In an important strategic step to enhance the partnership between the public and private sectors in the Kingdom of Saudi Arabia, the Zakat, Tax, and Customs Authority (ZATCA) has recently developed the Saudi Authorized Economic Operator (Saudi AEO) Program, which aims to facilitate trade movement and enhance the security of global supply chains.
The Saudi AEO Program places special emphasis on supporting commercial establishments, including importers, exporters, and providers of services and logistics solutions. It aims to enhance the business environment and boost the competitiveness of Saudi commercial enterprises in global markets.
ZATCA developed the Saudi AEO Program in collaboration with the Ministry of Energy, the Ministry of Commerce, the Ministry of Interior, the Ministry of Environment, Water, and Agriculture, the Ministry of Industry and Mineral Resources, the Ministry of Transport and Logistic Services, the Ministry of Health, the Saudi Standards, Metrology and Quality Organization, the Communications and Space Technology Commission, the General Authority of Civil Aviation, the Saudi Ports Authority, the Saudi Food and Drug Authority, the Ministry of Investment, and the Ministry of Human Resources and Social Development.
Through this joint collaboration, the Saudi AEO program implemented the tiering model, which includes three tiers for the importer and exporter, and dedicated tier for the logistics services providers such as customs brokers and shipping agents.
The Saudi AEO and its achievements in facilitating cross-border trade also support the goals of improving the business environment, easing trade, and empowering commercial enterprises to face challenges by providing numerous incentives from ZATCA and its partners from government entities. This will contribute to greater successes for these commercial enterprises in international markets.
Through the Saudi AEO Program, member commercial enterprises will benefit from significant facilitation measures, including the simplification of procedures, ensuring removal of any obstacles related to supply chains, and provision of preferential and international benefits. This enhances the speed of trade movement and reduces costs. Additionally, the program contributes to strengthening the security of the supply chain by ensuring that commercial enterprises adhere to the highest standards of safety and compliance with international regulations. Furthermore, the Program encourages commercial enterprises to adopt innovative logistical solutions to improve efficiency, supporting companies' competitiveness in the global market. It is noteworthy that since its launch in 2018, the Program has benefited more than 550 Saudi commercial enterprises from its advantages, reflecting its success in improving the business environment and enhancing the Kingdom's competitiveness. The Program is also implemented in over 80 countries, which strengthens trade cooperation between the Kingdom and other nations and contributes to accelerating international trade movement. Additionally, the program enhances the flexibility of supply chains by simplifying customs procedures and the associated logistical services.
In conclusion, the Saudi Authorized Economic Operator Program supports the trade facilitation goals set by the Zakat, Tax, and Customs Authority, and enhances the efficiency of business operations at both the local and international levels, thereby strengthening the Kingdom's economic position globally.