In a significant move, Saudi Arabia has unveiled the crucial prerequisites for obtaining customs duty exemptions, focusing on personal belongings and commercial samples. The recent announcement, highlighted in the official government gazette, Umm Al-Qura, details the key features of the Unified Guide for Customs Procedures. These regulations, ratified by the governor of the Zakat, Tax, and Customs Authority, are set to be enforced one month following the publication of the gazette notification.
The outlined conditions specify that customs duty exemption is applicable to personal belongings and used household items brought into the kingdom by Saudi citizens residing abroad for a minimum of six months and expatriates making their inaugural move to the Kingdom. The following are the essential requirements:
Personal belongings and household items must be utilized strictly for personal use.
Originating from the resident’s place of abode, they must be directly associated with the entitled individual.
Foreigners must furnish proof substantiating their intent to reside in the Kingdom for the first time.
Personal belongings and used household items must arrive in the Kingdom within six months from the entitled person’s arrival date.
Various modes of transportation do not qualify as personal luggage.
The exemptions extend to parcels and personal postal deliveries, adhering to conditions specified in the Unified Guide for Customs Procedures.
For commercial samples, the stipulations for customs duty exemption are as follows:
The customs value of commercial samples should not surpass SR5000, as per the principles for determining value in the executive regulations.
The owner or authorized representative must submit a request for commercial sample exemption.
Sample quantities should not exceed commercial standards set by the authority.
The samples must not be intended for sale.
No customs duty exemption should have been granted for the same type of commercial sample within the preceding six months from the exemption request date.
Additionally, the new regulations facilitate the clearance of goods post-customs procedures, postponing customs duty payment for 30 days from the clearance date. This service is subject to specific conditions, including the registrant’s commercial registration number, residency in Saudi Arabia for at least 12 months, VAT registration with the Zakat, Tax, and Customs Authority, commitment to declarations and payment obligations, absence of proven tax evasion or smuggling, no ongoing liquidation procedures under the Bankruptcy Law, and compliance with financial solvency standards.
The gazette notification emphasizes the necessity of archiving all relevant documents electronically, with exemptions for personal shipment documents transported via express transport companies. All involved parties in the goods clearance process must retain original documents for five years from the customs declaration submission date.
The regulations empower the authority to redirect goods received through land customs ports to other customs departments within the Kingdom, either due to the absence of technical authority at the port or the need for inspections at another port. This marks a pivotal step towards streamlining customs procedures and ensuring compliance with the law.
