Logistics companies in Saudi Arabia have been given a major boost after rules surrounding Bonded Zones in the Kingdom were clarified by tax and customs authorities.
Zakat, Tax and Customs Authority (ZATCA) has issued Bonded Zones rules in the Kingdom.
Bonded zones are a special customs area which allows importers, exporters and logistics companies to store goods and carry out logistic activities and operations under suspension of customs duties and taxes until they are entered into the local market or re-exported.
Bonded zones in Saudi Arabia
This gives firms within bonded zones an increased liquidity and management flexibility, providing an environment supporting movement of goods, and increasing flexibility of clearance, storage and re-exporting to different destinations.
These rules aim to outline the statutory provisions for licensing of bonded zones and for practicing the activities within these zones.
In addition, the rules specify the obligations of operators and ZATCA control and supervisory functions pertaining to the bonded zones.
A social media video shared by ZATCA said: “Any goods entering the Kingdom by land, sea or air can be stored within KSA without paying duties or taxes if they are in Bonded Zones.
“Bonded Zones are specified locations around KSA where traders cn store and sort their goods, or easily collect and package them, or even get marketing samples from them.
“Duties and taxes are collected after these items are sold or the trader decides to sell them in the local market. Alternatively, re-export them without paying any duties or taxes”.
The new rules include clarifying the procedures for licensing and activities of the bonded zones, the conditions for applying for licenses, as well as the requirements, specifications and obligations, in addition to the provisions related to the obligations of operators and the powers of ZATCA in this regard.
In addition, bonded zones contribute to facilitating import and export procedures for shipments received in bonded zones and raising efficiency of trade exchange in order to promote the Kingdom’s position to become a global logistics hub.
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