The New Saudi Specifications and Quality System: Analysis of Key Provisions and Primary Objectives

Al Madani & Co. Law Firm & Legal Consultants

The New Saudi Specifications and Quality System: Analysis of Key Provisions and Primary Objectives

With the New Saudi Specifications and Quality System nearing implementation, it has become essential for businesses and industries to understand the legal provisions affecting local and imported products, whether sold in traditional stores or online. This system is part of the Kingdom’s efforts to enhance safety and quality standards and ensure consistent compliance with legal and technical requirements across various products.

Following the approval of the Product Safety and Specifications and Quality Systems by the Council of Ministers under Royal Decree No. (M/36) dated 29/1/1446 AH, published in the Official Gazette on August 18, a comprehensive regulatory framework has been established. The importance of this system lies in its role as a reference for legal provisions related to product quality and safety, alongside the responsibility of the Saudi Standards, Metrology, and Quality Organization (SASO) to ensure adherence to these standards.

I. The New Specifications and Quality System and Its Importance

Article 2 of the Specifications and Quality System and the Product Safety System states that the primary goal of the system is to establish a general framework for standardization and quality. This system serves as a cornerstone in the Kingdom’s efforts to build a prosperous economy based on knowledge and innovation. The system aims to achieve several strategic objectives, including:

1. Legal and Regulatory Compliance
o Understanding Legal Obligations: The system outlines key provisions regarding procedures and conformity, enabling clients to understand compliance requirements and avoid penalties.
o Avoiding Penalties: The system imposes strict penalties for violations, allowing businesses to correct their course before facing legal challenges.

2. Brand Protection and Credibility
o Ensuring Quality: Compliance with the system enhances product quality, thereby improving corporate reputation.
o Reducing Legal Disputes: The system minimizes the likelihood of legal claims arising from non-conforming products.

3. Supporting Business Operations
o Gaining a Competitive Edge: Adhering to standards boosts the competitiveness of Saudi products.
o Supporting Exports: Enables clients to understand how to adopt international standards.

4. Consumer Protection
o Ensures the safety and quality of products available in the Saudi market, whether domestic or imported, providing a safe shopping environment for consumers.

5. Enhancing National Economic Competitiveness
o Improves the quality of Saudi products, enabling them to compete in global markets, diversifying income sources, and bolstering the national economy.

6. Industrial Development
o Encourages local industries to adopt global best practices in quality, supporting industrial growth and national integration.

7. Achieving Vision 2030
o Contributes to achieving the objectives of Saudi Vision 2030 by building a diverse and sustainable economy and enhancing the Kingdom’s position as a global trade and logistics hub.

II. Key Provisions of the System

The new Specifications and Quality System covers several primary provisions, including:

1. Definitions
o Provides precise definitions for fundamental concepts, such as:
• “Standardization”: A set of consistent activities aimed at adopting or approving standards and related documents.
• “Quality”: The degree to which a set of characteristics meets requirements, expectations, or goals.
• “Specification”: An approved document outlining rules, guidelines, or characteristics for related products, processes, and production methods, compliance with which is not mandatory.
o Additional key definitions unify understanding and application of the provisions.

2. Standardization and Regulatory Bodies
o Strengthens the role of SASO as the regulatory authority responsible for preparing and approving standards, granting it extensive powers to oversee compliance with standards, including protecting public health, safety, and the environment.
o Article 4 outlines the objectives of standardization activities, including ensuring high levels of protection for human, animal, and plant health, property, and the environment, enhancing economic competitiveness, and safeguarding consumer interests.

3. Assessment and Conformity Procedures
o Specifies procedures for SASO to assess the conformity of products and services to standard specifications, including rigorous testing and inspections to ensure quality. Articles 5 and 6 emphasize SASO’s central role in this area.

4. Development and Adoption of Standards
o The third section of the system addresses the preparation, approval, and adoption of standards and related documents. It outlines clear mechanisms for developing and approving national standards, mandating compliance while allowing the adoption of international standards where local standards are unavailable.

5. Penalties and Violations
o Imposes strict penalties on entities violating standard specifications or compromising product quality. These penalties, detailed in Section 6, include financial fines, suspension of operations, or license revocation. Article 22 specifies penalties for violating the system’s provisions.

6. Verification and Reporting
o Requires producers and suppliers to continuously verify their products’ compliance with standard specifications and mandates periodic reporting to regulatory authorities.

III. Anticipated Impact of the System

With the imminent application of the new system, the following positive impacts are expected: • Enhancing consumer confidence in local products, increasing both domestic and international demand for Saudi products. • Achieving economic efficiency by reducing production costs arising from poor quality or re-manufacturing. • Supporting Vision 2030 by improving the Kingdom’s standing in quality and innovation indices.

IV. Implementing Regulations

The SASO Board of Directors is expected to issue implementing regulations soon. The system’s concluding provisions mandate that these regulations be issued within 90 days of the system’s publication in the Official Gazette.

Conclusion

The New Saudi Specifications and Quality System represents a significant step forward in enhancing quality standards in the Kingdom. With its impending implementation, all sectors must comply with its provisions to achieve the intended objectives and contribute to driving sustainable and diversified economic development.