Saudi Arabia
 Saudi business and laws still favor Saudi citizens, and Saudi Arabia still has
trade barriers, mainly regulatory and bureaucratic practices, which restrict the
level of trade and investment.
 For example, only Saudi nationals are permitted to engage in trading activities
and only Saudis are permitted to register as commercial agents. All industrial
enterprises are open to non-Saudis, and they can also trade in the products they
manufacture.
 Saudi non-tariff barriers include: preferences for national and GCC products in
government procurement; a requirement that foreign contractors obtain their
imported goods and services exclusively through Saudi agents; and the
economic offset requirement mandating reinvestment of a portion of contract
value in indigenous industries for certain high value government contracts,
particularly in defense.
Licensing Requirements for Commercial Activities – Agent Requirements
 Exporters to Saudi Arabia are not required to appoint a local Saudi agent or
distributor to sell to Saudi companies, but commercial regulations restrict
importing for resale and direct commercial marketing within the Kingdom to
Saudi nationals and wholly Saudi-owned companies.
Non-automatic licensing
 Distillation equipment used for producing distilled water may be imported subject
to an import licence from the Ministry of Commerce.
 Petroleum jellies and waxes require an import licence from the Ministry of
Interior.
 Balloons, gliders, aircraft and spacecraft and parts thereof require a prior licence
from the competent Government Department.
 According to international convention, imports of antiques are subject to a licence
from the Ministry of Education.
 Night binoculars may only be imported by a competent agency.
 Chemicals imported by commercial importers require an import licence from the
Ministry of Commerce. Chemicals imported by factories require an approval and
import licence from the Ministry of Industry and Electricity.
 Pharmaceutical products, controlled substances for medical use, narcotics,
psychotropics, chemicals under control which could lead to narcotics
manufacturing, ethyl alcohol, certain biological products, and blood products may
be imported subject to an approval from the Ministry of Health.
 For human life and plant health protection reasons, the Ministry of Agriculture
and Water issues import licences for the following goods: seeds and fertilizers,
pesticides, veterinary drugs and vaccines, feeds additives, biological materials,
pigeons, land birds, rabbits, and animal semen.
 For national security reasons, explosives and dangerous chemicals require an
approval from the Ministry of Interior.
 The importation of radio and electronics equipment, TV-monitoring cameras and
accessories and closed circuit television, burglar or fire alarms, high quality
photocopiers, arms and ammunition requires an import licence from the Ministry
of Interior to ensure national security.
 The Ministry of PTT is the competent authority to issue import licences for
wireless sets and radio communication apparatus to ensure national security and
rationalization of the use of frequencies.
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 Ethyl alcohol may be imported subject to an approval from different authorities:
(1) the Ministry of Health; or (2) the Ministry of Industry; or (3) the Ministry of
Health and the Ministry of Industry.
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 Horses of Arab breed may only be imported by air, by a direct flight from the
exporting country. The Chivalry Club is responsible for issuing import licenses to
ensure that the Arab breed is maintained.
 All subsidized agricultural machinery and equipment require an import licence
from the Ministry of Agriculture and Water.
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Import Regulations
1. Registration requirements
Importers of commercial shipments are required to provide Saudi Customs with
their importer code number that is listed on their trade license that they receive
when they register with their local Chamber of Commerce. Veterinary drugs and
products must be registered with the Ministry of Agriculture & Water, Animal
Resources Department, Division of Registration and Control of Veterinary Drugs
and Products.
1. Documentation Requirements
Shipments with a value of $13,000 (USD) or more require a Certificate of Origin
legalized by the Saudi Arabia Royal Embassy. Additional documents or permits
may be required based on the type of commodity.
2. Inspection
The Saudi Arabian Standards Organization (SASO) has implemented a program
known as the International Conformity Certification Program (ICCP) that applies
to 76 regulated products. The purpose of the program is to protect the Saudi
Arabian consumer.
3. Temporary Import Bond Shipments
Temporary goods which are imported for promotional use, require an invoice with
the value of the goods endorsed by the local Chamber of Commerce, and a
certificate of origin. The invoice should clearly state that the goods are being
imported for exhibition purposes only and will be re-exported. A refundable
deposit of 5% or 20% must be paid to the Saudi Customs
Technical Barriers to Trade (TBT's)
Saudi Arabia's pre-shipment inspection program known as the International
Conformity Certification Program (ICCP) is controversial and is seen by many as a
barrier to free trade. It adds various costs to imports and can cause delays. Shipments
valued under $5000.00 (USD) do not require ICCP
Standards & other Technical Requirements
Standards
All imported goods should conform to approved Saudi standards. In the absence of local
standards, products should conform to International Standards. Many Saudi standards are
applicable in other Gulf countries.
