The Law of the Saudi Standards, Metrology and Quality Organization

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1 The Law of the Saudi Standards, Metrology and Quality Organization Royal Decree No. M / 10 dated 03/03/1392. With the help of Almighty Allah We Faisal Bin Abdul Aziz Al Saud King of Saudi Arabia After reviewing the Article Nineteen of the Council of Ministers Law issued by Royal Decree No. (38) dated 10/22/1377. After examining the decree of the Council of Ministers No. 172, dated 02/25/1392. Based on what the Deputy Premier has currently displayed to us. Decree the following: First: Approving the law of the Saudi Arabian Standards, Metrology and Quality Organization and the explanatory memorandum, as per the attached formula. Second: The Deputy Prime Minister and Minister of Commerce and Industry to implement this Royal Order. Royal Signature

2 The Law of the Saudi Standards, Metrology and Quality Organization Article (1): As per this law, an authority is hereby established and called "the Saudi Arabian Standards, Metrology and quality Organization and hereinafter referred to as the" Authority ". Article (2): The authority will be concerned with the following: A) The development and adoption of the texts of national standards specifications for measurement and calibration, symbols and definitions of products and commodities and methods of taking sampling and others, of what the Board of Directors would issue. B) The publication of these specifications, they will not be considered taking effect only after publication in the Official Gazette. C) The necessary awareness on the characterization and standardization and coordination of the work on the standards and specifications in the Kingdom. Article (3): The Authority would set up the rules for granting quality certificates and conformity badges with national standards and regulate how to issue them and the right of using them as well, and the use of the badge is optional. Article (4): It is allowed, with the decision of the Council of Ministers upon the recommendation of the Authority of the Board of Directors, that the Authority would participate in the Arab, regional and the International authorities for Standards Organization and the Authority to represent the Kingdom in the meetings of this authority. Article (5): The application of the standard specification is mandatory, and may be, by a decision of the Board of Directors that the application of a certain national standard specification would be optional, taking into account, when taking the optional decision, not to prejudice the application of one or more of the following considerations: 1 - Maintaining the safety and public health. 2 Protection of consumer. 3 - Guarantee the public interest.

3 Article (6): The Ministries, independent departments and government institutions should comply with mandatory national standard specifications in their purchases and all of its work. Article (7): The Authority's headquarters will be in the city of Riyadh and the authorities may establish other branches in the Kingdom. Article (8): The Authority shall have legal personality and administratively linked to the Ministry of Commerce and shall have an independent budget. Article (9): The Chairman of the Board of Directors will represent the authority in front of all government agencies, judicial, administrative and civil bodies in all its dealings. Article (10): The Board of Directors will be established as per the following: (1) 1 - Minister of Commerce, president 2 - Undersecretary of the Ministry of Commerce, Vice-President 3 - A representative of the Ministry of Industry and Electricity, member 4 - A representative of the Ministry of Agriculture and Water, member 5 - A representative of the Ministry of Health, member 6 - A representative of the Ministry of Public Works and Housing member 7 - A representative of the consumer protection sector member 8 - two representatives of businessmen,,one represents the Commerce and the other represents the industry men, to be chosen in consultation with the Chambers of Commerce and Industry and the Ministers of Commerce and Industry, for their appointment a decision will be issued by the Chairman of the authority for a period of three years. 9 - Director General of the authority, member 10 - A representative of the General Organization for Petroleum and Minerals, member 11 - Undersecretary of the Ministry of Municipal and Rural Affairs, member (1) 12 - Director General of the Customs Department, member (2) Article (11): The Council of Ministers, upon the proposal of the Minister of Commerce, has the right to amend the formation of the Board of Directors by issuing a decree for that.

