 
RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/SAU/4/Rev.4 
29 March 2004 
 (04-1465) 
Working Party on the Accession  
of the Kingdom of Saudi Arabia  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
TO THE WORLD TRADE ORGANIZATION 
Revision  
 
  
 
  WT/ACC/SPEC/SAU/4/Rev.4 
 Page i 
 
 
 TABLE OF CONTENTS 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................9  
- Monetary and Fiscal Policies ................................................................................................... 9 
- Taxation and Zakat............................................................................................................. ....10  
- Foreign Exchange and Payments ..........................................................................................11  
- Competition Policy............................................................................................................. .....13  
- Pricing Policies ............................................................................................................... .........13  
- Privatization .................................................................................................................. ..........15  
- Legal Basis for Privatization.................................................................................................. 16 
- Status of Privatization ........................................................................................................ ....17  
- State-Owned En terprises........................................................................................................ 18 
- Investment Regime.............................................................................................................. ....21  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................27  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................34  
- Trading Rights ................................................................................................................. .......34  
A. IMPORT REGULATION......................................................................................................38  
- Import Regime .................................................................................................................. ......38  
- Customs Tariff ................................................................................................................. .......38  
- Tariff Rate Quotas and Tariff Exemptions ..........................................................................39  
- Other Duties a nd Charges......................................................................................................4 0 
- Fees and Charges Connected with Importation (for Services Rendered) .........................41  
- Import Licensing Systems ......................................................................................................4 2 
- Quantitative Import Restrictions, In cluding Prohibitions and Quotas .............................51  
- Customs Valuation.............................................................................................................. ....53  
- Rules of Origin ................................................................................................................ ........55  
- Other Customs Formalities....................................................................................................56  
- Other Border Measures.......................................................................................................... 56 
- Application of Internal Taxes to Imports .............................................................................57  
- Preshipment Inspection......................................................................................................... .57 
- Anti-Dumping, Countervailing duties, Safeguard regimes.................................................58  
B. EXPORT REGULATIONS ...................................................................................................59  
- Export rest rictions ............................................................................................................ ......59  
- Export duties .................................................................................................................. .........60  
- Export subsidies ............................................................................................................... .......60  WT/ACC/SPEC/SAU/4/Rev.4 
Page ii  
 
 IV.
 INTERNAL POLICIES AFFECT ING TRADE IN GOODS .............................................61  
- Industrial Policy, Including Subsidies...................................................................................61  
- Technical Barriers to Trade...................................................................................................6 2 
- Transparency ................................................................................................................... .......69  
- Implementation of TBT Agreement Obligations .................................................................69  
- Sanitary and phytosanitary measures...................................................................................70  
- Trade Related Investment Measures.....................................................................................78  
- State Trading.................................................................................................................. .........79  
- Free Zones ..................................................................................................................... ..........80  
- Trade in Transit ............................................................................................................... .......80  
- Agricultural Policy............................................................................................................ ......81  
- Trade in Ci vil Aircraft........................................................................................................ ....83  
V. TRADE RELATED INTELLECTUAL  PROPERTY REGIME.......................................83  
- General........................................................................................................................ .............83  
- Industrial Property Protection ..............................................................................................83  
- Agencies Responsible for Policy Formulation and Implementation ..................................84  
- Membership in International Intellectual Property Conventions ......................................84  
- Application of MFN and National Treatment to Foreign Nationals ..................................85  
- Fees and Taxes ................................................................................................................. .......85  
- Copyrights ..................................................................................................................... ..........85  
- Patents........................................................................................................................ ..............85  
- -Trade Marks, Including Service Marks ..............................................................................85  
- Substantive Standards of Protection, Including Procedures for the Acquisition 
and Maintenance of Intellectual Property Rights................................................................86  
- Copyright...................................................................................................................... ...........86  
- Patents........................................................................................................................ ..............87  
- Trademarks ..................................................................................................................... ........88  
- Geographical Indications, Including Appellations of Origin..............................................88  
- Industrial Designs ............................................................................................................. ......89  
- Layout Designs of Integrated Circuits ..................................................................................89  
- Plant Variety Protection....................................................................................................... ..89 
- Undisclosed In formation ........................................................................................................ 89 
- Enforcement .................................................................................................................... ........89  
- General Obligations............................................................................................................ ....90  
- Civil and Administrative Procedures....................................................................................91  
- Provisional Measures........................................................................................................... ...91 
- Special Requirements Related to Border Measures ............................................................91   WT/ACC/SPEC/SAU/4/Rev.4 
 Page iii 
 
 
 - Criminal Procedures............................................................................................................ ...92 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................92  
- Government Procurement......................................................................................................99  
- Transparency ................................................................................................................... .......99  
- Notifications.................................................................................................................. .........101  
- Trade Agreements............................................................................................................... ..101  
- CONCLUSIONS ...................................................................................................................1 03 
ANNEX A ........................................................................................................................ ...................105  
ANNEX B........................................................................................................................ ....................106  
ANNEX C ........................................................................................................................ ...................109  
ANNEX D ........................................................................................................................ ...................111  
ANNEX E........................................................................................................................ ....................112  
ANNEX F........................................................................................................................ ....................114  
ANNEX G ........................................................................................................................ ...................115  
ANNEX H ........................................................................................................................ ...................118  
ANNEX I........................................................................................................................ .....................121  
ANNEX J ........................................................................................................................ ....................123  
ANNEX K ........................................................................................................................ ...................125  
ANNEX L........................................................................................................................ ....................126  
ANNEX M ........................................................................................................................ ..................128  
ANNEX N ........................................................................................................................ ...................130  
 
  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 1 
 
 
 I. INTRODUCTION 
1. On 13 June 1993, the Government of the Kingdom of Saudi Arabia (hereinafter referred to as 
Saudi Arabia) requested accession to the General  Agreement on Tariffs and Trade (GATT 1947).  At 
its meeting on 21 July 1993, the GATT 1947 Council of Representatives established a Working Party 
to examine the application of the Government  of Saudi Arabia to accede to the General  Agreement 
under Article XXXIII, and to submit to the Counc il recommendations which may include a draft 
Protocol of Accession.  Membership of the Work ing Party was open to all contracting parties 
indicating the wish to serve on it.  In pursuance of  the decision of the General Council of the World 
Trade Organization (WTO) of 31 January 1995, the GATT 1947 Accession Working Party was transformed into a WTO Accession Working Party.  The terms of reference and the membership of 
the Working Party were reproduced in document WT/ACC/SAU/2/Rev.17. 
2. The Working Party met on 2-3 May and 6-8 November 1996; 29-30 May and 2 and 
4 December 1997; 17 and 19 November 1998; 22 Se ptember 1999; 5 April and 17 October 2000, 
under the Chairmanship of H.E. Ambassador Mr. J. Weekes (Canada); and on 23-24 October 2003; 25 February […] 2004, under the Chairmanship of H.E. Ambassador Mr. Munir Akram (Pakistan). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Saudi Arabia (L/7489)  and the questions submitted by members on the 
foreign trade regime of Saudi Arabia, together  with the replies thereto, (L/7645 and Add.1; 
WT/ACC/SAU/3; WT/ACC/SAU/6, Add.1-3 and Add.3/Corr.1; WT/ACC/SAU/8 and Corr.1; 
WT/ACC/SAU/10; WT/ACC/SAU/13, Add.1, Add.1/Corr.1 and Rev.1; WT/ACC/SAU/29, Add.1-4, and Corr.1 and 2; and, WT/ACC/SAU/35 and Corr.1) .  The Government of Saudi Arabia also 
provided the Working Party with information regarding the following: 
Economic Development Plans
 
- Sixth Development Plan, Decree No. 142 of 19.11.1413H (10 May 1993) 
- Seventh Development Plan, Decree No. 126 of 28.5.1421H (29 August 2000) WT/ACC/SPEC/SAU/4/Rev.4 
Page 2  
 
 Economic Policies
 
- Competition Policies  
 - draft law on Competition Policies - Pricing Policies
 
- Council of Ministers Resolution of November 1992 
- Council of Ministers Resolution No. 260 of 23.10.1422H (cancelling Council of 
Ministers Resolution of November 1992) 
- Council of Ministers Resolution No . 163 of 20.6.1424H (18 August 2003) 
- Privatization  
- Economic Reform Program of the Kingdom of Saudi Arabia, WT/ACC/SAU/54 
(4 April 2003) 
- Council of Ministers Resolution No. 60 of 1.4.1418H (1997) 
- Council of Ministers Resolution No. 257 of 11.11.1421H (5 February 2001) 
- Royal Approval issued in 1417 (1997) 
- Council of Ministers Resolution of 1419H (1999) 
- Council of Ministers Resolution 169 of 11.8.1419H (30 November 1998) 
- Investment Regime  
- New Foreign Investment Law, replacing the Foreign Capital Investment Law, 
promulgated by Royal Decree No. M/1 of 5.1.1412H (9 April 2000) 
- "Negative List" (issued by Supreme Economic Council Decision No. [...] under 
Article 3 of the Foreign Investment Law) 
- Implementing Regulations for Royal Decree No. M/1 of 9 April 2000 (issued 
24 June 2002) 
- First Foreign Investment Law, 1979 
- Capital Market Law, issued under Royal Decree No. M/30, of 2.6.1424H (13 July 
2003) 
- Council of Ministers Decision No. 50 of 21.4.1415H (27 September 1994) 
- Council of Ministers Bureau Letter 8/490 of 28.6.1414H (13 December 1993) 
- Guide to the Licensing of Foreign Investment in Saudi Arabia 
- Information on Foreign Investment by Sectors 
- Information on Recent Foreign Investments Granted Licenses 
Framework For Making and Enforcing Policies  
- Basic Law of Government, Royal Decree No. A/90 of 27.8.1412H (1 March 1992) 
- Consultative Council Law 
- Council of Ministers Law 
- Gulf Co-operation Council (GCC) Common Customs Law and its Rules of 
Interpretation 
- Commercial Register Law and its Implementing Regulations 
- Commercial Agencies Law and its Implementing Regulations 
- Companies Law and its Implementing Regulations 
- Law on Import Licensing Procedures and the Import Licensing Guide 
- Combat of Commercial Fraud Law and its Implementing Regulations 
- Negotiable Instruments Law and its Implementing Regulations  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 3 
 
 
 - Trade Names Law and its Implementing Regulations 
- Board of Grievances Law of 17.1.1402H (14 November 1981) 
- Council of Ministers' Resolution No. 165 of 24.6.1423H (1 September 2002) 
Policies Affecting Trade in Goods  
- Trading Rights  
- Law on Commercial Names issued pursuant to Royal Decree No. M/15 of 
12.8.1420H (20 November 1999) and the associated rules and regulations 
- Professional Companies Law 
- Customs Tariffs  
- Customs Law and Implementing Regulations 
- Customs Tariff 
- Import Licensing Systems  
- Council of Ministers Decision No. 84 (July 2000) 
- The Import Licensing Law issued vide Council of Ministers Decision No. 88 of 
6.4.1432H (July 2002) 
- Telecommunications Act, Article 39 
- Information on the Application of Import Licensing 
- Information on Preferential Trading Arrangements 
- Response to Questionnaire on Import Licensing Procedures 
- Quantitative Import Restrictions, Including Prohibitions and Quotas  
- Ministry of Commerce and Industry Decision No. 1308 of 27.5.1424H (27 July 2003) 
- Customs Valuation  
- Royal Decree No. 190 of 16.12.1409H (19 July 1989) 
- Royal Decree No. 425 of 5.3.1372H (22 November 1952) 
- Response to Questionnaire on Customs Valuation Procedures 
- Other Customs Formalities  
- Council of Ministers Order No. 5 of 3.1.1406H (10 September 1985) 
Internal Policies Affecting Trade in Goods  
- Industrial Policy, Including Subsidies  
- Saudi Industrial Development Fund Law 
- Technical Barriers to Trade  
- List of SASO standards that had been b ased upon CODEX standards, together with a 
complete list of the 1,323 Saudi standards including a cross-reference to the 
international standards adopted in their entirety as SASO standards, WT/ACC/SAU/34 WT/ACC/SPEC/SAU/4/Rev.4 
Page 4  
 
 - List of standards deemed to be equiva lent to Saudi standards, WT/ACC/SAU/15 
- SASO standards, adopted as GCC Standards and thereby incorporated as national 
standards in other GCC Countries, WT/ACC/SAU/29 (Annex III) 
- Procedures for the development of SASO  standards, WT/ACC/SAU/29 (Annex IV) 
- Comprehensive Guidelines and Procedures concerning the ICCP 
- Appeals procedures, included as an Appendix to the ICCP Guidelines 
- Saudi Conformity Assessment Program  
- SASO Comprehensive Directive of July 2000 (circulated to Working Party members 
in October 2000) 
- Regulated Product Categories Applicable Standards 
- Preshipment Inspection  
- Council of Ministers Decision No. 213 of 3.8.1424H (30 September 2003) cancelling 
the ICCP 
- Sanitary and Phytosanitary Measures  
- Shelf life of food products, WT/ACC/SAU/27 
- Council of Ministers Decision No . 109 of 34.4.1424H (30 June 2003) 
- Council of Ministers Decision No. 85 of 1.4.1421H (4 July 2000) 
- Agricultural Policy  
- Tables on domestic support and export s ubsidies, WT/ACC/SAU/19 and 28; and 
WT/ACC/SPEC/SAU/1/Rev.6 and Corr.1 
- Royal Decree No. 58 of 3.12.1382 founding the Saudi Arabian Agricultural Bank 
- Royal Decree No. 4/B/49434 of 8.12.1423H (10 February 2003) 
- Trade Related Intellectual Property Regime  
- The Law for the Protection of Copyrights (Old) 
- New Copyright Law Issued vide Council of Ministers' Decision of 9 June 2003 
- Trade Marks Law  
- Council of Ministers' Decision No. 140 of 5 August 2002 (New WTO-consistent 
Trade Marks Law) 
- Companies Law 
- Labour Law 
- Banks Control Law 
- Geographical Indications Law 
- Copyright Law 
- GCC Patent Law 
- Saudi Patent Law 
- Policies Affecting Trade in Services  
- Council of Ministers Resolution No. 190 of 16.11.1409 H (concerning Rules and 
Procedures to be Followed by the Board of Grievances and the Board of Grievances 
Law) 
- Law of Residency 
- Labour and Workers Regulations  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 5 
 
 
 - GCC Documents  
- Unified Economic  Agreement, signed 11 November 1981 under the Gulf Cooperation 
Council 
- Information on Non-Oil Exports to  Gulf Cooperation Council States 
- Rules for the Coordination of Industrial Establishments in the Gulf Cooperation 
Council States 
- Standard Rules for Giving Priority in Government Purchases to National Products 
and Products of National Origin of Gulf Cooperation Council States 
- GCC Common External Tariff 
- Domestic Development Measures and Documents  
- Law for the Protection and Encouragement of National Industries 
- Saudi Industrial Development Fund Law 
- Banking Control Law (Articles 1-4) 
- Information on Saudi Industrial Development Fund Loans 
- Information on Saudi Agriculture Bank Loans 
- Information on Agricultural Subsidies Disbursed through the Agriculture Bank 
- Information on Agricultural Domestic Support 
- Sector-Specific Measures  
- Ministerial Resolution by the Ministry of Communications concerning Applications 
for Licenses by Maritime Companies and Firms for Carrying on Maritime Carriage (Articles 1-7) 
- Ministerial Resolution No. 4104/20/M of 4.11.1408H (18 June 1988) concerning the 
Implementing Regulations to the Private Me dical Establishments Law (Articles 1-2) 
- Implementing Regulations to Regulation of Technical Institutes and National 
Occupational Centres (Articles 1-9) 
- Resolution from His Royal Highness the Minister of Defence and Aviation 
concerning the Regulation of Tourism and Travel Agencies and Companies engaged 
in Air Transport (Articles 1-4 and 13) 
- Ministerial Order No. 264 of 16.9.1402H (7 July 1982):  Organization of the Practice 
of the Profession of Engineering Consultancy (Party I and III) 
- Law of Certified Accountants (Articles 1-2) and Ministerial Order No. 595 of 
13.11.1395 (16 November 1975) enacting the Implementing Regulations of the 
Accountants Law 
- Ministerial Order No. 1190 of 16.2. 1402 (13 December 1981), Regulation of 
Carrying on the Profession of Legal C onsultancy (Articles 1-2 and 4-7) 
- Law Concerning the Carrying on of the Profession of Pharmacy and Trading in 
Medicaments and Medical Preparations (Article 1.5) 
- Government Purchases Law and Implementing Regulations 
- Grievance/Dispute Measures  
- Rules and Procedures of the Board of Grievances 
- Law of Arbitration and Implementing Re gulations to the Law of Arbitration 
- Other Measures and Documents  
- Import Statistics WT/ACC/SPEC/SAU/4/Rev.4 
Page 6  
 
 - Royal Decree M/10 of 3.3.92 H (16 April 1972) and Council of Ministers Resolution 
No. l 172 of 25.2.92 H (9 April 1972) 
- Council of Ministers Resolution No. 124 of 29.5.1403 (13 March 1983) 
4. The representative of Saudi Arabia stated that over the last 30 years, Saudi Arabia had 
become a State with a strong economy increasingly b ased on the private sector with a sophisticated 
infrastructure.  At the same time, government initia tives had been used to influence economic activity 
when necessary, in order to ensure the protection of  the Islamic values of Saudi Arabian society.  
Economic development of Saudi Arab ia had largely depended on the utili zation of its large oil and gas 
reserves.  Saudi Arabia was the largest producer of  oil in the world and one of the world's largest 
producers of natural gas.  The availability of these resources had given rise to an economy typical of oil-producing developing countries characterized by  a major concentration of exports on a single 
exhaustible resource and a high propensity to import. 
5. The representative of Saudi Arabia inform ed members of the Working Party that 
Saudi Arabia had adopted free market principles ensu ring that private enterprise would always be the 
main focus of economic activity, and established an  indicative planning approach to economic and 
social development based on Islamic values and principles, which guide the development in a 
coordinated and balanced direc tion.  Economic indicative planning in the Kingdom provided an 
appropriate conceptual, practical and organizationa l framework for the development process, with all 
of its economic, social and institutional dimensions .  In addition to the underlying objectives of the 
preservation of Islamic values and the provision of national security, the consecutive five-year 
indicative plans aspired to achieve a number of ot her broad goals.  These incl uded diversification of 
the economy, particularly through laying more em phasis on industry and agriculture, and developing 
mineral resources, improvement of living standard s and quality of life, achievement of balanced 
growth throughout all regions of the Kingdom, stre ngthening the role of the private sector, through 
encouraging its participation in various socio-economic development projects, achievement of social 
and economic integration among GCC countries, and support economic c ooperation with other 
countries.  Other objectives include development and sustenance of the country's physical infrastructure, protection of the environment a nd development and utilization of human resources 
through increasing the absorptive capacity of educati onal institutions.  The First and Second Plans had 
laid the foundation for the Kingdom's transformation into a modern industrialized state.  The Third 
and Fourth Plans furthered the diversification of the economy and concentrated on infrastructure 
projects in educational, health, training and other social services, and by encouraging the growth of 
the private non-oil sector.  The Fifth Development Plan broadened the main objectives of the previous plans and further strengthened the private sector's ro le in economic diversification of the Kingdom.    WT/ACC/SPEC/SAU/4/Rev.4 
 Page 7 
 
 
 6. He further recalled that the Sixth Development Plan continued the main objectives of the 
previous development plans.  It set out to meet the Kingdom's development needs through 
maximizing the private sector's contribution in the provision of jobs, diversifying the economy to 
lessen its dependence on oil, building new physical infrastructure, improving social services, expanding job opportunities for the Saudi labour force,  raising the per-capita income of the population 
and maintaining a balanced budget over the Plan's peri od.  The development of the country's scientific 
and technological capabilities and the protection of the environment against pollution as well as the 
preservation of the country's natural resources, we re also among the general objectives of the Sixth 
Plan, and later plans .  Over the past three decades, non-oil GDP  increased more than five-fold and 
private investment increased seven-fold.  Infant mo rtality rates dropped by over 80 per cent; the ratio 
of physicians per person improved by more than 95 per cent.  Over the same period, school enrolment 
rose from 600,000 to more than 4.7 million and Saudi Arabia had among the lowest pupil-teacher 
ratios in the world. 
7. The representative of Saudi Arabia further adde d that Saudi Arabia had also improved its 
trade with other nations of the world.  In 2003,  he reported, Saudi Arabia was the world's 25
th-largest 
importer/exporter, with a foreign investment balance of US$ 78 billion.  The Kingdom's gross 
domestic product grew from US$ 20 billion in 1970 to US$ 190 billion in 2002.  Also, he stated, Saudi Arabia maintained one of the least restrictive exchange and trade systems in the world.  Indeed, 
with limited exceptions noted below in this Report, Saudi Arabia only maintained trade restrictions 
for religious, health or security reasons. 
8. Members of the Working Party asked Saudi Arabia to provide information regarding the most 
recent Development Plans.  In response, the repr esentative of Saudi Arabia noted that the Seventh 
Development Plan, Decree No. 126 of 28.5.1421 (29 August 2000), covered the years 2000 through 
2004.  The Plan focused on increasing the size and strength of the private sector, and developing 
Saudi Arabia's human resources.  In addition, the Plan emphasized increasing the level of efficiency 
of Saudi Arabia's industrial sector.  As with prior pl ans a primary goal of the seventh Plan had been to 
diversify as well as grow Saudi Arabia's economy. 
9. The representative of Saudi Arabia also descr ibed aspects of the Eighth Development Plan, 
covering the years 2005-2009, which was still being prepared.  He noted that, under the Plan, 
Saudi Arabia would continue to focus on higher growth rates and increasing investment, foreign as 
well as domestic.  As with the previous Plan, Saudi  Arabia would continue to develop its human 
resources.  The Eight Development Plan would likely have additional emphasis on commitment to a long-term development strategy linked to time fram es and quantitative objectives.  This aspect of the WT/ACC/SPEC/SAU/4/Rev.4 
Page 8  
 
 Plan, he said, would allow Saudi Arabia to measu re its progress and ensure that its policies were 
appropriate and were assisting th e Kingdom in achieving its goals. 
10. The representative of Saudi Arabia stated that  the diversification of the economy could only 
be achieved through much broader private sector par ticipation in the economy.  The private sector had 
already begun to pursue a wide range of business opportunities unrelated to government expenditures 
and this trend was expected to accelerate as pr ivate sector management, production and marketing 
capabilities strengthened and the competitive atmosphe re improved.  Institutional support for private 
sector-led growth and diversification would be provided by the Government, through liberalization 
and facilitation of investment and ra pid development of Saudi Arabia's  financial sector.  Saudi Arabia 
also recognized the need to build a technology base.   Whilst Saudi Arabia had kept up to date with 
global scientific and technological developments, this had largely been through the import of 
sophisticated technology owned by foreign partne rs.  Saudi Arabia still needed to improve its 
indigenous technological capabilities to the level of  that existing in developed countries.  The 
Government planned to assist through the expans ion and improvement of educational courses and 
facilities related to science and technology at a ll levels, as well as improvement of the overall 
structural support for private sector initiatives.  In addition, Saudi Arabia was aware of the need to 
impart to its citizens the knowledge and skills that w ould enable them to participate effectively in all 
social, economic and cultural activities, as well as to further develop vocational and technical 
education so that the country's skilled manpower needs could be met. 
11. In their opening remarks, members of the Working Party welcomed Saudi Arabia's decision 
to accede to the WTO and to implement the WTO  Agreements expeditiously through the 
establishment of institutional arrangements and the amendment and adoption of the required 
legislation and regulations.  It was noted that Saudi  Arabia had played and was expected to continue 
to play a significant role in contributing to main tain economic and financia l stability and growth, both 
in the region and globally.  Saudi Arabia's accession would reinforce the universality of the WTO and 
strengthen the multilateral trading system. 
12. The Working Party reviewed the economic polici es and foreign trade regime of Saudi Arabia 
and the possible terms of a draft Protocol of Accession.  The views expressed by members of the 
Working Party and the various aspects of Saudi Arab ia's foreign trade regime, and on the terms and 
conditions of Saudi Arabia's accession to the WTO, are summarized below in Paragraphs 13 to [...].  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 9 
 
 
 II. ECONOMIC POLICIES 
- Monetary and Fiscal Policies 13. The Saudi Arabian Monetary Agency (SAMA) is charged with carrying out the Kingdom's 
monetary policy.  The objective of monetary po licy is the maintenance of domestic price and 
exchange rate stability.  To promote domestic price stability, SAMA takes measur es to ensure that the 
growth in domestic liquidity is broadly in line w ith the growth and availability of goods and services 
in the economy and the banking system is endowed with  adequate liquidity so that the credit needs of 
all the sectors of the economy are adequately met.  For maintaining the stability of the fixed exchange 
rate, SAMA monitors the Riyal market to ensure  its smooth functioning and takes corrective measures 
if there are any disruptive activities.  SAMA h as been highly successful in achieving these objectives 
over the years.  The domestic price situation has re mained highly stable for years, with the average 
annual increase in the cost of living index recordi ng an average rise of less than one per cent per 
annum over the last two decades.  The exchange rate  of the Riyal vis-à-vis the U.S. dollar has also 
been maintained at SAR 3.75 per U.S. dollar sin ce 1986.  The sustained stability in domestic prices 
and the exchange rate over a prolonged period of tim e has greatly facilitated the growth process of the 
Saudi economy. 
14. The primary objective of Saudi Arabia's fiscal policy was to encourage economic growth and 
diversification of the economy and thereby improve  living standards, educational opportunities and  
public services.  Diversification of the economy w ould speed Saudi Arabia's integration into the 
global economy by increasing its participation in the technology and communications sectors, and 
basic industrial sectors, leading to the strengthening of Saudi Arabia's technical infrastructure.  Diversification would also strengthen and diversify Saudi educational institutions.   He further noted 
that the preparations for Saudi Arabia's accession to the WTO had further improved the climate for 
foreign and domestic investment and trade.   Th e major source of the Kingdom's revenues was oil, 
which accounted for roughly 80% of total revenue; non-oil revenue consists of corporate taxes, 
customs duties and miscellaneous administrative fees.  
15. In response to requests for information on the national budget, he further noted that revenues 
for 2004 were projected at SAR 200 billion, with  expenditures budgeted at SAR 230 billion.  The 
budget for 2004 included new projects amounting to SAR 41.6 billion, mostly in the areas or 
education, health, social development, road s, municipalities and water services.  Annualized 
appropriations for the main development and public service sectors for 2004 were as follows:  
SAR 63.7 billion for education, including technical  and vocational training; SAR 24.3 billion for 
health services and social development; SAR 8.6 billion for municipal services; SAR 7.3 billion for WT/ACC/SPEC/SAU/4/Rev.4 
Page 10  
 
 transportation and telecommunicati ons; and SAR 15.1 billion for other infrastructure developments, 
especially in the water, industry and agricultura l sectors.  He reported that revenues for 2003 had 
amounted to SAR 295 billion, with expenditures of SAR 250 billion, resulting in a surplus of 
SAR 45 billion, which was used to retire part of  the domestic debt.  There had been increases in 
certain expenditures related to developments in the regional and domestic security situations, as well 
as expenditures related to settlements of late payments .  The remaining revenue was used to retire part 
of the domestic debt. 
- Taxation and Zakat 
16. Some members of the Working Party requested information on how "Zakat" applied to 
Saudi Arabian citizens and how income tax applie d to foreigners.  These members noted that it 
appeared that the Zakat and income tax were applie d in such a manner that foreign investors typically 
carried a higher total tax burden than Saudi citizens.   The representative of Saudi Arabia stated that 
there was a general misunderstanding a bout Zakat and income tax.  It was not correct to say that the 
tax burden (as distinct from the nominal rates) was higher for foreigners than for Saudi nationals or 
Saudi companies.  The percentage of corporate income tax applied to a non-Saudi did not exceed 
20 per cent of net income, while the percentage of Zakat may reach or even exceed 100 per cent of net 
profit.  Also, he reported, it was incorrect to say th at all Saudi persons are subject only to Zakat; just 
like non-Saudis, Saudis engaged in natural gas inv estment or oil or hydrocarbons production activities 
are subject to income tax.  Zakat was a religious duty, and because its rate and basis of collection was 
prescribed by religion, it could not be altered. 
17. According to the representative of Saudi Arab ia, the main features of Zakat were the 
following: 
- Zakat was applied at a flat rate of 2.5 per cent on the net worth of Saudi natural 
persons, wholly Saudi-owned companies and Saudi partners in joint ventures (except 
for rain-fed agricultural products and irri gated agricultural products, for which the 
rate was 10 per cent and 5 per cent, respectively). 
- The base for levy of Zakat, i.e., the assessable amount, was not the income or profits 
of the assessee.  It was much larger and in cluded: capital, retained earnings, reserves 
and net profits (it did not include fixed assets, investments in other companies, losses carried over from previous years and losses for the fiscal year).  There were no exemptions. 
- Zakat was payable even if the company did not make a profit. 
- Zakat was payable even if the company ceased its activities; it was non-payable only 
when the company was liquidated. 
18. In contrast, he noted, income tax and corporate tax had the following features:  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 11 
 
 
 - Persons subject to taxation included:  (i) shares held by non-Saudis in a company 
located in Saudi Arabia; (ii) a resident  non-Saudi natural person who does business in 
the Kingdom; (iii) a non-resident, non-Saudi who does business in the Kingdom through a permanent establishment; (iv) a non-resident, non-Saudi on other income subject to tax from sources within the Ki ngdom; (v) a Saudi or non-Saudi engaged in 
natural gas investment activities or oil and hydrocarbon production activities. 
- The maximum rate of corporate tax on net profit had been reduced from 45 to 
30 per cent, and now stood at 20 per cent, with the special exceptions described below, as per Council of Ministers Decision on 12.1.2004 (in contrast, Zakat was payable on net worth).  The tax base of a ta xpayer engaged in natural gas investment 
activities was subject to tax at the rate of 30 per cent; internal rates of return higher 
that eight per cent were subject to higher taxes.  The tax base of a taxpayer engaged 
in oil and other hydrocarbon production is subj ect to tax at the rate of 85% per cent. 
- Income tax was payable by foreign natura l persons, foreign pa rtners and foreign 
shareholders in business entities, as described  above, on their net profit.  However, 
wages and salaries were exempt from taxation. 
- Corporate tax was payable by non-Saudi cor porations operating inside Saudi Arabia 
or both inside and outside of Saudi Arabia at the same time, as described above, based on: (i) the total share of foreign partne rs in the net profits of Saudi corporations 
(limited liability companies and joint stock companies); and (ii) the total shares of 
foreign partners in the net profit of Saudi partnerships. 
- Unlike Zakat, corporate tax was not payable in relation to any year in which the 
company did not make a profit or was not in operation. 
- For corporate tax, there was a provision for carry forward of losses for unlimited 
number of years. 
19. Members of the Working Party thanked the re presentative of Saudi Arabia for the above 
information and requested clarification of how Za kat revenues were collected and allocated to the 
budget, in particular whether they were allocated  to the General Fund, and whether Zakat revenues 
were required to be used for particular purposes.  In response, the representative of Saudi Arabia 
provided the following information.  Zakat revenu es were earmarked for social welfare purposes set 
by the Social Welfare Organization under the Ministry of Labour and Social Affairs.  The entities subject to Zakat are Saudi indi viduals who conduct business in the Kingdom, Saudi companies of all 
types that conduct business in the Kingdom and shares of  Saudis in joint companies.  The Department 
of Zakat and Income Tax (DZIT), he further repor ted, applied registration, filing, collection and 
enforcement procedures on payers of Zakat. 
- Foreign Exchange and Payments 
20. The representative of Saudi Arabia stated th at Saudi Arabia maintained no exchange 
restrictions and no trade restrictions were imposed  for balance-of-payments reasons.  The exchange 
rate policy of the Kingdom had for a long time been g eared to maintaining a stable relationship with 
the U.S. dollar, which is the intervention currency.  As already mentioned, the exchange rate of the 
Riyal had remained around SAR 3.75 to the dollar si nce 1986.  This had created a stable exchange 
rate environment for the private sector and ha d also been conducive to foreign investment. WT/ACC/SPEC/SAU/4/Rev.4 
Page 12  
 
 21. The exchange rate of the Riyal was determined  by SAMA in light of the economic, trade and 
balance of payments situation both at home a nd abroad.  Until the end of 2002, the Riyal was 
effectively (informally) anchored to the U.S. dollar,  within the framework of an official link to the 
SDR.  In pursuance of a decision taken by the GCC heads of states in December 2001, the Riyal, 
along with other GCC currencies, has become offici ally (formally) pegged to the U.S. dollar as from 
the beginning of 2003 in preparation for the monetary union and the single currency for the GCC 
countries by the year 2010.  The choice of U.S. dollar to serve as a common denominator is based on 
the fact that the U.S. dollar is the intervention currency for all the GCC countries and their foreign 
reserves for currency cover and balance of paymen ts purposes are largely held in U.S dollars.  
Moreover, a stable relationship with the U.S. do llar is of crucial importance not only for fiscal 
management but also for the traders in their business planning.   
22. Since the early 1960s, when Saudi Arabia unde rtook the obligations of convertibility under 
Article VIII of the Articles of  Agreement of the IMF, the Saudi Riyal has remained fully convertible, 
with no taxes or subsidies on the purchase and sale of  foreign exchange.  There are no restrictions on 
payments in Saudi Arabia.  Imports, exports, re mittances and capital movements from, or to, the 
Kingdom are free from restrictions.  There are also no currency controls that have a direct impact on 
imports, e.g., there are no surrender requirements, prior deposit for importation, import prepayment 
requirements or acquisition fees. 
23. He noted that Saudi Arabia was a market economy with liberal trade and payment policies.    
Remittances by expatriate workers are also free of restrictions.  These totalled US$15.9 billion 
in 2002, equivalent to roughly 8.4 per cent of the nominal gross domestic product (GDP).  There were 
no restrictions on capital movements.   
24. Saudi Arabia's balance of payments position has improved remarkably over the past few 
years.  The current account has been  in surplus since 1999.  The surp lus has risen from 0.3 per cent of 
GDP in 1999 to 6.3 per cent of GDP in 2002 and is e xpected to rise further in 2003.  Exports of goods 
and services during 2002 amounted to US$ 81.4 billion, approximately 43.2 per cent of GDP.  Imports of goods and services stood at US$ 53.6 billion, or 28.5 per cent of GDP.  Over the years 1999-2002, the net foreign assets of SAMA, the central bank of the Kingdom, have increased from 
US$ 37.9 billion to US$ 42 billion.  This amount is su fficient to cover 9.4 months' of imports of goods 
and services.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 13 
 
 
 - Competition Policy 
25. The representative of Saudi Arabia stated that , with the exception of certain sectors discussed 
below, Saudi Arabia's competition policies were based on free-market principles.  A draft law on 
competition policy is currently in the legislative process.  The draft Law was passed by the Shoura 
Council and was currently before the Supreme Econom ic Council; it would then be transmitted to the 
Council of Ministers.  The draft Law contained provisions, inter alia , on cartel and monopoly-type 
practices, on mergers and on unfair commercial practices.  In response to a question by a member of 
the Working Party, the representative of Saudi Arab ia reported that, although the draft Law would be 
the first statute banning anti-competitive acts, Islamic law prohibited a number of anti-competitive practices under the general rule requiring fair dealing in all commercial exchanges.  In addition, as a 
member of the Paris Convention, Saudi Arabia complied with Article 10 bis of the Convention, 
"Unfair Competition".  The draft Law would supplement and codify these prohibitions. 
- Pricing Policies 
26. Members of the Working Party requested information regarding restrictions on prices 
maintained by the Kingdom of Saudi Arabia.  In r esponse, the representative of Saudi Arabia reported 
that prices for goods and services in every sector in Saudi Arabia were freely determined by market 
forces with the exception of the goods listed at Annex A of this Report, which were subject to price 
regulation within the Kingdom to maintain price stability.  He stated that there were no government-administered prices in the services sector.   These policies were pursued to secure the needs and 
welfare of consumers and preserve important social interests of the Kingdom. 
27. The representative of Saudi Arabia further reporte d that the price regulations were applied on 
a non-discriminatory basis, regardless of whether a product or service was supplied by the government or by the private sector and regardless of  the nationality of the supplier.  He confirmed 
that the price controls were applied in a WTO-cons istent fashion and that Saudi Arabia would publish 
the prices of goods and services subject to price control requirements, as well as any modifications, in 
the official gazette, the Umm Al-Qura .  In addition, he referred the members of the Working Party to 
Annex A, "List of Items Subject to Price Controls".  
28. In response to a question from a member of  the Working Party, the representative of 
Saudi Arabia stated that all petroleum-based a nd natural gas-based products in the Kingdom were 
made available to industrial users regardless of wh ether the users were Saudi or foreign owned.  
Exports of these products, he confirmed, were based  entirely on international market conditions.  He 
further stated that the prices of certain petroleu m-based and natural gas-based products to domestic WT/ACC/SPEC/SAU/4/Rev.4 
Page 14  
 
 industries and consumers were set in a manner cons istent with WTO rules.  The same prices applied 
to all users in the Kingdom, whether Saudi or non-Saudi.  The representative added that the 
Kingdom's price control mechanisms conformed to Article III of the GATT 1994 and the transparency 
requirements of the WTO, and that the Kingdom w ould ensure that this remained the case in the 
future.  The representative of Saudi Arabia also confirmed that, following its accession, Saudi Arabia 
would continue to apply the price controls describ ed in Paragraphs 26-27 a nd listed in Annex A, as 
well as any future price controls, in a WTO-consistent  fashion.  He stated that Saudi Arabia would 
take into account the interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994. 
29. Some members of the Working Party requested information on the pricing of certain 
feedstock, in particular, methane, ethane, butane, pr opane and natural gas or liquefied petroleum gas.  
In response, the representative of the Kingdom of Sa udi Arabia noted that pricing of natural gas, 
including methane and ethane, was quite different fro m the pricing of butane and propane and natural 
gasoline.  Natural gas was not sold for export and th erefore had no international reference price in the 
Gulf region.  Similarly, there were no exports of  methane or ethane from Saudi Arabia, due to the 
high costs of liquefying, transporting and re-gasify ing such gases.  Previously, methane and ethane 
had been burnt as waste products.  Recently, it ha d been decided to make methane and ethane 
available to all interested users on a non-discrimin atory basis (whether Saudi or non Saudi) currently 
at a price of 281 Halalas per million BTU (US$ 0.75 per million BTU).  This decision was taken 
based on a combination of commercial reasons a nd environmental concerns.  Rather than burn 
valuable natural resources, the Kingdom had taken steps to conserve and market those resources 
consistent with WTO disciplines.  Methane and et hane were used by many industries and sectors, 
including power companies, desalination plants, cement manufactures and petrochemical plants. 
30. The representative of Saudi Arabia originally had noted that Council of Ministers Resolution 
No. 68 of December 1992 set butane, propane or natural gasoline (NGLs) prices 30 per cent lower 
than the export prices charged for those products.  This was done to take account of the costs 
associated with NGL exports to world markets, including refrigerating, storage, mooring and marketing.  The NGLs were available to all i ndustries and all users within the Kingdom whether 
Saudi or non-Saudi.  All other pr oducts were priced at arm's length, and there were no specific 
discounts.  He noted that, currently, heavy naptha was not subject to any discount and was priced at the prevailing international price. 
31. At a later stage, the representative of Saudi Arabia confirmed that the Council of Ministers 
Resolution 68 on the government pricing system of  butane, propane, natural gasoline had been  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 15 
 
 
 cancelled by Council of Ministers Resolution 260,  of 23.10.1422 (7 January 2002), transmitted by 
Communication No. 19756/R of 21.11.1422 (4 Februa ry 2002).  He confirmed that Council of 
Ministers Resolution 260 required that pricing of NGLs supplied to domestic industries be 
commercially based. 
[to be completed] 
- Privatization 
32. The representative of Saudi Arabia stated that a very important component of the Economic 
Reform Program of the Kingdom of Saudi Arabia (circulated to WTO Members WT/ACC/SAU/54 (4 April 2003)) was privatization.  An ambitious pr ivatization strategy was issued by the Council of 
Ministers on 4 June 2002, to ensure a continued in crease in the share of the private sector and to 
expand its participation in the national economy.  This would be  achieved by adopting the best 
available modality including transferring certain types of economic activity to the private sector, 
enhancing the participation of the private sector in  economic development and enabling it to carry out 
its investment and financing role in accordance with  the national development plans.  The Council of 
Ministers had approved the privatization of the following 19 small, medium and large state-owned 
enterprises and activities, on the basis of the defi nition of "privatization" in Saudi Arabia's 
Privatization Strategy approved by the Supreme Economic Council ("Privatization is the process of 
transferring ownership or management of public enterprises, 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 or the government's assets to 
the private sector"): 
- Water and sewage. 
- Desalination. 
- Communications. 
- Air transportation and services. 
- Railways. 
- Roads, including management, operati on, maintenance and construction. 
- Airport services. 
- Mail services. 
- Grain silos and flour mills. 
- Port services. 
- Services for industrial cities.   
- Government-owned hotels. 
- Sports clubs. 
- Municipal services, including slaughterhouses and waste removal. 
- Educational services, including school construction and tr ansportation and 
recruitment of Saudis into the private sector. 
- Agricultural services, such as quarantine and operation of laboratories and clinics. WT/ACC/SPEC/SAU/4/Rev.4 
Page 16  
 
 - Health services, such as operation of hea lth facilities and patient transportation. 
33. The representative of Saudi Arabia added that the Saudi Government also decided to sell 
state-owned shares in the following joint stock co mpanies:  the Saudi Arabian Basic Industries 
Corporation (SABIC), the Saudi Electricity Company (SEC), the Saudi Arabian Mining Company 
(Ma'aden), the Saudi Telecommunications Compan y (STC), Saudi Arabian Airlines, the National 
Commercial Bank and the Saudi Arabian Fertilizer Company. 
- Legal Basis for Privatization 
34. In response to questions from members of the Working Party, the representative of 
Saudi Arabia stated that the legal basis for the privatization program was the Council of Ministers 
Resolution No. 60 of 1.4.1418H (1997).  According to this Resolution, the objectives of the privatization strategy were as follows: 
i. Improving the efficiency of the nati onal economy and enhancing its competitive 
ability to meet the challenges of regional and international competition. 
ii. Encouraging private sector investment a nd effective participation in the national 
economy, and increasing its share of domestic  production to achieve growth in the 
national economy. 
iii. Enlarging the ownership of productive assets by Saudi citizens. 
iv. Encouraging domestic and foreign capital to invest locally. v. Increasing employment opportunities, optimizing the use of the national work force, 
and ensuring the continued equitable increase of individual income. 
vi. Provide services to citizens and investors in a timely and cost-efficient manner. 
vii. Rationalizing public expenditure and reducing the burden on the government budget 
by giving the private sector opportunities to finance, operate, and maintain certain services that it was able to provide. 
viii. Increasing government revenues from retu rns on participation in activities to be 
transferred to the private sector, and from financing compensation obtained, for example, from granting concessions and from the proceeds of the sale of part of 
government shares. 
35. According to Council of Ministers Resoluti on No. 257 dated 11.11.1421H (5 February 2001), 
the Supreme Economic Council of Saudi Arabia was responsible for supervising the privatization 
program and monitoring its implementation.  In r esponse to a question from a member of the Working 
Party, the representative of Saudi Arabia stated that foreign entities could purchase shares of state-
owned enterprises subject to privatization.  He furt her stated that objectives (iii) and (iv), above, were 
complementary and not mutually exclusive. 
36. He further noted that the basic principles that were taken into consideration when 
implementing the privatization process were the need  for disclosure and transparency, the need for 
expeditious implementation, the need to change the management pattern., and the need to create a  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 17 
 
 
 regulatory framework for privatized sectors.  He further noted that according to the Privatization 
Strategy, the criteria for determining priorities in selecting enterprises to be privatized were based on 
the positive effect on the national economy, the readiness of the enterprise for privatization, the social 
benefits of privatizing the enterprise, the in adequacies of the services provided by the public 
enterprises, and the absorptive capac ity of the capital market.  In response to further questions from 
some members of the Working Party, the representativ e of Saudi Arabia stated that the methods of 
privatization included Management Contracts, Lease Contracts, Financing Contracts and Sale 
Contracts. 
- Status of Privatization 
37. The representative of Saudi Arabia informed me mbers of the Working Party that the public 
enterprises partially privatized according to the defin ition in the Privatization Strategy so far included 
the following: 
a) Saudi Electricity Company (19 per cent private ownership); 
b) Saudi Arabian Fertilizer Company (57 per cent private ownership); c) Saudi Arabian Basic Industries Corporati on (SABIC) (30 per cent private ownership); 
d) Saudi Telecommunications Company (30 per cent private ownership); and 
e) National Commercial Bank (50 per cent private ownership). 
38. He further stated that the Saudi Arabian Mining Company (Ma'aden) and Saudi Arabian 
Airlines had not yet been privatized, but that pr eparations for their privatization were underway. 
 
