspect | Impact |
|---|---|
| Supply Chain | Improving efficiency and reducing logistics costs |
| Border Security | Enhancing proactive shipment control |
| Companies | Increasing pre-compliance with regulations, with initial adaptation challenges |
| Shipping Agents | Greater responsibilities and a key role in data accuracy |
In conclusion
These regulations represent a strategic step in Saudi Arabia’s journey toward developing its logistics environment and enhancing its global trade competitiveness. While the upcoming phase may require supply chain actors to adapt and coordinate more closely, the anticipated outcomes—faster procedures, reduced costs, and enhanced port security—make these measures a genuine investment in the future of the Kingdom’s maritime trade.
