Everything that is shipped internationally must pass the customs clearance process. Once the cargo arrives at the port of origin, it is crucial to secure its export clearance. Similarly, as soon as freight reaches its destination country, import clearance is required.
What is Customs Clearance?
Before delving into the nitty-gritty aspects of customs clearance, let’s first know what customs clearance is. Customs clearance is the procedure that needs to be done for all imports and exports across borders. To simplify this complex process, an experienced and authorized customs broker is hired who is responsible for clearing the necessary payments and completing the documentation process during imports and exports.
Why Is The Customs Clearance Process Important For Businesses In Saudi Arabia?
Are you aware that customs clearance significantly impacts expanding your business worldwide and taking it to new heights? Customs clearance plays a big role in smoothly running your imports and exports business and earning massive profits. It prevents any violation of international trade, non-tax criminal activities, and import/export of unauthorized products. In short, the customs clearance process gives you all the benefits of risk-free import and export of your goods.
Saudi Arabia Country Profile
Saudi Arabia, officially known as the Kingdom of Saudi Arabia, is situated in West Asia and comprises a Muslim population in majority. Bordered by Jordan, Iraq, the UAE, and Qatar, it is the only country with both a Red Sea and a Persian Gulf coast. (source: Wikipedia). Its geographical competitive advantage, accessibility to major emerging markets and marine passages, and connection to Asia, Europe, and Africa will help Saudi Arabia diversify its economy, enabling it to become a leading regional logistics hub.
With Vision 2030, Saudi Arabia is on a mission to grow its investment primarily through the transportation and logistics sector and transform the kingdom into a regional logistics hub. The KSA government is committed to raising its global ranking in the logistics sector by;
- Reducing time, cost, and variability of importing goods through automation
- Improving the reliability of the clearance process
- Integrating advanced technology in enhancing security and control over import and export
- Developing a tracking system for the status of shipment.
- Establishing a Special Economic Zone (SEZ) in Riyadh that will support growth in the road freight sector.
Essential Tasks to be Done Before Customs Clearance Process
Custom clearance in Saudi Arabia is obligatory every time a cargo leaves a country and reaches its destination. It is equally important to take care of all the rules and regulations a country imposes on the nature of the freight. Before a shipment departs from its origin, it must complete the essential tasks listed below. These are explained below.
- Make sure you have hired an authorized Customs Broker who can assist you with all the documentation and payments.
- You have checked the compliance of your goods to be shipped to see whether they are acceptable in the country of destination or not, and there are no restrictions in that specific country.
- Shippers must gather all the necessary details about everyone in the supply chain process, from suppliers to customers, and ensure that the government has not imposed any restrictions or suspended their operations due to any violation.
Requirements in Custom Clearance Process for Saudi Importers
Saudi Arabia is one of the largest markets in the Gulf region, with high purchasing power and demand for various products that are not readily available in the country. Also, the Saudi government has defined certain standards for controlling imported commodities to protect against fraud and non-compliant products. Thus, a smooth and transparent customs clearance process is important for Saudi importers to import all those products. Below are the key points necessary to be done during the process of import clearance.
- Goods Inspection and Supervision
Goods inspection and supervision are done in person to ensure the imported products comply with the regulations of the Saudi market. Furthermore, labels, instructions, and warnings should be available in English as well as Arabic. Product packaging should not be done with ordinary stickers or in a non-removable form. Electronic products should also include a voltage frequency.
- Customs clearance documents
The Saudi government requires certain customs clearance documents for imported products. These include a Certificate of Origin, an invoice, a packaging list, a Bill of Lading, and some product-related certifications.
- Product-related Certification
Importers are required to complete product-related certifications for customs clearance. The Saudi government has mandated that all importers must complete all product-related certifications before their shipments arrive at any Saudi port. Since 2020, the SABER certification system has provided all the information about the products exported to Saudi Arabia.
- Customs Clearance Process
The customs clearance process for imported products is successfully completed when these imported goods are registered with the Saudi customs authority, compliance verification of these goods against the local market, and last but not least, its tariff calculation. If the importer has engaged a freight company, the freight forwarders can handle these duty payments on behalf of the importer, thereby expediting the clearance process.
General Guidelines in Customs Clearance Process for Saudi Exporters
When exporting products to other countries, you should be mindful of the general requirements for Saudi customs. Some of these are:
- An exporter should possess Commercial Registration (CR) enlisting commercial activities related to the products.
- The packaging of the exported products should label the country of origin in a non-removable form.
- Exporters must submit required shipping documents to the customs authority.
- The exporters shall authorize a licensed customs broker to facilitate them with export customs clearance procedures.
General Restrictions in Custom Clearance in Saudi Arabia
Saudi Arabia has quite strict policies regarding customs regulations and is considered to be one of the most challenging countries in the world for its complex customs clearance process. The KSA authority has recently implemented necessary measures and innovative practices to facilitate trade through 24-hour customs clearance as it reaches Saudi ports.
Get a Customs Broker in Saudi Arabia
Custom Broker facilitates the import and export procedures and ensures that your shipment complies with all the laws and regulations. They help you with all the required paperwork, duties, and payments. It would help if you always chose a freight forwarder and customs broker who is experienced, knowledgeable, and trustworthy to avoid delays and excess costs. Fast n Accurate is one of the top freight forwarding companies in Saudi Arabia that offers reliable customs clearance services for a smooth and seamless clearance and transportation of your cargo from KSA to all around the globe. We provide professional guidance and support to our clients in transporting their goods worldwide without any hassle.
- Customized services
- Document verification
- Stress-free paperwork
- Hassle-free clearance
- Regular updates on KSA government policy
- Professional consultation
- Analyzing and tracking the delivery of their goods
Being a trusted customs broker, we take full responsibility for the clearance process of your international freight so that you can focus on expanding your business across borders.
Key Considerations While Navigating Custom Clearance in Saudi Arabia
For a smooth transaction and transportation process of your goods and to avoid any unnecessary intimidation, it is essential to understand all the trade rules applied to your transactions. Stay mindful of the validity period to avoid unnecessary extensions and complications. Keep abreast of any policy upgrades and changes in regulations. Lastly, negotiate with shipping and freight forwarders companies; this will help you handle the customs clearance process effortlessly.