39. The representative of Saudi Arabia stated that  the following implementation steps had been 
completed to date: 
i. Tasks related to the management, operati on and maintenance of port berths, as well as 
the provision of associated equipment, had been assigned to the private sector in 
accordance with the Royal Approval issued in 1417 (1997) and the Council of 
Ministers' resolution issued in 1419 (1999) which assigned to the private sector a greater role in the management and opera tion of ports, and called for a review of 
organizational structures and related pro cedures, a feasibility study on establishing 
free trade areas at the ports and the linking of the two ports of Jeddah and Dammam 
by a railroad. 
ii. Efforts are underway to attract private-sector investment in a North-South railroad 
connection to increase Saudi Arabia's ab ility to develop its mineral resources. 
iii. The education sector received applicati ons from the private sector to finance the 
construction of schools and to particip ate in providing higher education services 
through private colleges. 
iv. Saudi Arabia has announced that it will privatize Saudi Post.  Competition will be 
allowed in this sector. WT/ACC/SPEC/SAU/4/Rev.4 
Page 18  
 
 v. The Council of Ministers' Resolu tion 169 of 11/8/1419 (30 November 1998) 
approved the restructuring of the electricity sector.  Initial investments are to be made within the next few years. 
vi. A Saudi Joint Stock Utility Company had b een established in the twin industrial cities 
of Jubail and Yanbu to operate, mainta in, manage and expand the tasks of 
infrastructure utilities as part of the privatization program. 
vii. The Saudi Telecommunications Comp any was established as a business-oriented 
stock company providing all telecommunications services previously provided by the MOPTT.  In 2002, a 30 per cent stake was sold to Saudi nationals in the private sector. 
viii. In Jeddah Industrial City, a concession st ructured on a BOT (build-operate-transfer) 
basis was granted to a private entity to rehabilitate, maintain and expand a waste-water treatment facility.  This was completed in March 2002. 
ix. In Jubail, a pilot concession on a build, re novate and transfer basis was being pursued 
as a part of a joint venture with a salt water concession company.  This model will be 
used for future desalinization plants. 
40. The representative of Saudi Arabia stated that  from the date of accession, Saudi Arabia would 
provide WTO members with periodic reports on the status of privatization in the Kingdom.  The 
Working Party took note of this commitment.   
- State-Owned Enterprises 
41. The representative of Saudi Arabia gave the following information on Saudi Arabia's major 
100 per cent state-owned enterprises: 
i. Saudi Arabian Oil Company (Saudi Aramco)
: 
The Saudi Arabian Oil Company (Saudi Aramco) was a state-owned company established by 
Royal Decree in 1988.  The objective and purpose of Saudi Aramco was the exploitation of 
crude oil and natural gas.  Saudi Aramco produ ced crude oil and natural gas in the Kingdom.  
It also refined and marketed products within Sa udi Arabia and entered into joint ventures in 
these activities with local and international oil companies.  Although owned by the 
government, it was and still is run by an indepe ndent management and board of directors. 
ii. Saudi Arabian Mining Co. (Ma'aden) : 
Ma'aden was established in 1996 as an autonom ous joint stock company, owned by the 
government with a capital of SAR 4000 million, wh ich would be privatized gradually.  The 
company undertakes several mining activities related to all stages of the mining industry, including development and improvement of the mining industry and products as well as 
related industries.  The company operates on a commercial basis to realize profit. 
iii. Saudi Arabian Airlines (SAUDIA)
:  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 19 
 
 
 SAUDIA initially was 100 per cent owned by the Saudi government.  The first steps to 
privatize SAUDIA were taken in 1994, when SAUDIA laid the ground work to allow it to 
operate in accordance with commercial princi ples in order to meet the challenges of 
competition in the market.  In this respect , SAUDIA restructured its administrative and 
executive sectors.  The Kingdom has decided to  privatize SAUDIA and currently is making 
preparations to do so.  
iv. Grain Silos and Flour Mills Organization (GSFMO) : 
GSFMO is a public enterprise which was established by Royal Decree in February 1972.  Of 
the 11 GSFMO facilities, 6 are integrated silo, flour mill and feed mill facilities and five are solely silo facilities. 
v. Saline Water Conversion Corporation (SWCC)
: 
SWCC is responsible for all of the desalina tion plants in Saudi Arabia. SWCC is an 
independent entity under the jurisdiction of the Ministry of Water and Electricity.  Under 
SWCC, Saudi Arabia's desalinated water output surpassed one billion cubic meters in 2002.  The Kingdom's desalination plants provide dr inking water to major urban areas through over 
2,000 kilometres of pipelines. 
vi. Saudi Railways Organization
: 
Saudi Railways Organization is an autonomous state agency under the jurisdiction of the 
Ministry of Transport.  The infrastructure capital is owned by the Kingdom.  The total 
network consists of 1018 k ilometres of railroad line. 
vii. Specialized Financial Institutions (SFI) : 
In the financial sector, there are two government-owned SFIs: 
a. Saudi Arabian Agricultural Bank (SAAB); 
b. Saudi Industrial Development Fund (SIDF); 
c. Public Investment Fund (PIF); 
d. Real Estate Development Fund (REDF); and e. Ministry of Finance Lending Program.  
42. The representative of Saudi Arabia stated that the role of the SAAB had been explained in 
Paragraphs 226-227 of the Report; the role of SIDF  had been explained in Paragraph 165 of the 
Report.  The PIF was originally established to finan ce projects in the public sector.  That continues to 
be the major focus of the PIF.  However, its role  had evolved.  For very large projects which were WT/ACC/SPEC/SAU/4/Rev.4 
Page 20  
 
 strategically important, but for which private-sector investors on their own could not raise financing, 
the PIF provided long-term financing on a commerc ial basis on the condition of co-financing by 
commercial banks.  Further, the PIF was the cust odian of the shares owned by the government in 
publicly traded companies.  It also managed th e sale of the shares of government–owned enterprises 
as the government embarked on privatization.  He st ated that the role of the PIF would gradually 
shrink as the private sector assumed a leading role in the economy and the privatization program 
progressed.  (Regarding privatization, the representativ e referred to Paragraphs 32-40 of the Report.)  
The representative further stated that the objective of  the REDF was to provide interest-free loans to 
Saudis to build houses for their own use.  He also  reported that the Ministry of Finance Lending 
Program was started some 30 years ago to provide funding for some essential sectors where the private sector funding was not forthcoming because of  a shortage of funds or non-availability of 
commercial lending at that time.  The lending was now for human resource development. 
43. The representative said that a major differe nce in operations of these Funds and in 
commercial bank lending was that, whereas commercia l lending was generally available for short-
term financing in Saudi Arabia, these Funds provided medium- and long-term financing.  The role of 
these funds, he said, had evolved in tune with developments in the economy.  For example, the role of 
the REDF would decline substantially due to the f act that its financial resources were limited, while 
there was a huge demand for the loans.  Thus, the f und could meet only a small percentage of requests 
for housing loans.  Consequently, the loans provided by commercial banks were rising.  The role of 
SAAB and SIDF would also keep evolving as th e capital market developed and diversified. 
44. These funds did not encroach on commercially viable lending, he reported.  In fact, they 
complemented commercial lending.  Whereas commercial lending was on a short –term basis in Saudi Arabia, these Funds provided financing on a medi um- and long-term basis.  Co-financing by 
commercial banks was a prerequisite for lending by th e funds.  Thus, at least 50 per cent of financing 
a project had to be arranged from commercial banks. 
45. The representative of Saudi Arabia stated th at from the date of accession to the WTO Saudi 
Arabia would comply with WTO provisions, including the requirements of Article XVII of the GATT 1994, the WTO Understanding on that Article, and Article VIII of the GATS regarding State 
trading, with respect to all State-owned enterpri ses and other enterprises and entities with special or 
exclusive privileges as defined by those Articles or Understanding.  Saudi Arabia would also abide by 
the requirements of Article XVII of the GATT 1994, the WTO Understanding on that Article, and 
Article VIII of the GATS concerning notification,  non-discrimination, and the application of  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 21 
 
 
 commercial considerations in the trade transactions of all such entities.  The Working Party took note 
of these commitments.  
- Investment Regime 
46. The representative of Saudi Arabia informed  the Working Party that a new Foreign 
Investment Law, replacing the Foreign Capital Investment Law, had been promulgated by 
Royal Decree No. M/1 of 5.1.1421H  (9 April 2000).  Implementing Regulations under the new 
Foreign Investment Law had been issued on 24 June  2002.  In response to questions from Members of 
the Working Party, the representative of the Kingdom of Saudi Arabia noted that the Kingdom had started the process of attracting FDI long ago when it issued the first Foreign Investment Law in 1956.  Another Law followed in 1962 and, in 1979, Saudi Ar abia issued a more comprehensive Law, which 
included wide-ranging incentives for investment, such  as exemption of custom duties for production 
inputs, nominal rental rates for land for the establis hment of projects, financial assistance in the form 
of soft loans and exemption of exports from tax es and duties.  The 1979 Foreign Investment Law had
 
granted industrial and agricultural projects a 10-year  tax holiday and a 5-year tax holiday for other 
projects, provided that national capital formed 25 pe r cent of the project capital and on condition that 
this percentage did not decrease during the holiday  period.  The Law was amended to grant an 
addition 10-year tax holiday to expansions of exis ting projects.  But, to enjoy the incentives, the 1979 
Law required that foreign investments be:  (i) at least 25 per cent Saudi; (ii) among the specified projects of the national development plans; and (iii) of high technical content with foreign expertise to 
facilitate the transfer of technology.
 
47. The representative of Saudi Arabia clarified that, to address developments that took place in 
the international and regional economic landscap e, the investment laws were overhauled 
in April 2000, by the enactment of a new foreign investment law to build on the strengths of the old law and provide additional incentives to increase the level of FDI in the Kingdom.  The new 2000 
Foreign Investment Law provided the legal structur e necessary to attract additional investment.  One 
of the features of the new Law was its departure from tariff incentives and use of other FDI-promoting 
measures in conformity with the recent global liberalization of trade and investment.  A comparison of the old 1979 Law and the new 2000 Law is attached  as Annex B.  In addition, in response to 
questions by members of the Working Party, the representative of Saudi Arabia confirmed that 
SAGIA imposed no other requirements or criteria for new investments or foreign investments. 
48. Members of the Working Party requested in formation on whether GCC nationals received 
preferential treatment in Saudi Arabia.  The represen tative of Saudi Arabia replied that GCC nationals 
are treated as Saudi nationals for the purposes of investment. WT/ACC/SPEC/SAU/4/Rev.4 
Page 22  
 
 49. Some members of the Working Party requested clarification whether there were any formal 
requirements setting a minimum level of Saudi participation in any business venture.  The 
representative of Saudi Arabia stated that under the new law on foreign investment there was no 
requirement of a minimum share for Saudi investors.  Therefore, foreign investors are no longer required to take local partners and are permitted to  own real estate for company and housing purposes.  
There is a minimum capital investment requirement of SAR 25 million for agricultural projects, SAR 
5 million for industrial projects and SAR 2 million for services projects.  In response to a further 
question by a member of the Working Party, the representative of Saudi Arabia reported that the different requirements were set to ensure that invest ors were committed to the venture.  In addition, he 
stated, the services requirement was set lower to re flect the generally lower level of capital required 
for such ventures.  The agricultural requirement was set higher than the other two to ensure that such 
projects would be large and thus able to take adva ntage of economies of scale and efficient water use.  
The minimum capital investment requirement could be reduced by the Board of Directors of SAGIA for projects established in specified areas (i.e., l ess-developed areas in the country), for projects 
requiring a high degree of technical expertise or  for export projects.  Under the new Foreign 
Investment Law, a foreign investment may take one of the two following forms: 
i. an enterprise owned by foreign and national investors, i.e., joint ventures, but with no 
requirement for minimum share for national investors; or  
ii. an enterprise wholly-owned by foreign investors, i.e., 100 per cent foreign 
shareholders' equity. 
50. The Saudi representative stated that a project, wh ether wholly-owned by foreign investors or 
a joint-venture, licensed in acco rdance with the Law, enjoyed all benefits, incentives and guarantees 
available to a national project.  Under the new Law, a foreign investor was entitled to transfer, outside 
the Kingdom of Saudi Arabia, the proceeds from th e sale of his shares or the excess funds from the 
liquidation of his assets or the profits earned by the enterprise or from the disposal of the business in 
any other legal manner.  Further, the investor was entitled to transfer outside the Kingdom of Saudi Arabia the required funds to settle any contract ual obligations related to the project.  Article 11 
of the new Foreign Investment Law provided legal safeguards against confiscation or expropriation of 
foreign investments.  It was not permissible to confiscate foreign investments, wholly or partially, except by a court order.  In addition, it was not pe rmissible to expropriate the ownership of foreign 
investments, wholly or partially, except for th e public interest, and on payment of reasonable 
compensation in accordance with th e law.  The representative stated  that foreign investment was 
permissible in all activities, except a short "nega tive list", which would be  revised and shortened 
periodically.  Members of the Working Party also i nquired as to the specific content of the "negative 
list."  In response, the representative of Saudi Arabia stated that the negative list, which was issued by  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 23 
 
 
 a decision of the Supreme Economic Council under Artic le 3 of the Foreign Investment Law, did not 
target specific companies; rather, it applied to certain limited industrial and services sectors.  The 
Saudi representative reported that many of the items on the list would be removed upon accession, to 
reflect the commitments in Saudi Arabia's Schedul e on Specific Commitments in Services annexed to 
its Protocol of Accession.  He further noted th at, following accession, Saudi Arabia would annually 
review and remove additional items from the ne gative list each year (beyond Saudi Arabia's WTO 
commitments), to further liberalize the economy.  The negative list, including significant exceptions 
allowing the provision of certain printing and publishing services and certain telecommunications 
services, was at Annex C. 
51. Some members of the Working Party requested  clarification of the incentives offered by 
Saudi Arabia to foreign investors to invest in Saudi Arabia in order to support the inflow of 
technology and expertise, in particular whether technology transfer was in any way a condition for 
investment approval in all or certain areas.  The representative of Saudi Arabia replied that under the 
new Foreign Investment Law of 9 April 2000, technology transfer was not a condition for investment approval.  A foreign investor had to approach  only one authority - the Saudi Arabian General 
Investment Authority (SAGIA) - to obtain a licen se.  In response to a further question, the 
representative confirmed that investors could obtain information and assistance, as well as all of the necessary registration forms, including the forms for specific licenses, from SAGIA.  SAGIA was 
required to decide on the investment application w ithin 30 days from the date all required documents 
were submitted.  SAGIA would also serve as the enquiry point on laws, regulations and procedures 
relating to foreign investment.  The SAGIA license pr ovided the foreign investor all of the privileges 
held by local investors.  In response to a ques tion from a member of the Working Party regarding 
whether the SAGIA license was the only license or approval required by a foreign investor, the representative from Saudi Arabia stated that, after obtaining the SAGIA license, the foreign investor 
was treated the same as any local investor and, thus, for certain businesses, must apply for other 
licenses, depending upon the nature of the business.  The licensing requirements, he reported, were 
the same for Saudis and non-Saudis.  For example, a company (whether Saudi or non-Saudi) seeking to establish a company and set up a hospital—whethe r backed by a national or a foreign investor—
would need to obtain a company registration and permit from the Ministry of Commerce and Industry 
and a health practice permit for hospitals from the Ministry of Health.  Similar requirements would 
apply to persons seeking to establish a school or a depa rtment store.  In response to a further question, 
the representative noted that the new Foreign Investment Law and the implementing regulations provided that foreign investment ventures had the ri ght to own real estate to the extent necessary to 
carry out their licensed activities and to accommodate  their employees, in accordance with regulations 
of property ownership for non-Saudis.  Further, it w as provided that foreign investors had the right to WT/ACC/SPEC/SAU/4/Rev.4 
Page 24  
 
 sponsor and bring their non-Saudi employees, subject to the numerical limits set out in Saudi Arabia's 
Services Schedule and Paragraph 55 of the Working Pa rty Report.  He reported that Saudis were not 
subject to these restrictions.  The representative conf irmed that individuals contemplating investing in 
Saudi Arabia, and their support staff, could obtai n visas for period of up to six months, for single 
entry or multiple entries, based on a request to S AGIA, the Chamber of Commerce or the Ministry of 
Foreign Affairs, including Saudi embassies.   
52. The representative of Saudi Arabia further noted  that the Foreign Investment Law allowed 
foreign investors to invest in local or foreign vent ures, provided that general conditions applicable to 
new investments were met.  A foreign investor could apply for multiple licenses permitting different activities, provided that the foreign investor was not the owner of or a shareholder in a project which 
was in financial default.   
53. Some members of the Working Party asked wh ether the government had issued licenses to 
100 per cent foreign-owned operations.  In response the representative of Saudi Arabia stated that 
1,278 licenses had been issued for wholly foreign-owne d enterprises.  In response to further questions, 
he noted that, under the new Foreign Investment La w of April 2000 "national treatment" was given to 
foreign investors.  He further stated that the Fo reign Investment Law was fully consistent with the 
WTO  Agreement on Trade-Related Investment Measures,  and reiterated that Saudi Arabia did not 
apply any TRIMs prohibited by the WTO  Agreement on Trade-Related Investment Measures.   
54. In response to questions from some members of the Working Party concerning whether the 
Government of Saudi Arabia planned to liberalize its stock market and open it to non-Saudi investors, 
the representative of Saudi Arabia stated that Sa udi Arabia was gradually changing its regulations 
concerning participation of foreign investors in the shares market.  Although direct share trading in Saudi Arabia was restricted to Saudi and GCC nati onals, there were no restrictions on investment by 
foreign investors in Government Bonds, Treasury B ills or Saudi mutual funds.  There were non-GCC 
nationals that held shares of joint stock companies which were traded in the equity share market but 
those non-GCC nationals were required to receive permission from concerned authorities, such as the 
Saudi Arabian Monetary Agency and the Ministry  of Commerce and Industry, prior to buying or 
selling their shares.  In its continuous review and assessment of the development of the financial 
market, the Kingdom of Saudi Arabia had allowed the establishment of a close-ended fund (SAIF) 
listed on the London Stock Exchange through which inte rnational investors could participate in the 
Saudi shares market.  In November 1999, Saudi Arab ia had made further changes to its regulations 
and now permits foreigners to inv est in open-ended mutual funds mana ged by banks that invest in the 
Saudi equity shares market.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 25 
 
 
 55. In response to questions from members of the Working Party, the representative of 
Saudi Arabia reported that the newly adopted Ca pital Market Law, promulgated by Royal Decree 
No. M/30, dated 2.6.1424H (13 July 2003), estab lished a strong government regulatory body, the 
Capital Market Authority (CMA).  The CMA ha d rule-making and enforcement powers necessary to 
guarantee that the Kingdom's security market was fa ir, efficient and vibrant.  The CMA had the 
authority to promulgate and enforce rules for th e disclosures necessary in connection with the offering 
of securities, the continuous disclosure obligations  of publicly traded companies, disclosures and 
practices in connection with takeovers of public co mpanies, the regulation of proxy solicitations and 
to define and police insider trading and other a busive securities practices.  Most notably, the CMA 
had powers to license non-bank financial intermedia ries engaged in investment banking activities, 
such as corporate finance, asset management and brokerage activities.   Non-bank financial 
intermediaries had been required to incorporate as a joint stock company, with a minimum capital of 
SAR 50 million. 
56. The representative of Saudi Arabia further not ed that the new Capital Market Law also 
stipulated the creation of the Saudi Arabian Secu rities Exchange.  The Exchange was the exclusive 
securities market of the Kingdom.  Its nine-member board of directors included three public directors 
representing the Ministry of Finance, SAMA and the Ministry of Commerce and Industry.  In addition, the Law empowered the Exchange to estab lish professional and ethical standards for brokers 
and required the Exchange to establish as one of its  departments the Securities Deposit Centre, which 
had responsibility for the clearance and settlement  of all securities transactions executed on the 
Exchange.  The Centre also maintained the reco rd of ownership for all securities traded on the 
Exchange.  The law also called upon the CMA to est ablish and maintain a tribunal with exclusive 
jurisdiction to resolve all disputes involving securities.   (The provisions of the Capital Market Law are 
summarized at Annex D.)  
57. Some members of the Working Party asked whether Saudi Arabia planned to remove its 
restrictions on foreign investment in explorati on and extraction of hydrocarbons.  The representative 
of Saudi Arabia replied that significant investments by foreign investors relating to the upstream development of non-associated gas had been approve d; others were underway.  He noted that, for 
reasons of important national policies, restricti ons on foreign investment in the upstream sector, 
though relaxed, could not be  completely removed. 
58. Some members of the Working Party sought a clarification about an Article of the 
Implementing Regulations which said that licenses gran ted must not violate Saudi Arabia's regional or 
international  Agreements and asked Saudi Arabia to indicat e where this might occur.  They further WT/ACC/SPEC/SAU/4/Rev.4 
Page 26  
 
 requested Saudi Arabia to clarify the relations hip of Implementing Regulations to the Foreign 
Investment Law and enquired whether there were cu rrent plans for any additional elaboration of the 
Regulations.  In response to these, the representative of Saudi Arabia stated that Article 5 of the 
Implementing Regulations provided that granting a foreign investment license must not contravene 
international or regional treaties signed by th e Kingdom of Saudi Arabia.  These included the 
WTO  Agreement, the GCC and other treaties signed by Saudi Arabia.  He explained that, for 
example, Saudi Arabia would not issue any licen se to produce chemicals or materials that were 
restricted under regional or international  Agreements to which Saudi Arabia was a party.  Similarly, 
Saudi Arabia would not issue licenses to produce materials that were in breach of a regional or international  Agreement on environmental protection to which Saudi Arabia was a party.  With regard 
to the observations of Working Party members on Implementing Regulations, the representative of 
Saudi Arabia explained that Implementing Regulati ons were in the nature of by-laws issued by 
SAGIA, under Article 17 of the Foreign Investment Law,  to implement the Law.  He stated that there 
were no current plans for additional ela boration of the Implementing Regulations. 
59. Members of the Working Party asked that Saudi Arabia clarify its rules regarding 
employment of Saudi nationals.  In response, the representative of Saudi Arabia noted that Council of 
Ministers decision No. 50 of 21.4.1415 (27 Septembe r 1994) and Council of Ministers Bureau Letter 
8/490 of 28.6.1414 (13 December 1993), set forth requi rements regarding the hiring and employment 
of Saudi nationals.  He emphasized that the rul es were necessary to increase the employment of Saudi 
nationals in the Kingdom.  The rules were as follows: 
i. Companies of all types and activities should endeavour to attract and retain nationals. 
ii. Companies employing 20 or more people should increase the proportion of nationals 
employed by 5 per cent each year.  The 5 per cent figure is subject to modification 
according to workforce availability, the na ture and condition of the work and the 
availability of Saudis to fill the particular position(s). 
iii. Companies should, while working to reach th is average, employ nationals in a variety 
of positions. 
iv. Companies should not appoint a non-Saudi a human resources department chief, a 
company employment official, a receptionist, a commentator, a cashier or a civil guardian. 
v. Violations of i-iv, above, could r esult in penalties ranging from suspension of 
approval of requests for workers to deprivation of credit or removal from consideration for the governmental tenders or bids. 
60. In addition, the Saudi representative repor ted, under Decision No. 50 and Council Letter 
No. 8/490, the Ministry of Labour and Social Affairs had established a Committee to implement and 
oversee the provisions set forth above.  The Committee was headed by the Deputy Minister or a person he appointed, and comprised delegates from th e Ministry of Interior and the Ministry of 
Commerce and Industry.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 27 
 
 
 61. The representative of Saudi Arabia noted that, upon accession to the WTO, the hiring and 
employment restrictions set forth above would be modified to comply  with the provisions of the Saudi 
commitment on services as described in Saudi Arab ia's Schedule of Commitments on Services. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
62. The representative of Saudi Arabia explained that  the Basic Law of Government, instituted by 
Royal Decree No. A/90 dated 27.8.1412H (1 Marc h 1992), set down the law concerning political 
authority within Saudi Arabia.  Article 56 of the Basic Law of Government stated that the King was 
the Chairman of the Council of Ministers and was assisted by Ministers in the performance of his 
duties.  The Basic Law of Government also stated that the Law of the Council of Ministers laid down 
the powers of the Council regarding internal and ex ternal policies, the organization and coordination 
of the various Government authorities; and the c onditions to be satisfied by, the powers of, the 
method of responsibility and all affairs of the Ministers. 
63. He recalled that pursuant to Article 17 of the Consultative Council Law, resolutions passed by 
the Consultative Council were forwarded to the Ch airman of the Council of Ministers, who passed 
them to the Council of Ministers for consideration.   When the points of view of both Councils were 
in Agreement they were enacted after being approved by the King.  In case of a difference of opinion, 
the King approved what he consider ed appropriate.  Article 70 of the Basic Law of Government and 
Article 20 of the Council of Ministers Law pr ovide that laws, treaties and international  Agreements 
and concessions were enacted and amended by Roya l Decrees after having been considered by the 
Consultative Council and the Council of Ministers r espectively.  In general, no initials could be 
affected on any  Agreement or obligation until approved by th e Council of Ministers.  In conclusion, 
he added that the Kingdom of Saudi Arabia w ould do whatever was required, whether through 
Royal Decree, Council of Ministers Decree or Ministerial Orders to bring its trade regime into conformity with its WTO obligations. 
64. In response to a question from the members of  the Working Party, the representative of 
Saudi Arabia confirmed that, under Article 70 of  the Basic Law of Government (Royal Decree 
No. A/90 of 27.8.1412H (1 March 1992)), Royal D ecrees were the legal instrument by which 
international  Agreements and treaties were implemented in to domestic law.  In accordance with the 
lawmaking process described above, international  Agreements and treaties were first referred to the 
Council of Ministers and the Consultative Council for approval.  Upon receiving approval of both 
bodies the relevant  Agreement or treaty became part of domestic law by means of Royal Decree.  
International  Agreements and treaties did not take preced ence over other provisions of domestic law, 
nor did other provisions of domestic law take precedence over international  Agreements or treaties.  WT/ACC/SPEC/SAU/4/Rev.4 
Page 28  
 
 Rather, conflicts or inconsis tencies between international  Agreements and treaties and other 
provisions of domestic law were resolved in accord ance with the same rules of interpretation that 
were applied to domestic legislation.  In response to a question from a member of the Working Party, 
the representative further noted that the rules of in terpretation were as follows:  (i) absent a statement 
to the contrary in domestic law, an internati onal agreement could not override contrary domestic 
legislation (e.g., the prohibition on the importation, sale or consumption of alcoholic beverages could 
not be supplanted by an international agreement); (ii) given an apparent inconsistency between an 
international agreement and domestic law, the text of each would be interpreted so as to avoid any 
conflict; (iii) where the text did not resolve the c onflict, recourse could be had to the intent and 
purpose of the agreement and the law. 
65. In response to a question from members of the Working Party, the representative of 
Saudi Arabia stated trade policies were implemente d by means of the enactment of an appropriate 
new law (nizam).  As part of the lawmaking process, the draft legislation was prepared by the relevant 
government agency (e.g., the Ministry of Commerce and Industry), which then submitted it to the Council of Ministers and the Consultative Council for comments.  Both bodies reviewed the draft law 
and either agreed the text put forward by the gove rnment agency or proposed changes to it.  If the 
Council of Ministers and the Consultative Council had divergent views of the draft legislation then 
those views were communicated to the King who resolved the matter by deciding which view should prevail.  The final text of the legislation w as then promulgated in the official gazette ( Umm Al-Qura ).  
The representative of Saudi Arabia further explained that a new law would originate in the ministry 
having authority over the subject matter of the law.  The ministry would submit the draft law to the Council of Ministers, which would conduct an initia l review.  If the Council approved the draft, it 
would send the draft to the Bureau of Experts.  The Bureau of Experts would review the draft to 
ensure that the draft would accomplish its purpose and comply with international legal and/or 
technical norms.  If the Bureau approved the draft law, it would submit it to the Shoura Council, 
Saudi Arabia's consultative legislative council.  The role of the Shoura in this process was to ensure 
the compatibility of the draft law with internationa l legal norms and with Saudi Arabia's local and 
international policies.  The Shoura Council would then  send the law to the Council of Ministers for its 
final approval.  Last, the Council of Ministers, ha ving approved the draft law, would submit it to the 
King for his assent.  After the King issued a Royal Decree enacting the law, the law was returned to 
the ministry that drafted the law.  Subject to th e law and the Royal Decree, the ministry would be 
responsible for all aspects of implementation, incl uding the promulgation of implementing regulations 
required for implementation within the time period sp ecified in the law and the Royal Decree and, in 
some cases where necessary, additional laws (subject to approval of the Council of Ministers).  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 29 
 
 
 66. The representative of Saudi Arabia further clar ified that a law itself specified the date on 
which it took effect (typically on a certain date afte r publication in the official gazette).  It also 
specified the agency or agencies that were responsible for drafting and approving the implementing 
regulations.  The purpose of the implementing regulations was to set out the procedural and administrative details by which the provisions of th e new law were implemented.  They were drafted 
by the relevant government agency and published in th e official gazette.  A function of the legislative 
process was to identify potential conflicts and in consistencies between the proposed new law and 
other applicable laws.  Therefore the new law, when  finally promulgated, generally dealt with such 
matters.  An old law that clearly conflicted with  the new law was repealed.  Occasionally laws and 
implementing regulations required further interpre tation.  These interpretations took the form of 
ministerial decisions or directives and were gene rally limited to matters that were not legally 
significant.  The representative of Saudi Arabia confirmed that the process of lawmaking and 
regulation preparation and drafting that applied to  the implementation of trade policies was the same 
process that applied to the implementation of purely domestic policies. 
67. The representative of Saudi Arabia described th e role and functions of the following cabinet-
level councils and authorities: 
i. The Supreme Economic Council (SEC) w as established in August 1999 to evaluate 
economic, trade, industrial, agricultural and labour policies to assess their 
effectiveness.  The SEC also oversaw economic restructuring and privatization aimed 
at opening Saudi markets and attracting investment. 
ii. The Saudi Arabian General Investment Authority (SAGIA) was created to further 
promote foreign investment and serve the business community as a one-stop shop. 
iii. The Supreme Commission of Tourism was established to promote the tourism sector. iv. The Food and Drug Authority was estab lished to secure consumer protection 
regarding the safe use of all foodstuffs, pharmaceuticals and medical equipment. 
68. The representative of Saudi Arabia stated that the role and functions of different Ministries 
and agencies concerned with WTO issues was as follows: 
i. The Ministry of Commerce and Industry was the principal government agency 
concerned with formulation and conduct of tr ade policies, and with the development, 
support and encouragement of commercial activities within the Kingdom.  It implemented the laws and regulations relati ng to trade, in particular the Companies 
Law, the Law on Commercial Registration and the Law on Commercial Agencies.  The Ministry also formulated policies and procedures for the development and promotion of industries.  It was respons ible, through the Saudi Arabian Standards 
Organization (SASO), for standards and tec hnical regulations and for ensuring that 
imported and domestically produced goods meet the standards.  The Ministry was also responsible for applying the Trade Marks Law. 
ii. The Ministry of Finance was concerned with formulation and conduct of financial 
and fiscal policies and with international ec onomic issues.  It was also the parent WT/ACC/SPEC/SAU/4/Rev.4 
Page 30  
 
 Ministry of the Department of Customs, which was charged with the responsibility of 
implementing the Customs Law and the Customs Tariff of Saudi Arabia. 
iii. The Ministry of Petroleum and Mineral Resources formulated and implemented the 
oil policies of the Kingdom and supervised concessions in the oil and mining sectors. 
iv. The Ministry of Agriculture was the principal government body responsible for the 
development and encouragement of the agricultural sector in Saudi Arabia.  It 
formulated and implemented agricultural policies and was responsible for matters 
relating to sanitary and phytosanitary measures. 
v. The Ministry of Health was responsible for supervising the health industry and for 
matters related to the import and sale of medicines and medical supplies. 
vi. The Ministry of Information and Culture was responsible for implementation of the 
Copyright Law and matters relating thereto. 
vii. The Saudi Arabian Standards Orga nization (SASO) established and approved 
voluntary standards and mandatory tec hnical regulations for imported and 
domestically produced goods.  It was also concerned with the sampling, inspection 
and testing of goods to ensure conformity with standards. 
viii. The Saudi Arabian Monetary Agency  (SAMA) acted as the central bank of 
Saudi Arabia.  It was responsible for mone tary and exchange rate policies and the 
supervision of banks. 
69. Members of the Working Party inquired as to the role of the Chamber of Commerce in 
Saudi Arabia.  In response, the representative of Saudi Arabia reported that each of the principal 
commercial centres in Saudi Arabia had its own Ch amber of Commerce.  Each local Chamber was a 
private association to which local businesses (incl uding traders, professionals and industrialists) 
belonged.  The Chambers funded their operations by means of annual membership subscriptions, 
which varied depending on the size of the member  business.  Hence, larger businesses paid higher 
membership subscriptions than smaller ones; du es ranged from SAR 330/year (smaller retail stores, 
e.g., a grocery which was not part of a chain) to SAR 900 (small businesses, e.g., a real estate broker) 
to SAR 2,100 (medium-sized businesses, e.g., partne rships and limited liability companies with a 
registered capital of less that SAR 5 million) to SAR 5,200/year (the largest businesses, e.g., joint 
stock companies, banks and limited liability compani es with a registered capital of SAR 5 million or 
more).  Apart from these dues, there were no other Chamber obligations.  Each business (apart very 
small businesses) was required to produce evidence of  Chamber of Commerce membership as part of 
the process of obtaining Commercial Registration.  Commercial Registration was required for the 
reason that it allowed the government to establish th e true identity of the business for the purposes of 
enforcing business-related laws; it a llowed the government to ensure that it would track each business, 
hold the correct businesses accountable and, if appropria te, prosecute it.  Membership in the Chamber 
was required because the Chamber, by its nature, imposed peer pressure wh ich increased compliance 
with the laws.   
70. The representative of Saudi Arabia further re ported that each Chamber was governed by a 
Board of Directors, which was largely elected by  the membership.  The activities of the Chambers  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 31 
 
 
 were supervised in part by the Ministry of Co mmerce and Industry, which also had the right to 
appoint representatives to the Boards of Directors.  He stated that the Chamber performs a valuable 
notarial service for members by authenticating signatur es.  He further stated that membership in the 
Chamber was required because it was a pre-requisite  to obtaining commercial registration from the 
Ministry of Commerce and Industry and that an app lication for membership, therefore, could not be 
refused.  Annual dues for the Chamber varied with the size of the business and Members had the right 
to participate in the organization and administration of the Chamber by means of voting for 
membership in its governing body.  He further stated  that "commercial centres" referred to centres of 
population within the Kingdom.  There were curren tly 14 Chambers in the Kingdom, located in the 
following cities:  Abha, Ahasa, Dammam, Hail, Je ddah, Majama, Makkah, Medina, Najran, Qassim, 
Quariyat, Riyadh, Tabuk and Taif.  
71. In response to questions from members of the Working Party, the representative of 
Saudi Arabia stated that the primary legal basis fo r the trade regime of Saudi Arabia was provided by 
the following laws, decrees and implementing measures:  
i. Companies Law and Implementing Regulations 
ii. Professional Companies Law and Implementing Regulations iii. Commercial Register Law and Implementing Regulations iv. Commercial Agencies Law and  Implementing Regulations v. Trade Names Law and Implementing Regulations 
vi. Negotiable Instruments Law 
vii. Trade Marks Law and Implementing Regulations viii. Composition with Creditors Law ix. Combat of Commercial Fraud Law and Implementing Regulations x. Commercial Statements Law xi. Import Licensing Guide 
xii. Import Licensing Procedures 
xiii. Patents of Inventions La w and Implementing Regulations 
xiv. GCC Common Customs Law and Implementing Regulations 
72. The Saudi representative reported that a complete  list of the principal laws and regulations 
that form the basis of the Saudi trade regime a ppears at paragraph 3, the Documentation section, 
above. 
73. The representative of Saudi Arabia stated that  Saudi Arabia provided for a wide range of 
judicial, arbitral and administrative procedures with respect to trade matters.  An aggrieved party had 
a final right of appeal against all administrative decisions in matters of trade to a judicial body known as the Board of Grievances.  The first channel of  redress was to appeal administrative bodies.  For 
example, with regard to matters under the ju risdiction of the Customs Department, such as 
classification and valuation, there was an administra tive system for appeal against rulings.  Disputes WT/ACC/SPEC/SAU/4/Rev.4 
Page 32  
 
 pertaining to Article VII related to valuation of goods for customs purposes were under the authority 
of the standing Committee within the Customs Department.  Similar dispute settlement systems had 
been established, for example, with regard to  sanitary and phytosanitary measures, licensing, 
standards, and intellectual property rights.  Mi nistries and/or Agencies involved had established 
internal standing committees of senior officials to  review initial administrative decisions.  All 
decisions made by these "standing Committees" could be  appealed to the head of the Ministry or 
Agency concerned. 
74. He further stated that if the decision under appeal  was maintained by the head of the Ministry 
or Agency concerned, these decisions were subj ect to appeal to the Board of Grievances under 
Article 8(a) of the Board of Grievances Law of 17.1.1402H (14 November 1981).  The Board of 
Grievances was an independent tribunal to wh ich appeals were made from all governmental 
administrative decisions, and addressed the obligati on in Article X:3 of the GATT 1994 to provide for 
a right of appeal of administrative decisions to an independent tribunal.  The jurisdiction of the Board 
included appeals against all administrative decisi ons of Government Departments and Government 
officials, and its decisions were binding on the government office concerned.  It was composed of a 
President, Vice-Presidents and Members.  The Preside nt was appointed by and reported to the King.  
The Vice-Presidents and Members were appointed by Royal Decree on the recommendation of the President.  The time frames for hearing of app eals and handing down of decisions depended on the 
volume of work with the Board and on the nature  of appeals.  Although there were no fixed time 
frames, the Board was required to supply to all pa rties to any appeal a judicial judgment which 
included the reasons for the decision.  The time required depended upon the complexity of the case and similar other factors.  Article (47) of the Board of Grievances Law provided for the publications 
of the judicial decisions. 
75. He also noted that the Board's decisions coul d be challenged and appealed to the Appeals 
Court (Scrutiny Commission) within the Board of Gr ievances, which would either confirm or reverse 
appealed decisions.  In all cases, the Appeal Co mmission's decisions were final and enforceable. 
76. The representative of Saudi Arabia confirmed th at from the date of accession, Saudi Arabia's 
laws would provide for the right to appeal ad ministrative rulings on matters subject to WTO 
provisions to an independent tri bunal in conformity with WTO obligations, including but not limited 
to Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment. 
77. In response to further questions, the representativ e of Saudi Arabia stated that Article 70 of 
the Basic Law of Government provided that international  Agreements entered into force as domestic 
laws following their ratification by Royal Decr ee and enactment by the Consultative Council and  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 33 
 
