• The following terms and expressions - wherever they appear in this policy - shall have the meanings specified next to each, 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 System: The Unified Customs System (Law) for the GCC countries issued by Royal Decree No. (M/41) dated 3/11/1423 AH, and its subsequent amendments.

  • The Policy: Policy of the Authorized Economic Operator Program.

  • The Entity: The legal person applying for membership in the Authorized Economic Operator.

  • The Authorized Economic Operator: The entity that has obtained membership in the Authorized Economic Operator from the Authority based on the conditions and standards outlined in the policy.

  • Authorized Economic Operator Program (the Program): A program that offers a package of benefits and facilities to the economic operator who meets the conditions and standards stipulated in this policy. 

  • Economic Operator Committee: The committee formed by Royal Order No. (10143) dated 12/2/1445 AH. 

  • The Portal: The electronic portal of the Authority.

  • Program Management: The department in the Authority responsible for receiving applications for joining the program, evaluating them, and following up on the commitments of the entities.

  • Self-Assessment Form: Specific criteria that must be completed by the entity applying for membership in the program, which determines the extent to which the entity meets the acceptance conditions of the program.

  • Account Manager: The employee responsible for serving the authorized economic operator and processing all requests and inquiries.

  • Risks: All risks that may lead to the possibility of not meeting the eligibility conditions and violating legislation, regulations, and security procedures.

  • Mutual Recognition Agreements: Bilateral or multilateral agreements in which the countries that are parties to the agreement recognize the authorized economic operator in their jurisdiction and allow all operators to benefit from the program in all participating countries.

  • The Category: The level that indicates the set of benefits that will be granted to the program participants based on the conditions and standards for each category.

  • The following terms and expressions - wherever they appear in this policy - shall have the meanings specified next to each, 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 System: The Unified Customs System (Law) for the GCC countries issued by Royal Decree No. (M/41) dated 3/11/1423 AH, and its subsequent amendments.

  • The Policy: Policy of the Authorized Economic Operator Program.

  • The Entity: The legal person applying for membership in the Authorized Economic Operator.

  • The Authorized Economic Operator: The entity that has obtained membership in the Authorized Economic Operator from the Authority based on the conditions and standards outlined in the policy.

  • Authorized Economic Operator Program (the Program): A program that offers a package of benefits and facilities to the economic operator who meets the conditions and standards stipulated in this policy. 

  • Economic Operator Committee: The committee formed by Royal Order No. (10143) dated 12/2/1445 AH. 

  • The Portal: The electronic portal of the Authority.

  • Program Management: The department in the Authority responsible for receiving applications for joining the program, evaluating them, and following up on the commitments of the entities.

  • Self-Assessment Form: Specific criteria that must be completed by the entity applying for membership in the program, which determines the extent to which the entity meets the acceptance conditions of the program.

  • Account Manager: The employee responsible for serving the authorized economic operator and processing all requests and inquiries.

  • Risks: All risks that may lead to the possibility of not meeting the eligibility conditions and violating legislation, regulations, and security procedures.

  • Mutual Recognition Agreements: Bilateral or multilateral agreements in which the countries that are parties to the agreement recognize the authorized economic operator in their jurisdiction and allow all operators to benefit from the program in all participating countries.

  • The Category: The level that indicates the set of benefits that will be granted to the program participants based on the conditions and standards for each category.

• 1. In accordance with the provisions of Article (4) of this policy, participants in the program shall receive the following set of basic benefits:

• A. Procedural, administrative, and financial benefits.

  • B. Benefits of mutual recognition agreements.

  • C. Benefits from relevant government entities and other entities.

  • D. Other benefit packages approved within the framework of the Economic Operator Committee.

• 2. The governor may approve the benefits provided by the authority, provided that they are included within the framework of the Economic Operator Committee.

