What is a Customs Tariff?
A customs tariff is a type of tax imposed by governments on imported or exported goods. In Saudi Arabia, these fees form an important part of the national economic policy. They:
- Provide a major source of government revenue.
- Serve as a means to regulate foreign trade.
- Serve as a tool to protect local industries.
Customs System in Saudi Arabia
Within the framework of protecting the Saudi market, the Kingdom has issued the Customs System, which ensures:
- Preventing the entry of prohibited goods.
- Collecting the applicable customs duties.
The "Unified Customs Law for the Gulf Cooperation Council (GCC) States," issued on January 6, 2003, is one of the legal pillars regulating customs duties in the Kingdom.
Objectives of the Customs Tariff According to Saudi Vision 2030
Although customs tariffs are imposed on foreign goods, the Kingdom aims through them to:
- Stimulate the local economy.
- Promote investment.
- Support the objectives of Saudi Vision 2030.
Customs Duty Exemptions in Saudi Arabia
One of the most important tools the government relies on to promote investment is customs exemptions, which help support the national economy and attract businesses.
Goods exempted from customs duties include a range of products according to specific laws and regulations, with these items prioritized to support vital sectors.
Customs Duty Exemptions According to the Unified GCC System
| Article | Type of Exemption | Details: |
|---|---|---|
| Article 99 | Diplomatic Exemptions | Exemption for Imports of Diplomatic and Consular Missions and International Organizations, provided that reciprocal treatment is applied. |
| Article 102 | Military Exemptions | Exemption for Ammunition, Weapons, Equipment, Military Vehicles, and Spare Parts. |
| Article 103 | Personal Luggage and Household Items | Exemption for Returning Citizens’ Luggage, First-Time Resident Foreigners, and Non-Commercial Gifts. |
| Article 104 | Charitable Organizations’ Supplies | Exemption for Imports of Charitable Organizations According to the Executive Regulations. |
| Article 105 | Re-exported Goods | Exemption for Re-exported Goods of National Origin and Foreign Goods Re-exported Within One Year. |
Conditions for Customs Duty Exemptions
1. Exemption for Goods of National Origin:
- – Obtain approval from the authority before the goods leave.
- – Submit a declaration upon re-importation along with the required documents.
- – The goods must bear a clear and non-removable country of origin mark.
- – The goods must remain in the same condition as when exported.
2.Exemption for Re-exported Foreign Goods:
- – Obtain approval from the authority before the goods leave.
- – The importer must be the one who carried out the re-export.
- – Re-import the goods within one year of export.
- – Customs duties must have been previously paid without being refunded.
- – Re-import the goods within one year of export.
- – The goods must remain in the same condition as when exported.
Electronic Customs Duty Exemption
The Ministry of Industry and Mineral Resources offers an electronic service that allows factories to submit a request for customs duty exemption and obtain approval online, without the need to visit the ministry's headquarters.
Conclusion
By providing well-planned customs exemptions, the Kingdom opens wide opportunities for companies to achieve their ambitions across various sectors.
Customs exemptions remain a strategic step to stimulate innovation and achieve sustainable development across various economic sectors.
