Overview
Determining customs duties depends on precisely classifying goods within the applicable customs system, and an incorrect classification can result in a dispute with customs authorities over the duties actually owed.
Free trade agreements Saudi Arabia is party to affect duties applied to goods from certain countries, and importing companies need to review these agreements to determine whether they qualify for an exemption or reduction.
Regulatory Basis
These matters fall under the Unified Customs Law of the Gulf Cooperation Council countries and its implementing regulations, applied by the Zakat, Tax and Customs Authority in Saudi Arabia.
How We Handle Customs Matters
We carefully review the classification of imported or exported goods to correctly determine applicable duties, avoiding a later dispute with the customs authority over this classification.
If a dispute arises over classification or value, we represent the company in negotiating with the competent authority or in formal appeal procedures if needed.
Who Needs This Service
A company importing new goods that needs precise customs classification to determine applicable duties before shipping.
A company in a dispute with customs authorities over goods classification or customs value that needs representation in that dispute.
Companies importing through more than one customs port need a unified review of their goods classification, since we've seen cases where the same product gets classified slightly differently between ports due to individual judgment by the inspector responsible, a discrepancy worth documenting and unifying to avoid a future dispute over customs duty differences on similar shipments.
Additional Considerations
Customs obligations connect directly with a company's general tax position under our zakat and tax service.
For goods shipped by sea, this connects with our maritime and shipping legal services.
Common Questions
What happens if the customs authority disagrees with our classification of goods?
The classification can be appealed through available formal procedures, and we represent the company in this appeal while presenting the technical and regulatory basis for the correct classification.
Do all goods benefit from free trade agreements?
No, this depends on the specific country of origin and type of goods, and we review this to determine whether your goods qualify for an exemption or reduction in customs duties.