(1) The importer may release its goods after providing sufficient guarantees in the form of bank or cash insurance, bank guarantee, or in the form of insurance or mortgaged property of an equivalent value to cover the estimated customs taxes "duties", if the final determination of the customs value is found to be delayed.

(2) The importer or any other person bears the coverage of the customs taxes "duties" may object and appeal against the estimation of the customs value without penalty, as follows:

• A. Management Level

• 1. Customs Department Director.

• 2. Value Adjudication Committee.

• B. Independent Judicial Authority.

(3) Confidential information or information provided on a confidential basis, for customs valuation purposes, shall be treated as strictly confidential and may be disclosed only to the extent that it is required to be disclosed in the context of judicial procedures in accordance with the provisions of the Common Customs Law for GCC States.

(4) When the declared value is denominated in foreign currency, it shall be converted into local currency on the basis of the exchange rate that is announced in the publications issued by the competent authorities. The customs declaration registration date shall be the date approved for the exchange rate.

(5) When determining the customs value, no reduction in the price actually paid or payable for the goods being valued that takes place after the importation date shall be regarded. Likewise, credit balances related to previous consignments shall be disregarded at the registration date of the customs declaration of the goods being valued in the customs departments.

(6) There is no provision in this law that means a restriction or questioning of the right of the Saudi Customs to take the necessary measure to be convinced of the truthfulness or accuracy of any declaration, document, statement or declaration submitted to the Saudi Customs for evaluation purposes.

(7) A. If, when applying Clauses (IV to VIII) of this Article, there is a need to use accounting information to determine the customs value; this information shall be used consistently with the generally accepted accounting principles in the GCC States when applying the particular article. B. The Saudi Customs may not reject information provided by the importer, purchaser or producer related to the valuation of the goods prepared in accordance with generally accepted accounting principles under the pretext of the calculation method used.

(8) Subject to Clause (IV/B) of this Article, when determining the customs value of information transmission media such as magnetic tapes and the like, on which data or software are recorded, the value shall be calculated on the basis of the value of these media only, without calculating the value of the information recorded on them.

(9) Upon written request, the importer has the right to obtain a written explanation from the Customs Department on how to determine the method in which the customs value of the imported goods was determined.

(A) The incoming goods shall be valued according to the following bases respectively:

• (1) The transaction value of the goods being valued set forth in Clause (IV).

• (2) The transaction value of conforming goods, set forth in Clause (V/A), if it is not possible to determine the transaction value under Clause (IV).

• (3) The transaction value of conforming goods, set forth in Clause (V/B), if it is not possible to determine the transaction value of conforming goods.

• (4) The evidentiary value set forth in Clause (VI), if it is not possible to determine the value under the transaction value of similar goods.

• (5) The calculated value set forth in Clause (VII), if it is not possible to determine the value under the evidentiary value.

• (6) The flexible method set forth in Clause (VIII), if it is not possible to determine the value under the calculated value.

(B) The importer may request the application of the calculated value method before turning to the evidentiary value method. This request shall be submitted upon submission of the import declaration to the customs. If the importer submits its request, but its imported goods cannot be valued according to the calculated value method; they shall be valued according to the evidentiary value method, if not, the valuation shall be in accordance with Clause (VIII).

(a) The transaction value for identical goods accepted as transaction value under Paragraph (Fourth) of this Article, sold for export to the GCC States on or near to the same date as the export of the goods under valuation, and the same commercial standard and the same quantities of the imported goods under valuation. If such a value is not available, the transaction value for identical goods sold at a different commercial standard and/or in different quantities, with an adjustment to it to take into account the difference in the commercial standard and/or quantities, shall be used on the ground of objective data in pursuance with paragraph (II/11) of this Article, and a definite evidence proving the reasonableness of the adjustment, whether such adjustment resulted in an increase or decrease in the value, taking into account the difference in costs referred to in Paragraph (IV/B/1) of this Article. If there is more than one transaction value for identical goods, the lowest of those values shall be approved as the Customs Value for the goods under valuation, in accordance with Paragraph (V) of the Explanatory Annex.

(b) The transaction value for similar goods accepted as transaction value under Paragraph (IV) of this Article, sold for export to the GCC States on or near to the same date as exporting the goods under valuation, at the same commercial standard and with the same quantities of the imported goods under valuation. If such a value is not available, the transaction value of similar goods sold at a different commercial standard and/or in different quantities, with an adjustment to it to take into account the difference in the commercial standard and/or quantities, shall be used on the ground of objective data in pursuance with Paragraph (II/11), and a definite evidence proving the reasonableness of the adjustment, whether such adjustment resulted in an increase or decrease in the value, taking into account the difference in costs referred to in Paragraph (IV/B/1) of this Article. If there is more than one transaction value for similar goods, the lowest of those values shall be approved as the Customs Value for the goods under valuation, in accordance with Paragraph (V) of the Explanatory Annex.

