RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SAU/47
5 October 2000
(00-4079)
Working Party on the Accession
of the Kingdom of Saudi ArabiaOriginal:  English
ACCESSION OF THE KINGDOM OF SAUDI ARABIA
Additional Questions and Replies
The Ministry of Commerce of the Kingdom of Saudi Arabia has submitted replies to
additional questions raised, with the request that they be circulated to members of the Working Party.
_______________
Sanitary and Phytosanitary Measures
Question 1.  
At the sixth Working Party meeting in Septemb er 1999, Saudi Arabia indicated that its current
regime applies the same sanitary and phytosanitary requirements to imports from all countries.
The SPS Agreement, in contrast, states that WTO Members should recognize different regional
conditions that affect human, animal and plant health.
Will this requirement be reflected in Saudi Arabia ’s new legal structure on SPS, i.e. to reflect
the recognition of regional conditions?
Answer:
Yes, it will be so reflected in Saudi Arabia’s new regulations on SPS.
Question 2.  
With reference to the sixth Working Party in September 1999, Saudi Arabia indicated at that
time that, in addition to legislation to impl ement the SPS Agreement, it would review other
possible areas of inconsistency between its cu rrent regime and the requirements of the SPS
Agreement.  These would include the requirements in Council of Ministers Resolution No. 207(26.1.1396H) “Agriculture Quarantine Regulation s” and No. 208 (26.1.1396H) “The Statutory
Instrument of the Veterinary Quarantine”.
Will Saudi Arabia’s new legislation to implement the requirements of the WTO SPS Agreement
revise the provisions of these Resolutions to reflect the requirements of the SPS Agreement?
Answer:
Two regimes on “Phytosanitary Quarantine” and “Veterinary Quarantine” including revised
requirements mentioned in the Resolutions No. 207 (Agriculture Quarantine Resolution) and No. 208
(the Statutory Instrument of the Veterinary Quarantine) are actually under study in consultation withWT/ACC/SAU/47
Page 2
FAO and will be approved very soon.  The new regimes, common to the six Gulf States, will take the
requirements of the SPS Agreement into consideration.
Question 3.  
In light of Saudi Arabia’s interest in early impl ementation of this Agreement, we would suggest
that the appropriate governmental authorities be gin now submitting notifications to the SPS
Committee as a sign of understanding and ability to implement SPS obligations.
Answer:
Comment noted.
Question 4.  
While we appreciate the information already provid ed in this area, we still have questions about
the underlying justifications for some of Saudi Arabia’s import licensing requirements.
Chemicals
Neither WT/ACC/SAU/44 or WT/ACC/SPEC/SAU/4 fully addresses concerns about existing
import licensing for chemicals.  All chemicals imported to Saudi Arabia are subject to import
licensing.  We are told by exporters that thes e procedures are cumbersome and can be viewed as
restrictive.
With reference to the description in WT/ACC/SAU/30, the licensing system for chemicals
administered by the Ministry of Commerce appears to mandate administrative and
documentation requirements for traders that impede trade.
Answer:
Yes, these are administrative and documentation requirements but these are simple and do not
impede trade.  These would be further revised.
Question 5.  
Could Saudi Arabia explain in detail the justification for these licensing requirements, both in
technical and WTO terms.
Answer:
The licensing requirement is for security and safety reasons, to ensure that imported
chemicals are not dangerous or of explosive nature and that the importer would have appropriately
safe arrangements for storage.
The licensing requirement is justified under Articles XX(b) and XXI of GATT 1994.
Question 6.  
Are Saudi Arabia’s licensing requirements for all chemicals automatic or non-automatic, or
does it vary?  Are the specific criteria applie d to get a licence listed and available for review by
traders?WT/ACC/SAU/47
Page 3
Answer:
It is non-automatic licensing.  The criteria and conditions are listed in the import licensing
guide and are available for review by traders.
Question 7.  
Before licenses are given by the Ministry of Commerce, the Ministries of Interior and Health
have to approve the licence.  Are domestic chemical producers required to get the same
approvals from the Ministries of Interior or Health?
Answer:
Yes, the same procedure applies to domestic producers.
Question 8.  
In WT/ACC/SAU/30, Saudi Arabia states that all chemicals imported by factories must be
licensed by the Ministry of Industry and Electricity.
Is this a safety requirement?  If so, why are impo rt licenses more effective than a factory safety
requirement that could be equally applied to both domestic and foreign goods?
