RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SAU/40
24 June 1999
(99-2586)
Working Party on the Accession
of the Kingdom of Saudi ArabiaOriginal:  English
ACCESSION OF THE KINGDOM OF SAUDI ARABIA
Action Plan for the Implementation of the Import Licensing Agreement
The Ministry of Commerce of the Kingdom of  Saudi Arabia has submitted the following
Action Plan for the Implementation of the Import Licensing Agreement.
_______________
The import licensing regime of the Kingdom of Saudi Arabia is generally consistent with the
WTO provisions on Import Licensing. However, to make the process more transparent and
predictable, the Kingdom has already embarked on a programme to ensure full implementation of the
Agreement. Details of the actions already taken and the ongoing and future programmes are given in
the following paragraphs.
1. Existing Position and On-going Programme
The following actions have already been taken or are under way to ensure the timely
implementation of the provisions of the Agreement on Import Licensing:
(a) A Technical Committee was established in the beginning of 1997, which is responsible for
preparing the groundwork for the implementation of the Agreement on Import Licensing.The Committee consists of representatives from the Ministries of Commerce, Interior,
Agriculture, Health, Industry and Electricity and the Ministry of Post, Telegraph and
Telephone (PTT).
(b) The Committee found, after a study of existing procedures used by different Ministries and
Agencies, that:
(i)  The existing procedures are by and large in conformity with the requirements of the
Agreement on Import Licensing;
(ii)  The procedures are followed as a customary practice, but are not laid down in written
regulations;
(iii)  Application forms for licenses are very simple and require only essential information,
as laid down in Article 1.5 of the Agreement;
(iv)  Application and renewal procedures are simple.  There are no closing dates for
licenses (as such the requirement of 21-days is not applicable to Saudi Arabia);WT/ACC/SAU/40
Page 2
(v)  Applicants have generally to approach only one administrative body, as required by
Article 1.6.  However, in no case do they have to approach more than three
administrative bodies;
(vi)  Applications are not refused for minor documentation errors or for minor variations
in value, as required by Articles 1.6 and 1.7 of the Agreement;
(vii)  There are no exchange control restrictions in Saudi Arabia (ref. Article 1.8 of the
Agreement);
(viii)  Licenses are generally issued within one week of the date of application, if the
applications are complete in all respects;
(ix)  Each Ministry/Agency has an appeal procedure available to applicants, if the
application is refused.  First right of appeal is to the Head of the Agency/Department
or to the Minister.  A final right of appeal to the Board of Grievances (a judicial
body) is available to applicants.
(c) A paper has been prepared on the present import licensing procedures which contains inter
alia, information on procedures, documentation and conditions for issuance of import licenses
by different Ministries and Agencies of the Kingdom. This paper has been submitted to the
WTO and circulated as document WT/ACC/SAU/30.  It serves as a basis for analysing the
essential elements of the present licensing regime and their conformity or otherwise to the
WTO provisions on Import Licensing.
(d) Translation of the text of the Agreement on Import Licensing into Arabic was done and listing
of the main obligations under the Agreement were also prepared and translated into Arabic.
(e) The Committee has studied the present Saudi procedures on licensing keeping in mind their
WTO consistency in order to determine whether a single law for import licensing procedures
would suffice.
(f) National laws and regulations of some WTO members have been obtained and translated into
Arabic to get an idea on how to implement the Agreement.
(g) A draft law is being prepared on Import Licensing, which will hopefully be finalized by the
end of July 1999.
2. Future Programme
The following are the elements of the future programme for the implementation of the
Agreement on Import Licensing:
(a) Draft law on Import Licensing would be circulated to all concerned Ministries and Chambers
of Commerce for their comments/ suggestions, if any.
(b) Review of the draft legislation on Import Licensing will be finalized by September 1999.
