Digital Transformation in Customs Clearance: From Paper to Automation

In recent years, Saudi Arabia has witnessed a major transformation in the customs clearance sector, shifting from traditional paper-based procedures to a fully automated digital system. This transformation is not only technical but also strategic, aligning with the goals of Saudi Vision 2030 to build an integrated digital economy and a global logistics hub connecting three continents.

Saudi Vision 2030 and the Goals of Saudi Customs Saudi Vision 2030 aims to make the Kingdom a central hub for global trade by developing customs systems and improving the logistics business environment.To achieve this, the Zakat, Tax, and Customs Authority has set several ambitious goals, including:

• Reducing customs clearance time to less than two hours from the shipment’s arrival to final release.
• Achieving 100% transition to electronic transactions.
• Enhancing the efficiency and integration of government platforms such as Fasah and Saber.
• Increasing transparency and reducing operational costs for importers and customs brokers.
• Improving the Kingdom’s ranking in the World Bank’s “Trading Across Borders” index.
• Increasing the logistics sector’s contribution to GDP to 10% by 2030.

These goals are part of the national transformation toward a smart digital economy that positions the Kingdom as a global leader in advanced customs services.

From Paperwork to Automation Customs clearance processes used to depend on numerous papers, manual signatures, and slow communication between entities. Today, these processes are fully automated through smart digital systems that enable tracking, payment, and customs release electronically without manual intervention.

Digital transformation has allowed customs brokers and importers to reduce time and costs, while improving data accuracy and speeding up decision-making.

Wazen: The Customs Clearance System Wazen is one of the key local systems supporting digital transformation in the customs clearance sector. It provides an integrated platform to manage all stages of customs transactions through an easy electronic interface.

Key services of Wazen include:

• Customs clearance system and electronic transaction management
• Creating and tracking customs transactions up to the release stage
• Receipt and payment vouchers
• Insurance payment and receipt vouchers
• Issuing customs clearance invoices (advance revenue)
• Creating and managing customs transaction invoices
• Receipt vouchers for advance revenue invoices
• Transport payment vouchers and transport memos
• Transport movement and customs transaction reports
• Account statements and unpaid invoices
• Accounting linkage settings for different branches
• Invoice movement reports for customs clearance
• Policy cost report
• Receipt voucher report

Wazen integrates administrative, financial, and logistical processes in one system, enhancing speed, accuracy, and reducing human error.

Challenges Facing Customs Clearance Companies Despite major digital advancement, customs clearance companies still face challenges that require ongoing technical and administrative development, such as:

• Resistance from some employees to shift from paper systems to digital automation
• Weak technical integration between companies’ systems and government platforms
• Need for qualified technical staff
• Difficulty keeping up with frequent updates in customs regulations
• Need to enhance cybersecurity and data protection
• Compliance with constantly updated government regulations
• High pressure to complete transactions within the 24-hour clearance initiative

Overcoming these challenges will determine which companies remain competitive in the digital future.

Requirements for Customs Clearance Licensing in Saudi Arabia To obtain a license to practice customs clearance, companies must comply with several requirements set by the Zakat, Tax, and Customs Authority, including:

• A valid commercial registration that includes customs clearance activity
• Official registration on the Fasah platform
• An electronic authorization from the cargo owner to the customs broker
• Submitting required documents such as invoice, bill of lading, certificate of origin, and packing list
• Paying customs duties electronically
• Product registration in Saber for restricted goods
• Commitment to fast-track clearance programs enabling release within 24 hours

Meeting these requirements ensures smooth dealings with customs and reduces the risk of shipment delays or rejected transactions.

Types of Customs Duties in Saudi Arabia Customs duties vary depending on product type and country of origin:

Customs duties in Saudi Arabia vary according to the type of product and its country of origin. Basic customs duties are generally 5% and apply to most imported goods, while protective duties range from 15% to 20% to support local industries. There is also a customs service fee of 0.15%, with a minimum of 15 SAR and a maximum of 500 SAR. Duties on agricultural and food products can reach up to 40% to encourage national production.

For example: if goods are valued at 100,000 SAR, then 5% (5,000 SAR) is applied, plus service fees for a total of approximately 5,150 SAR.

Government Platforms for Customs Clearance

• Fasah Platform:The national platform linking government entities with ports and airports, offering more than 130 e-services for faster customs clearance.
• Saber Platform:A system for issuing conformity certificates to ensure imported products comply with Saudi standards before entering the market.
• ZATCA (Zakat, Tax & Customs Authority):The entity responsible for implementing customs policies, tax administration, and operational improvement through digital transformation.
• 24-Hour Clearance Program:A government initiative to make the Kingdom among the fastest countries in processing trade transactions.

The Future of Customs Clearance Transformation Digital transformation in customs clearance has become a competitive necessity for every company involved in importing or logistics services.Companies adopting systems like Wazen are seeing significant operational gains, reduced clearance times, lower costs, minimized waste, and improved accuracy in financial and performance reporting.

Automation also enhances transparency, improves customer experience, and increases compliance with government requirements.

ConclusionThe digital transformation journey in customs clearance is a strategic step toward achieving Vision 2030 and building a technology-driven, efficient economy.Saudi Arabia’s progress, led by ZATCA and supported by systems like Wazen, reflects a strong commitment to becoming a global logistics hub grounded in automation, smart analytics, and operational transparency.

Bottom line: Those who adopt digital transformation today will lead the market tomorrow.