Aims to Activate the Supervisory Roles and Improve the Economic and Industrial Environment in the Kingdom
MCI announced the establishment of a committee to consider the industrial violations. This committee is specialized in monitoring and investigating the violations of the industrial projects in the Kingdom, and to impose penalties against the perpetrators and violators of the regulations. The Committee shall decide on the issues that are detected in various industrial institutions, as well as imposing administrative penalties on the violating factories. MCI aims to activate the supervisory roles and to develop the industrial sector, besides improving the economic and industrial environment in the Kingdom.
A Ministerial Decree was issued by H.E. the Minister of Commerce and Industry, Dr. Tawfiq Bin Fawzan Al Rabiah approving the establishment of such committee to consider the industrial violations, this Decree specifies the jurisdiction of this committee, in studying the industrial projects violations that are detected through field rounds, inspection campaigns and through responding to notifications, as well as imposing administrative penalties on violating industrial projects, depending on type and nature of the violation.
MCI confirmed the start of this committee`s works after authorization. Consequently, twenty-two violating factories had received administrative penalties in Riyadh, Jeddah, Dammam, Khobar, Abha, Khamis Mushat. Such violations included: non-compliance with the Saudi Standard Specifications, and the violation of Anti-Commercial Fraud, such as changing the country of origin and counterfeiting famous trade brands.
The penalties also included the start of production without obtaining the final license, using expired raw materials, using as well impure raw materials, in addition to the sale of raw materials exempted from customs, without being manufactured, also the low level of hygiene inside the factories and the lack of health certificates for workers.
MCI pointed out that the said committee had issued a number of administrative warnings based on those violations, where a number of violating industrial projects had been shut down until the removal of such violation and its resulted effects, besides stopping the customs exemption and depriving the factories in violation to get duty-free license for a period of five years as punishment for selling duty-free raw materials without being manufactured.
According to the Ministerial Decree, the administrative penalties, issued by the said committee, will take effect on all industrial projects, except those excluded as per the Consolidated Industrial Organization of the Gulf Cooperation Council (GCC) issued by the Royal Decree No.20/M dated 04/04/1427 AH.
The Decree also gives the committee the eligibility in addressing all competent authorities in the state for providing the necessary information and data needed for the performance of its work, it has the right as well to summon the industrial project owner, or any other person to conduct the investigation process regarding the violations of the industrial projects presented to it.
MCI emphasizes its ongoing pursuit in implementing the supervisory role for the improvement of the industrial environment, so that it would be free of any violation, and contribute to attract commercial and industrial investments into the local market.