Customs Valuation in Saudi Arabia
Saudi Arabia's customs valuation legislation is based on the GCC Common Customs Law, its Implementation Rules, and the World Trade Organization's Agreement on Customs Valuation (CVA).
Saudi Arabia's customs valuation legislation is based on the GCC Common Customs Law, its Implementation Rules, and the World Trade Organization's Agreement on Customs Valuation (CVA).
The key criterion for establishing customs value is the transaction value. CIF values are principally used as transaction values.
If the transaction value cannot be used, the CVA's methodologies are applied to determine the customs value as provided in Article 2 of the Rules of Implementation of the Common Customs Law.
Article 2 of the Rules of Implementation of the Common Customs Law states:
"Imported goods are valued according to the following basis:
1. The first basis for determining the value for customs purposes is the transaction value of the imported goods.
2. If the customs value cannot be determined according to the first basis above, it shall be determined by the sequential application of the following alternative methods:
(a) Transaction value of identical goods
(b) Transaction value of similar goods
(c) Deductive value
(d) Computed value."
The rules of customs valuation are published on the Zakat, Tax and Customs Authority (ZTCA) website https://www.customs.gov.sa/en/general/basisofvaluedetermination (in Arabic).
Generally, in practice, there is no minimum or reference pricing set for imports.
Under Article 61 of the law, importers have the right to appeal customs valuation decisions without penalty before the Customs Valuation Committee, which handles disputes between importers and ZTCA.
Article 61 of the Customs Law states:
"A valuation committee composed of officers from the administration shall be established by a resolution of the director-general to settle the disputes arising between the customs office and the persons concerned about the value of the imported goods. Such a committee may seek the assistance of experts at its discretion. Without prejudice to the importer’s right to appeal to court, the importer may appeal before the valuation committee against the decisions of increased value within fifteen days following the registration of the customs declaration or from the date of the valuation notice sent to him by registered mail. Decisions of this committee shall be taken by the majority and shall be effective once approved by the director-general. The importer shall be informed in writing of the decision taken by the committee concerning his complaint. Such a decision shall be reasonable."
Copyright © 2021 | Al Armouti Lawyers & Consultants. All Rights Reserved.Disclaimer: The information provided here is of a general nature and may not apply to any particular matter. It does not constitute legal advice nor presumed indefinitely up to date.
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