mc_gov_sa · executive_regulation · processed · 9 chunks
VISION d 230 المركبه العربيه السعوديه KINGDOM OF SAUDI ARABIA وزاره التجاره Ministry of Commerce Implementing Regulations of The Law on Public Warehousing +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه A @ SaudiMCI www.mci.gov.sa [Non-Text] وزاره التجاره Ministry of Commerce VISION d-91 230 دوله قطر KINGDOM OF SAUDI ARABIA Part One: License to practicing business Article (1): The issuance of a license to engage in the activity of depositing in the public warehouse requires the following: - Preliminary approval of the General Secretariat or the competent municipality within which scope of the public warehouse is located. - Initial approval from the Department of Civil Defense, within which scope of the public warehouse is located. - To be the owner of the property where the public warehouse is located, or a lessee thereof under a contract of no less than three years. - The applicant for the license is not sentenced to a penalty or punishment in case of honesty, neither a disciplinary decision has been issued to dismiss him from the government service for disciplinary reasons, unless three years have passed since the implementation of that sentence or, at least, he has been rehabilitated. Companies' directors, branches, chairmen and members of their boards of directors are subject to this provision. Article (2): The license period for practicing the profession shall be three years, renewable for similar periods, at the request of the license holder. Article (3): In case the Licensee wishes to renew his license, he shall submit to the same entity that granted him the license for its renewal, at least thirty days before the expiry of the license period, attaching the following: - Original license. - Certificate from the General Secretariat or the municipality to which the warehouse belongs, stating its validity for a period no less than three years. - Certificate from the Department of Civil Defense stating the availability of safety conditions in the warehouse to be licensed, or which license is to be renewed, to practice the activity. - Property instrument of ownership of property lease for a period no less than three years. - A certified copy of the public warehouse budget during the last three years. Part Two: Obligations of the Public Warehouse Article (4): The original activity of the public warehouse is to warehouse and keep goods for the account of the depositor or the person to whom the goods or their possession go under a negotiable storage receipt. The warehouse may carry out the following activities: 1. Provide loans secured by mortgaging the goods held therein. 2. Issue a certificate of a mortgage on the goods deposited therein. 3. Deal with mortgage deeds upon the written consent of the mortgagor thereon. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه SaudiMCI www.mci.gov.sa 2 [Non-Text] وزاره التجاره Ministry of Commerce VISION à Jg 230 دولي اعلان شهدان KINGDOM OF SAUDI ARABIA Article (5): Repayment period of the loan provided by the public warehouse shall not be guaranteed by mortgaging the goods held therein after the elapse of the mortgaged goods' period of storage. Article (6): The public warehouse may not issue a pledge on the goods held therein in return for a debt to be settled after the expiry of the deposit contract. Article (7): The loan contract may not contain any benefit to the depositor against the loan, including interest and fees. Each and every condition in the loan contract to that effect shall be considered null and void. Article (8): The public warehouse, be it an individual or a company, shall not exercise in any capacity, whether for its own account or for the account of others, any commercial activity, not shall it compete on any goods of the type of goods licensed to be warehoused therein or issue documents representing them. Article (9): This prohibition referred to shall apply to the partner who owns at least 10% of the capital of the public warehouse, if it is a company. Article (10): The above prohibition shall not apply to the public warehouse if it is a state-owned company and the public interest so requires. Article (11): The public warehouse shall prepare and keep a record indicating the following: 1. Numbers and dates of the contracts concluded by the public warehouse. 2. Quantity and description of the goods deposited therein. 3. Date of receipt and delivery of the goods. 4. Value of goods. 5. Agreed-upon storage period. 