Saudi Arabia Implements Int’l Customs System to Facilitate Temporary Import of Goods

Jeddah Islamic Port (Asharq Al-Awsat)
Jeddah Islamic Port (Asharq Al-Awsat)
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Saudi Arabia Implements Int’l Customs System to Facilitate Temporary Import of Goods

Jeddah Islamic Port (Asharq Al-Awsat)
Jeddah Islamic Port (Asharq Al-Awsat)

Saudi Arabia has started implementing an international customs system that facilitates the temporary import of goods for up to one year without the need to pay any fees, taxes, or undergo customs procedures.

In June, the Zakat, Tax, and Customs Authority started accepting the ATA Carnet temporary admission document at all its land, sea, and air customs points. This step is part of the Kingdom's commitment to the Istanbul Convention on Temporary Admission, supporting the business sector and enhancing Saudi Arabia's status as a global destination for events, exhibitions, and activities.

On Thursday, the Federation of Saudi Chambers announced the issuance of the first ATA Carnet since the official adoption of this system, making Saudi Arabia the 80th country worldwide to implement this international customs system. The document was delivered to Swiss company Richemont.

Logistics expert Zaid Al-Jarba told Asharq Al-Awsat that adopting the ATA Carnet system is a pivotal step in enhancing Saudi Arabia’s logistics environment, adding that the move aligns with the Kingdom’s national transportation and logistics strategy, facilitating international trade by streamlining customs procedures.

He stressed that this system strengthens the country’s infrastructure readiness, supports the growth of the logistics services sector, increases Saudi Arabia’s global competitiveness, and boosts its ability to attract and host international events and exhibitions.

Businesses and interested parties can apply for the ATA Carnet through the Federation’s website and collect it from their headquarters in Riyadh.

The Zakat, Tax, and Customs Authority clarified when announcing the start of the ATA Carnet that eligible goods include items intended for display or use in exhibitions, markets, meetings, or similar events, professional equipment, containers, pallets, packing materials, samples, and other goods related to commercial operations. Additionally, goods imported for educational, scientific, or cultural purposes can also be temporarily admitted under the system.

The Federation of Saudi Chambers has been designated as the authorized guarantor in the Kingdom for the ATA Carnet, approved by the Zakat, Tax, and Customs Authority. The Federation is also the issuing body, with the right to delegate others. Beneficiaries can import goods temporarily under the ATA Carnet without needing to provide financial guarantees.



Lucid Beats Estimates for EV Deliveries

A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
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Lucid Beats Estimates for EV Deliveries

A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)
A Lucid Motors facility is pictured in Costa Mesa, California, US, November 1, 2023. (Reuters)

Lucid Group reported record fourth-quarter deliveries on Monday, surpassing Wall Street expectations for quarterly deliveries, as the Saudi Arabia-backed maker of luxury electric vehicles lowered prices and offered cheaper financing to drive demand.

The company’s shares rose 7.6% before trading began on Monday.

The EV maker has lowered prices and offered incentives including cheaper financing to woo customers away from cheaper hybrid vehicles amid high interest rates.

The company handed over 3,099 vehicles in the fourth quarter ended Dec. 31, compared with estimates of 2,637, according to six analysts polled by Visible Alpha.

That represented growth of 11% over the third quarter and 78% higher than the fourth quarter a year earlier.

Production rose about 42% year-over-year to 3,386 vehicles in the reported quarter, surpassing estimates of 2,904 units.

For 2024, production rose 7% to 9,029 vehicles, topping the company's target of 9,000 vehicles. Annual deliveries grew 71% to 10,241 vehicles.

Lucid started taking orders for its Gravity SUV in November, in a bid to enter the lucrative SUV sector and take some market share from Rivian and Tesla.

Rivian on Friday topped analysts' estimates for quarterly deliveries and said its production was no longer constrained by a component shortage.

But Tesla reported its first fall in yearly deliveries, in part due to the company's aging lineup.

Saudi Arabia’s Public Investment Fund (PIF) first invested in Lucid in 2018, and steadily accumulated more shares until it held a majority ownership when the startup went public in 2021 through a combination with a special purpose acquisition company.

Lucid raised $3 billion from an offering of common stock and an investment by PIF announced in May of last year.

The company also raised $1.75 billion in October through a stock sale that CEO Peter Rawlinson believes will provide Lucid with a "cash runway well into 2026".

Lucid is scheduled to report its fourth-quarter results on Feb. 25.