RESTRICTED
WORLD TRADE WT/ACC/SAU/26
23September 1997
ORGANIZATION(97-3868)
Working Party ontheAccession Original: English
oftheKingdom ofSaudi Arabia
ACCESSION OFTHE KINGDOM OFSAUDI ARABIA
Communication from Saudi Arabia
TheMinistry ofCommerce oftheKingdom ofSaudi Arabia hassubmitted thefollowing
information ontheconformity ofSaudi Arabia 'sICCP withWTO rules andregulations.
_______________
I. GENERAL CONCEPT
TheInternational Conformity Certification Program (ICCP) isaconformity assessment scheme
implemented bytheGovernment ofSaudi Arabia through theMinistry ofCommerce (MOC) in
collaboration withtheSaudi Arabian Standards Organization (SASO). TheProgram aimstoprovide
assurance ofconformity ofselected regulated imported products totheSaudi technical regulations and
standards.
TheWTO/TBTAgreementdefinesconformityassessmentprocedures(CAP)as"anyprocedures
useddirectly orindirectly, todetermine thatrelevant requirements intechnical regulations orstandards
arefulfilled". "CAP include, interalia,procedures forsampling, testing andinspection-evaluation,
verification andassurance ofconformity-registration, accreditation andapproval aswellastheir
combinations". Inspection isdefined inISOGuide 2as:"Conformity evaluation byobservation and
judgement accompanied asappropriate bymeasurement, testing andgauging".
TBT Article 5.4requires WTO Members touseguides orrecommendations issued by
international standardizing bodies asthebasisfortheirCAPexcept where found inappropriate forsuch
reasons asfundamental technological orinfrastructural problems. While eachprocedure ismore or
lessdefined byinternational guidelines, suchastherelevant ISOGuides, theextent ofitsapplication
toprovideassuranceofconformityforparticularproductsunderspecifiedconditionsisnotinternationally
'form andvaries among Member countries based ontheirdevelopmental stage andneeds.
Indeveloped countries, CAPrange fromsuppliers 'declaration ofconformity backed bytesting
carried outbythemanufacturers themselves, tomandatory thirdparty certification, depending onthe
riskclassification oftherespective product. These CAP areaugmented byseveral postmarket
enforcement measures acting asdeterrents against violations ofconformity:
- efficientmarketsurveillanceincludingrandomsampling,inspectionandtestingbyGovernmental
agencies andconsumer groups;
- advanced andcomprehensive product liability lawsprescribing heavy penalties toviolators
andcompensation fordamages toconsumers;WT/ACC/SAU/26
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- matureandcompetitivemarketforceswherebymarketingenterprisesrequiretesting,certification
andquality mark bythirdparties andNotified Bodies asaprerequisite forapproval tomarket
theproduct;
- highlevelofconsumer awareness andsafety consciousness.
Ontheother hand, most developing countries, including Saudi Arabia, suffer from acute
infrastructure andtechnological problems hindering theirabilities toimplement CAPthatrelyonpost
marketenforcement.SeveraldevelopingcountriesincludingWTOMembershaveoptedforpreshipment
inspection (PSI) asaviable alternative, withsome ofthePrograms inexistence forover30years.
TherightofMember countries toimplement suchprograms hasbeenexplicitly acknowledged inthe
recitals tothePSIAgreement, which states: "Noting thatanumber ofdeveloping country Members
haverecourse topreshipment inspection;" "Recognizing theneedofdeveloping countries todosofor
aslongandinsofarasitisnecessary toverify thequality, quantity orprice ofimported goods;"
Nothing inthePSIAgreement precludes adeveloping country from applying preshipment
inspection (PSI) onevery consignment ofimported products, aspredominantly practised bymostWTO
countries thatapply PSIPrograms.
Nevertheless, theICCP adopts theWTO principle ofproportionality embodied inArticle 5.1.2
oftheTBTAgreement which states: "CAPs shall notbemore strict thanisnecessary togivethe
importing Member adequate confidence thatproducts conform withtheapplicable technical regulations
orstandards, taking account oftherisksnonconformity would create".