4 Article (12): The Board of Directors of the authority is the dominant on the affairs and development policy and to take all necessary action for carrying out its tasks properly and has for that the following competences, in particular: 1 Develop the policy and the rules to be followed by the authority, regarding the technical and financial aspects, administrative and issuance of regulations and decisions to be implemented, issuing as well the financial regulations by the agreement with the Ministry of Finance and National Economy. 2 - Develop regulations for the staff of the authority in agreement with the General Personnel. 3 - Identify and adopt the draft of the national standard specifications. 4 Publishing the drafts of the national standards specifications to consider their suitability and to obtain the views of concerned bodies before adoption. 5 - Prepare the general budget draft. 6 Supervision and control of the authority technical, administrative and financial works. 7 - Develop bylaws for the functioning of the Board of Directors. 8 Appointing and terminate the Director-General of the authority and determine his responsibilities Without prejudice to the provisions of Article (14) of this law. 9 - Exercising the functions and powers provided for in this system. Article (13): The Board of Directors will meet once every three months at least, at the invitation of the President or his deputy, and to be called for the convening whenever requested that four of its members at least, the invitation must include the agenda of the meeting, the meeting would be valid only if attended by the majority of the members, including the president or vice president, the decisions would be taken by the majority votes of those present, and when a tie, the President would have the casting vote. Article (14): The Director-General would have the following tasks: 1 - The implementation and follow up the decisions of the Board of Directors. 2 Supervising and managing the staff and workers of the authority, in accordance with the powers conferred upon him by the Board of Directors. 3 - Submitting periodic reports to the Board of Directors every three months on works and financial statement of the authority and prepare an annual report on the activities of the authority. 4 - Other tasks assigned by Board of Directors.

5 Article (15): The financial resources of the authority consist of the following: 1 - The contribution given by the state. 2 - Fees earned from licensing for using the conformity badge of the national standard specification and others. 3 - The price of the bulletins issued by the authority. 4 - Grants, aid and subsidiary payment accepted by a decree of the Minister of Commerce and Industry after the approval of the Board of Directors. 5 - What the authority gets from Revenue and holdings of movable and immovable assets. Article (16): The authority may act to sell holdings of funds, but not of land and buildings, only after obtaining the prior approval of the Minister of Commerce and Industry. Article (17): It is permissible, by a decision of the authority of the Board of Directors, the recycling of its surplus budget in a given financial year to the following fiscal years without deducting the surplus from the dedicated contribution of the general budget of the state. Article (18): The Board of Directors will appoint Accountants and auditors to audit the accounts, statements and its annual budget and sets their fees, and the draft of the final account of the authority would be certified by the decision of the Board of Directors and to be ratified by the decision of the Minister of Commerce and then to be submitted to the General Auditing Bureau. Article (19): the interpretation of this law will be referred to the Council of Ministers. Article (20): This law would abolish all previous systems inconsistent with it.

6 Financial Regulation The Saudi Arabian Standards, Metrology and Quality Organization was established under the Royal Decree No. M / 10 dated of 03/03/1392 AH, which ratified its statute, has been granted the legal personality as a public legal persons to have a budget and autonomy, and in order to have the necessary flexibility to achieve its objectives and to facilitate ways of cooperation with specialized regional and international organizations, that have similar purposes and goals, which restricts membership to independent organizations in the field of standards, has made its Statute of the Board of Directors supreme authority and dominant on all its affairs and policy and the rules that go from the technical aspects, financial and administrative, and the issuance of the regulations implementing this politics. In line with these considerations, and pursuant to the provisions of Article XII of the authority law, this regulation has been set up and approved to be implemented accordingly, taking into account to reconcile between two considerations: First: The authority is considered as a legal person, owned by the state, this makes its relationship with the state, like the branch with the main headquarter. II: The authority was established as an independent body to achieve certain purposes, this, required sufficient flexibility in the exercise of its business and in the conduct of its affairs. On the other hand, the growth of the authority (organization chart and work) since its start until now, and what is witnessed of economic development and financial inflation, resulted in two things: 1 The current financial regulation is insufficient to meet its obligations "that The authority was established as an independent body to achieve certain purposes, this, required sufficient flexibility in the exercise of its business and in the conduct of its affairs. 2 The financial criteria is diminishing, specified for different departments in the Authority, compared with the current financial regulation, regarding the levels of prevailing services prices. In addition to that, the system of government purchases has been issued, and the implementation of its projects and work, which treated the new aspects of the work resulted from rising prices and the needs of economic development plans, through expanding the

