With the increase in trade between countries, it has become necessary to understand customs clearance procedures that ensure that goods cross borders legally and in an orderly manner, while ensuring that imported and exported goods comply with local and international laws and regulations and that applicable duties and taxes are paid.
In this article, we will discuss in detail what customs clearance is and its importance in operations.Import and ExportWhat are the requirements for obtaining a license to work in this field?
Abdulaziz bin Yasser Al-Anzi Law Firm
What is customs clearance?
Customs clearance is a set of procedures that facilitate the legal transfer of goods across international borders, whether imports or exports, while ensuring that these goods comply with local and international customs laws and regulations, protecting the rights of the state and the national economy, and facilitating legitimate trade.
Customs clearance includes multiple aspects that go beyond simply checking the required papers and documents to ensure their validity and completeness. It also includes inspecting the goods and ensuring their conformity to the data mentioned in the documents, verifying their quality and safety, and ensuring that there are no prohibited or dangerous materials.
Customs clearance also includes determining the value of duties and taxes due on goods based on their value and customs classification, collecting them, then releasing the goods and allowing them to enter or leave the country concerned. Therefore, it plays an important role in combating smuggling and illicit trade.
Importance of customs clearance
Customs clearance is a key element inInternational tradeThe local economy, whose importance is evident in several key aspects, most notably:
- International trade movement, accelerating the process of trade exchange between countries and improving the competitiveness of global markets.
- Increasing government revenue by collecting customs duties and taxes on imports, and then using these funds to develop infrastructure and public services.
- Preventing the entry of goods that violate the law or do not comply with national standards, thus protecting local businesses from unfair competition and counterfeit or substandard products.
- Ensuring the safety of imports and that they do not pose a threat to public health or national security, in order to preserve the safety of society.
- Reducing smuggling and illegal commercial activities, thereby enhancing economic and security stability.
- Providing a structured legal framework for completing import and export operations, thereby reducing administrative complexities and facilitating companies to conduct their activities efficiently.
- Providing accurate data and statistics related to foreign trade helps the government to make informed decisions.
The most important documents required to complete customs clearance procedures in Saudi Arabia
Both the trader and the importer must submit a set of documents to complete customs clearance procedures in Saudi Arabia, as follows:
Documents required from the merchant:
- The commercial invoice is the document that includes details of the sale and purchase, such as the names of the seller and buyer, a description of the goods, quantities, prices, and delivery terms.
- The package manifest is the document that details the contents of each parcel or package of shipment, including the number of parcels, their dimensions, weights, and identifying marks.
- Certificate of originIt is the document that proves the country of manufacture or production of goods, and is used to determine applicable customs duties and to take advantage of trade agreements between countries.
- The bill of lading, which is a contract of carriage between the shipper and the carrier, proves receipt and shipment of goods, and includes details of the shipment and destination.
- Certificates specific to the quality of goods, such as: fumigation certificate, health certificate, agricultural certificate, as well as the "CIQ" quality certificate for some goods imported from China.
Documents required to be submitted by the importer:
- commercial registerOr industrial, which is the official document that proves the registration of the establishment in the commercial or industrial register, and serves as a legal identity for the importing company or institution.
- A form issued by the bank through which the importer transferred funds to the supplier, showing the total amount transferred and the type of commercial contract.
- The import card is an official license that allows an establishment to import goods. It can be obtained from the competent government authorities and must be valid and consistent with the type of business activity of the importer.
- The tax card, which proves the establishment's registration with the tax authority and its commitment to paying taxes.TaxesThe due.
- The Customs Dealers Card is an official permit for the establishment to deal with the Customs Administration and facilitate the completion of its procedures.
- A general authorization for the customs broker, in the case of using a customs clearance agent, is the document that clearly and precisely defines the agent's powers..
Types of customs clearance activities
We can define the types of customs clearance activities that are permitted to be practiced in the Kingdom of Saudi Arabia as follows:
- Activities related to exports and imports.
- Postal parcel delivery activities.
- Transit transport activities.
- Ground transportation activities for air transit shipments.
- International land transport activities.
- Customs clearance activities for the commercial establishment.
- Clearance activities for the military, diplomatic and governmental sectors.
- Hazardous material disposal activities for approved facilities.
List of the most important customs clearance services in Saudi Arabia
Customs clearance services play a major role in facilitating international trade and the passage of goods through various customs ports, whether land, sea, or air. These services aim to ensure that imported and exported goods comply with the customs laws and regulations in force in the Kingdom, and to collect the due customs duties and taxes. The following is a summary of the most important customs clearance services in Saudi Arabia:
- To facilitate any complications that customers may face in clearing goods.
- Avoid any risks or incurring fines.
- To carry out all the necessary tasks for the company to complete the import operations.
- Customs clearance procedures for all types of goods permitted by law.
- Dealing with all relevant authorities and agencies involved in customs clearance.
It is worth noting that the Saudi Customs Authority has identified a list of goods exempt from customs duties, including: dairy products, artificial honey, starch, sinks and bathtubs, leather, wires and pipes.
Procedures for obtaining a customs clearance license
What do you know about the customs clearance requirements, whether for issuing or renewing a license? The draft regulations for practicing the customs clearance profession have defined these requirements as follows:
In the event of issuing a new license, it is required to submit an application through the Authority’s approved channels, with the necessity of appointing a relationship manager in accordance with the conditions stipulated in Article 4/A of the regulations, along with submitting a copy of his national identity. It is also required to have a valid commercial registration that includes customs clearance activity, with the exception of government agencies and diplomatic bodies, and to provide information about the establishment’s national address and available communication channels, and to pay the fees due according to the customs clearance services schedule.
In the case of renewing the customs clearance license, it is required to submit the renewal application through the Authority’s approved channels, pay the fees due according to the customs clearance services schedule, submit a valid commercial registration that includes the customs clearance activity, attach a valid social insurance subscription certificate for all employees with the license, settle all outstanding issues, including any previous undertakings, restrictions or obligations on the establishment, and it is also required to update the contact data of all employees of the establishment and update the approved national address.
Are there customs clearance fees in Saudi Arabia?
Customs clearance fees are defined as the costs related to completing the procedures for clearing goods through customs to facilitate their passage into the country concerned. These costs include the following:
- Customs duties.
- Service fees.
- Other taxes.
Saudi law has set the customs clearance fees, which range from 5% to 15% on most goods, and the percentage may reach 25% for some products.
Customs clearance and its role in facilitating international trade
Customs clearance plays a major role in facilitating international trade, as it primarily aims to ensure the smooth and efficient flow of goods across borders, which is required to achieve the smooth movement of exports and imports and reduce delays in their delivery.
On another level, customs clearance ensures that exporters and importers comply with customs laws and procedures, reduces violations and avoids penalties, and ensures that traded goods comply with international and local health and environmental standards through simplified and effective inspection procedures. This enhances the confidence of global companies in the Saudi market and encourages investment in it, thereby strengthening the national economy and increasing the volume of exports and imports between the Kingdom of Saudi Arabia and the rest of the world.
Furthermore, the adoption of modern technologies in the field of customs clearance in the Kingdom of Saudi Arabia, such as electronic document submission systems and shipment tracking, contributes to reducing the time periods and costs related to customs procedures, enhancing the speed of transaction completion and raising the efficiency of international trade transport.
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