Regulations for Shipping Agents

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MAWANI
SAUDI PORTS AUTHORITY
[Non-Text]
مواني
لطيفه العامه لل Omanيه
Regulations for Shipping Agents

Regulations for Shipping Agents
MAWANI
الاجاده العامه للعوايي
SAUDI PORTS AUTHORITY
<table><tr><td colspan="5">Document Approval Record</td></tr><tr><td>Version</td><td>Approval Authority</td><td>Approval Number</td><td>Approval Date</td><td>Effective Date</td></tr><tr><td>1</td><td>Board of Directors</td><td>(144/C15/D2)</td><td>7/11/1443H</td><td>Resolution shall be effective 60 days after the date hereof</td></tr></table>
2

Regulations for Shipping Agents
موانس
MAWANI
العينه العامه للعواني
SAUDI PORTS AUTHORITY
Contents
Introduction 4
Article 1: Definitions 4
Article 2: General Provisions 6
Article 3: Objectives of the Regulations 6
Article 4: Scope of Application 6
Article 5: Shipping Agent Obligations and Responsibilities 7
Article 6: Procedures for Receiving and Delivering Containers 9
Article 7: Financial Dues 17
Article 8: Electronic Procedures 17
Article 9: Port Administration Rights 18
Article 10: Working Hours 18
Article 11: Settlement of Disputes 18
Article 12: Correspondence and Forms 19
Article 13: Control and Inspection 19
Article 14: Penalties and Violations 19
Article 15: Final Provisions 20
3

Regulations for Shipping Agents
सोना
MAWANI
अभिका ऑफा ऑफा ऑफा
SAUDI PORTS AUTHORITY
Introduction
In accordance with the General Regulations for Licenses and Permits issued by the Saudi Ports Authority's Board of Directors, Resolution No. (143/C15/D2), dated (07/11/1443H), under which the Authority is empowered to set general regulations for licenses and permits within the Authority, the Regulations for Shipping Agents have been developed to ensure that the activity is conducted in accordance with the highest standards of quality and efficiency. These Regulations shall be complementary to the responsibilities set forth in the Commercial Maritime Law issued by the Royal Decree No. (D/33), dated 05/04/1440H.
Article 1: Definitions
The following terms and phrases shall have the meaning assigned thereto, unless the context requires otherwise:
Authority: Saudi Ports Authority.
Board: Board of Directors of the Authority.
President: President of the Authority.
Ports: All seaports in the Kingdom other than military and economic cities ports.
International Maritime Conventions: The International Maritime Conventions issued by the International Maritime Organization (“IMO”).
Shipping Agent License: A document issued by the Authority, whereby the shipping agents can conduct their business in ports, either individually or collectively.
Shipping Agent: A person who, in their capacity as the agent of the operator, provides the ship's needs.
Ship: Any floating craft designed for maritime navigation, including non-profit ships. The essential equipment necessary for its operation is considered part of the ship.
Ship Owner: A person whose name is recorded in the ship registry as its owner.
Captain: A person who is qualified to navigate and manage a ship.
Cargo Owner: A person acting on behalf of the cargo owners in receiving the cargo upon arrival and paying the applicable due freight, in whole or in part.
Delivery Order: A document issued by the shipping agent on behalf of the cargo owner for the delivery and release of imported cargo identified therein and manifested under the Maritime Contract of Carriage (Bill of Lading).
Operator: A person who operates a ship as the owner, charterer, or a co-ownership manager. The owner shall be presumed to be the operator, unless proven otherwise.
Maritime Contract of Carriage: A contract under which the carrier undertakes to transport cargo or passengers by sea against payment.
4

Regulations for Shipping Agents
सुना
MAWANI
हार्मिक ऑफा लिमीटी
SAUDI PORTS AUTHORITY
Carrier: A person who conducts transporting activities, by themselves or through representatives, in accordance with an agreement with the shipper under the maritime contract of carriage, receiving payment in return. The carrier may be the ship owner, operator, or charterer.
Transport Operator: A person who carries goods by sea under a single maritime contract of carriage and a single transport document, acting as a principal.
Shipper: A person in possession of the cargo to be transported and who, personally or through a representative, concludes a contract with a carrier or a transport operator to carry a cargo from one place to another against payment.
Bill of Lading (B/L): A document or contract issued by the carrier (shipping line) or the shipping agent to the cargo owner, confirming receipt of cargo for shipment, detailing the cargo components, the port of departure, and the port of destination. It shall also constitute an acknowledgment that the cargo is loaded as per the contract and received in good condition.
Shipping Bill: A document issued by the carrier at the shipper's request upon receipt of the cargo, detailing the transport data and conditions.
Inspector/Observer: The person assigned by the Authority to ensure that the licensee complies with the requirements and provisions of these Regulations.
Technical Violations: The failure of the ships, arriving at the Kingdom's ports, to comply with the provisions and requirements of the international maritime conventions and treaties.
Fees: Payment collected by the Authority for the license issuance or renewal.
Cargo: Any unprohibited goods, vehicles, or live animals, regardless of their type or nature, which the licensee is obligated to ship or transport under a maritime contract of carriage.
Dangerous Goods: Any goods classified as dangerous goods according to the International Maritime Dangerous Goods (IMDG) Code, which, individually or collectively, pose a risk to passengers, crew, or the ship due to the goods' nature, quantity, or shipping method.
5

