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HomeEconomySaudi Arabia Cuts Customs Fees to Boost Trade

Saudi Arabia Cuts Customs Fees to Boost Trade

New fee structure aims to streamline trade and enhance competitiveness

September 8, 2024
in Economy, Vision 2030
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Saudi Arabia is set to eliminate fees for customs services related to exports and reduce import service fees to 0.15% of the goods’ value. This change, effective from October 6, aims to streamline trade processes and bolster business activities.

The Zakat, Tax, and Customs Authority (ZATCA) introduced a new fee structure, including an SR15 ($4) charge for customs declaration on online purchases up to SR1,000. Previously, fees included SR100 for X-ray inspections per container and SR20 for customs declaration processing. The new system caps the maximum import fee at SR500, with a minimum of SR15.

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These adjustments are designed to alleviate financial burdens on exporters, particularly SMEs, and enhance competitiveness. The standardized costs across land, sea, and air transport are expected to facilitate more efficient trade and economic benefits.

ZATCA detailed that the new customs fee waiver will improve the competitiveness and efficiency of Saudi exports. The changes aim to reduce import costs and simplify trade procedures, supporting e-commerce growth.

The SR15 flat rate for online shipments highlights ZATCA’s commitment to advancing e-commerce, benefiting the sector by lowering cross-border shopping costs and increasing access to global goods for Saudi consumers.

ZATCA has also launched several initiatives to enhance trade operations and support economic growth, aligning with Vision 2030. These include the Saudi Authorized Economic Operator Program, which streamlines customs clearance for trusted businesses by offering faster processing, fewer inspections, and priority handling.

The Authorized Economic Operator Program is expected to simplify international trade for trusted operators and boost overall efficiency.

In a significant digital transformation step, ZATCA introduced the National Single Window for Trade, FASAH, consolidating all trade-related operations into a single digital interface. This platform simplifies document submission, approval processes, and shipment tracking, reducing delays and improving transparency.

ZATCA has also implemented advanced e-tracking systems for shipments, providing real-time tracking to minimize delays, reduce fraud risk, and enhance logistics efficiency. This represents a major advancement in supply chain management.

To encourage SME participation in international trade, ZATCA has introduced supportive measures such as customs duty deferrals and simplified clearance procedures, easing financial and administrative burdens.

In June 2024, ZATCA relaxed temporary admission regulations for heavy machinery and equipment, benefiting international contractors by reducing customs duties and eliminating frequent renewals, facilitating smoother project execution.

For inquiries, customers and taxpayers can contact ZATCA through its 24/7 call center, X account, email, or instant chat on its website.

Tags: customs feese-commercetradeVision 2030ZATCA
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