 
 Council of Ministers.  As a general rule, should Saudi Arabia's laws or other acts be found to 
contradict international treaties or  Agreements, Saudi Arabia would bring its laws or other acts into 
conformity with such treaties or  Agreements, and would respond quickly to instances in which 
inconsistencies were brought to the a ttention of Saudi officials.  He noted, however, that this principle 
did not apply in respect of fundamental religious rules and principles, such as prohibiting the consumption of alcohol and pork.  To bring its  Laws and Regulations into conformity with 
WTO  Agreements, Saudi Arabia had already enacted  or would enact Laws and amendments to 
existing Laws in relation to the vari ous substantive provisions of the WTO  Agreements, such as 
TRIPS, Customs Valuation, SPS, TBT, Import Licensing, including transparency provisions. 
78. The representative of Saudi Arabia confirmed that the Kingdom had acceded to the Vienna 
Convention on the Law of Treaties 1969 vide Council of Ministers' Resolution No. 165 of 24.6.1423H 
(1 September 2002). 
79. In response to questions from members of the Working Party, the representative of 
Saudi Arabia indicated the Ministry of Comme rce and Industry would continue to oversee and 
coordinate within the Saudi Government matters relating to the WTO, including implementation and 
interpretation issues. 
80. In response to questions from members of the Working Party, the representative of 
Saudi Arabia confirmed that only the central govern ment had authority over matters covered by the 
WTO  Agreements and that the central government was superior in authority to sub-central 
governments.  The authority of sub-central governme nts in Saudi Arabia, he noted, was quite limited 
in comparison to the situation in many countries.   For example, even as regards issues typically 
classified as local issues, e.g., local constructi on projects and water and sewage treatment, to the 
degree that sub-central governments had any role wh atsoever, the role was limited by and exercised 
within tight constraints set by the central government. 
81. The representative of Saudi Arabia confirmed that the provisions of the WTO  Agreement, 
including Saudi Arabia's Protocol, would be app lied by the central government uniformly throughout 
Saudi Arabia's customs territory and other terr itories under Saudi Arabia's control, including in 
regions engaging in border trade or frontier traffi c, special economic zones, and other areas where 
special regimes for tariffs, taxes and regulations were  established.  He added that when apprised by a 
WTO Member of a situation where WTO provisions were not properly being applied in a uniform 
manner, central authorities would act to enforce WTO provisions without requiring affected parties to petition through the Courts.  The Working Party took note of these commitments. WT/ACC/SPEC/SAU/4/Rev.4 
Page 34  
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 82. The representative of Saudi Arabia noted that  members of the Working Party had, in 
connection with trading rights (the right to import and export), requested an explanation of:  (i) the 
requirements for approval; (ii) the grounds for di sapproval; and (iii) whether a license was granted 
automatically upon satisfaction of (i).  The representa tive of Saudi Arabia stated firstly, by way of 
clarification, that Saudi businesses and foreign comp anies with branches or offices in Saudi Arabia 
must apply for Commercial Registration under the Law on Commercial Registration described above.  
This was a general requirement which applied to all businesses (except for the smallest) irrespective 
of whether they were engaged in import or expor t trade.  Commercial Registration was largely a 
routine procedure that involved the completion of an  application form, the payment of a fee and the 
submission of documentation to the Ministry of Commerce and Industry.  He further noted that the 
requirements described below applied both to fore ign and Saudi businesses, and confirmed that any 
legal entity or natural person had the right to e ngage in importation or exportation regardless of 
Commercial Registration – although if a legal entity or  natural person wished to engage in importation 
or exportation as a trading activity (to then distribute and/or sell the goods), that  legal entity or natural 
person was required to be commercially registered.   
83. At a later state the representative of Saudi Arabia again confirmed that there were no 
substantive requirements to register with the Mini stry of Commerce and Industry in order to import, 
although there was a requirement to obtain Commerc ial Registration for the carrying on of business, 
whether manufacturing, retailing or trading.  The re presentative stated that he understood an "importer 
of record" to be a person who wishes to import goods into Saudi Arabia, but has no presence or Commercial Registration in the Kingdom and does not wish to sell or distribute the goods in the Kingdom.  Such persons, he stated, were not subject to the minimum investment requirements set 
forth in Paragraph 45 of the Working Party Report; they did not need to invest in the Kingdom to act 
as the importer of record, nor did they need to join the Chamber of Commerce or obtain Commercial 
Registration.  For other foreign businesses, to obtai n a Commercial Registration for the carrying on of 
business in Saudi Arabia, they had to first obtain a foreign investment license from the Saudi Arabian 
General Investment Authority (SAGIA).  Upon receiving a foreign investment license from SAGIA, 
foreign businesses would apply to obtain a commercial registration from the Ministry of Commerce and Industry.  The rules and procedures for obtaini ng commercial registration applied to all entities, 
whether or not importer of record and were set forth in the Law on Commercial Registration issued 
pursuant to Royal Decree No. M/1 of 21.2.1416H (19 July 1995) and the Law on Commercial Names  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 35 
 
 
 issued pursuant to Royal Decree No. M/15 of 12.8.1420H (20 November 1999) and the rules and 
regulations promulgated thereunder.  In respect of commercial registration, separate forms were to be 
filled in depending on the form of entity to be gi ven commercial registration.  The procedure in 
commercial registration further provided payment of a registration fee (for a registration valid for five 
years) of SAR 1,000 in case of establishments, SAR 4,000 in case of partnerships, SAR 6,000 in case of limited liability companies; and SAR 8,000 in case of  joint stock companies.  In the case of limited 
liability companies, draft articles of association we re required to be submitted to the Ministry of 
Commerce and Industry for review.  Once such forms had been duly prepared, they were checked and 
authenticated by a notary public.  Having been si gned, authenticated and legalized, these documents 
were then published in the official gazette ( Umm Al-Qura ).  In the case of limited liability companies, 
after printing and formal signing of the articles of association before a notary public, such articles 
were submitted to the Ministry of Commerce and Industry and commercial registration was issued. 
84. The representative of Saudi Arabia also noted that "commercial registration" was a separate 
procedure and different from registration as a "co mmercial agent" (as discussed separately below).  
He further noted that registration as a commercia l agent was not necessary to obtain the right to 
import or export.  Any company, whether Saudi or foreign, which was commercially registered in the 
field of import trade could import goods without the need to get any further permission or authorization, except for items which required an import license or were otherwise subject to import 
restrictions or prohibitions.  No requirements applie d to the activity of importing (acting solely as the 
importer of record,), but a firm that wished to be legally eligible to import goods and then engage in 
business activity in the Kingdom (i.e., distribution a nd/or sale of the imported goods) should formally 
incorporate the activity of importing within its "scope  of business" clause of its articles of association.  
For example, he stated, a firm with a Commercial Registration for "furniture sales" was allowed to 
import furniture for the purpose of selling it and did not require an import license to do so. 
85. The representative of Saudi Arabia confirmed that the Ministry of Commerce and Industry 
had no discretion to deny Commercial Registrati on to a legitimate business, provided that the 
application form had been correctly complete d and was accompanied by the correct fee and 
supporting documentation.  A legitimate business was one whose contemplated activities did not 
contravene Saudi laws or regula tions (e.g., those prohibiting the production and distribution of pork 
products). 
86. The representative of Saudi Arabia confirmed that the Commercial Registration set out the 
scope of business activities of the registered entity.  A registered entity that wished to carry out 
activities not covered by its Commercial Registra tion could amend its articles of association to WT/ACC/SPEC/SAU/4/Rev.4 
Page 36  
 
 include the new activities and apply to the Minist ry of Commerce and Industry for its Commercial 
Registration to be amended so as to permit those new activities. 
87. In response to a question from a member of  the Working Party, the representative of 
Saudi Arabia stated that Saudi Arabian law perm itted a wide range of business entities, all of which 
were subject to the Law on Commercial Registra tion.  The forms of permitted business entities under 
the Law are: sole proprietorships (the most comm on form of business vehicle), general partnerships, 
limited partnerships, joint ventures, joint stock co mpanies, partnerships limited by shares, limited 
liability companies and professional companies.  The representative stated that the Law permitted 
every practical form of business entity; it was d esigned to cover all possible forms of business 
organization under law. 
88. The representative of Saudi Arabia informed th e Working Party that Commercial Registration 
was a distinct procedure from registration as a "Co mmercial Agent".  In Saudi Arabia "commercial 
agency" described a business activity in which a natural or legal person acted as the agent or 
distributor of a producer, typically a foreign producer.  The law governing the registration of Commercial Agents was set out in the Commerc ial Agencies Law (Royal Decree No. M/11 of 
20.2.1382H) and its Implementing Regulations (Min isterial Resolution No. 1897 of 24.5.1401H).   
89. In additional to having Saudi nationality, th e requirements for approval as a Commercial 
Agent under the above measures were:  (i) a Commercial Registration certificate giving commercial agency as one of the applicant's business activities;  (ii) a certificate from the Chamber of Commerce 
confirming that the applicant had paid his Chamber of Commerce subscriptions; and (iii) the 
submission of an application form and supporting documentation to the Ministry of Commerce and 
Industry, including a copy and a certified Arabic tran slation of the commercial agency or distribution 
contract which complied with the conditions set out  in the law.  The Saudi representative confirmed 
that the Ministry of Commerce and Industry had no discretion to deny registration of an entity as a 
Commercial Agent provided that the above requireme nts were satisfied and a registration fee was 
paid.  
90. In essence, the representative of Saudi Arabia reported, the distinction between Commercial 
Registration and registration as a Commercial Ag ent was that Commercial Registration was an 
essential requirement to the conduct of any signi ficant business activity in Saudi Arabia whereas 
Commercial Agency was required only in relati on to a particular type of business activity. 
91. The representative of Saudi Arabia noted that the Commercial Agencies Law did not require a 
foreign manufacturer/supplier to appoint an agent or  distributor in Saudi Arabia.  Any company,  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 37 
 
 
 whether Saudi or foreign, which was commercially re gistered to trade, could import goods without the 
need to get any further permission or authorizati on, except for the few items which required an import 
license as set forth in Annex E. 
92. In response to a question, the representative of Saudi Arabia stated that foreign companies 
holding commercial registration in Saudi Arabia c ould directly import goods, for their own use or as 
inputs, without going through a commercial agent. 
93. In response to a specific question, the repr esentative of Saudi Arabia confirmed that no 
special or unique "activity license" requirements ex isted for foreign or domestic persons or firms 
engaging in importing or exporting goods , in contrast to the distributing of goods.  He confirmed that 
individuals and firms were not restricted in their ability to import or export most goods except as listed in Annexes E, G, H and K to the Report a nd as described in their scope of business or their 
registration, and that they could easily change th eir registration to allow for trade.  He further 
confirmed that there were no restrictions, such as capital or nationality requirements, on firms wishing 
to engage in foreign trade, and that the criteria fo r registration were published in the official gazette 
and generally applicable to all.  In other words, the minimum capitalization and Commercial 
Registration requirements were not necessary either to become an importer of record or to export 
goods from Saudi Arabia (an entity outside of Saudi  Arabia was free to order and receive goods from 
Saudi Arabia).  He stated that there were, howev er, minimum capital requirements for investments, as 
set out in Paragraph 45 of the Working Party Report.  
94. In response to specific questions, the representativ e of Saudi Arabia recognized the distinction 
drawn in the WTO between the right to import and export under the GATT and the right, under the 
GATS, to provide services such as distribution and transportation, with respect to imported goods.  Saudi Arabia would, in implementing its obligati ons under GATT 1994, ensure that the relevant laws, 
regulations and requirements permit foreign firms to re gister strictly to engage in importation without 
limitation on equity or requirement to invest in Saudi Arabia.  Commercial distribution in 
Saudi Arabia of imports as well as domestically pr oduced goods would remain subject to the current 
requirements for commercial registration under the re levant laws, and to the Kingdom's commitments 
under the GATS.  Moreover, Saudi Arabia maintained  the right to require importers that were not 
registered to engage in commercial distribution to provide information in their customs document 
regarding the further disposition of th e goods, once they entered Saudi Arabia. 
95. The representative of Saudi Arabia said that Saudi  Arabia's requirements on the right to trade 
would not contradict Articles III, VIII and XI of  GATT 1994.  The representative of Saudi Arabia 
confirmed that there would be no restrictions on the right of foreign and domestic individuals and WT/ACC/SPEC/SAU/4/Rev.4 
Page 38  
 
 enterprises to import and export most goods to and from Saudi Arabia, except as provided in 
WTO  Agreement, and for goods listed at Annexes E, G, H and K to the Report.  Saudi Arabia 
emphasized that foreign enterprises and individua ls had to comply with all WTO-consistent 
requirements related to importing and exporting, su ch as those concerning import licensing, TBT and 
SPS.  However, foreign enterprises and individuals w ould not have the right to distribute goods within 
Saudi Arabia, as providing distribution services would be done in accordance with Saudi Arabia's 
Schedule of Commitments on Services.  The representative of Saudi Arabia confirmed that 
individuals and firms were not restricted in thei r registered scope of business and the criteria for 
registration of companies in Saudi Arabia were ge nerally applicable and published in the Official 
Gazette.  At a later stage he confirmed that , although a foreign owned enterprise (whether 
commercially registered or not) could not act as a commercial agent, i.e., distribute goods on its own 
behalf,  it could engage a Saudi Commercial agent (an independent Saudi person) to do so.  He further 
clarified that the agent had to be an independe nt Saudi person; hiring a Saudi as an employee and 
paying him a salary to perform this function was not permitted. 
96. The representative of Saudi Arabia confirmed that the commitment on trading rights had been 
given in all seriousness and in good faith and that, to  fulfil this commitment, Saudi Arabia would, as 
necessary, review and amend its laws, including the Law on Import Licensing Procedures.   
97. The representative of Saudi Arabia confirmed that from the date of accession Saudi Arabia 
would ensure that its laws and re gulations relating to the right to trade in goods and all fees, charges 
or taxes levied on such rights would be in fu ll conformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and its commitments in its Schedule on 
Services, and that it would also implement such la ws and regulations in full conformity with these 
obligations.  The Working Party took note of this commitment. 
A. IMPORT REGULATION - Import Regime 
98. In response to a specific question, the repr esentative of Saudi Arabia stated that the 
application of secondary and tertiary boycotts ha d been terminated by the Council of Ministers 
Decision No. (5) of 13 June 1995. 
- Customs Tariff 
99. The representative of Saudi Arabia informed members of the Working Party that, according 
to Article 20 of the Basic Law of Government, the authority for setting customs tariffs and for any  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 39 
 
 
 changes thereto, and for levying any surcharges, rests with the Council of Ministers.  Imposition, 
amendment or abrogation of customs tariffs requires issuance of a Decree by the Council of Ministers 
that is endorsed by a Royal Decree. 
100. The representative stated that Saudi Arabia  used HS 2002 for classification of goods for 
customs purposes.  There were 7,177 tariff lines at the 8-digit level.  The first six digits corresponded 
to the HS while the last two digits were specific to Saudi Arabia. 
101. The representative of Saudi Arabia said that cu stoms tariff rates of Saudi Arabia had been 
declining.  When Saudi Arabia applied for accession in 1993, about 75 per cent of its tariff lines were 
subject to tariffs of 12 per cent, while about 6 per cent of its tariff lines carried duties of 20 per cent or 
50 per cent.  Since 1 January 2003, Saudi Arabia ha d applied the GCC common external tariff within 
the framework of the GCC Customs Union, pursuant to Royal Decree No. 104 of 20.4.1423 
(December 2002).  The representative reported that, later, Saudi Arabia had implemented Royal 
Decree No. 40 of 12.2.1424, pursuant to GCC rules allowing members to maintain tariff rates for 
some sensitive items outside of the common external GCC tariff structure.  More than 85 per cent of 
the tariff lines carried duties of 0 or 5 per cent.  Of the remaining (roughly) 14 per cent of the lines, 
7 per cent carried duties of 12 per cent, 6 per cent carried duties of 20 per cent and 20 tariff lines (i.e., 
tobacco and tobacco-related products) carried duties of  100 per cent.  In response to a question from a 
member of the Working Party, the representative not ed that, for a transition period of three years, 
these items would not be aligned in the GCC external tariff; they would be aligned after this period, 
per the agreement reached by the GCC member states.   Imports of the remaining 70 lines (i.e., alcohol 
and pork) were completely out of the GCC regime ; they were banned for religious reasons.  In 
response to a question from a member of the Working Party, he said that duties were applied on CIF basis. 
102.  [Following the completion of bilateral nego tiations with WTO Members, Saudi Arabia's 
Schedule of Concessions and Commitments on Goods will be reproduced in Part I of the Annex to the 
Protocol of Accession of Saudi Arabia.] 
- Tariff Rate Quotas and Tariff Exemptions 
103. In response to questions raised by members of the Working Party, the representative of 
Saudi Arabia stated that Saudi Arabia did not appl y tariff rate quotas and had no intention to do so in 
the future, except as might be permitted under Article XIX of the GATT 1994 and the WTO  Agreement on Safeguards. WT/ACC/SPEC/SAU/4/Rev.4 
Page 40  
 
 104. The representative of Saudi Arabia further stated  that Section VIII, Articles 98 to 105 of the 
Common Customs Law of the GCC States, adopted 27-29 November 1999 (implemented from 2002), 
provided for the following tariff exemptions: 
i. Imports by diplomatic missions and by diplomats. 
ii. Imports of arms, ammunition, military equipment and other materials by military 
forces and by internal security forces. 
iii. Imports by philanthropic societies. 
iv. Goods exported or re-expor ted from Saudi Arabia and subsequently returned to 
Saudi Arabia (Returned Goods). 
v. Personal effects and household items  imported as passenger's baggage. 
105. In response to a question from a member of th e Working Party, the representative of Saudi 
Arabia stated that the tariffs were not suspended for imports by the monarchy or by the government 
for its own use.  He further stated that tariffs for imports for religious purposes, per se, were not 
suspended.  However, where a religious entity w as registered as a charity with the government and 
imported goods for the purpose of providing services, on a non-profit basis, for "human, social, 
educational, scientific or religious fields or any other charitable purpose" that was not for profit, the 
tariff would be suspended, pursuant to Articles 22-25 of the Rules of Implementation of the GCC Common Customs Law.  In response to a questi on from a member of the Working Party, the 
representative stated that the GCC Common Customs Law contained no provision for temporary 
suspension of customs duties for reasons such as national emergency. 
106. The representative of Saudi Arabia stated that Saudi Arabia would administer any tariff rate 
quota or tariff exemptions in conformity with the requirements of the WTO Agreement, in particular 
Articles I, II, VIII, and XIII of the GATT 1994 and the Agreement on Import Licensing Procedures.  
The Working Party took note of this commitment.   
- Other Duties and Charges 
107. The representative of Saudi Arabia stated that  Saudi Arabia was applying "other duties and 
charges" within the meaning of Article II:1(b) of the GATT 1994 on 22 tariff lines in HS Nos. 2401, 2402 and 2403, which had been shown in Saudi Ar abia's revised offer of June 1999.  The 
representative of Saudi Arabia confirmed that ODCs on these 22 tariff lines would be bound at the 
rates shown in its June 1999 offer. 
108. He further confirmed that Saudi Arabia would not list other duties and charges in its Schedule 
of Concessions and Commitments on Goods under Artic le II:1(b) of the GATT 1994 on all other tariff 
lines, except the 22 tariff lines of HS Chapter 24 wh ich would be bound at the rates set forth in the  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 41 
 
 
 Schedule, and would bind such other duties and charg es at zero.  The Working Party took note of this 
commitment. 
- Fees and Charges Connected with Importation (for Services Rendered) 
109. The representative of Saudi Arabia stated that Saudi Arabia did not impose or charge any fees 
or charges for port clearance, customs processing, customs inspection or import or export licenses.  
He said that there was a small fee of SAR 20, which corresponded to the costs of the customs 
declaration form and use of Customs' computers to complete the declaration form.  He said that fees 
for loading, unloading and handling of import a nd export cargoes were charged by private-sector 
operators.  These fees were not imposed by the government.  The representative of Saudi Arabia 
stated that if goods were left in the Customs shed s and were not cleared after a delay of 13 days from 
the date of unloading, storage charges at the followi ng nominal rates were levied at the rate of SAR 20 
per ton per day.  However, no charges were levied if the delay was not caused by the importer, e.g., 
the delay in clearing the goods was due to:  
i. The Customs Department. 
ii. A natural disaster. iii. An official holiday. 
110. In response to questions from members of the Wo rking Party, the representative noted that the 
fees described in the section on Other Customs Fo rmalities also reflected the costs of services 
rendered and that, in accordance with Article V III:3 of the GATT 1994, Saudi Arabia would not 
impose substantial penalties for minor Customs breaches. 
111. One member of the Working Party asked regarding the provision of port services.  In 
response, the representative of Saudi Arabia reporte d that there presently were a number of companies 
operating in each of the Kingdom's ports.  The rate structure was set by each Port Authority, based on the services provided and the packaging of the goods being imported, e.g., the number and size of the containers involved.  He emphasized that the rates were not based on the value of the imports.  (A list 
of fees and charges for services rendered was attached at Annex F.) 
112. Members asked about fees imposed by Saudi Arabia for notarization or consularization of 
documents.  In response, the representative of Saudi Ar abia stated that authentication of certificates of 
origin and of invoices by Saudi consulates or by Chambers of Commerce was a general requirement 
imposed pursuant to Council of Ministers Order No. 5 dated 3.1.1406H (18.9.1985).  The fee 
collected by the Ministry of Foreign Affairs for consularization was nominal, at US$ 8 per document, 
regardless of the number of pages contained in th e document.  The practice had been necessary, he WT/ACC/SPEC/SAU/4/Rev.4 
Page 42  
 
 said, to combat commercial fraud and to ensure that  products prohibited for health reasons were not 
exported to Saudi Arabia. 
113. The representative of Saudi Arabia stated that the requirement for notarization or 
consularization of trade documents and associated f ees would be terminated by the date of accession.  
The Working Party took note of this commitment.   
114. A member of the Working Party asked Saudi Arabia to explain requirements that are applied 
to imports of non-unitized cargo such as rice, in partic ular the port levy fee that is applied to such 
cargo.  In response, the representative of Saudi Arabia  stated that this levy was applied to compensate 
for the labour costs involved in unloading containers  for customs inspection.  The Member further 
asked whether such inspection was necessary given mo re modern methods of inspection, and asked 
Saudi Arabia to review these requirements.  Th e representative of Saudi Arabia stated that 
Saudi Arabia would review its inspection system in the context of its ongoing process of 
modernization. 
115. The representative of Saudi Arabia confirmed th at any fees or charges on imports for services 
rendered would be in accordance with Article VIII of  the GATT 1994.  He further confirmed that the 
review of the inspection system would be completed within one year of the date of Saudi Arabia's 
accession to the WTO.  The Working Party took note of this commitment. 
- Import Licensing Systems  
116. In addition to information contained in th e Memorandum on the Foreign Trade Regime, the 
representative of Saudi Arabia provided a detaile d description of the import licensing procedures 
prevailing in Saudi Arabia in document WT/ACC/S AU/30, together with the justification for the 
measures in document WT/ACC/SAU/29/Add.3, as well as document WT/ACC/SAU/49, 53 and 56.  The representative of Saudi Arabia provided an Action Plan for the Implementation of the Import Licensing  Agreement in document WT/ACC/SAU/40, and Council of Ministers Decision No. 84 
in July 2000 and Decision No. 88 in July 2002.  The Import Licensing Law issued vide Council of 
Ministers Decision No. 88 of 6.4.1432H (July 2002) inco rporated into Saudi law the provisions of the 
WTO  Agreement on Import Licensing Procedures.  He further confirmed that some of the measures 
described in documentation submitted to the Working Party had been eliminated in order to conform 
with the requirements of the WTO Agreement, and that all measures remaining in place were 
described fully in Annexes E (List of Products Subject to Non-Automatic Import Licensing Requirements) and G (List of Banned Imports) to this Report.  He also noted that additional 
information could be obtained from the concerned de partment or division of the respective Ministry  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 43 
 
 
 or from the Information Centre of the Ministry.  The information could also be obtained from the 
Chamber of Commerce and Industry.  He also noted  that any person with a Commercial Registration 
(i.e., registration to do business), whether an individual or an entity, could apply for import license.  In 
reply to a question from a member of the Working Pa rty, the representative stated that the rules of 
procedure of the Board of Grievances provide that, if  a first appeal to the Minister is rejected, the 
reasons of rejection must be given.  
117. Some members of the Working Party requested information on the proportion of Saudi 
imports subject to licensing.  In response, the repr esentative of Saudi Arabia stated that no statistics 
were available to answer that question.  At a late r stage he provided the list of all products subject to 
import licensing in Annex E to this Report.  The lis t, he reported had been updated (as compared to 
the list at document WT/ACC/SAU/30) and would be  updated periodically to reflect developments 
within the Kingdom.  
118. The representative of Saudi Arabia confirmed that  in addition to the Ministry of Agriculture, 
Ministry of Commerce and Industry, Ministry of  Health, Ministry of Information and Culture, 
Ministry of Interior, and Ministry of Petroleum and Natural Resources, the Ministry of Education 
(Department of Museums and Archaeology), the Communications and Information Technology 
Commission (CITC), the National Commission for Wild Life Conservation and Development (NCWCD) and the Chivalry Club all had responsib ilities concerning the approval of import licenses.  
He also confirmed that there were no substantive requirements to register with the Ministry of 
Commerce and Industry in order to import, alt hough there was a requirement to obtain Commercial 
Registration for the carrying on of business, whether ma nufacturing, retailing, trading, or professional.  
Any company, whether Saudi or foreign, which w as commercially registered in the field of import 
trade could import goods without the need to get any further permission or authorization, except for items which required an import license.  In res ponse to a question from a member of the Working 
Party, the representative of Saudi Arabia reported th at wheat imports did not require permits from the 
GSFMO. 
119. Members of the Working Party noted, in particular, that Article 3.5(f) of the  Agreement on 
Import Licensing provided that ordinarily an import license must be granted within 30 days of receipt 
of a complete application.  These members noted that for some categories of goods, import licenses 
took longer than 30 days, in particular, radio co mmunication apparatus (one to two months) and 
network equipment (six to twelve months).  These members noted that the importation of such products was also subject to approval by the Fre quency Department of the Department of Post, 
Telegraph and Telephone.  In response, the representa tive of Saudi Arabia stated that the Frequency WT/ACC/SPEC/SAU/4/Rev.4 
Page 44  
 
 Department ordinarily completed its review in one week.  If a product met the frequency and 
necessary technical specifications, the Licensing Committ ee would ordinarily decide whether to grant 
an import license within 30 days.  In response to a question, the representative of Saudi Arabia stated 
that the new Saudi legislation on import licensing procedures clearly provided that import licenses must be issued within 30 days of applicati on; the 30-day limit applied to telecommunications 
equipment, as well.   
120. In response to further questions from a member of the Working Party regarding import 
licensing for telecommunication equipment, the representative of Saudi Arabia furnished the 
following information: 
(i) In accordance with Article 39 of the Telecommunication Act and Article 3 of the 
Rules and Procedures of Pleading before the Bureau of Grievances, the procedure of 
appeal for a license applicant would be 90 days, starting from the day the appeal was 
submitted to the Minister of Telecommunication and Information Technology.  The appeal must be submitted within 60 days of the applicant's notification of the 
rejection of his/her application.  If the 90 days expired with no response, the appeal 
would have been rejected.  A case could be filed before the Bureau of  Grievances to invalidate the Minister's 
decision within 60 days of the applicant's notification of the rejection of his/her 
appeal, or of the expiration of the 90 day period with no response.  The time for the 
Bureau of Grievances to issue a deci sion depended on the nature of each case. 
 
(ii) ITU standards were generic and covere d a wide range of specifications.  Saudi 
Standards were in line with the ITU Standa rds, and covered local requirements.   
(iii) The application for using radio tel ecommunications equipment would be processed 
within one month of submission. After a pproval of the application, a one-year grace 
period was provided within which the equi pment and assigned frequencies are to be 
brought into use.  The applicant was to notify the CITC upon use of the equipment 
and frequencies and then the relevant licen se would be issued.  The one-year period 
for bringing the equipment and frequencies into  use expired if the applicant failed to 
notify the CITC of bringing the equipment and frequencies into use within a year or, 
alternatively, request an extension from CITC.  Licenses for equipment and frequencies were renewable annually.  
121. He further reported that the application for using radio-communications equipment shall be 
processed within one month of application and th at the license to use the equipment and assigned 
frequencies must be exercised within a period of one year from approval.  The licence holder must 
notify the CITC of its use of the equipment and frequencies and the licence is renewable annually.  If 
the licence-holder were to fail to use the equipmen t and frequency within one year and to notify the 
CITC, the licence is considered to be cancelled.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 45 
 
 
 122. A member of the Working Party inquired as to the meaning of terms "wireless sets", 
frequency spectrum" and "security reasons" as used in Saudi Arabia's Guidelines to Import Licensing 
Procedures.  The representative of Saudi Arabia rep lied that the meanings of these terms were as per 
their ITU-R definitions. 
123. Members of the Working Party also asked Sa udi Arabia to clarify the grounds for, and 
particulars of, its import licensing regime for Chiv alry Club.  The representative from Saudi Arabia 
clarified that the regime was necessary to preserve a policy of great importance to the Kingdom.  The 
regime allowed the Saudi authorities to closely monitor the importation of non-Arabian horses to ensure the preservation of the blood lines of the Arab ian horse stock in Saudi Arabia.  He explained 
that, only by closely monitoring imports of live horses, could this be ensured.  In response to further 
questions, he noted that the importation of non- Arabian horses was not banned; the Chivalry Club 
would grant an import license for the importation of non-Arabian horses, after clearance by the 
Department of Animal and Plant Quarantine at the Mi nistry of Agriculture and Water, within 30 days 
of receipt of a complete application.  In this connection, some members of the Working Party requested additional information on the time limits for grant of other import licenses.   The 
representative reported that the applicable time limit w as 30 days.  He further reported that imports of 
horses, whether Arabian or non-Arabian, were not banned, but required a non-automatic import 
license 
124. In response to requests for information concerning the fees payable for obtaining an import 
license, the representative of Saudi Arabia stated th at there were no fees payable for the obtaining of 
an import license; Saudi ministries, including the Ministries of Agriculture, of Health and of Commerce and Industry, did not charge fees for import licensing procedures, including the application process.  Companies or persons wishing to import me rchandise for display at a trade fair were granted 
non-automatic import licenses that permitted the importation of all necessary samples, subject to the 
condition that the samples not be offered for direct sale. 
125. Some members of the Working Party requested information on the precise laws and 
regulations governing the time limits for issuing an import license.  In response, the representative of 
Saudi Arabia stated that Council of Ministers D ecision No. 88 of 6.4.1432H (July 2002) provided that 
the time limit for issuance of licenses was 30 days.  In  the event of an unsuccessful application for an 
import license, the person requesting the license could appeal the refusal to the Board of Grievances. 
126. A member of the Working Party asked about the timing of appeals of decisions by particular 
ministries to reject an application.  The Saudi representative confirmed that the entire procedure for 
appeal (including re-appeal) to the Ministry of Hea lth generally would take thirty working days to WT/ACC/SPEC/SAU/4/Rev.4 
Page 46  
 
 complete.  He further stated that the process of appeal at the Ministry of Commerce and Industry 
depended upon the completion of the licensing requirement s by the importer, i.e., if the importer were 
to complete the requirements, the license would be issued upon completion.  In the case of chemicals, 
he reported, the issuance process would take one day; for distillation equipment, the process would 
require from two to three days.  With regard to app eals to the Ministry of Agriculture, he stated that 
the process for the procedure of a ppeal, when the documents are correct and complete, requires only 
one day in most instances.  In response to a co mment by a member of the Working Party, the 
representative of Saudi Arabia confirmed that Council of Ministers Decision No. 88, 6.4.1432H, 
(July 2002) had established time limits for the processing of import licenses, as per Article 3.5(f) of the Agreement.  The limit was set at 30 days.    
127. In response to further requests for information,  the representative of Saudi Arabia noted that 
decisions to not grant an import license could first be appealed to the Minister of the concerned 
Ministry or to the head of the Agency concerned.  Any subsequent appeal would be to the Board of 
Grievances.  The Representative referred the member s to Paragraphs 68-70 regarding the composition 
and workings of the Board of Grievances. 
128. Some members of the Working Party asked whether petroleum and natural asphalt were 
subject to import licensing and requested that Saudi Arabia provide the justification pursuant to the 
relevant provisions of the WTO  Agreement for the maintenance of import licensing on those products.  
In response, the representative of Saudi Arabia st ated that no import licensing requirements currently 
existed for petroleum products, including asphalt.  Pricing of these imports was discussed in the 
section of this Report entitled "Pricing Policies."  
129. In response to questions from some members of the Working Party, the representative of 
Saudi Arabia stated that the import of fire ex tinguishers required a license from the Ministry of 
Interior.  He also noted that high-quality photocopiers required an import license from the Public 
Security Department of Forgery.  This was because such photocopiers could produce extremely high-
quality reproductions of documents, making it hard to differentiate between the original and the 
photocopies of paper currency and official documents , certificates, passports, maps and stamps.  He 
also noted that burglar or fire alarms required an import license to prevent misuse by criminals or 
terrorists.  For this reason import licenses were  only issued to government enterprises, public 
enterprises and firms or individuals who had a cont ract with the government to supply such security 
devices from inside the Kingdom or abroad.  So me members of the Working Party requested 
additional information on the justification for the import licensing requirements for security reasons.  
The representative of Saudi Arabia stated that those measures were necessary in order to prevent  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 47 
 
 
 import and the misuse of the items by persons who could pose a security risk.  The Ministry of the 
Interior was the agency that determined whether th e importer posed a security risk or not.  The list of 
items subject to import licensing was under review, and in this context he noted that the requirement 
for import licensing of fire fighting equipment had r ecently been lifted.  Fire-fighting equipment could 
now be imported without a license, following a cust oms examination to determine compliance with 
Saudi or international standards.  Concerning the re view, he noted that the review had been completed 
and was reflected in the Attachments.  He assure d the members of the Working Party that the list 
would continue to be reviewed periodically and the findings and d ecisions of each review would be 
published in the Official Gazette Umm al-Qura  and notified to the Council on Trade in Goods.   
130. Some members of the Working Party requested  information on the system for licensing the 
importation of agricultural machinery.  The represen tative of Saudi Arabia stated that the import 
licensing system for import of agricultural equipm ent had two purposes.  First, it was necessary to 
administer a system of subsidies paid to importers  of such equipment.  Second, the import license was 
required even if the importer did not intend to apply for a subsidy payment in order to ensure that the 
equipment was suitable for the Kingdom's environment. 
131. One member of the Working Party inquired as to the procedures for medical products, 
including pharmaceuticals.  In response, the represen tative of Saudi Arabia stated that no import 
license is required for approved pharmaceutical and me dical products, but that, as specified in Annex 
E, certain medical products were subject to non-auto matic import licensing.  In response to a further 
question, he confirmed that imports of medici ne for human use under HTS numbers 30.03 and 30.04 
were not subject to import licensing (as long as they had been approved for sale in Saudi Arabia), but that imports of medicines for veterinary use under those HTS numbers were subject to import 
licensing requirements, for the purposes of guaranteeing animal health and safety.  He further reported 
that pharmaceutical or medical products not previ ously approved are subject to an approval process 
designed to evaluate the product and ensure that the manufacturer follows good manufacturing 
practices (GMP).  The representative reported that th is process may take up to 18 months.  One of the 
Member's of the Working Party inquired as to whether KSA required pharmaceuticals to be registered in three EU countries in order to be registered in  Saudi Arabia.  The representative of Saudi Arabia 
reported that there was no such condition.  The process for companies wishing to market their 
pharmaceuticals in Saudi Arabia was as follows: 
i. submit a completed registration form for the company; 
ii. the Technical Committee would examine the form and attachments and, upon 
preliminary approval, would establish a inspection group for the company and the 
product; WT/ACC/SPEC/SAU/4/Rev.4 
Page 48  
 
