The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 21 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs registration, documentation, procedures, and valuation 
1. Under the Law on Commercial Registration1, Saudi and foreign companies, irrespective of 
whether they import or export, must apply for commercial registration (valid for five years). 
Businesses with capitalization of SAR 100,000 or l ess are exempt.  Registration involves completion 
of an application form, payment of a fee2, and submission of documentation to the Ministry of 
Commerce and Industry (MCI).  The use of a Saudi  commercial agent is required only to import or 
export agricultural machinery.3 
2. All imports into Saudi Arabia, except those of  low pecuniary value (up to SAR 3,000) and 
those intended for own use, must be accompanied by, inter alia , a customs declaration form (for a fee 
of SAR 20), commercial invoice, a bill of lading (a irway bill for air cargo and sea bill for sea cargo), 
and a certificate of origin.4  On the basis of commitments undertaken during its WTO accession 
negotiations, Saudi Arabia eliminated the require ment to authenticate import documentation as of 
31 December 2007.5 
3. Some imports require product-specific documenta tion such as automatic licences (section (iv) 
below);  SPS certificates (section (vi)(b));  and health /veterinary permits (section (vi)(b)).  Moreover, 
certain imports are subject to mandatory certificatio n (section (vi)(a) below), while some imports are 
strictly prohibited (section (iv) below). 
4. Since the launch of the GCC customs union on 1 January 2003, Saudi Arabia has been 
applying the GCC Common Customs Law and its Rules of Implementation and Explanatory Notes.6  
Under the "single port of entry" principle, items im ported into Saudi Arabia (or any other GCC State), 
and destined for another GCC market, are subject to customs duty only at the first point of entry into the GCC.  While, in principle, customs procedur es and the required docum entation should be the 
same for all GCC members, th ere are still some differences
7.  Saudi Arabia ranks second best in the 
region in terms of the World Bank's trading across borders index (Table III.1). 
                                                      
1 Royal Decree No. M/1, 21/2/1416H (19 July 1995). 
2 Under Council of Ministers Decision No. 163, 12/6/1429H (16 June 2008), the annual registration 
fees are: SAR 1,600 for joint-ventures or limited pa rtnerships;  SAR 1,200 for limited liability companies; 
SAR 800 for any other company;  and SAR 200 for the registration of any individual establishment. 
3 Under the Commercial Agencies Law, issued by Royal Decree No. M/11, 20/2/1382H (22 July 1962), 
and its Implementing Regulations, Ministerial Resolution No. 1897, 24/5/1401H (29 March 1981), "commercial 
agency" is a business activity in which a natural or legal person acts as the agent or distributor of a producer, 
typically foreign.  Commercial ag ents are not required other than fo r trade in agricultural machinery. 
4 Customs accepts photocopies of certificates of or igin provided th e originals are submitted later. 
5 The requirement for notarization, authentication or consularization of trade documents, including 
certificates of origin and invoices, fees charged by C onsular Offices of Saudi Arabia and by the Business 
Council, and the associated fees applied to all exports to Saudi Arabia, were terminated under Council of 
Ministers Decision No. 5-B-57611, 28/11/1424H (20 January 2004). 
6 Royal Decree No. M/41, 3/11/1423H (5 January 2003) published in the Official Gazette  No. 3930, 
27/12/1423H (28 February 2003). 
7 For a description of the GCC customs procedur es, see GCC online information.  Viewed at:  
http: //sites.gcc-sg.org/Dlibrarv/download.php?B=350. WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 22 
  
Table III.1 
Trading across borders indicato rs in GCC countries, 2011 
 Bahrain Kuwait Oman Qatar Saudi Arabia UAE 
Trading across borders index (rank) 33 113 88 46 18 3 
Documents to export (number) 5 8 9 5 5 4 
Time to export (days) 11 17 14 21 13 7 
Cost to export  (US$ per container) 955 1,060 766 735 580 521 
Documents to import (number) 6 10 9 7 5 5 
Time to import (days) 15 19 17 20 17 7 
Cost to import (US$ per container) 995 1,217 890 657 686 542 
Source: World Bank online information.  Viewed at:  http://www.doingbusiness.org/ ~/media/FPDKM/Doing%20 
 Business/Documents/Annual-Report s/English/DB11-FullReport.pdf. 
5. Saudi Customs applies a pre-arrival documents-verification procedure called Direct Clearance 
System for certain products, including new vehicles, pipes, timber, and building materials.  Where a 
consignment contains foodstuff or items for human consumption, the consignment is forwarded to the 
Saudi Food and Drug Authority (SFDA) Food Insp ection Department, which immediately releases 
most of the consignment while sending a sample (as pe r the nature of the product) to the Food Control 
Laboratory for analysis.  The consignment is cleared  against an undertaking of non-disposal until the 
results of the analysis are received.8 
6. Almost all Customs in Saudi Arabia are fully  automated.  According to the authorities, 
provided everything is in order, including the documentation, clearance of goods takes an average of 
one day, regardless of the mode of transport.  On average, about 90% of imports are subject to x-ray 
scanning, while 10% are subject to random insp ection based on a risk management system.9  If goods 
are left in the customs sheds and are not cleared within 10 days of the date of unloading, storage 
charges are levied at SAR 20 per tonne per day.  No  charges are levied if the delay was not caused by 
the importer. 
7. Saudi Arabia has notified that it is implementing the WTO Customs Valuation Agreement 
(CVA) on the basis of the GCC Common Custom s Law and its Rules of Implementation and 
Explanatory Notes.  The first basis for determin ing the value for customs purposes is the transaction 
value.  If the transaction value cannot be determ ined, the customs value is to be calculated by 
proceeding through the basic methods set by the CVA10;  no minimum or reference prices are applied 
to imports.  The Ministerial Decision on Value Determination for Customs Purposes has been 
incorporated in Article 1 of the Rules of Implementation of the GCC Common Customs Law.11  
Saudi Arabia has also notified that, as from 11 December 2005, it applies both the Decision on 
Treatment of Interest Charges in the Customs Valuation of Imported Goods and the Decision on 
Valuation of Carrier Media Bearing Software for Data Processing Equipment.12  Customs tariffs are 
levied on the c.i.f. value of imports. 
                                                      
8 Saudi Customs has adopted the international c onformity certificate programme accompanying import 
consignments.  However, if an explicit IPR violation is witnessed in an imported consignment, it is detained and 
seized by Customs after a final order convicting the importer is issued. 
9 Several indicators and criteria are used to identify high-risk consignments, e.g. name of the 
importer/exporter, country of origin, and value of goods. 
10 WTO document G/VAL/N/1/SAU/1, 6 February 2007. 
11 Ministerial Decision No. 1207, 24 June 2004, by the Ministry of Finance.  See WTO documents 
G/VAL/N/1/SAU/1, 6 February 2007;  and G/VAL/N/2/SAU/1, 8 January 2007. 
12 WTO document G/VAL/N/3/SAU/1, 8 January 2007. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 23 
 
 
8. To settle customs valuation and classificati on disputes, an operator may appeal, without 
penalty, to the Director of Customs or the Valu ation Adjudication Committee, and to the Board of 
Grievances (Saudi Arabia's hi ghest administrative tribunal).13  According to the authorities, during 
2006-10, there were 304 classification dis putes, and 127 valuation disputes. 
9. Saudi Arabia has notified the WTO that it has no laws or regulations on pre-shipment 
inspection.14  Under Council of Ministers Decision No. 213 of 30 September 2003, Saudi Arabia no 
longer operates the International Conformity Ce rtification Programme (ICCP), a pre-shipment 
certification programme initiated in 1995 to monitor and control the importation of certain products 
(section (vi)(a) below)). 
10. Saudi Arabia is member of the World Customs Organization. 
(ii) Rules of origin 
11. Under the GCC customs union, products are generally considered as originating from the 
country where they are wholly obtained or wher e they underwent substantial transformation.  The 
country of origin must be written clearly for import clearance. 
12. Saudi Arabia's preferential rules of origin are also based on a value-added content criterion.  
Products imported from the Pan Arab Free-Trade Area (PAFTA), must contain at least 40% local 
value-added in order to qualify for preferential treatment. 
13. Saudi Arabia has notified the WTO Committee on Rules of Origin that it does not have any 
non-preferential rules of origin.15  There have been no disputes or complaints in the WTO regarding 
Saudi Arabia's rules of origin. 
(iii) Tariffs, other duties, and taxes  
(a) MFN applied tariffs 
14. Goods imported into Saudi Arabia are subject only to customs tariffs since it does not impose 
VAT, excise duties or any other internal taxes or charges on domestically produced or imported 
products (section (c) below).  Unde r Article 20 of the Basic Law of  Governance, the authority for 
setting and for changing customs tariffs, and for le vying any surcharges, rests with the Council of 
Ministers.  Imposition, amendment or abrogation of  customs tariffs requires a Decree by the Council 
of Ministers that is endorsed by a Royal Decree. 
15. Saudi Arabia has been aligning its tariff to  the GCC common external tariff (CET) on the 
basis of Royal Decree No. 41 of 3/11/1423H (6 January 2003).16  Initially, a transition period of 
three years (31 December 2005) was envisaged to complete the CET alignment, but this has been 
extended until the end of 2011.  Thus, certain  agreed differences re main among GCC members 
(Chapter II(4)(ii)(a)). 
                                                      
13 Decision No. 1207 and Article 61 of the GCC Common Customs Law, provide that the importer 
should be informed in writing of any decision taken concerning his complaint.  Article 71 of the Basic Law of Governance requires the publication of laws, regulations, and decisions in the Official Gazette . 
14 WTO document G/PSI/N/Add.11, 24 June 2008. 
15 WTO document G/RO/N/48, 8 November 2006. 
16 The CET is based on the 2007 Harmonized Commodity Description and Coding System (HS). WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 24 
  
16. Saudi Arabia's tariff has 7,151 lines at the HS eight-digit level17:  7,051 are ad valorem ;  
19 have mixed rates18;  and 81 (1.1% of total lines) corres pond to products prohibited for religious 
reasons e.g. alcoholic beverages, live sw ine and swine products (Chapter III(1)(iv)). 
17. Saudi Arabia's average MFN applied ta riff is 5.2% (Tables III.2 and AIII.1).19  The coefficient 
of variation of 1.1  reveals the dispersion of the tariff rates, which range from zero to 100% 
(ad valorem  part of the mixed duty on tobacco and tob acco-related products).  Duty-free items include 
agricultural raw materials and basic food produc ts, organic chemicals, pharmaceuticals, and ITA 
products.  Overall, the distribution is skewed to wards rates between zero and 5% (duty-free items 
represent 10.6% of the total);  80.2% of tariff lines are within the range >0-5% (Chart III.1).  Tariffs 
on agriculture products based on the WTO definition20, average 6.1%, and 5% on non-agricultural 
products.  Using ISIC (Revision 2) definition (Table AIV.1), the least tariff-protected sector is agriculture (3.5%), followed by mining and quarrying (5%), and manufacturing (5.3%). 
Table III.2 
Structure of MFN tariffs, 2011 
(%) 
  Applied Bound 
1. Bound tariff lines (% of all tariff lines) n.a. 100 
2. Duty-free tariff lines (% of all tariff lines) 10.6 5.3 
3. Non- ad valorem tariffs (% of all tariff lines) 1.4 1.3 
4. Tariff quotas (% of all tariff lines) 0.0 0.0 
5. Non -ad valorem  tariffs with no AVEs (% of all tariff lines) 1.4 1.3 
6. Simple average tariff rate 5.2 10.9 
 Agricultural products (WTO definition)a 6.1 15.4 
 Non-agricultural products (WTO definition)b 5.0 10.1 
 Agriculture, hunting, forestry and fishing (ISIC 1) 3.5 14.0 
 Mining and quarrying (ISIC 2) 5.0 14.6 
 Manufacturing (ISIC 3) 5.3 10.6 
7. Domestic tariff "peaks" (% of all tariff lines)c 1.8 1.2 
8. International tariff "peaks" (% of all tariff lines)d 1.8 2.2 
9. Overall standard deviati on of applied rates 5.8 11.1 
10. "Nuisance" applied rates (% of all tariff lines)e 0.0 0.0 
n.a. Not applicable. 
a WTO Agreement on Agriculture definition. 
b Excluding petroleum. 
c Domestic tariff peaks are defined as those exceeding three ti mes the overall simple average applied rate (indicator 6). 
d International tariff peaks are defined as those exceeding 15%. e Nuisance rates are those greater than zero, but less than or equal to 2%. 
Source : WTO Secretariat calculations, base d on data provided by the Saudi au thorities;  and WTO IDB database. 
                                                      