(a) The Customs Value is based on the unit price by which the same imported goods, identical goods or similar goods are sold, at the first commercial standard, in the local market in the GCC States, as they were at the time of import, with the largest total quantity according to Paragraph (II/8) of this Article, on or near to the same time of importing the goods under valuation, for unrelated persons according to Paragraph (II/5) of this Article, excluding the sale of the goods in the production of which any of the auxiliary items described in Paragraph (IV/B/ 1/4) of this Article, provided that the following deductions are made:

• a. Either the amount of commissions (usually paid or agreed), or the amounts that are usually added against the rate of profits and general expenses in the GCC States for goods of the same class or type.

• b. The usual fees for transportation and insurance after importation and the associated costs in the GCC States. Provided that these costs are not added as general expenses in accordance with Paragraph (a) above.

• c. Taxes, customs "duties" and other taxes or zakat due in the GCC States owed due to the import or sale of goods locally. It must be taken into account that such taxes or zakat are not deducted under this Paragraph if the importer registers them within the general expenses in Paragraph (a) above on this basis.

(2) Where the goods to be valued or identical or similar imported goods were sold in their condition on import at the same time or near to the time as the goods under valuation were imported, the Customs Value shall be established, subject to the provisions of Paragraph (1) of this basis, to the unit price at which the imported goods, identical goods, or similar imported goods are sold in the local market in the GCC States, in their condition upon import, as soon as after the import of the goods being valued is carried out, as long as this is carried out before ninety days have passed from the date of importing the goods under valuation, in quantities sufficient to determine the unit price.

(3) Where the imported goods, identical goods or similar imported goods were not sold in the local market in the GCC States, in their condition upon import, the Customs Value shall be established, upon the importer’s request, on the price at which the unit of the imported goods is sold in the local market in the GCC states , after carrying out additional manufacturing or processing unless they lose their identification, in the largest total quantity, among unrelated persons as defined in Paragraph (II/5) of this Article, while taking into account the deduction of the value added as a result of manufacturing or additional processing in the GCC States, as well as the deductions set forth in Paragraph (1) of this Basis

(1) If the Customs Value cannot be determined in accordance with Paragraph (VI) of this Article, or if the importer requests the application of the Calculated Value before the Deducted Value in accordance with Paragraph (III/B) of this Article, the Customs Value shall be based in accordance with the provisions of this paragraph on the value Calculated, which consists of the sum of the following:

• a. The cost or value of the materials, manufacturing or other processing works that were used in the production of the imported goods.

• b. The amount of profit and general expenses of the product, equivalent to the amount that is usually reflected in the sales of goods of the same class or type of goods whose value is being determined and which are manufactured by other producers in the same exporting country, for export to the GCC States.

• c. The fees and costs outlined in Paragraphs (7) and (8) of (IV/B/1) of this Article.

(2) No person residing outside the GCC States may be demanded to submit for examination any accounts or records for the purposes of determining the Calculated Value, or to be permitted to access them. However, the Customs Administration can verify in another country the information provided by the producer of the imported goods, for the purposes of determining the Customs Value in accordance with the provisions of this Article, with the consent of the producer, as long as a prior and adequate notice is served to the Government of the country in which the investigation is being conducted, and that it does not object to the same.

(a) If it is not possible to determine the Customs Value of the imported goods according to the previous bases set forth in Paragraphs (IV) to (VIII) of this Article, the provisions of the same bases shall be applied again respectively, with a reasonable degree of flexibility, until the Customs Value is reached according to the first possible basis.

(b) Should the Customs Value be not reached using that bases, even in its flexible form, reasonable methods may be used that do not contradict the general principles and provisions of the value agreement, under Article 7 of GATT 1994 AD, and based on the data available to any party in the GCC States. The Customs Value may not be determined based on the following:-

• 1. The sale price in the GCC States for goods produced in the GCC States.

• 2. The higher value than alternative values.

• 3. The sale price of the goods in the local market in the country of export.

• 4. A production cost other than the Calculated Value determined pursuant to the provisions of Paragraph (VII) of this Article.

• 5. The price of the goods sold for export to a country other than the GCC States.

• 6. Random or unfair values.

• 7. Minimum limits of Customs Value.

(c) The importer shall have the right, upon a written request, to obtain a written explanation of the bases approved in determining the Customs Value under the provisions of this Paragraph. The clarification includes only the imported goods under valuation, and does not serve as a reference in connection to the valuation of imports of any other good at the same entry customs or otherwise. This procedure is only for information purposes, and does not affect or supersede the objection and appeal procedures contained in this Paragraph.