Trade policy review report by the secretariat

3.2  Measures Directly Affecting Exports

3.2.1  Export procedures and requirements

1.1.  Registration and documentation requirements for exports, in general, are similar to those for imports. Exporters must be registered with the MCI and food exporters must register with the SFDA. Pre-departure declarations for exports must be submitted to Saudi Customs. According to the authorities, all exports are subject to inspection or X-ray scanning.

1.2.  Exporters must obtain certificates of origin from the MCI for all their exports. In addition, some products under export control are subject to export licensing (Section 3.2.3). For exports of food, certificates issued by the SFDA are required.

3.2.2  Export taxes and duties

1.1.  On 10 September 2013, Saudi Arabia eliminated export duties on hides and skins. According to the authorities there are no export taxes.

3.2.3  Export control

3.2.3.1  Export prohibitions

1.1.  According to Saudi Customs, Saudi Arabia does not maintain any export prohibitions/restrictions on any trading partners.

1.2.  Saudi Arabia maintains export bans on seven categories of products (Table 3 .13). Compared to the list of export prohibitions in the previous TPR, it appears that exports of wood and of antiques items are no longer prohibited.

Table 3.13 Export prohibitions, 2015

Product

Livestock and horses of all kinds (male and female)

Baby milk of all kinds

Animal feeds such as barley and Sudanese sorghum

Poultry feeds such as yellow corn and soya beans

Natural sand and sand containing minerals

Gas cylinders with the specifications of the National Gas & Industrial Company (GASCO)

Zamzam water

Source: Information provided by the authorities.

3.2.3.2  Export licensing

1.1.  There are 10 categories of goods subject to export licensing requirements (Table 3 .14). Exports of antiques are no longer prohibited but subject to approval (licensing) from the Saudi Commission for Tourism and Antiquities. Exports of any wildlife species (animals or plants) and their products must be accompanied by a CITES permit from the Saudi Wildlife Authority. Exports of crude oil and its derivatives are subject to automatic licensing requirements.

Table 3.14 Products requiring export licences, 2015

HS code	Description	Licensing authority
01 01 10 10	Horses, pure-bred	Equestrian Club
01 01 10 20	Horses, pure-bred	Equestrian Club
01 01 90 10	Horses, pure-bred	Equestrian Club
01 01 90 20	Horses, pure-bred	Equestrian Club
10 01	Wheat	Grain Silos and Flour Mills Organization
10 03 00 00	Barley	Ministry of Finance
10 05 90 10	Golden corn	Ministry of Finance
10 05 90 20	White corn	Ministry of Finance
11 01 00 10	Wheat flour	Ministry of Finance
12 01	Soya beans	Ministry of Finance
19 01 10 10	Milk-based infant food	Ministry of Finance
19 01 10 20	Milk-based infant food	Ministry of Finance
25 05	Sand	Ministry of Petroleum and Mineral Resources
25 06 21 10	Sand mixed aggregates	Ministry of Petroleum and Mineral Resources
25 06 21 20	Sand mixed aggregates	Ministry of Petroleum and Mineral Resources
25 15 11 00	Marble	Ministry of Petroleum and Mineral Resources
25 17	Stone mixtures	Ministry of Petroleum and Mineral Resources
25 22	Limestone	Ministry of Petroleum and Mineral Resources
27 09	Crude oil	Ministry of Petroleum and Mineral Resources
27 10, except Naptha	Fuels	Ministry of Petroleum and Mineral Resources
27 11	Gases, including liquefied gases	Ministry of Petroleum and Mineral Resources
27 14	Asphalt	Ministry of Petroleum and Mineral Resources
28 44	Radioactive materials	Ministry of Interior
28 45	Radioactive materials	Ministry of Interior
90 22 19 10	Radioactive materials	Ministry of Interior
90 22 19 90	Radioactive materials	Ministry of Interior
29 03 19 10 29 03 45 29 03 49	Ozone depleting materials	Presidency of Meteorology and Environment
30 03	Medicines	Saudi Food and Drug Authority
30 04	Medicines	Saudi Food and Drug Authority
73 11 00 30	Filled gas cylinders	Ministry of Petroleum and Mineral Resources
84 07 90 00 84 08 80 00 84 11 84 12 80 00 84 13 50 00 84 13 60 00 84 13 70 00 84 13 81 00 84 32 84 33 87 01 10 00 87 01 30 00 87 01 90 00	Agricultural machinery	Saudi Agricultural Bank
85 48 10 00	Scraps of batteries, etc.	Presidency of Meteorology and Environment
Different headings	Wild fauna and flora, and products thereof	Saudi Wildlife Authority