(c) A law on import licensing, fully consistent with  the provisions of the Agreement on Import
Licensing, will be enacted by the end of 1999.WT/ACC/SAU/40
Page 3
(d) A training programme on how to manage the licensing regime efficiently and to ensure
coordination between the concerned Ministries shall be conducted in the second half of 1999.
(e) A matrix on import licensing is attached.WT/ACC/SAU/40
Page 4
Kingdom of Saudi Arabia
Implementation of the Agreement on Import Licensing
Article of the
Import Licensing
AgreementObligations Under the Article Existing Position Future Programme
1.2 Administrative procedures should be in
conformity with relevant GATT provisions, with aview to preventing trade distortions, while taking
into account economic development purposes of
developing Members.The existing procedures are by and large
in conformity with the provisions of thisArticle.Legislation on import licensing is under
preparation. It will incorporate allobligations under the Agreement on
Import Licensing Procedures. The draft
legislation will be ready in the third
quarter of 1999, and it will be
implemented by the end of 1999.
1.3 Rules should be neutral in application and
administered in a fair and equitable manner.Procedures being followed presently
generally conform to the requirements of
Article 1:3.Would be codified in the new legislation
under preparation.
1.4(a) Transparency regarding rules and procedures etc.
be ensured and notified to the WTO Committee
on Import Licensing. Publication should takeplace wherever practicable 21 days prior to
effective date of requirement.
Any exception, derogation or changes in or from
the rule on I/L shall also be published in the samemanner.________To be addressed in the new legislation.
Notification requirement will be fulfilled
upon accession.
1.4(b) Members wishing to make comment in writing
may be allowed to do so and due consideration be
given to them.To be addressed in the new legislation.
1.5 Application forms for licenses shall be simple and
require only relevant information.Forms at present are very simple (Please
see document WT/ACC/SAU/ 30), andrequire information which is considered
strictly necessary.To be codified in the new legislation under
preparation.WT/ACC/SAU/40
Page 5Article of the
Import Licensing
AgreementObligations Under the Article Existing Position Future Programme
1.6 Application/renewal procedure shall be simple.
Reasonable time be given for submission of
license application.  Where there is a closing date
at least 21 days be given with a possibility of
extension.  Applicants shall approach only oneadministrative body.  If, however, not possible,
maximum to three bodies.Procedures are very simple, as described
in document WT/ACC/SAU/30. In Saudi
Arabia’s system of import licensing, there
are no closing dates for licenses.
Applicants have to approach only on
administrative body in connection with an
application.The practice will be codified in the new
legislation.
1.7 No application shall be refused for minor
documentation error.  Any error made in good
faith shall not be imposed with heavy penalties.Already being followed in practice. To be codified in the new legislation under
preparation.
1.8 Licensed imports shall not be refused for minor
variation in value, quantity or weight for amount
designated in license.Already being followed in practice. To be codified in the new legislation under
preparation.
1.9 Foreign exchange shall be made available for
licensed imports on the same basis as to import of
goods not requiring import licenses.There are no foreign exchange restriction
in Saudi Arabia. ________
2.2(a) Automatic licensing procedures shall not have
trade restricting effect: Any person/ firm which
meets legal requirement is equally eligible to
obtain I/L; application must be submitted on any
working day prior to custom clearance; andapplication must be approved immediately or
within a maximum of 10 working days.Already being followed in practice. As
document WT/ACC/SAU/30 shows, time
periods for issuance of licenses are well
within the prescribed period.To be codified in the new legislation under
preparation.
2.2(b) Automatic licenses may be necessary whenever
other appropriate procedures are not available,
however, its introduction may prevail as long as it
is really needed.Automatic import licenses are considered
necessary as other appropriate procedures
are not available.New regulations will require all
Ministries/Agencies to review their
procedures in the light of requirements of
Article 2.2(b).WT/ACC/SAU/40
Page 6
Article of the
Import Licensing
AgreementObligations Under the Article Existing Position Future Programme
3.2 Non-automatic licensing shall not be more trade
restrictive than those caused by the imposition of
the restriction.  It should be no more
administratively burdensome than absolutely
necessary to administer the measure.This is being followed in practice. Will be reflected in the new law under
preparation.
