Saudi Arabia’s Updated Customs Services Fee Structure: Key Changes for Imports and Exports

The Zakat, Tax, and Customs Authority (ZATCA) of Saudi Arabia has introduced a new fee structure for customs services to streamline import and export processes. Effective October 6, 2024, the revised rules aim to reduce costs, enhance predictability, and promote the competitiveness of Saudi exports.

This aligns with Vision 2030’s goal of positioning Saudi Arabia as a global logistics hub while supporting local businesses, especially small and medium-sized enterprises (SMEs).

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Key Changes in the Customs Services Fee Structure

1. Elimination of Export Fees

To bolster the competitiveness of Saudi exports, ZATCA has removed all fees associated with export activities. This includes:

• Customs Declaration Fees: No charges for processing export declarations.
• Inspection Fees: X-ray and laboratory sample inspections for exports are now free.
• Other Applicable Fees: Any remaining export-related fees have been waived.

Impact on Exporters:

• The elimination of export fees reduces operational costs, benefiting SMEs in particular.
• Enhanced competitiveness in international markets, supporting Saudi Vision 2030’s diversification goals.

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2. New Import Fee Structure

A simplified and standardized fee system for imports has been introduced:

• Percentage-Based Fees:
  • 0.15% of the total value of imported goods, including insurance and shipping costs.
  • Minimum Fee: SAR 15.
  • Maximum Fee: SAR 500.
• Exempt Shipments: A special cap of SAR 130 applies to exempt shipments.

Benefits for Importers:

• Predictable fee calculations make budgeting easier.
• Reduced costs for high-value shipments compared to previous systems.

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3. Low-Value Shipments

For low-value individual shipments, particularly from online stores, ZATCA has capped the fee at:

• SAR 15 for shipments valued up to SAR 1,000.

Impact on E-Commerce:

• Encourages online shopping by lowering fees for small parcels.
• Supports the growth of the e-commerce sector in Saudi Arabia.

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Strategic Goals: Supporting Vision 2030

The revised fee structure is a strategic move to enhance Saudi Arabia’s global trade position. Key objectives include:

1. Boosting Export Competitiveness:
   • Eliminating export fees removes financial barriers for exporters.
   • Increased support for SMEs aligns with Vision 2030’s economic diversification strategy.
2. Improving Logistics Services:
   • Predictable import fees simplify operations for logistics companies.
   • Standardized fees across all ports enhance operational efficiency.
3. Encouraging Digital Trade:
   • Reduced fees for online store shipments promote e-commerce.

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Implementation Timeline

• Effective Date: The new fee structure will be implemented on October 6, 2024.
• Preparation: Businesses are advised to update their logistics and budgeting processes to align with the changes.

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Practical Implications for Businesses

Exporters

• Cost savings from fee eliminations can be reinvested in scaling operations.
• Competitive pricing on global markets boosts revenue potential.

Importers

• Transparent and standardized fees improve planning and reduce uncertainties.
• High-value shipments benefit from the capped maximum fee, lowering overall costs.

SMEs and E-Commerce Businesses

• Reduced fees for low-value shipments make it easier for SMEs to participate in international trade.
• Growth opportunities for online retailers increase as shipping fees decrease.

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Conclusion

Saudi Arabia’s updated customs services fee structure reflects its commitment to enhancing trade efficiency and supporting economic growth under Vision 2030. The elimination of export fees and the introduction of standardized import fees will benefit businesses of all sizes, fostering a more competitive and predictable trading environment.

Businesses should prepare to leverage these changes to optimize their logistics strategies and contribute to the Kingdom’s global trade ambitions.

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