المملكة: Amendments to customs procedures controls… prohibiting the splitting of consignments and tampering with goods in transit

Customs ports, and enhancing control over the movement of goods, while granting more flexibility in completing customs clearance operations in accordance with risk management standards.

Additional documents for restricted goods

The amended controls obligated importers to attach all certificates and documents required by the competent government authorities when submitting the customs declaration, according to the nature of the imported goods, including security permits for the import of restricted goods, health certificates, and any other regulatory documents required by the authorities. Relevant.

The Authority confirmed that these provisions apply to all goods imported into the Kingdom, whether through customs ports, or while they are in situations where customs duties are suspended, including deposit areas, customs warehouses, special economic zones, special logistical zones, and duty-free shops, while granting the governor the power to exclude the submission of any of the stipulated documents whenever necessary.

Among the most prominent amendments is the Authority’s approval to accept “CN22” postal declaration forms. And “CN23” as customs declarations for regular postal shipments, provided that the packages are subject to examination and inspection in accordance with the risk standards approved by the Authority, which contributes to facilitating the procedures for processing postal shipments while maintaining customs control requirements.

Power to request additional documents before clearing

The controls gave the Authority the power to request additional documents before clearing the goods based on the results of the risk assessment, including the original purchase invoice, the complete series of invoices from the factory to the final importer, and contracts. The sale, payment documents approved by the banks, a copy of the bank letter of credit, and the non-tampering certificate, with the aim of verifying the authenticity of the data and customs value and preventing any attempts at fraud or evasion.

Electronic archiving of documents

The amendments required all documents to be archived electronically and preserved, while giving them the same legal authority as the original documents in proof, while excluding from this documents documents related to personal shipments transported through express transport companies.

The Authority approved Cancellation of customs declarations that have not completed the stages of completion, whether at the request of the customs declaration submitter or according to what the Authority deems appropriate, and the most prominent cases included in this include goods received with passengers that did not complete clearance procedures within the periods specified in the rules for selling by public auction.

Preventing the Splitting of Consignments

The new controls confirmed the impermissibility of splitting a single consignment received under a single bill of lading and owned by one owner, with the exception of goods imported or exported from suspended areas. Customs duties, in order to maintain the integrity of customs procedures and prevent misuse of systems.

The Authority obligated travelers to complete all customs procedures related to the goods and materials in their possession upon entry into the Kingdom, stressing that violation of these obligations requires the application of fines stipulated in the Unified Customs System and its executive regulations.

Inspect the goods before clearance

The controls have introduced a mechanism that allows the owner of the goods or Whoever is authorized to inspect the goods before submitting the customs declaration and take samples of them, in order to support speedy clearance and completion of clearance procedures.

The Authority required that a request be submitted before the arrival of the goods or no less than 24 hours after their arrival for air and land ports, while goods arriving through sea ports are subject to controls for prior submission of goods declarations.

The Authority obligated itself to respond to the request within two hours of its completion, and upon approval, a special import declaration is created. With the sample and payment of customs duties and any regulatory dues before clearing them.

Regulation of “transit” procedures

The controls witnessed extensive amendments to the procedures for transporting transit goods (“transit”), as it became necessary to submit a transport statement in transit, and to adhere to the routes and time periods determined by the authority to deliver the goods to the exit port.

The amendments prohibited stopping within cities without notifying the authority, or tampering with or damaging tracking devices, or Transferring goods to another means of transport or disposing of them without the approval and supervision of the Authority.

It obligated carriers to inform the Authority immediately upon breakdown of the means of transport, while adhering to the approved technical specifications for the means of transport, containers, and weights in accordance with the applicable rules and regulations.
The Authority obligated the archiving of documents for goods in transit before submitting the customs declaration, so that the bill of lading for goods arriving through air and sea ports is archived, and the customs declaration issued by the source country for goods arriving through land ports is archived, with The Authority reserves the right to request invoices or any additional documents whenever necessary.

Facilitations for the Authorized Economic Operator

The amendments allowed importers the possibility of submitting the customs declaration later and postponing the payment of customs duties for goods imported from the suspended areas, in accordance with a number of conditions, most notably the importer obtaining membership of the Authorized Economic Operator, completing the procedures through a reliable operator, authorizing the payment of value-added tax through the tax declaration, and submitting the customs declaration within thirty days, with Excluding selective goods from this advantage.

The controls stipulated that the establishment should not have any proven cases of evasion of zakat, taxes, or customs duties during the three years prior to submitting the application.

New organization of warehouse activities

The amendments included updating the rules governing warehouse areas, defining storage and handling activities as all operations necessary to preserve, load, unload, arrange, and sort goods in a way that preserves their nature without causing any change.

It regulated the practice of e-commerce within the warehouse areas, allowing the sale and marketing of stored goods and receiving requests to purchase them via digital platforms, in a step that enhances the integration of logistics services with e-commerce.

The controls allowed the entry of damaged goods from inside or outside the Kingdom into the warehouse areas for the purpose of maintenance, with customs duties being collected on the parts used for repair when the good goes out to the local market.

Value added operations

They included The amendments define simple assembly operations, which include collecting, installing, or coordinating components or packages into one commodity without changing its nature, basic characteristics, or customs item.