• 1. The approved economic operator receives a set of benefits that vary according to the program categories, which are determined based on the nature of the establishment's activities as follows:

  •  A. Traders (exporters and importers) are classified into a model that includes (3) three categories: (bronze, silver, and gold).

  • B. Logistics service providers are classified into one category: (trusted operator), and the selection criteria vary according to the type of business activity associated with them, including but not limited to (customs brokers, warehouse operators, or other logistics service and solution providers).

• 2. A trader (importer or exporter) may not apply for the trusted operator category. 

• 3. Logistics service providers may not apply for the trader categories.

• The establishment wishing to join the program must comply with the following conditions:

  • 1. Eligibility Conditions and Criteria (for all categories):

    • A. The applying establishment must have a valid commercial registration. 

    • B. The establishment must be registered with the authority at least one year prior to submitting the claim. 

    • C. The establishment must operate in the field of import, export, or logistics services.

  • 2. Obligation Conditions and Criteria (for all categories): 

    • A. The establishment must not exceed the customs, tax, or zakat differential equation determined by the authority, and must not involve any suspicion of customs or tax smuggling. 

    • B. There must be no cases of evasion of zakat, taxes, or customs duties proven against the establishment during the last three years from the date of submission. 

    • C. There must be no final rulings for customs smuggling of prohibited or restricted goods proven against the establishment during the last three years from the date of submission.

    • D. There must be no final convictions issued by competent courts against the establishment or the responsible person in the establishment for crimes related to the establishment's activities according to local regulations, during the last ten years from the date of submission.

    • E. There must be no customs smuggling or tax evasion cases pending before quasi-judicial committees or the competent court.

    • F. There must be no final rulings or decisions issued against the establishment by the members of the Economic Operator Committee during the last three years from the date of submission.

    • G. The percentage of declarations submitted by the establishment during the due time must not be less than 75% of the total number of declarations for the last three years.

    • H. The percentage of amounts paid by the establishment during the due time must not be less than 75% of the total amounts due for the last three years.

    • I. The establishment's membership in the program must not have been previously canceled during the last three years.

  • 3. Financial Solvency Conditions and Criteria (for all categories):

    • A. The establishment must not have been subject to seizure, bankruptcy, or liquidation.

    • B. The establishment must not have any outstanding declarations that have not been submitted. 

    • C. The establishment must not have any unpaid financial dues to the authority that are not subject to any objections with the authority or the General Secretariat of the committees.

    • D. The establishment must pass the financial ratio standards set by the authority.

    • E. The establishment must demonstrate its ability to meet its future financial obligations to the authority and to the members of the Economic Operator Committee, and the authority may request what is necessary to verify this.

    • F. There must be audited financial statements from a certified public accountant.

  • 4. Special Requirement for Categories (Silver, Gold, and Trusted Operator):

    • ​​​​A. Compliance with the self-assessment standards set by the World Customs Organization (SAFE Framework of Standards).

    • B. Retention of customs papers, documents, data, contracts, correspondence, records, and any type of documents related - directly or indirectly - to customs operations for five years from the date of completion of customs operations.

    • C. Retention of records, invoices, and related documents and data through an integrated operating system that allows for referencing any old data or documents, in accordance with the retention requirements stipulated in Article 66 of the Implementing Regulation of the Value Added Tax Law.

    • D. Existence of an approved and activated business continuity policy.

    • E. Existence of approved and activated security measures to achieve physical security related to the protection of facilities, inventory, goods, and securing the supply chain and shipments (containers) and means of transport, in accordance with the standards set by the World Customs Organization. 

    • F. Existence of procedures and standards to ensure the reliability of the security and compliance of business partners and service providers to enhance the security of the supply chain related to the contracting party and their compliance with the required security standards. 

    • G. The establishment must provide activated internal policies and procedures that demonstrate its ability to communicate fully, accurately, and in a timely manner with the authority.

    • H. The establishment must provide an integrated operating system such as an ERP System and approved and activated policies and procedures for electronic supply management.

