What is the Awlawia Program (Saudi Authorized Economic Operator Program)?

Saudi Arabia's taxation system is undergoing significant reforms. The introduction of the Value Added Tax (VAT) in 2018 marked a significant step towards a more diversified revenue stream for the country. The government established the Awlawia Program (Saudi Authorized Economic Operator Program) to streamline trade processes and enhance security within this evolving system.

This article explains all about the Awlawia Program (Saudi Authorized Economic Operator Program).

What is the Awlawia Program?

The Awlawia Program is a voluntary initiative by the Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia. It grants a trusted trader status to businesses that meet stringent compliance and security standards. This program aims to:

• Facilitate trade movement by minimising delays and paperwork.
• Enhance supply chain security through robust risk management practices.
• Simplify customs procedures for pre-approved and low-risk cargo.

Benefits of the Awlawia Program:

• Faster clearance of goods: Awlawia-certified businesses can benefit from expedited customs clearance procedures, including priority lane access and reduced document checks. This translates to quicker delivery times and lower logistics costs.
• Reduced inspections: Companies with a proven track record of compliance may be subject to fewer physical inspections of their cargo. This translates to cost savings and avoids potential delays caused by in-depth inspections.
• Improved trade reputation: Participation in the program demonstrates a commitment to international trade best practices, potentially enhancing a company's reputation with trade partners and attracting new business opportunities.

Why did the Government Introduce the Awlawia Program?

The Saudi government implemented the Awlawia Program to achieve several key objectives:

• Promote trade efficiency: The program aims to boost overall trade activity in the region by streamlining customs procedures for trusted traders, benefiting both businesses and the Saudi economy.
• Enhance security: The program's focus on stringent compliance standards strengthens border security and reduces the risk of illegal activities, such as smuggling or counterfeiting.
• Align with international standards: The Awlawia Program reflects Saudi Arabia's commitment to harmonising its trade practices with global norms, facilitating smoother integration into international trade networks.

How to Register for the Awlawia Program?

The specific registration process may change, but here's a general guideline:

1. Familiarise yourself with the program requirements: ZATCA's website offers detailed information on the program's criteria and application procedures (ZATCA eServices: https://zatca.gov.sa/en/eServices/Pages/eServices_225.aspx).
2. Prepare the necessary documentation: This may include information on your company's history, financial standing, security measures, customs compliance record, and details of your supply chain.
3. Submit your application: Once you've compiled the required documents, you can submit your application electronically through the ZATCA e-Services portal.

Step-by-Step Process for the Awlawia Program

1. Review the program requirements and eligibility criteria on the ZATCA website.
2. Gather necessary documentation as per ZATCA guidelines.
3. Submit an online application through the ZATCA eServices portal.
4. Await evaluation by ZATCA officials, which may include a review of your application, financial records, and potentially a site visit to assess your security measures.
5. Upon approval, receive your Awlawia certification.