Article 170 of the Saudi GCC Unified Customs Law
المادة 170 من نظام قانون الجمارك الموحد لدول مجلس التعاون لدول الخليج العربية · الباب الرابع عشر: بيع البضائع
Customs sales are conducted by public auction under the rules of the Minister or the competent authority, and goods are sold free of fees and taxes except the brokerage commission, which the buyer bears.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - تجري عمليات البيع المنصوص عليها في هذا الباب بالمزاد العلني وفقا للشروط والقواعد التي تحدد بقرار من الوزير أو الجهة المختصة .
ب - تباع البضائع والأشياء ووسائط النقل خالصة من الضرائب " الرسوم " الجمركية والرسوم والضرائب الأخرى عدا عمولة السمسرة التي يتحملها المشتري أثناء إجراءات البيع .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 170 explained in plain English
This article regulates the method of selling the goods provided for in this Part.
(a) Public auction:
- Sales are conducted by public auction.
- In accordance with the conditions and rules set by decision of the Minister or the competent authority, which the article does not state.
(b) The sold item is free of fees:
- Goods, items and means of transport are sold free of customs duties and other fees and taxes.
- Except the brokerage commission, which the buyer bears during the sale procedures.
What this means for the buyer: a person who buys goods or a car at a customs auction is not afterward asked to pay customs duties or other taxes on them, since they are sold free of them, but he pays the brokerage commission. The public auction ensures transparency and competition in the sale.
Article 169 provides that the Administration bears no responsibility for malfunction or damage to the goods sold unless there is an obvious error in the sale, so the buyer should inspect the goods carefully. Article 171 specifies the order of distribution of the sale proceeds: customs duties, then the costs of sale, then the Administration's expenses, then freight, then any other fee, with provisions on the remaining balance. A person who wishes to buy at the auction and has a legal question would do well to consult a lawyer specializing in customs and commercial cases.
Practical example
A person in Riyadh bought a car at a public customs auction. He is not asked to pay customs duties or other taxes on it because it is sold free of them, but he bears the brokerage commission during the sale procedures.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 170 of the Saudi GCC Unified Customs Law
How does customs sell goods?
By public auction under the conditions and rules set by decision of the Minister or the competent authority.
Do I pay customs duties on what I buy at a customs auction?
No. Goods are sold free of customs duties and other fees and taxes.
What does the buyer at a customs auction pay in addition to the price?
The brokerage commission.
More articles on Sale of Goods and Customs Limitation Periods
- Article 146
The Director General may hold and sell seized goods and means of transport when smugglers flee or cannot be traced; the proceeds go to the State if one year passes from the sale without the smugglers being caught.
للمدير العام التحفظ على البضائع ووسائط النقل المضبوطة في حالة فرار المهربين أو عدم الاستدلال عليهم، وبيعها طبقا لأحكام الباب الرابع عشر من هذا النظام " القانون
- Article 166
The Administration may sell seized goods that are perishable or affect the safety of others, and goods whose value is falling with a license, without awaiting the judgment, with notice to the owner and refund of the price if the judgment favors him.
أ - للإدارة أن تبيع البضائع المحجوزة القابلة للتلف أو النقص أو التسرب أو كانت في حالة من شأنها أن تؤثر في سلامة البضائع الأخرى والمنشآت الموجودة فيها . ب - يجوز
- Article 167
After the period set by the Minister or the competent authority expires, the Administration may sell goods stored in customs warehouses or located in yards and on quays or abandoned in customs areas.
للإدارة بعد انقضاء المهلة التي حددها الوزير أو الجهة المختصة أن تبيع البضائع التي خزنت في المستودعات الجمركية أو الموجودة على الساحات والأرصفة، أو تلك المتروكة
- Article 168
The Administration sells goods and means of transport that became customs property by confiscation, settlement or waiver, goods not withdrawn from warehouses in time, and goods of unknown owners after the holding period.
تقوم الإدارة ببيع ما يلي : 1 - البضائع والمواد ووسائط النقل التي أصبحت ملكا للجمارك نتيجة حكم بالمصادرة أو تسوية صلحية أو تنازل خطي . 2 - البضائع التي لم تسحب م
- Article 169
The Administration bears no responsibility for malfunction or damage to goods it sells under the Law, unless it is proved that it committed an obvious error in carrying out the sale.
لا تتحمل الإدارة أي مسؤولية عن العطل أو الضرر الذي يلحق بالبضائع التي تقوم ببيعها بموجب أحكام هذا النظام " القانون "، إلا إذا ثبت أنها ارتكبت خطأ بينا في إجراء
- Article 171
Sale proceeds are distributed starting with customs duties and then expenses; the balance for goods permitted for import is held in trust and may be reclaimed within a year, the balance for prohibited goods goes to the Treasury, and smuggling cases follow Article 172.
أ - يوزع حاصل البيع وفقا للترتيب التالي : 1- الضرائب " الرسوم " الجمركية . 2 - نفقات عملية البيع . 3 - النفقات التي صرفتها الإدارة من أي نوع كانت . 4 - أجرة الن
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.