 iii. the inspection group would visit the company and its factory to ensure that the 
company applied Good Manufacturing Practice; 
iv. the final decision of the Technical Committee would be made based on the report of 
the inspection group; and 
v. after approval, the company would be allowe d to obtain registration of its product(s). 
132. A member of the Working Party observed that commercial importers of chemicals required a 
license from the Ministry of Commerce and Industry whereas importation of chemicals for factories 
required a non-automatic import license from the Ministry of Industry and Electricity.  The member observed that the same chemicals were imported for both commercial and factory purposes and that the treatment for the two should not be different.  The representative of Saudi Arabia explained that 
the procedures had now been streamlined and that now the Ministry of Commerce and Industry was 
responsible for licenses for import of chemicals fo r company and factory use.  In response to a 
question from a member of the Working Party, th e representative of Saudi Arabia stated that 
document WT/ACC/SAU/30 would be updated a nd made public by the time of accession. 
133. A member of the Working Party asked Saudi Ar abia to explain its reasons for requiring non-
automatic import licenses for certain "distillation e quipment".  In response, the representative of 
Saudi Arabia stated that, in the past, importe d distillation equipment had been used to produce 
alcoholic beverages.  He explained that, as th e production of alcoholic beverages was prohibited 
under Saudi law (Shari'a), the Kingdom of Saudi Arab ia had decided to regulat e imports of distillation 
equipment to address the problem.  In reply to a question from a member of the Working Party, the 
representative of Saudi Arabia reported that th ere was no ban on the importation of distillation 
equipment and that importation required an import license from the Ministry of Commerce and Industry (and not from the Ministry of Industry and Electricity). 
134. A member of the Working Party inquired as to procedures regarding pesticides.  The 
representative of Saudi Arabia replied that non-au tomatic import licenses for pesticides are valid for 
six months (or for the remainder of the registra tion period) because this assists the Ministry of 
Agriculture in tracking the quantities of imports of potentially harmful substances, and for statistical 
tracking purposes.  Also, he reported, the system he lps ensure that importers' registration documents 
are valid during the period.  He further stated that, if an application is rejected for any reason, the 
applicant can appeal the decision to the Ministry , which will issue a license as soon as the applicant 
had satisfactorily completed the necessary documentation. 
135. A member of the Working Party asked for de tails regarding the licensing procedures for 
veterinary drugs, vaccines, feeds and domestic animals.  In response the representative of 
Saudi Arabia reported that, if the documents are correct and complete, the process for appeal and  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 49 
 
 
 issuance of the license by the Ministry of Agriculture  would take one day.  He further explained that 
the use of the term "feed additives" indicated th at the provision in question applied only to feed 
additives and did not apply to feeds, and that a license was required to import other domestic animal-
related products.  In response to a further questi on from a Member of the Working Party regarding 
import licensing for other domestic animal-related pr oducts, the representative of Saudi Arabia stated 
that Annex E contained the requested informa tion on all products subject to import licensing. 
136. A member of the Working Party asked Saudi Arab ia to clarify its regime as it applies to seeds 
and fertilizers.  In response, the representative of Saudi Arabia noted the process of the Ministry of 
Health's examination and approval of an applicati on for import license, or of an appeal (re-appeal), 
would take only one day where the documentation w as complete.  He reported that organizations 
permitted to provide a health certificate for seeds and fertilizers included the governmental authorities 
in the country of origin, as well as official laboratori es in the country of origin that had been approved 
by the Ministry of Agriculture.  Also, he reported, such certificates are issued by the Saudi Ministry of 
Health and are easily obtained where the products are free of pests and diseases.  Regarding the specifications used by SASO to determine whethe r to approve an application for import license for 
seeds, the representative confirmed that the list of  requirements had been submitted to the Working 
Party ("SASO Seed Specifications," attached to the Working Party Report at Annex H).  The time 
limits for import licenses were based on the need to ensure that the Ministry of Agriculture could 
ensure the validity of importers' registration documen ts and to allow Saudi authorities to track import 
levels of seeds and fertilizers for statistical purposes. 
137. In response to questions from some members of the Working Party, the representative of 
Saudi Arabia provided an Action Plan for the Implementation of the Import Licensing  Agreement in 
document WT/ACC/SAU/40.  At a later stage, he stated that the Action Plan had been fully 
implemented and that the Council of Ministers issued Decision No. 84 in July 2000 and Decision 
No. 88 in July 2002 to implement the WTO  Agreement on Import Licensing Procedures.  The Import 
Licensing Law issued vide Council of Ministers Decision No. 88 of 6.4.1432H (July 2002) incorporated into Saudi law the provisions of the WTO  Agreement on Import Licensing Procedures.  
The salient features of the new Law were:  
i. Persons, firms and institutions eligible to  make applications for import licenses are:  
(a) Saudi, foreign or joint venture compani es registered under Saudi laws; (b) natural 
persons registered in the Commercial Re gister; and (c) Saudi nationals and non-
Saudis holding residence permits, without commercial registration, provided they 
apply to import goods for their personal use. 
ii. Imports by categories (a) and (b) will be  limited to goods related to the scope of 
business inscribed in their commercial registration. WT/ACC/SPEC/SAU/4/Rev.4 
Page 50  
 
 iii. Applications for automatic import li censing may be submitted on any working day 
prior to the customs clearance of goods.  Li cense will be issued within a maximum of 
10 days form the date of application. 
iv. Applications for non-automatic import licences may be submitted within 21 days 
prior to the closing date of applications.  Licenses will be issued within a period of 
30 days from the date of application. 
v. Applications would not be rejected for minor variations in value or minor 
documentation errors. 
vi. License applicants have to approach onl y one administrative body.  If necessary, that 
body would coordinate with other administrative bodies. 
vii. Non-automatic licensing is required fo r imports subject to quantitative or other 
restrictions (Saudi Arabia applies no quotas). 
viii. Article 9 of the Law contains detailed provisions on allocation of quotas in line with 
the provisions of Article 3 of the  Agreement on Import Licensing Procedures 
(Saudi Arabia applies no quotas). 
ix. The Law requires publication in the Official Gazette of the amount of quotas and any 
changes thereto at least 30 days prior to the date of application (Saudi Arabia applies 
no quotas). 
x. In case of refusal of applications, th e reasons for refusal will be provided upon 
request of the applicant. 
xi. Right of appeal to the Head of the administrative body is provided for, within a 
period of 15 days from the date of refusal.  A further right of appeal to the Board of 
Grievances against the decision of the Head of the administrative body is provided for, within 30 days from the date of the decision. 
138. A member of the Working Party asked a furt her question regarding sub-section ii, above.  
With regard to this question, the representa tive referred the member to Paragraphs 88-89. 
139. Members of the Working Party asked Saudi Arab ia to provide a list of products subject to 
automatic and non-automatic import licensing require ments.  The representative of Saudi Arabia 
stated that Saudi Arabia did not subject any imports to automatic licensing; a list of imports subject to non-automatic licensing requirements was attached at  Annex E.  In addition, he confirmed that 
Saudi Arabia had appended to the Working Pa rty Report its response to the questionnaire 
"Information on Import Licensing Procedures." 
140. The representative of Saudi Arabia confirmed th at Saudi Arabia would, from the date of 
accession, eliminate and not introduce, re-introduce or apply non-tariff measures such as licensing, 
permits, prior authorization requirements, licen sing requirements and other restrictions having 
equivalent effect that cannot be ju stified under the provisions of the WTO  Agreement.  Any further 
amendments to the import licensing regime afte r accession would be fully in accordance with all 
relevant provisions of the WTO, including the  Agreement on Import Licensing Procedures.  The 
representative added that Saudi Arabia no longer requi red licensing for "milk for industrial use."  He 
further confirmed that any discretionary authority permitting officials of the Kingdom of Saudi Arabia 
to suspend imports and expor ts or licensing requirements that could suspend, ban, or otherwise restrict  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 51 
 
 
 the quantity of trade would be applied from the da te of accession in conformity with the requirements 
of the WTO, in particular Articles XI, XII, XIII, XVIII, XIX, XX and XXI of the GATT 1994, and 
the Agreements on Agriculture, Application of Sa nitary and Phytosanitary Measures, Import 
Licensing Procedures, Safeguards and Technical Barriers to Trade.  The Working Party took note of these commitments. 
- Quantitative Import Restrictions, Including Prohibitions and Quotas 
141. In response to questions from members of the Working Party, the representative of 
Saudi Arabia supplied details rega rding quantitative restrictions maintained in Saudi Arabia.  In 
addition to information contained in the Memorandum on the Foreign Trade Regime, the 
representative of Saudi Arabia provided a list of restricted (banned and controlled) items in 
Saudi Arabia, together with the justification fo r the measures in document WT/ACC/SAU/29/Add.3.  
This list was later updated by the lis t of banned imports attached at Annex G.  He also noted that 
additional information could be obtained from the c oncerned department or division of the respective 
Ministry or from the Information Centre of the Ministry.  The information could also be obtained from the Chamber of Commerce and Industry. 
142. Certain members of the Working Party requested further details on quantitative import 
restrictions, including those on certain imports of the following products:  long-life pasteurized milk in packing exceeding 1 litre (HS No. 0401.00.00); dates; rice; poultry, beef and lamb; offal; therapeutic medicines used in animal feed; le ntils; and certain tires.  The representative of 
Saudi Arabia noted that Saudi Arabia had listed all of the products to which it applied quantitative 
import restrictions, as well as the relevant HTS numbe rs and bases of the restrictions, at Annex G.  
Also, he said, and had taken a series of actions to comply with WTO provisions.  He provided the 
following responses to specific questions fro m the members of the Working Party: 
i. Long-Life Pasteurized Milk - Saudi Arab ia had removed the import ban and replaced 
it with a tariff. 
ii. Dates - Saudi Arabia had removed the import ban and replaced it with a tariff. 
iii. Rice from the United States - Saudi Arabia did not ban imports of rice from the 
United States. 
iv. Poultry, Beef and Lamb from the United St ates - Saudi Arabia did not ban imports of 
poultry, beef or lamb from the United States. 
v. Offal – The import of offal was permitted from all countries, except those with 
livestock with infectious diseases, pursuant to the Guidelines on the Import of Meat 
and Meat Products (Ministry of Comme rce and Industry Decision No. 123 of 
16.1.1422H, as amended by Ministry of Commerce and Industry Decision No. 1308 
of 27.5.1424H (27 July 2003)).  The latter Decision permitted imports of offal from 
countries with livestock free of infectious diseases and provided safeguards for such WT/ACC/SPEC/SAU/4/Rev.4 
Page 52  
 
 imports.  These measures were imposed to protect the health and safety of persons 
living in the Kingdom. 
vi. Therapeutic Medicines Used in Animal Feed - The Ministry of Agriculture was 
studying this issue to ensure the protection of domestic livestock. 
vii. Lentils from Australia - The ban on le ntils from Australia had been lifted after 
the Agreement between Saudi Arabia and Au stralia had been signed.  The ban, and 
the problem that occasioned it, had been th e subject of successful bilateral discussions 
between Saudi Arabia and Australia.  Saudi Arabia and Australia had agreed that the 
ban would be lifted and that Austra lia would certify future shipments. 
viii. Tires - The Ministry of Commerce and Industry had banned imports of certain tires 
following a series of fatal accidents in the United States caused by design and/or 
manufacturing issues.  The action had been ta ken due to public safet y concerns and in 
light of the fact that, given the climate of Saudi Arabia, similar accidents would be even more likely to occur ther e than in the United States.  The Ministry requested the 
investigation results from the concerned U.S. authorities and, in the meantime, took 
the prudential action of banning imports of t hose tires, pending review of the results.  
The ban was limited to those tire models, produced at specific facilities, which were most similar to the tires involved in the accidents.  The ban, therefore, applied only to the certain tire models and sizes, produced at  certain facilities.  The representative of 
Saudi Arabia noted that specific information was available on request. 
ix. Used and Retreaded Tires - Saudi Arabia had banned imports of used and retreaded 
tires to protect public safety.  Given the climate of Saudi Arabia, used and retreaded 
tires are particularly subject to failure and the safety of imports of these products could not be assured. 
143. The representative of Saudi Arabia confirmed th at Saudi Arabia would, from the date of 
accession, eliminate and not introduce, re-introduce or  apply quantitative restrictions on imports or 
other non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, 
licensing requirements and other restrictions having equivalent effect that cannot be justified under 
the provisions of the WTO  Agreement.  In response to a comme nt from a Member, the representative 
assured the Working Party that the list of banned imports would be reviewed on an ongoing basis to 
remove items where permitting importation would not compromise the legitimate objectives of the Kingdom.  Any further changes to Saudi law afte r accession would be fully in accordance with all 
relevant provisions of the WTO.  He further c onfirmed that any discretionary authority permitting 
officials of the Kingdom of Saudi Arabia to suspe nd imports and exports or otherwise restrict the 
quantity of trade would be applied from the date of accession in conformity with the requirements of 
the WTO, in particular Articles XI, XII, XIII, XVIII, XIX, XX and XXI of the GATT 1994, and 
the Agreements on Agriculture, Application of Sa nitary and Phytosanitary Measures, Import 
Licensing Procedures, Safeguards and Technical Barriers to Trade.  The Working Party took note of these commitments.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 53 
 
 
 - Customs Valuation 
144. Some members of the Working Party stated that  the system of valuation described in the 
Memorandum on the Foreign Trade Regime, in Annex 4 to document WT/ACC/SAU/4 and in 
document WT/ACC/SAU/18 did not appear to fully comply with certain requirements of the Customs Valuation  Agreement.  Some members requested that a number of areas of the customs valuation 
regime receive further elaboration so that they were in conformity with the WTO  Agreement on 
Implementation of Article VII of the GATT 1994, its Interpretative Notes, and relevant decisions and 
declarations.  In particular, members noted that in  addition to problems related to transparency or 
predictability, Saudi Arabia's valuation system relied on the "nearest equivalent value" as an 
alternative to transaction value.  This could give customs officials excessively wide discretion in their 
determination of customs value of the impor ted goods.  In response, the representative of 
Saudi Arabia stated that from the date of accession to the WTO, Saudi Arabia's system of Customs 
Valuation would be in full conformity with the provisions of the WTO  Agreement on Customs 
Valuation. 
145. Concerning Article 11 of the Customs Valuation  Agreement and the right of appeal to a 
judicial authority, the representative of Saudi Arabia  stated that appeal rights for a relevant person 
before an independent judicial body (i.e., the Bo ard of Grievances) was guaranteed by Royal Decree 
No. 190 of 16.12.1409H (19 July 1989).  This applied to the Customs Department.  The requirements 
of Article 12 concerning publication of laws, regula tions, and decisions were satisfied by provision 65 
of Royal Decree No. 425 of 5.3.1372H (22 November 1952), which required that such information be 
published in the official gazette Umm Al-Qura  along with all other government notices such as 
changes in rates of duty.  The representative of Sa udi Arabia noted that Article 26 of the Customs 
Valuation Law and Article 1.3 of the Rules of  Implementation of the Customs Valuation Law 
implemented Article 11 of the Customs Valuation  Agreement.  He confirmed that Decisions 3.1 and 
4.1 of the Customs Valuation Committee would be implemented through Ministerial Decision not 
later than the date of accession. 
146. Concerning the use of minimum values fo r customs purposes, the representative of 
Saudi Arabia stated that Saudi Arabia would wish  to make a reservation unde r paragraph 2 of Annex 
III to the  Agreement on Customs Valuation to continue the use of minimum values for a handful of 
products now under this system.  This would be necessary, because although Saudi Arabia would 
ultimately discontinue the system, it would need a transitional time for this purpose as it would have to study carefully the implications of the cha nge, and to devise procedures for checking practices 
which necessitate the use of minimum values.  Saudi  Arabia sought flexibility for two years from the WT/ACC/SPEC/SAU/4/Rev.4 
Page 54  
 
 date of accession to the WTO, but would take steps to attempt to remove the minimum values in one 
year.  Also, he stated, Saudi Arabia would undertake a careful study as soon as possible to devise 
procedures for discontinuing the minimum values alt ogether.  In response to questions from members 
of the Working Party, the representative of Saudi Arabia stated that Saudi Arabia was using and 
wished to continue using minimum values for the following products: 
HS 21.02 – Yeast; 
HS 40.11 – Tires; HS 57.01 – Carpets; HS 57.02 – Carpets; HS 60.01 – Blankets; and 
HS 85.25 – Mobile phones. 
147. In response to a question from a member of  the Working Party, the representative of 
Saudi Arabia stated that post-clearance audit is a sophisticated system with which Saudi Officials 
have no experience.  Therefore, he reported, it w ould take time to establish such a system and then 
train Saudi officials to properly administer it. 
148. Members asked the reason why Saudi Arabia was seeking a reservation to allow it to maintain 
minimum values for these products.  In response, the representative of Saudi Arabia cited the massive 
under-valuation of imports of these items.  Saudi Customs authorities have found it exceedingly 
difficult to check the undervaluation, despite the provisions of Article 17 of the Customs 
Valuation  Agreement and paragraph 6 of Annex III to this  Agreement.  Therefore, the reservation was 
necessary to assist Saudi authorities in this effort. 
149. The representative of Saudi Arabia also noted  that Saudi Arabia would seek a reservation 
under paragraphs 3 and 4 of Annex III to the Customs Valuation  Agreement.  The justification for that 
request was that, because the Customs Administration of Saudi Arabia had not reached the level of 
sophistication and expertise of developed countries, it would not be possible for it to apply the 
relevant provisions of the Customs Valuation  Agreement before that date.  The reservation would 
continue to be applicable for an indefinite period.  Following accession to the WTO, Saudi Arabia 
would undertake studies to determine if it was feasible to lift the reservations. 
150. At a later stage, the representative of Saudi  Arabia stated that the Action Plan on 
Implementation of the Customs Valuation Agreement circulated in document 
WT/ACC/SAU/38/Rev.1 had been completed, that Cu stoms officials and brokers had been trained 
and necessary laws and regulations on Customs Valuati on had been promulgated.  He confirmed that 
Saudi Arabia was able to implement the Customs Valuation  Agreement from the date of its accession 
to the WTO.  The representative of Saudi Arab ia submitted the Common Customs Law of the GCC  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 55 
 
 
 States and the Rules of Implementation, which contained the new WTO-consistent system of 
valuation.  Articles 26, 27 and 28 of the Law and Ar ticle 1 of the Rules of Implementation deal with 
customs valuation.  These were consistent with the provision of the Customs Valuation  Agreement.  
The representative said that Saudi Arabia had a pplied the new Common Customs Law and the Rules 
of Implementation with effect from 1 January 2003.  Saudi Arabia thus already had implemented the 
WTO Customs Valuation  Agreement, except in regard to the minimum values for the products noted 
above.  In response to a question from a member of  the Working Party regarding the consistency of 
the GCC Common Customs Law with WTO provisi ons, he stated that, wherever necessary, 
consistency with the WTO provisions would be achieved through Ministerial Decrees and Executive 
Orders issued by the Director General of Customs.   
151. The representative of Saudi Arabia stated that , with regard to Article 20 of the Customs 
Valuation  Agreement, the Kingdom of Saudi Arabia would implement the provisions of the 
WTO  Agreement on Implementation of Article VII of GATT 1994 (concerning customs valuation) in 
full from the date of accession to the WTO.  (Saudi Arabia would avail itself of a transition period for use of minimum values and would seek a reservation w ith regard to paragra phs 3 and 4 of Annex III 
of the Customs Valuation  Agreement, as noted above.)  In this regard, the Customs Law and 
implementing regulations fully reflected the require ments of Annex 1 of the Interpretative Notes of 
the Agreement on the Implementation of Article VII of the GATT 1994 and Decision 4.1 on the 
Valuation of Carrier Media Bearing Software for Data Processing Equipment.  He stated that all 
methods of valuation used would be in strict  conformity with those provided for in the 
WTO  Agreement on the Implementation of Article VII of the GATT 1994.  The Working Party took 
note of these commitments. 
- Rules of Origin 
152. The representative of Saudi Arabia stated that Sa udi Arabia did not have rules of origin for 
non-preferential trade but any future rules w ould be implemented in accordance with the 
WTO  Agreement on Rules of Origin.  In response to requests for information, the representative of 
the Kingdom of Saudi Arabia stated that certificates of origin attested by the Saudi Embassy or Consulate were necessary for importation of preferential trade items.  Where no Saudi Embassy or 
Consulate existed, such certificate would be attest ed by the Chambers of Commerce in the exporting 
country.  Other requirements included minimum content from within the preferential system.  From 1996, all imports of expensive tex tile products had been required to  have the origin of the goods 
printed or stamped thereon with indelible print.  A textile product was deemed to be "expensive" 
depending on an analysis of factors such as the qua lity the brand name, texture, design and the price WT/ACC/SPEC/SAU/4/Rev.4 
Page 56  
 
 relative to other fabrics.  This requirement was in troduced to protect consumers against misleading or 
deceptive practices.   
153. In response to a question from a member of th e Working Party, the representative of Saudi 
Arabia stated that the GCC does not contain its ow n rules of origin.  Rather, he stated, the GCC 
adopts the rules of international economic agreements  in force, i.e., the WTO Agreement on Rules of 
Origin and work there under. 
154. The representative of Saudi Arabia stated th at, from the date of accession, Saudi Arabia's 
preferential and non-preferential rules of origin would comply fully with the WTO  Agreement on 
Rules of Origin.  The representative of Saudi Arab ia confirmed that Saudi Arabia would frame its 
rules of origin and notify them to the Secretar iat immediately following accession.  The requirements 
of Article 2(h) and Annex II, Paragraph 3(d) of the  Agreement would also be fully implemented prior 
to accession.  He also stated that  in any event, from the date of accession, the Customs authorities 
would provide an assessment of the origin of the import upon the request of an exporter, importer or any person with a justifiable cause.  Any requ est for such an assessment would be accepted even 
before trade in the goods concerned began.  Any such assessment would be binding for three years.  
The Working Party took note of these commitments. 
- Other Customs Formalities 
155. Some members of the Working Party stated that consular authentication of customs 
documents in the country of export was a common practice in Saudi Arabia's region.  The 
representative of Saudi Arabia recalled the commitment given in Paragraph  107 in this regard.   
- Other Border Measures 
156. Members of the Working Party asked Saudi Arab ia to describe the new customs procedures, 
following the establishment of the GCC Customs Uni on, particularly as they related to goods first 
imported through other GCC member states.  One member of the Working Party observed that in 
some cases Saudi Arabia had turned back imports des tined for its market that first entered through and 
paid duties in other GCC member states.  The repr esentative of Saudi Arabia stated that all customs 
procedures (i.e., lodgement of the customs declaration, inspection of the goods, assessment and collection of customs duties) were conducted in th e first GCC member state where the goods entered 
from outside the GCC.  Goods destined for anothe r GCC member state, after completion of customs 
formalities in the first GCC state, were allowed to leave after affixing customs seals and accompanied 
by a copy of the customs import declaration show ing the value of the goods and payment of duty.   WT/ACC/SPEC/SAU/4/Rev.4 
 Page 57 
 
 
 There was no further assessment and collection of duty in  the country of final destination, with the 
exception of "sensitive" goods for which the remainder of  the tariff rate of the country of origin (e.g., 
tariff rate of Saudi Arabia minus 5 per cent) would be collected at entry.  The representative said that 
in the absence of specifics and details it was difficult to  say if and why the imports were turned back.  
It might be that the seals were not intact or the consignment was not accompanied by the customs 
declaration or, for example, the import of goods banned in Saudi Arabia but not in the GCC state of 
first importation (e.g., alcoholic beverages). 
157. Members of the Working Party asked Saudi Ar abia to describe how duties collected were 
apportioned to various GCC member states.  The repr esentative of Saudi Arabia explained that for the 
first three years following the establishment of the GCC Customs Union, the duties would be 
apportioned according to the final destination of th e goods.  The arrangement would be reviewed after 
the transitional period of three years. 
- Application of Internal Taxes to Imports 
158. A member of the Working Party asked whether Saudi Arabia would abide by the non-
discrimination provisions of Articles I and III of GATT 1994 in relation to internal taxation from the 
date of accession.  In response, the representative of Saudi Arabia stated that Saudi Arabia did not 
impose a value added tax (VAT), an excise tax or any other internal taxes or charges on either 
domestically produced or imported products.  
159. The representative of Saudi Arabia confirmed that , in case any internal taxes or charges were 
introduced, Saudi Arabia would apply these taxes in compliance with Articles I and III of the 
GATT 1994.  The Working Party took note of this commitment. 
- Preshipment Inspection  
160. Some members of the Working Party stated th at the ICCP program mentioned below operated 
as a PSI scheme.  They noted that although most of the requirements of the  Agreement on 
Preshipment Inspection appeared to have been comp lied with, some elements of the ICCP continued 
to raise concerns.   
161. In response to comments of various members of the Working Party regarding the role of the 
ICCP and preshipment inspection, the representativ e of Saudi Arabia reported that the ICCP was 
being phased out pursuant to Council of Minist ers Decision No. 213 of 3.8.1424H (30 September 
2003). WT/ACC/SPEC/SAU/4/Rev.4 
Page 58  
 
 162. In response to a request by members of the Wo rking Party, the representative of Saudi Arabia 
stated that a list of items subject to preshipment inspection had been attached to the Working Party 
Report at Annex I.  He further reported that this list was identical to the list at Annex J (products 
subject to mandatory inspection (ICCP)). 
163. The representative of Saudi Arabia stated that from the date of accession to the WTO 
Saudi Arabia would ensure that the requirements of the  Agreement on Preshipment Inspection were 
met in full.  He further confirmed that Saudi Arabia would ensure that the operations of any 
preshipment inspection companies retained by  Saudi Arabia met the requirements of the 
WTO  Agreement, including the establishment of charges and fees consistent with Article VIII of the 
GATT 1994, and would comply with the due process and transparency requirements of the WTO  Agreements, in particular Article X of the GATT 1994, and the  Agreement on the 
Implementation of Article VII of the GATT 1994.  The Working Party took note of these 
commitments. 
- Anti-Dumping, Countervailing duties, Safeguard regimes 
164. Some members of the Working Party raised concerns regarding the law for the Protection and 
Encouragement of National Industry.  The representativ e of Saudi Arabia stated that the law would be 
reviewed to ensure consistency with WTO re quirements by the date of accession at the latest .   
165. Members also noted that Saudi Arabia did not currently have any trade remedies legislation 
permitting the imposition either of anti-dumping or c ountervailing duties or of safeguard measures.  
Those members requested that Saudi Arabia undert ake to not impose such measures until appropriate 
WTO-consistent legislation had been enacted.  The representative of Saudi Arabia informed the 
Working Party that a trade remedies law, which includes provisions on Anti-Dumping, Countervailing and Safeguard Measures, had already been passed by the Shoura Council and had been submitted to 
the Council of Ministers.  The draft trade remedi es law was consistent with WTO provisions.  After 
the enactment of the Law through a Royal Decree, the Implementing Regulations would be issued.  
The Implementing Regulations also would be cons istent with the provisions of the relevant 
WTO  Agreements.  In response to questions from memb ers of the Working Party regarding to what 
imports the law would be applied, the representativ e of Saudi Arabia stated that the law was not 
adopted to target specific imports and would provi de remedies only in situations foreseen by the 
WTO  Agreements on Anti-Dumping, Countervailing Measures and Safeguards.  Copies of the Law 
and the Implementing Regulations would be made available after their issuance.
  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 59 
 
 
 166. The representative of Saudi Arabia said that Saudi Arabia would not apply any anti-dumping, 
countervailing or safeguard measures to impor ts from WTO Members until it had notified and 
implemented appropriate laws in confor mity with the provisions of the WTO  Agreements on the 
Implementation of Article VI, on Subsidies and Countervailing Measures and on Safeguards.  He 
confirmed that Saudi Arabia would ensure that such  legislation would be in full conformity with the 
relevant WTO provisions, including Articles VI and XIX of the GATT 1994 and the  Agreement on 
the Implementation of Article VI, the  Agreement on Subsidies and Countervailing Measures and 
the Agreement on Safeguards.  After such legisla tion was implemented, Saudi Arabia would only 
apply any antidumping duties, countervailing duties a nd safeguard measures in full conformity with 
the relevant WTO provisions.  The Working Party took note of these commitments. 
B. EXPORT REGULATIONS - Export restrictions 
167. Some members of the Working Party enquired whether the Kingdom of Saudi Arabia 
maintained any export controls.  In response, the representative of Saudi Arabia stated that 
Saudi Arabia maintained no export bans, except on some items such as date seedlings, breeding 
horses and subsidized wheat and wheat flour.  He in formed the Working Party that the legal bases for 
the bans were as set out in Annex K, i.e., GATT 1994 Article XX(a), (b), (d), (f) and (j).  Some 
members of the Working Party asked whether Saudi Ar abia intended to remove those bans prior to its 
accession to the WTO.  In response, the representative of  Saudi Arabia stated that there were no bans 
on the export of wheat and wheat flour, unless the wheat and wheat flour had been subsidized and the 
subsidy had not been repaid (i.e., if the subsid y had been returned to the government, the product 
could be exported).  He further added that Saudi Arabia banned the export of date seedlings and 
breeding horses because the local breeds and varieti es of these two items were pure and rare.  The 
representative indicated that a list of banned exports  was attached to the Working Party Report at 
Annex K; a list of exports subject to authorization /licensing was attached at Annex L.  He added that 
upon accession to the WTO, Saudi Arabia would do whatever was required under applicable WTO rules. 
168. A member of the Working Party commented that food imported into Saudi Arabia could not 
be re-exported without approval,  and receiving approval involved a time-consuming process.  The 
member requested that all prior approval require ments for the re-exportation of imported food be 
abolished by the date of accession.   WT/ACC/SPEC/SAU/4/Rev.4 
Page 60  
 
 169. The representative of Saudi Arabia confirmed that from the date of accession Saudi Arabia 
would ensure that its laws, regula tions and requirements relating to the right to export and all fees, 
charges or taxes levied on such rights would be in  full conformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws 
and regulations in full conformity with these oblig ations.  The representative of Saudi Arabia also 
confirmed that the requirement of approval to re -export food would be abolis hed as from the date of 
accession.  The re-export of subsidized food items w ould be subject to repayment of the amount of 
subsidy.  The Working Party took note of these commitments. 
170. The representative of Saudi Arabia also confirmed that any export control requirements 
remaining in place on the date of accession would be fully consistent with WTO provisions, including 
those contained in Articles XI, XVII, XX and XXI of the GATT 1994.  The Working Party took note 
of this commitment. 
- Export duties 
171. Some members of the Working Party requested information on export duties applied by 
Saudi Arabia.  Those members noted that the export duties applied by Saudi Arabia appeared to be 
imposed only for revenue purposes and would have trade distorting effects.  In response, the 
representative of Saudi Arabia stated that Article XI of the GATT 1994 expressly permitted the imposition of export duties, and did not restrict the right to impose such duties.  Export duties applied only to un-tanned hides and skins, falling under HS  Nos. 4101, 4102 and 4103.  The rate of export 
duty was SAR 2000/ton (roughly 20 per cent). 
- Export subsidies 
172. Members of the Working Party asked for information regarding export incentives and 
subsidies.  In response, the representative of Saudi Ar abia stated that Saudi Arabia neither maintained 
nor had any intention to provide any pr ohibited incentives or export subsidies. 
173. The representative of Saudi Arabia confirmed th at Saudi Arabia did not maintain subsidies 
including export subsidies that met the definition of  a prohibited subsidy, within the meaning of 
Article 3 of the  Agreement on Subsidies and Countervailing Measures and that it would not introduce 
such prohibited subsidies in the future.  Th e Working Party took note of this commitment.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 61 
 
 
 IV. INTERNAL POLICIES AFFECTING TRADE IN GOODS 
- Industrial Policy, Including Subsidies 174. In response to requests for information concer ning interest free loans provided by the Saudi 
Industrial Development Fund, the representative of Sa udi Arabia stated that wholly-owned foreign 
companies, like Saudi owned companies, were also eligible for a loan of up to 50 per cent of the 
project cost.  The representative of Saudi Arabia stated that the loan programme conducted by the 
Saudi Industrial Development Fund was entir ely consistent with the GATT 1994 and the 
WTO  Agreement on Subsidies and Countervailing Measures.  The loans were not contingent upon 
export performance nor were they contingent upon the use of domestic over imported goods.  The 
decision to provide a loan was made on the basis of the facts appropriate to that particular case within 
the parameters of the Saudi Industrial Development Fund Law.  Article 2 of the Law provided that the 
Fund could provide medium or long term loans to :  (1) new industrial enterprises established in 
Saudi Arabia; and (2) existing private industrial ente rprises for the extension of their activities or the 
replacement of their equipment and introduction of m odern methods thereto.  Article 4 of the Law 
stated that the Fund should carry out a full evaluation of the economic benefits of the enterprise 
required to be financed, taking into considera tion the soundness of its management in order to 
ascertain the benefit of the industrial enterprise fro m economic, financial and technical aspects.  In 
addition, the Fund was required to examine whethe r the financing required for the whole of the 
enterprise had been reasonably obtained and whether the volume of the Fund's aid represented a 
reasonable percentage of the total financing need s of the enterprise, and the Fund was required to 
obtain sufficient financial guarantees for the financing given by the Fund.   
175. In response to questions from members of the Working Party, the representative of 
Saudi Arabia stated that no WTO-inconsistent s upport or subsidies had been  approved or sanctioned 
for projects involving the creation of production cap acity for refined petroleum and petrochemical 
products. 
176. The representative of Saudi Arabia confirme d that any subsidy programmes would be 
administered in conformity with the  Agreement on Subsidies and Countervailing Measures and that 
all necessary information on programmes would be notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the  Agreement upon entry into force of 
Saudi Arabia's Protocol of Accession.  The Working Party took note of this commitment. WT/ACC/SPEC/SAU/4/Rev.4 
Page 62  
 
 - Technical Barriers to Trade 
177. The representative of Saudi Arabia provided th e Working Party with information on Saudi 
voluntary standards, Saudi mandatory standard s (technical regulations) and Saudi Arabia's 
International Conformity Certification Progra mme (ICCP) in documents WT/ACC/SAU/15, 16, 21, 
26, 29, 34, 36, 37 (Revised Comprehensive Pro cedures and Guidelines concerning the ICCP) and 41 
(Action Plan for the Implementation of the TBT  Agreement); WT/ACC/SAU/45 (ICCP); 
WT/ACC/SAU/48 (Communication on the SASO Technical Directive); and WT/ACC/SAU/52 
(Communication on the ICCP).  The representative of Saudi Arabia stated that, under Saudi law, "mandatory standard" was the same as the WTO term "technical regulation." 
- Description of Saudi Regime
 
178. The representative of Saudi Arabia further in formed members of the Working Party that 
Saudi Arabia had established and was implementing a TBT regime consistent with the provisions of 
the TBT  Agreement.  This had been done by issuing and implementing the SASO Technical Directive 
(having the force of law) on 18 July 2000; the Technical Directive was now being revised by SASO.  The major features of the system were: 
i. All SASO standards, mandatory standa rds (technical regulations) and conformity 
assessment procedures were designed to be fully compatible with the 
TBT Agreement. 
ii. SASO had established a single contact point for information (Enquiry Point) vide Part 
Four of the Technical Directive.  It also would provide relevant documents upon 
request. 
iii. The Ministry of Commerce and Industry was the authority responsible for making 
notifications to the WTO. 
iv. Item 2 of Part Four of the Technical Directive required a non-discriminatory and cost-
based fee structure. 
v. Items 4/5/1 of Part Two of the Technical Directive required publication of notices of 
proposed technical regulations, standards and conformity assessment procedures in 
the journal issued by SASO. 
vi. Items 3/3/1 and 4/5/4 of Part Two of the Technical Directive provided for a 60-day 
comment period and non-discriminatory consideration of comments in the preparation of final regulations. 
vii. Item 4/8 of Part Two of the Technical Directive provided for a reasonable period of 
time between the final publication and entry into force of a technical regulation. 
viii. Item 2/1 of Part Two of the Technical Directive stated that SASO would follow the 
Code of Good Practice for the preparation,  adoption and application of standards 
issued by ISO and IEC.   
ix. Item 2/3 of Part Two of the Technical Directive and Item 2 of Part Three of the 
Technical Directive provided for national treatment and non-discrimination with 
respect to products in the context of de velopment and application of technical 
regulations and conformity assessment procedures.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 63 
 
 
 x. Item 2/4 of Part Two of the Technical Directive states "Saudi voluntary and 
mandatory standards shall not create unnecessary barriers to international trade except what violates the Islamic legislation (e.g., requirements for halal meat and labelling requirements for "alcohol free"  malt beverages), national security 
requirements, prevention of deceptive practices, and the protection of human health 
or safety, animal or plant life or health or the protection of environment".   
xi. Item 4/9 of Part Two of the Technical Directive provided for on-going review of 
technical regulations to ensure they are a ppropriate to achieve the desired legitimate 
objectives. 
xii. Items 3/1 and 4/1 of Part Two of the T echnical Directive required SASO to consider 
relevant international standards as a basis for preparing Saudi technical regulations 
and standards unless these international standa rds or their parts are ineffective or 
inappropriate means for achieving the inte nded, legitimate objectives.  This, for 
example, could be due to their inconsiste ncy with Islamic law or due to climatic, 
geographical factors or basic technical problems. 
xiii. According to Items 3/2 and 4/4 of Part Two of the Technical Directive, technical 
regulations and standards should be prep ared on the basis of product performance 
requirements rather than in terms of  design or descriptive characteristics. 
xiv. Item 4/3 of Part Two of the Technical Directive required SASO to consider 
equivalent technical regulations of othe r Members unless they were ineffective or 
inappropriate for achieving the intended legitimate objectives. 
xv. Item 2 of Part Three of the Technical Directive required SASO to accept the results of 
conformity assessment procedures conducted by bodies in exporting Member countries provided that relevant Saudi Arab ian national deviations  were taken into 
account. 
179. In response to questions from some members of the Working Party, the representative of 
Saudi Arabia stated that SASO was the sole sta ndardization body in Saudi Arabia.  Its Board of 
Directors consisted of all concerned Ministries, Government Agencies and the Private Sector.  There was coordination between SASO and other Saudi au thorities on issuing any regulations that mighty 
affect trade between Saudi Arabia and other countries.  He said that technical committees made 
recommendations to SASO on whether a standard  should be voluntary or a mandatory (i.e., a 
technical regulation, in WTO terms).  The criteria for adopting a standard as mandatory (as a technical regulation) would be based on the fulfilment of legitimate objectives as provided in the TBT  Agreement, such as protection of health, safety,  national security, Islamic Law, the environment 
and prevention of deceptive practices.  In reply to  a question whether guidelines and/or criteria would 
be developed to assist in determining whether an existing mandatory standard (technical regulation) 
should remain mandatory when it was reviewed, the representative of Saudi Arabia stated that the 
criteria for adopting mandatory standards (technical regulations) would also apply to a review of 
existing mandatory standards (technical regulations).  In response to a question from a member of the 
Working Party, the representative of Saudi Arabia  noted that the development of Saudi voluntary 
standards and mandatory standards (technical regul ations) would proceed in accordance with SASO's 
General Outline of the Measures for Drafting Saudi Standards. WT/ACC/SPEC/SAU/4/Rev.4 
Page 64  
 
 180. In response to additional questions from a member  of the Working Party, the representative of 
Saudi Arabia reported that SASO currently was revi ewing the Technical Directive, the reference in 
the Technical Directive to "ISO Code of Good Pr actice" would be changed to "TBT Code of Good 
Practice" and statements such as "whenever possibl e or "as much as possible" would be removed from 
the Technical Directive.  The representative furt her stated that, to make the procedures more 
transparent, they would be placed on the SASO website ( www.saso.org.sa
), they would be available 
from the Chamber of Commerce and SASO would provide copies on request.  Also, Part III of the 
Technical Directive would be changed to reflect the Ministerial Decision withdrawing the ICCP and 
the new legislation on accredited laboratories. 
181. In response to questions from members of the Wo rking Party, he noted that Saudi Arabia was 
a member of ISO, IEC, OIML and CAC.  All Saudi voluntary standards and mandatory standards 
(technical regulations) were notified to all other me mbers of those international organizations.  A high 
percentage of Saudi voluntary standards and ma ndatory standards (technical regulations) used 
international standards and other widely accepted national standards as references.  He provided 
members of the Working Party with a list of SA SO voluntary standards and mandatory standards 
(technical regulations) that had been based upon CODE X standards, together with a complete list of 
the 2,261 Saudi voluntary standards and mandatory standards (technical regulations), including a 
cross-reference to the international standards a dopted in their entirety as SASO voluntary standards 
and mandatory standards (technical regulations)  (in document WT/ACC/SAU/34).  The percentage 
changes constantly as Saudi Arabia adopts pre-exiti ng international standards.  In response to a 
comment from a member of the Working Party, the representative of Saudi Arabia confirmed that the 
procedures for the development of SASO sta ndards provided in Annex IV of WT/ACC/SAU/29 
remained valid. 
182. Some members of the Working Party requested a lis t of the standards deemed to be equivalent 
to Saudi mandatory standards (technical regulations).   In response, the representative of Saudi Arabia 
stated that the Saudi Arabian Standards Organiza tion had published the list of mandatory standards 
(technical regulations), and in this connec tion referred to the information in document 
WT/ACC/SAU/15.  Certain Saudi mandatory sta ndards (technical regulations) had a corresponding 
ISO or IEC equivalent which was indicated in the published list of SASO mandatory standards 
(technical regulations).  Other Saudi mandatory st andards (technical regulations) used international 
standards or other recognized national standards or t echnical regulations as a reference.  He noted that 
a predetermination of the equivalency of such ma ndatory standards (technical regulations) was not 
feasible, due to the diversity and incorporation of the national requirements a nd deviations of various 
countries (e.g., climatic differences).    WT/ACC/SPEC/SAU/4/Rev.4 
 Page 65 
 
