Royal Decree No. (M/11) Dated 29/5/1404H (corresponding to 2/3/1984)

Transcription

1 Royal Decree No. (M/11) Dated 29/5/1404H (corresponding to 2/3/1984) WITH THE HELP OF ALMIGHTY ALLAH, WE, FAHD BIN ABDULAZIZ AL-SAUD, THE KING OF THE KINGDOM OF SAUDI ARABIA, After reviewing the Articles (19) and (20) of the Law of the Council of Ministers of Saudi Arabia issued upon the Royal Decree no. (38) dated 22/10/1377H (corresponding to 12/5/1958), After reviewing the Anti-Commercial Fraud Law issued upon the Royal Decree No. (45) dated 14/8/1381H (corresponding to 21/1/1962), And after reviewing the Resolution no. (107) dated 12/5/1404H (corresponding to 14/2/1984) issued by the Council of Ministers, DO HEREBY DECREE THE FOLLOWING: First: The approval of the Anti-Commercial Fraud Law with the attached form. Second: His Royal Highness Deputy Prime Minister as well as the ministers, each within the scope of his jurisdiction, shall bring this Decree into force. Royal Signature

2 Anti-Commercial Fraud Law Article 1 A fine ranging from SR 5 thousand to SR 100 thousand,a sentence of closing downthe shop for a period of not less than a week and not exceeding 90 days or both penalties shall be imposed on any person who defrauds, attempts to defrauds, cheats or attempts to cheat by any meansin one of the following: a. Product's essence, nature, kind, type, components or essential characteristics. b. Product's origin. c. Product's quantity, whether in terms of weight, measure, size, number, capacity or caliber.or the application of methods and means that affect negatively on product's quantity. d. Product's description, declaration, or offering in a manner thatincludes false or deceptive statements. Article 2 A penalty of closing down the shop,or imprisonment for a period ranging from a week to 90 days,along with a fine of not less than SR 10 thousand and not exceeding SR 100 thousand and confiscation of the products subject of the violation shall be imposed on: a. Any person who defrauds or attempts to defraud in the components of the human or animal foods. b. Any person who sells,offers for sale, or holds any of the human or animal foods whose components are fraudulent or spoilt. Article 3 The commodity that is not in full compliance with the determined specifications shall be considered fraudulent or spoilt. The Implementing Regulations shall specify such cases. Article 4 The commodity shall be consideredspoilt if the period of validity recorded thereon is expired.

3 Article 5 Without prejudice to the penalties set forth in the Law of Customs and the Implementing Regulations thereof or in any other law, the penalty mentioned in the Article(1) shall be imposed on any person who imports any fraudulent, spoilt or unusable commodity. If not removing the signs of fraud, the importer shall be ordered to re-export the commodity in accordance with the determined controls within the period specified in the Implementing Regulations. In case of refraining from executingthe order on the specified time, the commodity shall be confiscated by an administrative decision without any charge; given that, the Implementing Regulations shall show the way of disposing of it. Article 6 Without prejudice to imposition of the determined penalty, the factory or the furnisher of any fraudulent, spoilt or unusable commodity shall be ordered to withdraw the commodity from the market. Also, the commodity shall be confiscated by an administrative decision without any charge, unless the factory or the furnisher removes the signs of fraud, re-manufactures or furnishes the commodity in accordance with the determined controls within the period specified in the Implementing Regulations. In case of refraining from executing the order on the specified time, the commodity shall be confiscated by an administrative decision without any charge; given that, the Implementing Regulations shall show the way of disposing of it. Article 7 Without prejudice to the provisions of the Article (6), the penalty set forth in the Article (1) shall be imposed on any person who sells or offers for sale any fraudulent, spoilt or unusable commodity. Also, the commodity shall be confiscated by an administrative decision without any charge if the components are fraudulentor spoilt. The other commodities subject of the violation shall be disposed of in accordance with the provisions of the Implementing Regulations. Article 8

