Assistant Director General of Customs for Revenues, Dr. Mazen bin Abdulrahman Al-Zamil, stressed the importance of the post-clearance audit initiative. This initiative carried out by the Saudi Customs within the national transformation program 2020 to achieve the Kingdom's vision of 2030, which aims at stimulating the investment environment and making the Kingdom in the distinguished advanced logistics centers among the countries of the world.
He also emphasized that this initiative is part of the facilitation procedures for customs agents (suppliers, exporters and consignees). And it includes shortening the clearance documents from 13 documents to 2 documents only, and shortening the period to 24 hours only.
This came during a workshop about the post-clearance audit initiative that was organized by Asharqia Chamber on Sunday morning (11/2/2018), with the participation of a number of customs officials and in the presence of a group of investors, importers, exporters, who work in customs clearance and interested parties.
Al-Zamil pointed out that this initiative seeks to achieve added value for the customers associated with the import and export operations. It also contributes to the service of the national economy by increasing the advantages of the ratio of supporting the index of competitiveness among all the customs work partners.
He added that the proper compliance with the inspection after the clearance has achieved several benefits for the customs customers. The most important benefits are to get an excellent and fast track at the customs outlets, and to get the company to the program of the economic operator while meeting the other requirements. In addition, one of the benefits is to get the clearance of the consignment before the payment of the fees through relying on bank guarantees, and reduce the proportion of manual examination and analysis of the samples.
On the other hand, he warned of the lack of direct cooperation with the audit team, which exposes the establishment to penalties in customs smuggling, or results in paying a fine no less than 500 riyals and no more than 5000 riyals. The most prominent indicators of non-cooperation are the lack of keeping records, and documents, or impeding employees from carrying out their duties and exercising their right to inspect and check, and the violator of customs declaration in value, type or number.
In addition, he warned against customs smuggling, which is the introduction or attempt to enter or remove goods or attempt to remove them in violation of the legislation in force without paying taxes and customs duties in whole or in part or contrary to the provisions of prevention and restriction contained in this system.
In this regard, he called customs brokers for cooperation with Saudi Customs, which are allowed to impose certain penalties, such as cancellation of the license, suspension from work and a fine.
The Revenue Advisor at the Customs Authority, Faisal Al-Othaim, reviewed the audit initiative after the clearance as well as the rights and obligations of the audit entities. He defined the post-clearance audit as a systematic examination of trading systems, sales contracts, financial and non-financial records, inventory, and other assets. It serves as a means to measure and improve compliance.
He pointed out that the post-clearance audit was applied in more than 160 countries of the members of the World Customs Organization in order to facilitate operations and trade, most notably America, South Korea, Turkey, Egypt and others.
He said that the entities targeted in the process of applying the post-clearance audit are importers, exporters, and customs brokers, as well as other persons or companies participating directly or indirectly in the treatment of imported goods.
Moreover, Al-Othaim pointed out in the context of the application of the audit after clearance to the provisions of this system within the unified customs system of the GCC countries. And its Executive Regulation states that the employees of the Department have the right to inspect papers, documents, records, correspondence, commercial contracts, and documents of any kind directly or indirectly related to customs operations and their seizure when there is any violation.
Al-Othaim summarized the objectives of the audit after clearance that it comes to confirm the value of the declared transaction for the imported goods, and that prices represent all payments whether completed directly or indirectly, including sales commissions, designs and intellectual property rights. Also, making sure that all of the customs data have been completed in accordance with the customs requirements through examining the systems of importer, exporter, accounting records, work sites, and the revenue receivable system. In addition, auditing after clearance has to ensure that goods subject to special import or export controls are properly disclosed, which facilitates the international trade movement of compliant importers.
Al Othaim added that the aim is to assist importers and exporters in understanding the requirements and responsibilities of the Saudi Customs Authority, encouraging compliance, achieving equality, and developing ties of cooperation between Saudi Customs and its customers, as well as to enhance the efficiency of the Saudi Customs Authority, within the framework of the Kingdom's vision of 2030.
He mentioned that the rules and regulations give auditors the power and authority to audit any audited entity, including checking records, inspecting samples of goods and inventory of warehouses, and asking customs officials. While the audited entities have the rights to notify the investigation, to a fair examination, to information confidentiality, and to the right of objection.
