Why has the Saudi DDP become the preferred entry strategy for companies targeting the market?
In Saudi's complex regulatory environment--characterized by mandatory Saber certification and a high-tariff regime-- DDP provides door to door accountability, significantly reducing buyer risk and operational costs. It has become a "clearance key" for Chinese enterprises expanding into Saudi.
Efficient Customs Clearance
Integrated Saber Certification: Saudi customs requires all imported goods to have a Saber Certificate (a product conformity assessment). DDP service providers handle the certificate on behalf of exporters, avoiding clearance delays or returns due to missing documentation.
Seamless Dual Customs Clearance: From export declaration in China to import customs processing in Saudi, the entire process is managed by the service provider, improving delivery efficiency by over 30%. For example, professional logistics firms can shorten gate processing time from 2 minutes to just 10 seconds through document pre-verification and electronic declarations.
Adaptive Compliance Strategies: Saudi has introduced over 160 new localization procurement policies in recent years (e.g., giving preference to locally certified suppliers for government contracts). DDP providers stay current with regulatory changes, helping companies mitigate legal risks.
Cost Control
All-Inclusive Pricing: In traditional logistics, unexpected fees--such as tariffs, VAT (15% in Saudi), and inspection charges -- can arise. Under DDP, all costs (shipping, insurance, duties, etc.) are transparently included in the initial quote, ensuring zero surprise expenses.
Economies of Scale for Cost Reduction: Major logistics players (e.g., Shanghai International, DP World) leverage expansion projects at key hubs like Jeddah Port--such as a 95% increase in refrigerated container capacity--to consolidate transport and lower per-unit costs.
Tax and Duty Optimization: DDP providers utilize free trade zone policies (e.g., the newly planned 18 logistics zones) for tax planning. For instance, assembling products within designated economic zones can exempt part of the import duties.
Localization Enablement
Policy Incentive Alignment: For example, Saudi's Public Investment Fund (PIF) prioritizes investments in logistics and manufacturing. DDP partners can assist businesses in applying for localization subsidies.
Special Economic Zone Integration: Chinese enterprises can establish operations within Saudi-China Special Economic Zones (e.g., at King Salman International Airport), benefiting from streamlined customs, warehousing, and distribution—boosting logistics efficiency by 40%.
Green Channel Advantage: DDP shipments aligned with Saudi green logistics initiatives (e.g., eco-friendly packaging) may receive priority customs clearance and enhance the exporter's ESG rating.
Ontask Express has specialized in Saudi DDP customs-cleared delivery services for 20 years, with full certifications and reliable clearance solutions. 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!