CUSTOMS DUTIES

According to Royal Decree No. M/13 dated 10/5/1408 H., corresponding to 12/30/1987, and to the Saudi Council of Ministers order No. 86 dated 10/5/1408 H. (12/19/87) the following customs duties’ rates have been in effect since 13/5/1408 H. (corresponding to January 2, 1988):

• Most of the basic consumer products are duty free, e.g., sugar, rice, tea, unroasted coffee, cardamom, barley, corn, livestock and meat (fresh or frozen).
• Customs duties of 20% are imposed on some imported commodities for the purpose of protecting the national infant industries.
• Import duty on other items is 12% ad valorem on the c.i.f. (cost, insurance, and freight) value.
• A limited number of items are subject to customs duties calculated on the basis of metric weight or capacity, rather than ad valorem. However, the rates for these items are fairly low.
• Members of the Arab League who are signatories to the Agreement to Facilitate Trade and Exchange and to Organize Transit between the Arab League States are granted special concessions.
• Imports from the Arab states with which Saudi Arabia has bilateral trade agreements are entitled to further reductions of duty.

Royal Decree No. M/56 dated 19/10/1407 H., corresponding to June 15, 1987, has approved the international Brussels agreement of 14 June 1983 on the Harmonized Commodity Description and Coding System (HS). According to the Minister of Finance and National Economy Order No. 3/1805 dated 19/10/1410 H., corresponding to May 14, 1990, the Kingdom has been implementing the Harmonized System since 15/6/1411 H., corresponding to 1/1/1991. For details, contact the Customs Department

Saudi Arabia has been implementing the Brussels Harmonized Commodity Description and Coding System (H.S.) since 1991.

National industries receiving support

Products covered by customs duties of 20 percent

COMMERCIAL DOCUMENTS

The documents required for all commercial shipments to the Kingdom of Saudi Arabia are:

• commercial invoice
• certificate of origin
• a bill of lading (or airway bill)
• a steamship (or airline) company certificate
• an insurance certificate (if goods are insured by the exporter)
• packing list

Additional documents may be required, depending on the type of goods being shipped, on certain requests from the Saudi importer or in the letter of credit (L/C), or according to a contract. The exporter is responsible for authenticating the certificate of origin, the commercial invoice, and any special documents. The documents must be certified in the following order: 1. Notarized by a Notary Public and certified by a local Exporting country Chamber of Commerce. 2. Certified by the Exporting country-Saudi Arabian Business Council. 3. Legalized by the Saudi Embassy or any Saudi Consulate in the Exporting country All shipments must contain two basic documents — the Certificate of Origin and the Commercial Invoice — and any other related documents required by the L/C to be certified and legalized. Each document should be prepared in (at least) an original and one copy. All documents (original or copies) should bear the handwritten signature of the person issuing the document. Facsimile signatures are not accepted. In addition, two copies of the Export Information Sheet (EIS) must be filled out, signed by an official of the exporting/shipping company and submitted with the other required shipping documents. Description of Shipping Documents

Commercial Invoice:

All commercial invoices must be on the exporting company’s letterhead. The invoice should contain the names and addresses of the consignor and the consignee, and must accurately describe goods and components (including the six-digit Harmonized System number), trademarks, name of the vessel (or airline) and the date of sailing, port of loading and port of discharge, net and gross weight, quantity, unit price and extended price of each type of goods, total value of the shipment, contents of each package and container, currency, L/C number (if applicable) and freight and insurance. As of May 18, 1996, Saudi customs authorities have emphasized that commercial invoices issued by exporters should contain an accurate description the goods being exported to the Kingdom. It should include: For equipment:

• line, number, and size of exported item
• model number
• trademarks
• manufacturer’s complete name
• any other information helpful in identifying the exported equipment

For other exported products:

• complete material description including type, size, weight, and percentage of its components if possible
• complete name(s) of manufacturer(s) or producer(s)
• trademarks
• any other information pertaining to the type of the exported item

Commercial invoices should contain a notarized statement, signed by a responsible official of the exporting firm, saying: “I certify this invoice to be true and correct and in accordance with our books, also that the goods referred to are of ****** origin.”