17 The first six digits correspond to the HS while the last two digits are specific to Saudi Arabia. 
18 Relate to tobacco and tobacco products (HS 24). 
19 Only ad valorem  rates were used to calculate the tariff, which is likely to introduce a downward bias 
in the estimate.   
20 WTO definition of agriculture:  HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 
0509, 051191, 1504, 1603-1605 and 230120) plus some selected products (HS 290543, 290544, 290545, 3301, 
3501-3505, 380910, 382311-382319, 382360, 382370, 382460, 4101-4103, 4301, 5001-5003, 5105-5103, 5201-5203, 5301 and 5302). The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 25 
 
 
(10.6)(80.2)
(2.9)(4.5)
(0.3) (0.1) (0.3) (1.1)
0102030405060708090100
01,0002,0003,0004,0005,0006,000
Duty free >0-5 >5-10 >10-15 > 15-20 >20-50 >50 ProhibitedThe figures in brackets correspond to the percentage of total lines. 
WTO Secretariat calculations, based on data provided by the Saudi authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2011
Number of tariff lines
Note:
Source :Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 
18. Saudi Arabia does not apply tariff quotas, a nd does not currently apply seasonal tariffs; it 
undertook binding commitments on imports of some  fruits and vegetables during its WTO accession 
negotiations (section (b) below).  
19. On aggregate, Saudi Arabia's tariff displa ys positive escalation, from first-stage products, 
with an average tariff of 4.2%, to semi-finished  goods (5%), and fully processed products (5.5%) 
(Table III.3).  This escalation stems from the lower applied tariffs (on average) on agricultural raw 
materials.  At a more disaggregate level, the resu lts are mixed (Chart III.2):  tariffs increase from the 
first to the final stage of processing in some indus tries (e.g. textiles and a pparel, and wood products), 
thereby providing higher levels of effective protection than that reflected by the nominal rates;  there 
are mixed rates (negative from the first to the second stage, and then positive) in food, beverages, and 
tobacco industry (reflecting the high rates on tobacco ) and non-metallic mineral products;  and tariffs 
decrease from the first to the final stage of processing,  e.g. in chemicals and plastics partly, because of 
duty-free imports of pharmaceuticals. 
Table III.3 
Summary analysis of MFN tariffs, 2011  
  Applied 2011 rates 
Imports 2009a  
(US$ million) Analysis No. of linesa Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV 
Total 7,151 5.2 0-100 5.8 1.1 95,552.2 
       
HS 01-24 1,198 5.7 0-100 13.1 2.3 10,799.7 
HS 25-97 5,963 5.2 0-20 2.6 0.5 38,218.5 
By WTO definitionb       
Agriculture 1,122 6.1 0-100 13.5 2.2 10,600.5 
Table III.3 (cont'd) WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 26 
  
  Applied 2011 rates 
Imports 2009a  
(US$ million) Analysis No. of linesa Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV 
Live animals and products thereof 145 3.7 0-20 4.8 1.3 1,996.4 
Dairy products 33 5.0 5 0.0 0.0 879.7 
Coffee and  tea, cocoa, sugar, etc. 250 4.6 0-15 3.0 0.7 2,023.0 
Cut flowers and plants 64 4.5 0-5 1.5 0.3 13.5 
Fruit and vegetables 265 4.1 0-40 5.0 1.2 808.3 
Grains 22 0.5 0-5 1.5 3.2 3,382.9 
Oil seeds, fats, oils and their products 90 4.8 0-5 0.9 0.2 756.4 
Beverages and spirits 63 5.0 0-6 0.8 0.2 177.6 
Tobacco 20 100 100 0.0 0.0 513.8 
Other agricultural products 170 4.2 0-5 1.9 0.5 48.8 
Non-agriculture (excl. petroleum) 5,995 5.0 0-20 2.6 0.5 38,417.7 
Fish and fishery products 162 3.2 0-5 2.4 0.7 199.4 
Mineral products, precious stones and 
precious metals 461 5.3 0-15 2.4 0.5 1,264.2 
Metals 732 5.3 2.5-15 1.7 0.3 5,503.9 
Chemicals and photographic supplies 1,255 4.7 0-6.5 1.5 0.3 3,992.4 
Leather, rubber, footwear and trav el goods 212 6.1 5-15 2.6 0.4 861.7 
Wood, pulp, paper and furniture 432 6.5 0-20 4.6 0.7 801.1 
Textiles and clothing 980  5.8 0-15 2.4 0.4 804.6 
Transport equipment 253 6.1 0-15 3.9 0.6 12,926.9 
Non-electric machinery 646 4.0 0-15 2.3 0.5 6,013.7 
Electric machinery 311 3.3 0-15 3.1 0.9 4,308.2 
Non agricultural articles 551 4.6 0-15 2.1 0.5 1,741.5 
By ISIC sectorc       
Agriculture, hunting, forestry and fishing 430 3.5 0-100 10.5 3.0 3,794.1 
Mining 123 5.0 0-15 1.5 0.3 834.8 
Manufacturing 6,598 5.4 0-100 5.4 1.0 44,389.2 
By stage of processing       
Raw materials 831 4.2 0-100 7.6 1.8 6,161.9 
Semi-processed products 2,128 5.0 0-20 1.6 0.3 6,771.7 
Fully-processed products 4,192 5.5 0-100 6.6 1.2 36,084.6 
 
a The total of imports is higher than the sum of sub-items, as  certain imports, to the value of US$46,534, million are not clas sified 
in the Harmonized System. 
b 34 tariff lines on petroleum products are not taken into account. 
c International Standard Industrial Classification (Rev.2).   Electricity, gas and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
 
Source : WTO Secretariat estimates, based on data provided by the Saudi authoritie s; imports data from UNSD, Comtrade 
 database. 
(b) MFN bound tariffs 
20. Upon its accession to the WTO, Saudi Arabia bound  100% of its tariff at rates ranging up to 
200% (on tobacco and tobacco-rela ted products) and averaging 10.9%, i.e. average bound rates of 
15.4% on agricultural products, and 10.1% on non-agricultural goods (Table III.1).  The gap between overall average MFN applied tariff a nd the bound rate at 5.7 percenta ge points presents an element of 
uncertainty as it gives the authoriti es some margin for increasing applied MFN tariffs.  Saudi Arabia 
also made seasonal tariff binding commitments for some fruits and vegetables (Table III.4).  The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 27 
 
 
0.02.04.06.08.010.012.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2011
Per cent
Source : WTO Secretariat estimates, based on data provided by the Saudi  authorities.
All products
Food, 
beverages 
and tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal products
Other 
manufacturingNOT APPLICABLEAgriculture
MiningRaw materialsSemi-processed Fully processed
NOT APPLICABLE
 
Table III.4  
Seasonal tariff binding commitments, 2011  
     Custom duty   
HS Code Description From To Duration  
(months) In seasona Out of 
season 
07099020 Pumpkins 1 June End July 2 15% 0%  
07099040 Okra 1 June End August 3 15% 0%  
07020000 Tomato 1 May End August 4 15% 0%  
07070000 Cucumbers 1 May End August 4 15% 0%  
08071910 Watermelons 1 May  End August 4 15% 0%  
08071100 Muskmelons 1 May  End August 4 15% 0%  
07061000 Carrots 1 February End May 4 15% 0%  
07019000 Potatoes 1 January End May 5 15% 0%  
07031011 Dried onions 1 June End October 5 15% 0%  
a Instead of 25% tariff rate. 
Source : Information provided by the Saudi authorities. 
(c) Other duties and charges 
21. Saudi Arabia does not impose VAT, excise duties or any other internal tax or charge on 
domestically produced or imported products.21  It applies other duties and charges on 20 tariff lines 
covering tobacco and tobacco-relate d products (HS Nos. 2401, 2402, and 2403).  Such other duties 
and charges were bound at SAR 0.03/each packet for health reasons.  Saudi Arabia bound other duties 
and charges on the remaining tariff lines at zero. 
                                                      
21 During its WTO accession negotiations, Saudi Arab ia committed to apply any internal taxes or 
charges in compliance with Articles I and III of the GATT 1994 in case an y such taxes were introduced (WTO 
document WT/ACC/SAU/61, 1 November 2005). WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 28 
  
22. Transit goods and the means of transport thereof are not subject to duty or tax.  However, a 
charge of 0.004% of the value of goods in tr ansit, is collected against the service rendered. 
(d) Duty and tax concessions 23. Section VIII of the Common Customs Law of GCC States specifies the agencies and goods 
that are exempt from duty, such as the diplomatic co rps, military forces, personal effects, imports by 
charitable societies, and returned goods. 
24. Saudi Arabia grants tariff exemptions on raw materials, machinery, and equipment imported 
for local factories under the Local and GCC Industr ies Laws.  In addition, duty concessions may be 
granted to all industries or companies on imports necessary for their operations. 
25. Duty concessions are also granted to  exporters (section (2)(iv) below). 
(e) Tariff preferences 26. In principle, all products from GCC members circulate free of duty across the customs union. 
Nonetheless, 1.1% of tariff lines (e.g. alcohol, por k, and related products) correspond to prohibited 
goods that are out of the GCC regime;  they are ba nned for religious reasons.  Similarly, with the 
exception of alcohol and pork-rela ted products, which are excluded fro m Saudi Arabia's preferential 
arrangements, imports originating from the other members of PAFTA enter Saudi Arabia duty free, 
provided that the goods meet the respectiv e origin criteria (Chapter II(4)(ii)(b)). 
27. Saudi Arabia, as a member of the GCC, will star t applying tariff preferences to EFTA states 
and Singapore once these free-trade agreements ente r come into force (Chapter II(4)(ii)(a)).  
(iv) Import prohibitions, restrictions and licensing 
28. Under the GCC Common Customs Law, each GCC state determines its own list of prohibited 
or restricted products, although members are developi ng a common list.  Imports that are prohibited in 
some GCC member states and permitted in others must  not transit through the states in which they are 
prohibited. 
29. Absolute import prohibitions are maintained in  compliance with international conventions, 
and for security, health and safety, moral, a nd religious considerations.  They cover, inter alia , 
narcotics, alcoholic beverages, live swine and swine products, and gambling machines (Table III.5). 
30. Saudi Arabia notified the WTO that it is implementing the Agreement on Import Licensing 
Procedures through the Law on Import Licensing Procedures.
22  Several imports (e.g. chemicals, 
fertilizers, agricultural machinery, certain telecomm unications equipment, ar ms and ammunitions) are 
subject to non-automatic licensing requirements under the responsibility of a specific authority 
(Table AIII.2).23  The purpose of such licences is to en sure that goods that do not meet the 
requirements of various laws, regulations or decisi ons are not imported.  In addition, all imported 
                                                      
22 Council of Ministers Decision No. 88, June 2002. 
23 The list of items subject to licensing requirements may be amended by the Minister of Commerce 
and Industry on the basis of comments received from respective government agencies.  The system can only be 
abolished by a Decision of the Council of Ministers (WTO document G/LIC/N/3/SAU/1, 18 October 2006). The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 29 
 
 
seeds and fertilizers are subject to import licensing.24  Although the law provides for automatic 
licensing, Saudi Arabia does not have automatic licences on any product.  
Table III.5  
Prohibited imports, 2011 
No. HS Code Description WTO justification 
1. 01.03   
 
  
 
  
 
Live swine, meat, fat, hair, blood, guts, limbs and all other 
products of swine 
 
  
 
  
 
   
 
  
 
  
Dogs, other than hunting dogs, gua rd dogs or guide dogs for the 
blind, accompanied by a certificate from a competent authority in 
the country of exportation, duly qualified by the Saudi Arabian 
Embassy stated therein, that the dog to be admitted is a hunting dog, guard dog or guide dog for the blind, in addition to 
submitting to the veterinary quarantine  
GATT Article XX(a) 
  
 
  
 
  
 
  
 
  