 
 183. Some members requested further informati on on the manner in which SASO developed 
mandatory standards (technical regulations).  In r esponse, the representative of Saudi Arabia stated 
that mandatory standards (technical regulations) were  adopted only when they were considered to be 
vital for the legitimate objectives, such as  nationa l security requirements; the prevention of deceptive 
practices; or protection of human health and safety, animal or plant life health or the environment.  However, recent policy within SASO had been to refer most mandatory standards (technical 
regulations) to technical committees irrespectively.  (A list of the technical committees was attached 
to the Working Party Report at Annex M.)  All par ties concerned with the subject matter of the draft 
mandatory standards (technical regulations) were  normally represented on the relevant "technical 
committees" as active members; they included per tinent governmental, academic, industry and trade 
sectors.  For this reason, only one draft circ ulation period was necessary to provide adequate 
opportunity for comments by other interested parties.  In case of development of draft mandatory 
standards (technical regulations) by the SASO tec hnical staff, the first draft circulation period 
provided the opportunity for comments raised by all c oncerned parties to be taken into consideration 
in the preparation of the second draft.  He also provided the Working Party with a copy of the 
procedures for the development of SASO mandatory standards (technical regulations) in Annex IV to 
document WT/ACC/SAU/29.  He further reported that, as noted in Saudi Arabia's Technical Directive, Saudi Arabia would comply with all re levant provisions of the TBT Agreement, including 
the Code of Good Practice, as from the date of accession. 
184. Some members of the Working Party stated th at the recent exemption of GCC members from 
the ICCP and its implied recognition of equivalenc y of all GCC members' inspection, enforcement, 
and compliance to relevant elements of GCC and/or SASO mandatory standards (technical 
regulations) raised questions under Article 4 of the PSI  Agreement and the transparency provisions of 
the WTO.  Those members asked whether GCC me mber states were obliged to adopt the GCC 
mandatory standards (technical regulations) in full or in part. In response, the representative of 
Saudi Arabia stated that GCC Members were not ex empted from the ICCP.  He added that Article 5.4 
of the Regulations of the "Standardization and Me trology Organization for GCC Countries" stipulated 
that Gulf mandatory standards (technical regulati ons) were adopted by consensus of all members, 
while voluntary or guideline standards were adopted  by majority.  Thus, he said, GCC mandatory 
standards (technical regulations), adopted by c onsensus, were binding on Saudi Arabia.   Some 
members of the Working Party also requested a list of GCC member countries that had officially adopted and incorporated SASO-developed mandatory  standards (technical regulations), by product 
category (in full or in part) into their national mandatory standards (technical regulations).  In 
response, the representative of Saudi Arabia provide d a list of SASO mandatory standards (technical 
regulations) which had been adopted as GCC mandato ry standards (technical regulations) and thereby WT/ACC/SPEC/SAU/4/Rev.4 
Page 66  
 
 incorporated as national mandatory standards (t echnical regulations) in other GCC Countries in 
Annex III to WT/ACC/SAU/29. 
185. In response to further questions, the representa tive of Saudi Arabia stated that appeals 
procedures were included as an Appendix to the I CCP Guidelines and following the suggestions of 
WTO Members had been revised to included r ecourse to independent review procedures in 
accordance with Article 4 of the PSI  Agreement.   
186. At a later stage, the representative of Saudi Arab ia stated in response to comments of various 
members of the Working Party regarding the ICCP that the ICCP would be phased out pursuant to 
Council of Ministers Decision No. 213 of 3.8. 1424H (30 September 2003), and would no longer 
operate as from 30 August 2004.  As the ICCP was being phased out, Saudi Arabia would undertake a 
review of the products subject to mandatory certifi cation.  He also noted that Saudi Arabia had 
introduced a law on the accreditation of private labor atories.  Applications had been received from 
members of the business community wishing to partic ipate in this regime.  Moreover, the procedure 
for operating private laboratories had been establishe d and approved in April 2002, by the appropriate 
authority.  The objective of this regime was to perform testing on both domestically produced as well 
as imported products.   He further stated that, pursuant to Council of Ministers Decree No. 213, Saudi 
Arabia would be examining the issue of whethe r to use certificates from approved laboratories (or 
other options) and would make and disseminat e this determination by 31 August 2004.  
187. He further reported that, until 31 August 2004 and the elimination of the ICCP system, the 
existing ICCP system would be in place.  The a pproval procedure was very simple and straight 
forward.  Laboratories seeking SASO approval were required to complete the "SASO/ICCP 
Laboratory Application Form" (which was supplied to members of the Working Party in document 
WT/ACC/SAU/34).  He noted that the form provided SASO with information about the accreditation that the laboratory already had and the type of I CCP Regulated Products that it had the capabilities to 
test in whole or in part. The information was ev aluated and verified and the laboratory was approved 
accordingly.  In countries that did not have Na tionally Recognized Laboratory Accreditation Bodies 
that accredited laboratories in accordance with IS O Guide 25, a higher degree of scrutinizing was 
conducted in order to gain assurance of the laborat ory's competence.  There were no costs involved 
for laboratories seeking SASO approval. An exporte r of regulated products to Saudi Arabia could 
obtain a Certificate of Conformity via three ways:  (i) Preshipment Compliance Verification (for non-registered/non-verified products); (ii) Registration and Preshipment Inspection; or (iii) Type-Approval 
Licensing.  He noted that the last option allows  manufacturers that have achieved full compliance 
with the relevant standards to export their products  with minimum intervention by the program.  Full  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 67 
 
 
 compliance should be proven through type testing of  the product(s) at a SASO-approved laboratory (a 
laboratory recognized by SASO), in addition to assessment, approval and surveillance of the 
manufacturer's quality-control system to ensure continuous compliance.  Once the manufacturer's 
quality-control system is licensed and approved by SASO, there would be no preshipment inspection 
requirement for each consignment.  Once a manufact urer had been issued a Type-Approval License, 
preshipment inspection for each consignment was no l onger required.  He stated that the compliance 
procedure for Certificates of Conformity was inco rporated in the ICCP Comprehensive Procedures 
and Guidelines Attachment to Appendix D, Request for Certification.  
188. Some members of the Working Party requested  additional information on the mechanism for 
cancellation of certificates of conformity presently and after 31 August 2004, in the event that products enjoying the benefit of a certificate of compliance were found to be non-compliant.  The 
representative of Saudi Arabia stated that in su ch a case Saudi Customs would withhold the certificate 
of compliance number, and suspend the certificate of  compliance.  Thereafter, Customs would notify 
SASO and the manufacturer.  An expedient investig ation was then carried out and appropriate action 
taken on the basis of the findings.  Dependi ng on the severity, frequency, and cause of the 
discrepancy, appropriate action could include su spension or withdrawal of the Type Approval 
License.  The action taken was always proportionate to the seriousness of the facts at hand on a case-by-case basis.  Suspension (which may be temporary) or withdrawal of the License was only a possibility in extreme cases, such as fraud or material inaccuracy. 
189. Some members of the Working Party asked whether certificates granted by other national or 
international certification bodies were taken into c onsideration.  In response, the representative of 
Saudi Arabia stated that test reports or certif icates issued by accredited bodies for the regulated 
product under another national or international conformity assessment or certification scheme could 
be submitted by exporters as docum ents substantiating their compliance.  Full recognition was duly 
given to those reports/certificates in so far as they  satisfy the Saudi requirements.  Where the full 
Saudi requirements were met, SASO would i ssue and validate the confirming Statement of 
Registration or Type Approval License and the SASO  Country Office would carry out all functions 
associated with Registration and issue the final Certificates of Conformity.  For products holding a 
SASO Type Approval License, certificates of conformity could be issued by the manufacturers 
themselves.  This applied to all products and countries. 
190. Some members of the Working Party requested  Saudi Arabia to confirm that access to the 
SASO Quality Mark would be on a non-discriminatory basis and without distinction to the origin of 
the product.  In response, the representative of Saudi  Arabia stated that access to Saudi Quality Mark, WT/ACC/SPEC/SAU/4/Rev.4 
Page 68  
 
 a voluntary program, would be on a non-discriminative basis, without distinction as to the origin of 
the products.  In response to an additional questi on, the representative confirmed that domestic and 
foreign suppliers could apply to obtain the Quality  Mark for imported products.  Use of the Quality 
Mark would be granted in a non-discriminatory fash ion to those domestic and foreign suppliers that 
met the requirements of the program. 
191. A member of the Working Party requested Saudi Arabia to explain its rice labelling 
requirement that information be printed on at least 50 per cent of the surface of the rice package.  In 
response, the representative of Saudi Arabia stated  that this requirement no longer existed, as the 
Kingdom had withdrawn it. 
192. A member of the Working Party inquired as to the rationale for the application of different 
emission standards to new and used heavy vehicles.  The representative of Saudi Arabia replied that 
new heavy vehicles were subject to more demandi ng standards because they could meet them; he 
reported that the Kingdom was unaware of any inst ance of non-compliance and that the standard was 
not, in practice, a bar to imports.  A lower standard had been set for used heavy vehicles, he reported, 
because otherwise used heavy vehicles would not be able to be operated absent significant and 
extremely costly modifications. 
193. The member asked why Saudi Arabia subjected "cover tissues" to mandatory certification and 
preshipment inspection.  The representative of Sa udi Arabia replied that this was necessary because 
the cover tissues include items that come into c ontact with the human body and, thus, may pose a 
health risk if they are not in compliance. 
194. Members of the Working Party asked Saudi Arabia to confirm that the Saudi Conformity 
Assessment Program (SCAP) would comply with WTO rules and that any fees charged for assessing 
the conformity of the products originating in th e territories of other Members were equitable in 
relation to any fees chargeable for assessing the conf ormity of like products of national origin or 
originating in any other country, as foreseen in the TBT  Agreement.  The representative from 
Saudi Arabia stated that Saudi Arabia would ensu re the compliance of SCAP with all the relevant 
WTO requirements relating to national treatment, including fees charged.  The representative of Saudi Arabia stated that SCAP would be implemen ted to ensure compliance of domestically produced 
products with the national technical regulation.  At  a later stage, the representative of Saudi Arabia 
stated that SASO intended to discontinue SCAP in  light of the phase out of the ICCP.  He reported 
that SCAP would be removed from the third part of the Technical Directive.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 69 
 
 
 195. In response to a question from members of the Working Party, the representative of 
Saudi Arabia noted that a list of items subject to  mandatory certification had been attached to the 
Working Party Report at Annex J.  The representativ e later assured the members that the list was up to 
date and complete, and would be  reviewed in light of the commitment to phase out the ICCP. 
- Transparency 
196. Some members of the Working Party requested that the Government of Saudi Arabia publish 
draft technical regulations in a single official jour nal or other publication that was available to the 
general public, and other interested parties.  The representative of Saudi Arabia stated that SASO 
would start publishing all draft technical regulations in  a single official journal issued during the first 
half of 2004.  He later confirmed that this sche dule would be met and that the new website was still 
under construction.  He further confirmed that, un til this goal was reached, all Saudi draft technical 
regulations would continue to be  announced in all Saudi newspapers  and circulated to all foreign 
embassies in Saudi Arabia.  The Working Party took note of these commitments. 
- Implementation of TBT  Agreement Obligations 
197. In response to the above explanations and cl arifications provided by the representative of 
Saudi Arabia, members of the Working Party requested  that Saudi Arabia provide a description of the 
steps being taken to ensure full implementation of the  Agreement on Technical Barriers to Trade.  In 
response, in document WT/ACC/SAU/41, the representative of Saudi Arabia provided the Working Party with a comprehensive Action Plan for the Implementation of the TBT  Agreement.  The 
representative of Saudi Arabia noted that the Action Plan cross-referenced the various requirements of 
the TBT  Agreement, and described the existing provisi ons or practices in Saudi Arabia, as well as 
planned improvements, including the enactment of implementing legislation.  The Action Plan had 
been fully implemented by means of the SASO  Comprehensive Directive of July 2000, which 
incorporated the substance of the TBT Agreement.  In response to a question from a member of the 
Working Party, the representative of Saudi Arab ia reported that the Saudi Arabian Standards 
Organization (SASO) (P.O. Box 3437, Riyadh 11471, Saudi Arabia; tel: 966-14-520-000; fax: 966-
14-520-086; www.saso.org.sa) was the operational enquiry point for issues relating to the TBT Agreement. 
198. The representative of Saudi Arabia stated that Saudi Arabia would comply with all 
obligations under the WTO  Agreement on Technical Barriers to Trade from the date of accession 
without recourse to any transition period.  The Working Party took note of this commitment. WT/ACC/SPEC/SAU/4/Rev.4 
Page 70  
 
 - Sanitary and phytosanitary measures 
199. In response to requests for information, the representative of Saudi Arabia supplied detailed 
information on the Saudi Arabian Sanitary a nd Phytosanitary (SPS) regime in document 
WT/ACC/SAU/17.  In addition, he also submitted information on the shelf life of food products in 
document WT/ACC/SAU/27 and an SPS Agreement Action Plan in document WT/ACC/SAU/42.   
200. The representative of Saudi Arabia stated that  one of the legal bases for SPS requirements in 
Saudi Arabia was Royal Decree No. M/10 of 3. 3.1392H (16 April 1972), developed by SASO, the 
competent standardization body in Saudi Arabia.  He noted that SPS measures were enforced through 
Council of Ministers Decisions No. 85 (July 2002) and No. 943 (July 2003).  In response to further 
questions from members of the Working Party, the representative of Saudi Arabia stated that the 
SASO Technical Directive implemented Saudi Arab ia's obligations under the TBT Agreement, while 
the Saudi Unified SPS Procedures implemented Saudi Arabia's obligations under the SPS Agreement.  
He further stated that SASO would review relevant  technical regulations to ensure their conformity 
with the provisions of the SPS Agreement. 
201. The representative of Saudi Arabia stated that  Saudi standards covered sanitary requirements 
for food products by means of the following measures:  
i. Measures following the standards and guidelines of Codex Alimentarius. 
ii. Measures not covered by the standards and guidelines of Codex Alimentarius were 
based upon scientific studies or the most appropriate measures of other WTO 
Members. 
202. In addition, the representative of Saudi Arabia stated that the veterinary quarantine bylaw 
issued vide Council of Ministers Decision Nu mber 109 of 34.4.1424H ( 30 June 2003), covered 
sanitary and veterinary requirements and measur es pertaining to animals and animal products 
conforming to the ruling of the International Zoosanitary Code specifying the regulations 
recommended for international trade with regard to animals and animal products issued by the Office 
International des Epizootics.  He noted also that  the agricultural quarantine bylaw issued by the 
Decree of the Council of Ministers Number 207 of 26.1.1396H (28 January 1976), set out 
requirements and phytosanitary measures conforming to  the rules issued from IPPC initially based on 
FAO publications.  Periodic preventive health circular s issued by the Ministry of Health pursuant to 
the weekly epidemiological circular issued by the WHO were also concerned with sanitary and 
phytosanitary measures. 
203. In response to further requests for informati on regarding the role of the GCC and risk 
assessment, the representative of Saudi Arabia stated that, in regard to Saudi Arabia's quarantine  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 71 
 
 
 system and associated risk assessment, the Council of Ministers had issued Decision No. 109 of 
30.4.1424H (30 June 2003).  Through Decision No. 109,  Saudi Arabia had adopted the veterinary 
quarantine system applicable to GCC countries.  (H e reported that a revised plant quarantine system 
was still under consideration.)  The representative not ed that the Customs Union of the GCC countries 
had adopted a system of one port of entry for all goods imported to GCC countries.  According to the 
system, any item that was allowed to enter any G CC port was allowed to enter all GCC countries and 
customs procedures such as inspection, laboratory anal ysis and customs fees were handled in the first 
port of entry.  Thus, this system of risk assessment in all GCC countries was unified.   
204. A member of the Working Party asked how Saudi  Arabia would ensure that measures applied 
by Saudi Arabia would meet the requirements of Article 5 of the SPS  Agreement (i.e., that the 
measures applied in each member were not more rest rictive than is necessary to  deal with the risks 
faced by that particular member).  The representa tive of Saudi Arabia explained that, because there 
was free movement of goods between GCC countries due  to the establishment of the customs union, it 
was not feasible to restrict imports in one GCC count ry and to allow imports in other GCC countries.  
Some members of the Working Party indicated that this could result in Saudi Arabia applying a ban 
on imports even though those imports did not pose a disease risk in Saudi Arabia, simply as a result of 
another GCC country imposing such a ban.  Those members were of the view that this may be inconsistent with the requirements of Article 5 of the SPS Agreement.    In response, the 
representative of Saudi Arabia assured the members th at Saudi Arabia was aware of this concern and 
that any bans would be applied only in a manner c onsistent with Article 5 of the SPS Agreement as of 
the date of accession. 
205. The representative of Saudi Arabia further re ported that Saudi Arabia earlier had issued 
sanitary and quarantine measures for animal hea lth, living plants and seeds, measures for the 
prevention of epidemic diseases spread and the c ontrol on the use of veterinary medicines and 
pesticides were administered by the Ministry of Agriculture, as well as the Ministry of Commerce and 
Industry and the Ministry of Municipalities.  San itary measures for fresh vegetables and fruits were 
governed by SASO standards and applied by th e Ministry of Agriculture.  When no approved 
international standards applied to these products , the Kingdom of Saudi Arabia implemented the 
standards applied by Members of the WTO and abided by the relevant provisions of the SPS 
Agreement.  In such cases, Saudi  Arabia ensured that a proper risk assessment was undertaken to 
ascertain that the measure concerned did not exceed Sa udi Arabia's appropriate level of protection.  
Standards concerning sanitary measures for food commodities (meat, meat products and processed foods) are approved by SASO but applied by th e Ministries of Industry and Commerce on locally 
made products, and by the Ministry of Commerce and Industry on imported products.  The Ministry WT/ACC/SPEC/SAU/4/Rev.4 
Page 72  
 
 of Municipalities participated in internal contro l of products in the markets which were mainly 
controlled by the Ministry of Commerce and Industry.  Measures relating to effects on the human 
health and its relation with animal sanitary and phytosanitary and food safety were imposed by the 
Ministry of Health through the issuing of periodic preventative circulars to inform and caution other concerned bodies about relevant risks. 
206. He further noted that sanitary measures of Saudi Arabia were consistent with the 
SPS Agreement and also with the recommendations and guidelines issued by international and 
regional organizations.  Saudi Arabia was a perm anent and active member in the international 
organizations on plant and animal regulations, including FAO, the Codex Alimentarius Commission 
(CAC) and the International Office of Epizootics (IOE).  Saudi Arabia's SPS measures did not arbitrarily or unjustifiably discriminate between different countries where identical or similar 
conditions prevail.  Such measures also did not discr iminate between the territory of Saudi Arabia and 
other countries where identical or similar conditions prevailed.  Saudi Arabia's SPS measures were not applied in a manner which constitutes a di sguised restriction on international trade. 
207. In response to requests for information on the transparency of Saudi Arabia's SPS measures, 
the representative of Saudi Arabia stated that Sa udi Arabia's SPS measures were published in advance 
of their application.  The Kingdom of Saudi Arabia had an established system for informing governments and other standards organizations of changes, and full sets of guidelines detailing all 
requirements were freely available to any inter ested parties.  Saudi Arabia's SPS measures and 
requirements were notified to the Embassies in the Kingdom and to Saudi Chambers of Commerce.   
In response to a comment by a Member of the Wo rking Party, the representative noted that, as with 
TBT standards, SASO currently was in the pro cess of publishing Saudi food draft standards in a 
single journal issued by SASO, in order to increase transparency and provide notification of future 
changes to SPS import requirements.  (Until this  goal were reached, all Saudi SPS measures would 
continue to be disseminated as described above.)  Furthermore, information regarding Saudi Arabia's 
SPS regime, including its SPS measures, would be di sseminated on the internet.  The representative 
confirmed that Saudi Arabia would provide notifi cation of future changes to import requirements 
relating to SPS matters. 
208. Members of the Working Party asked Saudi Arab ia to identify any additional steps taken to 
implement obligations in the SPS  Agreement regarding transparen cy and risk assessment.  The 
representative of Saudi Arabia stated that SPS oblig ations had been implemented by recent decisions 
by the Council of Ministers.  In particular, he noted that Council of Ministers Decision No. 85 of 1.4.1421H (4 July 2000), included a number of provisions implementing obligations of the  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 73 
 
 
 SPS Agreement.  First, Decision No. 85 required the Ministry of Commerce and Industry to notify the 
WTO and all WTO Members of all actions relati ng to SPS issues and to respond to any inquiries 
regarding the same.  Second, under the Decision, a Technical Standing Committee was established to 
monitor Saudi SPS measures and ensure that they ar e implemented in accordance with Saudi Arabia's 
WTO obligations.  The Technical Standing Comm ittee comprised representatives from the Ministry 
of Commerce and Industry, the Ministry of Agriculture, the Ministry of Health, SASO and the 
Customs Department.  Third, Decision No. 85 required the Ministry of Commerce and Industry to 
prepare a list of all Saudi SPS measures; this list is attached as Annex N.  In response to a question by 
a member of the Working Party, the representative assured the member and confirmed that Saudi Arabia would strictly follow the provisions of C ouncil of Ministers Decision No. 85 and would notify 
the WTO and all WTO Members of all actions re lating to SPS issues and respond to any inquiries 
regarding the same. 
209. Some members of the Working Party stated that the information on Saudi Arabia's SPS 
measures gave a good overview of the regime.  They sought confirmation that measures were based on risk assessments carried out in acco rdance with Article 5 of the SPS  Agreement.  In response, the 
representative of Saudi Arabia confirmed that Saudi Arabia's SPS measures conformed to all 
standards, guidelines or recommendations issued by  the international bodies specifically designated 
by the SPS  Agreement, i.e., the Codex Alimentarius  Commission, the International Office of 
Epizootics and the International Plant Protection C onventions.  Saudi Arabia was a member of all 
three organizations, in accordance with Article 3.2 of the SPS  Agreement.  For SPS measures related 
to risk assessment not covered by the above three organizations (such as microbiological risks and 
shelf life of food products), Saudi Arabia relied on scientific studies, guidelines and recommendations 
either carried out by specialized internationally accepted research institutes, universities or scientific 
references or, in limited cases, by itself.  In cases where Saudi Arabia decides it is necessary to 
provide a  level of protection which is hi gher than that provided for in guidelines and 
recommendations issued by internationally rec ognized bodies Saudi Arabia took full account of the 
objective of minimizing negative trade effects.  He confirmed that Saudi Arabia's SPS measures were based on risk assessment in accordan ce with Article 5 of the SPS  Agreement. 
210. Some members of the Working Party identified certain possible areas of inconsistency with 
the requirements of the SPS  Agreement, such as the Council of Ministers Resolution No. 207 of 
26.1.1396H (28 January 1976) "Agricultural Quarantin e Regulations" requirement in Article 6 that 
products be free of all weed seeds, regardless of wh ether such weed seeds were  quarantine significant, 
in accordance with relevant international guidelines.   Some members also noted that the Council of 
Ministers Decision No. 109 of 30.4.1424H (30 June 2003), "The Statutory Instrument of the WT/ACC/SPEC/SAU/4/Rev.4 
Page 74  
 
 Veterinary Quarantine", Article 3 stated that "no animal may be admitted ... from any country that was 
infected with any epidemic disease ...".  These member s were of the view that this requirement was 
inconsistent with Article 6 of the SPS  Agreement.  In response the representative of Saudi Arabia 
stated that upon accession, the Kingdom of Saudi Arabia would comply with the relevant WTO obligations.  In response for further information concerning the importation of seeds, he noted that 
there was no fee charged for the inspection of seed s.  The seeds were first subject to a visual 
examination to check for impurities and to ensure that the phytosanitary information in the import 
documents was correct.  Thereafter samples of th e seeds were sent to laboratories to check for 
aflatoxins. 
211. One member of the Working Party asked for a clarification of Saudi Arabia's treatment of 
meat in sealed containers, where the meat had fi rst entered another GCC country.  The representative 
from Saudi Arabia noted that Saudi Arabia understood th e importance of this issue.  At a later stage, 
he noted that Ministerial Decree No. 5618 of 15.11. 1424H (8 January 2004) had been issued.  That 
Decree allowed such imported shipments to transit third countries provided that the containers were 
appropriately sealed and shipment s appropriately documented.   
212. Some members of the Working Party stated that certain laws, such as the "Approval of 
Importing Alfalfa and Vegetable Seeds from N on-Arab Countries", and "Approval of Importing 
Flower and Forage Crop Seeds from Non-Arab C ountries" appeared to only apply to "non-Arab" 
countries, which suggested problems in relation to  the consistency of these regulations with the 
principle of most-favoured-nation treatment.  In r esponse to further questions, the representative of 
Saudi Arabia stated that upon accession, the Kingdom of Saudi Arabia would comply with the relevant WTO obligations.  Some members of the Working Party stated that position appeared inconsistent with the SPS  Agreement's requirement that, in applying SPS measures, WTO Members 
recognize "regional conditions" affecting human, animal and plant health risks.  In response, to these 
and further concerns expressed by Working Party me mbers about particular regulations and practices 
in the Saudi Arabian SPS regime, the representative of  Saudi Arabia stated that those regulations 
would be reviewed.   
213. Some members of the Working Party noted that the time limits relating to shelf life in 
Saudi Arabia appeared to be unduly short.  In res ponse, the representative of Saudi Arabia stated that 
Saudi Arabia was revising its shelf-life requirements to  ensure they comply with the provisions of the 
SPS and TBT  Agreements. 
214. He further stated that Saudi Arabia's shelf-lif e standards originally had been adopted in the 
light of Saudi Arabia' extreme climate and other c onditions specific to Saudi Arabia.  Saudi Arabia'  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 75 
 
 
 shelf-life determinations were based on scientific  investigations and on international and other 
countries' national standards, scientific studies and reports conducted/issued by specialized 
internationally reputable research institutes and unive rsities, and international scientific references.  
The final determination of shelf life was based on studies for which "the stated storage conditions" 
most closely resembled Saudi Arabian conditions.  These conditions had been thoroughly investigated and surveyed by Saudi Arabia in the report entitled "Proceedings of Symposium on the 
Transportation, Handling and Storing of Food Products in the Kingdom, Part I and II dated 
26-28 February 1989".  In this connection, he noted  that Codex defined "Use-by-Date" as "the date 
which signifies the end of the estimated period under any stated storage condition after which the product probably would not have th e quality attributes normally expected by the consumers.  After 
this date, the food should not be regarded as ma rketable".  He further added that the term 
"unacceptable to the consumer" and "unfit for human  consumption" respectively corresponded to, and 
were self evident from the above definition.  He further added that Saudi Arabia relied for the 
determination of the shelf life of food products on available scientific studies by specialized, internationally recognized bodies and on referen ces, based on research conducted for academic or 
industrial/commercial purposes.  The fact that part  of this research was conducted by manufacturers 
demonstrated that Saudi Arabia took into consid eration differences in manufacturing and packaging 
processes.  This wide spectrum of scientific basis did not  affect Saudi Arabia's right to engage in shelf 
life determination as an SPS measure for perishable  food products and as a TBT technical regulation 
appropriate to Saudi Arabia's climatic c onditions for shelf stable food products.   
215. In response to further questions he noted that manufacturer determined shelf life practices that 
were followed in other countries were neither uni form nor could be considered as official SPS 
measures by governments.  Nevertheless, shelf lif e periods of perishable food products were not 
imposed unilaterally, but rather adopted in acco rdance with the same open process applicable to 
standards, i.e., through technical committees entruste d with the preparation of the standard whose 
diversified membership included representatives of  the industrial and commercial sectors.  He 
considered that those members had the opport unity to influence the decision on shelf life 
determination and insure its responsiveness to the needs of the industry, not to mention the period 
afforded for consultation and comment by any inter ested parties.  In addition, SASO administrative 
procedures and directives provided the opportunities for manufacturers to submit at any time the scientific basis for their own determined shelf to SASO for evaluation.  If those manufacturers could 
demonstrate objectively that their shelf life periods were appropriate to Saudi Arabia's level of SPS 
protection as well as the food quality criteria, Saudi Arabia would revise its shelf life standards 
accordingly. WT/ACC/SPEC/SAU/4/Rev.4 
Page 76  
 
 216. In response to further questions, the representativ e of Saudi Arabia noted that the same shelf-
life periods were applied to domes tic and imported food products alike.  In the case of shelf-stable 
products, the TBT  Agreement granted Saudi Arabia the right to take into account the effect of the 
country's specific climatic and infrastructural c onditions (i.e., transportation, storage and handling 
conditions).  However, climatic c onditions were the major factor cons idered by SASO in determining 
shelf life.  In rare cases covering particular produc ts where non-concurrence or differences were found 
between the internationally recognized studies and re ferences, the tendency had been to rely more 
heavily on the shorter shelf life periods determined  by these studies as an indirect compensation for 
not specifically accounting for infrastructural factors.   With the improvement of the infrastructural 
factors, a less-stringent system would be adopted. 
217. In response to additional inquiries by members of the Working Party, the representative of 
Saudi Arabia confirmed that Saudi Arabia had re-e xamined its shelf-life requirements.  A technical 
committee from different Government Ministries (Ministry of Commerce and Industry, Ministry of Health, Ministry of Agriculture, Ministry of M unicipality, Universities and SASO) had reviewed  
Saudi technical regulations on the shelf-life of food products according to SPS, TBT, Codex 
Alimentarius Commission, International Scientific References, Research and Field Scientific Studies 
carried out in the Kingdom of Saudi Arabia or abroad.  The revised Saudi standard, which incorporated the deletion of the statement of  not allowing any food product which had overpassed 
more than half of its shelf-life, had been a pproved by the Council of Ministers and would be 
implemented before or from the date of accession.   
218. The representative of the Kingdom of Saudi Arabia stated by the date of accession Saudi 
Arabia would adopt in place of shelf-life standards a use-by date selected by manufacturers.  Imports of products would be allowed when the indicated  use-by date had not expired at the time of 
importation.  The Working Party took note of this commitment.    
219. Some members of the Working Party noted that the SPS  Agreement required that WTO 
Members accept the SPS measures of other members, subject to confirming objectively that those measures were adequate to achieve the impor ting country's level of SPS protection.   
220. The representative of Saudi Arabia stated  that, upon accession, when Saudi Arabia was 
satisfied that the SPS certification of an expor ting country was credible and it achieved the 
appropriate level of protection de termined to be necessary by Saudi  Arabia in accordance with the 
SPS Agreement, then Saudi Arabia would accep t would accept the SPS measures of the exporting 
country as required by Article 4 of the SPS  Agreement.  The Working Party took note of this 
commitment.    WT/ACC/SPEC/SAU/4/Rev.4 
 Page 77 
 
 
 221. Some members of the Working Party requested  that Saudi Arabia identify all areas of 
inconsistency and provide a timetable for bringing th e Saudi Arabian regime into conformity with the 
requirements of the SPS  Agreement.  In response, the representa tive of Saudi Arabia stated that an 
internal review had already been commenced into  Saudi Arabia's SPS regime guided by the comments 
of the WTO Working Party in this respect.  At a later stage, the representative of Saudi Arabia 
provided members of the Working Party with a comprehensive Action Plan for the Implementation of 
the SPS  Agreement in document WT/ACC/SAU/42.  Later,  he informed the Working Party that the 
Action Plan had been fully implemented by issuance of the Council of Ministers' Decision No. 85 of July 2000 and the Council of Ministers' Decision No. 943 of 1 July 2003 on SPS law titled "Sanitary and Phytosanitary Unified Procedures" wh ich was in compliance with the provisions of the 
WTO SPS  Agreement.  In reply to questions from so me Working Party members, the representative 
of Saudi Arabia stated that the new SPS law al so incorporates revisions of the "Agricultural 
Quarantine Regulations" and the "Statutory Inst ruments of Veterinary Quarantine" ensuring 
conformity with the requirements of the SPS  Agreement.  He reported that the salient features of the 
new Saudi Law include the following: 
i) Saudi Arabia shall apply SPS measures c onsistently with the provisions of the 
WTO Agreement on SPS Measures (Article 2.1 of Saudi Arabia's SPS Law). 
ii) SPS measures shall be limited to the exte nt necessary to protect human, animal or 
plant life or health (Art. 2.2). 
iii) SPS measures shall be based on scientific rules and principles and shall not be 
maintained without sufficient scientific evidence (Art. 2.2). 
iv) There will be no unjustified discrimin ation between WTO Members and between 
Saudi Arabia where identical or similar conditions prevail (Art. 2.3).   
v) SPS measures shall not be applied in a way that constitutes a disguised restriction on 
international trade (Art. 2).   
vi) SPS measures taken by Saudi Arabia sha ll be based on international standards, 
guidelines or recommendations, except where th ere is a scientific justification for a 
measure resulting in a higher level of protection (Art. 3.1). 
vii) Saudi Arabia shall accept the SPS measures of other WTO Members as equivalent 
where those measures achieve the protection level of Saudi Arabia (Art. 4.1). 
viii) Article 5 of Saudi Arabia's SPS Law follo ws the provisions of Article 5 of the WTO 
SPS Agreement. 
ix) Article 6 of Saudi Arabia's SPS Law fo llows the provisions of Article 6 of the 
SPS Agreement. 
x) Articles 7 and 8 of Saudi Arabia's SPS La w follow the provisions of Articles 7 and 8 
of the SPS Agreement. 
222. In response to a comment from a member of th e Working Party, the representative of Saudi 
Arabia confirmed that Saudi measures regarding GM Os complied with relevant WTO obligations and 
were in place only to the extent necessary to protect hum an, animal or plant life or health.  He further 
stated that Saudi Arabia does not prevent impor ts of GMO products; it has only imposed GMO import 
labelling requirement that is cove red by Article 2 of the TBT Agreement.  The purpose of the Saudi WT/ACC/SPEC/SAU/4/Rev.4 
Page 78  
 
 regime is to ensure that consumers are informed  regarding the nature of the products they are 
purchasing.  He noted that labelling is perhaps th e most widely accepted and least disruptive means 
for ensuring consumers have information about the pr oducts available on the market so that they can 
make informed purchasing decisions.  He further c onfirmed that genetically modified products could 
be certified in the country of origin on the basis of  consumption or use, provided that they would be 
imported into Saudi Arabia for the same purpose.  In  response to a further question from a member of 
the Working Party, he stated that SASO currently  is studying the introduction of labelling requirement 
specifications for GMO products and plans to invite  experts from various countries to participate in 
Saudi Arabia in a round-table discussion.  Followi ng the discussion, SASO will decide whether to:  
(i) maintain the current regime; (ii) abolish labe lling requirements altogether; or (iii) adopt voluntary 
labelling. 
223. One member of the Working Party asked as to the identity of the operational enquiry point for 
the SPS Agreement.  The representative of Saudi Arab ia reported that the Ministry of Commerce and 
Industry would serve this function (Post Offi ce Box 11162, Riyadh, Kingdom of Saudi Arabia; 
telephone number 966-14-027-574; www.commerce.gov.sa
). 
224. The representative of Saudi Arabia stated th at Saudi Arabia's sanitary and phytosanitary 
standards system would be in compliance with WTO provisions under the  Agreement on the 
Application of Sanitary and Phytosanitary Measur es as of the date of accession to the WTO, and that 
Saudi Arabia would apply all measures of the  Agreement on the Application of Sanitary and 
Phytosanitary Measures in the least trade-di storting manner from the date of accession without 
recourse to any transition period.  The Working Party took note of these commitments. 
- Trade Related Investment Measures 
225. Some members of the Working Party congratulated  Saudi Arabia on its generally very liberal 
investment regime and asked whether there were any measures in place in Saudi Arabia that were 
inconsistent with the requirements of the  Agreement on Trade Related Investment Measures (TRIMs).  
In response, the representative of Saudi Arabia stated that there were no measures in place in 
Saudi Arabia that were inconsiste nt with the requirements of the  Agreement on Trade Related 
Investment Measures (TRIMs).  He noted that in  particular, there were no measures in place in 
Saudi Arabia that were of the kind described in the "Illustrative List" in the Annex to the  Agreement 
on TRIMs.  Some members of the Working Party enquired whether Saudi Arabia imposed any transfer requirements in relation to technical or management know-how or upon foreign investors.  In 
response, the representative of Saudi Arabia stated  that no precise requirements on such transfers had  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 79 
 
 
 been specified, although any such requirements in the services sector would be in conformity with 
Saudi Arabia's Schedule of Commitments on Services. 
226. The representative of Saudi Arabia stated that Saudi Arabia would not maintain any measures 
inconsistent with the TRIMs  Agreement and would apply the TRIMs  Agreement from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment. 
- State Trading 
227. Some members of the Working Party asked the representative of Saudi Arabia whether there 
were any enterprises operating within the Kingdom of  Saudi Arabia that enjoyed any exclusive or 
special privileges within the terms of the defi nition set down in Article XVII of GATT 1994.  In 
response, the representative of Saudi Arabia stated that the Grain Silos and Flour Mills Organization 
(GSFMO) was established by a Royal Decree in Fe bruary 1973 to support the development of the 
domestic agricultural sector, particularly wheat pr oduction for national security reasons, by forming a 
grain storage and flour production conglomerate, as well as by creating a stable market for grains in order to safeguard farmers from price fluctuations .  Wheat flour produced by GSFMO was subject to 
price controls for the aim of providing all people (especially the poor) with a stable, low-cost food 
source.  GSFMO had been the only organization allowe d to import grains, flour and animal feed.  The 
import regime for these products had now been libera lized; importers in the private sector now could 
import these products.  GSFMO no longer imports th ese products.  In response to a question, the 
representative of Saudi Arabia stated that 18 private firms were importing these products following 
the termination of GSFMO monopoly.  Saudi Arabia confirmed that GSFMO was no longer a state-trading import enterprise.  In response to a qu estion from a member of the Working Party, the 
representative confirmed that wheat imports did not require a GSFMO permit. 
228. A member of the Working Party inquired as to the medium-term direction of Saudi Arabia's 
policies regarding grain supports and trade.  In r esponse, the representative stated that Saudi Arabia 
was committed to further liberalising this sector.  He further noted that the World Bank was now 
studying a comprehensive plan for full divestiture of the GSFMO.  
229. The representative of Saudi Arabia confirmed that, after accession to the WTO, Saudi Arabia 
would observe WTO provisions concerning grain supports and state trading, in particular, 
Article XVII of the GATT 1994, the WTO Understa nding on that Article, and Article VIII of the 
GATS regarding state trading, with respect to th e state-owned enterprises and other enterprises and 
entities with special or exclusive privileges identified above, in par ticular abiding by the provisions WT/ACC/SPEC/SAU/4/Rev.4 
Page 80  
 
 for notification, non-discrimination, and the app lication of commercial considerations for trade 
transactions.  The Working Party took note of these commitments. 
- Free Zones 
230. In response to questions from members of th e Working Party, the representative of Saudi 
Arabia stated that, although there were no free z ones or free economic zones established or operating 
in Saudi Arabia, Articles 77-88 of the GCC Unifie d Customs Law permitted the establishment of such 
zones.   
231. The representative of Saudi Arabia stated free zones or special economic zones were 
established, Saudi Arabia would administer them in compliance with WTO provisions, including those addressing subsidies, TRIMs and TRIPS, a nd that goods produced in these zones under tax and 
tariff provisions that exempt imports and importe d 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.   The Working Party took note of these commitments. 
- Trade in Transit 
232. The representative of Saudi Arabia informed th e Working Party that goods in transit through 
Saudi Arabia received duty free treatment under Articles 69-73 of the Common Customs Law of the 
GCC member states which was applicable in Saudi  Arabia.  The Kingdom's policy regarding goods in 
transit was to allow them to be transported thr ough Saudi Arabia without any discrimination as to the 
kind of goods or their origin or destination.  He said that goods transiting Saudi Arabia bound for 
other countries were subject to the following conditions: 
i. Banned goods were prohibited to tran sit Saudi Arabia, according to the GCC 
Common Customs Law. 
ii. The types and marks of the goods should be specified in the accompanying manifest.   
iii. The goods should be transported in m odular containers having only one access and 
duly equipped with a lock to allow e ffective placement of Customs seals; the 
Customs seal should not be broken. 
iv. Transit of the consignment across Saudi Ar abia must be covered by the guarantee of a 
customs broker at the port of entry. 
v. The consignment must exit within the period specified by the port of entry. 
233. In response to a question from a member of th e Working Party, the representative of Saudi 
Arabia stated that the guarantee of the customs broker is necessary to ensure that the goods actually 
leave Saudi Arabia; there is no fee for the guarantee.  Also, he reported that, in Saudi Arabia, transit 
does not require escort.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 81 
 
