Post-audit after clearance

Contributing to stimulating the investment work environment by providing outstanding services to importers and exporters, and facilitating all their procedures with professionalism.
To be one of the distinguished logistics centers among the world’s countries, with Saudi Arabia proffering its services.
Providing added value to customers involved in import and export operations, to contribute to enhancing the national economy and to raise the advantages of the support rate of the competitiveness index among all customs partners.

The audit after clearance

It is a regular inspection of commercial systems, sales contracts, financial and non-financial records, inventory, and other assets as a means of measuring and improving compliance with regulatory requirements. It is globally implemented in more than 160 countries of the member states of the World Customs Organization to facilitate clearance and trade operations.

After clearance, a number of different entities are subject to audit, including:

Provisions for post-clearance audit were included in the context of the unified customs law of the Gulf Cooperation Council countries and its executive regulations and explanatory memorandum.

According to the unified customs law, employees of the customs administration have the right to access papers, documents, records, correspondence, commercial contracts, and any other documents, directly or indirectly related to customs operations, and to control them in case of violation, at shipping and transportation institutions, and all natural and legal persons who have a relationship with customs operations. Institutions and persons are required to keep all referred papers for a period of five years from the date of completing customs operations.

Objectives of post-clearance audit

To verify the accuracy of the declared value of the imported goods and ensure that the prices represent all payments, whether direct or indirect, including sales commissions, designs, and intellectual property rights.
To ensure that all customs data is complete according to customs requirements, by examining the systems of the importer, exporter, accounting records, and workplace locations.
Systematic revenue collection.
To ensure that goods subject to special import or export controls have been properly disclosed.
Facilitating international trade for compliant importers.
Developing communication and cooperation links between Saudi Customs and its clients.

Powers and authorities of auditors

Customs regulations and laws provide auditors with the authority and powers to conduct audits at the audited entity’s facility, and these powers include:

Entry and inspection of the facilities of the entities subject to auditing.
Examining the records, systems, and commercial data related to customs data and financial statements.
Asking questions and inquiries to officials of the companies subject to the audit.
Uploading commercial documents and records and keeping them
Inspecting and taking samples of goods and conducting a physical inventory of warehouses.
Customs officials in Saudi Arabia are considered judicial control officers when performing their duties.

Rights of the audited entity:

Notification of the audit

The audited entity shall be notified and coordinated with in advance to arrange a suitable date for the audit, and the notification shall include the date of the visit, the place/site of the audit, and the documents required for the audit. In the event that there are indications of concealing or ignoring documents and evidence related to some violations, Customs has the right to visit the headquarters without prior notice.

Fair examination

Customs is committed to providing a fair examination that ensures that the information provided by the importer is accurate and realistic. The review includes inspection processes carried out by a team supervised by Customs in order to verify the reliability, validity, and safety of the documents and commercial papers related to the import and export process.

Confidentiality of information

The Saudi Customs is committed to maintaining high levels of confidentiality when examining and auditing documents and information, and not disclosing any trade information obtained during the examination except to the extent required to disclose it in the context of judicial procedures, in accordance with the provisions of the unified customs law of the Gulf Cooperation Council countries.

Delivery of a final report on the audit results

The report outlines the work procedures, the scope of the examination, and the result reached by the auditor based on the audit process.

Returning all documents and records to the audited entity

Customs is committed to retaining all paper and electronic documents and records related to the audited entity, in a safe manner and returning them to the entity upon completion of the audit process.

Right to object

Objections to collection decisions may be made within fifteen days to the General Administration of Audit and Follow-up in the Saudi Customs in writing, according to the law. However, this does not suspend the execution unless the amounts claimed are secured by a bank or cash guarantee.

Importer's obligations

Keeping records and documents in a proper manner.

“Entities subject to audit must retain all documents and records related to customs operations and transactions for the period specified in the system (5 years), whether these records are paper or electronic, and must provide the original document within 24 hours upon request.
Cooperation with customs and providing the necessary facilities to complete the auditing process are required.
Entities subject to audit must cooperate with customs officials to facilitate their tasks and provide the required information and records.
They must also respond to all inquiries from auditors.
Employees, department managers, and relevant personnel must be present during the auditing process to answer auditors’ inquiries and questions.

