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How is the value added of products calculated?

How is the value added of products calculated?

This program requires a general rule of 40%  value added through substantial transformation in Kingdom of Saudi Arabia.

The formula to calculate final value added percetage for products:
Value added of manufactured product – ( Value of imported materials in manufacturing - imposed tax and fees)/ final value of ex-factory product *100

To calculate the value of final products, we subtract the value of all non-originating materials from the value of the product (value of the former manufactory), keeping in mind that the value of imported material shall not exceed 60% from the total price of manufacturing the final product in order to be considered as “ Saudi Made”.

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Related Questions

Are there fees to pay in this program?

No, the Made in Saudi program is free to join.

Is there any documents, or receipts required to verify the value added?

No, the program does not require submitting any document or receipt to prove the value added. However, there is an annual audit on a sample of entities where documents will be requested for verification. 

How do I register products in the Made in Saudi Program?

There are 2 methods to register products that can be found in "Register Product(s)" page: 
1. Register each product category in the online form and submit for verification 
2. Download the Excel file, fill the required data and upload the file on the portal to register bulk amount of product categories

Both methods require providing the quality certificates and the aknowledgement of value added requirements to approve the registration. 

Can the entity submit in product registration international certificates such as ISO, EU, etc.?

Yes, The program accepts any accredited international certificate for verification of the product's quality. 

Can the entity submit Facility License from SFDA to register products?

No, the Processed Foods and Drugs entities should submit a Product Registration Certificate from SFDA and not Facility License. Facility License does not replace the Product Resgitration Certificate.

SFDA Facility Licenses are only presented to join the community.