Saudi Arabia determines the conditions for establishing free markets in customs ports

The Saudi Zakat, Tax and Customs Authority has determined the customs rules, conditions and procedures for establishing free markets at air, sea and land ports, in accordance with the unified customs system of the Gulf Cooperation Council states, which includes the requirements related to the operation of the free market, in addition to the provisions related to the requirements for operating licenses and other controls. Related.

The commission clarified that defining these rules comes after the Council of Ministers’ decision to approve the establishment of free markets, according to the need, in the air, sea and land ports, and to allow sales there for travelers coming to and departing from the Kingdom.

And she stressed that the decision will contribute to supporting supply chains and improving logistical services provided to duty-free shops by providing a wide range of goods and products for shopping during travel, according to what was reported by the Saudi Press Agency, “SPA”.

The authority stated that the duty free shops will grant additional sales channels to local companies by selling their products to duty free operators, which supports and contributes to the promotion of national products by displaying them in the sales halls.

The authority also indicated that duty free shops are currently located in the departure halls of a number of air ports, which are King Abdulaziz Airport, King Khalid Airport, King Fahd Airport and Prince Muhammad bin Abdulaziz Airport in Madinah, noting that it seeks to expand as needed in air, sea and land ports, in coordination with Legislative authorities at customs ports.

Free markets at customs outlets are defined as retail outlets that allow travelers to purchase goods and products that are permitted to be traded in the Kingdom and that are subject to exemption from customs duties or taxes in accordance with the provisions of the relevant regulations, as stipulated in Article 78 of the Unified Customs Law and Paragraph (1) of Article 12 of the Free Market Rules System.

Tax exemption systems differ from one country to another, according to the location of the free market (arrival or departure halls) and in accordance with the provisions of the unified customs system and its executive regulations and any of the relevant laws, regulatory and legislative regulations in each country.