Saudi Arabia Transforms Trade Landscape: No More Customs Fees on Exports and Slashed Import Rates Set to Launch in October

Saudi Arabia Transforms Trade Landscape: No More Customs Fees on Exports and Slashed Import Rates Set to Launch in October

The decision, which will come into effect on October 6, 2024, includes cancelling the customs service fee for exports and reducing the customs service fee for imports through a new methodology for calculating the import fee based on collecting a fee for the customs declaration processing service for goods amounting to 0.15% of the value of the imported goods.

The customs services financial fees document included imposing a financial fee for the customs data processing service of 15 Saudi riyals on individual shipments received through electronic stores from outside the Kingdom whose value does not exceed 1,000 Saudi riyals.

The Authority explained that the customs services for exports whose financial fees were cancelled include customs data processing services, lead stamping, porter services at land ports, X-ray examination, exchange of customs data information, and exchange of sample analysis in private laboratories.

She added that the financial consideration for customs services provided for imports previously included collecting an amount of 100 riyals for each container inspected by X-ray, in addition to an amount of 100 riyals for the “information exchange” service and an amount of 20 riyals for the customs declaration processing service, while the financial consideration after implementing the decision depends on imposing an amount of 0.15% of the value of the imported goods, including insurance and shipping, with a maximum of 500 Saudi riyals only, and a minimum of 15 riyals, and with regard to goods exempt from customs duties and taxes, the maximum limit is 130 riyals.

The Zakat, Tax and Customs Authority called on its clients and taxpayers to contact it in case of any inquiries.

She pointed out that cancelling the financial fee for customs services for exports will contribute to encouraging exporters and alleviating financial burdens, especially for small and medium enterprises, in addition to raising the efficiency and quality of competitiveness of Saudi exports.

It also stressed that it aims, through approving the new methodology for calculating the financial counterpart for imports, to reduce import costs and enhance the ability of importers to calculate the costs of the financial counterpart for customs services for imports in advance and set a ceiling for this counterpart to ensure that costs do not increase for importers and unify the calculation mechanism between the various land, sea and air ports, in addition to the importance of this in enhancing and supporting the objectives of trade facilitation.

The Authority stated that it seeks to provide customs services that are provided in accordance with best practices, which will achieve a positive impact on the level of the logistics services system and support its strategic objectives, in addition to enhancing the confidence of dealing with importers and exporters and enhancing the level of transparency, stressing its continuous commitment to developing its customs services in line with the objectives of its strategy by contributing to transforming the Kingdom into a global logistics platform within the framework of Saudi Vision 2030.

Source: RT

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2024-09-07 10:42:09

Here are some People Also⁤ Ask (PAA)⁤ related⁤ questions for the title: **Comprehensive Guide​ to Saudi⁤ Arabia’s Customs Duty ​Reforms**:

Comprehensive Guide to Saudi Arabia’s Customs Duty Reforms

In recent years, ⁣Saudi Arabia has been actively working ‌to reform its customs duty regime, aiming to enhance trade facilitation, reduce costs for importers and exporters, and promote economic competitiveness.​ In this article, we will ​delve ⁢into the ​latest developments in Saudi⁤ Arabia’s customs​ duty landscape, including the ⁢recent ​decision to cancel customs service fees for exports and ⁣introduce a new methodology ‌for calculating import fees.

Canceling Customs ‍Service Fees for Exports

As of October ‌6, 2024, Saudi Arabia has canceled customs service fees for exports, a move aimed at encouraging ⁤exporters and alleviating financial burdens, particularly for small and medium-sized enterprises. This decision ​is expected to‍ contribute to the growth of Saudi exports, enhance their competitiveness, and raise the efficiency of logistics services.

New Methodology for Calculating Import Fees

The Zakat, ⁤Tax and ​Customs ⁣Authority has introduced a new methodology for calculating import fees, which will be based on collecting ⁤a fee for the customs declaration processing service amounting to 0.15% of the value of the ⁣imported goods, including insurance and shipping. The ‍maximum fee will be capped at 500 Saudi riyals, and the minimum at 15 riyals. For goods⁢ exempt from customs duties and taxes, the maximum limit is 130 riyals.

Benefits of the New ⁣Methodology

The new ⁤methodology ​is designed to reduce import costs, enhance the ability of​ importers to calculate the ⁢costs of⁣ the financial counterpart for customs services for imports⁤ in advance,‍ and set a ceiling ‌for this counterpart to ensure that costs do not ​increase for importers. The unified‍ calculation mechanism across land, sea, and air ports will ​also support the objectives of trade facilitation.

Previous Developments in Customs Duty Rates

It is worth noting that Saudi Arabia has previously ‍increased ⁣customs ​duty rates on certain goods, with rates ranging from 6% to 25% and impacting 99 Harmonized System (HS) codes ​covering a wide range of ⁤products [[3]]. Additionally, businesses can use the customs duties and taxes calculator provided by‌ the Saudi government to estimate the approximate total value of duties and taxes [[2]].

Conclusion

Saudi Arabia’s latest reforms in customs⁣ duty rates and fees are a significant step towards enhancing trade facilitation, promoting economic competitiveness, and supporting the growth of exports and imports. As the country continues to ⁣implement‍ changes to its customs duty regime, businesses and importers/exporters should stay informed about the developments andreview the changes to determine their impact on their operations.

References:

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Here are some related PAA (People Also Ask) questions for the title “Comprehensive Guide to Saudi Arabia’s Customs Duty Reforms”:

Comprehensive Guide to Saudi Arabia’s Customs Duty Reforms

In recent years, Saudi Arabia has been actively working to reform its customs duty regime, aiming to enhance trade facilitation, reduce costs for importers and exporters, and promote economic competitiveness. In this article, we will delve into the latest developments in Saudi Arabia’s customs duty landscape, including the recent decision to cancel customs service fees for exports and introduce a new methodology for calculating import fees.

Canceling Customs Service Fees for Exports

As of October 6, 2024, Saudi Arabia has canceled customs service fees for exports, a move aimed at encouraging exporters and alleviating financial burdens, particularly for small and medium-sized enterprises. This decision is expected to

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