Regulations for Shipping Agents
सोना
MAWANI
अभिका ऑफा ऑफा ऑफा ऑफा ऑफा ऑफा ऑफा ऑफा ऑफा ऐ
SAUDI PORTS AUTHORITY
Article 2: General Provisions
1. The Authority shall issue a license for the shipping agent for an amount of SAR 30,000 to conduct the activity in all ports. Such license shall be valid for 36 months from the date of its issuance.
2. The expiration of the shipping agent's license shall not be an exemption from performing any of their obligations towards the operator or the ships, subject of agency, including fees, wages, fines, and compensations for any damage discovered within 3 months of the ship departure date.
3. The shipping agent shall provide the relevant port administration with an irrevocable, unconditional, and unrestricted bank guarantee issued in an amount of SAR 500,000. The bank guarantee shall be valid throughout the validity period of the license and three months after its expiration.
4. The shipping agent shall obtain the Authority's prior approval on the continuity of the license validity before any modifications to their legal status. The Authority may approve or disapprove the license continuity if such modifications are made without prior notification.
5. All Saudi and foreign ships shall appoint a shipping agent before entering the ports.
6. Within 4 months of each year's end, the shipping agent shall provide the Authority with an annual report of the agency services provided during the previous year.
Article 3: Objectives of the Regulations
These Regulations aim to organize the work of shipping agents at ports and the contractual relationship between shipping agents and other relevant entities.
Article 4: Scope of Application
1. All shipping agents.
2. All types of ships arriving at ports.
3. All types of cargo handled at ports.
6

Regulations for Shipping Agents
MAWANI
العلنيه العامه للعوايي
SAUDI PORTS AUTHORITY
Article 5: Shipping Agent Obligations and Responsibilities
First: General Obligations and Responsibilities:
Without prejudice to the obligations and responsibilities stipulated in the Commercial Maritime Law, whoever conducts the work of shipping agents at ports shall:
1. adhere to the laws, regulations, decisions, instructions, and circulars issued by the Authority and the relevant entities;
2. comply with the international standards and conventions facilitating international maritime trade;
3. provide all data and information related to the shipping agent services at the Authority's request;
4. inform ship owners or operators of all circulars and instructions issued by the Authority and the relevant entities;
5. make the necessary arrangements related to Zakat, Tax, and Customs Authority (ZATCA) and prepare documents for imported, exported, or transshipped cargo;
6. act on behalf of ship owners or operators in lawsuits arising out of local maritime transport; and shall be treated as principal in those lawsuits;
7. conclude contracts within their powers in accordance with the agency contract; and
8. be liable as a guarantor for any act or negligence by any of their employees, which may cause damage to the port, its facilities, its employees, or a third party within the port boundaries; and shall unconditionally pay compensation for losses resulting from such acts or negligence, except for any loss of profits.
Second: Code of Professional Conduct:
The shipping agent shall conduct professional due diligence when performing their tasks in accordance with the relevant professional standards, laws, and regulations. In particular, the shipping agent shall:
1. inform the Authority of any illegal practices observed while providing services to ships or cargo;
2. maintain confidentiality of all data and documents related to shipping agency services;
3. perform their work actively and efficiently, upholding honesty, integrity, accuracy, professionalism, and impartiality; and
4. conduct their work as required, demonstrating commitment to their work and avoiding any illegal or suspicious practices that violate the applicable laws and instructions.
Third: Shipping Agent Obligations towards Ships:
The shipping agent shall:
1. perform all the work and procedures required by ships or their crews while being within the port boundaries;
7