 
 GATT Article XX(a) 2 01 06 19 40 
3. 02.03 
4. 02 06 30 00 
5. 02 06 41 00 
6. 02 06 49 00 
7. 02 09 00 10 
8. 02 10 11 00 
9. 02 10 12 00 
10. 02 10 19 00 
11. 05 02 10 00 
12. 15 03 00 11 
13. 15 03 00 21 
14. 15 01 00 30 
15. 15 03 00 91 
16. 16 01 00 11, in addition to 
other relevant headings 
17. 16 01 00 21 
18. 16 01 00 31 
19. 16 02 41 00 
20. 16 02 42 00 
21. 16 02 49 00 
22. 41 03 30 00 
23. 41 03 31 00 
24. 41 06 31 00 
25. 41 06 32 00 
26. 41 13 20 00 
27. 02 08 20 00 Frog meat GATT Article XX(a) 
28. 09 08 10 00 Narcotics of all types, form s, and descriptions GATT Article XX(b) 
29. 09 08 20 00   
30. 12 07 91 00   
31. 12 07 99 10   
32. 12 07 99 20   
33. 12 11 30 00   
34. 12 11 40 00   
35. 12 11 90 20   
36. 12 11 90 60   
Table III.5 (cont'd) 
                                                      
24 The specifications used by the Saudi Standards, Metrology and Quality Organization (SASO) to 
determine whether to approve an application for impor t licence for seeds and fertili zers are described in WTO 
document WT/ACC/SAU/61, Annex G (Seed Specifications), 1 November 2005. WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 30 
  
No. HS Code Description WTO justification 
37. 12 11 90 90 Goro nut GATT Article XXI 
38. 12 11 90 90 Betel GATT Article XX(b) 
39. 13 02 11 00   
40. 13 02 19 10   
41. 29 39 91 10, in addition to 
other relevant headings    
42. 31.01 Animal or vegetable raw natu ral organic fertilizer GATT Article XX(b) 
43. 
44. 45. 
46. 
47. 
48. 22.03 
22.04 
22.05 22.06 
22072090 
22.08, except 22 08 90 11 
and 22 08 90 19 Alcoholic beverages and intoxicants  of all kinds, including those 
containing alcohol in an y intoxicating proportion GATT Article XX(a) 
49. 24 03 99 20 Tobacco snuff – Tobacco "sawika" GATT Article XX(b) 
50. 25 24 00 00 Asbestos and products thereof GATT Article XX(b) 
51. 30 06 80 00 Industrial waste and h azardous refuse GATT Article XX(b) 
52. 36 04 10 00 Fireworks of the kind used by ch ildren such as sn aps, rockets, 
sulphuric jitters and night stars, etc., falling within this scope GATT Article XX(b) 
53. 40.12,except 
40 12 90 00 Used and retreaded tyres GATT Article XX(b) 
54. 49 01 99 10 The Holy Quran GATT Article XX(a) 
55. 49 07 00 11 Saudi Arabian stamps GATT Article XX(d) 
56. 49 09 00 20 Greeting cards with electric circuit GATT Article XXI 
57. 49 11 10 90 Coupons of Hadi (sacrificial animals) GATT Article XX(d) 
58. 49 07 00 90 Blank invoices of foreign companies abroad GATT Article XX(d) 
59. 85 12 30 00 Security car radar-de tection equipment GATT Article XXI 
60. ex 87.01 
ex 87.02 
ex 87.03 
ex 87.04 
ex 87.05 ex 87.09 Damaged vehicles, and right-hand-dr ive vehicles GATT Article XX(b) 
61. ex 87.11 Two, three and four wheeler children's motor cycles or vehicles 
less than 50cm high. GATT Article XX(b) 
 
62. 90 13 10 00 Binoculars in which an electric circ uit is used and directly projects 
red light on the target GATT Article XXI 
63. 93020000 
93040090 93 07 00 90 Revolvers and pistols in the shape of mobile phones, lighters, 
pagers, pens or other pistols GATT Article XXI 
64. 95 03 80 00 Remote control airplane s and parts thereof GATT Article XXI 
65. 95 03 90 00 Noise-making pistols and guns, and to y pistols similar in shape to 
real pistols GATT Article XXI 
66. 97 05 00 00 Mummified animals GATT Article XX(a) 
67. Different headings All foodstu ff containing animal blood in th eir manufacturing GATT Article XX(a) 
68. Different headings Drink having desc ription of Zamzam GATT Article XX(a) 
69. Different Headings All types of machines, equipment, and tools for gambling or games 
of chance GATT Article XX(a) 
70. Different headings Kuwait and Iraq war le ftover equipment and machinery GATT Article XXI 
71. Different headings Publicity material for cigarettes of any kind GATT Article XX(b) 
72. Different headings Products polluted by radiation or  nuclear dust (e.g., watches of 
trademark Trophy) GATT Article XX(b) 
 
Source : Information provided by the Saudi Authorities. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 31 
 
 
31. The following are eligible to apply for an import licence:  (i) Saudi, foreign or joint-venture 
companies registered under applicable Saudi laws;  (ii) natural persons listed in the Commercial 
Register;  and (iii) Saudi nationals and non-Saudis ho lding residence permits but not registered in the 
Commercial Register provided the imported goods are for their personal use.25  Licences are valid for 
one year from the date of issue;  extension may be gr anted if it is in the public interest.  Applications 
may be submitted within 21 days prior to expiry.  The maximum period for deciding on licence applications is 30 days;  however, in practice licen ces are granted in a shorter period.  There are no 
licencing fees or administrative charges.
26  There is no penalty for non-utilization of a licence or 
portion of a licence.  Licences are not transferable between importers. 
32. Food, plant, and animal imports that are restricted for health reasons must be accompanied by 
SPS certificates from the exporting country.  In addi tion, pharmaceutical products must be imported 
directly from manufacturers with research departme nts, and the products must be licenced in the 
country of manufacture.  Imports of any wildlife speci es (animals or plants) and their products must 
be accompanied by the CITES permit from the exporting or re-exporting country, and an import 
permit from the Saudi Wildlife Authority.27 
(v) Contingency trade remedies 
33. Saudi Arabia notified the WTO that it has no natio nal laws or regulations related to the WTO 
Anti-Dumping, Subsidies and Counter vailing, and Safeguards Agreements.28  Saudi Arabia has never 
imposed any anti-dumping, countervailing or safeguard measures.   
34. Saudi Arabia adopted the GCC Comm on Law on Antidumping, Safeguards and 
Countervailing Measures (GCC Common Law) thro ugh Royal Decree No. M/30 on 14 June 2006 
(17.5.1427H).29  Each GCC country has its own national body for contingency trade remedies:  
Saudi Arabia's is the General Department of An tidumping, Countervailing and Safeguard Measures of 
the MCI.30 
35. A Technical Committee established in Marc h 2008 to review and amend the GCC Common 
Law and its Implementing Regulations, completed its  work in December 2010.  According to the 
authorities, Saudi Arabia is in the process of  adopting the amended GCC Common Law and its 
Implementing Regulations, and will be notified to the WTO after their publication in the Official 
Gazette. 
36. GCC member states have agreed to establish one regional authority to conduct contingency 
trade remedy investigations of imports into the GCC market.  The GCC Common Law established the 
                                                      
25 Imports by parties in (i) and (ii) are limited to  goods related to the scope of their business as 
inscribed in the Commercial Register. 
26 There are no deposit or advance payment requirements associated w ith the issue of a licence, and no 
limitations as to the period of the year during which ap plications or imports may be made.  Applications are not 
refused other than for reasons of failure to meet the crite ria;  the reasons for refusal of a licence are given to the 
applicant on request.  Applicants have a right of appeal in the event of refusal of a licence.  The initial appeal 
may be made to the Head of the administrative body within 15 days of the decision.  Appeal against the decision 
of the Head of the administrative body is to the Board of Grievances within 30 days of the decision. 
27 Act on Trade of Endangered Wildlife Species and Th eir Products, issued by Royal Decree No. M/9, 
8 June 2000. 
28 WTO documents G/ADP/N/1/SAU/1, G/SCM/N/ 1/SAU/1, G/SG/N/1/SAU/1, 11 March 2009. 
29 The GCC Common Law was adopted by the GCC Supreme Council during its 24th session, held in 
Kuwait on 21-22 December 2003.  Th e Implementing Regulations were issued by the GCC Industrial 
Cooperation Committee on 11 October 2004. 
30 See MCI online information.  Viewed at:  http://www.mci.gov.sa. WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 32 
  
Permanent Committee (PC) and the Technical Secretariat of the PC.  All complaints must be 
submitted to the Technical Secretariat.  Within sev en days the PC notifies the complainant whether it 
accepts or rejects the complaint; within 30 days th e Technical Secretariat examines the accuracy and 
adequacy of the complaint and submits a preliminar y report to the PC with its recommendations to 
initiate an investigation or reject the complaint.   The GCC Ministerial Committee is the competent 
authority to decide on the imposition of definitive measures, following a recommendation from the PC.  Affected parties may appeal to the Minist erial Committee, within 30 days from the date of 
publishing such decisions in the official gazette of the Technical Secretariat.  The appeal is to be 
examined within 60 days from the date submitted.  
37. GCC member states have also agreed that the domestic industries eligible to submit 
complaints are the GCC producers of "like produc ts" as a whole, or those whose collective output 
represents more than 50% of the GCC production of those products, i.e. trade remedy investigations 
examine the GCC market as one market, and all G CC producers of the "like products" within the 
GCC are treated as a single domestic industry. 
38. The GCC Ministerial Committee has not applied any trade remedy measure.  It has initiated 
two safeguard investigations, wh ich were terminated due to lack of injury in both cases.
31 
(vi) Standards and other technical requirements 
(a) Standards, metrology, testing, and certification 
39. Saudi Arabia accepted the TBT C ode of Good Practice on 2 May 2006.32  The Saudi 
Standards, Metrology and Quality Organization (S ASO), previously known as Saudi Arabia Standards 
Organization, is the enquiry point.33  SASO is responsible for standardization, metrology, testing, 
quality control and quality assurance, conformity  assessment and certification, and accreditation 
activities.34  SASO is also in-charge of WTO notifi cations.  Saudi Arabia has made over 200 TBT 
notifications since becoming a WTO Member. 
40. SASO's Technical Directive provides for na tional treatment and non-discrimination with 
respect to products in the context of developmen t and application of technical regulations and 
conformity assessment procedures.35  The Directive also requires SASO to consider relevant 
international standards as a basis for preparing Sa udi technical regulations and standards unless these 
international standards or their parts are ineff ective or an inappropriate means for achieving the 
intended, legitimate objectives.36  All draft standards, technical regulations and conformity 
assessments are made available for public comments for at least 60 days37, before they are adopted.  
A reasonable period of time, usually six months unl ess there is an emergency situation, is given 
between the final publication and entry into force of a technical regulation.  Technical regulations and 
standards normally enter into effect after six m onths, unless an emergency situation requires this 
                                                      
31 Both cases were initiated in November 2009, one against increased imports of other uncoated paper 
and paperboard in rolls or sheets, and the other against increased imports of angles, channels, and beams. 
32 WTO document G/TBT/CS/N/167, 8 May 2006. 
33 WTO document G/TBT/ENQ/37, 15 June 2010. 
34 SASO is the sole body for standardization in Saudi Arabia.  Its Board of Directors consists of all 
concerned ministries, government agenci es and the private sector.  SASO is  entrusted with all standardization 
activities in Saudi Arabia (WTO document G/TBT/2/Add.89, 19 May 2006). 
35 SASO's Technical Directive (with the force of law) was issued and implemented on 18 July 2000, 
and amended on 19 July 2005. 
36 This, for example, could be due to their inconsistency with Islamic law or to climate, geographical 
factors or basic technical problems. 
37 In case of urgency, the period of 60 days may be reduced. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 33 
 
 
period to be reduced.  Draft technical regulations, standards, and conformity assessment procedures 
are available on SASO website.38  Texts of technical regulations, standards, and conformity 
assessment procedures after approval by SASO Board of Directors, are available in the SASO Information Centre.  
41. All mandatory standards in Saudi Arabia appl y equally to locally produced and imported 
products (Table AIII.3).  Technical committees make recommendations to SASO on whether a 
standard should be voluntary or mandatory.
39  According to the authorities, the criteria for adopting a 
standard as compulsory (technical regulation) is b ased on the fulfilment of legitimate objectives, such 
as protection of health, safety, national security, Isla mic Law, and the environment, and prevention of 
deceptive practices.  A Decision by the SASO Board of  Directors is required for a standard to become 
compulsory.  Technical regulations are published in the Official Gazette . 
42. Saudi Arabia is harmonizing its technical regul ations and standards at the GCC level.  
GCC-wide standards may be proposed/initiated by a body in a member country, and are processed 
through the technical committees of the Gulf Sta ndards Organization (GSO), which is based in 
Riyadh.  The proposal requires support from most member countries in order to be included in the 
GSO work programme.40  Once approved, GSO standards are circulated to all GCC member states for 
adoption.  In general, GCC and Sa udi standards are based on interna tional standards.  According to 
the authorities, Saudi Arabia develops technical regul ations and standards at the national level only if 
there is a pressing need.  As of 30 June 2011, Saud i Arabia had 20,507 standards in place, of which 
5,415 were based on GCC standards as formulated by  GSO;  1,304 were compulsory standards (e.g. 
on cars, tyres, toys, food items, construction materials,  and electrical appliances).  From 1 July 2011, 
technical regulations and standards related to food, feed, pesticides,  cosmetics, and medical devices 
were transferred to the Saudi Food and Drug Authority (SFDA). 
43. The "Conformity Certificate (also known as Certificate of Conformity) for the Goods 
Exported to the Kingdom of Saudi Arabia" replac ed the International Conformity Certification 
Programme (ICCP) and applies to all products, incl uding domestic products, except those subject to 
SPS regulations (section (b) below).41  It requires every shipment of products sold in Saudi Arabia to 
be accompanied by a document certifying that the pr oduct conforms to the relevant Saudi technical 
regulation or standard.  The conformity certificate may be issued by an accredited certification body, or an accredited laboratory as a third party.  The purp ose of the certificate of conformity is to enhance 
and speed-up the release and declaration of products  exported to Saudi Arabia. Customs has the right 
to draw random samples for testing in local accredited laboratories.  There is no geographic or 
nationality limitation for conformity assessment or accreditation bodies.  
44. Saudi Arabia has concluded mutual recognition agreements with Argentina, China, Egypt, 
Germany, Indonesia, Jordan, Korea (Rep. of),  Malaysia, Pakistan, Philippines, Singapore, 
South Africa, Tunisia, and Turkey.  The GCC Standards Committee is developing a conformity 
assessment scheme to be adopted by each of the seven member countries, and has set 2011 as 
deadline for full implementation in the case of children toys. 
                                                      
