When it comes to international trade and business operations in Saudi Arabia, one acronym is key: HS Codes. These cryptic codes are more than just numbers; they are the keys to understanding, regulating, and thriving in the Kingdom’s brisk trade landscape. This blog delves into the world of HS Codes in Saudi Arabia, examining their critical role in commerce and how to harness their power for your company’s success. Join us as we decipher the meaning of HS Codes and walk you through their practical application in the Saudi market.
What are HS Codes?
The Harmonized System Codes (HS Codes) are a standardized international system for classifying and categorizing products for customs declarations and trade statistics. Customs authorities, governments, and businesses all over the world use them to facilitate the import and export of goods. HS Codes aid in the uniform classification of products regardless of where they are traded.
Unlike many other countries, Saudi Arabia uses Arabic-only HS codes, which are useful for tracking and identifying products. Each HS code is made up of six digits: the first two represent the product’s broad category, while the last four identify the specific product. Take, for example, the HS code 8421 for bicycles. The first digit denotes the product category, which in this case is transportation. The following digit narrows it even further, identifying bicycles and motorcycles. Finally, the final four digits pinpoint the exact type of bicycle.
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Why are the HS Codes Important in Saudi Arabia?
1. Customs and Trade Facilitation
It allows for accurate classification of goods in order to facilitate efficient customs clearance and trade regulation.
2. Trade statistics
They help to monitor trade activities, shape trade policies, and plan economic activities.
3. Tariff Determination
It establishes uniform tariffs, thereby increasing government revenue and promoting fair trade practices.
4. Anti-Smuggling and Security
It aids in the prevention of illegal activities such as smuggling, thereby improving national security.
5. Consumer Safety and Regulations
It ensures that quality standards and product regulations are met.
6. Market Regulation
It reduces black market activities, maintains product quality, and enforces product marking laws, with penalties ranging from SAR 50,000 to a year in prison for intentional mismarking.
ALSO READ: How To Get A SABER Certificate Quickly? – Verger Group
How to Find Your HS Codes on the SABER Portal
1. Access the SABER Portal
Visit the official SABER portal website (https://saber.sa/en/) to access the SABER Portal. Check that you have the necessary login credentials, or create an account if you don’t already have one.
2. Log in
If you already have an account, login with your credentials. If you are a first-time user, go through the registration process to create an account.
3. Choose the Correct Service
Depending on your role and purpose, you may need to select “Importers” or “Manufacturers” as your service type.
4. Product Registration
Select “Product Registration” or a comparable option. This usually takes you to a form where you can enter information about the product you want to import or manufacture.
5. Enter Product Information
Fill in the blanks with the necessary information about your product, such as its name, type, description, and any other relevant details.
6. Select Categories
You will reach a section in which you must specify the product categories. This is the section where you will enter your HS Codes.
7. Search for HS Codes
Typically, you can search for your HS Codes in the category section by keyword or description. You can search for codes by entering relevant terms related to your product.
8. Choose the Correct HS Codes
Look through the search results for the HS Codes that best match your product. Each code will include a description to assist you in selecting the correct one.
9. Completion of Your Registration
Fill out the rest of the product registration form with all of the required information.
10. Submit Your Application
Submit your application after verifying all details and ensuring that your HS Codes are correctly included.
11. Wait for Approval
Your application will be reviewed by the authorities. After approval, you will be given the necessary permits to import or manufacture your product in Saudi Arabia.
Conclusion
To summarize, knowing your Saudi HS code is critical for businesses operating in the Kingdom. It enables you to effectively track your import and export activities, aids business growth plans, and ensures tax compliance. Whether you plan to open a branch in Saudi Arabia or sell products within its borders, knowing your Saudi HS code is critical. Fortunately, finding your code is simple once you know where to look. Additionally, to conduct export in Saudi Arabia you need the SABER/SASO certificates. VERGER Group can help you obtain those with ease. To get your certificates email us at inquiry@verger-group.com