mc_gov_sa · law · processed · 29 chunks
[Non-Text] وزاره التجاره Ministry of Commerce VISION d 2013 23:30 دوله العربيه السعوديه KINGDOM OF SAUDI ARABIA Public Warehousing Law Article 1: This Law aims at setting controls to regulate public warehouses, specify the nature of goods deposited for storage and safekeeping, rights and obligations of warehouses as well as storing charges. Article 2: The following words and phrases, wherever mentioned in this Law, shall have the meanings assigned to them, unless the context requires otherwise: Public warehouse: a place designated by the warehouse to deposit and store goods for a specified period until delivery, in return for a specified charge. Warehousing: a contract under which a warehouse undertakes to store and safekeep goods for the interest of a depositor, owner or possessor against endorsable (or negotiable) instruments issued by the public warehouse. Warehouse receipt: a warehousing contract issued by the public warehouse indicating depositor's name and address as well as type of goods, quantity, value and all necessary particulars, such as type of insurance, name of insurer and beneficiary, in addition to a statement verifying payment or non-payment of fees and taxes due on such goods. Lien document: a certificate issued by the public warehouse, which includes specific particulars on deposited goods, value and rights thereon, as well as other data provided for in the warehouse receipt. Article 3: Without prejudice to provisions of other laws, the provisional license establishing a public warehouse shall be issued by the municipality of the city where said warehouse is to be established. The license to operate a warehouse shall be issued by the Minister of Commerce and Industry or a Ministry of Commerce and Industry branch director authorized thereby, as per controls specified in the implementing regulations. Article 4: A warehouser, whether individual or company, may not – in any capacity – engage in a commercial activity for his or others' interest nor speculate in goods similar in type to goods he is licensed to store in his warehouse and issue instruments against them. This restriction shall apply to any partner holding at least ten percent (10%) of the warehouser's capital, if a company. A warehouser shall be excluded from such provision if it is a state-owned company and the public interest so requires. Article 5: A public warehouse may provide loans secured by goods stored therein and use lien documents thereof upon lienee's consent. Article 6: The depositor undertakes to provide to the public warehouse accurate information and particulars on type of stored goods and material as well as their specifications and value. The depositor may inspect and collect samples from goods delivered to the public warehouse, in coordination with the warehouse. Article 7: A warehouser shall be liable for goods deposited therewith, and shall exercise due diligence for safeguarding and safekeeping thereof. Said liability shall be limited to the value specified in warehousing documents. The +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه www.mci.gov.sa 1 [Non-Text] وزاره التحره Ministry of Commerce VISION d 30 230 دولیک اعلان لسودن KINGDOM OF SAUDI ARABIA warehouser shall not be held liable for any loss or damage to the goods due to force majeure or an inherent defect. Article 8: permission to sell goods feared to perish through no fault of his own, if the depositor refuses to collect or dispose of such goods upon notification thereof by registered mail. The Board of Grievances shall determine the manner of sale and disposal of the proceeds. Article 9: A warehouser shall insure deposited goods through cooperative insurance. Article 10: A depositor shall obtain from the public warehouse a warehouse receipt accompanied by a lien document, including all particulars of the warehouse receipt. The public warehouse shall keep a true copy of the warehouse receipt and the lien document. Article 11: If the goods subject of the warehouse receipt and lien document are fungible, they may be replaced by goods of the same nature, type and characteristics, if stipulated in the warehouse receipt and lien document. In such a case, all rights of the bearer of the warehouse receipt and lien document and privileges thereof shall transfer to the new goods. A warehouse receipt and a lien document may be issued for a larger amount of the bulk fungible goods. Article 12: A warehouse receipt and a lien document may be issued in the depositor's name or to his order. If the warehouse receipt and lien document are issued to the depositor's order, he may endorse either or both to others. The endorsee shall – without delay – request the warehouse to enter such endorsement onto the receipt and lien document copies kept with the warehouse. The warehouser shall promptly enter said endorsement, stating the address of the endorsee. Article 13: The lien document endorsement - detached from the warehouse receipt - shall result in acknowledgment of the lien of the goods in favor of the endorsee. The warehouse receipt endorsement shall result in the transfer of goods' ownership to the endorsee. If the lien document is endorsed in favor of another person, ownership of such goods– lien burdened - shall be transferred to the warehouse receipt endorsee. In such case, the endorsee shall pay the debt secured by the lien document, or enable the lienor creditor - on maturity date - to collect his dues from the proceeds of goods transferred thereto. Article 14: Warehouse receipt and lien document endorsement shall be dated. If the lien document is endorsed separately from the warehouse receipt, such endorsement shall, in addition to being dated, specify the amount of the secured debt, maturity date, creditor's name and address as well as endorser's signature. The endorsee shall – without delay - request the lien document endorsement and particulars related thereto be entered into the warehouse records and indicate the same on the lien document. +966 11 294 4444 | Riyadh 11162 لارياض Kingdom of Saudi Arabia | المملكه العربيه السعوديه @ SaudiMCI