Saudi Arabian Customs implements full-link digital monitoring of imported goods under the unified administration of the FASAH intelligent valuation system and ZATCA (Zakat, Tax and Customs Authority). Under the DDP (Delivered Duty Paid) model, some logistics providers adopt under-declared cargo values to cut customs duties and 15% VAT costs. This practice constitutes a serious violation. Once detected, it will expose shipments to multiple risks.
The most immediate consequence of under-declaration is heavy fines and mandatory supplementary tax payment. In accordance with the GCC Common Customs Law and the ZATCA penalty framework, if the system verifies that the declared cargo value is lower than the actual transaction price, Customs will reassess customs duties and VAT based on the true value, and impose an administrative fine equivalent to 100% to 300% of the cargo value. In addition, storage fees and inspection charges incurred during port detention shall be borne by the shipper, making the overall cost far higher than that of compliant declaration.
In terms of cargo, under-declaration will very likely trigger red-channel customs inspection, resulting in prolonged detention, return shipment or even confiscation. Saudi Customs adopts a zero-tolerance policy for misdeclaration and tax evasion. Severe cases may lead to criminal liability. Some unregulated special lines market their services at low prices by relying on under-declaration. If customs clearance fails, shippers often lose both goods and payment with no effective recourse for complaints.
In the long run, under-declaration records will be logged into the Saudi Customs risk control system, which will substantially increase inspection rates for subsequent shipments and severely disrupt supply chain stability. Enterprises are advised to select formal DDP special lines with local customs clearance qualifications, declare cargo values and commodity descriptions truthfully, and prepare complete SABER certificates and certificates of origin. This compliant approach supports sustainable business development in the Saudi market.
ONTASK LOGISTICS focuses on the Saudi special line, providing customers with efficient and reliable Saudi cargo, with a focus on the Middle East region. With overseas warehouses in Jeddah and Riyadh, along with a self-managed Chinese delivery team, we empower Chinese products to go global and benefit all humanity!