4 A fine ranging from SR 5 thousand to SR 100 thousand shall be imposed on any person who imports, manufactures, prints, holds, sells, or offersfor sale any package, material or printed materialswith the aim ofdefrauding the commodity. Also, the commodity shall be confiscated by an administrative decisionwithout any charge; given that, the Implementing Regulations shall show the way of disposing of it. Article 9 The seller shall be ordered to repay the price for the buyer if the commodity is fraudulent, unusable, spoilt, or used to defraud any other commodity. Article 10 In addition to the application of other penalties set forth in this Law, any person disposing of any impounded commodity shall, in the application of the Anti- Commercial Fraud Law, be enforced to submit its price to the fund of the Ministry of Commerce. Article 11 The penalties set forth in this Law shall be applied to any person participated in or instigated to commit a violation. Article 12 To apply the provisions of this Law, the commodity shall be supposed to be fraudulent, spoilt or unusable as long as the violator is engaged in commerce, unless proved otherwise. The buyer knowledge will not prevent the enforcement of the penalties set forth in this Law on the violator. Article 13 The seller, whomever the product is distributed on his behalf, managers of companies, cooperatives and establishments shall be liable for all violations of the provisions of this Law, and each shall be subject to the penalties prescribed for violators. If any of them proves that the violation has occurred due to reasons beyond his control, the penalty shall be inflicted solely on the violatorwithout prejudice to the joint liability with regard to payment of the fines sentenced.

5 Article 14 a. The employees of the Ministry of Commerce as well as the Ministry of Municipal and Rural Affairs and any other governmental body, the Ministry of Commerce decides to hire the employees thereof, shall be liable for recording the violations of the provisions of this Law, and the Implementing Regulations thereof, as well as investigating them. The appointment of these employees shall be issued upon a decision by the Minister of Commerce after obtaining the approval of their bodies. The employees shall have the right to access the shops comprising the commodities subject of the provisions of this Law, record the violations,and seize the commodities subject of the violationas well as the related documents, if needed. Also, the employees may take samples for analysis in accordance with the provisions of the Implementing Regulations and may ask the help of the police officers, if required. b. The employees of municipalities shall be assigned to monitor the rapidlyrotten foodstuffsexisting in the markets, and size the spoilt items. The Minister of Municipal and Rural Affairs shall determine by a decision such foodstuffs, the measures of seizing them, and the way of disposing of them. c. The employees referred to in the above-mentioned paragraphs (A) and (B) shall have the right to confiscate or damage the commodity after verifying of its rottenness or fraud in accordance with the provisions of the Implementing Regulations, or the decision referred to in the paragraph (B) of this Article. Article 15 Without prejudice to any harsher penalty set forth in any other Law, a fine of not less than SR 10 thousand and not exceeding SR 50 thousand shall be imposed on any person preventing the employees assigned to execute the provisions of this Law, and the Implementing Regulations thereof, from performing their duties. If the violator aims, by doing that, to conceal the violation, the shop must be judged to be closed for a period of not less than 3 days and no exceeding 15 days in addition to application of the previous penalty. Article 16

6 Committees formed by the Minister of Commerce decision in the cities where the Minister underscores the necessity of forming committees therein,shall be liable for enforcement of the penalties set forth in this Law as well as the fulfillment of the required investigations. Each committee shall be made up of 3 Saudi members, comprising two members from the Ministry of Commerce and a member from the Ministry of Municipal and Rural Affairs. At least one of the members must have a businesslike experience. The Implementing Regulations shall determine the trial procedures, issue the decisions, and notify the violators of such decisions. Article 17 The decisions of the committeesreferred to in the aforementioned Article shall be final after obtaining the approval of the Minister of Commerce except for the penalty of imprisonment; given that, the appellant may file a complaint to the Board of Grievances within 30 days from the date of notification. After being informed of the complaint, the Ministry of Commerce shall refer the papers supported by its view to the Board of Grievances whose verdict shall be final. If the appellant has not filed a complaint within the mentioned period, the verdict shall be final after obtaining the approval of the Minister of Commerce. Article 18 The Minister of Commerce shall have the right to regulate by a decision the measures that must be followed when offering general discountsin the commodities prices offered in the shops to ensure seriousness and lack of fraud. This decision shall include the determination of seasons and periods when the discounts are offered.the penalties set forth in Article (1) shall be served by the violator of the provision of the decision. Article 19 Upon a proposal submitted by the Minister of Commerce, the Council of Ministers may by a decision establish rules to offer financial incentives for the employees assigned to apply the provisions of this Law and the Bylaws thereof and for those who assist in the discovery of any commercial fraud or deception.

7 Article 20 Pursuant to the provisions of this Law and the Implementing Regulations thereof, the Ministry of Commerce shall defame the violator, against whom a final verdict of condemnationwas issued, at least in oneof the mass media. The publication fees shall be paid by the sentenced person. Article 21 The Minister of Commerce shall issue the required decisions and bylaws to bring this Law into force. Article 22 This Law shall supersede the Anti-Commercial Fraud Law issued upon the Royal Decree no. (45) dated 14/8/1381H (corresponding to 21/1/1962). Article 23 This Law shall be published in the Official Gazette and shall come into Force after 90 days from the date of publication.