The economic and logistical context of deposit zones in the Kingdom
As part of the Kingdom of Saudi Arabia’s ongoing efforts to achieve the goals of Vision 2030, which focuses primarily on transforming the Kingdom into a leading global logistics hub connecting the three continents of Asia, Africa, and Europe, the Zakat, Tax and Customs Authority has proposed amendments to the rules governing bonded zones through the “Istilaa” platform. This strategic step aims to regulate the legislative environment for customs and logistics activities, thereby enhancing the regional and international competitiveness of Saudi ports and entry points. Bonded zones play a vital role in supporting supply chains, enabling investors and traders to store their goods and defer customs duties and taxes until they are actually released into the local market, thus providing financial liquidity and greater flexibility in managing business operations.
Regulating e-commerce and logistics operations
The new amendments included precise regulations for e-commerce activities within bonded warehouses, defining them as the sale and marketing of goods stored on digital platforms and the receipt of purchase orders. This directly supports the growth of the digital economy and allows these warehouses to be used as advanced logistics hubs to expedite the fulfillment of consumer demands both locally and regionally. The regulations also included provisions for maintenance operations, permitting the import of damaged goods from within or outside the Kingdom for repair, with customs duties levied only on the parts used in the repairs when the goods are released to the local market.
Simple assembly and integration processes
To provide greater flexibility for light industries, the amendments clarified that simple assembly operations include combining or arranging components of semi-finished products to create a single item, without altering its essential nature or customs classification. Mixing and combining similar goods into a single shipment was also permitted, reducing shipping and storage costs for companies.
Types of licenses and maximum storage periods
The regulations specify the types of licenses, including a "deposit area" license for core activities such as storage and handling, and a "deposit tank area" license for liquid petroleum and petrochemical products. To ensure efficient use of space, the maximum storage period for goods is set at five years, subject to approval by the Authority based on the nature of the goods. Hazardous or radioactive goods are subject to storage periods that comply with their respective regulations, with the possibility of extension based on acceptable justifications.
Input and output facilities and government oversight
Among the most notable facilitations offered is the possibility of importing goods from outside the Kingdom into bonded areas without obtaining final clearance permits, in coordination with the relevant authorities. Temporary storage of sealed containers until shipment is also permitted. As part of government integration, the amendments allowed employees of other government agencies to enter these areas to perform their oversight roles. To ensure transparency, bonded area operators are required to conduct periodic inventory counts, submit regular reports, and fully cooperate with the Authority's inspectors.
Material consumption and customs duties
The regulations permit the consumption of certain materials within the designated storage areas (such as office supplies or fuel for equipment) with deductions from inventory based on approved forms and payment of applicable fees. Conversely, items consumed in value-added processes are exempt from fees. The regulations also stipulate the collection of duties and taxes on goods imported for the daily consumption of employees within the zone, while fees may be suspended on equipment and machinery used in the zone's operation that can be re-exported in their original condition.