The Saudi Arabian Standards Organization (SASO) has adopted ISO 9000 as the official
standards for the Kingdom. SASO acts as the official accreditation body through the
Quality Assurance Department. While compliance is voluntary, many government
procurements require this standard or its equivalent. Currently, there are more than 1,420
SASO and 976 Gulf Cooperation Council (GCC) standards.
Labeling and Marking Requirements
 Labeling and marking requirements are compulsory for any products exported
to Saudi Arabia.
 Labeling is particularly important for companies marketing food products,
personal care products, health care products, and pharmaceuticals.
 SASO has specific requirements for identifying marks and labels for various
imported items.
 Labels must be in Arabic for any imported foodstuff item, which should
basically reveal the same information on the container as in the foreign
language, i.e. ingredients, country of origin, manufacturer, shelf life,
instructions for use, etc.
 Quality control laboratories at ports of entry may reject products that are in
violation of existing laws. Products arriving at port having less than one-half of
the time remaining between production and expiration date will be rejected and
cannot be sold on the market. U.S. manufacturers are urged to discuss labeling
requirements with their selected representative or distributor.
 Labeling and expiration date requirements are stringent and present an
export impediment for U.S. fresh eggs and bottled baby food products.
 Arabic manuals must be included with any household electrical appliances
exported to Saudi Arabia.
 Mandatory labelling requirements for the presence of genetically modified
ingredients became effective on 1 December 2001.
 Labelling requirements for all imported pre-packaged foodstuffs and additives
are satisfied through SASO's mandatory standard No. SSA/1995 which is
identical to Gulf standard No. 9/1995 and is based on the CODEX guidelines.
Packaging Requirements
 Packaging requirements for imports by sea are in conformity with decree
No. SPA-1740/82 of 4 May 1982.
 Jute made packaging materials to be used for packing of food articles must
conform to the specifications for such products laid down by the country.
Conformity Assessment
The International Conformity Certification Programme (ICCP) is a combined
conformity assessment and pre-shipment inspection scheme. Under the
ICCP, 77 regulated consumer product lines are subject to quality and safety
control through the application of mandatory Saudi and international
standards on the following groups of commodities: (1) toys and playground
equipment, (2) electrical and electronic items, (3) automotive products, (4)
chemical products, and (5) others.
Preshipment Inspection Requirements
The International Conformity Certification Programme (ICCP) uses preshipment
inspection as a tool of conformity assessment on shipments valued at US$5000 and more.
Pre-shipment inspection varies with the status of the particular product vis-à-vis the
programme, ranging from full pre-shipment inspection and pre-shipment testing for
unknown/unregistered products, to pre-shipment inspection plus occasional pre-shipment
testing for registered products, to occasional random pre-shipment inspection only for
type-approved products. On behalf of SASO, the Intertek Testing Services administer the
ICCO on a global basis.
Import Licensing
In Saudi Arabia, the importation of certain articles is either prohibited or requires special
approval from competent authorities. Specifically, the importation of alcohol, firearms,
pork products and used clothing is prohibited. Imports of agriculture seeds, live animals,
fresh and frozen meat, books, periodicals, movies, tapes, religious books and materials,
chemicals and harmful materials, pharmaceutical products, wireless equipment, horses,
radio-controlled model airplanes, products containing alcohol, natural asphalt and
archaeological artifacts require special approval.
Regulated products exported to the Kingdom are required to be registered by the
manufacturer and must have a Certificate of Conformity issued by Intertech. Failure to
provide this certification will result in the rejection of the import entry by Saudi Arabian
Customs. The complete details on how this process works can be found at the ICCP
website: http://www.iccp.com/
Special Import Provisions
Military uniforms or equipment of any kind require the consignee to hold a valid import
permit letter from the Ministry of Interior.
Printed matter such as books, pictures, records, films, tapes, slides, movies, videos,
compact discs, diskettes, etc are subject to censorship and confiscation.
Certain radio transmitter/communication equipment as well as telescopic equipment
require that the consignee provide an import letter from the Ministry of Interior.
Import Prohibitions
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Any item contrary to the Royal Family, Saudi Arabian or Muslim beliefs or
morality
Goods either shipped from or manufactured in Israel are completely banned
Alcohol and alcohol related items
Items of human concealment such as: wigs, masks, artificial pearls, etc.
Items used for gambling or games of chance.
Stuffed animals and pokemon toys
Any items which depict or display the female anatomy (other than for strict
medical purposes).
Watches which have cameras attached to them.
Pornography in any form.
Advertising materials for tobacco products may not be imported for health
protection reasons
Imports of asbestos and materials or goods containing asbestos are prohibited.
The importation of genetically-modified food and food ingredients manufactured
from animal products is not authorized.
Nutmeg, poppy, seeds of poppy and cannabis, black cannabis, opium, and
miscellaneous herbs are prohibited for importation.
Imports of parts for use solely or principally with radio communication apparatus
and television receivers are banned for security reasons.