Accordingly, ICCP utilizes theconfidence conveyed bytheproduct asevaluated under CAP's
inreducing theneedforPSI,depending onthedetermined status oftherelevant product:
- products holding SASO Type Approval License convey thehighest confidence levelastotheir
consistent andcontinuous compliance, andthusqualify forwaiver ofpreshipment inspection
(PSI)andpreshipment testing (PST) ofevery consignment (except foroccasional limited random
PSI). Insuchcases, themanufacturer issues hisownCertificate ofConformity foreach
consignment;
- registered products forwhich therequirements oftesting totheSaudi essential requirements
hadbeenverified through prior evaluation during theRegistration process arebyandlarge
exempted frompreshipment testing (PST), (except foroccasional limited random PST). Only
preshipment inspection (PSI) ofevery consignment iscarried outinthiscase;
- products which havenotundergone prior registration orlicensing under ICCP, andarethus
ofunknown background totheProgram, aresubject toPSIandPSTofevery consignment.
II. SAUDI ARABIA 'STECHNICAL REGULATIONS REGIME
Duetotheinter-relation between technical regulations (mandatory standards andrequirements)
andCAPs, itisbeneficial tohighlight themajor aspects ofconformity ofSaudi Arabia 'stechnical
regulations regime withWTO rules andregulations.
1. Legitimate Objectives
Saudi Arabia 'stechnical regulations areonlyprepared, adopted, andapplied tofulfil such
legitimate objectives as:Protection ofhuman health orsafety, animal orplant lifeorhealth, publicWT/ACC/SAU/26
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morals, theenvironment, national security requirements andtheprevention ofdeceptive practices.
Accordingly, technical regulations satisfy TBTArticle 2.2andGATT 1994 Article XX.
65productcategoriesonamandatorybasisplusanother11foodproductcategoriesonanoptional
basis were initially identified toberegulated bytheICCP .Additional SASO approved mandatory
standards areapplicable toother products which arepresently notregulated bytheICCP. Thedecision
ofwhether toaddsome ofthese products totheregulated listastheProgram develops willbebased
onconsumer susceptibility totherespective hazards aswellastheextent towhich suchproducts comply
withSaudi technical regulations onavoluntary basis.
2. International Harmonization -TBTArticle 2.4
Saudi Arabia usesinternational standards asbasis foritstechnical regulations except when
found tobeineffective orinappropriate because ofSaudi Arabia 'sfundamental climatic orgeographical
factors.
3. Code ofGood Practice -TBTAnnex 3
Saudi Arabia meets andexceeds theCode ofGood Practice forthepreparation, adoption and
application ofstandards (including transparency requirements). SASO avails aperiod of90daysfor
comments onthefirstdraftofstandards asagainst 60daysrequired under theCode, plus30daysfor
comments onthesecond draftasagainst nosuchrequirement under theCode.
4. National Treatment
Royal Decree M110 -1972establishing SASO astheonlystandardizing bodyinSaudi Arabia
ensures thatSaudi standards areapplicable equally todomestic andimported products ona
non-discriminatory basis.
5. Equivalency ofstandards -TBTArticle 2.7
Saudi Arabia recognizes equivalent standards. Theprocess ofregistration under theICCP
involves theevaluation oftheSaudi, International orotherNational standards towhich exporters declare
compliance. Declared standards which arefound tofulfilthesame objectives astheSaudi Standards
aredetermined asequivalent. Thisinformation iskeptindatabases, expanded ,updated andusedas
reference forfuture evaluations astheProgram develops.
III. CONFORMITY OFICCP'SCONFORMITY ASSESSMENT PROCEDURES WITH THE
TBTAGREEMENT
1. International Harmonization -TBTArticle 5.4
AllICCP CAP areinaccordance withinternational guides, particularly:
- ISOGuide 2and22fortesting, inspection, evaluation, supplier 'sdeclaration, registration;
- ISOGuide 28fortypetesting, quality system approval, surveillance;
- ISOGuide 25forlaboratory accreditation approval criteria;
- ISOGuide 39/EN 45004 requirements fortheacceptance ofinspection bodies;WT/ACC/SAU/26
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- ISOGuide 60Code ofGood Practice forconformity assessment.