38 Viewed at:  http://www.saso.org.sa. 
39 The technical committees are on:  agriculture and food products; construction and building materials;  
electrical and electronic products;  mechanical and metal products; chemical and petroleum products;  textile 
products;  and measurement and calibration (WTO document WT/ACC/SAU/61, 1 November 2005). 
40 Draft standards, technical regulations and confor mity assessment are circulated to the technical 
committee members and other stakehol ders in the GCC countries.  
41 Under Council of Ministers Decision No. 213, 30 September 2003, Saudi Arabia no longer operates 
(as from 28 August 2004) the International Conformity Certification Programme (ICCP), a pre-shipment certification programme. WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 34 
  
45. Under Saudi Arabia's product certification schem e, manufacturers may apply to use the SASO 
Quality Mark on one or more of their products.42  It is subject to a fee to cover actual costs.  The 
one-year renewable licence to use the quality mark is  granted by SASO after inspection and testing to 
verify that the product complies with applicable  Saudi/GCC standards.  Licencees are subject to 
periodic inspection and assessment by SASO during the licence period.  SASO has six laboratories for 
testing construction materials, general material s, electrical products, textiles, chemicals, and 
petroleum products.  In addition,  SASO manages the national me trology laboratory for legal and 
industrial metrology activities; some 2,236 samples we re calibrated by this laboratory during 2006-10. 
46. Saudi Arabia, represented by SASO, is a member of the Arab Centre for Standardization and 
Metrology in the Arab Organization for Indus trial Development and Mining (AIDMO);  the 
International Organization for Standardization (ISO) ;  the International Electrotechnical Commission 
(IEC);  the International Organization for Legal Metrology (OIML);  and the Codex Alimentarius 
Commission (CAC).  SASO has also signed MOUs  on technical cooperation in standardization, 
quality, and metrology with Algeria, Australia, Austri a, Brazil, China, Egypt, France, Germany, India, 
Indonesia, Iran, Italy, Jordan, Korea (Rep. of), Switzerland, Chinese Taipei, Tunisia, Turkey, UAE, 
the United States, and Yemen.43 
(b) Sanitary and phytosanitary measures 47. The national enquiry point under the WTO SPS Agreement is the Saudi Food and Drug 
Authority (SFDA)
 44, an independent body that reports directly to the Council of Ministers.  It aims to 
ensure food and drug safety for humans and animal s, and the safety of biological and chemical 
substances, as well as medical devices and electr onic products that might affect human health.45  
Saudi Arabia has made 11 SPS notifications since becoming a WTO Member. 
                                                      
42 The SASO Quality Mark, a voluntary programme, is gr anted without distinction as to the origin of 
the products.  It is applicable for factories, wh ile the conformity certifi cate is for consignments. 
43 Algerian Institute of Standardization;  Standards Australia;  Austrian Standards Institute;  Brazilian 
Association of Technical Standards;  China's General Administration of Quality Supervision, Inspection and 
Quarantine;  Chinese Taipei's Bureau of Standards,  Metrology and Inspection;  Egyptian Organization for 
Standardization and Quality;  IEC National Committee of France;  French Industry Association for Electrical 
Equipment, Automation, and Related Services;  German International Co-operation;  Bureau of Indian 
Standards;  National Standardization Agency of Indonesia;  Institute of Standards and Industrial Research of 
Iran;  Italian Standards Organization;  Jordan Standards and Metrology Organization;  Korean Agency for Technology and Standards;  Korea Research Institute of Standards and Science;  Swiss Association for 
Standardization;  Tunisia's National Institute for Standa rdization and Industrial Property;  Turkish Standards 
Institution; Emirates Authority for Standardization a nd Metrology;  American National Standards Institute; 
American Society for Testing and Mate rials;  National Fire Protection As sociation;  American Society of 
Refrigerating, and Engineers;  Underwriters Laborato ries Inc.;  Air-Conditioning , Heating, Refrigeration 
Institute;  National Institute of Standards and Technology;  American Society of Mechanical Engineers;  and 
Yemen Standardization, Metrology and Quality Control Organization. 
44 WTO document G/SPS/ENQ/25, 15 October 2009. 
45 The Board of Directors, chaired by HRH the Crown Prince and Minister of Defence, Aviation and 
Inspector General, manages SFDA.  Its membership include s:  the Minister of Municipality and Rural Affairs as 
vice-chairman, the ministers of Interi or, of Health, of Commerce and Industry, of Agriculture, of Water and 
Electricity, of Finance, and of Economy and Planning, as well as the Director General (Governor) of SASO, the 
Chairperson of the Council of Chambers of Commerce and Industry, the Authority's Executive Chief, and a 
person specialized in food and drugs (SFDA online info rmation.  Viewed at:  http://www.sfda.gov.sa/En/Home/ 
Topics/about). The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
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48. Since 2003, Saudi Arabia has been applying the GCC Laws on Veterinary Quarantine and 
Plant Quarantine.46  Imports, exports, and domestic production of plants and animals are subject to 
inspection by the Ministry of Agriculture, which also examines and issues SPS certificates for all 
agricultural products prior to their export.  All impor ts of plants must be accompanied by agricultural 
clearance certificates issued by th e appropriate authorities in the country of export.  Phytosanitary 
certificates are also required for imports of agricultu ral seeds, plants, plant parts, and plant products. 
49. The list of Saudi Arabia's SPS measures is shown in Table AIII.4.  In addition, Saudi Arabia 
bans the import of therapeutic medicines used in animal feed.  Saudi Arabia's SPS "routine" measures 
are published 60 days in advance of their applicatio n.  Saudi draft standards for food are available on 
the SFDA website47, while approved standards and SPS regulati ons in Saudi Arabia are published in 
the Official Gazette  and are accessible on the MCI website.48  
50. Saudi Arabia is a member of the World Organization for Animal Health (OIE), the 
International Plant Protection Conven tion (IPPC), and Codex Alimentarius.49 
(c) Marking, labelling, and packaging requirements 51. SASO is responsible for establishing marking, labelling, and packaging requirements.  Saudi 
Arabia is updating its packaging and product labe lling standards in line with the GSO norms.  
In June 2007, two new standards for the labelling and expiry period of f ood products were approved 
at the GCC level.  They eliminate the long-standing requirement that at least half of a product's shelf-
life must be valid when a product reaches a GCC por t of entry.  Moreover, mandatory shelf-life is 
now stipulated only for perishable food products and baby food, while voluntary shelf-life standards 
apply to other food products. 
52. Labels must be in Arabic in addition to any other language, although a small number of 
products with labels only in E nglish may be approved, on a case-by-case basis, for marketing test 
purposes.  Food labels must contain product names, production and expiry dates, country of origin, 
name and address of the manufacturer, net contents in  metric units, list of ingredients and additives in 
descending order of importance, lot identification,  and instructions for storage and use (where 
applicable).
50 
53. As an Islamic country, Saudi Arabia has stri ct marking and labelling requirements for meat 
and poultry products, including that the product was slaughtered according to Islamic halal 
procedures, if so required.  Packaged fresh or fro zen meat and poultry must also carry the following 
information:  bilingual labelling, of which one la nguage must be Arabic;  country of origin;  
production (slaughtering or freezing) and expiry dates, including the name of the month;  shelf life of 
the product;  metric net weight;  and product identif ication.  Pre-packaged processed meat and poultry 
must display production and expiry dates as well as the net weight of the product. 
                                                      
46 Council of Ministers Decision No. 109, 30 June 2003.  Items allowed to enter any GCC port are 
allowed to enter all GCC countries;  customs procedures , such as inspection, laboratory analysis, and customs 
fees are handled at th e first port of entry. 
47 Viewed at:  http://www.sfda.gov.sa. 
48 Viewed at:  http://www.mci.gov.sa.  According to the authorities, full sets of guidelines detailing all 
requirements on SPS matters are available to any interested party. 
49 WTO document, G/SPS/GEN/49/Rev.10, 4 March 2010. 
50 GCC Technical Regulation No. 9, 1995. WT/TPR/S/256/Rev.1 Trade Policy Review 
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(vii) Government procurement 
54. The main legal instruments relating to governme nt procurement are the Government Tenders 
and Procurement Law51;  Government Tendering a nd Procurement Regulations52;  Implementing 
Regulations of Government Tenders and Procurement Law53;  and the GCC Unified Rules of Granting 
Priority in Government Procurements to Na tional Products and Products of National Origin.54  I n  
addition, Council of Ministers' Resolution No. 23 dated 5 February 2007 addresses barriers facing the 
construction works sector and the Saudization of pr ojects, while Council of Ministers' Resolution 
No. 155 dated 9 June 2008 addresses compensation issues under a compensation committee.55  
55. Some of the key objectives of the government pr ocurement framework ar e to:  ensure that 
bids are not influenced by personal interest, in  order to protect public funds;  obtain maximum 
economic efficiency and competition for government projects at fair competitive process;  promote honesty, competition, and the fair treatment of all bids;  guarantee transparency;  advance the public 
interest by ensuring tenders are not tailored to f it the capacities of certain suppliers;  and attract 
expertise to the project that may be beyond the capabilities of the relevant government authority.  
56. There is no central government procurement au thority in Saudi Arabia;  each government 
agency may procure goods, works, and services under its own decentralized budget.  Government 
works and procurements must be put up for pub lic tender, unless exempted under the Procurement 
Law (Article 6).  The Procurement Law also app lies to projects and works executed by government 
authorities outside Saudi Arabia (Article 70)
56, but does not apply to certain procurements, including 
(Article 47):  weapons and military equipment; c onsultancy;  spare parts;  goods and services 
available only through one supplier;  and medical supp lies urgently needed in outbreaks of epidemics. 
57. According to the authorities, Saudi Arabia em ploys mostly open tendering procedures.  Other 
procurement procedures used include:  selective tendering;  limited tende ring, and single tendering.57 
The value of a single-tender purchase must not exceed SAR 1 million.  Foreign suppliers that participate in government procurement are required, inter alia , to register with the Saudi Arabian 
General Investment Authority (SAGIA), and estab lish a training programme for Saudi nationals.  
There is frequently an offset requirement for la rge military projects, which is determined on a 
project-by-project basis.
58 
58. The responsible Minister or the head of an independent agency may delegate authority to 
decide on particular bids and the execution of work s to a suitable official, where the amount involved 
does not exceed SAR 3 million (Article 26);  projects valued at SAR 300,000 or less may be 
documented by correspondence rather than formal agre ement (Article 31).  The Minister of Finance is 
not required to review leases or investment contr acts with an annual return of less than SAR 50,000 
(Article 142 of the Regulations);  and after notifyi ng the Ministry of Finance, government authorities 
                                                      