6. Transfer of ownership, mortgage or otherwise, the goods are subject to. The public warehouse shall keep its records outside the public warehouse site. Article (12): The public warehouse shall insure the goods deposited with a local insurance company, provided that the insurance covers all risks arising from fire, theft, rain and natural pollution. Article (13): The public warehouse shall be responsible for the goods deposited therein, guarding and maintaining them, exerting the utmost care in this regard, where its responsibility shall be within the limits set forth in the deposit documents. The public warehouse shall not be liable for any damage or deficiency caused to the goods by any force majeure, if the insurance policy covers that or if the damage or shortage is due to a defect therein. +966 11 294 4444 | Riyadh 11162 المركز الاردن | SaudiMCI Kingdom of Saudi Arabia | المملكه العربيه السعوديه www.mci.gov.sa 3 [Non-Text] وزاره التجاره Ministry of Commerce VISION d...gi 230 ال Estimates المطليه Kingdom of Saudi Arabia Article (14): The public warehouse shall deliver the depositor a storage receipt including the following information: 1. Depositor name and address. 2. All data specifying the type, quantity, and value of goods. 3. Deposit date, duration, and storage fee. 4. Indicating whether the goods are subject to any duties or taxes. 5. Statement on the conditions to replace the goods with similar items. 6. Insurance data. 7. Indicating whether the goods are mortgaged. Article (15): If the goods are similar, the depositor may replace them with goods of their nature, type and description, if so is provided for in the storage receipt and the mortgage deed. Article (16): The public warehouse shall deliver the goods on the delivery date specified in the receipt or upon request of delivery by the depositor, if they are not subject to any obligations. Article (17): The public warehouse shall comply with the following: 1. The conditions and specifications specified for each type of goods deposited therein, accordance with the requirements and conditions of the General Organization for Standardization and Metrology. 2. Confidentiality of information of the goods warehoused therein. 3. Not to warehouse goods prohibited by law. 4. Inform the depositor in writing of any corruption noticed in the warehoused goods on the spot. Part Five: Endorsement of the storage receipt and the mortgage deed Article (18): The depositor may endorse the deposit receipt or the mortgage deed together, or endorse one of them if the Deposit Order is issued. Article (19): The endorsed-to party shall request the public warehouse, within three days of possessing the storage receipt or the mortgage deed, showing the endorsement in a copy of the receipt and copy of the voucher to be kept by the public warehouse. Article (20): The public warehouse, immediately upon receipt of the application for endorsement, shall record the same, indicating the name and address of the party endorsed-to, notifying the depositor with the same on his address. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه f@SaudiMCI www.mci.gov.sa 4 [Non-Text] وزاره التجاره Ministry of Commerce VISION and 230 دوليه اداريه الشوك KINGDOM OF SAUDI ARABIA Article (21): The endorsement of the mortgage deed, separately from the storage receipt, shall result in mortgaging the goods favor of the party endorsed-to. Endorsement of the storage receipt shall result in the transfer of ownership of the goods to the party endorsed-to. Article (22): If the goods are mortgaged to a certain person and the storage receipt is endorsed, the ownership of the goods shall be transferred to the party endorsed-to, carrying the mortgage, in which case, the party endorsed-to shall be obliged to pay the debt secured in the mortgage deed or shall enable the mortgagee to obtain his dues from the price of the goods he received at the debt maturity date. Article (23): The mortgage recorded in the mortgage deed, plus the statutory reasons thereof, shall elapse with the end of the storage period, without any claims to the holder of the mortgage deed. Article (24): The endorsement shall be written on the same receipt or mortgage deed and shall include the following: 1. Name of the endorser. 2. Signature of the endorser. 3. Name of the party endorsed to or to his order. 4. Statement to the transfer of the right to the party endorsed to. 5. Debt maturity date is, at least, three days before the expiry date of the storage period. If the mortgage deed appears separate from the storage receipt, the endorsement shall include the following: (5.1) Amount of the secured debt. (5.2) Maturity date. (3-5) Creditor's name and address. (5-4) Endorser's signature. (5-5) Statement of the date of delivering the mortgaged goods. Article (25): The holder of the storage receipt, separate from the mortgage deed, may pay the debt secured in this document, even before the debt maturity date. If the holder of the mortgage deed is unable or refused to pay before the due date, the holder of the storage receipt may deposit the debt with a local bank, upon which the goods shall be released. Deposit may be processed in any of the following forms: 1. Certified cheque in the name of the Public Warehouse, dated on the debt maturity date. 2. Bank guarantee for the order