Mixing and merging operations are also defined as combining similar or close goods into one shipment without resulting in any change in the nature of the goods, their characteristics, or their customs classification.

Types of depository zone licenses

The controls stipulate two types of licences, the first of which is the depository zone licence, It includes storage and handling activities, value-added operations, e-commerce, maintenance, and simple assembly operations.

The second type is the deposit tank area license, which allows, in addition to the previous activities, the storage of liquid petroleum and petrochemical derivatives and bulk products, as well as mixing and consolidation activities.

Requirements for obtaining the license

The Authority obligated those wishing to obtain deposit area licenses to submit the application through approved electronic channels, with proof of ownership. The property or a rental contract whose duration is not less than the duration of the license, and obtaining the approval of the property owner to use it as a depository area.

The controls authorized the Authority to request a bank guarantee whose duration exceeds the duration of the license by a full year, and with a fixed value of one million riyals, in the event of violations of the rules or rules and regulations that the Authority supervises their implementation.

3 stages for obtaining an operating license

The rules made clear that granting a license to operate a depository area goes through three main stages, which begin with the Authority reviewing the application. Licensing and verifying that all regulatory requirements are met, and if completed, the facility is granted initial approval allowing it to complete the equipment and technical requirements necessary for operation.

In the event of deficiencies or non-fulfillment of any of the conditions or specifications, the Authority is obligated to notify the facility of the observations required to be addressed within the period specified in the notification. In the event of failure to make the required corrections or complete the requirements, the initial approval is canceled and the license application is rejected, explaining the reasons for the rejection and informing the applicant according to the approved mechanism.

Security requirements. And operational for the deposit areas

The rules obligated all deposit areas to be tightly controlled from all sides, with the establishment of gates subject to the Authority’s supervision in a manner commensurate with the nature of each area, in addition to providing sites equipped to carry out customs procedures and designated yards for carrying out inspection and clearing work in accordance with the requirements set by the Authority.

The Authority was authorized to require operators to equip warehouses in a way that prevents mixing of incoming shipments with outgoing shipments, and to establish independent warehouses for goods. The rules regulated the procedures for entering and removing goods from the warehouse areas, as they required the use of the form approved by the Authority for every entry or exit process, provided that it includes the data and identifying elements of the goods.

It stipulated that the Authority issue an independent procedural guide clarifying the mechanisms and requirements for entering and removing goods, which contributes to unifying procedures. And increasing the efficiency of customs operations within the deposit areas.

The Authority set the duration of storage of goods within the deposit areas at a maximum of five years starting from the date of issuance of the approved entry form, while granting the Authority the authority to reduce this period if the nature of the goods does not allow them to be stored for long periods.

The rules stipulated that dangerous or radioactive goods be subject to the periods specified in the relevant regulations, while allowing the extension of the storage period for a similar period whenever the concerned party submits a justified request and obtains the approval of the Authority.

Procedures Especially for restricted and dangerous goods

The rules allowed the entry of goods from outside the Kingdom into the warehouse areas or their removal for the purpose of export without the need for prior approvals from the competent authorities, with the exception of goods that are subject to special regulations or determined by the competent authorities.

On the other hand, they required obtaining prior approvals or permits when storing flammable goods, dangerous radioactive and chemical materials, weapons, ammunition and explosives, in addition to the goods required by the authorities. The competent authorities cleared them in advance.

It prohibited the removal of restricted goods from the warehouse areas and placed them for local consumption before obtaining the approvals of the competent authorities.

Regulation of value-added operations

The rules confirmed the permissibility of carrying out value-added operations within the warehouse areas, provided that they do not result in changing the customs clause of the goods, except in cases in which coordination is made with the competent authorities.

And they permitted the temporary storage of closed containers and barrels in preparation for return. Shipping them or loading them on ships, in a way that supports the efficiency of logistical operations in ports.

Controls on the consumption of materials within the deposit areas

The Authority organized the mechanism for consumption of materials and goods within the deposit areas, allowing the use of operational materials such as papers, inks, and fuel necessary to operate equipment and machinery, provided that an approved consumption model is created and reviewed by the Authority, ensuring that the quantities consumed are consistent with reality, with the payment of customs duties and taxes due whenever they are due.

The rules clarified that materials used in carrying out value-added operations are not subject to customs duties, while duties and taxes are collected on goods imported for the daily consumption of workers within the deposit areas, such as foodstuffs.

The amendments allowed the suspension of customs duties and taxes on equipment, machinery and means of operation that are brought into the deposit areas with the intention of operational use, with the possibility of re-exporting them in the same condition.

The amendments included special provisions for petroleum derivatives. And liquid petrochemicals, as it allowed their transfer between tanks within the licensed depository area, or from one ship to another at sea after the authority’s approval and coordination with the competent authorities, while obligating the operators to submit approved forms for the entry and exit of ships from the territorial waters of the Kingdom. The Authority during the supervisory tours, and submitting all required documents and data.

It required the removal of goods that were damaged or became unusable, and compliance with all rules, regulations, instructions and regulatory guides issued by the Authority regarding the management and operation of the warehouse areas.

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