Regulations for Shipping Agents
MAWANI
الانيه العامه للعوايي
SAUDI PORTS AUTHORITY
2. provide the port administrations, cargo owners, and the relevant entities with accurate data on ships traffic or any other statistics, data, or documents related to the ships under their agency;
3. pay the due fees, wages, and costs to the relevant entities for services provided to ships under their agency;
4. follow the approved mechanism for requesting the supply of medicines to ships at ports, as determined by the relevant entity;
5. collect the due fees payable to ships under their agency;
6. benefit from the ships under their agency;
7. follow up on the loading and unloading operations of ships under their agency;
8. ensure that foreign ships have valid insurance that covers financial obligations resulting from international conventions and have insurance coverage against civil liability and oil pollution;
9. not terminate the agency services while the ship is in port, unless the ship owner/operator has settled all financial dues, and no other shipping agent shall be appointed without the Authority's approval;
10. inform the port administration of any delay occurring to any arriving or departing ships under their agency, explaining the reasons of the delay;
11. comply with the Authority's instructions, including, but not limited to, those related to receiving waste from ships, sailors disembarking, bunkering, all types of dangerous goods, maritime control and inspection, security levels, and port facility requirements (ISPS CODE);
12. submit repair requests for ships at ports, including hot work, maintenance and testing of equipment, and welding;
13. refrain from dealing with ships listed in the blacklist in accordance with the data and requirements of the relevant entities; and
14. finalize ship travel procedures; and obtain the necessary permits prior to the completion of the ship's operations.
4. Shipping Agent Obligations Towards Cargo:
The shipping agent shall:
1. establish an electronic link with the Authority's approved platforms;
2. submit the manifest via the approved e-platforms 72 hours before the ship's arrival for distant ports and 24 hours for near ports, taking into account ships arriving through ports adjacent to Saudi ports in which the sailing period is less than the specified one, whether on the coast of the Arabian Gulf or the Red Sea;
3. notify the cargo owners, or their representatives, of the expected arrival date of their relevant ship a sufficient time before its arrival, at least 48 hours in advance;
8

Regulations for Shipping Agents
موانس
MAWANI
العامه العامه للعواني
SAUDI PORTS AUTHORITY
4. inform cargo owners of shipments arrival and ensure prompt delivery according to the cargo manifest and the original shipping bills;
5. if the cargo owners or their representatives fail to issue and receive the delivery order, continue sending the shipment arrival notices every 10 days for up to 30 days of the ship arrival date, noting that after this period, the procedures for handling the abandoned goods at ports shall be implemented;
6. take procedures for receiving cargo from ships under their agency and facilitate the delivery to their owners or agents at the port of unloading;
7. fulfil the requirements for prior authorization of dangerous goods, as determined by the relevant entity;
8. inform the port administrations and the relevant entities of the dangerous goods before their arrival in accordance with the applicable regulations; otherwise, the shipping agent shall be responsible for returning these goods to the loading port, destroying them, or disposing of them at their own expense after coordination with the Port, ZATCA, and relevant entities;
9. fulfil the requirements for the transport or arrival of nuclear or radioactive materials by sea means of transport to and from the Kingdom's ports, as determined by the relevant entity;
10. fulfil the requirements for prior authorization of shipping animal and plant consignments, as determined by the relevant entity;
11. issue all invoices related to the cargo owners, shipments, and relevant entities only through SADAD payments system;
12. comply with the Implementation procedures for handling abandoned goods at ports, including dangerous, general, and refrigerated goods, as determined by the relevant entity.
13. avoid using cash for transactions and pay all financial dues through the electronic payment methods;
14. use the addresses, contact and fax numbers, and e-mails mentioned in the bill of lading or cargo manifest to notify the consignee of the expected date of the ship arrival; and
15. not bear any responsibility resulting from failure to notify the cargo consignee of the cargo arrival date, if the addresses, contact and fax numbers, and e-mails mentioned in the bill of lading or cargo manifest provided to the shipping line by the consignor are incorrect or incomplete.
Article 6: Procedures for Receiving and Delivering Containers
The following are the general rules, regulations, and code of conduct for basic transactions between shipping line agents and the business sector in the Kingdom:
First:
9