51 Royal Decree No. M/58, 4/9/1427H (27 September 2006). 
52 Royal Decree No. M/58, 27 September 2006, Resolution of the Council of Ministers No. 223, 
2/9/1427H (2 September 2006), and circular of the Minister of Justice No. 13/T/2971, 17/9/1427H 
(17 September 2006). 
53 Minister of Finance Decision No. 362, 20/3/1428H (10 March 2007). 
54 Council of Ministers' Resolution No. 139, 25/6/1407H (24 February 1987). 
55 This committee has representatives from differ ent government agencies de pending on the issue. 
56 Any proposed exemption to this requirement is reviewed by the Ministry of Finance, which will 
consider the circumstances surrounding the project and th e public interest:  the final decision rests with the 
President of the Council of Ministers. 
57 Single tendering is used for emergency cases or for special contracts when there is no other way to 
purchase a good. 
58 USTR (2010). The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 37 
 
 
may dispose of unwanted movables not required by other government authorities by public auction 
(where the value exceeds SAR 300,000) or by p ublic auction or other approved manner in the 
interests of the public treasury (where the valu e is less than SAR 300,000) (Articles 55 and 56).  
Procurements and works may not be split to make them  eligible for direct purchase or in order to fall 
within the authority of delegated officials (Article 46). 
59. Government authorities must submit contract s whose execution period exceeds one year and 
whose value exceeds SAR 5 million to the Ministry of Finance for review (Article 32).  The Ministry 
has 14 days to respond.  Major projects in this category are likely to include those involving build, own, operate, and transfer (BOOT) schemes, where ow nership of constructed facilities reverts to the 
relevant government authority at the end of the cont ract term.  In this context, the Procurement Law 
authorizes government authorities to lease land in return for the construction of facilities. 
60. In general, tender notices must be published in  well-spread local newspapers, and in the 
Official Gazette  for purchases of at least SAR 1 million.  Notices may also be announced on radio, 
television and on some official websites.  Bidders ar e requested to be present at the opening of bids.  
Tender opportunities are published in Arabic and E nglish.  Contract award notices are published 
online.  Successful bidders are required to provide a performance bond (5% of the value of the 
contract) as a guarantee.  Unsuccessful bidders are in formed of the grounds for exclusion by official 
letter;  they may appeal to the Board of Grievances. 
61. Saudi Arabia grants a 10% price preference for Saudi products and 5% price preference for 
GCC products in all government procurement.
59 
62. Saudi Arabia became an observer to the WTO Plurilateral Agreement on Government 
Procurement (GPA) in December 2007; it has not begun negotiations for GPA membership.60 
(viii) Local-content requirements 
63. Saudi Arabia has notified the WTO that it has not applied and does not apply any trade-
related investment measures that are inconsiste nt with the provisions of the TRIMs Agreement.61  
According to the authorities, Saudi Arabia does not apply any local-content requirements. 
(ix) Other measures 
64. Saudi Arabia maintains six-month wheat rese rve stocks to face emergency situations 
(Chapter IV(1)(ii)).62 
65. Saudi Arabia does not apply any sanctions ap art from those adopted by the United Nations 
Security Council, or regional organizations of wh ich it is member.  No official countertrade or 
offsetting arrangements, or agreements designed to  influence the quantity or value of goods and 
services imported by Saudi Arabia are currently in fo rce.  The authorities indicate that no agreements 
have been concluded with foreign governments or firm s to restrict exports to Saudi Arabia.  It has 
never taken any measures for balance-of-payment purposes. 
                                                      
59 Council of Ministers' Resolution No. 139, 1987 and the GCC Unified Rules. 
60 In its WTO accession commitments, Saudi Arabia indicated that it would initiate negotiations for 
GPA membership (see WTO document WT/ACC/SAU/61, 1 November 2005, paragraph 231). 
61 WTO document G/TRIMS/N/1/SAU1, 13 October 2006. 
62 Shura Council Decision No. 51/64, 12/1/1423H (26 March 2002). WT/TPR/S/256/Rev.1 Trade Policy Review 
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(2) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
66. Similar registration and documen tation requirements apply to exporters and importers in 
Saudi Arabia (section (1)(i) above).  Additional doc umentation may be require d for exports that are 
subject to authorization/licensing from the relevant ministries (section (iii) below). 
(ii) Export duties and taxes 
67. An export duty is applied to untanned hides and skins at a rate of SAR 2000/tonne (about 
20%).63  It is being reduced by 20% annually ( as from 10 September 2008), and will be completely 
eliminated on 10 September 2013.  Currently, Saudi Arabia does not apply any other export duty. 
(iii) Export prohibitions, restrictions and licensing 
68. Saudi Arabia maintains export bans on 11 cat egories of products, including some animals 
(e.g. Arabian breeding horses) and wood (Table III.6).64  According to the authorities, the export ban 
on scrap metal was lifted on 26 February 2006. 
Table III.6  
Prohibited exports, 2011 
No. HS Code Description WTO justification 
1. ex 01 01 10 10 Arabian breed, pure-bred  horses, females GATT Article XX(b) 
2. ex 01 01 10 20 Arabian breed, pure-bred  horses, females GATT Article XX(b) 
3. ex 01 01 90 10 Race horses, females GATT Article XX(b) 
4. ex 01 01 90 20 Ponies, females GATT Article XX(b) 
5. ex 01 02 Bovine animals, females GATT Article XX(b) 
6. ex 01 04 Sheep and goats, females GATT Article XX(b) 
7. ex 01 06 19 11 Camels, females GATT Article XX(b) 
8. 12 14 Green fodder and hay GATT Article XX(b) 
9. ex 22 01 90 10 Zamzam water GATT Article XX(a) 
10. 44 01 10 00 Wood GATT Article XX(j) 
11. 97 06 Antiques and archaeological a nd historical items GATT Article XX(f) 
 
Source : Information provided by the Saudi Authorities. 
69. Exports subject to authorization/licensing requi rements (Table III.7), are published in the 
Official Gazette . Any trader or manufacturer may apply for an export licence, for which there are no 
fees.  Applications should be submitted to the re levant authority.  Licences may be automatic or 
non-automatic, and the time required to obtain them depends upon the nature of the exported product. 
70. Exports of any wildlife species (animals or pl ants) and their products must be accompanied 
by a CITES permit.65 
 
                                                      
63 HS Nos. 4101, 4102 and 4103;  and WTO document WT/ACC/SAU/61, 1 November 2005. 
64 The export ban on date seedlings and breeding horses is because the local breeds and varieties of 
these two items are pure and rare (WTO document WT/ACC/SAU/61, 1 November 2005). 
65 Act on Trade of Endangered Wildlife Species and Th eir Products, issued by Royal Decree No. M/9, 
8 June 2000.  The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
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Table III.7 
Exports subject to authorization/licensing, 2011 
No. HS Code Description  WTO Justification Authority 
1. 01 01 10 10 Horses, pure-bred GATT Article XI: 2(b) Equestrian Club 
2. 01 01 10 20 Horses, pure-bred GATT Article XI: 2(b) Equestrian Club 
3. 01 01 90 10 Horses, pure-bred GATT Article XI: 2(b) Equestrian Club 
4. 01 01 90 20 Horses, pure-bred GATT Article. XI: 2(b) Equestrian Club 
5. 10 01 Wheat GATT Article XX (d) Gen Silo and Mills Org 
6. 10 03 00 00 Barley GATT Article XX (d) Ministry of Finance  
7. 10 05 90 10 Golden corn GATT Article XX (d) Ministry of Finance 
8. 10 05 90 20 White corn GATT Article XX (d) Ministry of Finance 
9. 11 01 00 10 Wheat flour GATT Article XX (d) Ministry of Finance 
10. 12 01 Soya beans GATT Article XX (d) Ministry of Finance 
11. 19 01 10 10 Milk-based infant food GATT Article XX (d) Ministry of Finance 
12. 19 01 10 20 Milk-based infant food GATT Article XX (d) Ministry of Finance 
13. 25 05 Sand GATT Article XX (i) Ministry of Petroleum and 
Mineral Resources 
14. 25 06 21 10 Sand mixed aggregates GATT Ar ticle XX (i) Ministry of Petroleum and 
Mineral Resources 
15. 25 06 21 20 Sand mixed aggregates GATT Ar ticle XX (i) Ministry of Petroleum and 
Mineral Resources 
16. 25 15 11 00 Marble GATT Article XX (i) Ministry of Petroleum and 
Mineral Resources 
17. 25 17 Stone mixtures GATT Article  XX (i) Ministry of Petroleum and 
Mineral Resources 
18. 25 22 Limestone GATT Article XX (i) Ministry of Petroleum and 
Mineral Resources 
19. 27 09 Crude oil  Automatic licensing Ministry of Petroleum and 
Mineral Resources 
20. 27 10, 
except Naptha  Fuels Automatic licensing Ministry of Petroleum and 
Mineral Resources 
21. 27 11 Gases, including liquefied 
gases Automatic licensing Ministry of Petroleum and  
Mineral Resources 
22. 27 14 Asphalt Automatic licensing Ministry of Petroleum and  
Mineral Resources 
23. 28 44 Radioactive materials GATT Article XX (b) Ministry of Interior  
24. 28 45 Radioactive materials GATT Article XX (b) Ministry of Interior 
25. 90 22 19 10 Radioactive materials GATT Article XX (b) Ministry of Interior 
26. 90 22 19 90 Radioactive materials GATT Article XX (b) Ministry of Interior 
27. 
28. 29. 29 03 19 10 
29 03 45 29 03 49 Ozone depleting materials GATT Ar ticle XX (b) Meteorological and 
Environmental Protection 
Agency 
30. 30 03 Medicines GATT Article XX (b) Ministry of Health  
31. 30 04 Medicines GATT Article XX (b) Ministry of Health 
32. 73 11 00 30 Filled gas cylinders GATT Ar ticle XXI Ministry of Petroleum and 
Mineral Resources 
Table III.7 (cont'd) WT/TPR/S/256/Rev.1 Trade Policy Review 
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No. HS Code Description  WTO Justification Authority 
33. 
34. 35. 36. 
37. 
38. 39. 
40. 
41. 42. 
43. 
44. 45. 84 07 90 00 
84 08 80 00 84 11 84 12 80 00 
84 13 50 00 
84 13 60 00 84 13 70 00 
84 13 81 00 
84 32 84 33 
87 01 10 00 
87 01 30 00 87 01 90 00 Agricultural machinery GATT Article  XX (d) Saudi Agricultural Bank 
46. 85 48 10 00 Scraps of batteries, etc.  GATT Article XX (b) Meteorological and 
Environmental Protection 
Agency 
47. Different headings W ild fauna and flora, and 
products thereof GATT Article XX (g) Saudi Wild Life Authority 
 
Source : Information provided by the Saudi Authorities. 
(iv) Export subsidies, finance, insurance, and assistance 
71. Saudi Arabia has notified the WTO that it does not have any subsidy programmes that are 
inconsistent with the provisions of the Ag reement on Subsidies and Countervailing Measures66, and 
does not maintain or use any prohibited subsidies within the scope of Article 3 of the Agreement.67 
72. Saudi Arabia continues its efforts to divers ify the economic base and reduce reliance on oil 
exports.  To this end, three main entities are ai ming to expand Saudi non-oil exports:  (i) the Saudi 
Export Programme (SEP) of the Saudi Fund for Development (SFD);  (ii) the Saudi Export 
Development Centre (SEDC);  and (iii) the Saudi Exports Development Authority (SEDA).68 
73. The SEP, established in 1999 as the official national export credit agency, aims, inter alia , to 
help exporters overcome difficulties in receiving export proceeds for commercial reasons, i.e. an 
importer's failure to pay or for political reasons, i.e. the importer's country hindering payment.  Based 
on commercial principles, the SEP implements trade transactions through local and foreign banks, and 
develops its own assessment and classification of  the political and commercial risk of relevant 
markets.  The export finance insurance policy, a comprehensive policy for all Saudi exports, covers 
up to 90% of commercial or political default risk s.  Various export finance and credit insurance 
operations are undertaken under the SFD (Table III.8).  Recently, it began to offer financing for Saudi 
exports to countries where there is no commercial coverage, no corresponding banks and/or high-risk 
country/bank. 
                                                      
66 WTO document G/SCM/N/2/SAU, 11 October 2006. 
67 WTO document G/SCM/N/9/SAU, 12 October 2006. 
68 SAMA (2010). The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 41 
 
