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Doing Business in Saudi Arabia - International Franchise Association

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<strong>Saudi</strong> Customs requires a deposit for these goods (equivalent to the applicable tariff rate on the<br />

total value of the goods). This deposit is refundable when the exhibition is over and upon<br />

show<strong>in</strong>g a document that the owner of the equipment officially participated <strong>in</strong> a trade show.<br />

Reimbursement takes between two to four weeks. Additionally, the customs authorities will<br />

collect handl<strong>in</strong>g charges.<br />

Label<strong>in</strong>g and Mark<strong>in</strong>g Requirements Return to top<br />

Please refer to Standards sub-section below.<br />

Prohibited and Restricted Imports Return to top<br />

The importation of certa<strong>in</strong> articles is either prohibited or requires special approval from<br />

competent authorities. Import<strong>in</strong>g the follow<strong>in</strong>g products requires special approval by <strong>Saudi</strong><br />

authorities: agriculture seeds, live animals, books, periodicals, movies, and tapes; religious<br />

books and tapes; chemicals and harmful materials; pharmaceutical products; wireless<br />

equipment, and radio-controlled model airplanes; horses; products conta<strong>in</strong><strong>in</strong>g alcohol (e.g.,<br />

perfume); natural asphalt; and archaeological artifacts.<br />

There are health and sanitation regulations for all imported foods. For beef and poultry meat<br />

imported from the United States, <strong>Saudi</strong> <strong>Arabia</strong> has agreed to recognize a two-certificate<br />

approach: (1) an official FSIS export certificate issued for beef and poultry meat and (2) a<br />

producer or manufacturer self-certification to cover any additional requirements not related to<br />

food safety or animal health issues such as animal prote<strong>in</strong> free feed declaration. Moreover, the<br />

government has also agreed that any maximum residue requirements for synthetic hormones <strong>in</strong><br />

animal products would be consistent with <strong>in</strong>ternational standards. Companies can request a<br />

copy of the label<strong>in</strong>g requirements by contact<strong>in</strong>g SASO at Tel: (966 1) 452-0132 or Fax: (966 1)<br />

452-0196.<br />

<strong>Saudi</strong> law prohibits importation of the follow<strong>in</strong>g products: weapons, alcohol, narcotics, pork,<br />

pornographic materials, distillery equipment, used cloth<strong>in</strong>g and certa<strong>in</strong> sculptures.<br />

Customs Regulations and Contact Information Return to top<br />

The Department of Customs at the M<strong>in</strong>istry of F<strong>in</strong>ance appraises all merchandise mov<strong>in</strong>g<br />

through <strong>Saudi</strong> customs ports.<br />

Import valuation is primarily used for collection of import duties and often does not reflect the<br />

actual transaction value. <strong>Saudi</strong> customs valuation procedures are not WTO-consistent, nor are<br />

they based on <strong>in</strong>voice value. M<strong>in</strong>imum prices are used, and customs agents rely on their own<br />

experience and local prices, as well as some contact with manufacturers, to assess import<br />

tariffs. For statistical purposes, the valuation of imported merchandise is the Cost-Insurance-<br />

Freight (CIF) value. The value of exported merchandise is based on Free On Board valuation<br />

(FOB). The <strong>Saudi</strong> tariff nomenclature is consistent with the Harmonized System. There does<br />

not seem to be a significant body of rule mak<strong>in</strong>g or documentation available. Appeals are<br />

frequently made orally, and an appeals committee, under the Deputy Director General of<br />

Customs, meets frequently.<br />

Although <strong>Saudi</strong> <strong>Arabia</strong> is a member of the Customs Coord<strong>in</strong>ation Council, <strong>Saudi</strong> Customs<br />

officers do not have the authority to do <strong>in</strong>vestigative work on bus<strong>in</strong>ess premises; nor do they<br />

have enforcement powers. These powers are vested <strong>in</strong> the M<strong>in</strong>istry of Interior.

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