    • I. The establishment must provide an approved policy for training employees regarding security aspects and the establishment's self-audit operations and continuous performance measurement, as well as having an approved and implemented administrative structure.

    • J. A security screening must be conducted by the establishment for new employees.

    • K. The establishment must create a policy for violations and penalties that emphasizes proper conduct and defines unethical behavior.

    • L. Appoint a contact officer in the establishment with practical experience in customs, tax, and zakat for no less than two years to coordinate between the authority and the establishment.

    • M. The contact officer or the person responsible for customs affairs in the establishment must receive training related to customs procedures within one year from the date of the establishment's joining the program.

    • N. The standards outlined in this clause are applied based on the type of activity of the trusted operator.

  • 5. Special Requirements for the (Gold) Category Only:

    • A. The establishment must provide a comprehensive security system approved by one of the accredited security and risk assessment companies in the Kingdom of Saudi Arabia.

    • B. Transactions related to logistics services must be conducted through the trusted operator, in accordance with what is determined within the framework of the Economic Operator Committee.

    • C. Obtain a local content certificate in accordance with the requirements and sectors specified by the competent authority.

• 1. Submission of the Membership Application:

  • A. The membership application for the program is submitted through the Authority's website by filling out the application form available via the portal.

  • B. The submitted application is reviewed through the portal to verify its compliance with the conditions and criteria for joining the program and to conduct a preliminary assessment, which includes risk analysis, issues, security aspects, and the applicant's compliance with the Authority's conditions and policies.

• 2. Evaluation of the Entity and Study of the Application:

  • A. The compliance of the conditions mentioned in this policy is verified, and the financial solvency of the entity and its ability to meet all obligations to the Authority are ensured.

  • B. The application is studied, and a response is provided to the entity within a maximum period of (90) ninety days.

  • C. If the entity preliminarily meets the conditions and criteria for joining the program, a report is prepared containing inquiries that need clarification from the entity, and based on that, arrangements for a field visit to the entity's headquarters are coordinated.

  • D. A final report is prepared after visiting the entity, which includes the results of the evaluation phase and a recommendation to accept or reject the membership application, and it is submitted to His Excellency the Governor or his delegate.

  • E. The program management may grant the applicant a period of (6) six months to correct any unmet requirements before rejecting the application, and if the specified period passes without correction, the application is rejected immediately.

• 3. Acceptance of the Application:

  • A. If the entity meets the conditions and criteria for joining the program and the application is provisionally accepted, a self-assessment form is sent to the entity to be filled out and returned within a maximum period of (30) thirty days.

  • B. After filling out the form and final acceptance, the economic operator is registered in the Authority's systems.

  • C. A certified economic operator number is issued for the entity in the system.

  • D. The entity is notified of the decision, and the notice contains information about the certified economic operator's license.

  • E. After the entity obtains the certified economic operator's license, the account manager is provided with the follow-up plan from the Authority for both categories (silver and gold).

• 4. Rejection of the Application:

  • A. If the entity does not complete the required documents, it is granted a period of (30) thirty days from the date of notice to complete these documents, and if the deadline is not met, the application is rejected.

  • B. The entity is informed of the decision outcome with an explanation of the reasons and is advised that it can reapply for membership after a period of no less than one year from the date of notification.

  • C. The program management has the authority to accept the reapplication for membership from entities whose applications were rejected.

  • D. The Authority may automatically accept an applicant who did not succeed in the field visit in the (bronze) category due to their success in the previous steps.

• 5. Promotion Request:

  • When submitting a membership application for higher categories (promotion), it is ensured that the internal standards in the Authority are applied and the application is reviewed according to the following:

    • 1. Receipt of the self-assessment form via the Authority's website for a detailed study of the entity's application by the Authority according to the conditions and criteria for joining the program.

    • 2. If the entity does not meet one of the conditions and criteria for joining the program, the entity is notified of the rejection of the application with an explanation of the reasons.

