Arab News, Thu, Sep 19, 2024 | Rabi al-Awwal 16, 1446
New customs exemption introduced to support experimental production in Saudi Arabia
Saudi Arabia:
Saudi Arabia has launched a new customs exemption
service designed to enhance the competitiveness of its industrial sector by
removing duties on raw materials used in experimental production.
Experimental production involves creating goods or
services on a trial basis to test new ideas, processes, or technologies before
full-scale implementation. This approach helps assess feasibility, identify
potential challenges, and gather data for further refinement.
The initiative, introduced by the Ministry of
Industry and Mineral Resources via the Senaei platform, aims to support
industrial facilities with manufacturing licenses that are still in the
construction phase.
This effort aligns with the ministry’s commitment
to providing support and incentives to industrial stakeholders at every project
stage, as part of the Kingdom’s broader goal to boost industrialization and
achieve a target of 36,000 plants by 2035.
The latest version of the Senaei platform offers
over 30 electronic services to investors in the industrial sector.
The new service specifically aids industrial
facilities in research and development, experimental production activities,
workforce training in production procedures, and quality assessments of
materials.
To apply for the exemption, applicants must log in
with their facility’s account on the Senaei platform, submit their application
through the designated icon, and await the exemption decision.
In April, Saudi Arabia implemented customs duty
exemptions for various manufacturing products as part of its efforts to
stimulate the industrial sector.
The exemptions applied to raw materials,
semi-processed goods, packaging materials, as well as machinery, equipment, and
spare parts.
In March, the Ministry of Industry and Mineral
Resources took steps to alleviate the financial burden on businesses with valid
import licenses. This decision aimed to facilitate the importation of specific
products, enhancing competitiveness and boosting profitability for these firms.
The initiative is expected to allow businesses to
allocate more funds toward operations and expand production capabilities,
fostering growth and development within the Kingdom’s industrial sector, as
reported by the Saudi Press Agency at the time.
The ministry also clarified that the customs
exemptions also cover fully manufactured products and essential materials for
production processes.
The sustained growth of Saudi Arabia’s industrial
sector is highlighted by cumulative manufacturing assets reaching $132 billion
since the launch of the economic diversification strategy, Vision 2030, in 2016.