7 admin. Competences. The General Auditing Bureau mentioned in its letter No /6 Q m dated its opinion containing "non-applicability of the provisions of the government purchasing system on the authority, which its Board of Directors has the right to amend its financial regulation according to its law, in order to help these rules to be applied. Therefore, the following articles have been amended: 11, 14, 15, 16, 18, 25 of the Financial Regulations of the authority, in the framework of Articles 12 of the authority Statute and, 27 of the Financial Regulations of the authority. Chapter I Definitions Article (1): For the purpose of this regulation, the following terms shall have the meanings assigned to them, unless the context indicates otherwise: A) Authority: Saudi Arabian Standards and Metrology Organization. B) Board of Directors: The Board of Directors of the Saudi Arabian Standards, specification and Metrology Organization. C) The Chairman of the Board: Chairman of the Board of Directors of the Saudi Arabian Standards Organization. D) Vice Chairman: Vice-Chairman of the Board of Directors of the Saudi Arabian Standards Organization. E) The Director-General: The Director General of Saudi Arabian Standards and Metrology Organization. F) Budget: The budget of the Saudi Arabian Standards and Metrolog Organization. Chapter II Budget, Accounts, disbursement procedures and receiving amounts. Article (2): The financial year of the Authority is the state's fiscal year.

8 Article (3): By the decision of the Director-General, a committee will be formed to prepare a draft budget for the next fiscal year. This resolution regulates the competences of reference of this committee and its procedures. The committee has to complete the preparation of the draft budget in a timely manner, taking into account the rule of the following article. Article (4): the Director-General to submit the draft budget to the Board of Directors for discussion and approval in preparation for submission to the competent authority in the Ministry of Finance and National Economy, no later than the deadline set by the Ministry of Finance. Article (5): If the budget is not adopted until the beginning of the fiscal year, the authority will continue to work with the previous budget within the listed appropriations, till the new budget would be adopted with the consideration that the reduced appropriations in the project, as they were actually reduced, and the new funds as if they were not included. Article (6): After the issuance of the Royal Decree, concerning the adoption of the budget, the allocated funds would be deposited at the Saudi Arabian Monetary Agency in Riyadh, a special account would be opened under the name of the authority, it is allowed, after the agreement with the Ministry of Finance, to withdraw an amount of this credit to be deposited in some local banks, with a special account of the authority, to spend for its requirements. Article (7): The Director-General will be responsible for issuing payment orders related to the authority. Article (8): Payment from the authority account would be done through issuing checks in favor of the beneficiary signed by the Director General and the Financial Officer. Article (9): During the correlation and payment, it should be taken into consideration the allocated funds for the chapters and items of the budget as much as possible, so that it does not resort to transfers among the chapters and items, only when it is needed and in accordance with the established powers.

9 Article (10): The transfers from chapter to chapter would be of the jurisdiction of the Chairman of Board of Directors or his deputy, and the transfers from item to item within one chapter shall be within the competence of the Director-General, and in all cases, it must be taken into account what is stipulated in the Royal Decree issued for the authority budget. Article (11): Putting an amount not more than one hundred thousand riyals determined by the Director-General, in the custody of the treasurer to be spent for necessary expenses required by the nature of the business, and to be spent in accordance with the rules laid down by the Board of Directors, and it is allowed to put a temporary amount in the custody of one of the authority employees, to be appointed by the Director-General and under its supervision, this amount will not exceed the employee's salary for three months, in order to spend it for urgent cash transactions that do not exceed one thousand riyals (1000) each, the employee will be asked about this custody at the end of every three months or when the amount is finished, whichever comes first. Article (12): The chairman of the Board of Directors or his deputy may deduct expenses or due amount related to previous fiscal year from the current budget after the submission of the reasons and justifications for that, and this provision shall apply to cases of exclusion from income. Article (13): The due amounts for the authority may be received through cash or by a certified check drawn on a licensed bank in the Kingdom. Chapter III Procurement, Contracting on Business, Services and Sales Article (14): The purchase of items and contracting on works and services required for the authority will be through the following ways: A) By tender through advertising in a newspaper at least twice, with a period of a week between them, or at direct invitation through official letters to those who are interested in the tender, and bidding, in this case, to be submitted in sealed envelopes to be opened in the time specified by advertising or to be included in the letter of invitation.

