Zakat, Tax and Customs Authority (ZATCA) Issues Comprehensive Bonded Zones Rules

Riyadh, KSA, January 29, 2024 :  In a move aimed at bolstering trade efficiency and supporting the Kingdom's ambition to become a global logistics hub, the Zakat, Tax and Customs Authority (ZATCA) has officially issued the Bonded Zones Rules. These rules delineate the statutory provisions governing the licensing, activities, and obligations within bonded zones.

Key Highlights of the Bonded Zones Rules:

1. Licensing Procedures Clarified: The rules provide clear and concise procedures for obtaining licenses for operating within bonded zones. This includes details on application conditions, specifications, and requirements.

2. Activities within Bonded Zones Defined: The rules outline the activities permitted within bonded zones, offering clarity on the range of logistic operations and other functions that can be practiced within these specialized customs areas.

3. Obligations of Operators: Specific obligations for operators within bonded zones are highlighted, ensuring a standardized approach to their responsibilities. This includes compliance with customs duties and taxes suspension until goods are either introduced into the local market or re-exported.

4. ZATCA Control and Supervisory Functions: The rules specify the powers of ZATCA in overseeing and supervising activities within the bonded zones. This control mechanism is crucial for maintaining regulatory compliance and ensuring the proper functioning of these specialized customs areas.

Significance of Bonded Zones:

Bonded zones serve as unique customs areas where importers, exporters, and logistics companies can store goods and conduct various operations without immediate imposition of customs duties and taxes. This suspension remains in effect until the goods are either entered into the local market or re-exported. The creation of such zones enhances liquidity management flexibility, streamlines the movement of goods, and provides increased flexibility for clearance, storage, and re-exporting to diverse destinations.

ZATCA's issuance of the Bonded Zones Rules is expected to further boost the ease of doing business in the Kingdom, attract international investment, and enhance the nation's role in the global supply chain.

Source : https://zatca.gov.sa