• The authority has the power to re-evaluate the accredited economic operators to monitor their compliance with the program standards, and re-evaluation occurs in the following cases:

  • 1. Change in Obligation: The operator is re-evaluated upon the issuance of a non-compliance notification received from:

    • A. The internal departments of the authority.

    • B. Relevant government entities.

    • C. Countries participating in the mutual recognition agreement. 

  • 2. Legislative changes related to the matter.

  • 3. Significant changes in the activities of the economic operator.

  • 4. Upon request for Promotion to a higher category.

  • 5. The authority may re-evaluate automatically as follows:

    • A. Periodic Revision: The authority schedules the revision process periodically to verify the compliance of accredited economic operators with the requirements stipulated as follows:

    • 1. Periodic revision by verifying the internal data of the authority.

    • 2. Periodic revision every (5) five years for all categories.

The operator must comply with all the conditions and standards of the program and notify the authority in case of inability to continue or in the event of any changes to the policies and procedures related to the operator. The account manager at the authority must be informed of this in writing or electronically within (24) twenty-four hours from the date of approval of the amendments and provided with a copy of them.

• The employer requests a promotion of the category according to the following:

  • A. The extent to which the economic operator meets the conditions and criteria of the higher category is evaluated.

  • B. The establishment must meet the requirements of the requested category and maintain a record free of any rejections of promotions during the one-year period.

  • C. Upon successful promotion to a higher category, the establishment immediately receives the privileges associated with the new category.

• If it is found that the establishment has violated any of the conditions and standards related to its current category, the program management shall do the following:

  • A- Warn the establishment to correct its situation within (15) fifteen days, and if the period expires without correcting its situation, the authority shall suspend the benefits of the establishment related to its current category.

  • B- Suspend the membership of the establishment for a specified period not exceeding (6) six months, as determined by the program management based on the violation committed by the establishment.

  •  C- During the suspension period, the establishment is given an opportunity to address the violations discovered within (6) six months, and if the establishment fails to resolve these violations within the specified period, it will be downgraded to a lower category in the program, taking into account the applicability of the conditions and standards of the lower category.

  • D- During the suspension period, a meeting will be held with the establishment to discuss the violation.

  • E- The program management shall notify the establishment's account manager of the decision made regarding the violation.

  • F- After the downgrade, the establishment immediately loses the benefits of the category it was downgraded from and is not entitled to apply for promotion again for one year.

• 1. The program management shall automatically cancel the membership of the operator in the event that one of the following cases occurs:

  • A. Proven cases of tax, zakat, or customs evasion, or a case of smuggling of prohibited items against the establishment based on a final ruling or decision.

  • B. Suspension of the accredited economic operator status of the establishment more than twice during the economic operator's membership period.

  • C. Termination of the establishment's activity, its liquidation, or its merger with another company, resulting in the cancellation of its legal entity.

• 2. Without prejudice to the program management's right to periodically evaluate economic operators, the program management must, if it becomes apparent that the establishment has violated any of the conditions stated in this policy, do the following:

  • A. Warn the establishment to rectify its situation within (15) fifteen days, and if the period expires without rectifying its situation, the authority shall suspend the establishment's membership.

  • B. The duration of the suspension of the establishment's membership shall be specified and shall not exceed (6) six months, according to what the program management determines based on the violation committed by the establishment.

  • C. During the suspension period, the establishment is given an opportunity to correct the violations within (6) six months, and if the establishment fails to resolve these violations within the specified period, its membership in the program shall be canceled.

  • D. During the suspension period, a meeting is held with the establishment to discuss the violation.

  • E. The program management shall notify the establishment's account manager of the decision made regarding it.

  • F. In the event of the cancellation of the establishment's membership in the program, the establishment shall not have the right to reapply for the accredited economic operator license until at least (3) three years have passed from the date of cancellation.