Regulations for Shipping Agents
موانس
MAWANI
العينه العامه للعواني
SAUDI PORTS AUTHORITY
a. When submitting the delivery order, the shipping agent shall clearly and explicitly notify the cargo owner, in writing, of the location and address of the entity to which the cargo owner shall return and deliver the empty containers. This location may be one of the agent's container storage yards, a container terminal at the port, or another agreed-upon location.
b. The cargo owner shall return and deliver the empty containers at the location and address determined by the agent, and the agent shall receive them immediately upon their arrival at the designated location.
c. The cargo owner shall be responsible for the safety of the containers as of the time they are received until they are returned and delivered to the entity determined by the shipping agent.
d. The shipping agent shall not collect any fees for container insurance.
e. The cargo owner shall return the container within 7 days of the date on which the container is unloaded from the ship.
Second: Fines for Late Return of Containers/Trailers:
a. Shipping agents may impose fines for the late return of containers/trailers, as of the eighth day of the date on which the import container is unloaded from the ship. Fines are calculated daily, according to the following table:
<table><tr><td>#</td><td>Type of Container</td><td>Days</td><td>20 ft Container or Less</td><td>40 ft Container or More</td></tr><tr><td rowspan="5">1</td><td rowspan="5">Standard Container</td><td>From 1 to 7 days</td><td colspan="2">Exempted</td></tr><tr><td>From 8 to 15 days</td><td>SAR 30/day</td><td>SAR 60/day</td></tr><tr><td>From 16 to 30 days</td><td>SAR 60/day</td><td>SAR 120/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 200/day</td><td>SAR 300/day</td></tr><tr><td rowspan="5">2</td><td rowspan="5">Reefer Container</td><td>From 1 to 7 days</td><td colspan="2">Exempted</td></tr><tr><td>From 8 to 15 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 16 to 30 days</td><td>SAR 200/day</td><td>SAR 350/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 300/day</td><td>SAR 450/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 400/day</td><td>SAR 550/day</td></tr><tr><td rowspan="5">3</td><td rowspan="5">Special Container</td><td>From 1 to 7 days</td><td colspan="2">Exempted</td></tr><tr><td>From 8 to 15 days</td><td>SAR 60/day</td><td>SAR 120/day</td></tr><tr><td>From 16 to 30 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 200/day</td><td>SAR 300/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 400/day</td><td>SAR 550/day</td></tr></table>
b. Shipping agents may impose fines for the late return of containers/trailers, as of the sixteenth day of the date on which the empty export container is received from the shipping agent's yard. Fines are calculated daily, according to the following table:
<table><tr><td>#</td><td>Type of Container</td><td>Days</td><td>20 ft container or less</td><td>40 ft container or more</td></tr><tr><td>1</td><td>Standard Container</td><td>From 1 to 15 days</td><td colspan="2">Exempted</td></tr></table>
10

Regulations for Shipping Agents
مواني
MAWANI
الطيفه العامه للعوganي
SAUDI PORTS AUTHORITY
<table><tr><td rowspan="3"></td><td rowspan="3"></td><td>From 16 to 30 days</td><td>SAR 60/day</td><td>SAR 120/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 200/day</td><td>SAR 300/day</td></tr><tr><td rowspan="4">2</td><td rowspan="4">Reefer Container</td><td>From 1 to 15 days</td><td colspan="2">Exempted</td></tr><tr><td>From 16 to 30 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 200/day</td><td>SAR 350/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 300/day</td><td>SAR 450/day</td></tr><tr><td rowspan="4">3</td><td rowspan="4">Special Container</td><td>From 1 to 15 days</td><td colspan="2">Exempted</td></tr><tr><td>From 16 to 30 days</td><td>SAR 60/day</td><td>SAR 120/day</td></tr><tr><td>From 31 to 60 days</td><td>SAR 100/day</td><td>SAR 200/day</td></tr><tr><td>From 61 to 180 days</td><td>SAR 200/day</td><td>SAR 300/day</td></tr></table>
c. The shipping agent shall collect fines for the late return of containers/trailers within 180 days of the date on which the container is unloaded at the port or the date on which the empty container is received from the shipping agent's yard. If the container is not returned to the shipping agent after 180 days of the date on which the container is unloaded at the port or exported, the shipping agent may claim the fines for the late return of the containers/trailers beyond the 180-day period according to the table above, in addition to the value of the container according to the following price table, In such cases, the container and the associated financial liabilities shall be transferred to the importer or exporter:
<table><tr><td>#</td><td>Type of Container</td><td>20 ft container or less</td><td>40 ft container or more</td></tr><tr><td>1</td><td>Standard Container</td><td>SAR 11,250</td><td>SAR 18,750</td></tr><tr><td>2</td><td>Reefer Container</td><td>SAR 60,000</td><td>SAR 90,000</td></tr><tr><td>3</td><td>Special Container</td><td>SAR 15,000</td><td>SAR 24,000</td></tr></table>
- If the containers are not owned by the shipping line represented by the agent (i.e., rented), the value of the remaining lease term shall be added to the container's value and the fines imposed for container delay exceeding 180 days, and the agent shall provide proof of the remaining lease term.
11

