How to Find the Right HS Code for Saudi Customs: A Complete Guide

If you are planning to export or import goods to or from Saudi Arabia, you need to know the HS code of your products. HS code, or Harmonized System code, is a standardized system of classification that assigns a six-digit number to each product category. HS code is used by customs authorities around the world to identify the origin, destination, and tariff of the goods.

HS code is important for several reasons. First, it helps you determine the customs duties and taxes that you have to pay for your goods. Second, it helps you comply with the import and export regulations of Saudi Arabia and other countries. Third, it helps you avoid delays, fines, and penalties at the customs clearance.

But how do you find the right HS code for your products? And what are the specific rules and requirements of Saudi customs? In this article, we will answer these questions and provide you with a comprehensive guide on how to find and use HS code for Saudi customs.

What is HS Code?

HS code stands for Harmonized Commodity Description and Coding System. It is a global system of classification that was developed by the World Customs Organization (WCO) in 1988. It is used by more than 200 countries and territories to classify over 5,000 product groups and subgroups.

HS code consists of six digits. The first two digits indicate the chapter or section of the product, such as animal products, vegetable products, mineral products, etc. The next two digits indicate the heading or subheading of the product, such as meat, dairy, cereals, etc. The last two digits indicate the subheading or sub-subheading of the product, such as fresh meat, frozen meat, cheese, etc.

For example, the HS code for fresh chicken meat is 0207.11. The first two digits (02) indicate that it belongs to chapter 2 (meat and edible meat offal). The next two digits (07) indicate that it belongs to heading 07 (meat and edible offal of poultry). The last two digits (11) indicate that it belongs to subheading 11 (of fowls of the species Gallus domestics).

How to Find HS Code for Your Products?

There are several ways to find the HS code for your products. Here are some of the most common methods:

Use online tools: There are many online tools that can help you find the HS code for your products. Some of them are free, while others require a subscription or a fee. Some examples of online tools are:
WCO HS Database: This is the official database of the WCO that contains the full list of HS codes and their descriptions. You can search by keyword, category, or code number. You can also download the database in PDF or Excel format.
Trade Tariff: This is a tool provided by the UK government that allows you to find the HS code and tariff rate for your products. You can search by product name or code number. You can also browse by chapter or section.
Trade Map: This is a tool provided by the International Trade Centre (ITC) that allows you to find the HS code and trade statistics for your products. You can search by product name or code number. You can also filter by country, region, year, etc.
Consult an expert: If you are not sure about the HS code for your products, you can consult an expert who has experience in international trade and customs clearance. You can find an expert through your local chamber of commerce, trade association, freight forwarder, customs broker, or online platform.
Contact Saudi customs: If you have any questions or doubts about the HS code for your products, you can contact Saudi customs directly. You can call their hotline at +966 9200 05700 or email them at [email protected].

What are the Rules and Requirements of Saudi Customs?

Once you have found the HS code for your products, you need to follow the rules and requirements of Saudi customs to ensure a smooth and hassle-free import or export process. Here are some of the main rules and requirements:

1. Obtain an import or export license:

Depending on the type and value of your products, you may need to obtain an import or export license from the relevant authorities in Saudi Arabia. For example, if you want to import food products, you need to obtain a license from the Saudi Food and Drug Authority (SFDA). If you want to export petroleum products, you need to obtain a license from the Ministry of Energy.

2. Prepare the required documents:

You need to prepare and submit the required documents for your import or export shipment. Some of the common documents are:

Commercial invoice: This is a document that shows the details of your transaction, such as seller name and address, buyer name and address, product description and quantity, unit price and total value, HS code, terms of payment and delivery, etc.
Certificate of origin: This is a document that shows the origin of your products, such as country of manufacture, production, or growth. It is used to determine the tariff and preferential treatment of your products. You can obtain a certificate of origin from your local chamber of commerce or trade association.
Bill of lading or air waybill: This is a document that shows the details of your shipment, such as carrier name and address, shipper name and address, consignee name and address, port of loading and discharge, mode of transport, number and weight of packages, marks and numbers, etc.
Packing list: This is a document that shows the details of your packing, such as number and type of packages, dimensions and volume, net and gross weight, HS code, etc.
Other documents: Depending on the nature and destination of your products, you may need to provide other documents, such as health certificate, phytosanitary certificate, halal certificate, inspection certificate, etc.