Answer:
As stated in WT/ACC/SAU/30, commercial importers of chemicals require a licence from the
Ministry of Commerce, whereas importation of chemicals by factories requires a licence from theMinistry of Industry and Electricity.  As stated  in paragraph 16 of WT/ACC/SAU/30, licenses are not
refused if all the documentation and information is complete.
Question 9.  
Under the licensing requirements for pesticides, an importer is required to register with the
Ministry of Agriculture before applying fo r a licence.  According to WT/ACC/SAU/30, this
registration  process takes one to two years.
This requirement would appear to conflict with the provisions of the WTO Agreement on
Import Licensing Procedures, which  states that licenses should be processed in a timely manner
not exceeding 30 days.
Answer:
Agricultural Pesticides Registration is required for both domestic and imported pesticides
(finished products and technical active ingredients), before they can be sold, distributed or used.
Pesticides have to be evaluated under local conditions in the field and laboratory for a minimum of
two years.
After approval, the pesticide registration is valid for five years from the date of issuing except
in case it is cancelled upon national or international considerations.  For importation, an instant import
licence is given upon request and it is valid for six months.WT/ACC/SAU/47
Page 4
Question 10.  
Why does the registration process take two years?
Answer:
The answer to Question 9 refers.
Question 11.  
Why must an importer register each time he imports or for each type of pesticide imported; or
does registration for this purpose cover all instances of importation of all pesticides.
Answer:
The answer to Question 9 refers.
Question 12.  
Are domestic producers of pesticides required to have the same registration and does it
take the same amount of time?  Please compare the steps to be taken for both domestic andimported products.
Answer:
The answer to question 9 refers.
High Quality Photocopiers
Question 13.  
In the draft Working Party Report WT/ACC/SPEC/SAU/4 and in WT/ACC/SAU/30 the Saudi
Arabian representative stated that high quality photocopiers require an import licence from the
Public Security Department of Forgery becaus e these photocopiers can produce extremely high
quality reproductions of documents such as pap er currency, official documents, certificates,
passports, maps and stamps.
Please provide information on how a high quality photocopier is defined for this purpose?
Answer:
It is a photocopier which captures colours, designs, graphs and photographs.
Question 14.  
Can Saudi Arabia confirm that any company wishing to import high-quality photocopiers for
legitimate business purposes will be granted an import licence?
Answer:
Yes, it is so confirmed.WT/ACC/SAU/47
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Question 15.  
Is the required licence issued automatically, e.g., upo n receipt of information that makes it clear
the import is for legitimate commercial use and not to counterfeit?
Answer:
Yes.
Question 16.  
If the Public Security Department has discretion to refuse importation, i.e., if this is a non-
automatic licensing requirement, what are the crit eria the Department uses to refuse imports?
Answer:
It is the Ministry of Commerce, and not the Public Security Department, which has the
discretion to refuse a licence. The criteria for refu sal is if the importer cannot satisfy the Ministry that
it is importing it for legitimate use.
Agriculture Equipment
Question 17.  
In WT/ACC/SAU/30, Saudi Arabia stated that agricultural equipment is subject to import
licensing so that a subsidy program can be admi nistered.  Actual application for the subsidy is
not necessary to impose the requirement for licensing however.  In addition, the documentsneeded to apply for a licence ma ke the licensing system restrictive.  Importers must be an
authorised dealer or agent and are required to provide a commercial registration, technical
specifications  for the equipment, a price list a nd invoice price, a certificate of origin, a report
for soil, climate and crop utilisation of the ma chinery, and a one year guarantee on the product.
These requirements seem excessive.  Are the identical requirements applied to similar
equipment produced domestically or imported from GCC members?
Answer:
The above noted requirements also apply to similar equipment produced domestically and
imported from GCC countries.  Domestic producers have to fulfill additional requirements such as:
1. Copy of the Industrial Permit issued by the Ministry of Industry and Electricity
together with a description of the factory activities, address and location;
2. Basic designs for agricultural machinery to be manufactured and its technical
specifications;
3. Full specification of the final product and to fill a special form for technical
specifications of the agricultural machinery;
4. Test report from an approved inst itution + net and continuous horsepower
(performance curves) + power + fuel consumption rate of machinery.
5. Description of Inspection and Qualit y Control Departments in the factory.WT/ACC/SAU/47
Page 6
Question 18.  