Regulations for Shipping Agents
सोना
MAWANI
अभिका ऑफा ऑफा ऑफा
SAUDI PORTS AUTHORITY
This shall entail the following:
1. The cargo owner shall pay the delay fines or the costs of repairing/cleaning the containers within 10 days of the agent's invoice receipt via the approved electronic payment methods. Otherwise, the matter shall be referred to the competent judicial entities.
2. Considering the provisions or requirements outlined in the bills of lading or other agreements concluded between the shipper, carrier, and consignee, adjustments may be made to the fine-free period for containers/trailers return delays or their values, provided that there is a written agreement signed by the shipper, carrier, and consignee. Otherwise, the above-mentioned standard fines and durations shall apply. Any violations by the shipping agent shall result in a financial fine for each violation, with each container subject to improper charges treated as a separate violation. The agent shall also refund any improperly collected delay fines to the consignee or the shipper.
3. The cargo owner shall remove all labels from the containers, remove waste, clean the containers, and return them in sound condition to the shipping agent.
4. The shipping agent shall provide proof for any damage or need for cleaning the containers using recognized methods such as: container condition reports upon receipt and delivery issued by terminals or storage yards; photographs of the container's condition and damage; accident reports issued by the relevant entities; or reports issued by certified damage assessors and surveyors.
5. The shipping agent may request payment from the cargo owner for containers' label removal, cleaning, and damage repair costs, if any. These costs shall be based on the agent's declared rates for label removal and cleaning, and on a cost estimate report issued by the agent-approved container repair contractor. The shipping agent shall issue the invoice within a period not exceeding 7 days for dry ports and 48 hours for other ports, as of the date on which the container is received at the agent's yard.
6. The shipping agent shall not use fine collection systems that contradict the one mentioned hereinabove. Otherwise, the Authority shall impose a financial fine or suspend/cancel the license.
12

Regulations for Shipping Agents
सोना
MAWANI
अनीँ झाबी ऑफा ऑफा ऑफा
SAUDI PORTS AUTHORITY
3. Empty Containers Receipt and Delivery:
When delivering the containers to the cargo owners or cargo maritime transporters, the shipping agent shall collect the official documentation and record the relevant information (name, ID or passport number, address and contact numbers, and commercial register number). The agent shall also obtain a copy of the container recipient's written declaration of their responsibility therefor, authenticated by the Chamber of Commerce. In some cases where an agreement is concluded between the two parties, the container recipient's written declaration may be waived, but the agent shall assume responsibility for any consequences.
1. The agent shall bear all additional costs resulting from changing the location of containers delivery or receipt to a location other than the one specified in the notice delivered to the cargo owner, the cargo maritime transporter, or the lessee.
2. The agent may charge the container recipient for loading and unloading costs at the site of returning the containers, including the costs for loading and unloading for both receiving and returning the containers, provided that there is a written agreement signed between the parties.
3. The agent may refuse to receive empty containers at the agent's yard if the fines of containers late return are not paid.
4. Locally Collected Costs by Shipping Agents:
1. Shipping agents may collect local costs, whether permanent or temporary, for their own or the shipping line's benefit. These costs may or may not be listed in the bill of lading, cargo manifest, or shipment's freight, regardless of their description or purpose.
2. The maximum delivery order fee is SAR 325, covering all agent-related expenses and charges but excluding the costs and expenses associated with other relevant entities involved in issuing the delivery order. This fee shall be covered by the agent's revenue.
3. Agents shall not impose any additional charges when recovering the cost of any services beyond those defined in the Regulations for Port Service Fees and Charges or by other relevant entities. The agents may recover the service value according to the value outlined and declared in the Regulations for Port Service Fees and Charges or the regulations declared by other entities for such service. A fine, suspension, or license cancellation shall be imposed if the agent collects additional fees in violation of the provisions mentioned hereinabove.
4. The authority may refuse any fees and costs due to the lack of sufficient justifications from the agent, as the Authority deems appropriate.
5. The Agent's Refusal to Issue and Submit the Delivery Order to the Cargo Owner:
The Agent may refrain from issuing and submitting the delivery order to the cargo owner under the following conditions:
13