Source: Information provided by the authorities.

1.2.  Exporters must obtain licences from the relevant authorities before submitting export declarations. Procedures for export licence applications are similar to those for import licences. There are no licence fees.

3.2.4  Export finance, insurance, guarantees and assistance

1.1.  The Saudi Export Programme (SEP) is the official national export credit agency, with the objective of diversifying Saudi Arabia's non-oil exports through the provision of financing to Saudi exporters or importers in other countries of non-oil goods from Saudi Arabia.⁷⁸ The authorities stated that, based on commercial considerations, the SEP facilitates trade transactions through local and foreign banks, and develops its own assessment and classification of the political and commercial risk of relevant markets. The financing offered by the SEP includes finance (i.e. loans) and credit guarantees. According to the authorities, these financial products are made on commercial market-based terms. To be eligible for a loan/guarantee the application must show local value added of at least 25%. The SEP may provide loans for up to 100% of the transaction value, if the transaction value is SAR 100,000 or more. The maximum periods for loan repayment are: two years for consumable goods and raw materials; seven years for consumable durables and semi-capital goods; and 15 years for capital and durable goods or other long-term projects. With regard to guarantees, the SEP offers to cover up to 90% of non-payment risks, including commercial and political risks. In 2014, the SEP approved SAR 2.1 billion in its operations, among which SAR 1,056 million as loans and SAR 1,071 as guarantees (Table 3 .15).

Table 3.15 Export finance and guarantees, 2012-14

(SAR million)

Goods and products	2012		2013		2014
	Finance	Guarantees	Finance	Guarantees	Finance	Guarantees
Manufactured metal products, machines and equipment	18.75	0.00	11.25	0.00	112.50	0.00
Chemical and plastic products	1,387.50	1,998.00	2,418.75	917.00	0.00	954.00
Capital projects	0.00	13.05	0.00	6.00	67.50	0.00
Credit lines	502.50	0.00	431.25	0.00	243.75	0.00
Other	0.00	54.11	0.00	390.00	632.81	117.00
Total	1,908.75	2,065.16	2,861.25	1,313	1,056.56	1,071.00

Source: SAMA (2015), Fifty-First Annual Report. Viewed at: http://www.sama.gov.sa/en-US/EconomicReports/AnnualReport/5600_R_Annual_En_51_Apx.pdf.

1.2.  In addition to the SEP, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provides export credit guarantees to member States; it also provides member States with investment insurance and guarantees against country risks.⁷⁹

1.3.  The Saudi Export Development Authority (Saudi Exports) is an independent national authority that provides assistances with the diversification of exports through three strategic themes: enhancing small-and-medium-sized enterprises' export readiness; generating opportunities for export-ready businesses; and advocating ecosystem efficiency and international market access. Saudi Exports provides administrative, technical, and consultative assistance for marketing exports and attracting foreign investors; it also cooperates with trade representatives abroad and chambers of industry and commerce to identify best exporting practices, create new opportunities for exporters, and improve the export environment.

3.2.5  Free zones

1.1.  There is no legislation in Saudi Arabia other than the GCC United Customs Law pertaining to the establishment of free zones or free economic zones. The authorities note that no free zones have been set up in Saudi Arabia.