Certificate of Origin:

The certificate of origin must be issued by the manufacturer (or the exporting firm), and must include the name of the vessel (airline) and the date of sailing, name(s), nationality(ies), and full street address(es) of the manufacturer(s) of all items to be shipped to Saudi Arabia. Furthermore, the origin of each item or component must be specified. In addition, a signed statement to the effect that the document is true and correct must be given. If the merchandise is not solely and exclusively a product of the exprting country, a notarized “Appended Declaration to Certificate of Origin”   must be attached to the certificate of origin. In addition, the certificate of origin must include the name and address of the Saudi importer, a description of the goods, and the address of the shipping company.

The Bill of Lading (or Airway bill):

One nonnegotiable copy of the bill of lading is to be presented to a Saudi Arabian Consulate. The bill of lading should agree with the commercial invoice and show description, value, net and gross weight of shipped goods, volume and measurement, marks, number of packages, name and address of the consignee (Saudi importer) and consignor, name and address of shipping company and/or shipping agent, name of vessel and date of sailing, port of loading and port of discharge. Marks and numbers should agree with those on the invoice and containers.

Steamship Certificate:

This certificate (which is an Appended Declaration to Bill of Lading or airway bill) should be issued by the steamship (or airlines) company in at least one original. It must be notarized and contain the following information about the vessel (or plane), named in the Bill of Lading or the airline company certificate:

• name of vessel (plane), and previous name (if applicable)
• nationality of vessel (plane)
• owner of vessel (plane)
• names of ports (airports) that the vessel (plane) will call on en route to the Kingdom of Saudi Arabia, including port (airport) of loading and port (airport) of discharge.

Further, the steamship (airlines) company certificate should declare that the vessel (plane) shall not anchor or call on any other ports (airports) than those mentioned in it, and that all information provided in the certificate is true and correct. The standard form of “Appended Declaration to the Bill of Lading” (or airway bill) is available from the Saudi Consulates.   Insurance Certificate:This certificate (issued by an insurance company in at least one original) must contain the actual amount of insurance, description and value of insured goods, name of vessel, port of loading and Saudi port of discharge, and name and address of beneficiary. In addition, the “Appended Declaration to Insurance Policy” (available from the Saudi Consulates) should state that the insurance company has a duly qualified and appointed agent or representative in the Kingdom of Saudi Arabia, giving his name and full address. If the shipment is How to Check Vehicle Insurance Validity Online, the exporter, on their letterhead, must state the name and address of that company.   Packing List:This includes names and addresses of consignor and consignee, description and value of the exported goods, net and total weight, number of packages and their contents, number of containers and contents, numbers of seals, and L/C number (if applicable).

SPECIAL DOCUMENTS

Depending on the nature of exported goods to Saudi Arabia, or according to a request from the Saudi importer, certain documents may also be required. Special certificates or documents also need to be authenticated according to the procedure for authentication of shipping documents described above.

Food Products Export Documents:

Requirements for labeling food and food products sold in the Kingdom of Saudi Arabia are determined by the Saudi Arabian Standards Organization (SASO). Exporters of these products should comply (among other SASO standards) with Mandatory Standards SSA 1/1984, whether for sample demonstration or for commercial shipments, and must provide the following certificates:

1. Food Manufacturer’s Ingredients Certificate:Food Manufacturer’s Ingredients Certificate: 

This certificate should include a description of the exported food products (contents and percentage of each ingredient), chemical data, microbiological standards, storage, and life of product (date of manufacture and date of expiration). When products contain any animal fats, the certificate must confirm the kind of animal from which it is taken, or state that no pork meat or its artificial flavor nor its animal fat is being used. This certificate must be obtained from a local health department and must be signed.

2. Consumer Protection Certificate:Consumer Protection Certificate: 

This certificate confirms the healthiness of the various ingredients of the exported food products to Saudi Arabia, and their safety and fitness for human consumption. The certificate must be obtained from an office of the Exporting country Department of Agriculture and must be signed.

3. Price List:Price List:

The price list should be issued by the exporter on his letterhead, and should indicate that the prices of the exported products to the Kingdom of Saudi Arabia are the standard local market prices.

Importation of Meat:

In addition to the general shipping documents all meat shipments must be accompanied by the following certificates:

1. A certificate of “Halal” meat: 

This certificate indicates that slaughtering has taken place in an officially licensed slaughterhouse according to Islamic procedures. The “Halal” meat certificate should be legalized by a recognized Islamic Center in the United States. It must also accompany shipments of poultry into Saudi Arabia.

