• The Common Customs Law of the GCC States was issued under Royal Decree No. (M/41) dated 03/11/1423 H, which unifies the customs procedures and laws in the GCC states in accordance with the provisions of the customs international conventions. The Law addressed an array of customs procedures, including bonded zone rules and conditions.

• These Rules aim to outline the statutory provisions for licensing of bonded zones and for practicing the activities within these zones, as well as specify the obligations of operators and ZATCA control and supervisory functions pertaining to the bonded zones.

• Bonded zones are a special customs system through which movement of goods and trade is facilitated as they are zones designated to accommodate the goods under suspension of customs duties and taxes, as well as under supervision and control of Zakat, Tax and Customs Authority (ZATCA) and under management of entities licensed to operate the zone or warehouse. It is permitted to keep the goods in these zones under suspension of customs duties and taxes until they are entered into the local market or re-exported. Bonded zones aim to provide an environment supporting movement of goods and logistics in the Kingdom and facilitate the trade in order to promote the Kingdom’s position to become a global logistics hub. Bonded zones’ benefits include, inter alia, the following:

  • 1. Promoting commercial activity through bonded zones and re-exporting to neighboring countries.

  • 2. Increasing flexibility of clearance, storage and re- exporting to different destinations, and providing several options for importers and exporters.

  • 3. Increasing liquidity management flexibility.

  • 4. Facilitating import and export procedures for shipments received in bonded zones and raising efficiency of trade exchange.

  • 5. Enabling non-resident merchant to carry out activities within the bonded zones without requiring a commercial register.

• The following words and terms - wherever they appear in these rules - shall have the meanings indicated opposite each of them, unless the context requires otherwise:
• The Authority: Zakat, Tax, and Customs Authority.
• The Council: Board of Directors of the Authority.
• The Governor: Governor of the Authority.
• Unified Customs Law (the Law): The "Law" of the Unified Customs Law for the GCC countries, issued by Royal Decree No. (M/41) dated 3/11/1423 AH.
• Implementing Regulation: The Implementing Regulation of the Unified Customs Law, issued by Ministerial Decision No. (2748) dated 25/11/1423 AH.
• The Rules: Rules of Deposit Areas.
• Deposit Areas: Areas where goods are deposited in a suspended status regarding customs duties and taxes, including one or several warehouses where the activities specified in these rules are practiced according to the type of area, and deposit areas are managed by the operator under the supervision and customs control of the Authority.
• Goods: Any natural material or animal, agricultural, industrial, or intellectual product.
• Customs Duties: Amounts collected on goods in accordance with the provisions of the Unified Customs Law.
• Taxes: Indirect taxes imposed on imported goods without prejudice to the provisions regarding their suspension contained in the Unified Value Added Tax Agreement, the Unified Excise Tax Agreement, and related laws and regulations.
• Establishment: The legal entity applying for a license to operate a deposit area.
• Operator: The establishment licensed by the Authority to carry out the necessary operations to manage and operate a deposit area.
• License: A document issued by the Authority to the operator authorizing it to carry out the licensed operations and activities in a specific deposit area or areas in accordance with the terms and conditions of the granted license.
• Deposit Area License: The license granted by the Authority to operate a deposit area where storage, handling, and value-added operations are permitted.
• Specialized Deposit Area License: The license granted by the Authority to operate a deposit area where storage, handling of goods, and specialized activities are permitted.
• Deposit Tank Areas License: The license granted by the Authority to operate a deposit area containing tanks where petroleum, petrochemical liquid products, and bulk products are deposited.
• Temporary Deposit Area License: The license granted by the Authority to operate a deposit area where all permitted operations and activities in all deposit areas are allowed, and these areas are used for a limited period as determined by the rules.
• Violations: Any violation of the provisions of the rules, in addition to the violations stipulated in the Unified Customs Law and its Implementing Regulation, and all guidelines and decisions issued by the Authority.
• Value-Added Operations: Operations necessary to preserve goods and improve their marketing quality, including - for example - (packaging, filling, refilling, coding, sorting, labeling).
• Storage and Handling: Procedures performed on goods inside deposit areas, including preserving goods and keeping them in designated warehouses, loading, unloading, arranging, sorting, and any necessary operation to maintain them without changing their nature or condition in accordance with the provisions of the law and the rules.
• E-Commerce: Practicing activities of selling, marketing, and receiving purchase orders for goods stored inside deposit areas through electronic means or digital platforms.
• Maintenance: Bringing damaged goods and merchandise from inside or outside the Kingdom into deposit areas for repair, provided that customs duties are collected on the parts used in maintenance operations when the goods are released from the area into the local market.
• Simple Assembly Operations: Operations carried out for the purpose of collecting, assembling, or coordinating components or packages of complete or semi-complete products into one item without resulting in any change in the nature of the goods, their essential characteristics, or their customs tariff heading.
• Mixing and Merging: Any process of mixing and merging identical or similar goods for the purpose of unifying them into one shipment or package, provided that this does not result in a change in the nature of the goods, their essential characteristics, or their customs tariff heading.
• Approved Import/Export Form: A form approved by the Authority for importing and exporting goods to and from deposit areas that includes the distinguishing elements of the goods.

Without prejudice to ZATCA’s right for supervision and control over bonded zones and warehouses managed by other entities and the relevant applicable laws and regulations, all operators, entities and parties concerned with operation and practice of activities in bonded zones in the Kingdom shall be subject to these Rules, as well as shall, in accordance herewith, fulfill the requirements and obtain the necessary approvals from ZATCA and the site owner and any requirements provided for by ZATCA in these Rules before and during operation.

Bonded zones shall be established inside or outside the customs department under a decision issued by the Governor.

• The financial consideration for customs services in deposit areas shall be determined by a decision of the Council.

• The establishment applying for the license must specify the type of deposit area it wishes to manage according to the following:

• 1- Deposit Area License, which includes the following activities:

  • A- Storage and handling.
  • B- Value-added operations.
  • C- E-commerce.
  • D- Maintenance.
  • E- Simple assembly operations.

• 2- Deposit Tanks Area License, which includes the following activities:

  • A- The activities specified in paragraph (1) of this article.
  • B- Storage of petroleum derivatives, liquid petrochemicals, and bulk products.
  • C- Blending and merger.

• When submitting a license application through the channels and forms approved by the Authority, the following basic requirements must be adhered to:

  • 1- Submit the license application through the channels and forms approved by the Authority.

  • 2- The applying establishment must have the unified national number for the commercial register or the unified national number for the establishment.

  • 3- Provide a valid commercial register for the establishment that includes the type of activity.

  • 4- Proof of ownership or lease of the property contracted with the property owner, provided that the contract duration is not less than the license duration, and the owner's approval for the leased property to be used as a deposit area.

  • 5- Obtain the necessary approvals to practice activities from the competent authorities according to their jurisdictions.

  • 6- Obtain the necessary construction approvals and licenses for the area or warehouse from the competent authorities.

  • 7- Submit engineering plans according to the technical standards approved by the Authority.

  • 8- Provide a documentary guarantee to fulfill all financial obligations, including a commitment to pay all taxes and customs duties that will be suspended, taking into account the following:

    • A. Periodic evaluation of the operator to verify compliance with the Authority’s requirements, systems, and regulations.
    • B. The Authority may request a bank guarantee for a period exceeding the license duration by one year, in a fixed amount of (1,000,000) one million riyals, in case violations of the Authority’s rules, systems, or regulations are found.