Recently, by a royal decree, a new commercial indications system was issued in Saudi Arabia, followed by a ministerial decree that specified the implementing regulations for this system, which was published in the official gazette and became effective on the date of issuance. The system is composed of 14 articles covering all related aspects. The first article deals with the definition of all related components of a commercial indication. Another article stipulates that the primary language used should be Arabic and that all stated or published material related to this indication should be proven to be authentic and compatible.
However, the new system excludes the mentioning of medals, diplomas, prizes or honorary titles of any kind, except for products where the mentioning of any of these is relevant. The new system emphasizes that under no circumstances should the geographic origin of the product be distorted or changed. Related to that, if the manufacturer has facilities in more than one country, then the actual location where the goods are produced should be stated clearly.
The new system and implementing regulations place stringent penalties upon the violators of its provisions. On a first offence the violator shall be fined up to 100,000 Saudi Riyals. In case of recurrence of offence, the fine will be doubled and potentially coupled with the shutdown of facilities for the maximum of one year. The monitoring and prosecuting of violations is now the responsibility of the Ministry of Commerce and specifically the Committee of Investigations and General Prosecution. The final word in terms of the specific penalties has been left to the Board of Grievances, which is also responsible for resolving disputes related to commercial indications. One of the methods is the confiscation of the seized goods and their sale to provide a financial compensation as well as the legal fines and dispose of what is left. The ruling and actions of the Board of Grievances shall be published in the daily newspaper in the area of the violator and at his expense.
The implementing regulations include the details and specifics of the commercial indications system. Particularly, it requires that the commercial indications state if any part or parts of said indication are harmful to man, wildlife or the environment in general and hence the material whose import or sale is forbidden. The implementing regulations specify the mandate of the Anti-commercial Fraud General Administration as well as that of the qualified inspectors assigned by the Minister of Commerce. The implementing regulations also specify the exact means by which the confiscated goods/products are dealt with in terms of the new commercial indications system in Saudi Arabia.