www.mci.gov.sa 2 [Non-Text] وزاره التحرير Ministry of Commerce VISION 23:30 دولیک اطیع لشودگی KINGDOM OF SAUDI ARABIA Article 15: A bearer of the warehouse receipt - detached from the lien document - may re-pay the debt secured by such document prior to maturity date. If re-payment to the lien document bearer is not possible or if he declines to accept such re-payment prior to maturity date, the bearer of warehouse receipt may deposit the debt with a local bank, and this shall result in release of the goods. Article 16: If the debt is not re-paid on maturity date, the bearer of the lien document - detached from the warehouse receipt - may petition the Board of Grievances for permission to sell the liened goods. The Board of Grievances shall determine the manner of sale, and notify the warehouse and the warehouse receipt holder accordingly. Article 17: Privileged over all creditors, the lienor creditor shall collect his dues from the proceeds of goods after deducting the following: a. Taxes and fees due on the goods. b. Expenses related to sale and storage of goods, as well as other safekeeping and delivery expenses. If the warehouse receipt bearer is not present at the time of sale of goods, any amounts in excess of the dues of the bearer of the lien document shall be deposited with a local bank. Article 18: A bearer of a lien document may not have recourse to the lienee debtor or the endorsers unless the sale proceeds of the liened goods are insufficient to satisfy the debt, provided that such recourse be within ten days from the date of sale; otherwise, the recourse claim shall be barred. In all cases, the claim of the lien document bearer against endorsers shall be barred if he does not initiate execution procedures on liened goods within thirty days from the maturity date. Article 19: If the goods sustain defect or damage covered by the insurance policy, the bearer of the warehouse receipt or lien document shall be entitled to the insurance amount equal to his rights and privileges due on such goods. Article 20: The bearer of a warehouse receipt, in case of loss or damage of such receipt, may petition the Board of Grievances to order the public warehouse to provide him with a copy of the warehouse receipt, provided that he establishes ownership of the warehouse receipt and provides a guarantor or adequate guarantee. Under the same conditions, the lien document bearer – in case of loss or damage – may petition the Board of Grievances to issue a re-payment order for the secured debt if the debt is due. This order shall include all endorsement particulars entered into the warehouse records. If the debtor fails to carry out the order, the person to whom said order is issued may petition the Board of Grievances for permission to sell the liened goods. The Board of Grievances shall determine the manner of sale, and notify the warehouser and warehouse receipt bearer thereof, provided that such endorsement is entered into the warehouse records and a guarantor or adequate guarantee is furnished. Article 21: The guarantee provided in case of loss of the endorsed warehouse receipt or lien document shall expire one year from the date the Board of Grievances issues the order to provide a copy of the warehouse receipt or from the date of the petition for issuance of a re-payment order for the due secured debt. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه @ SaudiMCI www.mci.gov.sa 3 [Non-Text] وزاره التحرير Ministry of Commerce VISION لقي 23:30 دولقي ييعل ييشلەر KINGDOM OF SAUDI ARABIA Article 22: If the depositor fails to collect the goods by the end of the warehousing contract term - as provided for in the warehouse receipt - the warehouser, after warning the depositor, may petition the Board of Grievances for permission to sell the goods and collect his dues from proceeds thereof. The Board of Grievances shall determine the manner of sale in accordance with the execution procedures relating to commercial lien. The warehouser shall collect his dues from the goods' proceeds. Article 23: a. A person engaging in this activity without obtaining a license from the agencies referred to in Article 3 of this Law shall be punished by imprisonment for a maximum period of three years or a fine not less than five thousand riyals and not exceeding one million riyals, or both b. A person violating the provisions of this Law, save for the provisions of paragraph (a) of this Article, shall be punished by imprisonment for a maximum period of three months or a fine not exceeding one hundred thousand riyals, or both. In case of recidivism, the punishment shall be doubled. c. The same punishment shall apply to the warehouse or any affiliate thereof if he discloses confidential information relating to deposited goods, save as permitted by the law. In case of conviction of establishing or investing in a public warehouse in violation of the provisions of this Law, the court may order liquidation of the warehouse and appoint a liquidator and determine his powers. Article 24: The Board of Grievances shall have jurisdiction to decide disputes arising from the implementation of the provisions of this Law. Article 25: Employees appointed by the Minister of Commerce and Investment from among employees of the Ministry as well as employees of the municipalities shall have the capacity of judicial investigation officers for purposes of implementation of the provisions of this Law. Article 26: The Bureau of Investigation and Public Prosecution shall investigate and prosecute violations of the provisions of this Law before the Board of Grievances. Article 27: The Minister of Commerce and Industry shall issue the Implementing Regulations of this Law within ninety days from the date of its entry into force, and shall also issue decisions necessary for the implementation of its provisions. Article 28: This Law shall be published in the Official Gazette, and shall enter into force ninety days from the date of publication, and shall repeal any conflicting provisions. +966 11 294 4444 | Riyadh 11162 Kingdom of Saudi Arabia | المملكه العربيه السعوديه @ SaudiMCI www.mci.gov.sa 4