Several Trade Sectors are included, most notably: Medicines, Cars, Clothing and Foodstuffs
MCI has announced that more than 800 commercial agencies have been written off for not renewing their contracts after the expiry date, indicating that the administrative writing off decisions came after the end of six months granted to companies and institutions to make the necessary amendments. This writing off included many trade activities, such as automotive, clothing, medical equipment, medicines and foodstuffs.
MCI called on all companies and institutions to renew their commercial contracts under the agents and distributors record. Consequently, the Ministry stressed the application of the penalties provided for in the Commercial Agencies System. This is for those who have not committed to update their contractsduring the six-month period started from 01/06/1436 AH. MCI pointed out the possibility of registering more than one agency for a product or registering more than one agent in case of multiple ones. The number of commercial agencies written off reached (823), varied among the contracts of franchise, distribution, services and commercial agencies.
According to article (XVI) of the Implementing Regulations of the Commercial Agencies System, the registration of a commercial agency or distribution will be written off in case the trader, whether an individual or a company, would quit the business, or in case the contract of the commercial agency or distribution has expired without renewal or extension, in addition that the agent or distributor does not meet any of the basic conditions set forth in the Commercial Agencies System or its amendments.
MCI stresses the importance of registering and updating the Commercial Agencies Contracts to contribute in preserving the rights of all parties, and to clarify their obligations towards theconsumers. This would promote the application of other related systems, such as the law of Anti-Commercial Fraud, as well as Trademarks and others. The agent or distributor, who registers his trade agency, has the right to introduce himself as an agent or distributor in the media, besides taking advantage of the clearance of his goods as soon as possible in the customs ports.