3.3 In case, licensing requirements are for purposes
other than implementation of QRs, Members shallpublish the basis for granting and/or allocating
licenses.All licensing requirements are for
purposes other than implementation ofQR’s. Basis for licensing is not published
at present.The requirement of this provision will be
reflected in the new legislation underpreparation.
3.4 If there is a possibility of exemption/ derogation
from a licensing requirement, it shall bepublished.This is not being done at present. Will be reflected in the new law under
preparation.
3.5(a) Information shall be provided to other Members
on the administration of restrictions, I/Ls granted
over a recent period, distribution of I/L’s among
supplying countries and import statistics.This will be done after Saudi Arabia
accedes to the WTO.Saudi Arabia will meet with this
obligation after its accession to the WTO.
3.5(b) Provision of full information on quotas along with
closing dates etc. for applications.There are no quotas and quantitative
restrictions.Not applicable.
3.5(c) Share of quota among  supplying countries be
notified to all Members.There are no quotas and quantitative
restrictions.Not applicable.
3.5(d) In situation where it is necessary to open quota at
an early date the information should be published
wherever practicable, 21 days prior to its opening.There are no quotas and quantitative
restrictions.Not applicable.
3.5(e) I/L’s should be issued equitably, however, if
refused reasons there of be given, and applicantshall have a right to appeal or review.The first level of appeal is to the Minister
of the concerned Ministry or to the Headof the Agency concerned. Appeal against
the decision of the above lies with the
Board of Grievances.To be codified in the legislation under
preparation.WT/ACC/SAU/40
Page 7Article of the
Import Licensing
AgreementObligations Under the Article Existing Position Future Programme
3.5(f) The application for licenses will be processed
with 30 days if licenses are to be issued when
received (i.e. FCFS basis) or within 60 days if all
applications are to be considered simultaneously.This requirement is being met as licenses
are generally issued within a week.Will be reflected in the legislation under
preparation.
3.5(g) License should be valid for reasonable period to
make imports possible except where imports are
necessary in the short-term.This is being followed in practice. Will be codified in the new legislation
under preparation.
3.5(h) While administering quotas Members shall not
prevent importation effected against I/L’s issued
and shall not discourage full utilization of quotas.There are no quotas and quantitative
restrictions.Not applicable.
3.5(i) Members shall take into account the desirability
of issuing I/L/s in economic quantities.There are no quotas, as such this provision
is not applicable to Saudi Arabia.Not applicable.
3.5(j) In allocating licenses past performance of
applicant be kept in view.  Past utilization should
also be considered.  New comers shall also beensured reasonable distribution. Special
consideration should be given to importers
desiring to import from developing countries.There are no quotas, as such no allocation
of licenses.Not applicable.
3.5(k) Quotas not allocated among supplying countries
should be allowed to be sourced from any
Member.There are no quotas and quantitative
restrictions.Not applicable.
3.5(l) If some minor excess has taken place previously,
compensating adjustments may be made in future
license.There are no quotas and quantitative
restrictions.Not applicable.
5 Notification requirement, to the Committee on
import licensing.________ To be fulfilled upon accession.
7.3 Member undertake to complete questionnaire on
import licensing procedures promptly and in full.________ To be fulfilled upon accession.WT/ACC/SAU/40
Page 8
Article of the
Import Licensing
AgreementObligations Under the Article Existing Position Future Programme
8.2 Each Member shall ensure the conformity of its
laws and regulations and administrative
procedures with the provision of this Agreement.________Legislation on import licensing is under
preparation. It will incorporate all
obligations under the Agreement on
Import Licensing Procedures. The draft
legislation will be ready in the thirdquarter of 1999, and it will be
implemented by the end of 1999.
__________