of the warehouse, disbursable from the maturity debt maturity date. 3. Deposit a cash amount with the value of the debt in the public warehouse account. Article (26): Upon failure to pay the debt on its maturity date, the holder of the mortgage deed, separate from the storage receipt, may request the Board of Grievances to authorize him to sell the mortgaged goods in accordance with the following: +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه f @ SaudiMCI www.mci.gov.sa 5 [Non-Text] وزاره الدخل Ministry of Commerce VISION and VISION 230 دوله اداره السعوديه KINGDOM OF SAUDI ARABIA 1. The holder of a mortgage deed shall notify the warehoused with his desire to be authorized to sell, at least one day prior to his wish to apply to the Board of Grievances. 2. The public warehouse shall immediately notify the holder of the storage receipt. 3. The holder of the mortgage deed shall submit to the Board of Grievances a request for the sale of the goods, within three days from the date of notifying the depositor of his desire to sell the goods. 4. The holder of the mortgage deed shall submit to the Public Warehouse an evidence proving that he has submitted to the Board of Grievances an application for the sale of the goods one day before the date of receipt of the mortgaged goods, otherwise he may receive them on the specified delivery date. Article (27): The mortgagee creditor shall collect its right from the price of the goods by virtue of concession to all creditors upon accounting the following amounts: 1. Taxes and duties due on the goods. 2. Expenses for the sale and storage of goods, as well as other expenses pertaining to keeping and delivering such goods. Article (28): In case of an amount excess to the mortgage debt, it shall be disposed of according to the following: 1. If the storage receipt holder is present at the time of sale of the goods, that excess amount shall be delivered to him. 2. If the holder of the storage receipt is not present, the amount excess to the dues of the mortgage deed holder shall be deposited at a local bank at the disposal of the competent judicial authority. Article (29): The mortgage deed holder may recourse to the mortgaging debtor and the endorsers according to the following: 1. The mortgaged goods are sold and yet their price is insufficient to cover the debt. 2. Recourse to the mortgaging debtor shall be within ten days from the date of sale. Article (30): 1. The claim of the holder of the mortgage deed to recourse to the mortgaging debtor and the endorsers of the mortgage deed, shall be dropped if the claim of recourse is not filed within ten days from the date of sale of the goods. 2. The claim of the holder of the mortgage deed to recourse to the endorsers shall be dropped if execution procedures are not applied to the mortgaged goods within thirty days of the debt due date. Article (31): In case any defect or damage occurred to the goods, it shall be covered by an insurance policy, where the holder of the storage receipt or the mortgage deed on the insurance amount shall have the rights and privileges on the goods, particularly the following: 1. Receipt of the compensation amount. 2. Address the insurance company and terminate all compensation procedures. +966 11 294 4444 | Riyadh 11162 لارياء Kingdom of Saudi Arabia | المملكه العربيه السعوديه @ SaudiMCI www.mci.gov.sa 6 [Non-Text] وزاره التجاره Ministry of Commerce VISION and 230 دولیک اپلایا شهد KINGDOM OF SAUDI ARABIA 3. Claim the insurance company for compensation. 4. Replace the insured in the claim and receive the amount of compensation. If the holder of the storage receipt is not the holder of the mortgage deed, the priority shall be to the mortgage deed holder. 5. The storage receipt holder or the mortgage deed holder replacing the insured, or claiming them for compensation, shall not exempt the public warehouse from liability. Taking all measures to protect the rights of the insured, the holder of the storage receipt and the holder of the mortgage deed before of the insurance company. Part Four: Loss or damage to the storage receipt or mortgage deed. Article (32): The holder of the storage receipt or the holder of the mortgage deed may, upon its loss or damage, request the Board of Grievances to issue an order to the public warehouse to issue him a copy of the storage receipt or the mortgage deed, under the following conditions: 1. Prove his ownership of the storage receiot or the mortgage deed. 2. Provide a bond or a guarantee with the full amount of the goods or the value of the debt. 3. The receipt or the mortgage deed is recorded at public warehouse in the name of the person requesting the lost receipt copy. 4. Write a statement that the storage receipt or mortgage deed of which a copy is required has not been endorsed. 