RIYADH, 8 January — A customs-free storage facility has been launched recently at Jeddah Islamic Port as a first step toward establishing free-trade zones at the Kingdom's seaports. Customs department sources said similar facilities would be established in Dammam, Yanbu and Jizan shortly to promote trade.
"The storage facility established on the eastern part of the Jeddah port will be more flexible in terms of imports, re-exports, transshipment and transit trade," the sources told Arab News. They said the facility would have all the features of a free-trade zone.
"The facility will be exempted from all customs duties and it excels similar facilities in other countries in terms of flexibility," the sources said.
The sources said the customs-free storage in the Eastern Province would be launched very soon. "The infrastructure is already there and it requires only minor administrative procedures to be completed," they said.
The customs procedures followed at the new facility would be very simple for both exporters and importers, they said, adding that it would enable the facility to compete with similar centers in the Gulf region.
Customs department officials had visited free trade zones in the Gulf and Syria before finalizing the systems for the facility.
The Saudi customs law allows importers to retrieve customs duties paid by them when they re-export the products to a third country after fulfilling the conditions mentioned in Articles 26 and 90 of the law.
The Saudi government has approved transit and transshipment facilities through its seaports in Jeddah, Dammam and Jubail. Plans are also under way to establish duty free shops at international airports in Jeddah, Riyadh and Dammam.
