The Zakat, Tax and Customs Authority (ZATCA) has set the rules and conditions for establishing duty-free shops at air, sea, and land ports in compliance with the Common Customs Law. Such rules and conditions include the requirements for the operation of duty-free shops as well as the operating license and other relevant rules.
According to ZATCA, these rules were set following the issuance of a resolution by the Council of Ministers, which allows for the establishment of duty-free shops at the air, sea, and land ports, as well as the sale of goods in these shops to travelers entering and leaving the Kingdom. ZATCA also noted that the resolution will help support supply chains and improve the logistical services provided to duty-free shops, which will allow for a wider variety of products to be sold in these stores. In addition to supporting and promoting the national products showcased at the retail outlets, the duty-free shops will also provide local businesses with an extra sales channel through which to sell their goods to the duty-free operators.
At the same time, ZATCA stated that duty-free shops already exist in the departure lounges of some airports, including King Abdulaziz International Airport, King Khalid International Airport, King Fahd International Airport, and Prince Mohammad Bin Abdulaziz International Airport. ZATCA seeks to expand this practice in the air, sea, and land ports as necessary in collaboration with the legislators at the customs ports.
Duty-free shops at customs ports are defined as retail outlets that allow travelers to purchase goods and products permitted to be traded in the Kingdom and are exempt from customs duties or taxes in accordance with the provisions of the relevant laws, including Article (78) of the Common Customs Law, and Article (12) (1) of the Duty-Free Shops Rules.
According to the terms of the Common Customs Law and its Executive Regulations and any other relevant laws, regulations, and legislation in each nation, duty-free shops are excluded from taxation depending on the location of the store (arrival or departure lounges).