10 B) the method of opened offers for equipment of various types through selecting three acceptable types that meet the required purpose, the Saudi licensed agents of such equipment will be called to submit an open offer after notifying them with the required specifications within a period not less than three days, If these equipment have no official agent in the Kingdom, they may be purchased from dealers or manufacturers. C) The method of direct purchase, which the item or product is obtained directly from the market. Article (15): The Director General will have the authority to contract in the two types of bidding with the acceptance of the sole offer which does not exceed three million riyals, and in the method of opened offers with a value not exceeding a million riyals, and through direct purchase with a value not exceeding five hundred thousand riyals, any amount exceeds that shall be approved by the Chairman of the Board of Directors or the one whom he will authorize. Article (16) The Director General will establish special committees to take action regarding the two types of bids, and the opened offers for purchase and contracting of works and services within the scope of the authority of the Director-General, the authority management determines the competences of this committee and the procedures and rules that must be followed, the competences of the chairman of the Board of Directors in this regard, the chairman himself will decides what he sees appropriate at that time. Article (17): The authority Director General has the right to form committees or assign individuals to contract through direct purchasing, according to the need, taking into account the provisions of Article (15) of this Regulation. Article (18): The sale of assets, items and samples owned by the Authority, whether in excess of its need, corrupted, or there is possibility to be damaged or unusable or out dated to be used, according to government procurement system.

11 Chapter IV Warehouses Article (19): The input and output items and objects to and from warehouses of the authority in accordance with the instructions, rules and procedures contained in the accounting system of the authority. Chapter V Final accounts and auditing Article (20): The accounts of the authority will be closed at the end of the fiscal year, the concerned department will prepare the final account and portray its financial position, no later than the end of the third month of the new fiscal year for presentation to the Board of Directors with the auditor's report. Article (21): The Board of Directors will appoint comptroller or more of Chartered Accountants licensed to work in the Kingdom, and they will have the rights of auditor in joint stock companies, and they have its duties, and in case of multiple comptrollers, they will be jointly liable, and the Board of Directors will determine the reward of the comptroller or comptrollers. Article (22): The auditor or his deputy, has the right all the time to have access to all the books of the Authority and its records and documents and to request the data and explanations, needed to perform his task, and has also the right to verify the assets of the Authority and its obligations, and the authority management should enable the auditor to perform his duty and provide all the facilities to him in this regards.

12 Article (23): The auditor has to review the final accounts of the Authority and portray its financial position and to submit a report thereon to the Board of Directors during a period not after the third month of the new fiscal year. Chapter VI General and Final Provisions Article (24): The Director-General will set up an integrated accounting system for the authority for controlling and regulating expenditure and payment operations, collection and warehouses such as designing books, records and accounting documents, forms, and how Maintained etc. this system will be presented to the Board of Directors before its application. Article (25): The Director-General is allowed, after the approval of the chairman of the Board of Directors, to authorize an employee of some of his competences, as required by work, and commensurate with the employee career, this is to be done through written decision including the competences assigned, and the name of the employee with his position and period of authorization. Article (26): The Board of Directors may exclude any of the provisions of this regulation and deciding on everything not provided for. Article (27): The Board of Directors has the power to amend the provisions of this Regulation in agreement with the Ministry of Finance and National Economy. Article (28): The Director-General shall issue the decisions and instructions for the implementation of this regulation. Article (29): This Regulation shall be enforced as from the date of its issuance.