 
Table III.8 
Export finance and guarantee, 2007-09 
(SAR million) 
 2007 2008 2009 
Description Finance Guarantee Finance Guarantee Finance Guarantee 
Manufactured metal products, 
machines and equipment 3.15 5.66 231.25 1.90 311.38 22.80 
Chemical and plastic products 110.47 936.55 483.75 3,222.12 451.00 2,102.40 
Capital projects 40.88 15.73 0.00 23.19 37.50 0.00 
Credit lines 277.50 0.00 123.75 0.00 145.00 0.00 
Other  0.00 178.05 0.00 278.24 20.00 136.78 
Total 432.00 1,135.99 838.75 3,525.45 964.88 2,261.98 
Source:  SAMA (2010), 46th Annual Report .  Viewed at:  http:// www.sama.gov.sa/sites /samaen/ReportsSta tistics/Reports 
 StatisticsLib/5600_R_Annual_EN_2010_11_14.pdf.   
74. The SEDC, which is financially supported by the Chambers of Commerce and Industry in 
Riyadh, Jeddah, and the Eastern Region is a non-profit body that offers, inter alia , export consultative 
services, information, studies, and economic reports to affiliated Saudi export companies and 
factories.  It also provides regulations on impor t and export in external markets, training, and 
acquainting exporters with sources of export finance and credit. 
75. Some of the main functions of the SEDA, established in 200769 are:  preparing plans and 
programmes to develop exports and increase their competitive capacity;  developing the policies and 
legislation necessary to achieve the objectives of these programmes and plans;  improving the export 
environment;  providing incentives to exporters, and protecting investments;  cooperating with trade 
representatives abroad and chambers of industry an d commerce to identify best exporting practices, 
create new opportunities for exporters, and impr ove the export environment;  and providing 
administrative, technical, and consultative assi stance and incentives for marketing exports and 
attracting foreign investors. 
76. Duty concessions are granted under the re-export or transit regimes.  Importers using the 
import for re-export regime make a deposit or provi de a bank guarantee in lieu of the payable duty;  
the guarantee is refunded/released on proof of re-e xport.  Goods that can be re-exported are:  
(i) imports not withdrawn from customs warehouses;  (ii) imports to be exported that have been 
granted a temporary release, from six months to thr ee years, against a bank or cash guarantee;  (iii) 
imports under the temporary entry scheme to be re-exported;  and (iv) goods put in warehouses.70  If 
the goods are sold in Saudi Arabia instead of be ing re-exported, the appropriate duties are levied. 
77. Duty refund is allowed under Article 16 of the Implementing Regulation of the GCC Customs 
Law.  It permits exporters to recover the duty paid on their imports once these are re-exported from 
Saudi Arabia.  The qualifying conditions include:  that the exporter is also the original importer of the 
product;  that the original c.i.f. value of the re-exported goods is not less than US$5,000 or its 
equivalent in local currency of GCC countries;  that the goods are re-exported within one year of 
payment of the import duty, in the same condition as when they were imported;  and that the exports 
are not restricted under Saudi Law, unless prior perm ission is obtained from the relevant authority.  
Proof is required that the goods being re-exported are identical to the goods that were imported. 
                                                      
69 Council of Ministers Resolution No. 59, 5 March 2007. 
70 Customs may inspect all goods stored in bonded warehouses.  No distinction is made between locally 
owned and foreign-owned companies in re spect of access to bonded warehouses. WT/TPR/S/256/Rev.1 Trade Policy Review 
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78. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provides 
export credit guarantees to member states.  In a ddition, it provides member states investment 
insurance and guarantees against country risks.71 
(v) Free zones 
79. Saudi Arabia has no free zones or free econo mic zones and no related legislation on the 
subject.  However, Articles 77-88 of the GCC Unif ied Customs Law permit the establishment of such 
zones.72 
(vi) Other measures 
80. According to the authorities, Saudi Arabia do es not participate in any arrangements designed 
to curb or control exports to third countries at  the request of foreign governments/companies. 
(3) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
81. Saudi Arabia offers various incentives to na tional and foreign investors to encourage 
investment.  Their aim is to promote the count ry's development objectives, and introduce new 
industries, products, and technologies. 
82. In addition to import duty concessions (section (1)(iii)(d) above), other general incentives for 
all investors include: no personal income tax;  20% tax on profits while losses may be transferred 
indefinitely;  medium- or long-term loans from the Saudi Industrial Development Fund (SIDF) of up 
to 50% of the project cost with competitive commerc ial  interest rates for new industrial enterprises 
and for replacement/modernization and exte nsion of activities of existing enterprises73;  land at 
competitive rates;  supply of electricity, fuel, wate r, and natural gas at competitive industrial prices 
(Chapter IV(2)(iii),(iv),(v), and (vi));  the Hu man Resources Development Fund to support activities 
related to qualifying, training, and recruitment of Saudi workforce;  access to regional and 
international financial programmes (i.e. Arab Fu nd for Economic and Social Development, Arab 
Monetary Fund, Arab Trade Financing Programme, Inter-Arab Investment Gu arantee Corporation, 
and Islamic Development Bank);  and large resear ch and development endowments at King Abdullah 
University for Science and Technology and King Abdul Aziz City.74 
83. Saudi Arabia also grants tax concessions to projects in six less-developed regions75:  50% 
deduction from annual training expenses of Saudis, and 50% deduction from the annual salaries paid 
to Saudis, provided the investment capital is not le ss than SAR 1 million and not less than five Saudis 
are employed in technical or administrative positions under contracts of not less than one year.  In 
                                                      
71 ICIEC online information.  View ed at:  http://www.iciec.com. 
72 During its accession negotiations, Saudi Arabia stat ed that, if free zones or special economic zones 
were established, these would be administered in compliance with WTO provisions, and that goods produced in 
these zones under tax and tariff provisions that exempt imports and imported inputs from tariff and certain taxes and charges would be subject to normal customs formalities when entering the rest of Saudi Arabia, including 
the application of tariffs and any taxes and charges (WTO document WT/ACC/SAU/61, 1 November 2005). 
73 Loans are not contingent upon export performance, nor are they contingent upon the use of domestic 
over imported goods.  Under the SIDF Law, the Fund should carry out a full evaluation of the economic benefits 
of the enterprise requiring finance, taking into consideration the soundness of its management. 
74 Council of Ministers Decision No. 359, 26/11/1429H (24 November 2008). 
75 The six regions are:  Ha'il, Jazan, Najran, Al-Baha, Al-Jouf, and th e Northern Territory. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 43 
 
 
addition, a one-time capital tax credit is granted to industrial projects that fulfil certain conditions, 
including that foreign capital shar e does not exceed 15% of the total.76 
84. The new Saudi Authority for Industrial Cities and Technology Zones (SAITZ) will administer 
a system granting developed industrial land, allocated  on a market basis.  Rents will be set to cover 
maintenance and development costs (Chapter IV(4)(i)).  
(ii) Competition policy and price controls 
85. The Competition Law and its Implementing Re gulations constitute the main legal basis 
covering competition in both goods and services77;  their main objective is to create an efficient 
competitive environment in Saudi Arabia.  Competit ion legislation applies to all establishments in 
Saudi Arabia78, with the exception of public and wholly state-owned corporations.79  It addresses 
agreements between Saudi and foreign companies and between foreign companies, even when the 
agreements are concluded outside Saudi Arabia.  In addition, Islamic law prohibits a number of 
anti-competitive practices under the general rule requiri ng fair dealing in all commercial exchanges. 
86. Saudi Arabia's competition legislation prohibits:  (i) all practices, agreements, and contracts 
(whether written or verbal, express or implied) be tween competing establishments or likely competing 
establishments where the intention or the result is to restrict commerce or limit competition between 
establishments (Prohibited Contracts)80;  (ii) any establishment or group of establishments able to 
influence the market price of a product or serv ice through control of a certain proportion of the 
aggregate demand, from engaging in practices that limit competition between establishments 
(Prohibited Practices)81;  and (iii) covers mergers and acquisitions that distort the competitive 
structure of the market. 
87. The Competition Law established an indepe ndent Competition Council chaired by the 
Minister of Commerce and Industry (Article 8).  The Council is responsible for implementing and 
enforcing the law.82  It is in charge, inter alia , of:  approving or rejecting applications for the 
acquisition, merger, or consolidation of the manage ment of establishments;  ordering investigations 
and prosecutions regarding violations of the Comp etition Law;  and approving criminal prosecutions 
of parties accused of violating the Competition Law. 
88. The Competition Council established a Pena lties Committee to determine the financial 
penalty for violations.  The Committee's decisions ma y be appealed before the Board of Grievances.  
Under Article 12 of the Competition Law, the financial penalties may not exceed SAR 5 million,  
although the fine may be raised to a maximum of SAR 10 million if the violator has previously been 
convicted under the law.83 
                                                      
76 Ministerial Decision No. 2106, 25/7/1430H (18 July 2009). 
77 Royal Decree No. M/25, 4/5/1425H (22 June 2004) which entered into force on 31 December 2004;  
and Regulation issued according to Competition Council Resolution No. 13, 9/9/1426H (9 October 2005). 
78 Plants, establishments, companies, and associations  carrying out commercial, agricultural, industrial 
or service works or buying and selling goods or services in Saudi Arabia. 
79 Article 3 of the Competition Law. 
80 Unless a prohibited contract leads to an improvem ent in the performance of the establishments and 
benefits consumers to an extent greater than the ef fects of the prohibited contract upon free competition. 
81 Unless a prohibited practice leads to an improvement in the perform ance of the establishments and 
benefits consumers to an extent greater than the ef fects of the prohibited contract upon free competition. 
82 Royal Order No. A/292, 6/9/1426H (9 October 2005). 
83 In addition to the financial penalties that may be imposed by the Penalties Committee, the 
Competition Council may order any party that has violated the Competition Law to:  (a) remedy the violation of WT/TPR/S/256/Rev.1 Trade Policy Review 
Page 44 
  
89. Prices for goods and services in Saudi Arabia are freely determined by market forces with the 
exception of the products and services subject to pr ice regulation (Table III.9).  According to the 
authorities, price regulation on these goods and ser vices seeks to maintain price stability, secure the 
needs and welfare of consumers and preserve important social interests.84  Price regulations are 
applied on a non-discriminatory basis, regardless of whether a product or service is supplied by the 
Government or by the private sector and re gardless of the nationality of the supplier. 
Table III.9 
Price regulation, 2011 
I. Goods subject to price regulation   
Item HS Code Current regulated price 
Wheat flour 1101 0010 SAR 22 per 45 kga 
Fuel oil 2710 1140 6-12 halalas/litre 
Gasoline 2710 1121 90 halalas/litre 
Diesel 2710 1130-3 37 halalas/litre 
Kerosene 2710 1129 43.5 halalas/litres 
Liquefied petroleum gas (LPG)  
(cooking gas) 2711 10 72 halalas/litre 
Natural gas liquids 
Propane Butane 
Natural gasoline  
2711 1200 2711 1300 
2710 1114 Pursuant to Council of Ministers Resolution No. 260 
Asphalt 2714 SAR 300/tonne 
Natural gas (ethane and methane) 2711 11 281 halalas/MMBTU 
Crude oil (used as fuel) 2709 10 halalas/litre 
Pharmaceuticals Chapter 30 10%, 15%, or 20% profit margin, as set out below 
depending on the export price (c.i.f.) to Saudi Arabia 
II. Goods subject to profit regulation   
Item HS Code Current profit controls 
Pharmaceuticalsb Chapter 30 Export to SA (c.i.f.)c Wholesale 
margin Retail 
margin 
  Less than SAR 50 15% 20% 
  SAR 50-200 10% 15% 
  More than SAR 200 10% 10% 
III. Price regulation in services   
Services Current regulated price  
Energy transportation services, including pipeline 
transportation services Tariffs established based on cost of se rvices provided and administered in a 
non-discriminatory manner.  Current single pipeline tariff:  SAR 539 per 
1,000 barrels 
Port-general cargo SAR 35 per tonne on part thereof 
Port-vehicles and equipment SAR 35 per tonne or part thereof 
Table III.9 (cont'd) 
                                                                                                                                                                     
the law within a set period of time;  and/or (b) dispose of  some of its assets, shares, or property rights;  and/or 
(c) pay a daily fine of not less than SAR 1,000 and not more than SAR 10,000 until the violation is remedied. 
84 WTO document WT/ACC/SAU/61, 1 November 2005, paragraphs 26 and 37. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 45 
 