3. Pay the customs duties and taxes:

You need to pay the customs duties and taxes that apply to your products. The customs duties are based on the HS code and the value of your products. The customs value is calculated by adding the cost, insurance, and freight (CIF) of your products. The customs duty rate varies from 0% to 20%, depending on the product category and the origin country. You can check the customs duty rate for your products on the Saudi customs website.

The taxes are based on the type and quantity of your products. The taxes include:

Value-added tax (VAT): This is a tax that applies to most goods and services in Saudi Arabia. The VAT rate is 15% as of July 2020. You need to register for VAT if your annual turnover exceeds SAR 375,000. You can claim VAT refund if you export your products from Saudi Arabia.
Excise tax: This is a tax that applies to certain goods that are harmful to health or the environment, such as tobacco products, energy drinks, carbonated drinks, etc. The excise tax rate varies from 50% to 100%, depending on the product type. You need to register for excise tax if you produce or import these goods in Saudi Arabia.
Customs fees: These are fees that cover the administrative costs of customs clearance, such as inspection fees, storage fees, handling fees, etc. The customs fees vary depending on the mode of transport, the type and value of your products, etc.
Clear your goods from customs: You need to clear your goods from customs by submitting the required documents and paying the customs duties and taxes. You can clear your goods yourself or hire a customs broker to do it for you. You can track the status of your customs clearance on the Saudi customs website or mobile app.

Finding and using HS code for Saudi customs is an essential step for any import or export business in Saudi Arabia. HS code helps you determine the customs duties and taxes that you have to pay for your products. It also helps you comply with the import and export regulations of Saudi Arabia and other countries.

How to find HS code?

To find HS code for your products, you can use online tools, consult an expert, or contact Saudi customs directly. To use HS code for Saudi customs, you need to follow the rules and requirements of Saudi customs, such as obtaining an import or export license, preparing the required documents, paying the customs duties and taxes, and clearing your goods from customs.

The HS code (Harmonized System code) is a six-digit code that classifies products according to their nature, characteristics, and origin. The HS code is used by customs authorities around the world to identify the tariff rates and other trade regulations for imported goods. The HS code is also important for exporters and importers to comply with the rules and regulations of the destination country.

Saudi Arabia is one of the countries that use the HS code system to regulate its foreign trade. The Saudi customs authority has a website where you can search for the HS code of any product that you want to export or import to or from Saudi Arabia. The website also provides information on the customs duties, taxes, and fees that apply to each product category.

One of the product categories that has a significant impact on the Saudi economy is the chemical industry. According to the Saudi customs website, the HS codes for chemical products range from 28 to 38. These include organic and inorganic chemicals, pharmaceutical products, fertilizers, plastics, rubber, and other chemical products.

The global demand for chemical products has been affected by various factors, such as the COVID-19 pandemic, the environmental concerns, the geopolitical tensions, and the technological innovations. According to a report by Deloitte, the global chemical industry is expected to grow by 3.6% in 2021, after a decline of 2.4% in 2020. The report also predicts that the demand for chemical products will vary by region and segment, depending on the recovery pace and the consumer preferences.

For Saudi Arabia, the chemical industry is one of the key sectors that contributes to its economic diversification and development. According to a report by Frost & Sullivan, Saudi Arabia is the largest producer and exporter of chemicals in the Middle East and Africa region, accounting for 69% of the regional production and 52% of the regional exports in 2019. The report also states that Saudi Arabia has a competitive advantage in terms of low-cost feedstock, strategic location, and government support.

However, Saudi Arabia also faces some challenges in maintaining its position in the global chemical market, such as the volatility of oil prices, the competition from other regions, the environmental regulations, and the need for innovation and digitalization. Therefore, Saudi Arabia needs to adopt new strategies and technologies to enhance its productivity, efficiency, quality, and sustainability in the chemical industry.

References:

http://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

http://www.wcoomd.org/en/about-us/wco-members/membership.aspx

https://www.science.org/doi/10.1126/science.aaa3141

https://www.customs.gov.sa/en/customsTariffSearch

https://ww2.frost.com/wp-content/uploads/2020/09/Saudi-Arabia-Chemicals-Market-Report.pdf

https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs-nomenclature-2017-edition.aspx

https://www.trade-tariff.service.gov.uk/sections

https://www.sfda.gov.sa/en/Pages/default.aspx

https://www.mewa.gov.sa/en/Pages/default.aspx

https://www.customs.gov.sa/en