The trade relationship between China and Saudi Arabia continues to deepen and has become an important pillar of economic cooperation between the two countries. The cooperation between the two countries under the “Belt and Road” initiative has promoted bilateral import and export business. A large number of Chinese goods such as machinery and equipment, electronic products, automobiles and parts are exported to Saudi Arabia. As trade exchanges increase, logistics and customs clearance procedures have become more important. This article will introduce the customs clearance process, required documents and other important considerations for shipping from China to Saudi Arabia in detail.
Introduction to Customs Clearance
Customs clearance refers to the procedures that should be performed in accordance with various laws, regulations and regulations when importing, exporting or transshipping goods into and out of the customs territory of a country. The customs clearance process usually includes registration and declaration, customs inspection and verification of goods and their information, verification of the actual value of goods, classification of goods, payment of tariffs and customs clearance of goods. In the trade between China and Saudi Arabia, the smooth progress of customs clearance procedures is crucial. Delays or errors in the customs clearance process may result in cargo detention, additional fees or even fines.
Customs Clearance Process for Shipping from China to Saudi Arabia
Prepare export documents
- Commercial invoice: The invoice should include details of the goods, the value of the goods, the place of origin, the buyer and the seller.
- Packing list: It states the specifications, quantity, packaging type, volume and weight of the goods.
- Export declaration: The export declaration needs to be declared to the Chinese customs, and the declaration contains the details of the goods.
- Certificate of origin: It proves that the goods are made in China. Some goods may enjoy tax exemption or tariff concessions.
- Other licenses and certifications: Certain goods may require additional licenses, such as medical devices, food, and medicines.
Customs declaration
Submit customs declaration materials to the Chinese customs, usually handled by a freight forwarder or customs declaration agent. The Chinese customs will review the goods and sometimes conduct an inspection (X-ray or physical inspection). If the declaration is correct, the customs will release the goods and the goods can be shipped to the departure port.
Choose the right transportation method
Choose the right transportation method (sea freight or air freight) according to the volume and weight of the goods and the needs to transport the goods to Saudi Arabia.
Prepare import documents
- Commercial invoice: It must meet the requirements of Saudi customs, including the value of the goods and the seller and buyer information. Packing list: List the specifications, quantity, weight and packaging information of the goods.
- Bill of Lading: A bill of lading is required for sea transportation and an airway bill for air transportation.
- Certificate of Origin: A certificate of origin issued by the Chinese Chamber of Commerce or relevant institutions must be provided.
- Product Certificate of Conformity (SASO Certification): Some products (such as electrical appliances and consumer products) must comply with the standards of the Saudi Arabian Standards Organization (SASO) and provide the corresponding certificate of conformity.
- Import License: Certain specific products (such as medicines, food, and cosmetics) may require a Saudi import license.
Saudi Arabia Electronic Customs Clearance System: FASAH
Saudi Arabian Customs uses the FASAH electronic customs clearance system, and importers or agents need to declare goods in advance through this system. Importers need to upload relevant documents on FASAH, and the customs will review the goods information based on the submitted documents.
Customs Inspection and Tariffs
- Customs Inspection: Saudi Arabian Customs will review the goods and in some cases require actual inspection of the goods, including X-ray inspection or physical spot inspection.
- Tariff Calculation: The tariff rate for most goods is 5%-15%. Based on the HS code of the goods, the customs will calculate the duties and value-added tax (VAT) payable. The VAT rate in Saudi Arabia is 15%.
- Pay duties and taxes: Duties and VAT need to be paid before the goods are released, usually by the importer or its agent through bank transfer or electronic payment.
Obtain SABER certification
SABER system: For consumer products, importers need to register in the Saudi SABER system and obtain a Certificate of Conformity (CoC). This certificate is issued by a third-party inspection agency after testing in China, proving that the goods comply with Saudi technical regulations
Release of goods
Once all documents have been reviewed and the duties and VAT have been paid, the customs will officially release the goods. The goods can be transported to the importer’s warehouse or designated location by land, air or sea.
Tariffs from China to Saudi Arabia
Determine the tariff rate of goods
Each commodity has an HS code (Harmonized System Code), also known as the customs commodity code. The tariff rate of different goods is determined by this code.
Saudi Arabia implements a differential tariff policy based on the category of goods. The tariff rate of most imported goods is between 5% and 15%, but some special goods (such as cars and luxury goods) may have higher rates. Here are some common tariffs for goods:
- Machinery and electronic products: Usually the tax rate is 5%-10%.
- Food: Some foods may be tax-free, but other foods (such as beverages and meat) may be subject to a tariff of 5%-15%.
- Textiles and clothing: Usually the tax rate is between 5%-10%.
- Automobiles and parts: The tariff on automobiles may be as high as 15% or even more.
Calculate the basis for tariffs
Tariffs are usually based on the CIF value, that is, the value of the goods + insurance + freight (Cost, Insurance, Freight). Specifically, tariffs are calculated based on the total CIF value of the goods, not just the invoice amount of the goods. CIF value = actual price of goods (invoice amount) + international shipping + insurance.
Calculation of Value Added Tax (VAT)
In addition to customs duties, Saudi Arabia also imposes Value Added Tax (VAT), the current VAT rate is 15%. VAT is based on the total cost of goods, including CIF value and customs duties
Other considerations for customs clearance from China to Saudi Arabia
Goods embargo list
Saudi Arabia has some strictly prohibited goods, such as alcohol, pornographic materials, and gambling equipment. Importers need to ensure that the goods comply with Saudi laws and regulations.
Compliance review
Saudi customs has a strict compliance review for certain commodities (such as medicines, food, and chemicals). Therefore, it is very important to ensure that the product complies with all relevant Saudi regulations and standards before shipment.
Processing time
Although Saudi customs clearance procedures have made some progress in electronicization, the entire customs clearance process may still take a long time, especially during peak periods or certain festivals. Therefore, plan your transportation and customs clearance time in advance to avoid delays.
Customs clearance agent selection
When doing customs clearance in Saudi Arabia, it is crucial to use an experienced customs clearance agent who is familiar with local policies and procedures. The right customs clearance agent can help you avoid unnecessary delays and ensure that the customs clearance procedures are completed smoothly.
You may also be interested in: Customs Clearance for Shipping from China to Qatar
Although the customs clearance procedures for transporting goods from China to Saudi Arabia are complicated, this article will help you fully understand Saudi Arabia’s customs clearance policies, prepare the required documents in advance, and cooperate with experienced customs clearance agents to help your goods arrive at their destination smoothly.