Regulations for Shipping Agents
MAWANI
الاعلويه العامه للعناي
SAUDI PORTS AUTHORITY
1. The cargo owner fails to provide the original bill of lading;
2. the shipper gives no instructions to release the shipment without providing the original bill of lading and fulfilling all requirements according to the procedures followed by the shipping line; or
3. the cargo owner fails to pay the shipment-related dues, fees, and fines.
4. The shipping agent may collect outstanding fees from previous shipments before releasing any new shipments to the same cargo owner.
5. The shipping agent may withhold the container if outstanding fines related to container return delays, damage, or cleaning for previous containers belonging to the same cargo owner or customs broker remain unpaid.
- Otherwise, the agent shall not refrain from issuing and submitting the delivery order, and the Authority may, if the agent fails to comply, impose a fine or suspend/cancel the license.
Sixth: The Agent's Refusal to Issue and Submit the Bill of Lading to the Cargo Owner:
The Agent may refrain from issuing and submitting the bill of lading to the cargo owner under the following conditions:
1. The cargo owner fails to pay the shipment-related dues, fees, and fines; or
2. The cargo owner changes the shipping instructions or cargo description in violation of the regulations and instructions in force in the Kingdom.
- Otherwise, the agent shall not refrain from issuing and submitting the bill of lading to the cargo owner, and the Authority may, if the agent fails to comply, impose a fine or suspend/cancel the license.
Seventh: Failure of the Cargo Owner to Return Empty Containers (Loss or Damage):
1. The cargo owner shall be solely and fully responsible towards the agent for the safety of the containers from the container receipt to its return and delivery to the agent.
2. It is recommended that the cargo owner shall insure the container body against potential risks that may lead to the container loss or damage.
- If the cargo owner fails to return the containers due to their loss for any reason:
1. the cargo owner shall notify the agent immediately upon becoming aware of the container's loss;
2. the cargo owner shall notify the competent entities immediately upon becoming aware of the container's loss;
3. the cargo owner shall notify the insurer immediately upon becoming aware of the container's loss;
4. the cargo owner shall provide the agent with a copy of the report filed to the competent entities;
14

Regulations for Shipping Agents
مولي
MAWANI
العربيه العامه للعوايض
SAUDI PORTS AUTHORITY
5. the agent may claim the cargo owner to pay the container's value according to their records, provided that the same shall not exceed the container's value mentioned under Article 6, Paragraph (Second/C) above (Table of Container Values), whichever is lesser;
6. the agent may claim the cargo owner to pay demurrage imposed on the container up to the date recorded in the report submitted to the competent entities or the date of notifying the agent, whichever is later; and
7. after the agent and the cargo owner reach a settlement, the agent shall issue a final release to the cargo owner with exemption from any future claims related to those lost containers.
- If the cargo owner fails to return the containers due to complete damage of the container:
1. the cargo owner shall notify the agent immediately upon becoming aware of the complete damage of the containers;
2. the cargo owner shall submit a report to the competent entities, stating the causes of the damage;
3. the agent may inspect the wreckage of the container to ensure that the containers are completely damaged;
4. the agent may request the cargo owner to pay demurrage imposed on the container up to the date recorded in the report submitted to the competent entities or the date of notifying the agent, whichever is later;
5. the agent may request the cargo owner to pay the container's value according to their records, while the same shall not exceed the container's value mentioned under Article 6, Paragraph (Second/C) above (Table of Container Values), whichever is less; and
6. after the agent and the cargo owner reach a settlement, the agent shall issue a final release to the cargo owner with exemption from any future claims related to those damaged containers.
Eighth: Cases of Loss or Absence of Original Bills of Lading:
If the original bills of lading are lost or absent, the following procedures for delivering the shipment shall be considered, taking into account the agent's or shipping line's procedures and requirements in such cases:
1. Cargo owners shall notify the agent, in writing, of the loss or absence of the original bill of lading and the reasons they believe are related to their loss or absence.
2. Cargo owners shall notify the shipper, in writing, of the loss or absence of the original bill of lading and the reasons they believe are related to their loss or absence.
15

Regulations for Shipping Agents
صوانس
MAWANI
الطيفه العامه للعوganي
SAUDI PORTS AUTHORITY
3. Cargo owners shall submit the necessary bond, in accordance with the form determined by the agent or shipping line, to disclaim their responsibility for any claims, legal consequences, or disputes that may arise, nationally or internationally, from the delivery of the shipment without submitting its original bills of lading to the agent or shipping line.
General Rules for Cases of Original Bill of Lading Loss:
- In all cases, the agent or shipping line may refer to the consignor/shipper to find out the total value of the shipment according to the consignor's records. In case the total price of the shipment is greater or less than the one provided by the consignee, the higher value shall be considered in determining the value of the bank guarantee.
- The agent shall keep a record of all cases of shipments being delivered without an original bill of lading and keep backups of all required documents.
- If the bill of lading is stolen, an official report shall be filed to the competent entity, and the agent shall be provided with a copy of the report after being registered with the competent entity. The rest of the procedures shall be followed as previously mentioned.
Ninth: Shipping Agent Obligations in the Submission of the Delivery Order:
1. The agent shall issue the delivery order electronically.
2. The agent shall document and record the date and time of the customer's request for issuing the delivery order. If the agent delays issuing the delivery order to the cargo owner after the ship arrival, while there are no force majeure events, the Authority may impose a financial fine on the agent.
3. If the cargo owner sustains damage due to of the agent's delay in issuing the delivery order, the agent shall bear the cost of the damage sustained by the cargo owner.
4. The cargo owner shall submit the proof and documents indicating the occurrence of damage.
5. In general, the agent shall pay the port storage charge and any other fees resulting therefrom, if it is proven that the agent is responsible for the shipment clearance delay.
16

