Article 173 of the Saudi GCC Unified Customs Law
المادة 173 من نظام قانون الجمارك الموحد لدول مجلس التعاون لدول الخليج العربية · الباب الخامس عشر: امتياز إدارة الجمارك
To collect duties, fines, compensation, confiscations and refunds, the Administration has a general lien on the property of persons liable, even in bankruptcy, with priority over all debts except court costs.
Official text (Arabic)
This article has not been amended since the law was issued.
تتمتع الإدارة من أجل تحصيل الضرائب " الرسوم " الجمركية والرسوم والضرائب الأخرى التي تكلف بتحصيلها ، وكذلك الغرامات والتعويضات والمصادرات والاستردادات بامتياز عام على أموال المكلفين المنقولة وغير المنقولة حتى حالة الإفلاس وبالأفضلية على جميع الديون عدا المصروفات القضائية .
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 173 explained in plain English
This article provides for the customs Administration's lien on the property of persons liable.
Amounts secured by the lien:
- Customs duties, and other fees and taxes that the Administration is charged with collecting.
- Fines, compensation, confiscations and refunds.
Nature of the lien:
- A general lien on the movable and immovable property of persons liable.
- It continues even in the case of bankruptcy.
- It gives the Administration priority over all debts.
- Except court costs, which alone rank ahead of it according to the text.
What this means in practice: if creditors compete over the property of a person liable, for example if a company with debts to customs, banks and suppliers goes bankrupt, customs collects its right before all other creditors, after court costs only. It is therefore important for creditors and partners to know what customs dues are owed by the person liable.
The article does not address how enforcement is carried out or its procedures. Article 172 sets the Treasury's share of fines and confiscations at 50% after deducting duties and expenses, and deposits the rest in the customs rewards fund. Article 174 provides that no claim or lawsuit will be accepted for the refund of customs duties more than three years after they were paid. A person facing competition with customs over a debtor's property would do well to consult a lawyer specializing in enforcement cases.
Practical example
An importing company in Jeddah was declared bankrupt, and it owes customs duties and fines and debts to a bank and suppliers. Customs collects its dues from the company's property before the bank and the suppliers, and only court costs rank ahead of it.
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 173 of the Saudi GCC Unified Customs Law
Are customs debts ahead of other debts?
Yes. The Administration has a general lien on the property of persons liable with priority over all debts except court costs.
Does the customs lien continue in bankruptcy?
Yes. The lien continues even in the case of bankruptcy.
What ranks ahead of the customs lien?
Court costs only.
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 170
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.
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 ووسا
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.