 
Port-bagged cargo and foodstuff SA R 20 per tonne or part thereof 
Port-bagged cement SAR 10 per tonne or part thereof 
Port-bulk cargo (including bulk handled at the cement silos, 
grains, oils or similar;  excl uding crude oil, gas and liquefied 
petroleum products) SAR 6 per tonne or part thereof 
Port-exported bulk cement and clinker SAR 3 per tonne or part thereof 
Port-container 20 feet long or less SAR 270 per unit 
Port-container over 20 feet long SAR 415 per unit 
Port-sheep/goat SAR 2 per head 
Port-other livestock SAR 5 per head 
(a) Electricity consumption for household purposes:  
1-2,000 kilowatt per hour/monthly basis 5 halalas per kilowatt 
2,001-4,000 kilowatt per hour/monthly basis 10 halalas per kilowatt 
4,001-5,000 kilowatt per hour/monthly basis 13 halalas per kilowatt 
5,001-6,000 kilowatt per hour/monthly basis 18 halalas per kilowatt 
6,001-7,000 kilowatt per hour/monthly basis 23 halalas per kilowatt 
7,001-8,000 kilowatt per hour/ monthl y basis 28 halalas per kilowatt 
8,001-9,000 kilowatt per hour/monthly basis 32 halalas per kilowatt 
9,001-10,000 kilowatt per hour/monthly basis 36 halalas per kilowatt 
10,001 and more kilowatt per hour/monthl y basis 36 halalas per kilowatt 
(b) Electricity consumption for commercial and industrial 
 purposes:  
1-4,000 kilowatt per hour on monthly basis 12 halalas per kilowatt 
4,001-8,000 kilowatt per hour on monthl y basis 20 halalas per kilowatt 
8,001 and more kilowatt per hour on mont hly basis 26 halalas per kilowatt 
Water Consumption and sewer services for household and 
commercial purposes: 
1-50 kilowatt per hour on a 3-monthly basis 10 halalas per cubic metre 
 
51-100 kilowatt per hour on a 3-monthly basis 15 halalas per cubic metre 
101-200 kilowatt per hour on a 3-mont hly basis SAR 2 per cubic metre 
 
a 1 SAR = 100 halalas. b Royal Decree No. M/31, 1/6/1425H (18 July 2004). 
c The export price is established at the time of registration. 
Source : Information provided by the Saudi authorities. 
90. Pharmaceutical products are subject to price and profit regulation under the Pharmacy Law85, 
which establishes rules for registration of pharmaceutical products and requires that drugs be priced 
before their sale in retail pharmacies.  Pharmace utical wholesalers and retailers are allowed a 10%, 
15% or 20% profit margin, as set out in Annex A, depending on the export price (c.i.f.) to 
Saudi Arabia.  Once pharmaceutical products are regist ered, to ensure safety and quality, they may be 
imported without restrictions in the form of import licences or quotas.  Locally manufactured 
pharmaceutical products are subject to the same registration processes and no longer receive an 
additional 10% margin on pricing (since th e accession of Saudi Arabia to the WTO). 
91. According to the authorities, price and profit regulations, including any modifications or 
additions, are published in the Official Gazette  (Umm al-Qura ) as well as in other official publications 
and websites that are accessible to the public86, two months in advance of their implementation. 
                                                      
85 Royal Decree No. M/18, 18/3/1398H (25 February 1978). 
86 See, for example, www.sfda.gov.sa. WT/TPR/S/256/Rev.1 Trade Policy Review 
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(iii) State trading, state-owned enterprises, and privatization 
92. The public sector is one of the largest employers in Saudi Arabia.  The most important state-
owned enterprises (SOEs) in operation are listed in  Table III.10.  Saudi Arabia is implementing a 
privatization programme aimed at:  diversifyi ng the economy and expanding the production base;  
boosting the role of the private sector;  promoting competition and enhancing the efficient use of 
resources;  reducing public liabilities;  increasing the number of jobs for Saudis;  encouraging foreign investment;  and attracting new technologies. 
Table III.10 
Selected state-owned enterprises, 2011 
SOE Activity State ownership 
(%) Privatization/schedule 
Saudi Arabian Oil Company Petroleum 100 No 
Saudi Arabian Basic Industries 
Corporation Petrochemicals and 
manufacturing 70.0 Yes/no 
Saudi Telecom Company Telecommunications 70.0 Yes/no 
Saudi Electricity Company Electricity 74.0 Yes/no 
National Commercial Ba nk Banking 69.3 Yes/no 
Saudi Real Estate Company Real estate 64.6 No/no 
Saudi Arabian Mining Company Mining 50 Yes/privatized in 2008 
Saudi Arabian Airlines Air transport 100 Yes/no 
Saline Water Conversion Corpor ation Desalination 100 Yes/no 
Saudi Railways Organization Rail transport 100 Yes/no 
Tawuniya Insurance 50 Yes/no 
Grain Silos and Flour Mills Organization Agriculture 100 Yes/no 
Agricultural Development Fund Speciali zed financial institution 100 Yes/no 
Saudi Industrial Development Fund Speci alized financial institution 100 No 
Public Investment Fund Speciali zed financial institution 100 No 
Real Estate Development Fund Specia lized financial institution 100 No 
Ministry of Finance Lending Programme Sp ecialized financial institution 100 No 
Saudi Arabian Fertilizer Company Agriculture 43 Yes/no 
Saudi Post Postal services 100 Yes/no 
National Water Company Water  100  Yes/privatized in 2009 
Saline Water Conversion Corporation Water 100 Yes/no 
 
Source:  Information provided by the Saudi authorities.  
93. The legal basis for the privatization programme  is Council of Ministers Resolution No. 60 
dated 1/4/1418H (5 August 1997), while the S upreme Economic Council issued the privatization 
strategy under Decision No. 1/23 dated 23/3/1423H (4 June 2002).87  The Supreme Economic Council 
(through its Privatization Committee) is responsible  for supervising the privatization programme and 
monitoring its implementation in coordinati on with the relevant government agencies.88 
94. The Council of Ministers has approved the priva tization of:  telecommunications;  water and 
sewage;  desalination;  air transport services,  including airport services;  roads, including 
                                                      
87 Privatization, according to the St rategy is defined as the proce ss of transferring ownership or 
management of SOEs, projects, and services to the private sector, relying on market mechanisms and 
competition, through a number of methods, including contracts for managing, operating, leasing, financing or selling all or part of the Government 's assets to the private sector. 
88 If a decision to privatize the activity in question is  issued, the relevant government agency prepares 
an implementation programme, based on the required studies.  After approval by the Supreme Economic Council, the privatization pr ocedures are implemented. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
 Page 47 
 
 
management, operation, maintenance,  and construction;  seaport services;   postal services;  grain silos 
and flour mills;  services for industrial cities; gove rnment shares in corporations, including Saudi 
Electricity Company (SEC), Saudi Arabia Basic Industries Corporation (SABIC), Saudi Arabia 
Mining Company (Ma'aden), Saudi Telecom Company (STC), and government sh ares in domestic oil 
refineries;  government shares in joint-investment  companies with Arab and Islamic countries;  
government-owned hotels;  sports clubs; municipal services, including slaughterhouses and waste management; educational services, including school construction and transpor tation, and recruitment 
of Saudis into the private sector;  social services;   and agricultural services, such as quarantine and 
operation of veterinary laboratories/clinics.  
95. SOEs partially or fully privatized include (private ownership share in parentheses): 
Saudi Arabian Fertilizer Company (57%);  SABIC ( 30%);  STC (30%);  SEC (19%);  and Ma'aden 
(50%).  In addition, the Government has adopted a new strategy for private-sector participation in 
water and power projects under an Independent Water and Power Plants (IWPRs) structure, in which 
the private sector, including foreign investors, c onstructs, operates, and ow ns 60% of the new power 
generation plants and water d esalination previously entrusted to public-sector entities. 
96. The privatization of Saudi Airlines began in 2006 by dividing it into strategic business units; 
the catering unit was the first to be privatized.  In August 2007, the Council of Ministers approved the conversion of strategic units into companies.  Gr ound services, technical services, air cargo, and the 
Prince Sultan Aviation Academy, as well as the catering unit, are to become subsidiaries of a holding 
company.
89 
97. The privatization programme in Saudi Arabia involves not only the sale of the companies but 
also their ex ante  restructuring.  Under Council of Ministers Resolution No. 60, the privatization 
methods envisaged are:  management contracts90;  leasing contracts91;  financing contracts92;  and sale 
contracts.93  Other privatization methods used include de bt swaps, whereby the debts are valuated and 
converted into shares in the name of the credito rs;  and offering the enterprise for sale to its 
employees or earmarking a portion of its shares for sale to its employees at market prices.94  
According to the authorities, Saudi Arabia has ne ver used golden shares in any privatization.  
                                                      
89 Economist Intelligence Unit (2010). 
90 Under management contracts, responsibility for managing, operating, and developing an entity is 
transferred to a contractor or investor from the private s ector for an agreed period of time and amount of money.  
This method is generally used for cases that require high levels of specialized experience in management, 
operations, and marketing, or when the Government has a large investment in the project's assets and prefers to 
keep the investment rather than sell it. 
91 Leasing contracts are agreements  between the Government and the private sector whereby the latter 
provides the government entity with administrative and technical expertise for a specific period, in exchange for 
an agreed financial remuneration.  The private-sector investor leases and uses the assets or facilities owned by the Government, and the contract determines the amount to be paid to the Government as well as the 
responsibilities of each party with respect to the other. 
92 Under financing contracts, the investor assures re sponsibility for managing the capital, operating, and 
investment expenditures.  There are several kinds of financing contracts, including lease-build-operate (LBO), 
build-transfer-operate (BT, BTO), build (own)-operate-t ransfer (BOT, BOOT), buy-build-operate (BBO), and 
buy-own-operate (BOO). 
93 Direct sale to the private sector through public subscription (either the entire entity or some of its 
shares are sold to the private sector by offering them for public subscription), or sale to a principal investor (the 
Government sells the entity to a principal investor who can provide the required financing and has sufficient 
capacity in management and implementation to develop production and marketing). 
94 These methods are generally used to privatize enterprises with low profitability or productivity, in 
order to encourage employees to improve their performance. WT/TPR/S/256/Rev.1 Trade Policy Review 
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98. Foreign investors are allowed to participate in privatizations as "strateg ic partners" and take 
equity participation through a Saudi limited liability company, but they cannot directly purchase 
shares of SOEs subject to privatization.  Some of  the basic principles during the privatization process 
include the need for:  disclosure and transpar ency, expeditious implementation, changing the 
management pattern, and creating a regulatory frame work.  The criteria for determining priorities in 
selecting enterprises to be privatized are:  the pos itive effect on the national economy;  the readiness 
of the enterprise for privatization;  the social bene fits of privatizing the en terprise;  the inadequacies 
of the services provided by SOEs;  and the absorptive capacity of the capital market.95 
99. Saudi Arabia notified the WTO that it did not maintain any state-trading enterprises within 
the meaning of Article XVII of the GATT 1994, read  with Paragraph 1 of the Understanding on the 
Interpretation of Article XVII.96   
(iv) Intellectual property rights 
(a) Overview 
100. Intellectual property rights legislation in Saudi Arabia comprises mainly the:  Copyright 
Law97 and Implementing Regulations98;  Law on Patents, Layout-Designs of Integrated Circuits, 
Plant Varieties and Industrial De signs99 and Implementing Regulations100;  Trademarks Law101 and 
Implementing Regulations102;  Regulations for the Protection of Confidential Commercial 
Information103;  and Regulations for Border Procedures.104   In 2009, in recognition of Saudi Arabia's 
progress on IPR protection and enforcement, the United States removed Saudi Arabia from its special 301 Watch List.
105  During its WTO accession negotiations, Saudi Arabia committed itself to full 
implementation of the TRIPS Agreement without a transitional period.  The Saudi intellectual 
property legislation was reviewed by th e WTO TRIPS Council in February 2007.106  
101. The main institutions responsible for intellectual property matters are:  the Ministry of 
Commerce and Industry (MCI) for trade-marks (T rademarks Office) and for the protection of 
confidential commercial information;  the Ki ng Abdulaziz City for Science and Technology 
(Industrial Property Directorate) for patents, industria l designs integrated circuits, and plant varieties; 
                                                      
