Saudi Arabia introduces the New Standards and Quality Law and the Product Safety Law: An overview

On 30 July 2024, the Kingdom of Saudi Arabia (the KSA) approved two significant legislations pursuant to a Council of Ministers Decision (93) including, the Product Safety Law and the Standards and Quality Law. The Product Safety Law was issued pursuant to Royal Decree No. M/36 on 29/01/1446 H (corresponding to 30/08/2024 G) (the Product Safety Law) and was published on 16 August 2024 in KSA’s official gazette (Umm Al-Qura). The Standards and Quality Law was issued pursuant to Royal Decree No. M/36 on 29/01/1446 H (corresponding to 04/08/2024 G) (the Standards and Quality Law) and was published on 04 August 2024 in Umm Al-Qura. Both laws (the New Laws) will come into force ninety days after their date of publication.

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Key Developments

The New Laws represent significant reforms of the KSA registration framework in respect of product safety and quality standards and are set to replace the previous legislative framework to provide a unified and comprehensive system. The laws will apply to all products, including those sold online, except for items regulated by the Saudi Food and Drug Authority (SFDA). 

SASO’s Role in Implementing the New Laws

The Saudi Standards, Metrology and Quality Organization (SASO) is the primary authority overseeing the implementation of the New Laws and is tasked with preparing national strategies, reviewing standards, and ensuring compliance. SASO is responsible for establishing a Product Safety and Control Committee to coordinate efforts to ensure product safety, develop policies, and propose new regulations and standards. SASO will also appoint inspectors, authorized to control and prove violations of both laws and their respective regulations. Furthermore, to ensure standards are upheld in accordance with the Copyright Protection Law, SASO will collaborate with the Saudi Authority for Intellectual Property (SAIP) to enforce both the New Laws from a copyright protection perspective.

Key Provisions of the Standards and Quality Law

The Standards and Quality Law aims to ensure product quality and safety by establishing comprehensive standards and guidelines. The law comprises twenty-four articles which regulate product standards and quality, ensure non-discrimination between local and imported products, mandate adherence to quality standards, and promote effective coordination and transparency among regulatory authorities. 

Under the Standards and Quality Law, several key aspects are regulated, including:

1. Guiding Principles for Standardization: the law emphasizes the involvement of relevant authorities in creating, adopting, and approving standards. It ensures transparency in these processes and aligns KSA standards with international and regional benchmarks, promoting fairness between local and imported products.
2. Public Access and Transparency: the law requires standards and relevant documents to be accessible to the public.
3. Sustainable Development and Trade Facilitation: the law supports sustainable development by optimizing resource and energy use and promoting sustainable production and consumption patterns. It also facilitates trade by removing unnecessary technical barriers and improving the quality of products and services.
4. Compliance and Enforcement: non-compliance can result in penalties such as warnings, fines, or other sanctions as specified by the regulations. Violations related to the use of quality marks issued by SASO may incur penalties including suspension of the quality mark certificate or other marks for up to one year, cancellation of the certificate or marks, and fines up to one million riyals.

Key Provisions of the Product Safety Law 

The Product Safety Law introduces major reforms in KSA to ensure consumer safety by regulating market products and preventing the sale and use of unsafe items. The law comprises of thirty-seven articles which regulate product safety and compliance, ensure non-discrimination between local and imported products, mandate the prohibition of unsafe products, and promote effective coordination and transparency among authorities.

Under the Product Safety Law, several key aspects are regulated, including:

1. Duties of Market Participants: manufacturers, authorized representatives, and importers are required to ensure product safety, compliance with technical regulations, conduct risk assessments, and provide necessary information to consumers. Distributors are also required to assist in compliance, avoid selling non-compliant products, and cooperate in corrective actions. 
2. Conformity Assessment: products must undergo conformity assessments to ensure they meet technical regulations and comply with safety standards before they are sold. Conformity assessment bodies will be required to adhere to the New Law, maintaining professional confidentiality and ensuring impartial and accurate evaluations.
3. Penalties and Liabilities: non-compliance can result in warnings, fines up to ten million riyals, or closure of establishments for up to one year. For minor infractions, a corrective period may be allowed before incurring fines or closure. More serious offences such as deliberately placing or displaying unsafe products can result in imprisonment for up to ten years. In cases of product defects, manufacturers will be liable for damages.
4. Transparency and Coordination: transparency and coordination are emphasized under the law to ensure the involvement of all stakeholders in applying the law, promoting trust and cooperation between the government, businesses, and consumers

Anticipated Implementing Regulations

The Implementing Regulations (IRs) for both the Product Safety Law and the Standards and Quality Law will be issued within ninety days from the date of publication of each law. The IRs are expected to provide more detailed guidance on the practical application and enforcement of these laws.

In the meantime, all entities must consider the requirements under both laws in their operations. For additional details, please do not hesitate to contact Abdulaziz Albosaily for legal advisory to structure the necessary compliance plans and ensure overall alignment with the New Laws.