2. An Official Health Certificate: 

This certificate should indicate the date of slaughter, kind of animal and average age, in each shipment. The health certificate must also indicate that animals were examined within twelve hours before being slaughtered, and directly after, by a licensed veterinarian, and were found free from disease and suitable for human consumption.

The Health Certificate is required for all exports to Saudi Arabia of all kinds of meats, (including poultry and seafood), meat products, livestock, vegetables, fruits, and human blood, attesting to the fact that they are free from pests and/or disease.

Importation of Seeds and Grains into Saudi Arabia: In addition to the general shipping documents, the exporter of seeds or grains must provide the following authenticated certificates:

1. Certificate of Inspection: The certificate must be issued by a company specializing in seed inspection, and include:

• Name and address of buyer
• Name and address of seller
• Kind and amount
• Seed class
• Name of shipping vessel
• Type of packing
• The written information on sacks, bags and each package
• Results of inspection and percentage of germination, purity, impurity, and moisture
• Method of chemical treatment of the seeds
• Confirmation that the seeds are free from insects, epidemics, diseases and weed seeds (their number and species in a sample of two kilograms must be mentioned).

2. Phytosanitary Certificate:Phytosanitary Certificate: 

The purpose of this certificate is to verify that the seeds or grains to be exported to the Kingdom of Saudi Arabia are free from agricultural diseases. It can be obtained from the Exporting country Department of Agriculture. This certificate is required to accompany all shipments of flour, rice, grains, agricultural seeds, lumber, plants, and plant material.

3. Seed Analysis Certificate:Seed Analysis Certificate: 

This certificate is to prove the degree of purity of the seeds shipped to Saudi Arabia. It is issued by the Exporting country Department of Agriculture.

4. Certificate of Weight:Certificate of Weight: 

This certificate is issued by the exporting company and indicates the name and address of the Saudi importer, name of the shipping vessel, number of the bill of lading, number of seals and containers, and net and total weight of shipment.

Animal Fodder Additive:

In addition to the general shipping documents, the shipment must include:

• Certificate of Free Sale
• Product Registration Certificate
• Certificate of Analysis
• Product Safety Data Sheet

Shipment of Livestock to the Kingdom

In addition to the general shipping documents, the shipment must include:

• Certificate of Weight, showing the average weight of the exported livestock
• Health Certificate, from the exporting country Department of Agriculture verifying that the livestock are free from disease
• Health Certificate, issued by a veterinarian
• Pedigree Certificate, issued by the exporting country Department of Agriculture
• Production records
• Declaration of Inspection and Acceptance

Certificates regarding the shipment of pets:

• Health Certificate issued by a veterinarian and approved by the exporting country   Department of Agriculture confirming that the animals are free from diseases
• Animal Vaccination Certificate

Only guard, hunting, and seeing-eye dogs are allowed into Saudi Arabia.

Importation of Horses 

Only Saudis are allowed to import horses into the Kingdom. The importer should submit an application to the President of the Saudi Equestrian Club indicating the number of horses, exporting country, and customs center at the port of entry to the Kingdom. The application should be accompanied by the following documents:

• A Certificate of Origin, issued by the company raising and breeding the horses, with a color picture of each horse affixed to it. The certificate must be authorized by the exporting country Department of Agriculture, the exporting country Department of State, and approved by a Saudi Arabian Consulate.
• A Health Certificate, confirming that the horses are free from diseases, approved by a veterinarian and authenticated as above.

Vegetable and Fruit Health Certificate

This certificate must accompany all shipments of vegetables and fruits to the Kingdom certifying that such exports are free from pests, insects, and other agricultural diseases, and that they have not been exposed to ionizing radiation (but can be treated with aluminum phosphide). This certificate can be obtained from the Exporting country Department of Agriculture.

SASO Certificates of Conformity for Imported Electrical Appliances, Equipment, and Accessories

There are two types of certificates:

• Certificate of Conformity for electrical appliances and equipment
• Certificate of Conformity for electrical accessories

The relevant certificate (the standard form is available from the Saudi Consulate) must be issued by the manufacturer on their official letterhead, notarized by a notary public, certified by a local chamber of commerce, and then sent to the Saudi Arabian Standards Organization (SASO) in Riyadh, Saudi Arabia at least two months before shipment date, to be verified. Upon approval, the certificate will be returned to the manufacturing company which must attach a stamped copy with each shipment to Saudi Arabia of the particular commodity. These certificates are only required for electrical products regulated by SASO. (See List of Products Regulated under ICCP.)

