Article 166 of the Saudi GCC Unified Customs Law
المادة 166 من نظام قانون الجمارك الموحد لدول مجلس التعاون لدول الخليج العربية · الباب الرابع عشر: بيع البضائع
The Administration may sell seized goods that are perishable or affect the safety of others, and goods whose value is falling with a license, without awaiting the judgment, with notice to the owner and refund of the price if the judgment favors him.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - للإدارة أن تبيع البضائع المحجوزة القابلة للتلف أو النقص أو التسرب أو كانت في حالة من شأنها أن تؤثر في سلامة البضائع الأخرى والمنشآت الموجودة فيها .
ب - يجوز بترخيص من المدير العام أو من يفوضه بيع البضائع المحجوزة التي تتعرض لنقصان قيمتها بشكل ملحوظ . وتنفيذا لهذه المادة يتم البيع استنادا إلى محضر تثبت فيه حالة البضاعة والأسباب الداعية إلى بيعها، دون الحاجة إلى انتظار صدور الحكم من المحكمة المختصة ، على أن يشعر صاحب البضاعة بذلك ، فإذا صدر هذا الحكم فيما بعد وكان يقضي بإعادة هذه البضاعة إلى صاحبها دفع له ثمن البضاعة المباعة بعد اقتطاع أي ضريبة أو رسم مستحق عليها .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 166 explained in plain English
This article regulates the sale of seized goods before the judgment is issued, and includes two cases:
(a) Sale by decision of the Administration: the Administration may sell seized goods that are:
- Perishable or subject to loss or leakage.
- Or in a condition liable to affect the safety of other goods and facilities.
(b) Sale by license: seized goods that suffer a marked decrease in value may be sold with a license from the Director General or his delegate.
Procedures and safeguards:
- The sale is based on a report recording the condition of the goods and the reasons for selling them.
- There is no need to wait for the judgment of the competent court.
- The owner of the goods must be notified.
- If the judgment later returns the goods to their owner, he is paid the price of the goods sold after deducting any tax or fee due on them.
The apparent rationale: some goods, such as food, may spoil before the judgment, so selling them and keeping the price is more beneficial to everyone. The owner of the goods does not lose his right, since he recovers the price if the judgment is in his favor.
Article 165 provides for the enforcement of customs decisions and judgments against the property of the persons liable after they become final. Article 167 permits the Administration, after the period set by the Minister or the competent authority has expired, to sell goods stored in customs warehouses or located in yards and on quays or abandoned. A person whose seized goods were sold would do well to consult a lawyer specializing in customs and commercial cases.
Practical example
A shipment of fruit was seized at Jeddah port pending a decision on a violation. Because it is perishable, the Administration may sell it on the basis of a report recording its condition, with notice to its owner. If the court later rules that it be returned to him, he is paid its price after deducting the fees due.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 166 of the Saudi GCC Unified Customs Law
May customs sell seized goods before the judgment?
Yes, if they are perishable or subject to loss or leakage or affect the safety of others, or if they suffer a marked decrease in value, with a license from the Director General.
What does the owner of the goods get if the judgment is in his favor after their sale?
He is paid the price of the goods sold after deducting any tax or fee due on them.
Is the owner of the goods notified of the sale?
Yes. The owner of the goods must be notified.
More articles on Sale of Goods and Customs Limitation Periods
- Article 146
The Director General may hold and sell seized goods and means of transport when smugglers flee or cannot be traced; the proceeds go to the State if one year passes from the sale without the smugglers being caught.
للمدير العام التحفظ على البضائع ووسائط النقل المضبوطة في حالة فرار المهربين أو عدم الاستدلال عليهم، وبيعها طبقا لأحكام الباب الرابع عشر من هذا النظام " القانون
- Article 167
After the period set by the Minister or the competent authority expires, the Administration may sell goods stored in customs warehouses or located in yards and on quays or abandoned in customs areas.
للإدارة بعد انقضاء المهلة التي حددها الوزير أو الجهة المختصة أن تبيع البضائع التي خزنت في المستودعات الجمركية أو الموجودة على الساحات والأرصفة، أو تلك المتروكة
- Article 168
The Administration sells goods and means of transport that became customs property by confiscation, settlement or waiver, goods not withdrawn from warehouses in time, and goods of unknown owners after the holding period.
تقوم الإدارة ببيع ما يلي : 1 - البضائع والمواد ووسائط النقل التي أصبحت ملكا للجمارك نتيجة حكم بالمصادرة أو تسوية صلحية أو تنازل خطي . 2 - البضائع التي لم تسحب م
- Article 169
The Administration bears no responsibility for malfunction or damage to goods it sells under the Law, unless it is proved that it committed an obvious error in carrying out the sale.
لا تتحمل الإدارة أي مسؤولية عن العطل أو الضرر الذي يلحق بالبضائع التي تقوم ببيعها بموجب أحكام هذا النظام " القانون "، إلا إذا ثبت أنها ارتكبت خطأ بينا في إجراء
- Article 170
Customs sales are conducted by public auction under the rules of the Minister or the competent authority, and goods are sold free of fees and taxes except the brokerage commission, which the buyer bears.
أ - تجري عمليات البيع المنصوص عليها في هذا الباب بالمزاد العلني وفقا للشروط والقواعد التي تحدد بقرار من الوزير أو الجهة المختصة . ب - تباع البضائع والأشياء ووسا
- Article 171
Sale proceeds are distributed starting with customs duties and then expenses; the balance for goods permitted for import is held in trust and may be reclaimed within a year, the balance for prohibited goods goes to the Treasury, and smuggling cases follow Article 172.
أ - يوزع حاصل البيع وفقا للترتيب التالي : 1- الضرائب " الرسوم " الجمركية . 2 - نفقات عملية البيع . 3 - النفقات التي صرفتها الإدارة من أي نوع كانت . 4 - أجرة الن
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.