13 Council of Ministers Resolution No. (79) dated 04/10/1427 The Council of Ministers After reviewing the file received from the Divan of the Cabinet Presidency No / B dated 01/27/1427, containing a telegram of His Royal Highness Crown Prince, Deputy Prime Minister and Minister of Defense and Aviation and Inspector General, the Chairman of the Ministerial Committee for Administrative Organization No. 31/04/16 / 97/6 dated , the accompanying the record (Fifty seventh) of the Ministerial Committee for Administrative Organization, dated 01/01/1427 H, to study the proposal of the independence of the Specifications, standards and Quality Control sector. After reviewing the record mentioned above. And after reviewing the system of the Saudi Arabian Standards, Metrology and Quality Organization, issued by Royal Decree No. (M / 10) dated 03/03/1392. After viewing paragraph (2) of Article (twenty-fourth) of the Council of Ministers law, issued by the Royal Order No. (A / 13) dated 03/03/1414. And after reviewing the Decrees of the Cabinet No. (94) dated 30/06/1417, No. (61) dated 03/04/1424. And after reviewing the recommendation of the General Committee of the Council of Ministers No. (91) dated 27/02/1427. Decree the following: First: The correlation of the Saudi Arabian Standards, Metrology and Quality Organization will be with the Minister of Commerce and Industry. Second: The Board of Directors will be reconstituted, for which a decree of the Cabinet was issued No. (94) dated 30/06/1417, No. (61) dated 03/04/1424, and to be as per the following: 1.Minister of Commerce and Industry, president 2. Director General of the authority, Vice-President

14 3. A representative of the Ministry of Defense and Aviation and Inspector General (General Presidency of Meteorology and Environment Protection), member 4. Representative of the Ministry of Municipal and Rural Affairs, member 5. A representative of the Ministry of Interior (General Directorate of Traffic), member 6. A representative of the Ministry of Commerce and Industry, member 7. A representative of the Ministry of Water and Electricity, member 8. A representative of the Ministry of Finance (Customs Department), members 9. A representative of the Ministry of Agriculture, member 10. A representative of the Ministry of Health, member 11. A representative of the General Authority for Food and Drugs, member 12. Three of the businessmen, to be nominated by the Minister of Commerce and Industry in coordination with the President of the Council of Chambers of Commerce and Industry, and be appointed by a decision of the Cabinet, the rank of the representatives of governmental bodies in the Board of Directors, should not be less than (XIV) or equivalent. Third: The existing representatives of the businessmen will continue their membership of the Board of Directors of the Saudi Arabian Standards, Metrology and Quality Organization until the appointment of the members instead of them in accordance with what is stated in paragraph (12) of item (ii) of this Decree. Prime Minister Council of Ministers Decree No. 216 dated 17/06/1431 for the approval of the law of Saudi Standards, Metrology and Quality Organization The Council of Ministers Having examined the file received from the divan of the Cabinet Presidency No / b dated 27/03/1431, Containing a letter of His Excellency the President of Experts Bureau at the Council of Ministers No. 838, dated 03/16/1431, regarding the draft organization of Saudi Standards, Metrology and Quality organization.

15 After examining the paragraph (2) of Article (24 / of the cabinet law issued by the Royal Order No. (A / 13) dated 03/03/1414. After examining the law of the Saudi Arabian Standards, Metrology and Quality Organization, issued by Royal Decree No. (M / 10) dated 03/03/1392. Having examined the Council of Ministers Decree No. (61) dated 02/28/1430. Having examined the record of the Ministerial Committee for Administrative Organization No. (106) dated Having examined the record number (125) dated 03/16/1431, prepared in the Experts Bureau at Council of Ministers. Having examined the Memorandum No. (126) dated 16/03/1431, prepared in the Experts Bureau at the Council of Ministers, Having considered the recommendation of the General Committee of the Council of Ministers No. (369) dated 05/05/1431. Decree the following: First: Approving the law of the Saudi Standards, Metrology and Quality Organization as per the attached form. Second: the Saudi Standards, Metrology and Quality organization will prepare a draft law includes the tasks and functions assigned to it along the lines of similar authorities in the Kingdom. To be submitted in accordance with the statutory procedures. Third: The continuation of the current Board of Directors of Saudi Standards, Metrology and Quality organization, until appointing a new board, according to the provisions of the regulation referred to in item (i) of this Decree.

