Rules of Returned Goods Customs Duties Exemptions (ZATCA Board Resolution No. (10-3-24) dated 11/11/1445H)

Article (1): Definitions The following words and expressions shall have the meanings ascribed thereto hereunder unless the context indicates otherwise ZATCA: Zakat, Tax and Customs Authority. Board: ZATCA’s Board of Directors. Common Customs Law: The Common Customs Law of the GCC States issued under Royal Decree No. (M/41) dated 03/11/1423 H. Implementing Regulations: The Implementing Regulations of the Common Customs Law issued under the Ministerial Resolution No. (2748) dated 25/11/1423 H. Rules: Rules of Returned Goods Customs Exemptions Tax “Customs Duties”: Amounts levied on goods under the provisions of the Common Customs Law. Goods: Any natural material or any animal, agricultural, industrial, or intellectual product. Returned Goods: The goods exported from KSA and then re-imported. Origin of the Goods: The producing country, whether these goods are natural resources, agricultural crops or animal or industrial products. Importer: The natural or legal person importing the goods.

Article (2): Application Scope Without prejudice to the relevant applicable laws and regulations, these Rules shall be applicable to the returned goods set out in Article (105) of the Common Customs Law. 4 <!-- page 5 --> Chapter II: Exemption Rules

Article (3): Goods of National Origin The returned goods of the national origin shall be exempted from the custom duties in accordance with the following terms and conditions: 1. ZATCA’s approval shall be obtained before the goods leave the customs office. 2. The issued declaration shall be submitted along with the full attachments upon reimporting. 3. The goods shall have clear, non-removable indelible indication of origin, according to the nature of each product. 4. The goods shall be in the same condition as when exported.

Article (4): Foreign Goods The returned foreign goods, proven to have been re-exported, shall be exempted from the customs duties in accordance with the following terms and conditions: 1. ZATCA’s approval shall be obtained before the goods leave the customs office. 2. The importer in whose name the goods were imported shall be the same person who reexported them. 3. The goods shall be re-imported within one calendar year after the date of their re-export. 4. Their customs duties shall be paid and were not refunded. 5. A re-export declaration shall be submitted, indicating the goods origin, specifications and distinctive marks, and the goods shall have the same origin, specifications and distinctive marks. 6. All customs declarations and their attachments pertaining to the previous imports and exports for the goods intended to be exempted shall be submitted. 7. The returned goods shall be in the same condition as when re-exported. 8. The goods shall have clear, non-removable indelible indication of origin, according to the nature of the product. 5 <!-- page 6 -->

Article (5): Temporarily Exported Returned Goods Exemption 1. The temporarily exported goods shall be exempted from the customs duties in accordance with the requirements stated in the Implementing Regulations. 2. The customs duties shall be levied on the value increase of the goods temporarily exported for completion of manufacturing or repair. Chapter III: Final Provisions

Article (6): General Provisions In application of these Rules, ZATCA may issue any instructions or guides clarifying the returned goods exemption procedures.

Article (7): Applicability These Rules shall be applicable to all returned goods in accordance with the Common Customs Law. Any provision hereof that is in conflict with any provisions of the Common Customs Law, its Implementing Regulations and/or the applicable international conventions shall be deemed null and void.

Article (8): Publication & Entry into Force These Rules shall be issued and amended by a Board resolution and shall enter into force as of the date of publication in the Official Gazette 6 <!-- page 7 --> 7 Scan this code to view the last version and all published documents Or visit the website zatca.gov.sa