2. Access -TBTArticle 5.1.1 &5.2.6 states: "...Access entails suppliers 'righttoanassessment
ofconformity under therules oftheprocedure, including... thepossibility tohaveCAP
undertaken atthesiteoffacilities andtoreceive themark ofthesystem."
CAPunderICCParecarriedoutatmanufacturers'/exporters'facilitiese.g.sampling,inspection,
initial factory visitandsurveillance associated withtypeapproval licensing, etc.Testing iscarried
outatanyapproved laboratories chosen byexporters orevenatmanufacturers 'ownlaboratories that
meet theapproval criteria inaccordance withISOGuide 25.SASO Quality Mark isalready being
granted atthesiteoffacilities tointerested manufacturers ofGulfStates Origin thatmeettherequired
criteria, andcanbemade available toother interested manufacturers inthecountries ofexport.
Preshipment inspection byICCP atthesiteoffacilities carries substantial advantages forboth
importers andexporters overinspection procedures conducted onapostarrival ormarket surveillance
basis:
- provides thepossibility andconvenience fortheexporter himself tomake costeffective
corrections todetected aspects ofnon-conformity inhisproducts prior toshipment;
- averts disputes between exporters andimporters overnon-conformity;
- savesthecosts,time,deteriorationandopportunitylossinvolvedinthereturnofnon-conforming
products ;
- provides advance assurance toexporters against riskofpostarrival rejection; thisapplies as
welltofoodproducts, whereby thelikelihood ofrejection uponarrival issubstantially reduced,
provided thatthese products areshipped under appropriate handling/storage conditions. For
thisreason, itwasfound essential tokeeptheIIfoodproduct categories asoptional under the
ICCP.
3. Equivalency ofCAP-TBTArticle 6.1states: "Members shallensure whenever possible that
results ofCAPinother Members areaccepted, evenwhen those procedures differ fromtheir
own,providedtheyaresatisfiedthatthoseproceduresofferanassuranceofconformityequivalent
totheirownprocedures."
Under theICCP, "Supplier 'sdeclaration ofconformity, withrespect totests, quality marks
orcertificationsissuedbyapprovedinternationallyaccreditedConformityandTypeTestinglaboratories,
including thirdparty certification andnotified bodies, areaccorded fullrecognition insofarasthey
satisfy therelevant elements oftheRegistration andType Approval criteria."
Moreover, inaccordance withArticle 6,1.1,accreditation oflaboratories byNationally
Recognized Accreditation Bodies thatadopt ISOGuide 25asanaccreditation criteria isaccepted "as
anindication ofadequate technical competence" oftheselaboratories. ICCP hasalsomade provisions
forcountries thatmaynothavenational accreditation bodies, byaccepting nomination oflaboratories
bythese countries under theirgovernments 'fullresponsibility.
4. Proportionality -TBTArticle 5.1.2
Asexplained under General Concepts, PSIandPSTunder ICCP areapplied proportionately
based ontheconformity assessment status ofproducts. Moreover, theICCP avoids unnecessaryWT/ACC/SAU/26
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duplication inCAPwhenever satisfaction oftherelevant Saudi requirements canbeverified byexisting
results/certificates. Thus, ICCP procedures arenomore strict thannecessary.
IV. CONFORMITY OFICCP'SPRESHIPMENT INSPECTION PROCEDURES WITH THE
PSIAGREEMENT
1. Non-discrimination -PSIArticle 2.1states: "User Members shallensure thatpreshipment
inspection activities arecarried outinanondiscriminatory manner, andthattheprocedures
andcriteria employed intheconduct ofthese activities areobjective andareapplied onan
equal basis toallexporters affected bysuchactivities.
They shallensure uniform performance ofinspection byallinspectors ofthepreshipment
inspection entities contracted ormandated bythem."