Importation of Motor Vehicles

At least three months before dispatching the first consignment of any type of motor vehicles in any year, the manufacturer must send to SASO a Motor Vehicles Conformity Certificate in English or Arabic for its approval. Individuals must obtain this certificate from the manufacturer prior to the shipment of any car for their personal use in the Kingdom.

Importation of Medicines and Pharmaceuticals

A Certificate of Free Sale should accompany all shipments of pharmaceutical and medicinal products to Saudi Arabia. It can be obtained from the Exporting country Department of Health and Human Services and should be presented to a Saudi Arabian Consulate with other documents. In addition, imports of pharmaceuticals and medicinal products require a certificate issued by the Exporting country Department of Health and Human Services stating that the medicines are actually used by the public in the Exporting country under the same trade name and formula and must include the name of each product, the formula, and the date and number of the permit to manufacture them if one is required. The certificate must be certified by the Authentication Office of the Department of State in Washington, D.C. and be authenticated by a Saudi Arabian Consulate. No medicine or pharmaceutical products are admitted into the Kingdom unless a prior registration is made with the Ministry of Health. The Ministry examines the applications supported by the required certificates legalized by a Saudi Consulate in the Exporting country, and analyzes the samples to ensure that they conform to the specifications before granting a license. For further information, contact the Ministry of Health, Department of Registration of Medicines and Pharmaceuticals. Other Requirements

• Imports of plants, fruits, vegetables, seeds, live animals and poultry must have the prior approval of the appropriate Saudi Arabian authorities and must be accompanied by a phytosanitary/health certificate stating that they are free from pests and other diseases. All shipments of plants will be inspected upon arrival in Saudi Arabia.
• According to Royal Decree No. 5/E/27748 dated 24/11/1402 H. the country of origin must be mentioned on all products imported into Saudi Arabia, except when it is unfeasible.
• Carpet manufacturers and suppliers must indicate in Arabic the thickness or weight of each square meter, type, pile weight, and country of origin, to be applied on each 5 meters along the carpet roll length. All carpet manufacturers, suppliers and distributors have to show the captioned data on the sales invoice.
• Shaving brushes and other articles made of raw hair should be accompanied by a recognized official certificate showing that the consignment is free from anthrax germs.
• Importing used clothing requires an official disinfection certificate. These goods will be subject to inspection by the Saudi Arabian quarantine officials.
• Saudi law strictly forbids the importation, sale and use of liquor, narcotics, and firearms. Arms for hunting and similar sports arms need special permission.
• Books and publications are subject to inspection and approval by customs for entry. In particular, obscene literature and pornographic materials are not allowed.
• Medical drugs for personal use in small quantities are allowed. Travelers should be ready to show the doctor’s prescription to identify the drugs and prove that the medicine is for personal use.
• Non-commercial shipments of less than 10,000 Saudi Riyals (about $2,600) and cars imported into the Kingdom for personal use, regardless of their value, do not require complete shipping documents.
• Commercial samples are subject to the payment of customs duty and surcharge either by a deposit equal to the duty at the time of import or by a bank guarantee. A refund is made if the goods are re-exported within 12 months. In case samples are sold, neither deposit nor guarantee will be refunded. Prior permission to import samples must be obtained from the Director General of Customs, Customs Department, who should be furnished with lists of samples, prices and catalogues. A non-refundable duty of 12 percent is levied for imports of samples of jewelry and watches. Authenticated shipping documents are required for all shipments of commercial samples.

Arrangement of Shipping Documents Shipping documents must be presented to the Saudi Arabian Consulate in the following order, stapled together:

1. Commercial Invoice
2. Certificate of Origin
3. Insurance Certificate
4. Bill of Lading (or airway bill)
5. Steamship Certificate
6. Packing List
7. Special Documents

The Export Information Sheet should accompany these documents but should not be stapled together with them.