 
 234. In response to a question from a member of  the Working Party, the representative from 
Saudi Arabia confirmed that Saudi Arabia's law and practice governing trade in transit would be 
applied in full conformity with the provisions of the WTO  Agreement, in particular Article V of 
GATT 1994.  The Working Party took note of this commitment.   
- Agricultural Policy 
235. The representative of Saudi Arabia provided in formation on its agriculture sector, including 
tables on domestic support and e xport subsidies in documents WT/ACC/SAU/19 and 28, and 
WT/ACC/SPEC/SAU/1/Rev.6 and Corr.1. 
236. Some members of the Working Party requested that Saudi Arabia provide detailed 
information on the role of the Saudi Agricultural Bank,  in particular in the area of its mandate with 
regard to providing agricultural loans and subsidies.   In response, the representative of Saudi Arabia 
stated that the Saudi Arabian Agricultural Bank (SAAB) was founded by the Royal Decree No. 58 of 
3.12.1382.  It was a government financial ins titution specializing in providing funding to the 
agricultural sector in order to assist in the deve lopment of agriculture, and improve agricultural 
productivity through the deployment of state of th e art scientific and technical methods.  The Bank 
granted loans through 13 branches, with 57 offices throughout the Kingdom in order to facilitate 
provision of services to farmers in their regions.  The Bank grants farmers, agricultural projects, 
fishermen, bee keepers and farm cooperatives two types of agricultural loans free of interest.  
However, there were unseen costs borne by agricu ltural investors in order to acquire a loan from 
SAAB.  These costs were reflected in the number and amount of loans shown in the table below.  The 
time needed to process the application and approve th e loan was long due to bureaucratic formalities.  
Therefore, the opportunity costs for agricultural loans were very low. 
Year No. Total Amounts 
(Thousand SAR) 
1992 4374 775,150 
1993 4429 930,561 
1994 3822 670,556 
1995 2642 412,589 
1996 3065 431,708 
1997 3942 626,956 
1998 5607 897,310 
1999 6628 903,010 
2000 6147 1,112,221 
2001 8037 1,444,925 
Source:  Saudi Arabian Agricultural Bank, Annual Report No. 38, 1421/1422 (2001). 
237. He confirmed that the total "agricultural subsidies" package had been notified under non-
product-specific support on supporting Table DS:9 of th e domestic support tables.  He added that the WT/ACC/SPEC/SAU/4/Rev.4 
Page 82  
 
 Bank had also been responsible for the disbursemen t of a package of agricultural subsidies incurred 
by the government towards reduction of agricultura l expenditures in order to increase the average 
return on agricultural production.  These subsidies included: engines, irrigation pumps, agricultural 
machinery, poultry equipment, dairy production equipment; in addition, transport costs from the country of origin of high-breed cows imported to  the Kingdom were also paid.  The following table 
shows total agricultural subsidies disbur sed through the bank during the period 1992-2001: 
Year Total subsidies (Thousands SAR) 
(US$ 1 = SAR 3.75) 
1992 677,902 
1993 248,624 
1994 355,434 
1995 0 (no subsidies) 
1996 296,937 
1997 229,376 
1998 225,492 
1999 197,358 
2000 228,960 
2001 249,880 
Source:  Saudi Arabian Agricultural Bank, The Annual Report, No: 38, 1421/1422 (2001). 
238. In response to further questions, the representative of Saudi Arabia stated that in pursuance of 
the current Development Plan, Saudi Arabia woul d distribute land in areas where suitable quantities 
of water resources were available.  Investment woul d be encouraged in large agricultural projects that 
depend on renewable water resources,  using modern irrigation systems that consume low quantities of 
water.  Domestic production of vegetables and fru its grown in green-houses would be encouraged, as 
would the fishing industry using advanced technol ogy.  As planned, wheat production was gradually 
reduced from more than 4 million tons before 1994 to 2.8 million tons in 1994, 2 million tons in 1998 
and 1.8 million tons in 2001.  The production of ba rley was also reduced from 2 million tons in 
1994-1995 to 1 million tons in 1998, and to less than  200,000 tons in 2001.  Domestically produced 
barley was purchased by the GSFMO, and then sold  to livestock producers at the fixed price of SAR 
400/ton (US$ 107/ton).  The representative of Saudi Arabia stated that GSFMO stopped receiving domestic barley according to Royal Decree No. 4/B/49434 of 8.12.1423H (10 February 2003).  The 
farmers were advised to convert to ot her products that consume less water. 
239. Some members of the Working Party asked whet her there was any support to the dairy sector.  
In response, the representative of Saudi Arabia stat ed that there was no specific support for the dairy 
sector, except for transportation cost of the importe d cows under special conditions.  He added that 
the specific support for the dairy sector was included in the agricultural subsidies listed in Paragraph 
227 of the Working Party Report, as well as in supporting Tables DS:7 and DS:9.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 83 
 
 
 240. In response to questions concerning the provisi on of irrigation water for crop production, the 
representative of Saudi Arabia stated that irriga tion water for crop production was provided by private 
farmers, and not by the Government.  He noted that there were no subsidies associated with the 
running of irrigation equipment. 
241. Some members of the Working Party requested th at the representative of Saudi Arabia clarify 
the role of the GSFMO in the export and subsidiza tion of wheat.  In response, the representative of 
Saudi Arabia stated that since 1995 the GSFMO had not exported wheat or barley.  Export controls 
were maintained for subsidized wheat and barley  through export licenses.  In response to further 
questions, he added that the expor tation of date palm seedlings, barley, corn, maize and soy beans was 
conditional upon the repayment of subsidies in tended for the support of domestic production. 
242. Saudi Arabia's commitments on [agricultural ta riffs on] domestic support and export subsidies 
for agricultural products are contained in the Schedule of Concessions and Commitments on Goods 
(document WT/ACC/   ) annexed to Saudi  Arabia's draft Protocol of Accession. 
- Trade in Civil Aircraft 
243. Some members of the Working Party asked th at Saudi Arabia enter a commitment to accede 
to the  Agreement on Civil Aircraft from the date of entr y into force of its Protocol of Accession.  In 
response, the representative of Saudi Arabia stated  that Saudi Arabia had no present intention to 
accede to the  Agreement on Civil Aircraft. 
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME - General 
- Industrial Property Protection  
244. The representative of Saudi Arabia confirme d that the policy objective in the area of 
intellectual property was to provide effective and ad equate protection to all categories of intellectual 
property in conformity with the provisions of the  Agreement on Trade-Related Aspects of Intellectual 
Property Rights.  In addition to the Memorandum on the Foreign Trade Regime, the representative of 
Saudi Arabia provided the Working Party with  a Supplementary Memorandum on Trade Related 
Intellectual Property Rights (WT/ACC/SAU/5).  The representative of Saudi Arabia provided the Working Party with the texts of the Trademarks  Regulations, Patents Law and the Law for the 
Protection of Copyrights (L/7645/Add.1). WT/ACC/SPEC/SAU/4/Rev.4 
Page 84  
 
 245. Some members of the Working Party congratulat ed Saudi Arabia on its generally high level 
of protection of intellectual property rights.  They noted that Saudi Arabia had taken significant steps 
towards making its trade regime fully consistent with the  Agreement on Trade Related Aspects of 
Intellectual Property Rights (TRIPS), but that some  problems remained.  Some members asked that 
Saudi Arabia take immediate steps to address probl ems in its intellectual property regime, and asked 
also that Saudi Arabia commit itself to full implementation of the TRIPS  Agreement without a 
transitional period.  In particular, some members of the Working Party expressed concerns in relation 
to the protection of copyrights; the duration of pate nt protection; protection of plant varieties; length 
of time before compulsory licensing and working requirements were applied; protection for sound 
recordings and audiovisual works; protection fo r broadcasts and satellite transmission; explicit 
protection for computer software programs; implem entation of Articles 1-21 of the Berne Convention; 
and the protection of well-known marks.  In respon se, the Representative of Saudi Arabia reaffirmed 
Saudi Arabia's commitment to meeting the obligations of the TRIPS  Agreement and provided 
additional relevant information as set forth below. 
- Agencies Responsible for Policy Formulation and Implementation 
246. In response to questions from members of the Working Party, the representative of 
Saudi Arabia confirmed that different Saudi ag encies were responsible for different aspects of 
intellectual property formulation and implementati on, depending on the precise nature of the issue 
involved.  For example, the Ministry of Commer ce and Industry was responsible for implementing the 
Trade Marks Law and for formulating and impl ementing policy regarding the protection of 
undisclosed information, pursuant to the Compani es Law, the Labour Law, the Banking Control Law 
and the new Unfair Competition Law, currently under consideration, that would deal comprehensively 
with this issue.  He further stated that the King Abdulaziz City for Science and Technology (KACST) 
was responsible for implementing the Law on Patents,  Industrial Designs, Plant Varieties and Layout 
Designs of Integrated Circuits.  He added that  the Ministry of Culture and Information was 
responsible for implementing the Copyright Law. 
- Membership in International Intellectual Property Conventions 
247. In response to questions from the members of  the Working Party, The representative of 
Saudi Arabia confirmed that Saudi Arabia was a member of a number of intellectual property 
conventions, including: 
i. The Convention Establishing the WIPO. 
ii. The Berne Convention. iii. The Paris Convention.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 85 
 
 
 iv. The Universal Copyright Convention. 
v. The Arab Regional Copyright and Related Rights Agreement. 
- Application of MFN and National Treatment to Foreign Nationals 
248. In response to a question from the members of  the Working Party, the representative of 
Saudi Arabia stated that the Kingdom provided MF N and National Treatment in accordance with the 
provisions of Articles 3 and 4 of the TRIPS  Agreement. 
- Fees and Taxes 
249. In response to a question from members of the Working Party, the representative of 
Saudi Arabia gave the following information on fees and charges: 
- Copyrights 
250. No fees or charges. 
- Patents 
Individuals Companies  
SAR SAR 
Application Fee 400 800 
Patent Grant and Publication 500 1,000 
Annual Fees 400 800 
Amendments/Additions to 
Patent Applications 100 200 
Change of Ownership 200 400 
Certified Copies from Register 50 100 
Grant of Compulsory Licence 4,000 8,000 
Registering Licence Agreement 400 800 
 
- -Trade Marks, Including Service Marks 
-  Application Fee:     SAR 1,000 
-  Registration Fee:     SAR 3,000 
-  Renewal of Registration:    SAR 3,000 
-  Changes or Modifications to Registration:  SAR 1,000 
-  Late Fee for Delayed Renewal (w/i 6 mos.):  SAR 1,000 WT/ACC/SPEC/SAU/4/Rev.4 
Page 86  
 
 - Substantive Standards of Protection, Incl uding Procedures for the Acquisition and 
Maintenance of Intellectual Property Rights 
- Copyright 
251. With reference to copyright, some member s of the Working Party considered that 
Saudi Arabia's laws did not fully reflect its obliga tions under the Universal Copyright Convention.  In 
addition, the provisions of the Saudi laws di d not provide protection for sound recordings.  
Saudi Arabia had not yet joined the Berne, Pari s, or Geneva Phonograms Conventions.  Membership 
in such multilateral intellectual property  Agreements demonstrated a strong commitment to protection 
and supports local enforcement.  Other apparent defi ciencies included the fact that there were no laws 
that protect broadcasts and satellite transmissions, and that the term of protection for audiovisual 
works was 25 years, not 50 years as called for in the TRIPS  Agreement.  Saudi Arabia's laws also 
appeared to lack sufficient legal penalties to deter pi racy, e.g., substantial fines or prison sentences.  In 
response, the representative of Saudi Arabia stated that Saudi Arabia's intellectual property regime 
would be brought into full conformity with the requirements of the  Agreement on TRIPS, from the 
date of Saudi Arabia's accession to the WTO.  In document WT/ACC/SAU/39, the representative of 
Saudi Arabia provided members of the Working Party with a detailed plan on the steps being taken to 
ensure full implementation of the TRIPS  Agreement according to the Ac tion Plan.  The representative 
stated that Saudi Arabia had joined the Berne and Paris Conventions. 
252. In response to questions from members of the Working Party, the representative of 
Saudi Arabia stated that ongoing reviews of the WT O conformity of Saudi law had so far revealed 
that there were some areas of incompatibility th at would need to be rectified either through 
amendment of existing legislation or enactment of new laws.  It would also be necessary to introduce 
the administrative machinery to ensu re the enforcement of TRIPS sta ndards.  Later, the representative 
of Saudi Arabia informed Working Party members that Saudi Arabia had enacted a new Copyright 
Law (Royal Decree M/41 (30 August 2003)), which was in full conformity with the provisions of the 
TRIPS  Agreement.  The new Copyright Law was issued vide Council of Ministers' Decision of 
9 June 2003.  The main features of the new Law we re:  (1) more explicit protection for computer 
software and data bases; (2) more specific protec tion to audio-visual works and sound recordings, 
including protection for 50 years; (3) legal use of foreign works such as translations and copying 
would be clarified according to the TRIPS  Agreement; (4) duration of protection of all artistic and 
literary works would be provided according to the re quirements of the Berne Convention.  In the area 
of enforcement, the new Law provided in detail for all types of infringements and piracies and 
strengthened penalties (including provisions for:  (i) imprisonment of up to six months (which can be 
doubled for repeat offenders); (ii) a maximum fine  of SAR 250,000 (which can be doubled for repeat  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 87 
 
 
 offenders); and (iii) compensation for damages and defamation due to the conduct of the violator) to 
meet the requirements of the TRIPS  Agreement.  In response to a question from a member of the 
Working Party, the representative of Saudi Arabia reported that the implementing regulations had not 
yet been promulgated.  He said that, as soon as th e regulations were available, a copy would be 
provided to the Secretariat and they would be transl ated into English and posted on the internet by the 
Ministry of Culture and Information.  
- Patents 
253. Concerning patents, the representative of Saudi Arabia noted that in general, patentable 
subject matter in Saudi Arabia was consistent  with the requirements of Section 5 of the 
TRIPS  Agreement.  Processes (methods of manufacturing) were patentable, and were protected from 
infringing use.  Plant varieties were not currently patentable, even though the TRIPS  Agreement 
required the protection of plant varieties (Article 27(3)).  The representative of Saudi Arabia stated 
that the protection of plant varieties would be provided in accordance with the provisions of Article 27(3)(b) of the TRIPS  Agreement.  Patent holders in Saudi Arabia would be accorded the 
rights mentioned in Article 28 of TRIPS.  A patent  holder was required to make full industrial use of 
the patent in Saudi Arabia within two years.  Although the current Patent Law conferred a term of 
protection of 15 years with the possibility of a five year extension, the representative of Saudi Arabia stated that it was foreseen that the period of protection for nationals of WTO Members, could be automatically granted a five year extension after the elapse of the initial 15-year protection period.  
The representative of Saudi Arabia confirmed that amendments of the Patent Law would include a 
term of protection of 20 years. 
254. As to compulsory licensing, the representative of  Saudi Arabia stated that the amendment of 
the Patent Law would conform national law and pr actice to the requirements of Article 31 of the 
TRIPS  Agreement.  The review of the Patent Law had revealed that, in comparison with Article 27(3) 
of the TRIPS  Agreement, the exclusion of patentability contained in paragraphs (a) and (b) of 
Article (8) was in accordance with Article 27 (1) of the TRIPS  Agreement which limits the patentable 
inventions to those which were related to products  or processes; paragraph (c) of Article (8) was in 
full compliance with subparagraph (b ) of Article 27(3) of the TRIPS  Agreement except that paragraph 
(c) did not exclude "micro-organisms" from "plants and animals" and did not include "non-biological 
processes" as processes excluded from "biological processes for the production of plants and 
animals"; and that paragraph (d) of the Patent La w was in full compliance with sub-paragraph (a) of 
Article 27(3) of the TRIPS  Agreement.  The representative of Sa udi Arabia informed Working Party 
members that the draft Law was at an advanced stage in the legislative process.  He said that the draft WT/ACC/SPEC/SAU/4/Rev.4 
Page 88  
 
 Law was in full conformity with the provisions of the TRIPS  Agreement and included provisions not 
only on Patents, but also on Industrial Designs, Plan t Varieties and Layout Designs of Integrated 
Circuits. 
- Trademarks 
255. In response to requests for information c oncerning the protection of trademarks in 
Saudi Arabia, the representative of Saudi Arabia gave a description of various provisions of the 
existing Trade Marks Law and their relationship to the respective provisions of the TRIPS  Agreement.  
In response to questions from Working Party member s, he stated that geographical names could not 
be registered as a trademark under Saudi Arabia's  Trademarks Regulations if their use caused a 
misunderstanding as to the source of products or services, or their origin.  Since the production, sale, consumption and import of alcoholic  beverages were prohibited in the Kingdom for religious reasons, 
geographical indications of origin of wines and sp irits were not protected in Saudi Arabia.  Some 
members of the Working Party noted that the period of protection for a trademark when the requirement of use was not fulfilled was five year s, two years more than the period required by 
Article 19 of the  Agreement on TRIPS.  These members noted also that the initial and renewable 
period of period of protection for trademarks where the requirement of use was fulfilled was ten years, 
three years more than the period required by Article 18 of the  Agreement on TRIPS.  Later, the 
representative of Saudi Arabia stated that a ne w WTO-consistent Trade Marks Law (Royal Decree 
M/21) was issued vide Council of Ministers'  Decision No. 140 of 5 August 2002, to bring 
Saudi Arabia's trademarks regime into co mpliance with the provisions of the TRIPS  Agreement.  In 
response to a question, the representative confir med that Royal Decree M/21, implemented by 
Council of Ministers Decision No. 140, was the only la w in effect regarding trademarks; this law had 
superseded all other laws on trademarks. 
- Geographical Indications, Including Appellations of Origin 
256. Members of the Working Party asked for details regarding Saudi Arabia treatment of 
geographical indications.  In response, the represen tative of Saudi Arabia stated that the new WTO-
consistent Trade Marks Law, which also containe d provisions regarding geographic indications, was 
issued vide Council of Ministers' Decision No. 140 of 5 August 2002.  The new Trade Marks Law, he 
said, was consistent with WTO TRIPS  Agreement and contained provisions on protection of 
geographical indications.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 89 
 
 
 - Industrial Designs 
257. In response to requests for information con cerning the protection available for industrial 
designs, the representative of Saudi Arabia responded that industrial designs would be protected by 
the industrial designs provisions in the draft Law on Patents, Industrial Designs, Plant Varieties and 
Layout Designs of Integrated Circuits, to be implemented by The King Abdulaziz City for Science 
and Technology (KACST).   
- Layout Designs of Integrated Circuits 
258. In response to requests for information concerni ng the protection available for layout designs, 
the representative of Saudi Arabia noted that protecti on of layout designs of integrated circuits was 
covered by the draft Law on Patents, Industrial Designs, Plant Varieties and Layout Designs of 
Integrated Circuits, consis tent with WTO obligations. 
- Plant Variety Protection 
259. In response to questions from members of the Working Party, the representative of 
Saudi Arabia stated that protection of plant va rieties was provided by the draft Law on Patents, 
Industrial Designs, Plant Varieties and La yout Designs of Integrated Circuits. 
- Undisclosed Information 
260. Some members of the Working Party requested  information on the protection available for 
undisclosed information.  The representative of Saudi Arabia stated that although undisclosed 
information was currently protected by the Comp anies Law, Labour Law and Banks Control Law, 
work was underway to prepare an Unfair Competition Law that would deal comprehensively with this 
issue.  That law would be implemented by the Ministry of Commerce and Industry.  He added that anti-competitive practices would be covered by the law as well. 
- Enforcement 
261. Some members of the Working Party noted the steps being taken by Saudi Arabia to eliminate 
some problems in the area of enforcement, in par ticular the piracy of intellectual property.  The 
members noted that it was clear that much of th e necessary legislation was in place, but that Saudi 
Arabia was experiencing difficulty in fully im plementing and enforcing the new laws.  These 
members of the Working Party urged Saudi Arabia to work towards full conformity with 
the Agreement on TRIPS from the date of Saudi Arabia's accession to the WTO.   WT/ACC/SPEC/SAU/4/Rev.4 
Page 90  
 
 262. In response to a further comment by a member  of the Working Party, the representative of 
Saudi Arabia clarified that Saudi Customs was not  directly responsible for enforcing Saudi laws 
regarding copyrights.  Rather, he said, this was enfo rced by the Ministry of Culture and Information, 
which maintained an office in each customs entry point solely for the purpose of enforcing the 
Copyright Law.  At each point of entry, Customs would bring to the Ministry office a sample of any shipment subject to possible copyright infringement.  Article 22 of the Copyright Law established a 
three-step procedure:  Step 1, provisional seizure; Step 2, confiscation; Step 3, destruction and 
imposition of penalties, if the good were found to viol ate the Copyright Law by the Violation Review 
Committee of the Ministry of Culture and Informa tion; if the goods were deemed to be in full 
compliance, the shipment would be released and allowed into the Kingdom.   
263. The representative of Saudi Arabia stated that it was the intention of Saudi Arabia to fully 
comply with the requirements of the  Agreement on TRIPS as soon as possible.  Much of the required 
legislation was already in place.  In addition, Shari'a provided significant protection of intellectual property rights.  Saudi Arabia was worki ng to codify all laws required by the  Agreements on TRIPS. 
264. In response to requests from members of the Working Party, the representative of 
Saudi Arabia stated that the Action Pl an for the Implementation of the TRIPS  Agreement presented in 
document WT/ACC/SAU/43 was being implemented.  Some TRIPS laws, for example, Trade Marks Law, including Geographical Indications, Copyright  Law and the GCC Patent Law (applicable to 
Saudi Arabia also) had already been enacted, while other IP laws, including the draft Law on Patents, 
Industrial Designs, Plant Varieties and Layout Designs  of Integrated Circuits, were at an advanced 
stage in the legislative process and would soon be enacted. 
265. In response to a request from a member of th e Working Party, the representative of Saudi 
Arabia presented the information set fort h below under the following five headings. 
- General Obligations  
266. Regarding General Obligations, the representa tive of Saudi Arabia stated that Saudi 
intellectual property laws include provisions for the enforcement of the rights they provide in compliance with the provisions of the TRIPS Agr eement.  The Copyright Law, the Trademark Law 
and the proposed Law on Patents, Layout Designs of Integrated Circuits, Plant Varieties and 
Industrial Designs each contain enforcement provisions.  He further stated that the Law of the Board 
of Grievances (the administrative judiciary of Saudi  Arabia), the Rules and Procedures of the Board 
of Grievances and the proposed Border Measures Regul ations related to IPR also contain provisions 
regarding enforcement.  The laws, he said, cont ain provisions guaranteeing fairness and equity, while  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 91 
 
 
 still providing for robust enforcement.  The laws al so provide for further appeal to the Board of 
Grievances to contest the decisions of the admi nistrative bodies.  Under these laws, he reported, 
administrative and judicial decisions were requi red to be in writing and well-reasoned.  All 
administrative and judicial procedures, including the Board of Grievances procedures, were free of cost.    
- Civil and Administrative Procedures  
267. In addition to the material presented in the preceding paragraph, the representative of Saudi 
Arabia confirmed that, with regard to civil and administrative procedures, the laws mentioned above, 
as well as associated implementing regulations, implemented the requirements of Section 2 of Part III the TRIPS Agreement.  For example, he said, Artic le 22(iv) of the Copyright Law and Articles 48 and 
51 of the Trademark Law complied with TRIPS Agreement provisions regarding damages and 
compensation (Article 45 of the TRIPS Agreement). 
- Provisional Measures 
268. Regarding provisional measures, the representativ e of Saudi Arabia informed the Working 
Party that Articles 49-51 of the Trademark Law a nd Articles 22 and 24 of the Copyright Law provide 
for provisional measures.  These provisions, he assure d the members, are in compliance with Section 
3 of Part III of the TRIPS Agreement. 
- Special Requirements Related to Border Measures  
269. In response to comments concerning the enfor cement of border measures, the representative 
of Saudi Arabia stated that border measures in Saudi Arabia were broadly consistent with the 
provisions of the TRIPS  Agreement which authorized judicial  or administrative bodies to issue a 
provisional seizure decision pursuant to Article 22.7 of the Copyright Law and Article 49 of the Trade 
Marks Law.  Moreover, Customs authorities, in coordination with the Ministry of Commerce and Industry and the Ministry of Culture and Inform ation, seized consignments infringing intellectual 
property rights, according to the applicable laws in Saudi Arabia.  In connection with the enforcement 
of border measures, Saudi Customs was in the pr ocess of establishing an internal IPR Unit, which 
would create a database for Customs' use to assist with enforcement against forged and counterfeit 
goods.   
270. The representative of Saudi Arabia reported that the issue of special requirements related to 
border measures would be covered by the pr oposed Border Measures Regulations and the WT/ACC/SPEC/SAU/4/Rev.4 
Page 92  
 
 Implementing Regulation of the Copyright Law.  He reported that these provisions would comply 
fully with Section 4 of Part III of the TRIPS Agreement. 
- Criminal Procedures 
271. With regard to criminal procedures, the represen tative of Saudi Arabia stated that they were 
addressed by Article 22 of the Copyright law and Articles 43-45 of the Trademark Law.  These provisions, he confirmed, complied with Sec tion 5 of Part III of the TRIPS Agreement. 
272. The representative of Saudi Arabia stated that Saudi Arabia would apply fully all the 
provisions of the  Agreement on Trade-Related Aspects of Intellectual Property Rights from the date 
of accession to the WTO, without recourse to any transition period.  The Working Party took note of this commitment. 
VI. POLICIES AFFECTING TRADE IN SERVICES 
273. In addition to the Memorandum on the Foreign Trade Regime, the representative of 
Saudi Arabia provided the Working Party with info rmation on the services regime in Saudi Arabia in 
a Supplementary Memorandum on the Foreign Trade Regime, (WT/ACC/SAU/5), as well as supplementary background notes and informa tion in documents WT/ACC/SAU/23 and 24. 
274. Some members of the Working Party congratulated Saudi Arabia on its very liberal services 
regime.  They noted, in particular, the high numbe r of foreign workers and service providers already 
supplying services within Saudi Arabia.  
275. Some members of the Working Party requested clarification of the roles of various 
government agencies in the approval of new investme nts of foreign capital in the services sector.  In 
response, the representative of Saudi Arabia stated th at all foreign investment was to be approved by 
the newly created Saudi Arabian General Investment Authority (SAGIA) as a one-stop shop, except those activities listed in the negative list or wher e the power to license was assigned to an agency 
other than SAGIA. 
276. Some members of the Working Party requested information on the regulation of the financial 
services sector and in particular requested inform ation on the conditions under which a foreign bank 
could obtain a licence to establish a branch within Saudi Arabia.  In response, the representative of 
Saudi Arabia stated that banking firms' activities we re regulated by the Banking Control Law.  Under 
Article 2 of the Banking Control Law, a natural or  legal person was required to have a license to 
engage in a banking business.  U nder Article 3 of the Law, the licensing requirements for a Saudi  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 93 
 
 
 national bank stipulated, inter alia , that it must be a Saudi joint stock company.  This included joint 
venture banks.  A foreign bank coul d be granted a licence to establish branches in Saudi Arabia if it 
satisfied the conditions determined by the C ouncil of Ministers upon the recommendation of the 
Minister of Finance.  The representative of Saudi  Arabia added that the Saudi Arabian Monetary 
Agency (SAMA) always acted consistently with the requirements of Articles XVI and XVII of the 
GATS when considering an application for a new licence.  Upon the recommendation of the 
Saudi Arabian Monetary Agency, the Minister of Finance and the Council of Ministers would 
evaluate the recommendation taking into account  the following objective considerations: the 
macroeconomic needs of the financial and banki ng system; the development of new products and 
services; the level of existing competition in the mark et; the benefits to the consumer; the introduction 
of new technologies; the impact on the financial stability and soundness of the banking system; the 
professional and business standing of the founders and members of the Board of Directors; and the 
capital adequacy of the proposed enterprise. 
277. He further added that Saudi Arabia provided for a wide range of judicial, arbitral and 
administrative procedures with respect to trade in services.  Saudi Arabia had administrative 
procedures for the review of administrative decisions affecting trade in services.  Such decisions could 
be appealed to the Board of Grievances under the Council of Ministers Resolution No. 190 of 16.11.1409H Concerning Rules and Procedures of the Board of Grievances and the Board of Grievances Law.  Commercial disputes were generally  covered by the Board of Grievances and some 
other standing and ad hoc committees.  Some memb ers of the Working Party asked the representative 
of Saudi Arabia to provide information on the revi ew of decisions concerning the licensing of service 
providers in Saudi Arabia.  In response, the repr esentative of Saudi Arabia stated that a number of 
Ministries and Agencies were involved in approval of  the right to provide a service in Saudi Arabia; 
for example: the Ministry of Commerce and Indus try for engineers, legal practitioners, accountants 
and insurers; the Ministry of Defence and Aviation for civil aviation, tourism and travel agents; the 
General Organization for Technical Education and Occupational Training for technical institutes and 
national occupational centres; the Ministry of Hea lth for medical practitioners, pharmacists, hospitals; 
the Ministry of Communications for maritime transport; and the Saudi Arabian Monetary Agency for 
banks and cooperative insurance companies.  In all cases, the Ministries and Agencies involved had 
internal standing committees of senior officials to re view initial administrative decisions pertaining to 
licensing.  Decisions of standing committees could be appealed to the responsible Minister or Agency 
head.  Administrative Decisions involving potentia l civil suits against the government could be 
brought before the Board of Grievances. WT/ACC/SPEC/SAU/4/Rev.4 
Page 94  
 
 278. In response to requests for information on the na ture and extent of incentives, tax exemptions 
and subsidies available to service providers in Saudi Arabia, on a national treatment basis, the 
representative of Saudi Arabia stated that no tax ho lidays were now available within the new Foreign 
Investment Regulations of April 2000.   
279. In response to requests for information concerning restrictions on the provision of 
professional services, the representative of Saudi Ar abia stated that all professional services were 
treated in the same manner.  A licence was required to provide professional services.  To be eligible 
for a licence the company was required to be: reput able and well recognized in the field of its 
profession; to have been registered and successfully prac tising in the field for at least ten years; and to 
be prepared to participate in the training a nd the building of Saudi nationals' experience and 
introducing relevant technology.  In addition, the fo reign company should employ or have at least one 
representative in Saudi Arabia.  That representative should stay in Saudi Arabia for a period not less 
than nine months per year; have at least a university  degree in the field of the company specialization; 
and have not less than ten years experience su ccessfully.  In response to requests for further 
information concerning the conditions required to be fulfilled in order to be eligible for grant of a 
licence, the representative of Saudi Arabia stated that a foreign company would be considered as 
reputable, well recognized and practising in the field successfully if it was registered under the companies law of its home country, was certified as fi nancially viable by its bankers, produced copies 
of audited balance sheets for the last two years,  produced a list of previous contracts/assignments, 
outside Saudi Arabia, certified by the Chamber of Commerce and Industry in the company's home 
country, and also produced certificates of satisfactory completion of assignments from former clients.  Concerning the participation in training and the introduction of technology, the applicant company 
should give an undertaking that it would trai n Saudi nationals and would introduce the new 
technologies and know-how that it employed in its home country.  He also added that the foreign 
existing companies already licensed to operate in Saudi  Arabia had a period of one year to fulfil those 
conditions.  If they do not do that, the licence may be cancelled.  New companies had to fulfil the 
conditions from the beginning of their business activities. 
280. Some members of the Working Party asked whet her Saudi Arabia planned to liberalise the 
limitations placed on the participation of foreigne rs in security underwriting, commodity brokerage 
services and currency exchange operations, as well as the limitations placed on the participation of 
foreigners in land transportation and professiona l services.  In response, the representative of 
Saudi Arabia stated that, although there were lim itations on the participa tion of both foreign and 
domestic individuals in providing security underwr iting, commodity brokerage services and currency  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 95 
 
 
 exchange operations, there were no such limita tions on domestic and foreign banks, except the 
requirements to be licensed.  There were no plans to liberalise those conditions. 
281. Some members of the Working Party asked wh ether there were any instances of less than 
national treatment for foreign service providers.  The representative of Saudi Arabia stated that only Saudi Arabian nationals were a llowed to participate in commerc ial agencies, customs clearance 
agencies, real estate agency, transportation (land based transport and coastal shipping services) and 
civilian security.  Postal services, radio and television transmission services were reserved to the 
State.  He further added that unde r Article 8 of the Unified Economic  Agreement of the Gulf 
Cooperation Council, national treatment was provi ded for Gulf Cooperati on Council nationals in, 
among other things, freedom of movement, work and residence, right of ownership and freedom of 
exercising economic activity, including service activities and free movement of capital.  Saudi Arabia, 
together with the other Gulf Cooperation Council members, was in the process of implementing 
this Agreement.  In addition, some bilateral  Agreements signed by Saudi Arabia conferred preferred 
or reciprocal supplier status on companies from signa tory countries with regard to certain services.  
 Agreements with Egypt and Jordan conferred reci procal supplier status for cross-border truck and 
public transportation vehicles;  Agreements with Egypt and Tunisia granted preference to national 
shipping and transport modes in bilateral trade;  Agreements with Lebanon, Syria and Turkey provided 
for reciprocal treatment with regard to transportation and transport vehicles; and an  Agreement with 
Morocco included reciprocal airline privileges. 
282. In response to requests for information concer ning the rules governing temporary residence in 
Saudi Arabia by foreigners, the representative of Sa udi Arabia stated that the Law of Residency was 
enforced by the Ministry of Interior.  In addition,  the Ministry of Labour approved applications for the 
presence of foreigners who work or were given licen ce to practice work in the private sector.  Some 
members of the Working Party requested information on the system followed for employment of 
foreign employees and investors.  The representativ e of Saudi Arabia stated that once a foreign 
employee was offered a contract, a visa would be gran ted.  Business visitors would, however, require 
a letter or invitation or a copy of the relationship or  Agreement with a Saudi party. 
283. In response to questions concerning the limita tions placed upon the total number of natural 
persons employed in particular sectors, the represen tative of Saudi Arabia stated that as a matter of 
principle, work was considered a Saudi citizen's  right.  Consequently, a foreigner would not be 
employed when to do so would displace a Saudi worker.  The Labour and Workers Regulations required that any enterprise, Saudi or foreign owned,  would ensure that the percentage of the Saudi 
workers engaged by the employer should not be less than 75 per cent of the total workforce.  WT/ACC/SPEC/SAU/4/Rev.4 
Page 96  
 
 However, the Regulations also permitted the Minister  of Labour to reduce the required percentage in 
circumstances where qualified Saudi workers were not available.  Foreign workers were required to 
obtain work permits from the Ministry of Labour, a nd an application for a permit was required to be 
accompanied by a submission from the proposed employer confirming the non-availability of qualified Saudis for the work.  All service providers' activities, regardless of ownership were obliged 
to reserve certain positions for Saudis, including pe rsonnel officers, recruitment offers, receptionists, 
treasurers, civilian security guards, and transacti on follow-up clerks to government departments. 
284. Some members of the Working Party requested clarification of the qualification requirements 
and procedures for approval of foreign service pr oviders.  In response, the representative of 
Saudi Arabia stated that different categories of services required different types of approval.  For 
example, for medical services, the service provider should have a medical degree from a recognized 
institution.  For educational services, the ser vice provider should have adequate academic 
qualifications in the relevant disciplines from a university or a recognized institution.  For the 
provider of accounting and auditing service, the provider should be a certified accountant from a 
recognized institute.  In addition, all fore ign companies should possess the necessary technical 
expertise, financial capabilities, and occupational proficiency. 
285. In response to questions concerning restri ctions placed on foreign service providers 
procurement of business inputs, the representative of Saudi Arabia stated that all non-Saudi contractors must assign not less than 30 per cent of the works included in their contract to wholly-
owned Saudi companies.  All contractors were oblig ed to purchase the tools and equipment that they 
procure for performance of their contracts from Saudi agents for these tools and equipment in 
Saudi Arabia.  Contractors were required to obtain the following services from local Saudi establishments: transportation services for goods and ser vices within Saudi Arabia, (if the contractor 
did not perform this service by itself directly by  equipment owned by the business and with personnel 
directly employed by the business) banking services; services for the leasing and purchase of land and 
buildings; and catering services and supply of foodstuffs. 
286. Some members of the Working Party asked whether permission for a foreign owned service 
provider to own real property was automatic on ce the licence to engage in business activities as a 
foreign establishment in Saudi Arabia was obtained.  In response, the representative of Saudi Arabia 
stated that foreign establishments authorized to carry on their activities in the Kingdom under the 
Foreign Investment Law may own real estate only for a specific use related to the licensed project, in 
accordance with the rules on foreign ownership of real  estate.  The concerned Minister's approval of a  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 97 
 
 
 request to own real estate is a prerequisite before its review by a Ministerial Committee headed by the 
Minister of Interior.  
287. In response to questions from members of the Working Party, the representative of 
Saudi Arabia provided the following information regarding the Kingdom's insurance regime.  He 
stated that Cooperative Insurance in the Kingdom  was undertaken through registered insurance 
companies operating in a cooperative manner as provided within the articles of the Law on 
Supervision of Cooperative Insurance Companies a nd in accordance with the principles of Islamic 
Shari'a.  Cooperative Insurance operated with the pur pose of maintaining an efficient, fair, safe and 
stable insurance market for the benefit and protec tion of policyholders and shareholders.  Cooperative 
insurance aimed to strengthen values like coopera tion and social solidarity (takaful) among the 
insured by indemnifying those among them who sustain losses insured against as well as sharing 
equitably the amount of such losses among themselves. 
288. The representative of Saudi Arabia further st ated that cooperative insurance companies 
offered both policyholders and shar eholders the opportunity to bene fit from their contributions and 
investments through the distribution of the surplus of insurance operations between the shareholders 
and policyholders.  To facilitate a clear accounting fo r the distribution of the surplus, the insurance 
and re-insurance operations accounts were kept separ ate from the shareholders investments accounts.  
Insurance operations accounts were maintained fro m the contributions paid to the company by 
policyholders and were reserved for payments of claims and expenses of the company's operation.  
Policyholders were entitled to a percentage of the surplus from the income generated from the 
operations and the return on investment from the policy holders' contributions at the end of the year in 
the form of reduction of premium or by monetary distribution.  Shareholders investments accounts were maintained from the investment of the share holders' capital and the insurance operations' fund.  
The net investment returns from the insurance operati ons fund were added as investment return to the 
insurance operations accounts and the rest  was available for the shareholders. 
289. The Implementing Regulations of this Law were to be issued by an order of the Minister of 
Finance and would specify the insurance activiti es covered in this Law.  The implementing 
regulations would:  (i) provide transparency by making public all rules and regulations affecting the 
insurance and reinsurance industry; (ii) promote competition in the market place; and (iii) provide 
consumer and private-sector protection. 
290. Subject to the provisions of the Cooperativ e Health Insurance Law, promulgated by 
Royal Decree M/10 of 1.5.1420H, the Cooperative Insurance Law granted the Saudi Arabian WT/ACC/SPEC/SAU/4/Rev.4 
Page 98  
 
