Saudi Arabia establishes operational guidelines for bonded zone operations
The Saudi Zakat, Tax, and Customs Authority has introduced new regulations governing the operation of Bonded Zones within the Kingdom.
The primary objective of these guidelines is to establish a comprehensive legal framework for the licensing of bonded zones and to define the standards for activities conducted within these designated areas. Furthermore, the regulations aim to elucidate the roles and responsibilities of operators, as well as the Authority's supervisory and regulatory powers over these zones.
The regulations encompass several key facets, including intricate procedures related to Bonded Zone licensing and activities, prerequisites for license applications, and specific criteria, standards, and obligations for operations within these zones. Additionally, the rules delineate the responsibilities of both operators and the authority.
Bonded Zones function as specialized customs areas where entities involved in importing, exporting, and logistics can store goods and engage in logistics activities. Notably, these activities occur with the advantage of suspended customs duties and taxes until the goods are either introduced into the local market or re-exported.
This arrangement proves instrumental in optimizing trade efficiency by providing flexibility in managing financial liquidity. The regulatory environment within Bonded Zones is supportive, fostering commercial growth while streamlining processes such as clearance, storage, and re-exportation. Importantly, these zones facilitate import and export procedures for shipments within their confines. These measures align with Saudi Arabia's strategic vision to position itself as a global logistics center.
Moreover, the newly established regulations governing Bonded Zones in Saudi Arabia serve as a crucial step in creating a robust legal framework. By clarifying licensing procedures, setting standards, and outlining responsibilities, these regulations contribute to the Kingdom's overarching goal of becoming a prominent global logistics center, enhancing trade efficiency, and fostering commercial growth.