5. Announce that loss or damage in a local newspaper distributed in the public warehouse territory. Article (33): If the delivery date is due, the holder of the storage receipt may only e claim to deliver the goods. If the debt maturity date is occurring, the holder of the mortgage deed is entitled to claim meeting the above conditions. Article (34): The public warehouse shall inform the storage receipt holder, the holder of the mortgage deed, the guarantor and the authorized signatories of all the actions taken on the lost or damaged storage receipt or damaged mortgage deed. Article (35): The guarantee provided in the event of lost endorsed storage receipt or mortgage deed shall expire one year from the date of the Board of Grievances' issuing an order to deliver that holder a copy of the storage receipt or the issue a fulfillment order of the secured debt. Part Five: Termination of the Deposit Contract Article (36): In case the depositor has not recovered the goods at the end of the deposit contract term as specified in the storage receipt, the public warehouse shall notify the depositor to recover the goods. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه f@ SaudiMCI www.mci.gov.sa 7 [Non-Text] وزاره التجاره Ministry of Commerce VISION dL jgi 230 دوليه اعلانيه莪دول KINGDOM OF SAUDI ARABIA Part Six: Control and Investigation. Article (37): The employees appointed by the Minister of Commerce and Industry under Article (23) of the Law are competent as judicial officers in respect of the provisions of the Law and the decrees issued in enforcement thereof. They, individually or in solidarity, shall be entitled to the following: 1. Enter the places in which the activity takes place. 2. Access to records and documents. 3. Investigate the violator or his representative, confronting him with the alleged offense, recording the ID data of the investigated person and retain a copy thereof, in addition to validating his nationality and capacity in the public warehouse, as well as the address of the public warehouse in which the activity is conducted. The violator may ask to verify the identity of the employee who performed the inspection and control process. 4. Custody of the documents and papers belonging to the public warehouse under seizure receipts stating their numbers and nature, signed by the control officer and the officer existing in the public warehouse. 5. Seek police support when necessary. Article (38): Each employee shall control the violations that occur contrary to the provisions of the Law and the decrees decisions issued in enforcement thereof, taking into consideration the following: 1. Adhering to the rules of good behavior, ethics and public morals. 2. Each judicial officer shall show his ID indicating his status and capacity. 3. Investigation, inspection and seizure shall be carried out by the judicial control officers and those who prepare the minutes of investigation, inspection and seizure shall have all records signed by the judicial officers. 4. The warehouse shall be visited for purposes of inspection and seizure only during the official working hours, except with the written consent of the Director General of Internal Trade or the Director General of the branch of the Ministry of Commerce and Industry, in which scope the suspected warehouse is located. 5. Upon inspecting or investigating regarding the public warehouse, wherever located, minutes shall be issued with the same, to be submitted to the Director General of Internal Trade or the Director General of the branch of the Ministry of Commerce and Industry, in which scope the suspected warehouse is located. Article (39): In case the inspection revealed a violation of the provisions of the Law or the decisions issued in implementation thereof, the competent employee may seize the papers and issue minutes of the incident, conduct an investigation thereof and submit the matter to the Director General of Internal Trade or the Director General of the branch of the Ministry of Commerce and Industry, in which scope the suspected warehouse is located, so as to refer the papers to the Investigation and Public Prosecution Authority for investigation and public prosecution purpose in terms of the seized violation before the Board of Greivances. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه A @ SaudiMCI www.mci.gov.sa 8 [Non-Text] وزاره التجاره Ministry of Commerce VISION and 230 العربيه المطيه السويس KINGDOM OF SAUDI ARABIA Article (40): The judicial control officers shall return all documents and papers to their owners within three working days of seizing them, subject to minutes that indicate the number and the nature of the papers. They may keep copies marked as replicas by the control officer and the warehouse manager. Article (41): The Board of Grievances is competent to adjudicate all cases and disputes arising from the application of the Law and the decisions issued in enforcement thereof. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه @ SaudiMCI www.mci.gov.sa 9