Top 7 Mistakes New Importers Make

After 10 years working in customs clearance, we’ve seen the same mistakes repeated by new importers. These are the 7 most common ones that cost startups thousands of riyals — and how to avoid them.

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Mistake #1: Wrong HS Code Classification

The Issue

HS Code is the global customs classification for goods. Wrong classification = higher duties or shipment rejection.

The Common Error

• Importer: “Electronic devices”
• Correct classification: “Television receivers” (specific HS Code)

Consequences

• Higher duties than expected
• Retroactive re-evaluation
• Penalties up to 5x the original duty

The Fix

Before purchase, consult an expert to confirm the correct HS Code.

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Mistake #2: CR Activity Mismatch

The Issue

The CR activity is “fabric trade” but the importer brings in electronics.

The Result

• Shipment rejected in FASAH
• Forced to amend the CR (takes weeks)
• Stuck shipment + demurrage

The Fix

• Review CR activity before importing
• If the CR doesn’t cover the product, amend it in advance
• Or use a different matching CR

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Mistake #3: Forgotten Conformity Certificates

The Issue

The importer assumes the “product is normal and doesn’t need certificates.”

The Reality

Many products need mandatory certificates:

• Electronics → SABER certificate
• Food → SFDA + Halal certificate
• Medical devices → MDMA
• Chemicals → import permit + MSDS

Consequences

• Shipment held at the port
• Daily demurrage
• In bad cases: re-export at the importer’s expense

The Fix

A pre-purchase consultation reveals every required certificate.

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Mistake #4: Under-Invoicing

The Issue

Some importers ask the exporter for a lower-value invoice to reduce duties.

The Result

• Saudi customs has global price databases
• They detect the underpayment easily
• Penalties up to 3x the duty value
• In repeated cases: criminal prosecution

The Fix

Use real values. Duty is only 5% — not worth the risk.

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Mistake #5: Wrong Incoterms

The Issue

The importer accepts any Incoterms from the exporter without understanding them.

Important Incoterms

Term	Responsibility
EXW	The importer is responsible from the factory door
FOB	The exporter delivers to the port; the importer pays freight
CIF	The exporter pays freight + insurance to the port
DAP	The exporter delivers to the importer’s door
DDP	The exporter pays everything including customs

The Tip

CIF or FOB is best for new importers — clear who pays what.

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Mistake #6: Not Insuring the Shipment

The Issue

“The ship is safe” — wrong assumption.

The Statistics

• 5% of shipments experience damage or loss
• Some ports face strikes and theft
• Maritime accidents happen

The Fix

• Marine insurance (~0.5–1% of shipment value)
• Covers theft, damage, accidents
• Essential for high-value shipments

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Mistake #7: Late Shipment Tracking

The Issue

The importer waits for a “shipment arrived” call — too late.

Consequences

• Can’t prepare documents in time
• Misses pre-clearance (saves 24 hours)
• Demurrage accumulates

The Fix

• Real-time tracking via an experienced broker
• Prepare documents before arrival
• Use pre-clearance service

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Summary: Pre-First-Shipment Checklist

✅ Verified the correct HS Code for the product ✅ CR activity matches the product ✅ All required certificates ready (SABER/SFDA/MDMA) ✅ Real and consistent invoice values ✅ Clear and agreed Incoterms ✅ Marine insurance on the shipment ✅ An experienced broker tracking in real time

OBOOR’s Tip

All these mistakes can be avoided with a free pre-shipment consultation.

At OBOOR, we review your shipment for free for 30–45 minutes:

• Review the HS Code
• Verify the CR
• Identify all required certificates
• Estimate duties accurately
• Lay out a clear action plan

Book a free consultation — no commitment. We save you weeks of mistakes.