COMMERCIAL LEGAL DOCUMENTS

Legal Documents include:

• Power of Attorney
• Agency Agreements
• Sole Distributorship
• Trade Marks Registration
• Certificates of Free Sale
• Bid or Tender Documents
• Registration of Partnerships, Corporations, or Joint Ventures

All companies’ documents must be legalized as follows:

• Notarized by a Notary Public
• Certified by the County Clerk of the respective county where the Notary Public is commissioned
• Certified under the seal of the Office of the Secretary of the state where the documents originated
• Authenticated by the Exporting country Department of State, Authentication Division (518 23^rd Street, N.W., State Annex 1, Washington, D.C. 20520; Phone: (202) 647-5002 or 1-800-688-9889, option (6)
• Legalized by a Saudi Consulate

SAUDI ARABIAN IMPORT STANDARDS

In November 1995, the Saudi Ministry of Commerce implemented the International Conformity Certification Program (ICCP), in coordination with the Saudi Arabian Standards Organization (SASO). SASO relies primarily on international standards when issuing Saudi specifications, and SASO specification conformity is applied to all products, both locally produced and imported, to provide the necessary consumer protection. All of the approved SASO procedures, including the ICCP program, work within the guidelines of the International Standards Organization. The SASO ICCP requires a Certificate of Conformity for every shipment of SASO-regulated products destined for the Kingdom. Before a Certificate of Conformity can be issued, each shipment must provide evidence of conformity to SASO requirements. Shipments arriving without a Certificate of Conformity will be rejected at the Saudi port of entry. SASO has appointed Country Offices in locations throughout the world that perform a conformity verification on each shipment prior to its leaving its port of export. In addition, SASO has authorized Regional Licensing Centers to administer the registration process, carry out verification of conformity, and issue SASO Type Approval Licenses. In some cases, random sampling of the products and testing will also be required by the SASO Country Office. The procedures for obtaining a Certificate of Conformity are as follows:

• The exporter submits a written request to the appropriate SASO Country Office for inspection and testing of the products requiring a Certificate of Conformity, together with full details of the consignment.
• The Country Office completes the necessary steps appropriate to the product in order to meet SASO requirements. These steps will depend upon existing product certifications and whether the product is covered by a valid registration. If the products are registered, the Country Office will set up an inspection plan which may or may not require products to be sampled for testing.
• If the products are not registered, they will be sampled and tested according to SASO requirements. Assuming the testing and/or inspection produces satisfactory compliance results, a Certificate of Conformity is issued. The Certificate of Conformity should accompany the shipping documents.
• If the products do not meet the SASO requirements, the exporter will be given a complete explanation of the deficiency. If acceptable corrective action is not taken, no Certificate of Conformity will be issued and the Ministry of Commerce, SASO representatives, and the importer will be advised accordingly.
• When the shipment arrives at the Saudi Arabian port of entry, the Ministry of Commerce and SASO technical staff will request the accompanying Certificate of Conformity. Each Certificate of Conformity will be checked for authenticity and matching details. After satisfactory checks, SASO will issue a letter of release.

SASO Country Program Offices in the Exporting country:

Intertek Testing Services 3741 Red Bluff Road Pasadena, Texas 77503 Tel.: 713-475-9184 Fax: 713-475-2083

Regional Licensing Center, North/Central/South America:

70 Codman Hill Road
Boxborough, MA 01719
Toll Free: 1-800-441-7276
Tel.: 978-635-8651/978-635-8652/978- 635-8653
Fax: 978- 635-1620

LIST OF PRODUCTS REGULATED UNDER ICCPGROUP I – Toys

GROUP II – Electronics and Electrical Products

GROUP III – Automotive Products

GROUP IV – Chemical Products

GROUP V – Others

Additional information is available through the Internet at http://www.iccp.com or http://www.saso.org.

DOMESTIC EXPORT INCENTIVES

Saudi Arabia has entered several commercial agreements for removing or reducing barriers to exports, including:

• The unified GCC economic agreement
• Bilateral trade agreements with the following Arab countries:
  • Hashemite Kingdom of Jordan
  • Republic of Tunisia
  • Kingdom of Morocco
  • Republic of Lebanon
  • Republic of Syria
  • Republic of Yemen
  • People’s Democratic Republic of Algeria
  • Arab Republic of Egypt
• The agreement for the facilitation and development of trade exchanges between the Arab countries, and participation in negotiations for the free trade of specified goods produced in the Arab world.

The government has also participated in regional and international programs to finance and insure exports, notably in the long-term trade finance programs of the Islamic Development Bank, the program of the Arab system for insurance of exports licensed by the Arab Investments Guarantee Corporation, and the portfolio of the Islamic Banks run by the Islamic Development Bank. In addition, it provides the following incentives:

• Reducing port fees by 50 percent on all exports of the national industries.
• Exempting exported goods from storage fees for ten days after they enter the customs area.
• Allowing Saudi Arabian Airlines to offer favorable prices for transporting agricultural and industrial products.