The Common Customs Law of GCC States was issued under Royal Decree No. (M/41) dated
03/11/1423 H, unifying the customs procedures and laws in Gulf Cooperation Council (GCC)
member states in accordance with the international customs-related agreements. The said Law
has addressed a number of customs procedures, including the procedures of the duty-free shops.
Duty-Free Shops are the place wherein goods are placed free of customs duties for purposes of
display or sale. The rules, terms, and procedures thereof shall be determined by a decision of the
Minister or the competent entity
Whereas, the Council of Ministers Resolution No. (114) dated 10/02/1444 H was issued, approving the establishment of duty-free shops, as may be required, in air, sea, and land ports where goods will be sold to arriving and departing passengers to the Kingdom; delegating the Minister of Finance, Chairman of ZATCA Board, to issue any relevant decisions; and setting out the customs rules and terms thereof in accordance with Article (77) of the Common Customs Law for GCC States;
Accordingly, these rules set out the requirements for operating the duty-free shops, the provisions related to the requirements of the operation license thereof and any other relevant controls.

The following terms and expressions, whenever used herein, shall have the meanings ascribed thereto, unless the context otherwise requires:
ZATCA: the Zakat, Tax, and Customs Authority.
Board: the Board of Directors of ZATCA.
Minister: the Minister of Finance and the Chairman of the Board.
Governor: the Governor of ZATCA.
Common Customs Law: the Common Customs Law for GCC States issued under Royal Decree No. (M/41) dated 03/11/1423 H.
Implementing Regulations of the Customs Law: the Implementing Regulations of the Common Customs Law issued under Royal Decree No. (2748) dated 25/11/1423 H.
Customs Office: the scope determined by the Minister in any sea, air, or land port, or in any other place containing an administration center licensing the completion of full or part of customs procedures.
Rules: the rules of duty-free shops.
Establishment: the legal entity or person submitting a request to obtain a duty-free shops operation license.
Duty-free Shop(s): the licensed building or place wherein goods are placed free of customs duties for purposes of display or sale.
Duty-free Shops Operator: the establishment licensed by ZATCA to operate the duty-free shops.
License: the license granted by ZATCA to operate the duty-free shops in a certain location inside the Customs Office for a certain term.
Warehouse: means the place or building wherein the goods are deposited under supervision of ZATCA free of customs duties (taxes) in accordance with the provisions of the Common Customs Law and the Implementing Regulations thereof.
Store: the place designated for displaying and selling the products inside the duty-free shops.
Goods: each natural substance or animal, agricultural, industrial, or intellectual product.

Without prejudice to the applicable relevant laws and regulations, all duty-free shop operator inside the Kingdom of Saudi Arabia shall be subject to the provisions of these Rules. They shall hereby adhere to the customs requirements and obtain the necessary approvals from ZATCA and the site owner prior to the initiation of the sale and operation processes.

The duty-free shops may be established in air, sea, and land ports where goods will be sold to travelers from and to the Kingdom, and the Minister shall issue any of the resolutions with regard to the establishment thereof.

Under a decision by the Governor, the operation request of duty-free shops may be approved in the Customs Office, after fulfilling all the requirements clarified in the Rules and any other requirements set out by ZATCA.

The financial consideration of the duty-free operation license shall be determined under a decision issued by the Board.

In order for the establishment to obtain an operation license for the duty-free shop, the following requirements shall be met:
1. Submitting a request to obtain the license through ZATCA approved channels.
2. Submitting a Saudi commercial register for the establishment applying the request, which includes a valid activity for the duty-free shop operator; and submitting a commercial investment license if the applying entity is foreign.
3. Submitting a valid social insurance certificate.
4. Submitting a valid Saudization certificate.
5. Submitting a valid certificate of taxpayer registration in ZATCA.
6. Submitting the lease of the duty-free shop location, and if not available, a letter from the site owner shall be submitted stating the approval of leasing the site for the operator.
7. Submitting a bank guarantee for ZATCA to ensure the fulfilment of obligations not exceeding twenty-hundred thousand Saudi Riyals (SAR 200,000), provided that the guarantee term shall not be less than the operation license term of the duty-free shop.
8. Obtaining ZATCA’s approval on the shop and warehouses location, provided that the following documents shall be attached:
A. A copy of the engineering layouts of the duty-free shop, inclusive of all stores and warehouses, shall be submitted to ZATCA to give its feedback and the proposed locations; and
B. Details of the technical system and security cameras drawings for the entity desiring to operate the duty-free shop.
9. The establishment shall satisfy all the terms and requirements of issuing licenses within ninety (90) days as a maximum of the request submission date, otherwise the request will be considered cancelled.