https://arab.news/43phw
RIYADH: Saudi Arabia has launched a new customs exemption service designed to enhance the competitiveness of its industrial sector by removing duties on raw materials used in experimental production.
Experimental production involves creating goods or services on a trial basis to test new ideas, processes, or technologies before full-scale implementation. This approach helps assess feasibility, identify potential challenges, and gather data for further refinement.
The initiative, introduced by the Ministry of Industry and Mineral Resources via the Senaei platform, aims to support industrial facilities with manufacturing licenses that are still in the construction phase.
This effort aligns with the ministry’s commitment to providing support and incentives to industrial stakeholders at every project stage, as part of the Kingdom’s broader goal to boost industrialization and achieve a target of 36,000 plants by 2035.
The latest version of the Senaei platform offers over 30 electronic services to investors in the industrial sector.
The new service specifically aids industrial facilities in research and development, experimental production activities, workforce training in production procedures, and quality assessments of materials.
To apply for the exemption, applicants must log in with their facility’s account on the Senaei platform, submit their application through the designated icon, and await the exemption decision.
In April, Saudi Arabia implemented customs duty exemptions for various manufacturing products as part of its efforts to stimulate the industrial sector.
The exemptions applied to raw materials, semi-processed goods, packaging materials, as well as machinery, equipment, and spare parts.
In March, the Ministry of Industry and Mineral Resources took steps to alleviate the financial burden on businesses with valid import licenses. This decision aimed to facilitate the importation of specific products, enhancing competitiveness and boosting profitability for these firms.
The initiative is expected to allow businesses to allocate more funds toward operations and expand production capabilities, fostering growth and development within the Kingdom’s industrial sector, as reported by the Saudi Press Agency at the time.
The ministry also clarified that the customs exemptions also cover fully manufactured products and essential materials for production processes.
The sustained growth of Saudi Arabia’s industrial sector is highlighted by cumulative manufacturing assets reaching $132 billion since the launch of the economic diversification strategy, Vision 2030, in 2016.