 Monetary Agency (SAMA), through a clear, transpar ent and consistent regul atory and supervisory 
process, the powers to: 
Ii Review applications for licenses and issue recommendations for licensing to the 
Ministry of Commerce and Industry. 
ii. Authorize suspension and withdrawal of regulatory permission. 
iii. Approve board members of insurance a nd reinsurance companies, and external 
auditors. 
iv. Monitor solvency of insurance and re insurance companies through the establishment 
of general rules to ensure credit-worthi ness, capital adequacy, soundness of assets and 
technical provisions and ability to m eet obligations to policyholders. 
v. Inspect records directly or through auditors and request regulatory information. vi. Approve mergers and acquisitions of insurance and reinsurance companies. 
vii. Regulate and approve rules of investme nt in insurance and reinsurance operations. 
viii.. Establish minimum deposit limits and the amount of funds to be deposited in local 
banks to exercise each insurance activity. 
ix. Approve policy forms. x. Establish investment policy for in surance and reinsurance companies. 
xi. Intervene following violations of the rules, including requiring liquidations. xii. Establish the pre-conditions for gran ting licenses to provide insurance-related 
services, in particular:  insurance brokers, insurance consultants, inspectors and loss 
adjusters, experts in settling insurance claims and actuaries. 
291. The main object of the insurance and reinsuran ce companies was to engage in insurance and 
reinsurance activities, not to undertake any ot her activities unless they are complementary or 
necessary.  Insurance and reinsura nce companies could not directly own brokerage companies or 
establishments.  Reinsurance companies could not own reinsurance brokerage companies or 
establishments.  However, insura nce companies could, subject to obtaining the SAMA's approval, 
own companies or establishments engage d in reinsurance brokerage activities. 
292. The capital of the insurance company should not be less than SAR 100,000,000 and the paid-
up capital of a reinsurance company or an insuran ce company engaged at the same time in reinsurance 
activities should not be less than SAR 200,000,000.  The minimum capital should not be altered 
without the SAMA's approval and in accordance with the Companies Law. 
293. Following
 the completion of bilateral negotiations with WTO Members, the schedule of 
specific commitments on services of Saudi Arabia woul d be reproduced in Part II of the Annex to the 
Protocol of Accession of Saudi Arabia.  The represen tative of Saudi Arabia noted that the measures 
described above in this section entitled "Services" of this Report  would in no way affect Saudi 
Arabia's obligations in Servi ces described in its Schedule of Specific Commitments in Services 
annexed to Saudi Arabia's Protocol of Accession.    WT/ACC/SPEC/SAU/4/Rev.4 
 Page 99 
 
 
 - Government Procurement 
294. Some members of the Working Party requested  that Saudi Arabia undertake to accede to 
the Agreement on Government Procurement upon accession to the WTO.  The representative of 
Saudi Arabia replied that the  Agreement on Government Procurement was a plurilateral agreement, 
adherence to which was not a precondition for accession to the WTO.   
295. Members observed that government procurement accounted for a major part of Saudi Arabia's 
imports, and that Saudi participation in the  Agreement on Government Procurement was an important 
issue.  The benefits of joining the GPA included lower procurement costs and greater transparency.  
In particular, the transparency provisions of the  Agreement could be useful to Saudi Arabia in 
ensuring the least-cost/best-quality outcome fo r procurement in covered agencies.   
296. The representative of Saudi Arabia stated that, upon accession, his Government would seek 
observer status in the Government Procuremen t Committee and would follow the work of the 
Working Group on Transparency in Government Procurement Procedures.  The Working Party took note of this commitment. 
- Transparency 
297. Some members of the Working Party requested information on Saudi Arabia's 
implementation of the transparency requirements pr escribed in Article X of the GATT, Article III of 
the GATS and other WTO  Agreements.  They asked whethe r a legal obligation existed in 
Saudi Arabia to publish in an official journa l all laws, regulations, judicial decisions and 
administrative orders or rulings of general applica tion or other measures having similar effect relating 
to trade or economic policy "in such a manner as to enable governments and traders to become 
acquainted with them"; to what extent publication o ccurred prior to entry into force; and whether any 
such measures could enter into force without being published in Umm Al-Qura , the Official Journal. 
298. In response, the representative of Saudi Arabia  stated that Article 71 of the Basic Law 
requires that all laws be published in Umm Al-Qura , the Official Journal, before they entered into 
effect, and that laws become effective on the date of publication unless a later date was specified.  He 
added that the Umm Al-Qura  also is the official journal for publication of regulations, implementing 
regulations, decrees, decisions, Mi nisterial orders, international  Agreements and concessions, which 
also could not come into effect prior to publica tion there.  These rules, however, did not extend to 
administrative orders.  He further added that Artic le 47 of the Board of Grievances Law required the 
publication of judicial decisions.  There were no other requirements for publication or notification WT/ACC/SPEC/SAU/4/Rev.4 
Page 100  
 
 currently in effect.  He also confirmed that his government has set up a single operational enquiry 
point (the Ministry of Commerce and Industry (Post Office Box 11162, Riyadh, Kingdom of Saudi 
Arabia; telephone number 966-14-027-574; www.comme rce.gov.sa)) in conformity with the 
requirements of Article III of the General  Agreement on Trade in Services and the WTO  Agreements 
on TBT and SPS. 
299. A Member stated that timely review of legislation published in Umm Al-Qura  was difficult, as 
copies were not immediately available to the ge neral public and many private-sector entities were 
unable to obtain copies of laws and regulations with  sufficient time to become acquainted with their 
provisions prior to the date of implementation.  In addition, although all la ws and regulations were 
published in the Journal, the non-publication of  administrative orders presented problems of 
adjustment in cases of new import or export requirements.  This Member suggested that Saudi Arabia 
consider posting the Umm Al-Qura  on the internet to improve access by the public to laws, 
regulations, judicial decisions and administrative ru lings of general application, and welcomed any 
other practical steps taken by Saudi Arabia to en sure prompt and accessible publication of legislation 
and regulations in the Official Journal. 
300. The representative of Saudi Arabia confirmed that from the date of accession his government 
would fully implement Article X of the GATT 1994, Article III of the GATS and the other WTO transparency requirements, including those requiring notification and publication.  As such, all laws, 
regulations, decrees, judicial decisions and administ rative rulings of general application pertaining to 
or affecting customs issues, trade in goods, services,  intellectual property and the control of foreign 
exchange would be published promptly in the Umm Al-Qura  in a manner that fulfils the WTO 
requirements and no such law, regulation or other normative act or measure would become effective 
or be enforced prior to such publication.  He fu rther confirmed that the government also had decided 
to expand the transparency provided with regard to  legislation and measures having similar effect in 
the areas of trade and investment.  In this rega rd, Saudi Arabia would, from the date of accession, 
establish or designate an official website (and possi bly a supplemented official journal or an expanded 
Umm Al-Qura ), updated on a regular basis and readily available to WTO members, individuals and 
enterprises, dedicated to the publication of all regul ations, decisions, orders, administrative rulings of 
general application, and other measures pertaining to or affecting trade in goods, services, and TRIPS 
prior to enactment.  The publication of such regulations and other measures would include, as appropriate, the names of the authorities (includi ng contact points) responsible for implementing a 
particular measure and the effective date of the measure.  Also, it would list the products and services 
affected by the particular measure, identified by appropriate tariff line and classification.  He added  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 101 
 
 
 that Saudi Arabia intended to post the contents of current and past editions of the Official Journal on 
this website as well, and keep them current.  The Working Party took note of these commitments. 
- Notifications 
301. The representative of Saudi Arabia said that, upon entry into force of the Protocol of 
Accession, Saudi Arabia would submit all notifications required by any  Agreement constituting part 
of the WTO  Agreements.  Any regulations subsequently enact ed by Saudi Arabia which gave effect to 
the laws enacted to implement any  Agreement constituting part of the WTO  Agreements would also 
conform to the requirements of that  Agreement.  The Working Party took note of these commitments. 
- Trade  Agreements 
302. In response to questions the representative of Sa udi Arabia submitted the text of the Unified 
Economic  Agreement signed on 11 November 1981 under th e Gulf Cooperation Council.  He said 
that the free-trade  Agreement met all the requirements of Article XXIV of GATT  Agreement 1994, 
including paragraphs 5(b) and 8(b).  The free-trad e area had eliminated duties and other restrictive 
regulations of commerce and also all the trade be tween the members of the Gulf Cooperation Council 
in the products originating in the member states and work was proceeding to further harmonize trade 
and commercial policies.  He also submitted the programme for the implementation of the  Agreement 
Facilitating and Developing Trade Exchange among Arab States to create a Free Trade Area and the Agreement Facilitating and Developing Trade Exchanges among Arab States.  Saudi Arabia 
would notify these  Agreements upon becoming a WTO Member. 
303. In response to further questions, the representa tive of Saudi Arabia stated that the GCC 
Customs Union had been established and was ope rative since the beginning of January 2003.  
Saudi Arabia and other GCC member states were applying the GCC common external tariff.  The rates of common external tariff for more than 85 per cent of the tariff lines were 5 per cent or 
0 per cent.  He said that future plans included the application of common external tariff to all items 
and steps towards a common market and a common currency. 
304. In response to additional questions from a member  of the Working Party, the representative of 
Saudi Arabia stated that the 1981 List is the b asic document that is the foundation of the GCC.  
Further to this List, the first GCC FTA was est ablished; later, the GCC Summit took a decision on 
further economic integration and established a Customs Union (which came into force 
1 January 2003).  The representative added that cust oms tariffs had been removed on all trade among 
GCC countries and that there were no exceptions.  As for treatment of imports into one member of the WT/ACC/SPEC/SAU/4/Rev.4 
Page 102  
 
 customs union when they are shipped to another,  the representative of Saudi Arabia referred to 
Paragraphs 147-148 of the Report.  He also stated that there were no rules of origin for the GCC 
Customs Union.  As for other restrictions, the representative reported that particular goods imported 
into one member of the customs union could not be  shipped to another member if their importation 
into the other member was banned (e.g., the im port ban on alcohol and pork in Saudi Arabia). 
305. In response to a question on the liberalization of services with the GCC, the representative of 
Saudi Arabia stated that the GCC had liberali zed trade in services for roughly 100 sub-sectors of 
services, including professional services, most business services, telecommunication services, banking and other financial services (other than insuran ce services), distribution services, education services, 
environmental services, health and related social services tourism services.  The GCC members have agreed to progressively liberalize other services sectors and sub-sectors. 
306. In response to another question from a member of the Working Party, the representative of 
Saudi Arabia stated that the GCC Supreme Council, which met annually and comprised Heads of State/Heads of Governments, was the ultimate decision making body in the GCC.  The Ministerial Council, comprising Foreign Ministers, was responsible for overall implementation and 
implementation of decisions of the Supreme Council.   Below the Ministerial Council were different 
functional bodies, the most important of whic h was the Financial and Economic Cooperation 
Committee, which was in charge of reviewing fi nancial and economic policy of the customs union. 
307. The representative of Saudi Arabia stated that  implementation of the Arab Free Trade Area 
was progressing with the aim of having a full-fledged free trade area from 2005.  Tariffs of member 
countries in the context of the Arab Free Trade Area (AFTA) had been reduced by 80 per cent.  
Future plans included negotiations to create a cust oms union.  In response to further questions from 
members of the Working Party, the representative stated that AFTA included the following member 
states of the Arab League:  Bahrain, Egypt, Isr ael, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, 
Qatar, Saudi Arabia, Sudan, Syria, Tunisia, Unite d Arab, Emirates and Yemen.  He added that there 
were no further preferential provisions that went be yond the current 80 per cent level (except for those 
AFTA members that were also members of the GCC and, thus, part of a customs union).  He further stated that Saudi Arabia granted an 80 per cent di scount from its MFN tariff rates to imports from all 
AFTA members, and that services were not included in the AFTA.  
308. Saudi Arabia and other GCC member states ha ve discussed with the European Communities 
the possibility of establishing a free trade area.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 103 
 
 
 309. The representative of Saudi Arabia stated that his Government would observe the provisions 
of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its 
trade  Agreements, and would ensure that the provisions of these WTO  Agreements for notification, 
consultation and other requireme nts concerning free trade areas and customs unions of which 
Saudi Arabia was a member were met from the date of accession.  He confirmed that Saudi Arabia would, upon accession, submit notifications and copies of the GCC Customs Union and the Arab 
League Free Trade Area for review by the Committee on Regional Trade  Agreements (CRTA).  The 
Working Party took note of these commitments. 
- CONCLUSIONS 
310. [The Working Party took note of the explanations  and statements of Saudi Arabia concerning 
its foreign trade regime, as reflected in this re port.  The Working Party took note of the assurances 
given by Saudi Arabia in relation to certain specifi c matters which are reproduced in paragraphs [...] 
of this report.  The Working Party took note th at these commitments had been incorporated in 
paragraph 2 of the Draft Protocol of Accession of Saudi Arabia to the WTO.] 
311. [Having carried out the examination of the foreign trade regime of Saudi Arabia and in the 
light of the explanations, commitments and concessi ons made by the representative of Saudi Arabia, 
the Working Party reached the conclusion that  Saudi Arabia be invited to accede to the 
Marrakech  Agreement Establishing the WTO under the provisi ons of Article XII.  For this purpose, 
the Working Party has prepared the draft Deci sion and Protocol of Accession reproduced in the 
Appendix to this report, and takes note of Saudi Arabia's Schedule of Concessions and Commitments 
on Goods [to be prepared] and its Schedule of Sp ecific Commitments on Services [to be prepared] 
that are annexed to the Protocol.  It is proposed  that these texts be adopted by the General Council 
when it adopts the report.  When the Decision is  adopted, the Protocol of Accession would be open 
for acceptance by Saudi Arabia which would become  a Member thirty days after it accepts the said 
Protocol.  The Working Party agreed, therefore,  that it had completed its work concerning the 
negotiations for the accession of Saudi Arabia to the Marrakech  Agreement Establishing the WTO.] WT/ACC/SPEC/SAU/4/Rev.4 
Page 104  
 
 ANNEXES 
Annex A: List of Items Subject to Price Controls 
Annex B: Comparison of the Old 1979 Forei gn Investment Law and the New 2000 Foreign 
Investment Law 
Annex C: "Negative List"   
Annex D:  Summary of the Provisions of the Capital Market Law 
Annex E: List of Products Subject to Non-Automatic Import Licensing Requirements 
Annex F: Fees and Charges for Port Services Annex G: List of Banned Imports Annex H: SASO Seed Specifications Annex I: List of Items Subject to Preshipment Inspection 
Annex J: List of Items Subject to Mandatory Certification 
Annex K: List of Banned Exports Annex L: List of Exports Subject to Authorization/Licensing Annex M: List of Technical Committees 
Annex N: List of SPS Measures Maintained by the Kingdom of Saudi Arabia (to be submitted)  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 105 
 
 
 ANNEX A 
List of Items Subject to Price Controls  
Current Controlled Price Item No. 
SAR 20/21 per 40 kg Wheat 1. 
6–12 Halalas/Litre Fuel oil 2. 
90 Halalas/Litre Gasoline 3. 
37 Halalas/Litre Diesel 4. 
43.5 Halalas/Litre Kerosene 5. 
72 Halalas/Litre Liquefied Petroleum Gas (LPG) (Cooking Gas) 6. 
300 SAR/Metric Ton 
281 Halalas/MMBTU 
10 Halalas/Litre Asphalt 
Natural Gas (Ethane and Methane) 
Crude Oil (Fuel) 7. 
8. 
9. 
(1 SAR = 100 halalas) 
The Council of Ministers is the responsible legal authority. WT/ACC/SPEC/SAU/4/Rev.4 
Page 106  
 
 ANNEX B 
Comparison of the Provisions of the Old and New Foreign Investment Laws
 
The old Foreign Investment Law was enacted in 19 79.  The new Foreign Investment Law was enacted 
vide Royal Decree No. M/1 dated 9 April 2000 to  replace the 1979 law.  Under the old Law, the 
licensing authority for foreign investment was the Fo reign Investment Secretariat of the Ministry of 
Industry and Electricity.  Under the new law, the licensing authority is the Saudi Arabian General 
Investment Authority (SAGIA).  The primary other differences between the ol d and the new laws are 
as follows: 
Authorities Providing Services to and Regulating Investors  
Old Law:  Several Ministries and Government Agencies. 
New Law:  Saudi Arabian General Investment Authority (SAGIA) Investor Service Centres 
(One-Stop-Shop).  (SAGIA comprises representatives from nine investment-
related ministries.) 
Investment Fields Open to Foreign Investors  
Old Law:  The Old Law required that the pr oject be a development project approved under 
the National Development Plan and that the project be accompanied by foreign 
technical skills and expertise to facilitate  technology transfer and be approved as 
viable by the Foreign Investment Bureau. 
New Law:  All fields are open for investment, except those included in the negative list. Period for Taking a Decision on the Investment Application
 
Old Law:  Not specified. 
New Law:  Maximum 30 days. 
Possibility of Obtaining More Than One License  
Old Law:  Restricted, had to be in the same activity. 
New Law:  The foreign investor may obtain more than one license in diverse activities. 
Type of Foreign Investment  
Old Law:  Law favoured joint ventures over 100 per cent foreign-owned projects. 
New Law:  100 per cent foreign-owned projects are allowed by the new law, in addition to 
joint ventures.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 107 
 
 
 Incentives  
Old Law:  Foreign capital enjoyed the in centives offered to national capital only in 
manufacturing industries.  The Saudi share in ownership had to be 25 per cent or 
greater. 
New Law:   The foreign investment project en joys all of the incentives and privileges offered 
to local projects. 
Investment Guarantees  
Old Law:  None were specified.  No expropriation cases since 1957. 
New Law:  The foreign investor has the right to transfer his share derived from selling his 
equity or profits out of the Kingdom, as well as any amounts required for the 
settlement of contractual obligations pertai ning to the project.  Investment related 
to the foreign investor shall not be confiscated without a court order.  They may not be subject to expropriation except for th e public interest and in exchange for an 
equitable compensation according to regulations. 
Real Estate Ownership
 
Old Law:  Foreign ownership of real-estate by foreign investors was prohibited. 
New Law:  The foreign facility licensed under th e Foreign Investment Act is entitled to any 
real-estate for practicing the licensed activit y and for the housing of staff.  Also the 
Real-Estate Regulation allows foreign i nvestment in real-estate worth SAR 30 
million or more. 
Penalties for Violations  
Old Law:  Kingdom could cancel of license or deny of incentives, after investor received 
warning from the Ministry of Industry a nd Electricity to correct the violation 
within a certain period.  Investors could appeal to the Board of Grievances within 
30 days. 
New Law:  A petition against any penalty may be brought by the investor before the Board of 
Grievances.  Possible penalties include: 
- Withholding incentives offered to the foreign investor. 
- Imposing a fine not exceeding SAR 500,000. 
- Cancellation of license in case of continuity of violation after a written 
notification to rectify the violation within a certain period specified by 
SAGIA. 
Tax Exemption  
Old Law:  Industrial and agricultural projects we re offered a ten year tax holiday and other 
projects a five year holiday, provided that the local share forms 25 per cent of the 
project capital.  The tax on profits was up to 45 per cent. WT/ACC/SPEC/SAU/4/Rev.4 
Page 108  
 
 New Law:  Taxes on profits were reduced to 30 per cent and losses may be transferred to 
coming years.  A further tax reduction is under discussion. 
Sponsorship
 
Old Law: Foreign investors had to be sponsored by a Saudi citizen. 
New Law:  The requirement of the old law was removed.  The foreign investor and his non-
Saudi staff shall be sponsored by the licensed investment project.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 109 
 
 
 ANNEX C 
"Negative List"  
I. Industrial Sectors  
a. Oil exploration, drilling and production,  except the services related to the mining 
sector listed at 5115 and 883 in Interna tional Industrial classification codes. 
b. Manufacturing of military equipment, devices and uniforms. 
c. Manufacturing of civilian explosives. 
II. Services Sectors  
a. Catering to military sectors. 
b. Security and detective services. c. Insurance services (until the issu ance of the new Insurance Act) 
d. Real estate investment in Makkah and Madina. e. Tourist orientation and guidance services related to Hajj and Umrah. 
f. Recruitment and employment services including local recruitment offices. 
g. Real estate brokerage. 
h. Printing and publishing, except the following activities:  
- Pre-printing services (CPC 88442) 
- Printing presses (CPC 88442) 
- Drawing and calligraphy (CPC 87501) 
- Photography (CPC 875) 
- Radio and Television Broad casting Studios (CPC 96114) 
- Foreign media Offices and Correspondents (CPC 962) 
- Promotion and Advertising (CPC 871) 
- Public relations (CPC 86506) 
- Publication (CPC 88442) 
- Press services (CPC 88442) 
- Production, selling and renting of computer software (CPC 88) 
- Media consultancies and studies (CPC 853) 
- Typing and copying 
i. Distribution services, wholesale and retail trade, including medical retail services and 
private pharmacies, and commercial agenci es, except franchise rights listed at CPC 
8929, with foreign ownership not exceeding (49 per cent), and the granting of one 
franchise to each area. 
j. Audio-visual and media services. k. Telecommunications services, except the following activities: 
- Telex services (CPC 7523) 
- Telegraph services (CPC 7522) 
- Electronic data interchange (CPC 7523) 
- Enhanced/Value-Added facsimile services, including storage, forwarding, and 
retrieving (CPC 7523) 
- VSAT services (CPC 75291) 
- Fax services (CPC 7529 and 7521) 
- GMPCS services (CPC 75299) 
- Internet Service Provider services (CPC 75299) WT/ACC/SPEC/SAU/4/Rev.4 
Page 110  
 
 - Electronic Mail (CPC 7523) 
- Provision of online information a nd database retrieval (CPC 7523) 
- Information provision and online retrieva l and/or processing, including transaction 
processing (CPC 843) 
l. Land and air transport. 
m. Satellite transmission services. 
n. Services provided by midwives, nurses, physiotherapists and paramedics 
(CPC 93191). 
o. Fisheries. p. Blood banks, poison centres and quarantines.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 111 
 
 
 ANNEX D 
Summary of Provisions of the Capital Market Law  
Chapter 1 sets out the definitions of the terms used in the law.  The Capital Market Authority (CMA) 
has rule-making authority to further define what is or will not be deemed a security.  This assures 
necessary flexibility and certainty.  The CMA is forma lly created in Chapter 2, which also sets forth 
the CMA's extensive rule-making powers, organizati onal structure and duty to report annually to the 
President of the Council of Ministers.  Chapter 3 creates the Saudi Arabian Securities Exchange as a 
joint stock company and empowers it to adopt by-laws for the purpose of establishing and enforcing 
high professional and ethical standards for brokers .  The CMA is also required to establish and 
maintain a Securities Violation Tribunal with jurisdiction over all disputes. 
Chapter 4 requires the Exchange to establish th e Securities Deposit Centre, which will be the 
exclusive organization for clearing, settling and re gistering ownership of securities traded on the 
Exchange.  Chapter 4 provides that the records of the centre are conclusive evidence of ownership for 
securities traded on the Exchange and authorizes the Exchange to adopt rules necessary to assure 
efficient and reliable clearance, settlement and regi stration.  Under Chapter 5, brokers must be 
licensed.  Licensing requirements are established and administered by the Exchange but the actual 
issuance of license is by the CMA based on a reco mmendation by the Exchange.  Chapter 6 provides 
that, commencing in 2005, the CMA has the authority to adopt rules regulating enumerated aspects of 
the activities of investment funds, collective trusts, investment managers and investment advisers.  
Until 2005, the regulation of these entities (Bank Investment Funds) and parties will remain with the present regulators. 
The disclosure procedures for public offers of securities and the on-going disclosure requirements for 
the issues of publicly traded securities are set forth in Chapter 7.  No sales through a public offer of a 
security can occur until a prospectus is published and the CMA has approved the prospectus.  Such 
approval is granted upon the CMA being satisfied that the prospectus fulfils the disclosure 
requirements as set forth in the CMA's regulations .  Chapter 8 authorizes the CMA to issue rules 
defining what constitutes manipulation, as well as insi der trading and tipping of inside information. 
Advance notice of a possible takeover is the s ubject of Chapter 9; anyone who increases his 
ownership of a class of equity security listed on the Exchange so that he will own 10 per cent or more 
of a company must file certain information about  himself and such other information as the CMA's 
regulations require.  These provisions are similar to early-warning disclosures in other countries.  
Chapter 9 authorizes the CMA to adopt a range of s ubstantive protections for the shareholders of the 
firm that is the target of a takeover.  Chapter 10 is the final chapter of the Capital Market Law.  It sets 
forth the CMA and private investor action that can be  brought for violations of any provision, rule or 
regulation of the Capital Market Law.  WT/ACC/SPEC/SAU/4/Rev.4 
Page 112  
 
   
ANNEX E 
List of Imports Subject to Non-Automatic Licensing
 
S. No. HS Code Description WTO Justification 
1. 01 01 10 10 Arabian breed, pure-bred horses GATT Art. XI:2(b) 
2. 01 01 10 20 Arabian breed, pure-bred horses GATT Art. XI:2(b) 
3. 01 01 90 10 Arabian breed, pure-bred horses GATT Art. XI:2(b) 
4. 01 01 90 20 Arabian breed, pure-bred horses GATT Art. XI:2(b) 
5. 06 02 20 10 Date palm, and sapling thereof GATT Art. XX(b) 
6. 23 09 90 50 Preparations for the animal forage GATT Art. XX(b) 
7. Chapters 28 and 29 Chemicals GATT Art. XXI 
8. ex 30.03 Medicines, for veterinary use GATT Art. XX(b) 
9. ex 30.04 Medicines, for veterinary use GATT Art. XX(b) 
10. 25 01 00 30 Sodium chloride; GATT Art. XXI 
11. 27.12, except 
27 12 10 00 Paraffine, vaseline GATT Art. XXI 
12. 31 02 30 00 GATT Art. XXI 
13. 31 02 50 00  
14. 36 01 00 00  
15. 36 02 00 00  
16. 36 03 00 10  
17. 36 03 00 90  
18. 25 01 00 30  
19. 35 03 00 10  
20. 38 05 10 00  
21. 39 06 10 00  
22. 39 12 20 00  
23. 76 03 20 00  
24. 81 04 30 00 Explosives, fireworks, gunpowder, 
Propellent powders, prepared 
explosivesDetonating fuses, percussion or detonating caps, igniters, electric 
detonators, safety fuses, sulphate 
turpentine oils; Polymethyl 
methacrylate; Cellulose nitrates; 
Aluminium powders and flakes; Magnesium powder and flakes.   
 
  
  
25. 31.02 Chemical fertilizers GATT Art. XXI 
26. 31.03 Chemical fertilizers GATT Art. XXI 
27. 31.04 Chemical fertilizers GATT Art. XXI 
28. 31.05, except 
31 02 30 00 and 31 02 50 00 Chemical fertilizers GATT Art. XXI 
29. 36 04 10 00 Lighting firework s for occasions  GATT Art. XXI 
30. 36 04 90 00   
31. 38 08 30 00 Herbicides, anti-sprouting products, 
plant-growth regulators GATT Art. XX(b) 
32. ex 58 07 10 00 
33. ex 58 07 90 00 
34. ex 61 01 
35. ex 61 03 
36. ex 62 01 
37. ex 62 03 Military uniforms, military badges etc. 
 
 GATT Art. XXI 
38. 65 05 90 94 Peak caps GATT Art. XXI 
39. 65 06 10 30 Helmets, for military use GATT Art. XXI 
40. ex 73 26 90 99 Other items of iron and steel, for 
military use GATT Art. XXI  
41. ex 90 05 10 00 Night vision binoculars  GATT  
42. 83 01 40 20 Security e quipment such as security 
surveillance  GATT Art. XXI  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 113 
 
 
 S. No. HS Code Description WTO Justification 
43. 85 25 40 00 Cameras, CT V systems, anti-theft alarm 
systems,  
44. 85 43 89 20 Cameras, CT V systems, anti-theft alarm 
systems,  
45. 85 31 10 00 Magnetic card or thumb impression 
operated GATT Art. XXI 
46. 90 22 19 90 Access/exit doors and equipments, metal  
47. 90 22 19 10 Detecting doors and equipments, 
baggage screening equipments GATT Art. XXI  
48. 84 19 40 00 Distillation equipment GATT Art. XX(a) 
49. 84 59 61 00 Key cutting, copying and repairing 
machines and instru ments of any type GATT Art. XX(d) 
50. 84 59 69 00 Key cutting, copying and repairing 
machines and instru ments of any type GATT Art. XX(d) 
51. 84 72 30 00 Postage franking machines GATT Art. XX(d) 
52. 85 25 20 11 Transmission apparatus GATT Art. XXI 
53. 85 25 20 19 Transmission apparatus GATT Art. XXI 
54. 85 25 20 20 Transmission apparatus GATT Art. XXI 
55. 85 25 20 30 Transmission apparatus GATT Art. XXI 
56. 85 25 20 40 Transmission apparatus GATT Art. XXI 
57. 85 25 20 50 Transmission apparatus GATT Art. XXI 
58. 85 25 20 60 Transmission apparatus GATT Art. XXI 
59. 85 25 20 90 Transmission apparatus GATT Art. XXI 
60. 85.26 in addition to 
any other relevant 
heading Transmission apparatus GATT Art. XXI 
61. ex 87.03 Armoured vehicles GATT Art. XXI 
62. 89 02 00 00 Fishing vessels GATT Art. XXI 
63. Chapter 93 Arms and ammunitions GATT Art. XXI 
64. Different headings Wild animals and products thereof, 
according to CITES GATT Art. XX(b) 
65. Different headings Cultural and archaeological property GATT Art. XX(f) 
66. Different headings Products containing currency pictures, 
models or wrappers in shape of currency 
or otherwise. GATT Art. XX(d) 
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 114  
 
 ANNEX F 
Fees and Charges for Port Services
 
1. General Cargo –– SR 35 Per Ton or Part Thereof 
    
2. Vehicles and Equipment –– SR 35 Per Ton or Part Thereof 
    
3. Bagged Cargo and Foodstuff –– SR 20 Per Ton or Part Thereof 
    
4. Bagged Cement –– SR 10 Per Ton or Part Thereof 
    
5. Bulk Cargo (including bulk handled at 
the cement silos, grains, oils or similar), 
excluding crude oil, gas and liquefied petroleum products –– SR 6 Per Ton or Part Thereof 
    
6. Exported Bulk Cement and Clinker –– SR 3 Per Ton or Part Thereof 
    
7. Container 20 Feet Long or Less –– SR 270 Per Unit 
    
8. Container Over 20 Feet Long –– SR 415 Per Unit 
    
9. Sheep/Goat –– SR 2 Per Head 
    
10. Other Livestock –– SR 5 Per Head 
 
  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 115 
 
 
 ANNEX G 
List of Banned Imports  
S. No. HS Code Description WTO Justification 
1. 01.03  
2. 02 09 00 10 
3. 02 06 30 00 
4. 02 06 41 00 
5. 02 06 49 00 
6. 02.03  
7. 05 02 10 00 
8. 02 10 11 00 
9. 02 10 12 00 
10. 02 10 19 00 
11. 15 01 00 30 
12. 16 02 41 00 
13. 16 02 42 00 
14. 16 02 49 00 
15. 41 03 30 00 
16. 15 03 00 11 
17. 15 03 00 21 
18. 15 03 00 91 
19. 16 01 00 31 
20. 16 01 00 21 
21. 16 01 00 11, in 
addition to other 
relevant headings 
22. 41 03 31 00 
23. 41 06 31 00 
24. 41 06 32 00 
25. 41 13 20 00 Live swine, meat, fat, hair, blood, guts, limbs  
and all other products of swine GATT Art. XX(a) 
26. 01 06 19 40 Dogs, other than hunting dogs, guard dogs or 
guide dogs for the blind, accompanied with a certificate from a compet ent authority at 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 Art. XX(a) 
27. 02 08 20 00 Frog meat GATT Art. XX(a) 
28. 09 08 10 00 Narcotics of all types, forms and descriptions GATT Art. 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   
37. 13 02 11 00   
38. 13 02 19 10   WT/ACC/SPEC/SAU/4/Rev.4 
Page 116  
 
 S. No. HS Code Description WTO Justification 
39. 29 39 91 10, in 
addition to other relevant 
headings   
40. 31.01 Animal or vegetable raw natural organic 
fertilizer GATT Art. XX(b) 
41. 12 11 90 90 Goro nut GATT Art. XXI 
42. 12 11 90 90 Betel GATT Art. XX(b) 
43. 
44. 
45. 46. 22.03 
22.04 
22.05 22.06 Alcoholic beverages and intoxicants of all 
kinds, including those containing alcohol  
in any intoxicating proportion GATT Art. XX(a) 
47. 22 07 20 90 
48. 22.08, except 22 
08 90 11 and 
22 08 90 19   
49. 24 03 99 20 Tobacco snuff – Tobacco "sawika" GATT Art. XX(b) 
50. 25 24 00 00 Asbestos and products thereof GATT Art. XX(b) 
51. ex 29.31 Sarin toxic gas GATT Art. XX(b) 
52. 30 06 80 00 Industrial waste an d hazardous refuse GATT Art. XX(b) 
53. 36 04 10 00 Fireworks of the kind used by children such as 
snaps, rockets, sulfuric jitters and night stars, 
etc, falling within this scope GATT Art. XX(b) 
54. 40.12, except 
40 12 90 00 Used and retreaded tyres GATT Art. XX(b) 
55. 49 01 99 10 The Holy Quran GATT Art. XX(a) 
56. 49 07 00 11 Saudi Arabian stamps GATT Art. XX(d) 
57. 49 09 00 20 Greeting Cards w ith electric circuit GATT Art. XXI 
58. 49 11 10 90 Coupons of Hadi (sacrificial animals) GATT Art. XX(d) 
59. 49 11 10 90 Blank invoices of foreign companies abroad GATT Art. XX(d) 
60. 85 12 30 00 Security car radar detection equipments GATT Art. XXI 
61. 85 25 20 90 Video Booster GATT Art. XXI 
62. 85 28 12 99 Satellite Inte rnet receiver GATT Art. XXI 
63. 85 29 10 00 Satellite Inte rnet receiver GATT Art. XXI 
64. 85 25 20 70 Mobile phone fitted with camera GATT Art. XXI 
65. 85.42 Mobile chips and prepaid mobile cards GATT Art. XX(d) 
66. 85 31 80 90 Apparatus releasing sounds of Police Car 
sirens or of some animals GATT Art. XXI 
67. 
68. 69. 
70. 
71. 72. ex 87.01 
ex 87.02 ex 87.03 
ex 87.04 
ex 87.05 ex 87.09 Damaged Vehicles, and Right-hand Drive 
Vehicles GATT Art. XX(b) 
73. ex 87.11 Two, three and four wheeler children's motor 
cycles or vehicles GATT Art. XX(b) 
 
74. 90 13 10 00 Binoculars in which electric circuit is used and 
it directly projects red light on the target GATT Art. XX1 
75. 
76. 
77. 93 02 00 00 
93 04 00 90 
93 07 00 90 Revolvers and pistols in the shape of mobile 
phones, lighters, pagers, pens or other pistols GATT Art. XX1 
78. 95 03 80 00 Remote control airplanes and parts thereof GATT Art. XX1 
79. 95 03 90 00 Noise making pistols and guns, and toy pistols 
similar in shape to real pistols GATT Art. XX1 
80. 97 05 00 00 Mummified animals GATT Art. XX(a)  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 117 
 
 
 S. No. HS Code Description WTO Justification 
81. Different 
Headings All foodstuff containing animal blood in their 
manufacturing GATT Art. XX(a) 
82. Different 
Headings Drink having description of Zamzam GATT Art. XX(a) 
83. Different 
Headings All types of machines, equipment and tools 
for gambling or games of chance GATT Art. XX(a) 
84. Different 
Headings Kuwait and Iraq war leftover equipment and 
machinery GATT Art. XXI 
85. Different 
Headings Publicity material for cigarettes of any kind GATT Art. XX(b) 
86. Different 
Headings Products polluted by radiation or nuclear dust 
(e.g., watches of trademark Trophy) GATT Art. XX(b) 
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 118  
 
 ANNEX H 
SASO Seed Specifications
 
 
1. Seed must be true to type, from the first generation certified and produced directly from 
registered seed and the product of the preceding growing season.   
 
2. Each consignment must include a certificate indicating the following: 
 
- Date and place of production (name of country, state or province and city) 
- Purity percentage 
- Germination percentage 
- Vitality of the seeds 
- Inert matter percentage 
- Weed seeds (including number of seeds and varieties in a sample of 2 kg) 
- Barley seeds (include number of seeds in a sample of 2 kg wheat seeds) 
- Moisture percentage 
 
The certificate must be from a national lab or an authorized government lab (including a state lab if the seeds are imported from the US). 
For seeds imported from Canada or Europe, the I STA (International Seed Testing Association) 
Orange Certificate must be presented. 
 
3. The seeds must be treated with either
:  
- fungicide Triadimenol (commercially known as Baytan) (15 - 30 per cent); or 
- a mixture of Triadimenol 7.5 per cent and Imazalil 3 per cent at the rate recommended by 
the US EPA; or   
- fungicide Brochlora 10 per cent and Carb endazim 40 per cent (commercially knows as 
Prelude) at the rate of 2 kg/ton of seed; or 
- fungicide Carboxin 17 per cent and Thiram 17 per cent (commercially known as Vitavax 
200) at the rate of 2.5 kg/ton of seed. 
 4. All growing seeds must be red in colour and homogeneously treated in order to differentiate 
them from consumption seeds. 
 5. The consignment must follow all the rules and international regulations of ISTA concerning 
seed testing and seed bag markings.  The information on the bags must be clear in the English and Arabic languages and must specify that th e seed was treated with poisonous chemicals 
and is not fit for human or animal consumpti on.  The skull and cross-bones danger sign must 
be printed on the bags. 
 Conditions and Requirements
 
 1. The release of any consignment or shipment depends on the result of the analysis of a random 
sample taken by the technician of MOA at the arrival port.  The MOA technician will 
determine the fitness of the seeds. 
 2. Each consignee must submit the following documents: 
a) Complete name and address of the importer 
b) Name and address of the seed exporter  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 119 
 
 
 c) Name of the seed variety(ies) 
d) Quantity imported (net weight) e) Price CIF arrival port 
 
3. The consignee also must submit the following certificates: 
a) Field inspection certificate from the authoriti es in the country of origin indicating that 
the fields were inspected and determined to be fit for seed production. 
b) Certificate of origin issued by the government authorities in the exporter's country. c) Legalized certificate from the authorities indi cating the name of the fungicide used for 
the treatment of the seeds and the rate, method and date of application. 
d) If the seeds are imported from Europe, a certificate stating that they are free from 
radiation.  This certificate must be legalized by the Saudi Embassy in the exporter's country. 
 
4. The importer may not use or sell the seeds unl ess it receives a letter from MOA's Director of 
Research including the results of the analys is performed pursuant to paragraph 1, above. 
5. A seed consignment must be inspected befo re shipment to confirm that it fulfils the 
specifications and conditions for importation.  This can be done by sending a representative 
from the importing company or through an independent lab.   
6. A letter of credit must be opened at a bank in Saudi Arabia. 7. The last date for the arrival of a seed shipment  to Saudi ports is within the time frame of the 
importing license.   
8. No seed consignment shall be  released without a letter issued by the Director of Plant 
Quarantine stating that the above conditions have been satisfied. 
Conditions for Rejection of a Shipment
 
 
1. Any shipment imported without prior permission from MOA, or not fulfilling the 
specifications and conditions set out in the previ ous section, will be rejected.  The importer of 
the seeds will be fully responsible for all necessary actions, including the re-export of the 
seeds to his country. 
2. Any consignment will be rejected if the percentage of the following is less than 
recommended. 
a) Purity percentage less than 98 per cent 
b) Germination percentage less than 92 per cent c) Inert matter percentage not more than 1 per cent d) Moisture percentage not more than 12 per cent e) Barley seeds percentage (in shipments of wheat seed) – not more than five kernels of 
barley in a 2 kg sample. 
 3. Any shipment that contains weed seeds that  are especially difficult to control, such as 
Avenaspp – lollium, phalaris spp, or parasitic  herbs such as cuscuta spp obanche spp, striga 
spp, or bromus spp, shall be rejected. 
4. Any shipment in which the total weed seeds (o ther than those mentioned above) is more than 
five seeds per kg of wheat or barley will be rejected. WT/ACC/SPEC/SAU/4/Rev.4 
Page 120  
 
  
5. Any shipment will be rejected unless the la b test shows it is free from the following diseases: 
a) Ergot attack of wheat and barley caused by fungus claviceps puprpurea. 
b) Karnal bunt attack of wheat and caused by fungus neovossia indica. c) Southern blight attack of wheat caused by sclerotium rolfsii. 
d) Loose smut attack of wheat caused by ustilago tritici, and of barley caused by ustilage 
nuda. 
e) Semi-loose smut attack of barley caused by ustilago nigra. f) Flag smut attack of wheat caused by urocystis agropyri. g) Cover smut attack of wheat caused by tilletia spp and in barley caused by ustilago 
hordia. 
h) eptoria leaf and glume blotch attack of wheat and barley caused by septoria spp. i) Helminthosporium spot blotch attack of wheat and barley caused by 
helminthosporium satirium. 
j) Barley scald attack of barley caused by rhynihosporium secalis. 
k) Net blotch attack of wheat caused by helminthosporium teres. 
l) Barley stripe attack of barley caused by helmunthosporium granineum. m) Scab or head blight attack of wheat and barley caused by Fusarium spp. n) Take all attack of wheat and barley caused by gacumannomyces graninis vartriaci. o) Snow mold attack of wheat caused by fusarium nivale. p) Black point attack of wheat caused by alternaria, helminthosporium and fusarium spp. 
 