Regulations for Shipping Agents
सोना
MAWANI
अभिका ऑफा ऑफा ऑफा
SAUDI PORTS AUTHORITY
Tenth: Notifying the Cargo Recipient of the Shipment Arrival:
1. The agent shall notify the cargo recipient of the expected arrival date of the ship carrying the shipment a sufficient time before its arrival, at least 48 hours before the ship arrival at the port.
2. If the cargo recipient fails to receive the delivery order, the agent shall continue sending the notices of shipment arrival every 10 days for up to 30 days of the ship arrival date.
3. If the cargo recipient fails to receive the delivery order or explains the reasons for the same after 15 days of the shipment arrival date for perishable goods and 30 days for other goods, the agent shall coordinate with the relevant contractor, responsible for the outsourcing and customs contract, to transport the shipment to the abandoned goods area at the port.
4. The addresses, contact and fax numbers, and e-mails outlined in the bill of lading or cargo manifest shall be used to notify the consignee of the expected date of the ship arrival.
5. The agent shall not bear any responsibility resulting from the failure to notify the cargo recipient of the arrival date, if the addresses, contact and fax numbers, and e-mails outlined in the bill of lading or cargo manifest and provided to the shipping line by the consignor are incorrect or incomplete.
6. The agent shall provide proof that the notice is served, using all available means. The agent shall also comply with the terms and conditions stated in the bills of lading on notifying the cargo recipient of the shipment arrival. Otherwise, the Authority shall impose a financial fine or suspend/cancel the license.
Article 7: Financial Dues
Shipping agents shall pay the fees due to the Authority, port administrations, or outsourced contractors within 15 days from the date of invoice issuance, taking into account the agreements signed between the relevant parties.
Article 8: Electronic Procedures
1. Shipping agents shall use the electronic systems and applications approved by the Authority, ZATCA, and other relevant entities to settle any relevant payments.
2. Shipping agents shall not use cash transactions during the payment and refund and shall pay all dues through electronic payment methods. They shall also issue and pay all invoices through SADAD payment system approved in the Kingdom, or any other systems approved by the Authority.
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Regulations for Shipping Agents
صوانس
MAWANI
العامه العامه للعواني
SAUDI PORTS AUTHORITY
Article 9: Port Administration Rights
1. As per the legal procedures, the Authority or the port administrations may suspend any ship proven to have caused any material or environmental damage or to have violated maritime inspection procedures. The ship shall not leave until its shipping agent provides the necessary bank guarantees of the value of such damage on behalf of ship owners or operators and completes all necessary legal procedures.
2. The shipping agent shall provide the guarantees required by the port administration for services provided to ships under their agency during marine emergencies.
3. Ship owners wishing to change their shipping agents shall submit documents proving settlement of all dues to the current shipping agent or any other dues payable to the Authority, port administrations, or relevant entities before appointing a new shipping agent.
4. The shipping agent may delegate another shipping agent licensed at the port to perform certain work after obtaining written approval from the Authority or the port administrations. The primary shipping agent shall bear all administrative and financial responsibilities towards the relevant entities.
Article 10: Working Hours
1. Shipping agents shall provide their services throughout the week and during the official holidays in the Kingdom.
2. Shipping agents shall appoint representatives to be available at the port on a 24/7 basis and during the official holidays in the Kingdom, in alignment with the operations in the ports and the relevant entities.
3. Shipping agents shall clarify to beneficiaries the working hours of their offices, ensuring that the actual times for customer service at the counters match the working hours. They shall also provide customer service to beneficiaries through declared and clear communication channels on a 24/7 basis.
4. Working hours shall be 24 hours a day to receive and deliver containers at the agent yard/warehouse throughout the week.
Article 11: Settlement of Disputes
Disputes arising from transactions between the shipping agent and ship owners, operators, or the business sector may be resolved through arbitration, mediation, or litigation if mutually agreed upon by the parties. If the parties disagree on the dispute resolution method, the matter shall be referred to the competent courts.
18