95 WTO document WT/ACC/SAU/61, 1 November 2005. 
96 WTO document G/STR/N/12/SAU, 11 March 2009. 
97 Royal Decree No. M/41, 2/7/1424H (30 August 2003), published in Official Gazette  No. 3959, 
19 September 2003. 
98 Ministerial Decision No. 1688/1, 10/4/1425H (29 May 2004), published in Official Gazette , 
4 June 2004;  entry into force 2 August 2004. 
99 Royal Decree No. M/27, 17 July 2004, published in Official Gazette  No. 4004, 6 August 2004, and 
entry into force 6 September 2004. 
100 Ministerial Decision No. 118828/10, 14/11/1425H (26 December 2004) and entry into force on the 
same date. 
101 Royal Decree No. M/21, 7 August 2002. 
102 Ministerial Order No. 1723, 4 October 2002. 
103 Council of Ministers Decision No. 50, 25/2/1426H (4 April 2005). 
104 Ministerial Decision No. 1277, 15/5/1425H (3 July 2004). 
105 The United States concluded that in 2009 Saudi Arabia made further progress on improving its 
overall IPR enforcement climate, including with respect to:  deterrent level penalties for violations of Saudi 
copyright law;  action to reduce the use of unauthorized copies of software within the Saudi Government;  and 
adequate protection for patented pharmaceutical products (USTR Press Release, 24 February 2010). 
106 For the introductory statement by Saudi Arabia, as well as the questions posed and answers given 
during the review, see WTO document IP/Q-Q4/SAU/1, 16 March 2007. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
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the Ministry of Culture and Information for copyri ghts;  Customs Department for border measures; 
and the Board of Grievances for judicial rulings.107 
102. Saudi Arabia has joined the following IPR conventions and treaties (date of 
membership/entry into force for Saudi Arabia in  parentheses):  Convention Establishing the World 
Intellectual Property Organization (WIPO) (22 Ma y 1982);  Berne Convention for the Protection of 
Literary and Artistic Works (11 March 2004);  Pa ris Convention for the Protection of Industrial 
Property (11 March 2004);  Universal Copyrigh t Convention (13 April 1994);  Arab Regional 
Copyright and Related Rights Agreement (22 D ecember 1985);  and GCC amended Patent Law 
(29 August 2001).  Saudi Arabia is in the process  of joining the Patent Cooperation Treaty and the 
Patent Law Treaty.108 
103. Parallel imports of copyrighted materials are prohibited in Saudi Arabia.109 
(b) Patents 104. Under the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and 
Industrial Designs, patents are granted for 20 year s (not renewable) from the date of filing the 
application with the Industrial Property Directorate.
110  Patentability includes inventions in all fields 
of technology and innovative ideas that could be  manufactured and are not contradictory to the 
provisions of Islamic Law or the rules of conduct.111  The following are not regarded as inventions 
(Article 45):  discoveries, scientif ic theories, and mathematical met hods;  schemes, rules, and methods 
of conducting commercial activities, exercising pur e mental activities or playing a game; plants, 
animals and processes – which are mostly biological – used for the production of plants or animals, 
with the exception of micro-organisms, non-biol ogical and microbiology processes;  methods of 
surgical or therapeutic treatment of human or animal bodies and methods of diagnosis applied to 
human or animal bodies, with the exception of  products used in any of these methods. 
105. A compulsory licence for an unworked patented invention may be granted by the Industrial 
Property Directorate provided the applicant proves ability to use the invention industrially, and 
against fair compensation to be paid to the patent holder.112  The licence will not be exclusive and will 
essentially be granted to meet the demand of the lo cal market.  In addition, the GCC Unified Law on 
Patents (Article 19) requires that at least three years have elapsed after the grant of the patent;  that the 
applicant proves that efforts were made to obtai n a licence from the patent owner;  and adequate 
compensation under fair terms.  Furthermore, c onsensus of all six GCC countries is necessary for 
granting a compulsory licence.  However, compulso ry licences have never been granted by the GCC 
Patent Office. 
                                                      
107 The Board of Grievances is Saudi Arabia's highest administrative tribunal, including in intellectual 
property rights enforcements. 
108 On the basis of Council of Ministers Reso lution No. 403, 27/12/14 30H (15 December 2009). 
109 WTO document WT/ACC/SAU/61, 1 November 2005. 
110 Patents are subject to various fees, including an application fee (SAR 800) and annual fees (ranging 
from SAR 500 in the first year to SAR 10,000 in the 20th year).  These fees are for establishments;  fees for 
individuals are half these amounts. 
111 Regarding patentability, the GCC Unified Law on Pa tents of 2002 (Article 2) requires that the 
invention must not be contrary to the Islamic law (Sha riaa) or public order or to morality observed in the GCC 
states.  Patent protection is given in all six GCC member  states through registration at the GCC Patent Office. 
112 A compulsory licence costs SAR 8,000 for an es tablishment (SAR 4,000 for an individual). WT/TPR/S/256/Rev.1 Trade Policy Review 
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(c) Copyright and related rights 
106. Under the Copyright Law, the term of copyri ght protection is the author's lifetime plus 
50 years.  It covers works of art expressed in writing, sound, drawing,  photography or motion 
pictures, and computer software, as well as all inte llectual works whether literary, scientific or artistic 
of any type, as far as their distribution is allowed in Saudi Arabia.113  The related rights covered 
concern performers, producers of sound recordings, a nd broadcasting organizatio ns.  Saudi Arabia has 
no copyright registration procedures.  According to  the Berne Convention, registration in the home 
country extends to all member states. 
107. The Saudi copyright legislation provides, inter alia , protection for news reports, excluding 
only news facts;  a reproduction right as require d by Berne Article 9 (which includes digital 
reproduction);  protection for pre-existing foreign wo rks if they have not yet fallen into the public 
domain in the country of origin through the expiry of term of protection;  a point of attachment for foreign sound recordings;  a definition of "wor ks" that includes sound recordings;  and parallel 
commercial export and import protection, as exportati on and importation of copies not authorized for 
distribution in Saudi Arabia is deemed to be in fringement.  Printed materials or computer programs 
may be distributed in Saudi Arabia only after receiv ing an approval from the Ministry of Culture and 
Information. 
(d) Trade marks 108. Under the Trademarks Law, protection is for ten years, renewable indefinitely for periods of 
ten years.  Registration is sufficient to notify po tential infringers of the owner's exclusive right.
114  
Protection of well-known marks is assured in Saudi Ar abia even if not registered.  Registration may 
be cancelled for trade marks not used for five  consecutive years, unless the owner submits an 
acceptable justification.  The owner of a registered trade mark has the sole right to produce, import or 
distribute the trade-marked goods or service and the right to prevent any other person from using the 
trade mark without permission.  A separate applicati on should be filed with resp ect to each trade mark 
for goods or services.  Trade marks are not allowe d on alcoholic goods, retail, and wholesale services, 
and geographical names cannot be registered as tr ade marks if their use causes a misunderstanding as 
to the source of products or services, or their or igin.  The Trademarks Law envisages the right to 
appeal before the Board of Grievances against a d ecision by the MCI denying registration by a trade 
mark.115 
(e) Layout-designs (topographies) of integrated circuits, industrial designs, and plant varieties 
109. Under the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and 
Industrial Designs, protection of inte grated circuits and industrial desi gns is granted for ten years from 
the date of filing the application with the Industrial Property Directorate.116  The design must be new, 
                                                      
113 The copyright legislation gives authors and their su ccessors in title the right to authorize or prohibit 
the commercial rental to th e public of originals or copies of their copyright works within the limits allowed 
under Article 11 of the TRIPS Agreement.  
114 Trade marks, including service marks, are subject to the following fees:  application (SAR 1,000); 
registration (SAR 3,000);  renewal of registration (SAR 3,000);  changes to the registration (SAR 1,000);  and delayed renewal (SAR 1,000). 
115 The Trademarks Law also incorporates the right of third parties to file a complaint before the Board 
of Grievances against the registration or deletion of a trade mark. 
116 Protection for integrated circuits is subject to fees, including an applic ation fee (SAR 1,000) and 
annual fees (ranging from SAR 1,000 in the first year to  SAR 5,500 in the tenth year).  The corresponding fees 
for industrial designs are: application (SAR 300) and annual fees ranging from SAR 300 in the first year to SAR 1,500 in the tenth year.  These fees are for establishments;  individuals pay half of these amounts. The Kingdom of Saudi Arab ia WT/TPR/S/256/Rev.1 
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have specific features, and not be contrary to Islami c law.  Saudi Arabia's legislation provides for the 
right to issue a compulsory licence for integrated circ uits, industrial designs, and plant varieties.  Plant 
varieties are entitled to protection if they are new, distinct, uniform, stable and subject to 
denomination.  Protection is for 20 years (25 for trees)  from the date of filing the application with the 
Patent Office.117 
(f) Geographical indications 110. The Trademarks Law includes provisions on th e protection of geographical indications.  
There is no protection for geographic indications of  wines and spirits because alcoholic beverages are 
prohibited from being produced, sold, consumed, im ported or exported in Saudi Arabia pursuant to 
the Islamic law. 
(g) Enforcement 111. All intellectual property rights laws in Saudi Arabia contain enforcement provisions.  In 
addition, the Law of the Board of Grievances (the ad ministrative judiciary of Saudi Arabia), the Rules 
and Procedures of the Board of Grievances, and the Border Measures Regulations related to IPR 
contain provisions regarding enforcement.  The laws also provide for further appeal to the Board of 
Grievances to contest the decisions of the administrative bodies.
118  All administrative and judicial 
procedures, including the Board of Grievances procedures, are free of charge.  
112. The Industrial Property Directorate is in charge of enforcing the law as regards patents, layout 
designs of integrated circuits, plant varieties,  and industrial designs.  At the request of the 
rights-holder, the Committee for Examining Patents on Inventions Lawsuits grants an injunction to 
prevent the infringement, in addition to the necess ary damages, and may impose a fine not exceeding 
SAR 100,000 (which may be doubled in case of repetition).119 
113. Enforcement of copyrights is the responsibility of  the Ministry of Culture and Information, 
which has an office at each customs entry point solely for the purpose of enforcing the Copyrights 
Law.120  Article 22 sets out a three-step procedure:  pr ovisional seizure;  confiscation;  and destruction 
and imposition of penalties if the goods are found to  violate the Copyrights Law by the Violation 
Review Committee of the Ministry.  Copyright violators are subject to:  imprisonment for up to 
six months (which may be doubled for repeat offe nces), a maximum fine of SAR 250,000 (which may 
be doubled for repeat offences), closing the establishm ent, and confiscation of all copies of the work.  
According to the authorities, most cases of co pyright infringement relate to DVDs and CDs. 
114. On trade marks, the MCI addresses any possible violations and if deemed appropriate, 
conducts an immediate investigation.  The Bureau of Investigations and Public Prosecution initiates a 
penal action before the Board of Grievances, while the Customs Department applies border 
                                                      
117 Fees for plant varieties, including an application fee (SAR 1,000) and annual fees (ranging from 
SAR 1,000 in the first year to SAR 5,500 in the 20th year).  
118 Administrative and judicial decisions are required to be in writing and well-reasoned.  According to 
the authorities, fines and imprisonment are imposed base d on the circumstances of each case, the gravity of the 
offence in each case, and ensuring a deterrent effect.  A ri ghts-holder who is not satisfied with the level of fine 
or imprisonment, has the right to file an appeal to the Board of Grievances to increase the fine and/or prison 
term. 
119 If the Committee believes that the infringement warrants imprisonment, the infringer is referred, 
from the start, to the Board of Grievances;  the Co mmittee may take measures necessary to prevent damage 
resulting from the infringement. 
120 At each point of entry,  officials from the Customs Departme nt bring samples of any shipment 
subject to possible copyright infringement to the Ministry office.  WT/TPR/S/256/Rev.1 Trade Policy Review 
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procedures against imports of count erfeit goods.  Under the Trademarks  Law, criminal actions include 
imprisonment for a term not exceeding one year a nd/or a maximum fine of SAR 1 million (penalties 
may be doubled in the case of recurrence). 
115. Article 22.7 of the Copyrights Law and Article 49 of the Trademarks Law authorize judicial 
or administrative bodies to issue a provisional seizu re decision.  Moreover, customs authorities, in 
coordination with the MCI and the Ministry of Culture and Information, may seize consignments 
infringing IPRs, according to the re levant laws in Saudi Arabia.  In  connection with the enforcement 
of border measures, Saudi Customs established an inte rnal IPR Unit in March 2008, which is to create 
a database for customs' use to assist with en forcement against forged and counterfeit goods. 121 
(v) Other measures 
116. Saudi Arabia has an oil production quota, as a member of the Organization of Petroleum 
Exporting Countries (OPEC) (Chapters I(2)(i) and IV(2)(iii)(a)). 
                                                      
121 Unit for Combating Commercial Fraud and Counterfeiting.