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The Zakat, Tax, and Customs Authority (ZATCA) has recently announced new Fees Rules on Customs Services provided at customs ports effective from October 6, 2024. This move seeks to enhance the Saudi Arabia’s competitive edge in the logistics sector. The new measures are in line with the country’s Vision 2030, which aims to turn the country into a global logistics hub.
Waiver of Export Customs Service Fees
One of the most significant aspects of the new Fee Rules is the complete waiver of customs service fees for exports. This includes services such as customs declaration processing, lead seals, land port loading, X-ray inspections, customs data exchange, and sample analysis exchange at specialized laboratories.
New Mechanism for Import Customs Service Fees
On the import side, ZATCA has introduced a new mechanism for calculating customs service fees. Previously, the fee structure involved fixed charges: SAR 100 for each container inspected via X-ray, SAR 100 for information exchange services, and SAR 20 for customs declaration processing services. The new system replaces this with a fee of 0.15% of the value of the incoming goods (including insurance and shipping).
The revised structure sets a minimum fee of SAR 15 and a maximum cap of SAR 500, with a special limit of SAR 130 for shipments that are exempt from customs duties and taxes. This percentage-based fee calculation is expected to provide greater predictability and flexibility for importers, allowing them to plan their expenses more effectively.
In addition, ZATCA has introduced a SAR 15 fee for customs declaration processing on individual shipments arriving via online stores (i.e. e-commerce transactions), provided the value of these shipments does not exceed SAR 1,000. This new fee structure simplifies the customs process for the growing e-commerce market in Saudi Arabia, which has seen a significant surge in recent years.
Supporting SMEs and Trade Facilitation
The reforms are particularly beneficial for SMEs, as they reduce the costs associated with exports and imports. By waiving the fees for customs services related to exports, such as X-ray inspections and customs data exchange, ZATCA aims to encourage more SMEs to participate in international trade. These changes will help reduce the financial burden on smaller businesses, making them more competitive on the global stage.
For importers, the new fee structure brings greater clarity and transparency. The switch to a percentage-based fee on imports ensures that businesses can pre-calculate their customs service fees, avoiding unexpected costs. Furthermore, ZATCA has unified the fee calculation mechanism across all customs ports, including land, sea, and air, simplifying the process for businesses operating across different transport modes.
Conclusion
The new rules are effective from October 6, 2024. Legal compliance personnel in various corporations must familiarise themselves with the new rules so that they are ready when the rules become effective.
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