Various items may not be imported for religious reasons. These include live
swine, meat of swine and other products of swine, frogs' legs, food products made
from animal blood, alcoholic beverages, leather of beasts, three dimensional
pictures and any goods which offend Sharia and public morality, as well as tools
and machinery designed for gambling excluding those for innocent amusement.
Due to the intended illegal use of the products, imports of empty bags bearing
trademarks of the manufacturers and bottles with origin evidence affixed thereon
are banned.
Import Restrictions
The following items are not acceptable for carriage to any international destinations
unless otherwise indicated. (Additional restrictions may apply depending on
destination. Various regulatory clearances in addition to customs clearance may be
required for certain commodities, thereby extending the transit time.)
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APO/FPO addresses.
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C.O.D. shipments.
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Human corpses, human organs or body parts, human and animal embryos,
or cremated or disinterred human remains.
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Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany,
Japan, United Arab Emirates and United Kingdom. Note: United Arab Emirates only
allows Class 1.4 explosives to be shipped hold- for- pick-up to the FedEx Express
facility in Dubai.)
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Firearms, weaponry, and their parts (acceptable between the U.S. and Puerto
Rico).
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Perishable foodstuffs and foods and beverages requiring refrigeration or other
environmental control.
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Live animals (including insects) except via our Live Animal Desk
(1.800.405.9052).
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Plants and plant material, including cut flowers (cut flowers are acceptable from
the U.S. to selected points in Canada and from Colombia and Ecuador to the U.S.).
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Lottery tickets and gambling devices where prohibited by local, state, provincial
or national law.
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Money (coins, cash, currency, paper money and negotiable instruments equivalent
to cash such as endorsed stocks, bonds and cash letters).
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Collectible coins and stamps.
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Pornography.
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Hazardous waste, including, but not limited to, used hypodermic needles or
syringes or other medical waste.
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Shipments that may cause damage to, or delay of, equipment, personnel or other
shipments.
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Shipments that require us to obtain any special license or permit for
transportation, importation or exportation.
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Shipments whose carriage, importation or exportation is prohibited by any law,
statute or regulation.
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Shipments with a declared value for customs in excess of that permitted for a
specific destination.
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Dangerous goods except as permitted under the Dangerous Goods section of these
terms and conditions.
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Dead animals (including insects) or animals that have been mounted.
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Shipments being processed under:
 Duty drawback claims unless advance arrangements are made.
 Temporary Import Bonds - acceptable under the FedEx International Broker
Select option, for initial import only.
 U.S. State Department licenses.
 Carnets.
 U.S. Drug Enforcement Administration export permit.
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Shipments destined to or being withdrawn from a Foreign Trade Zone.
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Letters of Credit (however, shipments covered by a Letter of Credit calling for a
"Courier Receipt" as defined by Article 29 of UCP 500 may move via FedEx
International Priority).
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Certificate of Registration shipments (CF4455).
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Shipments moving into or out of Foreign Trade Zones or bonded warehouses.
Government Procurement
 When Saudi Arabia acceded to the WTO in December 2005, it committed to
initiating negotiations for accession to the WTO Agreement on Government
Procurement (GPA) and to complete its GPA negotiations within one year of
becoming a WTO Member.
 However, Saudi Arabia has not begun negotiations for GPA membership, nor has
it become an observer in the WTO Committee on Government Procurement.
 Saudi Arabia is currently reviewing its government procurement procedures to
bring them in line with WTO GPA requirements; however, it has not yet
published revised procedures.
 Several royal decrees that strongly favor GCC nationals apply to Saudi Arabia’s
government procurement.
 Under a 1983 decree, contractors must subcontract 30 percent of the value of
any government contract, including support services, to firms majority-owned
by Saudi nationals. An exemption is granted only where no Saudi-owned
company can provide the goods and services necessary to fulfill the
procurement requirement.
 The tender regulations require that Saudi individuals and establishments be given
preference over other suppliers in government procurement. However, the
regulations extend the preference to other suppliers in which Saudi nationals hold
at least 51 percent of the supplier’s capital.
 The tender regulations also give a preference to products of Saudi origin that
satisfy the requirements of the procurement.
 Saudi Arabia gives priority in government purchasing programs to GCC products.
These items receive up to a 10 percent price preference over non-GCC products in
all government procurements in which foreign suppliers participate.
 Foreign suppliers that participate in government procurement are required to
establish a training program for Saudi nationals. Some government contracts also
require a minimum level of subcontracting with Saudi companies. In addition,
 The Saudi government may favor joint venture companies with a Saudi partner
over foreign firms, and will also support companies that use Saudi goods and
services.
 Foreign suppliers working only for the government, if not already registered to do
business in Saudi Arabia, are required to obtain a temporary registration from the
Ministry of Commerce and Industry within 30 days of contract signing.