Skip to main content
Entire section Custom print Text Only Rich Text Print / Save as PDF
Download Original PDF

New Provisions Regulating Import Operations

No: BC/196 Date(g): 7/3/1978 | Date(h): 28/3/1398

Reference our circular No. 5708/BC/72 dated 18-10-1986 regarding the decision of the Ministry of Commerce No. 1584 dated 23-8-1386H, which regulates imports from abroad, SAMA has received a copy of the letter of HE the Minister of Commerce No. 920 dated 12-3-1398H, addressed to HE the Minister of Finance & National Economy, and containing the new provisions regulating import operations, including the terms and conditions for opening letters of credit as follows:

I. Saudi importer must ask the foreign exporter to deliver the following certificates:
  a)

 A certificate of origin issued by manufacturer or ex porting company, approved by the exporting country, testifying that the exported goods to the Kingdom are of a pure national origin, and mentioning the name of manufacturer or producer in the certificate.

In the event the exported goods are not of a pure national origin, manufacturer or foreign exporter must identify the non-national components and their source

(attached herewith is a sample of the required certificate in Arabic and English (attachment No. one)).

  b) A certificate issued by the vessel owner, agent or captain testifying that the vessel carrying the shipment is not registered in Israel or owned by Israeli nationals or residents and that the vessel will not stop at any Israeli port enroute to the Kingdom of Saudi Arabia. The signatory of this certificates must also confirm that the vessel is permitted to enter Saudi ports in accordance with Saudi laws and regulations (attached is a sample of the required certificate in Arabic & English (attachment No. 2)).
  c)

 A certificate issued by an insurance company confirming that the goods described in the insurance policy have been insured with an insurance company that has an agent or representative residing in the Kingdom.

(attached herewith is a sample of the certificate in Arabic and English (attachment No. 3))

II. Certificates mentioned above must be certified by Saudi diplomatic missions in the city in which the certificate was issued or where the exporter resides in the first place. In the event such missions are not available in the exporting country, the signature of the chamber of commerce or industrial union in the city where the certificate was issued or where the exporter resides shall be sufficient.
III.In the event of COD imports through banks or direct COD imports, where the whole value of the goods, or any part thereof, is paid, Saudi banks must take a statement from the collector of all the documents mentioned in I & II above. When the importer receives these documents as delivered, he, not the banks, shall become responsible for any shortage.
IVIn the event of import from Arabic or foreign free zones, the certificates mentioned in I item (a) above, or a photocopy thereof, must be presented certified by a Saudi diplomatic mission, in the country of export, if any, or, otherwise, the certification of the chamber of commerce or industrial union shall be sufficient
V.The provisions of (I) above is not applicable to goods and products manufactured in the Arab League Country Members and exported therefrom because these countries apply the provisions of Israel Boycott.
VI.These procedures and instructions supersede all the provisions of the Ministry of Commerce decision No. 15 84 dated 23-8-13 86 with no prejudice to the provisions of VII below.
VII.

  For those importers who may have been committed to letters of credits under prior procedures and instructions, they are allowed to act accordingly for six months from the date of this letter.

We hope you comply with the above provisions and provide your correspondents abroad with the English samples of the certificates so that the procedures will be standardized with all the correspondents of Saudi banks. Please instruct your branches to act accordingly.