A strategic step to boost the logistics sector
In a significant regulatory step aimed at enhancing the efficiency and attractiveness of the logistics sector in the Kingdom of Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA), in coordination with the Saudi Ports Authority (Mawani), announced the implementation of a unified and specific mechanism for calculating and collecting storage and demurrage fees at eight major Saudi ports. This decision aims to standardize procedures and provide a more transparent and stable operating environment for importers, exporters, and all stakeholders in the maritime transport sector.
General context and objectives of Vision 2030
This new regulation is an integral part of the ambitious initiatives of Vision 2030, which aims to transform Saudi Arabia into a global logistics hub connecting Asia, Europe, and Africa. Previously, the mechanisms for calculating storage fees varied from port to port, creating uncertainty for businesses and hindering the smooth flow of goods. By standardizing these procedures, the Kingdom seeks to eliminate bureaucratic obstacles and facilitate trade through its ports, which include: Jeddah Islamic Port, King Abdulaziz Port in Dammam, King Abdullah Port in Rabigh, Jubail Commercial Port, Jubail Industrial Port, Yanbu Commercial Port, Jazan Port, and Ras Al-Khair Port.
The importance of the decision and its expected impact
This decision carries significant strategic importance on several levels. Domestically, it is expected to increase transparency and reduce operating costs for companies, thereby enhancing the competitiveness of national products and improving the overall business environment. The new mechanism, which links the start of duty calculation to the end of the standard customs clearance period, provides importers with a clear and defined timeframe to complete their procedures without incurring additional fees, thus encouraging faster customs clearance and reducing container congestion.
At the regional and international levels, standardized procedures make Saudi ports more attractive to global shipping lines and logistics companies. This stability and clarity in fees enhances the Kingdom's position as a key player in global trade and directly supports the objectives of the National Transport and Logistics Strategy, which aims to improve the Kingdom's global logistics performance indicators. This regulation represents a qualitative leap in port operations management and reflects a firm governmental commitment to developing infrastructure and facilitating trade to achieve the desired economic diversification.