16 Fourth: Continue working with the current regulations and other decisions until the adoption and issuing of new regulations under the mentioned law. Text of the Law Article I: The following words and phrases shall have the meanings set out in front of them, unless the context requires otherwise. Authority: Saudi Standards, Metrology and Quality Organization. Board: The Board of Directors of the authority. Law: law of the authority. Minister: Minister of Commerce and Industry. Chairman: Chairman of the Board. Governor: Governor of the authority. Member: member of the Board. Article II: Saudi Standards, Metrology and Quality Organization is a public body with independent legal personality, enjoys financial and administrative independence, and is associated with the Minister of Commerce and Industry, and its headquarter is in the city of Riyadh, and has a spread of branches or offices in the regions of the Kingdom as needed. Article III: The Authority aims, within the scope of its competences, to achieve the following: 1 Issuing Saudi Standard Specification, systems and guides of quality and to provide conformity, compatible with the world standard specifications, and meets the requirements of the WTO Agreement in this field, and to be compatible with Islamic law and fulfilling the interests of the Kingdom. 2 - Providing health and environmental protection and public safety, through the technical specifications and regulations approved by the Authority. 3 - To ensure the quality of national products through the adoption of appropriate standard specifications that enable the Saudi national products to compete in domestic and international markets, and work to protect the Kingdom of fake and counterfeit goods.

17 Article IV: Without prejudice to the functions of other parties, stipulated officially, and in particular tasks relating to products and materials assigned jurisdiction to the General Authority for Food and Drugs, the authority begins the task of organization, execution and supervision concerning specifications, standards and quality, including the development and adoption of Saudi standards for commodities, products and services, instrumentation and calibration, as well the procedures for conformity assessment and granting of certificates and accreditation of laboratories and the granting of certification parties for quality systems, and identification of methods of taking samples, testing methods, technical inspection and quality systems, and to identify the foundations and conditions of implementation of the technical classifications and engineering drawings, terminology, definitions, symbols, and other things that issued by the Board in the field of specifications and standards, calibration and quality, for its tasks it has the following : 1 Publishing the adapted Standard specifications in the ways it wishes, these standards will not be valid, only after being advertised in the Official Gazette. 2 - To issue regulations of conformity assessment procedures for goods, products and services in accordance with the standards adopted. 3 - To issue the regulations for licensing procedures for the quality mark for domestic and imported products conforming to the national standards adopted, and prevent using such rights, and the suspension of those regulations. 4 - To issue regulations procedures for granting certificates of registration of quality systems and environmental and safety systems and other systems adopted by the authority and the application of those regulations. 5 - Granting the quality marks for the products, the quality mark may be granted to products that fall within the jurisdiction of the General Authority for Food and Drugs, that can be awarded a quality mark after its approval. 6 - To raise awareness for the standard specifications, quality and doing conformity assessment procedures, measurement and calibration. 7 - Coordinating the work and quality standards and doing conformity assessment procedures, measurement and calibration in the Kingdom and the mutual recognition with counterparts in other countries.