Please provide a list of products, includin g HS number, that qualify for the agricultural
equipment subsidy.
Answer:
List of products and their HS number for th e agricultural equipment subsidy is produced
below:
HS No. Product
84079000 Other spark or rotary internal
84135000 Other reciprocating positive
84136000 Other rotary positive displacement
84137000 Other centrifugal pumps
84138110 Other liquid pumps for agriculture
84306900 Other grading and similar machinery
84321000 Ploughs
84322100 Disc harrows
84322900 Other cultivators, weeders
84323000 Seeders, planters and transplanters
84324000 Manure spreaders and fertilizers
84334000 Straw or fodder balers
84335100 Combine harvesters-threshers
84335300 Root or rubber harvesting machines
87011000 Pedestrian controlled tractors
87019000 Other tractors
Question 19.  
If the licence and copious documentation is required  to ensure that the subsidy is used properly,
why hasn't Saudi Arabia liberaliz ed the system for importers that  do not seek to utilize the
subsidy, and what is the WTO justification for maintaining the system for all agriculturalmachinery imports?
Answer:
If the machinery is imported for commercial reasons, it has to be inspected to check its
suitability for the local agricultural use and for the local conditions.  On the other hand, the importer
has to provide maintenance and spare parts for the machines and equipment sold in the local markets.
Question 20.  
Saudi Arabia has stated that another reason fo r the import licence for agricultural equipment is
to ensure compliance with the specifications approved by the Ministry of Agriculture and
Water.
Can Saudi Arabia please confirm that these sp ecifications are published and readily available
for potential importers.WT/ACC/SAU/47
Page 7
Answer:
Yes, the specifications are published as circulars issued by the Ministry of Agriculture and
Water to all importers, existing and new ones.
Question 21.  
Are domestic equipment producers required to provide the same documentation to the Ministry
of Agriculture and Water?
Answer:
Not only that, there are other additional requirements applied to domestic equipment
producers as noted above in reply to Question 17.
Question 22.  
Please identify the existing and/or planned proced ures which will be used to ensure that Saudi
authorities routinely identify the existence and evaluate the appropriateness of adopting
international standards.
Answer:
SASO carries out library research to identify international standards that can be adopted or
used as a main reference for Saudi standards.
SASO is a member in international standards organizations such as ISO, IEC, CAC and
OIML.
Question 23.  
What criteria determines that compliance with an international (or other) standard should be
made mandatory?  When can it be used on a voluntary or optional basis?
Answer:
SASO studies all international standards that are related to the subject of a Saudi standard
under preparation.  The international standards will be used if they fulfill the legitimate objectives for
the Kingdom of Saudi Arabia.
The basis for determining whether the compliance with a standard is mandatory or voluntary
depends on the subject of the standard, and each is studied by the concerned technical committee.
Question 24.  
Are there plans to indicate in future SASO st andard catalogues which standards are mandatory
and which ones are voluntary/optional?
Answer:
It is the intention of SASO to publish its catalogue showing which standards are mandatory
and which are voluntary.WT/ACC/SAU/47
Page 8
Question 25.  
We welcome the efforts made by Saudi authorities to undertake improvements in the ICCP
since it was first implemented in 1995.  It is our understanding that Saudi officials, in
compliance with the WTO obligations, will anno unce in advance any proposals to add products
subject to the mandatory certification requirements and allow an opportunity for publiccomment on the proposed addition.  Please confirm that either as part of such notification, or in
supporting documentation, Saudi authorities will provide an explanation and rationale
justifying the need to mandate the particular product's certification.
Answer:
Yes, advance notification of enforcement date, and justification for inclusion of relevant
product in the ICCP, will be provided to all in accordance with the legitimate objectives prescribed in
WTO provisions.
Question 26.  
It is also our understanding that over time Saudi Arabia intends to move away from the
mandatory certification under ICCP to rely upon voluntary third party certification and thus
remove products from the ICCP list.  Please describe the process and criteria by which products
will be removed from the ICCP.
Answer:
The product list under the ICCP is reviewed peri odically with the view to add to it or remove
products from it.  Removing products from the list depends on adequate availability of the in-country
testing capabilities.
Question 27.  
