Saudi Arabia has its own HS code. That means that products sold in the country need to be marked with an Arabic-only code that tells merchants precisely what they’re selling and where it came from, among other things. Finding your Saudi HS code is a little more complicated than finding your European or American counterpart. However, having your code helps ensure the quality of goods sold in the country and that they weren’t adulterated during production. Here’s how to find your Saudi HS Code so you can start tracking what you buy and sell in the kingdom.
What is a Saudi HS Code?
HS stands for Harmonized System, which is a system for classifying goods. In Saudi Arabia, the HS code is Arabic only, whereas in other countries, it has both Arabic and English components. The code tracks and identifies goods and prevents fraudulent activities like smuggling. Each HS code comprises six digits, with the first two representing the product category and the final four representing the product itself. For example, the HS code for bicycles is 8421. The first digit represents the product category, in this case, transportation. The second digit represents subcategories, in this case, bicycles and motorcycles. The final four digits represent the product itself, in this case, the type of bike.
Why is the Saudi HS Code Important?
The Saudi HS code is essential because it helps to regulate the market. Keeping track of goods by their code helps reduce black market activities and ensures that the quality of goods is maintained. In the kingdom, you’re required by law to mark your products with the correct code to avoid fines. If you fail, you could be fined up to SAR 10,000. If it’s discovered that you intentionally mismarked goods, you could be fined up to SAR 50,000 and imprisoned for up to one year.
How to Find Your Saudi HS Code
There are two ways to find your Saudi HS code: online and in person. The online method is more convenient, but if you’re in Saudi Arabia, you’ll have to visit your local Customs & Excise office. To find your Saudi HS code online, you can use the HS Code Directory tool to find your Saudi HS code. However, the website is only in Arabic, so you’ll have to use a translator. If you’re in Saudi Arabia and want to find your Saudi HS code in person, visit your nearest Customs & Excise office.
Identifying Your Product
Once you find your Saudi HS code, you’ll need to identify the product. Saudi Customs & Excise has a list of goods that are prohibited or restricted in the kingdom. However, you can also use your Saudi HS code to determine what products fall under it. Go to the Saudi Customs & Excise website and enter your code. You’ll then be presented with product subheads corresponding to your code.
Using the Saudi HS Code Table
Once you’ve identified the product under your Saudi HS code, you can use the Saudi Customs & Excise table to determine its classification. The table will tell you if it is: For example, products that are “useful” or “raw materials” are exempt from Customs clearance. Products that are “daily necessities” or “manufactured goods” are subject to Customs clearance. You might notice that the table lists HS codes for neighboring countries. This is because Saudi Arabia is a significant trading partner. Goods from other countries, including Qatar, UAE, Bahrain, and Kuwait, can freely enter Saudi Arabia. You’ll need to find the corresponding HS code if importing goods from another country. The table is a helpful resource because it lists all governing bodies responsible for assigning codes to specific countries.
Tracking Your Saudi HS Code
Keeping tabs on the things you buy and sell in Saudi Arabia is much easier when you track your Saudi HS code. It is also beneficial when you are doing your taxes because it informs you of the things you purchased and the places from which they originated. Go to the website of Saudi Customs & Excise, input your code, and you will be presented with the tracking information for your purchase. You will be required to choose a product category at this stage. After you select, a pull-down menu labeled “Tracking number” will become visible to you. First, choose “Yes,” and enter your code when prompted. You will then be shown a list of the tracking information for your product, including the date it was taken to Customs, the date it was cleared, and the date it was brought in to enter the country.
Benefits of Knowing Your Saudi HS Code
There are several advantages to knowing your Saudi HS code. First and foremost, it lets you maintain tabs on the things you sell and purchase. In addition, it provides you with data on the country’s imports and exports, which is valuable information to have if you intend to engage in commercial activity within the kingdom. It is helpful to know the product’s code if you are importing products since the code will inform you precisely what it is that you are importing. The code is helpful if you are exporting things since it provides the seller with specific information regarding the items being shipped to them.
Conclusion
Being familiar with your Saudi HS code is necessary for business within the kingdom. It enables you to keep track of what you are importing and exporting, which is helpful if you are planning to expand your business or if you are required to file taxes. It would be best if you kept in mind that the discount code does not apply to all products. For instance, food products require unique codes; therefore, you will need to locate the food code that applies to your specific item. You will need to be familiar with your Saudi HS code if you plan to open a branch of your company in Saudi Arabia or sell products within the country’s borders. Thankfully, locating your code is simple if you know where to search.