Priority Program (Saudi Authorized Economic Operator)

The Priority Program 'Saudi Authorized Economic Operator' is a program that adopts the concept of partnership between the Zakat, Tax, and Customs Authority (ZATCA) and commercial facilities. It serves as a means to enhance global supply chain security, facilitate trade, and elevate its advantages. It is considered a global standard in international trade.

The program has been part of the World Customs Organization's SAFE Framework of Standards to Secure and Facilitate Global Trade since 2005. In addition, it represents one of the components of the Trade Facilitation Agreement of the World Trade Organization, which came into effect on February 22, 2017. It supports commercial facilities that have applied to the program as trusted partners in terms of standards of commitment and low risk, with several advantages, including cost reduction, expedited clearance at Kingdom-affiliated ports, and facilitation of customs procedures.

Joining the Priority Program 'Saudi Authorized Economic Operator' comes with several prerequisites. First and foremost, the applicant must be a resident legal entity (either a company or establishment). Furthermore, the applicant needs to be registered with the ZATCA at least one year prior to the application submission date. There must be no instances of zakat, tax, or customs evasion, fines for non-cooperation, or instances of customs smuggling on the facility within the past ten years or since its registration, whichever comes first. Additionally, the facility must not have experienced any delays in supplying records and submitting data to the authority upon request over the last three years or since its registration, whichever comes first. The facility must not have any unpaid dues or outstanding returns to ZATCA unless there are ongoing disputes with the authority or secretariat and no final, binding ruling has been issued in these matters. Compliance with timely submission of declarations and payment of zakat and tax dues during the last two years or since registration, whichever comes first, is also required. The facility must commit to providing valid data to the authority before the arrival of the shipment, with no violations of the statement's earlier submission obligation. Complete customs data for maritime shipments over the last two years must be pre-submitted as well. Moreover, the facility should have an integrated operating system (ERP) for electronically storing records and documents. An approved policy for training employees on security aspects and self-audit operations of the facility, continuous performance measurement, and an adopted and implemented organizational structure are also required. Finally, a liaison officer holding a customs broker certificate should be appointed in the entity to coordinate between the authority and the facility.

The registration form must be completed and submitted to customs in order to participate in the program. Customs, in turn, assesses the facility and its eligibility to join, assigning a dedicated team to verify the facility's adherence to the program's standards and requirements. Approval as an authorized economic operator in the Kingdom is granted upon meeting the necessary standards and requirements. Subsequently, customs appoint an account manager for the economic operator.

To benefit from the Priority Program 'Saudi Authorized Economic Operator,' it is necessary to have a liaison officer who is an expert in customs affairs and capable of coordinating with customs and providing them with information. Additionally, the liaison officer should promote awareness and development within the institution to which he is affiliated. Moreover, the institution should commit to providing customs with valid data before the arrival of shipments and adhering to effective policies for information confidentiality and security.

Beneficiaries of the Priority Program 'Saudi Authorized Economic Operator' enjoy several advantages, including the appointment of a dedicated account manager for the facility within the Zakat, Tax, and Customs Authority to streamline communication and provide necessary support. They also receive a designated fast lane for their facility at land customs ports, a thirty-day deferment for customs duties from the shipment clearance date according to the law, priority in all customs procedures, a reduction in inspection rates based on risk analysis, exemption from financial guarantees for the export of liquid chemical materials from the Ministry of Energy, and the ability to benefit from advantages offered in similar programs in other countries through mutual recognition agreements as per the law. Additionally, they can utilize the feature of advance rulings, use the program's logo in marketing, and publish a list of authorized economic operator members on the authority's website. Furthermore, they gain membership in the advisory group for the authorized economic operator and offer free training courses specialized in customs procedures for the authorized economic operator.