18 8 - Application of the national system of measurement and calibration in the Kingdom. 9 - Make sure of the application of the Saudi standards and the regulation of conformity assessment procedures adopted by the authority in coordination with related bodies Granting certificates of conformity to local products subject for export To do all the work of accreditation, including the accreditation of laboratories and certification bodies for quality systems Create a database in the work field of the authority and exchange of information with local, regional and international bodies Conducting research and providing advisory services relating to their work and activities and cooperation with companies and agencies, universities and scientific research centers and other entities engaged in similar acts of their work Review the control rules and regulations related to the work of the authority, develop and propose the necessary amendments, to keep pace with the requirements of quality and safety and to be forwarded to the competent authorities for examination and issuing according to the official methods To carry out the job of notification and inquiry center for the Convention of Technical Trade Barriers of the WTO To participate in regional and international organizations relating to specifications and standards, calibration and quality and represent the Kingdom in these organizations. Article V: The application of standards is mandatory, and it is allowed by a decision of the Board to apply certain Saudi standard specifications or some categories of them optionally. The authority takes into account during the preparation and adoption of the Saudi optional standards, not to prejudice one or more of the following considerations: 1 - Maintaining the safety and public health. 2 - Consumer protection. 3 - To ensure the public interest. Article VI: 1 - Taking into account the provisions of Article (IV) of this law, the authority is considered the reference in the Kingdom in all aspects of the standard specifications, and carrying out the procedures for conformity assessment, and giving quality marks, measurement and calibration,

19 and all the governmental and private sectors should commit to the Saudi standard specifications in all their purchases and work. 2 - No one shall be allowed to write a phrase or a declaration or a slogan to the effect that a product is identical to the Saudi standard specifications without the written consent of the authority. 3 - It is not permissible to use measurement or calibration units other than contained in the Saudi Standards and the National System of measurement and calibration. Article VII: The National Center for measurement and calibration, belonging to the authority is the only National reference for verification of the accuracy of measuring and testing devices used in the industrial and service enterprises in all sectors, and granting the calibration certification for that. Article VIII: The Authority would have a Board of Directors chaired by the Minister of Commerce and Industry and to be composed as follows: Governor, Vice-Chairman A representative of the Ministry of Defense and Aviation and Inspector General (General Presidency of Meteorology and Environment Protection), member Representative of the Ministry of Municipal and Rural Affairs, member Representative of the Ministry of the Interior (General Directorate of Traffic), member Representative of the Ministry of Commerce and Industry, member A representative of the Ministry of Water and Electricity, member Representative of the Ministry of Finance (Customs Department), member Representative of the Ministry of Agriculture, member Representative of the Ministry of Health, member A representative of the General Authority for Food and Drugs, member Three of the businessmen, nominated by the President after coordination with the Chairman of the Board of Directors of Saudi Chambers of Commerce and Industry, and to be appointed by a decision of the Cabinet, the representatives of government agencies ranks in the Board should not be less than (14th ) or equivalent.

20 Article IX: The Board of Directors is the competent authority to manage the affairs of the authority, and to conduct its affairs, and take all necessary decisions to achieve its objectives within the limits of the provisions of this regulation, particularly the following: 1 - Putting the general policy of the Authority and monitor its implementation. 2 - Adoption of the organization chart of the authority, as a prelude to forward that according to the statutory procedures followed. 3 - Issuing decisions and implementing regulations for the functioning of the authority. 4 - Approving of the Saudi Arabian Standards in its final form and methods of implementation. 5 - To adopt regulations for the work provided by the Authority to others. 6 To appoint an auditor (or more) for the authority accounts, and determine his fees, and approving his reports. 7 - Approving of technical cooperation programs between the authority and the various standardization bodies. 8 - Issuing administrative regulations to be followed by the Authority, and the issuance of financial regulations, in agreement with the Ministry of Finance. 9 Considering the periodic reports to be submitted for the functioning of the authority. 10 Approving the draft budget of the authority, and its final account, and the auditor's report, the annual report, as a prelude to forward that according to the statutory procedures followed. 11 Issuing the necessary regulations for the implementation of this law. 12 Determining the fees for the services provided by the Authority in its competences, to include the revenue of these services in a separate account, to be spent for purposes determined by the Board. 13 Approving grants, subsidies, gifts and assistance, bequests and endowments in accordance with the rules in force The Board may constitute committees permanently or temporarily from among its members or others, and entrusts them with tasks by the Board, and determines for each committee, the chairman and the members and its competences, and it has the right to ask the assistance of others to perform the task assigned to it The Board may assign some of his powers to the governor in writing. Article X:

