- September 28, 2023
- By: Verger Group
- in: News
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.
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.
It allows for accurate classification of goods in order to facilitate efficient customs clearance and trade regulation.
They help to monitor trade activities, shape trade policies, and plan economic activities.
It establishes uniform tariffs, thereby increasing government revenue and promoting fair trade practices.
It aids in the prevention of illegal activities such as smuggling, thereby improving national security.
It ensures that quality standards and product regulations are met.
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.
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.
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.
Depending on your role and purpose, you may need to select “Importers” or “Manufacturers” as your service type.
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.
Fill in the blanks with the necessary information about your product, such as its name, type, description, and any other relevant details.
You will reach a section in which you must specify the product categories. This is the section where you will enter your 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.
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.
Fill out the rest of the product registration form with all of the required information.
Submit your application after verifying all details and ensuring that your HS Codes are correctly included.
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.
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 firstname.lastname@example.org