Theprogram isopentoallexporters, andisproduct driven, withtheonlyobjective criterion
against which products areevaluated being theirconformity totheprescribed technical regulations
applicable toeachproduct, which includes technical requirements aswellasmethods ofsampling and
testing. SASO Program Management hasadopted unified technical andadministrative procedures for
application byallSASO Country Offices (SCO's)intheconduct oftheirPSIactivities withrespect
toallexporters fromallcountries. Thestaffattheseoffices receives continuous training andevaluation
toensure theircompetent anduniform performance.
2. National Treatment -PSIArticle 2.2states: "User Members shallensure thatinthecourse
ofPSIactivities relating totheir laws, regulations andrequirements, theprovisions of
paragraph 4ofGATT Article III(National Treatment) arerespected totheextent thatthese
arerelevant."
PSIactivities under ICCP aimtoverify conformity ofimported products tothesametechnical
regulations applicable toproducts ofnational origin. Infact,domestic producers canonlymanufacture
products thatfullyconform toSaudi technical regulations asacondition forthegranting andcontinued
validity oftheirmanufacturing license, andtheyaresubject toimmediate temporary shutdown incase
ofviolations. Imported registered products enjoy aprivilege overdomestic products inthat"minor
deviations, suchassome types oflabelling andinstruction manual requirements, areinitially allowed,
recorded andmonitored through thediscrepancy reports resulting from theinspection activities. In
suchcases, aCertificate ofConformity continue tobeissued", andexporters aregiven theopportunity
toprogressively raisethelevel ofcompliance insubsequent shipments; eventually, fullcompliance
isenforced.
3. Transparency -PSIArticles 5to8
ThenewICCP Comprehensive Procedures andGuidelines havebeendesigned formaximum
transparency, clarity andWTO conformity taking intoaccount thecomments raised byWTO Members
andotherinterestedpartiesduringtheconsultationandcommentperiodafforded.TheGuidelinesoutline
allstepsrequired tocomply withtherequirements oftheProgram leading totheissuance ofCertificates
ofConformity. TheAppendices provide details oflistofregulated product categories identified by
theirHSCodes, contact details ofallSCO'sandRLC's,listofapproved laboratories andappeals
procedures. Further intricate details orclarifications canbeobtained bycontacting anySCOorthe
SASO Information Center ortheSASO Program Management. KeyProgram information isalso
available ontheInternet.WT/ACC/SAU/26
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4. Protection ofConfidential Business Information, Conflict ofInterest, Delays andAppeals
Procedures
Theentities contracted bytheSaudi Government toassist inimplementation oftheICCP are
Members oftheInternational Federation ofInspection Agencies (IFIA) andadhere strictly toitscode
ofpractice andconduct including compliance withtheWTO requirements related tothese issues.
5. Fees-Paragraph l(a)ofGATT 1994 Article VIIIstates: "Allfeesandcharges ofwhatever
character... imposed bycontracting parties (Members) onorinconnection withimportation
orexportation shallbelimited inamount totheapproximate costofservices rendered andshall
notrepresent anindirect protection todomestic products orataxation ofimports orexports
forfiscal purposes."
Thefeesunder theICCP program arepaiddirectly tothePSIentities. Nopartofthefees
ispaidorallocated toSASO oranyother governmental body oftheKingdom ofSaudi Arabia. The
feesthusdonotrepresent anindirect protection todomestic industries orataxation ofimports for
fiscal purposes.
AllPSIcompanies engaged bydifferent countries, including some 33WTO Members, charge
feesonanadvalorem basis. However, Saudi Arabia utilizes agraduated percentage off.o.b. structure
coupled withshipment aggregation andamaximum feeceiling forproducts suchasmotor vehicles.
Thefeesareamongst thelowest world-wide ranging from 0.50percentto0.40percentanddown
to15percentoff.o.b. value respectively, compared withaworld wideaverage of1percent.Assuch,
theICCP feestructure represents thecostofservices rendered tothehighest degree ofapproximation
andequatability among usercountries andisunmatched inthisrespect.