Under the new initiative, local factories will benefit from customs duty exemptions on inputs used for the production of goods targeted for export. This is within the framework of enhancing the competitiveness of local exports, reducing their costs, and supporting the local industrial sector. It also aligns with the Saudi Vision 2030 goal of diversifying the economy and boosting non-oil exports.
The Saudi Export Development Authority said in a statement on Tuesday that the new service focuses on reducing the costs of industrial companies and improving their export capabilities to enhance their competitiveness. This is through exemption from customs duties imposed on inputs that fall within the capabilities list of the Ministry of Industry and Mineral Resources, which are used in products that are exported, based on the record performance of the factory’s exports during the past 12 months.
The new service will be applied to industrial inputs such as labor, raw materials, fuel, equipment and buildings that are designed to provide a competitive advantage to Saudi manufacturers by reducing costs associated with exports.
The authority stated that the terms and conditions for granting duty exemptions include obtaining a valid industrial license, and that the inputs required to be exempted be within the list of industrial capacities of the Ministry of Industry and Mineral Resources, and that the materials shall be consistent with those specified in the industrial license.
The service is also characterized by a flexible and fast implementation mechanism. The application processing takes no more than five working days, and companies wishing to benefit from the service can enter through the Sina’ai platform of the Ministry of Industry and Mineral Resources where they can apply for the customs exemption service under the export category.
The “Exemption in Exchange for Export” service comes in response to the aspirations of the industrial sector in the Kingdom, as it aims to facilitate export operations and encourage companies to expand their international business. It enhances the efforts of Saudi Export Development Authority in supporting exporters and achieving the goals of “Vision 2030” in diversifying sources of income and promoting non-oil exports, through innovative initiatives and services specifically designed to meet the needs of exporters and stimulate the growth of national industries.
