Saudi customs fines according to regulations and rules

Serious offenses are of the highest degree of danger, and include cases of deliberate smuggling or manipulation of official documents with the intention of evading fees, and are met with severe penalties that may reach the point of confiscating the goods in full and referring the offender to the competent judicial authorities.

The competent authorities enable individuals and establishments to inquire about customs violations registered against them through official electronic platforms, to learn about the details of the violations and the fines imposed. The service of inquiring about violations by ID number is one of the electronic mechanisms designed to facilitate access to information accurately and quickly, and to contribute to enabling violators to settle their legal status in an organized manner, and to enhance compliance with the provisions of customs and tax regulations, and to reduce the recurrence of violations in the future.

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A brief overview of the objectives and provisions of the new Saudi Customs Law

The new Saudi customs system represents the legal framework that governs customs work in the Kingdom, as it derives its provisions from the unified customs system of the Gulf Cooperation Council countries, as follows:

1. The primary objective of this system is to enhance control over ports and ensure compliance with laws, thereby protecting the national economy and preventing customs evasion.
2. A clear legal framework was established for the movement of goods through ports, to reduce delays and obstacles that may hinder import and export operations.
3. Specifying penalties and fines for violators in cases of customs evasion, submission of forged data or documents, and failure to comply with legal procedures.
4. Organizing customs procedures for importers and exporters by simplifying processes, to protect the rights of traders and reduce disputes.
5. A clear framework was established for the entry and exit of goods through ports, and responsibilities and obligations were defined to ensure compliance, with fines imposed on violators.

Therefore, this system is a strategic step in the development of the customs system in line with the Kingdom’s Vision 2030, as it contributes to improving the trade environment and enhancing transparency, while making Saudi customs fines an effective tool to ensure compliance with the law.

Types of Saudi Customs fines

Saudi customs fines can be classified according to the nature of the violation committed into several types, all of which achieve the basic goal of complying with the provisions of relevant laws and regulations:

Fines and penalties for customs evasion

These fines apply to anyone who is proven to have brought goods into or taken out of the Kingdom in a manner that violates the legally established customs procedures.

Article 142 of the Unified Customs Law and subsequent articles stipulate a number of penalties, including:

1. The financial penalty, which can reach three times the value of the customs duties due on the goods subject to the violation, may be imposed along with the fine in severe cases.
2. Confiscation of smuggled goods, whether they are prohibited goods or goods subject to unpaid customs duties.
3. Closure of the establishment or business activity in the event of proven serious or repeated violations.
4. Imprisonment for organized smuggling crimes.

Fines for falsifying customs documents and data

These fines are imposed on anyone who is proven to have submitted false data or documents, using this as a means to evade, reduce, or unjustly recover the customs duties due.

Customs regulations stipulate escalating penalties in this regard, starting with a financial fine equal to the value of the duties due, and in severe cases, it may reach three times the value of the goods or services subject to evasion, in addition to the possibility of imposing a prison sentence in some cases.

Penalties for late filing of customs declarations

These fines are applied to anyone who violates the obligation to submit customs declarations within the legally specified periods, whether an individual or an establishment. The financial penalty in this regard is graduated according to a percentage of the customs duties due, with the fine ranging between 5% and 25% of their value, in order to achieve a balance between deterring the violator and taking into account the degree of seriousness of the delay.

Penalties for late payment of customs duties due

These fines are applied to anyone who proves to have failed – whether an individual or an establishment – to pay the customs duties due within the legally prescribed period. The penalty in this type of violation takes on a cumulative character in proportion to the period of delay, where a financial penalty of 5% of the value of the unpaid duties is calculated for each month or part thereof in which the claim is delayed beyond its due date.

Fines for not retaining customs documents

These fines are applied to anyone who is proven to have failed – whether an individual or an establishment – to keep the accounting documents, books, and records for the legally prescribed period. This violation is considered a serious procedural violation, as it affects the ability of the competent authorities to verify the validity of transactions. The financial penalty in this regard reaches 50,000 Saudi Riyals, depending on the assessment of the severity of the violation and the extent of its impact on the integrity of customs procedures.

Legally challenging Saudi customs fines

The unified customs system of the Gulf Cooperation Council (GCC) countries includes a provision guaranteeing the concerned party the right to object to decisions issued imposing fines, provided that the objection is submitted within thirty days from the date of being notified of the fine.

The competent primary customs committee is responsible for considering the objection initially, as it decides on the violation and assesses the resulting financial penalty. If the objector does not see that the primary committee’s decision has achieved justice for him, he may submit an appeal to the appellate customs committee, whose decision is final and binding.

Practical guidelines to avoid Saudi customs fines

It offers youAbdulaziz bin Yasser Al-Anzi Law FirmA set of legal guidelines to help you avoid Saudi customs fines:

1. Regularly review the customs system and its implementing regulations, and keep up with amendments to ensure you understand the rules and procedures related to fines and the classification of violations.
2. Submit all relevant documents accurately, and make sure they are correct beforehand to avoid fines resulting from errors or inaccurate information.
3. Not delaying the submission of documents, the disclosure of goods, or the completion of customs clearance procedures, as this is one of the main reasons for imposing fines.
4. Submit legally documented objections within the legal timeframe in the event of any fine being imposed, to ensure your rights are protected and reviewed.
5. Maintaining accurate records of goods and documents to facilitate legal defense in the event of any dispute.
6. Utilize clearing offices or legal advisors to ensure compliance with legal requirements and avoid unnecessary fines.

In conclusion, the new Saudi customs system has undergone significant updates introduced by the Zakat, Tax and Customs Authority, with the aim of striking a balance between facilitating trade and enhancing control at ports of entry. This has been achieved by focusing on digital transformation and adopting electronic platforms to complete customs procedures quickly and efficiently, and by promoting transparency through obligating importers to fully and accurately disclose their customs data.

Penalties for combating organized smuggling have also been tightened to be more deterrent, while granting importers and traders greater flexibility in submitting grievances within specific timeframes.

The new system also differed from its predecessor by increasing financial penalties, adopting modern technologies such as X-ray inspection devices and artificial intelligence to detect violations, as well as enhancing coordination between the concerned authorities, most notably customs and the public prosecution, to contribute to raising the efficiency of regulatory work and achieving compliance.

Under this new system, which tightens penalties and increases financial fines, it becomes necessary for every importer, exporter, or traveler to deal carefully and professionally with customs clearance procedures to avoid any violation that may lead to the imposition of Saudi customs fines.

To ensure the security of your customs transactions and protect your rights, we advise you to contact an office specializing in these systems such asAbdulaziz bin Yasser Al-Anzi Law FirmIt includes an experienced legal team that provides legal advice, manages appeals against fines, and helps you fully comply with the provisions of the new Saudi Customs Law.
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