Non-Automatic products
- Document symbol
- G/LIC/N/3/SAU/2
- Original language
- English
- Published on
- 29/09/2011
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The Kingdom of Saudi Arabia maintains non-automatic licensing system which is administered in accordance with the provisions of the new Law on Import Licensing Procedures which was issued by Council of Ministers No. 88 of June 2002.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
List of items subject to non-automatic licensing is attached as Appendix "A".
[Appendix "A" was not attached to G/LIC/N/3/SAU/1]
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
No, the licensing is not intended to restrict the quantity or value of imports. The purpose of licensing is to ensure that goods that do not meet the requirements of different laws, regulations or decisions are not imported. Alternative methods have not been considered.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Is the licensing statutorily required?
Licensing is maintained under Decision No. 88 of the Council of Ministers dated 6.4.1423H (June 2002).
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
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.
Is it possible for the government to abolish the system without legislative approval?
The system can only be abolished by a decision of the Council of Ministers.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Applications for non-automatic licenses may be submitted within 21 days prior to the closing date of applications.
Q7.b. Can a licence be granted immediately on request?
The maximum period for deciding on license applications is 30 days. However, in practice licenses are granted in a shorter period.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
No limitations as to the period of the year during which applications or importation may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, by a single administrative body. However, in some cases the body may coordinate with other bodies, but the applicant does not have to approach more than one administrative body.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Applications are not refused other than for reasons of failure to meet the ordinary criteria.
Are the reasons for any refusal given to applicants?
Reasons for refusal of a license are given upon request of the applicant.
Have applicants a right of appeal in the event of refusal to issue a licence?
Applicants have a right of appeal in the event of refusal of a license.
If so, to what bodies and under what procedures?
The initial appeal can be made to the Head of the administrative body within 15 days of the decision. An appeal against the decision of the Head of the administrative body lies to the Board of Grievances within 30 days of the decision.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Eligibility of parties under restrictive and under non-restrictive licensing systems is the same.
The eligible categories are as follows:
(i) Saudi, foreign or joint venture companies registered under applicable Saudi laws.
(ii) Natural persons listed in the Commercial Register.
(iii) Saudi Nationals and non-Saudis holding residence permits but not registered in the Commercial Register provided the imported goods are for their personal use.
Imports by parties in (i) and (ii) above shall be limited to goods related to the scope of their business as inscribed in the Commercial Register.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
The applicant has to provide description of the item/s, their value and weight, and copies of the invoice and the bill of lading.
Q11. What documents are required upon actual importation?
Documents required are: the import license, original invoice and certificate of origin. The last two are requirements for customs clearance and not requirements of the licensing system.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There are no licensing fees or administrative charges.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There are no deposit or advance payment requirements associated with the issue of a license.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The period of validity of a license is one year from the date of issue. Extension may be granted if it is in the public interest.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for non-utilization of a license or portion of a license.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No other conditions are attached.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No other administrative procedures.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
There are no foreign exchange restrictions or controls in Saudi Arabia.