Ensuring and Facilitating the Supply of Essential Goods

In the name of God, the Most Gracious, the Most Merciful
Number: 39
Date: 7 Dhu al‑Qi‘dah 1377 AH

By the grace of God,
We, Saud bin Abdulaziz Al Saud,
King of the Kingdom of Saudi Arabia,

In view of the necessity of securing and facilitating the supply of essential goods for the country—such as foodstuffs, clothing, medicines, and other needs—and in order to simplify import procedures, ease the burden on importers, and ensure the proper use of the government’s foreign‑exchange resources in ways that benefit the country, curb high prices, improve living conditions, and make all essential goods available at reasonable prices;

And after reviewing our Royal Decree No. 30/3/3/2392, dated 24 / 11 / 1376 AH, concerning the Import System;
And after reviewing the Foreign Capital Investment Law issued by Royal Order No. 21/1/1325, dated 20 / 9 / 1376 AH;
And based on the submission presented to us by the Prime Minister;
We hereby order the following:

 

Article One

The Import Committees are hereby abolished.

 

Article Two

Import Offices shall be established in Jeddah, Riyadh, and Dammam, under the supervision of an official titled General Supervisor of Imports, appointed by the Council of Ministers upon nomination by the Minister of Finance and National Economy.
His headquarters shall be located where the Saudi Arabian Monetary Agency is based, and the Import Offices shall be linked to the Ministry of Finance and National Economy.

  • The Jeddah office shall handle requests from the Western Region.
  • The Riyadh office shall handle requests from the Najd Region.
  • The Dammam office shall handle requests from the Eastern Region.

The General Supervisor shall ensure coordination among the three offices, establish their regulations, oversee their operations, and shall have the authority to appoint, assign, or dismiss their employees.

 

Article Three

The Import Offices shall issue import licenses required by banks to open letters of credit and accept collection documents for the import of goods listed in Article Four, at the official foreign‑exchange rate.

 

Article Four

The Ministry of Finance and National Economy, after consulting the Governor of the Saudi Arabian Monetary Agency, shall determine the minimum foreign‑exchange allocation required for importing essential goods every three months.
Allocations shall be distributed among the three Import Offices based on official statistics and regional needs.

The article then lists the essential goods covered, including:
rice, wheat, flour, millet, corn, barley, lentils, beans, sesame, sugar, tea, coffee, cardamom, dried beans, fresh meat and livestock, fruits and vegetables, dairy products, eggs, low‑priced clothing fabrics, medicines, agricultural machinery, and industrial equipment.

The Council of Ministers may amend this list as needed.

 

Article Five

The Saudi Arabian Monetary Agency shall provide the foreign currency allocated to each region and arrange with licensed banks to open letters of credit without delay. Importers may choose any licensed bank, and the Agency shall reimburse the banks promptly.

 

Article Six

The import of all types of automobiles is prohibited for six months from the date of this Decree, renewable once for up to six additional months by decision of the Council of Ministers.
This does not affect vehicles already covered by valid, irrevocable letters of credit.

 

Article Seven

The export and import of gold shall be governed by conditions proposed by the Minister of Finance and approved by the Council of Ministers.

 

Article Eight

All other goods not listed in this system may be imported freely without a license, and the Monetary Agency is not obligated to provide foreign currency for them.

 

Article Nine

This article details the rules for processing import requests, issuing licenses, verifying past import records, assigning quotas, and coordinating with customs and banks.
It includes strict procedures for documentation, registration, issuance of multi‑copy licenses, and communication between agencies.

 

Article Ten

Customs authorities shall not clear goods covered by this system unless they match the details stated in the import license.

 

Article Eleven

If imported goods do not match the license, customs shall refuse clearance and notify the Import Office.
Goods shall remain held until the government is compensated for any foreign‑exchange loss.
Penalties may include:

  • imprisonment up to three months,
  • or suspension from receiving future import licenses.
    The same penalties apply if goods fail to arrive within six months without acceptable justification.

 

Article Twelve

Article Eleven shall be printed on the back of every license.

 

Article Thirteen

Import Offices may consult merchants or experts to verify prices and other relevant matters.

 

Article Fourteen

Import Offices shall distribute foreign‑exchange allocations among goods based on the average imports of the previous three years, with reasonable adjustments as needed.

 

Article Fifteen

New merchants with no import history shall be granted reasonable quotas based on their financial and commercial standing.

 

Article Sixteen

Import Offices may issue trust‑based import licenses for goods listed in Article Four, with payment settled within six months.

 

Article Seventeen

Special procedures are established for the import of agricultural and industrial machinery, requiring review and approval by the General Supervisor of Imports.

 

Article Eighteen

The Minister of Finance and National Economy shall implement this system.

 

Article Nineteen

This system shall take effect upon publication and supersedes all conflicting regulations and instructions.

Umm al‑Qura