Saudi Arabia: Bonded Zone Rules Issued

Saudi Arabia News developments

Saudi Arabia: Bonded Zone Rules Issued

Arabian Business, 27 January 2024: Saudi Arabia’s Zakat, Tax and Customs Authority has announced it has issued Bonded Zone Rules.

The rules aim to outline the statutory provisions for licensing of bonded zones and for practicing activities in these zones.

The rules specify the obligations of operators and Authority control and supervisory functions relating to the bonded zones.

In addition, they clarify the procedures for licensing activities in bonded zones and the conditions for applying for licences.

They clarify the requirements, specifications and obligations and the provisions related to the obligations of operators and the Authority’s powers in this area too.

Bonded zones are a special customs area. Importers, exporters and logistics companies in these areas can store goods and carry out logistic activities and operations with customs duties and taxes suspended until they are entered into the local market, sold or re-exported.

This gives these companies increased liquidity and management flexibility.

It also enables an environment that supports movement of goods to be created.

In addition, it provides increased flexibility of clearance, storage and re-exporting to different destinations.

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Tanya Jain