Saudi authorities have indicated that the ICCP is  used to ensure imported  products comply with
mandatory SASO standards.  For products produced domestically, Saudi authorities have
indicated compliance with mandatory SASO standard is ensured at all time a production licence
is granted to domestic producers.  Does this me an that at the time of application for a licence,
the domestic producer has completed product registration and type approval licensing?  Pleaseclarify which body is responsible for the aware of which SASO or other standards are
mandatory for their particular products?  Are imports from GCC members subject to the
ICCP inspection and certification requirements?
Answer:
It is a pre-requisite requirement for obtaining a Saudi Industrial Licence to produce domestic
products that comply with the relevant Saudi sta ndards.  To this end, the local manufacturer must
contact SASO for consultation and advise in orde r to provide them with the applicable Saudi
standards.  SASO is developing Saudi Confor mity Assessment Program (SCAP) which will be
implemented upon access to the WTO.  Under SCAP, domestic manufacturers applying for SASO's
Quality Mark (equivalent to Type Approval Licen ce under ICCP) must satisfy the requirements of
registration during the pre-assessment stage before progressing to Quality Mark.  The proposed
parties responsible are SASO, Ministry of  Commerce and the Ministry of Industry.
ICCP Certification requirements are applied uniformly world-wide, in cluding GCC countries.WT/ACC/SAU/47
Page 9
Question 28.  
Saudi authorities have explained that the Minist ry of Commerce is responsible for checking the
compliance of imported products with SASO standards and that this is done at the border.  For
domestic production, the Ministry of Industry, Ministry of Municipalities, Ministry of
Agriculture, and the Ministry of Commerce all have responsibilities for enforcement.  Pleaseclarify the respective roles of the Ministries in  ensuring compliance for domestic production.
For example, if the Ministry of Commerce has granted a type approval licence to a domestic
producer, is this product subject to random check s while on the market as a means of ensuring
ongoing compliance?  How does the frequency of such checks, if any, compare to the frequency
of border inspections for imports?
Answer:
Currently, the respective responsibilities of relevant Ministries for ensuring compliance of
domestic producers with the Saudi standards are as follows:
- Ministry of Industry:  Industrial Licence and Inspection Products;
- Ministry of Commerce/SASO:  Quality Mark and Inspection of Products;
- Ministry of Commerce (MoC) and Ministry of Municipality:  Post market random
testing of both imported and domestic products; and
- Ministry of Agriculture:  Livestock, fresh vegetables and fruits (for imported and
locally produced).
Under SCAP the overall responsibility for en suring compliance with Saudi standards for
domestic producers lies with MoC/SASO and the Ministry of Industry.
Question 29.  
It is our understanding that SASO administers a quality mark that is currently available only to
domestic producers.  Use of the mark is opti onal.  The quality mark indicated compliance with
SASO standards.  Please confirm our understanding that access to this mark will be made
available to supplier of imported product on a non-discriminatory basis as part of Saudi
Arabia's adherence to the WTO rules.  Is it Saud i Arabia's expectation that use of the mark will
continue to be optional?  Under the current program, producers must pay SASO for the costs of
periodic surprise inspections.  These costs are ca lculated on the value of  the commodities sold,
rather than the costs of the inspection (servi ces rendered).  Please confirm that SASO will
change its fee structure to reflect the costs of s ervices rendered to domestic as well as foreign
suppliers as part of Saudi Arabia's accession to the WTO.
Answer:
Quality Mark is currently granted to national producers, and it is optional.  SASO will make
the necessary changes to allow foreign producers to be granted the Quality Mark, and obtaining it will
remain optional.  The same fee structure for obtaining Quality Mark will be applicable to both
domestic and foreign producers.
Question 30.  
Does the SASO directive on implementation of  the WTO TBT Agreement establish guidelines to
be used by all authorities (including those of other Ministries, e.g., Saudi Meteorology and
Environmental Protection Administration; Ministry  of Health) that have responsibility forWT/ACC/SAU/47
Page 10
developing and enforcing technical regulatio ns to ensure ongoing compliance with WTO
obligations?
Answer:
SASO is the sole standardization body in the Kingdom.  SASO Board of Directors consists of
all concerned Ministries, Government Agencies and private sectors.  There is coordination betweenSASO and other Saudi authorities on issuing any regu lations that may have an effect on international
trade of Saudi Arabia with other countries.
Question 31.  
Will there be an evaluation of existing mandato ry standards to review the need to apply them
on a mandatory basis?
Answer:
SASO will carry out periodical review of its mandatory standards to review the need of
continuing implementing them as mandatory standards.
__________