Liability limits.

The owners of goods, employers, and carriers are responsible for the actions of their employees and all workers on their behalf with regard to the fees, taxes, fines, and seizures specified in the regulations that the customs authority collects.

Relationship with Customs Broker.

The importing party is responsible for verifying the accuracy of all expenses and fees, and keeping a copy of the import declaration and confirmed receipts for the broker to pay customs duties and other service fees paid by the broker and the fees charged according to the model provided to the customs authority. The importing party can inquire and review the data provided by the customs broker by communicating directly with Saudi Customs.

Customs Broker's Responsibility

The customs broker is responsible for his own work and the work of his subordinates before importers, exporters, and the Saudi Customs administration.
The customs broker must keep a record for five years, in which he records the summary of customs transactions he has completed on behalf of others, within the conditions set by the administration. This record must include the amount of fees paid to the customs department, the salaries paid to the broker, and any other expenses incurred on transactions. The Saudi Customs administration can access these records at any time without objection from the customs broker.

"Benefits of Compliance"

Proper compliance with customs and regulatory requirements provides several benefits for customs clients, including:

A dedicated fast track lane at customs checkpoints
Priority in all customs procedures
Recommendation of the company for the economic operator program while fulfilling other requirements
The ability to release the shipment before paying the due fees by relying on bank guarantees
Reduced rate of manual inspection and sample analysis.

Refusal to Cooperate with Audit Team after Clearance"

Refusing to cooperate with the audit team after clearance exposes the facility to customs smuggling penalties in addition to other penalties stipulated in the Unified Customs System. Some of these violations include:

Failure to keep records, documents, and papers.
Hindering customs administration employees from performing their duties and exercising their right to inspect and audit. A fine is imposed on anyone involved in this violation.

The penalties that may be imposed on the customs clearance agent in case of a violation is proven.

The Saudi Customs Authority may impose the following penalties on the customs clearance agent and his representative, after conducting the necessary investigation with him, under the supervision of the competent authority in the Saudi Customs Administration and in proportion to the size of his violation of the imposed obligations:

Cancellation of the license and prohibition from practicing the profession permanently
Suspension from work for a period not exceeding two years
A financial penalty not exceeding SAR 5,000 or its equivalent in other GCC currencies
Warning

Customs smuggling

Customs smuggling is the act of importing or attempting to import goods into a country, or exporting or attempting to export goods out of a country, in violation of the applicable laws without paying the customs duties or in violation of the provisions of prohibition or restriction in this system (the law) and other regulations. The following are considered smuggling:

Providing false, counterfeit, or fabricated documents or lists or affixing false marks with the intent of evading the payment of customs duties, either totally or partially, or with the intent of circumventing the provisions of prohibition and restriction.
Increasing, decreasing, or substituting the number of parcels or their contents declared for the suspended duty provided for in Chapter Seven of the Unified Customs Law of the Gulf Cooperation Council countries.

Penalties for Non-Compliance

Civil liability includes, in addition to violators of customs smuggling and related crimes, partners, financiers, guarantors, beneficiaries, intermediaries, clients, donors, transporters, recipients, and senders of goods.

Without prejudice to any other more severe penalties provided by other effective state provisions for smuggling and attempted smuggling, the following penalties shall be imposed:

If the smuggled goods are exempt from customs duties, the penalty shall be a fine not less than 10% of the value of the goods and not exceeding their value, and imprisonment for a period not less than one month and not exceeding one year, or either of these two penalties.
For other goods, the penalty shall be a fine not less than twice the amount of the applicable customs duties and not exceeding the value of the goods, and imprisonment for a period not less than one month and not exceeding one year, or either of these two penalties.
If the smuggled goods are subject to high customs duties, the penalty shall be a fine not less than twice the amount of the applicable customs duties and not exceeding twice the value of the goods, and imprisonment for a period not less than one month and not exceeding one year, or either of these two penalties.

Contacting the Audit Team after Release

If you have any questions or inquiries, you can contact the unified phone number of Saudi Customs at 1918. You can also directly communicate with the Audit team regarding post-release audit matters through the email address

PCA@Customs.gov.sa