A complete guide to Saudi customs duties for goods

Saudi Customs Duties for Goods: The Kingdom of Saudi Arabia is one of the largest markets in the Middle East, attracting thousands of importers and exporters annually thanks to its strategic location and strong economy. With the increasing volume of imports and exports, understanding Saudi customs duties has become essential for any trader, importer, or individual wishing to import goods from abroad.

Saudi customs regulations were established by the Zakat, Tax and Customs Authority to regulate the movement of goods, protect the local market from unfair practices, and ensure compliance with regulations. Customs duties vary depending on the type of imported goods, whether they are foodstuffs, electronics, cars, or other items.

This comprehensive guide will cover everything you need to know about customs duties in Saudi Arabia, including how they are calculated, the main customs categories, the documents required for customs clearance, and the regulations that importers must adhere to. This guide is provided by Abdullah Shaheen Customs Clearance Company, a leading customs clearance company in Saudi ports.

What are the Saudi customs duties for goods?

Customs duties are monetary charges levied on imported goods upon entry into the Kingdom. These duties are calculated as a percentage of the goods’ value (CIF value, which includes the original price of the goods plus shipping and insurance costs).

These fees are intended to:

• Protecting national industries from unfair competition.
• Regulating the entry of products and ensuring their compliance with Saudi specifications.
• To provide an additional source of income for the state treasury.
  

Factors affecting customs duties

The value of Saudi customs duties for imported personal goods varies according to several key factors:

1. Type of goods: Each category of products has a specific percentage in the customs tariff.
2. Country of origin: In some trade agreements, tariffs on goods from certain countries are reduced or eliminated.
3. Customs classification: According to the International Harmonised System (HS Code).
4. The declared value: This includes the price of the goods plus shipping and insurance costs until they reach the Saudi port.
5. Saudi Standard Specifications: Some goods may be rejected if they do not conform, even if the fees have been paid.
   

The most important customs categories for goods in Saudi Arabia

1. Foodstuffs

• Most food items are subject to customs duties ranging from 5% to 15% depending on the type of product.
• Some basic commodities such as rice and wheat may be exempt from customs duties to encourage imports.
• Meat and poultry have specific ratios, with the requirement of obtaining approved health and halal certificates.
  

2. Electronic devices

• Smartphones and computers often have a 5% fee.
• Household electrical appliances such as washing machines and refrigerators have fees ranging between 5% and 15%.
• It must be ensured that the devices conform to the standards of the Saudi Standards, Metrology and Quality Organization (SASO).
  

3. Cars and vehicles

• Customs duties on new cars are usually 5% of the car’s value.
• Used cars have special conditions, such as not being older than 5 years.
• In addition to customs duties, a 15% value-added tax is calculated.
  

4. Clothing and Textiles

• Ready-made clothes are subject to customs duties of up to 15%.
• Raw fabrics and textiles may be present in a lower percentage depending on their nature.
  

5. Medicines and medical supplies

• Most medicines are exempt from customs duties, but approvals from the Saudi Food and Drug Authority are required.
• Medical devices may be subject to fees ranging from 5% to 12%.
  

How to calculate customs duties

The fees are calculated based on the total value of the goods (CIF).

Basic equation:
Customs duties = (value of goods + shipping cost + insurance) × customs duty rate

Then, a 15% value-added tax is added to the final total.

Illustrative example:

• If you import goods worth 10,000 SAR.
• Shipping cost is 2,000 SAR.
• Insurance costs 500 SAR.
• Customs duties are 5%.
  

The CIF value = 10,000 + 2,000 + 500 = 12,500 SAR.
Customs fees = 12,500 x 5% = 625 SAR.
Total after fees = 12,500 + 625 = 13,125 SAR.
Value Added Tax = 13,125 x 15% = 1,968 SAR
Grand Total = 15,093 SAR.

Documents required for customs clearance in Saudi Arabia

In order for the importer to complete the customs clearance process and pay customs duties, the following documents must be provided:

1. A commercial invoice showing the value of the goods.
2. The certificate of origin is certified by the Chamber of Commerce in the exporting country.
3. A bill of lading that details the transport.
4. A packing list showing the contents of each package.
5. Therefore, clearance is granted by the competent authorities for certain special goods such as medicines or food.
6. Tax card and commercial registration for the importer.
   

The role of Abdullah Shaheen Customs Clearance Company

Customs clearance is a somewhat complex process, especially given the varying regulations from one port to another. This is where Abdullah Shaheen Customs Clearance Company comes in, offering:

• Accurate calculation of the value of Saudi customs duties for goods.
• Follow up on clearance procedures at Jeddah Islamic Port, King Abdulaziz Port in Dammam, and international airports.
• Ensuring that goods conform to Saudi specifications to avoid fines or shipment rejections.
• Providing advice to new importers on the best ways to reduce customs clearance costs.
  

Customs fines and violations

Failure to pay customs duties or attempting to manipulate invoices may result in:

• Financial penalties of up to double the value of the fees.
• Confiscating the goods.
• The importer was prevented from importing in the future.
• Legal prosecution in some cases.
  

Tips to reduce customs costs and fees

1. Verify the correct customs classification of the goods (HS Code).
2. Taking advantage of trade agreements that exempt certain goods.
3. Choosing certified shipping companies to minimize risks.
4. Relying on experienced customs clearance offices such as Abdullah Shaheen Company.
5. Shipping appropriate quantities to minimize the cost per unit.

Frequently asked questions about customs fees in Saudi Arabia

Do customs fees differ between Saudi ports?

Customs fees are standardized, but some ports may be faster in clearance.

Do individuals pay the same Saudi customs fees for personal goods?

Personal goods in limited quantities may be exempt from duties, but if they exceed the allowed limit, they are treated as commercial goods.

Can customs fees be refunded?

Fees cannot be refunded after payment except in rare cases such as the rejection of goods due to an administrative error.

Conclusion

Understanding the details of customs fees in Saudi Arabia is crucial for anyone wishing to import or export. It’s not simply a matter of paying fees; it includes regulatory and legal obligations that must be met to ensure the smooth and legal entry of goods.

Because customs procedures can be complex, especially for new importers, hiring a specialized company like Abdullah Shaheen Customs Clearance is the best option to save time, reduce costs, and ensure your goods arrive safely in the Saudi market.

Follow Abdullah Shaheen Customs Clearance Company on Instagram to learn about the latest customs regulations, import and export tips, and our smart solutions to expedite the clearance of your goods.