Regulations for Shipping Agents
सोना
MAWANI
अभिका ऑफा ऑफा ऑफा
SAUDI PORTS AUTHORITY
Article 12: Correspondence and Forms
All correspondence and forms related to the activity shall be prepared in Arabic on the letterheads that clearly include the establishment's name, commercial registration number, license number, address, contact numbers, e-mail, and website address. The same may be prepared in bilingual format, where Arabic and English texts shall be written side by side.
Article 13: Control and Inspection
Shipping agents shall provide the necessary facilities to the Authority's control and inspection personnel, allowing them to access the location where they can perform their duties, checking the relevant documents and records as well as verifying the employees. Failure to cooperate may result in a warning, a financial fine, or both, as well as license suspension or license cancellation.
Article 14: Penalties and Violations
1. Penalties shall be determined based on the severity and frequency of the violation. At its discretion, the Authority may impose multiple penalties (separately or collectively) for the same violation or violations related to each other.
2. The Authority may double the penalty and take any measures it deems appropriate to address the violation, if the violation is repeated within one year of the date of committing the previous violation.
3. The Authority may apply penalties to anyone violating the provisions of these Regulations, according to the following sequence:
a. Send a warning to the agent to rectify the violation within a period specified by the Authority according to the gravity of the violation.
b. Apply a minimum financial penalty of SAR 5,000.
c. Double the financial penalty set out in Paragraph (b) of this Article in case of recurrence.
d. Apply a maximum financial penalty of SAR 50,000.
e. Suspend the license for a period not exceeding 12 months.
f. Cancel the license. In all cases, the shipping agent shall only apply for a new license after 3 years of the license cancellation date.
g. The Authority shall collect the financial dues by deducting the same from the shipping agent's bank guarantee after referring the matter to the competent entity. The agent shall reinstate the bank guarantee to the required amount within 15 days. Otherwise, the agent's activity shall be suspended.
4. The Authority may apply the penalty for non-compliance with Article 8 of these Regulations, according to the following sequence:
19

Regulations for Shipping Agents
MAWANI
الاجاده العامه للعناي
SAUDI PORTS AUTHORITY
a. Send a warning, and if the agent fails to settle the payment within 5 days, the following financial penalty shall apply:
<table><tr><td>#</td><td>Invoice Amount</td><td>Fine Per Invoice</td></tr><tr><td>1</td><td>From SAR 1 to SAR 10,000</td><td>SAR 500</td></tr><tr><td>2</td><td>From SAR 10,001 to SAR 25,000</td><td>SAR 1,250</td></tr><tr><td>3</td><td>From SAR 25,001 to SAR 50,000</td><td>SAR 2,500</td></tr><tr><td>4</td><td>From SAR 50,001 to SAR 100,000</td><td>SAR 5,000</td></tr><tr><td>5</td><td>From SAR 100,001 to SAR 200,000</td><td>SAR 10,000</td></tr><tr><td>6</td><td>From SAR 200,001 to SAR 500,000</td><td>SAR 25,000</td></tr><tr><td>7</td><td>More than SAR 500,000</td><td>SAR 50,000</td></tr></table>
- If the dues exceed the value of the bank guarantee and the shipping agent fails to pay, the agent's activity shall be suspended and shall not be reactivated until all due debts are paid and the value of the bank guarantee is reinstated.
b. Suspend the license for a period not exceeding 12 twelve months.
c. Cancel the license. In all cases, the shipping agent shall only apply for a new license after 3 years of the license cancellation date.
d. The Authority shall collect the financial dues by deducting the same from the shipping agent's bank guarantee after referring the matter to the competent entity.
5. High-risk violations that result in damage to lives, properties, public health, or public order shall be excluded from the sequence of penalties set out in Paragraphs (3) and (4) of this Article, and the Authority shall apply the penalty, it deems appropriate, based on the severity of the violation.
Article 15: Final Provisions
1. Without prejudice to the provisions of these Regulations, any waivers of rights and duties between the parties to the Maritime Contract of Carriage shall be written, signed, and stamped by all relevant parties.
2. These Regulations, or any amendments thereto, including deletion, addition, or cancellation, shall be approved by the Board of Directors or whom it designates.
3. The provisions of these Regulations shall enter into force within 60 days of its issuance date, and shall repeal any previous versions of regulations pertaining to shipping agents.
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