Bacterial Diseases
 
 1. Bacterial leafstreak or black chaff attack of  wheat and barley caused by bacteria xanthomonas 
translucens. 
2. Bacterials leaf blight attack of wheat a nd barley caused by bacteria pseudomonas syrinag. 
3. Bacterial spike blight attack of wheat and ba rley caused by bacteria corynebacteriaum tritici. 
4. Bacterial basal glume rot attack of wheat and barley caused by pseudomonas atrofaciens.  Viral Diseases
 
 
1. Barley stripe mosaic virus. 
 Nematodes Diseases
 
 2. Ear cockle caused by Anguina tritici. 
3. In addition, a shipment can be rejected if  there is evidence of a ttack by any other seed 
transmission diseases where the number of attack seeds is at least 5 seeds/kg. 
4. A shipment or consignment can be rejected if there is evidence of attack by any kind of 
insects at any stage.  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 121 
 
 
 ANNEX I 
Items Subject to Preshipment Inspection  
Item Harmonised System Commodity Codes 
Group I – Toys 
Toys incl.  Video Games and other Electroni c Toys 8712.00 / 9501 / 9502 / 9503 / 9504.10 / 9504.90 / 9505 / 
From 9506.99 / 
Playground, Amusement and Fairground Equipment 9508 / From 3407 / 
Group II - Electrical and Electronics 
Air conditioning systems up to 60,000 btu (5 t ons)  8415.10.20 / 8415.81.20 / 8415.82.20 / 8415.83.20 
Combined function audio a nd/or video systems (non 
professional) 8518.30 / 8518.50 / 8520.30 /Combinations of II-03, II-04, II-
41, II-43 
Non professional stand-al one audio products(except 
radio receivers) 8518.21 / 8518.22 / 8518.29 / 8518.40 / 8519.21 / 8519.29 / 
8519.31 / 8519.39 / 8519.92 / 8519.93 / 8519.99 / 8520.20 / 
8520.90 
Video playing and recording systems (non professional)  8521.10 / 8521.90 / 8525.40 /  
Generator sets up to 12 kw  8502.11 / 8502.20  
Motors up to 12kw  8501.10 / 8501.31 / 8501.32 / 8501.40 / 8501.51 / 8501 
Fax and telex machines 8517.21 / 8517.22 
Household cooking appliances  8516.60 / 8516.72 
Clothes washing machines up to 10 kg and household 
dish-washing machines 8450.11 / 8450.12 / 8450.19 / 8422.1 
Clothes drying machines up to 10 kg 8451.21 
Electric irons, ironers and clot hes steamers 8451.30 / 8516.40 / 8516.32 
Domestic electromechanical kitchen appliances incl.  
Food processors, meat choppers and grinders 8509.40 / 8509.80 
Personal care/grooming appl iances (shavers, hair 
clippers, hair-removal de vices and massagers)  8510.10 / 8510.20 / 8510.30 / 9019.10  
Lift and elevator systems 8428.10 / 8431.31 
Household microwave ovens 8516.50 
Electric ovens up to 10 kw  8516.60 
Copy machines and accessories 9009.11 / 9009.12 / 9009.30 / 9009.21 / 9009.22 / 9009.90 
Personal computers (desktops/p ortables), storage units, 
peripherals and other input/output devices 8471.41 / 8471.49 / 8471.50 / 8471.60 / 8471.70 / 8473.30 
Power transformers and distribution transformers up to 
1000 kva 8504.21 / 8504.22 / 8504.31 / 8504.32 / 8504.33 / 8504.34 
Household refrigerators and freezers up to 40 cu ft incl.  
Household refrigerating display cabinets  8418.10 / 8418.21 / 8418.22 / 8418.29 / 8418.30 / 8418.40 / 
8418.50 
Telephone sets, incl. mobile , cordless telephones and 
modems  8517.11 / 8517.19 / 8517.50 / 8525.20  
Electric wires and cables up to 1000v 8544.51 / 8544.59 
Non-industrial vacuum cleaners, water suction 
appliances and shampooers  8509.10 / 8509.80  
Household electric fires and heaters  8516.29 / 8516.21  
Drinking water coolers and fountains 8418.69.10 
Evaporative air coolers (des ert coolers and humidifiers) 
up to 1.5 kw 8415.10.10 / 8415.82.10 / 8415.82.90 / 8415.83.10 / 
8415.83.90 
Domestic electric fans 8414.51 / 8414.60 
Compressors for cooling units up to 60,000 btu 8414.30 
Tea and coffee brewing appliances, and appliances for heating liquids 8516.71 
Incandescent, fluorescent and discharge luminaires, 
fixtures and lampholders 9405.10 / 9405.20 / 8536.61  
Manually operated household switches, circuit breakers 
and fuses up to 40a  8536.10 / 8536.20 / 8536.50 
Incandescent, fluorescent and discharge la mps  8539.21 / 8539.22 / 8539.29 / 8539.31 / 8539.32 
Ballasts for discharge type  lamps (including tubular 
fluorescent lamps) 8504.10 
Starters for discharge type  lamps (including tubular 
fluorescent lamps)  8532.10 WT/ACC/SPEC/SAU/4/Rev.4 
Page 122  
 
 Item Harmonised System Commodity Codes 
General use mains plugs, socket outlets and mains 
configuration adapters  8536.69 
Luminaires for road and street lighting 9405.40 
Batteries, including rechargeable and automotiv e 8506.10 / 8506.30 / 8506.40 / 8506.50/ 8506.60 / 8506.80 / 
8507.10 / 8507.30 / 8507.40 
Immersed swimming pool luminaries 
9405.40 8517.21 / 8517.22 
Hair care equipment (hand-held hair dryers, hair curlers, 
waving apparatus and curling tong heaters)  8516.31, 8516.32 
Water pumps up to 12 kw 8413.70 
TV sets (colour/black and white) 8528.12 / 8528.13 
General use mains voltage converters, power supplies 
and battery chargers  8504.40  
Stand alone radio receivers 8527.12 / 8527.13 / 8527.19 / 8527.21 / 8527.29 
Storage and instant type water heaters up to 200 litres 8516.10 
Watt hour meters 9028.30 
Household sewing machines  8452.10  
Group III – Automotive 
Passenger automobiles, trucks, buses and multi-purpose 
vehicles (new) 8701 / 8702 / 8703 / 8704 / 8705 
Passenger automobiles, trucks, buses and multi-purpose 
vehicles (used) 8701 / 8702 / 8703 / 8704 / 8705 
Automotive glass (windshield, side and rear glass) 7007.21 
Vehicle spare parts (new), in cluding radiators and hoses, 
brakes and parts, lights, fi lters, silencers and exhaust 
pipes, clutches and parts, child restraints, spark plugs, 
wiper blades and motors, sa fety belts, fuel tanks, 
mirrors, bumpers, door locks and hinges, tire tubes, and 
v-belts, gauges, rims and steering rods 40.09 / 4010.22 / 4013.10, 4013.90 / 70.09 / 8301.20 / 8302.30 
/ 8421.23 / 8421.31 / 8501.10 / 8511.10 / 8512.20 / 8512.40 / 
8539.10 / 8708.10 / 8708.70 / 8708.21 / 8708.29 / 8708.91/ 
8708.92 / 8708.93 / 8708.94 / 8708.99 / 9026.20 / 9026.80 / 
9401.20 
New tyres for passenger automobiles, trucks, buses and 
multi-purpose vehicles 4011.10 / 4011.20 
Group IV – Chemical 
Engine, transmission, hydraulic, turbine, and 
transformer oils, brake fluid and anti-freeze/ coolant 2710.00.52 / 2710.00.53 / 2710.00.54 / 2710.00.55 / 
2710.00.94 /2710.00.95 / 2710.00.96 / 38.19 / 38.20 
Paints All 3208 / All 3209 
Perfumes and cosmetics 3302.90 / All 3303 / All 3304 / All 3305 / All 3306 / 3307.10 / 
3307.20 / 3307.30 / 3307.49.10 / 3307.90.10 / 3401.1 
Domestic use pesticides  and insecticides  3808 
Group V- Others 
Aluminium and aluminium alloy products for 
architectural application 7604 / 7606 / 7608 / 7609 / 7610 / 7616 
Steel and iron alloy pipes 7304 / 7305 / 7306 / 7307 
Gold and silver jewellery (including gemstone s) 7113.11 / 7113.19 / 7113.20 / 7114.11 / 7114.19 / 7114.20 / 
7116.10 / 7116.21 
Head dress for men - cotton shema gh and ghutras  6505.90.10 / 6505.90.30 
Fire extinguishers up to 24kg 8424.10 
Cement 2523.21 / 2523. 29.10 / 2523.29.20 
Safety matches 3605.00 
Low pressure regulators, and pressu re cookers  8481.10 / 7323.93 / 7323.99 
Toilet paper and facial tissues, paper towels, and 
serviettes 4818.10 / 4818.20 / 4818.30 
Cigarettes only 2402.20 
Household and camping gas appliances, including 
heaters, cookers, ba rbecues, and lamps 7321.11 / 7321.81 / 9405.50  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 123 
 
 
 ANNEX J 
Items Subject to Mandatory Certification  
Item Harmonised System Commodity Codes 
Group I – Toys 
Toys, incl.  Video Games and other Electronic To ys 8712.00 / 9501 / 9502 / 9503 / 9504.10 / 9504.90 / 9505 / From 
9506.99 / 
Playground, Amusement and Fairground Equipment 9508 / From 3407 / 
Group II - Electrical and Electronics 
Air conditioning systems up to 60,000 btu (5 t ons)  8415.10.20 / 8415.81.20 / 8415.82.20 / 8415.83.20 
Combined function audio and/or video systems (non 
professional) 8518.30 / 8518.50 / 8520.30 /Combinations of II-03, II-04, II-
41, II-43 
Non professional stand-alone  audio products (except 
radio receivers) 8518.21 / 8518.22 / 8518.29 / 8518.40 / 8519.21 / 8519.29 / 
8519.31 / 8519.39 / 8519.92 / 8519.93 / 8519.99 / 8520.20 / 
8520.90 
Video playing and recording systems (non professional) 8521.10 / 8521.90 / 8525.40 /  
Generator sets up to 12 kw  8502.11 / 8502.20  
Motors up to 12kw  8501.10 / 8501.31 / 8501.32 / 8501.40 / 8501.51 / 8501 
Fax and telex machines 8517.21 / 8517.22 
Household cooking appliances  8516.60 / 8516.72 
Clothes washing machines up to 10 kg and household 
dish-washing machines 8450.11 / 8450.12 / 8450.19 / 8422.1 
Clothes drying machines up to 10 kg 8451.21 
Electric irons, ironers and clot hes steamers 8451.30 / 8516.40 / 8516.32 
Domestic electromechanical kitchen appliances incl.  
Food processors, meat choppers and grinders 8509.40 / 8509.80 
Personal care/grooming appl iances (shavers, hair 
clippers, hair-removal de vices and massagers)  8510.10 / 8510.20 / 8510.30 / 9019.10  
Lift and elevator systems 8428.10 / 8431.31 
Household microwave ovens 8516.50 
Electric ovens up to 10 kw  8516.60 
Copy machines and accessories 9009.11 / 9009.12 / 9009.30 / 9009.21 / 9009.22 / 9009.90 
Personal computers (desktops/p ortables), storage units, 
peripherals and other input/output devices 8471.41 / 8471.49 / 8471.50 / 8471.60 / 8471.70 / 8473.30 
Power transformers and distribution transformers up to 
1000 kva 8504.21 / 8504.22 / 8504.31 / 8504.32 / 8504.33 / 8504.34 
Household refrigerators and freezers up to 40 cu ft incl. 
Household refrigerating display cabinets  8418.10 / 8418.21 / 8418.22 / 8418.29 / 8418.30 / 8418.40 / 
8418.50 
Telephone sets, incl.mobile , cordless telephones, and 
modems  8517.11 / 8517.19 / 8517.50 / 8525.20  
Electric wires and cables up to 1000v 8544.51 / 8544.59 
Non-industrial vacuum cl eaners, water suction 
appliances and shampooers  8509.10 / 8509.80  
Household electric fires and heaters  8516.29 / 8516.21  
Drinking water coolers and fountains 8418.69.10 
Evaporative air coolers (des ert coolers and humidifiers) 
up to 1.5 kw 8415.10.10 / 8415.82.10 / 8415.82.90 / 8415.83.10 / 
8415.83.90 
Domestic electric fans 8414.51 / 8414.60 
Compressors for cooling units up to 60,000 btu 8414.30 
Tea and coffee brewing appliances, and appliances for heating liquids 8516.71 
Incandescent, fluorescent and discharge luminaires, 
fixtures and lampholders 9405.10 / 9405.20 / 8536.61  
Manually operated household switches, circuit breakers 
and fuses up to 40a  8536.10 / 8536.20 / 8536.50 
Incandescent, fluorescent and discharge la mps  8539.21 / 8539.22 / 8539.29 / 8539.31 / 8539.32 
Ballasts for discharge type  lamps (including tubular 
fluorescent lamps) 8504.10 
Starters for discharge type  lamps (including tubular 
fluorescent lamps)  8532.10 WT/ACC/SPEC/SAU/4/Rev.4 
Page 124  
 
 Item Harmonised System Commodity Codes 
General use mains plugs, so cket outlets and mains 
configuration adapters  8536.69 
Luminaires for road and street lighting 9405.40 
Batteries, including rechargeable and automotiv e 8506.10 / 8506.30 / 8506.40 / 8506.50/ 8506.60 / 8506.80 / 
8507.10 / 8507.30 / 8507.40 
Immersed swimming pool luminaries 9405.40 
Hair care equipment (hand-held hair dryers, hair curlers, waving apparatus and curling tong heaters)  8516.31, 8516.32 
Water pumps up to 12 kw 8413.70 
TV sets (colour/black and white) 8528.12 / 8528.13 
General use mains voltage converters, power supplies 
and battery chargers  8504.40  
Stand alone radio receivers 8527.12 / 8527.13 / 8527.19 / 8527.21 / 8527.29 
Storage and instant type water heaters up to 200 litres 8516.10 
Watt hour meters 9028.30 
Household sewing machines  8452.10  
Group III – Automotive  
Passenger automobiles, trucks, buses and multi-
purpose vehicles (new) 8701 / 8702 / 8703 / 8704 / 8705 
Passenger automobiles, trucks, buses and multi-
purpose vehicles (used) 8701 / 8702 / 8703 / 8704 / 8705 
Automotive glass (windshield, side and rear glass) 7007.21 
Vehicle spare parts (new), including radiators and 
hoses, brakes and parts, lights, filters, silencers 
and exhaust pipes, clutches and parts, child 
restraints, spark plugs, wiper blades and motors, safety belts, fuel tanks, mirrors, bumpers, door 
locks and hinges, tire tubes, and v-belts, gauges, 
rims and steering rods. 40.09 / 4010.22 / 4013.10, 4013.90 / 70.09 / 8301.20 / 
8302.30 / 8421.23 / 8421.31 / 8501.10 / 8511.10 / 
8512.20 / 8512.40 / 8539.10 / 8708.10 / 8708.70 / 
8708.21 / 8708.29 / 8708.91/ 8708.92 / 8708.93 / 8708.94 / 8708.99 / 9026.20 / 9026.80 / 9401.20 
New tyres for passenger automobiles, trucks, buses and multi-purpose vehicles 4011.10 / 4011.20 
Group IV – Chemical 
Engine, transmission, hydraulic, turbine, and 
transformer oils, brake fluid and anti-freeze/ 
coolant 2710.00.52 / 2710.00.53 / 2710.00.54 / 2710.00.55 / 
2710.00.94 /2710.00.95 / 2710.00.96 / 38.19 / 38.20 
Paints All 3208 / All 3209 
Perfumes and cosmetics 3302.90 / All 3303 / All 3304 / All 3305 / All 3306 / 
3307.10 / 3307.20 / 3307.30 / 3307.49.10 / 3307.90.10 / 
3401.1 
Domestic use pesticides and insecticides  3808 
Group V – Others 
Aluminium and aluminium alloy products for 
architectural application 7604 / 7606 / 7608 / 7609 / 7610 / 7616 
Steel and iron alloy pipes 7304 / 7305 / 7306 / 7307 
Gold and silver jewellery (including gemstones) 7113.11 / 7113.19 / 7113.20 / 7114.11 / 7114.19 / 
7114.20 / 7116.10 / 7116.21 
Head dress for men - cotton shemagh and ghutras  6505.90.10 / 6505.90.30 
Fire extinguishers up to 24kg 8424.10 
Cement 2523.21 / 2523.29.10 / 2523.29.20 
Safety matches 3605.00 
Low pressure regulators and pressure cookers  8481.10 / 7323.93 / 7323.99 
Toilet paper and facial tissues, paper towels and 
serviettes 4818.10 / 4818.20 / 4818.30 
Cigarettes only 2402.20 
Household and camping gas appliances, including 
heaters, cookers, barbecues and lamps 7321.11 / 7321.81 / 9405.50  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 125 
 
 
 ANNEX K 
List of Banned Exports  
S. No. HS Code Description WTO Justification 
1. ex 01.01 10 10 Arabian breed, pure-bred horses, females GATT Art. XX (b) 
2. ex 01.01 10 20 Arabian breed, pure-bred horses, females GATT Art. XX (b) 
3. ex 01.01 90 10 Race hors es, females GATT Art. XX (b) 
4. ex 01.01 90 20 Ponies, females GATT Art. XX (b) 
5. ex 01.02 Bovine animals, females GATT Art. XX (b) 
6. ex 01.04 Sheep and goats, females GATT Art. XX (b) 
7. ex 01.06 19 11 Camels, females GATT Art. XX (b) 
8. 0602.2010 Date palm saplings of following types: Khalas, 
Nabut Saif, Munifi, Safri, Magfizi, Barhi, 
Sukkari, Shalabi, Safari, Barni, Ajwa, Ambara, 
Hulwa and Rothana GATT Art. XX (b) 
9. 12.14 Green fodder and hay GATT Art. XX (b) 
10. ex 22.01 90 10 Zamzam water GATT Art. XX (a) 
11. 44.01 10 00 Wood GATT Art. XX (j) 
12. 72.04 Scrap iron GATT Art. XX (d) 
13. 97.06 Antiques and archaeological and historical items Art. XX(f) of GATT 1994 
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 126  
 
 ANNEX L 
List of Exports Subject to Authorization/Licensing
 
S. No. HS Code Description WTO Justification 
1. 01 01 10 10 Horses, pure-bred GATT Art. XI: 2(b) 
2. 01 01 10 20 Horses, pure-bred GATT Art. XI: 2(b) 
3. 01 01 90 10 Horses, pure-bred GATT Art. XI: 2(b) 
4. 01 01 90 20 Horses, pure-bred GATT Art. XI: 2(b) 
5. 10.01 Wheat GATT Art. XX (d) 
6. 10 03 00 00 Barley GATT Art. XX (d) 
7. 10 05 90 10 Golden corn GATT Art. XX (d) 
8. 10 05 90 20 White corn GATT Art. XX (d) 
9. 11.01 00 10 Wheat flour GATT Art. XX (d) 
10. 12 01 Soyabeans GATT Art. XX (d) 
11. 19 01 10 10 Milk based infant food GATT Art. XX (d) 
12. 19 01 10 20 Milk based infant food GATT Art. XX (d) 
13. 25 05 Sand GATT Art. XX (i) 
14. 25 06 21 10 Sand mixed aggregates GATT Art. XX (i) 
15. 25 06 21 20 Sand mixed aggregates GATT Art. XX (i) 
16. 25 15 11 00 Marble GATT Art. XX (i) 
17. 25 17 Stone mixtures GATT Art. XX (i) 
18. 25 22 Limestone GATT Art. XX (i) 
19. 27.13 Asphalt, fuel oil, gasoline, diesel, kerosene,  GATT Art. XX (g) 
20. 27.14 Liquefied Petroleum Gas (LPG), and Natural 
Gas (Methane and Ethane) GATT Art. XX (g) 
21. 27 10 11 
except  27 10 11 11 
27 10 11 12 
27 10 11 13 
27 10 11 42  Fuels GATT Art. XX (g) 
22. 27 11 Gases, including liquefied gases GATT Art. XX (g) 
23. 27 13 20 00 Asphalt GATT Art. XX (g) 
24. 27 14 90 10 Asphalt and bitumen GATT Art. XX (g) 
25. 28.44 Radioactive materials GATT Art. XX (b) 
26. 28.45 Radioactive materials GATT Art. XX (b) 
27. 90 22 19 10 Radioactive materials GATT Art. XX (b) 
28. 90 22 19 90 Radioactive materials GATT Art. XX (b) 
29. 
30. 31. 29 03 19 10 
29 03 45 29 03 49 Ozone depleting materials GATT Art. XX (b) 
32. 30.03 Medicines GATT Art. XX (b) 
33. 30.04 Medicines GATT Art. XX (b) 
34. 73 11 00 30 Filled gas cylinders GATT Art. XXI 
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 Agricultural machiner y GATT Art. XX (d)  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 127 
 
 
 S. No. HS Code Description WTO Justification 
46. 
47. 87 01 30 00 
87 01 90 00 
48. 85 48 10 00 Scraps of batteries etc. GATT Art. XX (b) 
49. Different 
Headings Wild fauna and flora, and products thereof GATT Art. XX (g) 
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 128  
 
 ANNEX M 
List of General Committees and Branch
 
Technical Committees  
1. Agriculture and Food Products General Committee 
a. Food Safety 
b. Meat and Fish 
c. Dairy and Dairy Products d. Cereals and Legumes Products e. Confectionary f. Fruits, Vegetables, Condiments and Spices and their Products 
2. Construction and Building Materials General Committee 
a. Tiles 
b. Sanitary Ware c. Cement and Concrete d. Doors and Windows 
e. Pipes 
f. Glass  g. Construction Sectors 
3. Electrical and Electronic Products General Committee 
a. Household Appliances and Their Accessories 
b. Cables and Their Accessories 
c. Electronics and Communications Sets 
d. Luminaires and Their Accessories e. Electrical Systems and Accessories f. Power Generation, Transmission and Distribution  g. Medical Appliances and Supplies 
4. Mechanical and Metal Products General Committee 
a. Motor Vehicles 
b. Pressure Vessels and Steam Boilers c. Air Conditioning and Refrigeration d. Metal and Wooden Kitchens e. Office and School Furniture 
f. Water Pump and Irrigation Systems 
g. Steel Cans Used for Canning  h. Amusement Park Devices 
5. Chemical and Petroleum Products General Committee 
a. Petroleum Products 
b. Detergents and Hygienic and Cosmetic Products 
c. Plastics d. Chemicals e. Paints and Varnishes  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 129 
 
 
 6. Textile Products General Committee 
a. Textile Products 
7. Measurement and Calibration General Committee 
a. Physical Measurements 
b. Mechanical Measurements 
c. Electrical and Electronic Measurements  
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 130 ANNEX N 
List of Saudi SPS Measures  
H.S. No. Description of product Nature of  SPS measure Justification  Country(ies) 
0101 
 
0102 
 
010410 
 
010420 Live Equine Animals 
 
Live Bovine Animals 
 
Live Sheep  
 
Live Goats  
 
Banned because of Screw Worm  
 
Article 5 of SPS Agreement  
 
Panama 
0102 Live Bovine Animals Banne d because of  BSE (Bovine 
Spongiform Encephalopathy) Article 5 of SPS Agreement Britain, Spain, Portugal, Italy, Germany, France, Greece, 
Austria, Belgium, Switzerland,  Holland, Denmark, Finland, 
Slovenia, Luxembourg, Canada , Ireland, Czech Republic, 
Northern Ireland, USA (Washington State) 
0102 Live Bovine Animals Banned because of FMD (Foot 
and Mouth Disease) Article 5 of SPS Agreement Uruguay, Syria 
0102 
 
010410 
 
010420 Live Bovine Animals 
 
Live Sheep  
 
Live Goats   
Banned because of  FMD (Foot 
and Mouth Disease) Article 5 of SPS Agreement All African and Eu ropean Countries, Chin a, India, Malaysia, 
Yemen, Iran, Iraq, Jordan, Taiwan, Pakistan, Turkey, Lebanon 
0201 Live Bovine Animals Banned, Because of Render Pest Article 5 of  SPS Agreement All African Countries (except South Africa) , Pakistan, Iran, 
Afghanistan, Mongolia 
0201 
0202 
02060200 
02062100 
02066200 02062900 
15020010 
16025010 
16025090 
16029010 
16029021 
16029029 
16029030 
16030010 All types of Bovine Meat and 
its Products Banned, Because of BSE (Bovine 
Spongiform Encephalopathy) Article 5 of  SPS Agreement All EU countri es, Switzerland, Japan,  Cyprus, Slovakia, 
Hungary, Czech Republic, Estonia, Lithuania     
  WT/ACC/SPEC/SAU/4/Rev.4
 Page 131H.S. No. Description of product Nature of  SPS measure Justification  Country(ies) 
 0201 
0202 
020602000 
02062100 
02066200 
02062900 
15020010 
16025010 
16025090 
16029010 16029021 
16029029 
16029030 
16030010  All types of  Bovine Meat and 
its Products Banned, Because of   Render Pest Article 5 of  SPS Agreemen t All African Countries (except South Africa), Pakistan, Iran, 
Afghanistan, Mongolia 
0201 0202 
020602000 
02062100 
02066200 
02062900 
15020010 
16025010 
16025090 
16029010 
16029021 
16029029 
16029030 
16030010   All types of  Bovine Meat and 
Its Products Banned because of  FMD (Foot  
and Mouth Disease) Article 5 of SPS Agreement All African Count ries (except South Africa), All European 
Countries, China, India, Malays ia, Yemen, Iran, Iraq, Jordan, 
Taiwan, Pakistan, Lebanon  
0204 
02068010 
02068090 
02069011 
02069012 
02069019 
02069090 All types of Sheep and Goat 
Meat and Their Products Banned because of  FMD (Foot  
and Mouth Disease) Article 5 of SPS Agreement All African Countrie s (except South Africa, Sudan, Ethiopia ), 
All European Countries, China, Malaysia, Yemen, Iran, Iraq, 
Jordan, Taiwan, Lebanon   
0207 
0407 Poultry Meat and Its Products Banned because of Avian 
Influenza Article 5 of SPS Agreement Hong Kong, Viet nam, South Korea, China, Thailand, 
Indonesia, Pakistan, Japan 
0105 Live Birds Banned because of West Nile 
Fever Article 5 of SPS Agreement USA  
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 132 H.S. No. Description of product Nature of  SPS measure Justification  Country(ies) 
0101 
 
0105 
01063100 
01063200 
01063910 
01063920 Live Equine Animals 
 
Live Birds 
 
 
 Banned because of West Nile 
Fever Article 5 of SPS Agreement Oman, Morocco 
0105 
01063100 
01063200 
01063910 
01063920 
 
04070011  
 
Live Birds  
 
 
 
Hatching Eggs Banned because of Avian 
Influenza Article 5 of SPS Agreement All Asian countries, USA, Canada 
0105 
01063100 
01063200 
01063910 
 
04070011 Live Birds 
 
 
 
 
Hatching Eggs Banned because of ILT Article 5 of SPS Agreement Egypt, Syria, Jordan 
0207 
0407 
 
0408 Poultry Meat and Its Products 
 
 
Eggs Banned due to Contamination 
with Nitrofin (Carcinogenic 
Herbicide) Article 5 of SPS Agreement Germany 
0302 
0303 
0304 
0306 
0307 Fish (Fresh, Chilled, Frozen) Cholera - Related Artic le 5 of SPS Agreement Infected Areas (World Wide) 
04029110 
04029120 
04029410 
04031000 
04039020 
0404 Fresh Milk and Milk Products 
(Short Shelf Life) Cholera - Related Article 5 of SPS Agr eement Infected Areas (World Wide)  
  WT/ACC/SPEC/SAU/4/Rev.4
 Page 133H.S. No. Description of product Nature of  SPS measure Justification  Country(ies) 
07039000 
07041000 
07042000 
07049000 
07051100 
07051900 
07097000 
07099050 
077099060 
07103000 Leafy Vegetables Cholera - Related Article 5 of SPS Agreement Infected Areas (World Wide) 
08011000 
08011900 Coconut Trees and all 
Products Banned because of C.C.C Viroid Article 5 of SPS Agreement Philippines, Solomon Islands, Guam 
 WT/ACC/SPEC/SAU/4/Rev.4 
Page 134  
 
 APPENDIX 
DRAFT DECISION 
ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
Decision of [...] 
The General Council, 
 Having regard to paragraph 2 of Article XII a nd paragraph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organiza tion (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e WTO Agreement agreed by the General Council 
(WT/L/93). 
 Conducting the functions of the General Council in  the interval between meetings pursuant to 
paragraph 2 of Article IV of the WTO Agreement, 
 Taking note of the application of the Kingdom of Saudi Arabia for accession to WTO 
Agreement dated "date", 
 Noting the results of the negotiations direct ed toward the establishment of the terms of 
accession of the Kingdom of Saudi Arabia to the WTO Agreement and having prepared a Protocol on the Accession of the Kingdom of Saudi Arabia, 
 Decides as follows: 1.  The Kingdom of Saudi Arabia may accede to the WTO Agreement on the terms and 
conditions set out in the Protoc ol annexed to this Decision. 
_______________  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 135 
 
 
 DRAFT PROTOCOL 
ON THE ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accorded under Article XII of  the Marrakesh Agreement 
Establishing the World Trade Organization (hereinaft er referred to as the "WTO Agreement"), and the 
Kingdom of Saudi Arabia,  
 Taking note of the Report of the Working Party on the Accession of the Kingdom of Saudi 
Arabia to the WTO Agreement reproduced in doc ument WT/ACC/SAU[...], dated [...] (hereinafter 
referred to as the "Working Party Report"), 
 Having regard to the results of the negotiations on the accession of the Kingdom of Saudi 
Arabia to the WTO Agreement,  
 Agree as follows: PART I - GENERAL 1.  Upon entry into force of this Protocol pursu ant to paragraph 8, the Kingdom of Saudi Arabia 
accedes to the WTO Agreement pursuan t to Article XII of that Agreement and thereby becomes a 
Member of the WTO.  
2.  The WTO Agreement to which the Kingdom  of Saudi Arabia accedes shall be the WTO 
Agreement, including the Explanatory Notes to that  Agreement, as rectified, amended or otherwise 
modified by such legal instruments as may have entere d into force before the date of entry into force 
of this Protocol. This Protocol, which shall include  the commitments referred to in paragraph [...] of 
the Working Party Report, shall be an integral part of the WTO Agreement. 
3.  Except as otherwise provided for in paragr aph [...] of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Kingdom of Saudi Arabia as if it had accepted that Agreement on the date of its entry into force. 
4.  The Kingdom of Saudi Arabia may maintain a measure inconsistent with paragraph 1 of 
Article II of the GATS provided that such a measure was recorded in the list of Article II Exemptions 
annexed to this Protocol and meets the cond itions of the Annex to the GATS on Article II 
Exemptions. 
PART II - SCHEDULES 5.  The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and th e Schedule of Specific Commitments annexed to 
the General Agreement on Trade in Services (herei nafter referred to as "GATS") relating to the 
Kingdom of Saudi Arabia. The staging of the c oncessions and commitments listed in the Schedules 
shall be implemented as specified in the re levant parts of the respective Schedules. WT/ACC/SPEC/SAU/4/Rev.4 
Page 136  
 
 6.  For the purpose of the reference in paragra ph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 7.  This Protocol shall be open for acceptance, by signature or otherwise, by the Kingdom of 
Saudi Arabia until [...]. 
8.  This Protocol shall enter into force on th e thirtieth day following the day upon which it shall 
have been accepted by the Kingdom of Saudi Arabia.  
9.  This Protocol shall be deposited with the Di rector-General of the WTO. The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance 
by the Kingdom of Saudi Arabia thereto pursuant to  paragraph 9 to each Member of the WTO and to 
the Kingdom of Saudi Arabia.  
  This Protocol shall be registered in accord ance with the provisions of Article 102 of the 
Charter of the United Nations.  
 Done at [place] this [date of month in full] day of [month and year in full] in a single copy in 
the English, French and Spanish languages, each te xt being authentic, except that a Schedule annexed 
hereto may specify that it is authentic in only one of these languages. 
_______________ 
  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 137 
 
 
 ANNEX I 
SCHEDULE [...] - THE KINGDOM OF SAUDI ARABIA 
Authentic only in the ...  language. 
(Circulated in document WT/ACC/SAU/[...]/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the ...  language. 
(Circulated in document WT/ACC/SAU/[...]/Add.2) ] 
_______________ WT/ACC/SPEC/SAU/4/Rev.4 
Page 138  
 
 APPENDIX
 
Questionnaire  
Information On Import Licensing Procedures  
I. OUTLINE OF SYSTEMS 
1. The Kingdom of Saudi Arabia maintains a non-automatic licensing system that is 
administered in accordance with the provisions of the new Law on Import Licensing Procedures, issued by Council of Ministers Decision No. 88, dated 6.4.1423H (June 2002). 
II. PURPOSES AND COVERAGE OF LICENSING 
1. Identify each licensing system maintained and state what products, appropriately grouped, are 
covered. 
 Ans: A list of items subject to non-automatic li censing is attached to the Working Party 
Report as Annex E. 
2. The system applies to goods origin ating in and coming from which countries? 
 Ans: The system applies to goods originating in and coming from all countries. 
3. Is the licensing intended to restrict the quantit y or value of imports, and if not, what are its 
purposes?  Have alternative methods of accomplis hing the purposes been considered and if so 
which?  Why have they not been adopted? 
 Ans: 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 impor ted.  Alternative methods have not been 
considered. 
4. Cite the law, regulation and/or administrativ e 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 discreti on?  Is it possible for the government (or the 
executive branch) to abolish the system without legislative approval? 
 Ans: Licensing is maintained under Council of Ministers Decision No. 84 (July 2000) and 
Decision No. 88 of the Council of Ministers, dated 6.4.1423H (June 2002).  The list of items 
subject to licensing requirements may be amende d by the Minister of Commerce and Industry 
on the basis of comments received from respec tive government agencies.  The system can 
only be abolished by a decision of the Council of Ministers. 
III. PROCEDURES 
1. For products under restriction as to the quan tity or value of imports (whether applicable 
globally or to a limited number of countries or whether established bilaterally or unilaterally): 
(a to k)  WT/ACC/SPEC/SAU/4/Rev.4 
 Page 139 
 
 
  Ans: There are no restrictions on the quantity or value of imports ((a) to (k) are thus not 
applicable). 
2. Where there is no quantitative limit on impor tation of a product or on imports from a 
particular country: 
(a) How far in advance of importation must  application for a license be made?  Can 
licenses be obtained within a shorter tim e-limit or for goods arriving at the port 
without a license (for example, owing to inadvertency)? 
 Ans: Applications for non-automatic licenses may be  submitted within 21 days prior to the 
closing date of applications. 
(b) Can a license be granted immediately on request? 
 Ans: The maximum period for deciding on license applications is 30 days.  However, in 
practice, licenses normally are granted in a shorter period. 
(c) Are there any limitations as to the period of the year during which application for 
license and/or importation may be made?  If so, explain. 
 Ans: There are no limitations as to the period of the year during which applications or 
importation may be made. 
(d) Is consideration of license applications e ffected 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 appro ach more than one administrative organ? 
 Ans: Yes, by a single administrative body.  In some cases, the body may coordinate with 
other bodies, but the applicant does not have to approach more than one administrative body. 
3. Under what circumstances may an application for a license 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 refu sal to issue a license and,  if so, to what bodies 
and under what procedures? 
 Ans: Applications are not refused other than for reasons of failure to meet the ordinary 
criteria.  Reasons for refusal of a license are given upon request of the applicant.  Applicants 
have a right of appeal in the event of refusal of a license.  The initial appeal can be made to 
the Head of the administrative body within 15 da ys of the decision.  An appeal against the 
decision of the Head of the administrative bod y lies to the Board of Grievances within 30 
days of the decision. 
IV. ELIGIBILITY OF IMPORTS TO APPLY FOR LICENSE 
1. Are all persons, firms and institu tions eligible to apply for licenses: 
(a) under restrictive licensing systems? 
(b) under non-restrictive systems? WT/ACC/SPEC/SAU/4/Rev.4 
Page 140  
 
  If not, is there a system of registration of pers ons 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? 
 Ans: 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 compani es registered under applicable Saudi laws. 
(ii) Natural persons listed in the Commercial Register. (iii) Saudi nationals and non-Saudis holding resi dence permits but not registered in the 
Commercial Register provided the importe d goods are for their personal use. 
 Imports by parties in (i) and (ii) above shall be limited to goods relate d to the scope of their 
business as inscribed in the Commercial Register. 
[There is no Section V in the official WTO form; apparently there was a clerical issue when the form was issued.] 
VI. DOCUMENTATION AND OTHER REQUIREMENTS FOR APPLICATION FOR 
LICENSE 
1. What information is required in applications?  Submit a sample  form.  What documents is the 
importer required to supply with the application? 
 Ans: The applicant has to provide description of the item/s, their value and weight, and copies 
of the invoice and the bill of lading.  Saudi Arabia has submitted to the Secretariat Council of 
Ministers Decision No. 84 (July 2000) and its attachments, which incl ude the necessary form, 
and other details for application for licence. 
2. What documents are required upon actual importation?  Ans: Documents required are: the import license, or iginal invoice and certificate of origin.  
The last two are requirements for customs clearance and not requirements of the licensing system. 
3. Is there any licensing fee or administrative ch arge?  If so, what is the amount of the fee or 
charge? 
 Ans: There are no licensing fees or administrative charges. 
4. Is there any deposit or advance payment require ment associated with the issue of licenses?  If 
so, state the amount or rate, whether it is ref undable, the period of retention and the purpose 
of the requirement. 
 Ans: There are no deposit or advance payment requirements associated with the issue of a 
license. 
VII. CONDITIONS OF LICENSING 
1. What is the period of validity of a license?  Ca n the validity of a license be extended?  How?    WT/ACC/SPEC/SAU/4/Rev.4 
 Page 141 
 
 
  Ans: 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. 
2. Is there any penalty for the non-utilization of a license or a portion of a license?  Ans: There is no penalty for non-utilization of a license or portion of a license. 
3. Are licenses transferable between importers?  If so, are any limitations or conditions attached 
to such transfer? 
 Ans: Licenses are not transferable between importers. 
4. Are any other conditions attached to the issue of a license: 
(a) for products subject to quantitative restriction? (b) for products not subject to quantitative restriction? 
 Ans: No other conditions are attached. 
VIII. OTHER PROCEDURAL REQUIREMENTS 
1. Are there any other administrative procedures, apart from import licensing and similar 
administrative procedures, required prior to importation? 
 Ans: There are no other administrative procedures. 
2. Is foreign exchange automatically provi ded by the banking authorities for goods to be 
imported?  Is a license required as a condition to  obtaining foreign exchange?  Is foreign 
exchange always available to cover licenses i ssued?  What formalities must be fulfilled for 
obtaining the foreign exchange? 
 Ans: There are no foreign exchange restric tions or controls in Saudi Arabia. 
 
__________   
 