21 1 - The Board would meet once every four months upon the invitation of the President, and to be called into session whenever requested that half of the members of the Board at least, the invitation must include a statement of the agenda. The meeting of the Board will not be valid unless attended by a majority of members, including the President, and take decisions by a majority vote of those present, and when a tie, the chairman will have the casting vote. 2 - The meetings of the Board will be held at the headquarters of the authority, and when needed, it could be held at any place in the Kingdom by a decision of the Board. 3 - The Board may, after approval of the President, allow those who are requested to attend the meetings of the Board to provide information, and to clarify something without having the right to vote. 4 - No member may delegate another person to vote in his absence, and the member may record his objection and the reasons for the objection in the record of the Board's decisions. 5 - It is not permissible for a member to disclose any secrets of the authority because of his membership in the Board. Article XI: The authority shall have a governor of the Excellent Rank appointed upon nomination by the President, who will be responsible for executive management of the authority, and his responsibilities are contained within the limits provided in this law, and what taken of decision, and he will exercise the following functions: 1 - Proposing plans and programs of the Authority and supervise its implementation after the approval of the Board. 2 - Supervising the preparation of the draft budget of the authority, and the draft final account, the annual report for presentation to the Council. 3 Allow payment within the limits of the budget appropriations. 4 - To propose draft regulations and executive decisions for the functioning of the authority and to be presented to the Board. 5 - Supervise the staff of the authority and its staff in accordance with the powers granted to him and included in the regulations. 6 - Follow-up to the implementation of the decisions issued by the Board. 7 - To submit periodic reports to the Board on the work of the Commission, and to prepare an annual report on the activities of the authority. 8 - Appointment of workers in the authority according to the organizing rules.

22 9 Representing the Authority before the judicial authorities and other governmental department, and has the right to delegate some of the authority officials. 10 Approving the staff of the Commission for scholarship and for study and training at home and abroad, according to the organizing rules Approving the participation of the staff of the Commission in conferences, seminars, programs and visits related to the objectives and competence of the Authority, at home and abroad, according to the rules and regulations. 12 Approving holding of conferences, seminars and meetings related to the competence of the authority in accordance with the organizing regulations and instructions. 13 Other tasks assigned by the Board. The Governor may assign some of his powers to the officials of the authority in writing and for a certain period. Article XII: The Authority shall have an independent annual budget, is issued in accordance with arrangements for issuance of the general budget of the state. The fiscal year of the Authority is the same of the state's. Article XIII: The financial resources of the authority consist of the following: 1 - Appropriations allocated in the state budget. 2 - Grants, subsidies, gifts, bequests and endowments and aid accepted by the authority in accordance with the rules laid down by the Board. 3 - The financial revenues against the offered services such as the standard specifications, quality list, conformity procedures, measurement and calibration work, publications and bulletins, and what given of services in the area of its jurisdiction in accordance with their own regulations approved by the Board. 4 - What the authority gets from the Revenue against movable and immovable assets. 5 - Other benefits that the Board decides to add to the authority funds. Article XIV: Without prejudice to the authority of the General Auditing Bureau in monitoring the accounts of the authority, the Board shall appoint an auditor (or more) of the natural or legal persons

23 who are eligible for Auditors, the Board will determined his reward. If the number of auditors has been increased, they will be jointly liable and the auditor's report will be forwarded to the Board and one copy to be sent to the public pleading Bureau officer. Article XV: The authority will forward its final statement to the Council of Ministers within three months from the date of the end of the fiscal year, and will forward as well an annual report on its work to the President of the Council of Ministers within ninety days from the expiration of the fiscal year, the General Auditing Bureau will be provided with a copy of the final accounts of the Authority. Article XVI: This law replaces the system of the Saudi Arabian Standards, Metrology and Quality Organization, issued by Royal Decree No. (M / 10) dated 03/03/1392, and takes effect from the date of its publication in the Official Gazette

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