Article 23 of the Saudi General Warehouses Law
المادة 23 من نظام الإيداع في المخازن العامة
The article punishes operating a general warehouse without a license with up to three years' imprisonment and a fine of SAR 5,000 to 1,000,000, and other violations and disclosure of secrets with up to three months' imprisonment and a fine of up to SAR 100,000.
Official text (Arabic)
This article has not been amended since the law was issued.
أ- يعاقب بالسجن لمدة لا تزيد على ثلاث سنوات وبغرامة لا تقل عن خمسة آلاف ريال ولا تزيد على مليون ريال أو بإحدى هاتين العقوبتين ـ كل من زاول هذا النشاط دون الحصول على الترخيص من الجهات المشار إليها في المادة الثالثة من هذا النظام.
ب- يعاقب كل من خالف أحكام هذا النظام ـ فيما عدا ما ورد في الفقرة (أ) من هذه المادة ـ بالسجن لمدة لا تزيد على ثلاثة أشهر، وبغرامة لا تزيد على مائة ألف ريال، أو بإحدى هاتين العقوبتين، وتضاعف العقوبة في حالة العود.
ج- يعاقب بذات العقوبة الخازن أو أي من تابعيه إذا أفشى سرا يتعلق بالبضائع المودعة فيما عدا الأحوال التي يصرح بها النظام، ويجوز في حالة الحكم بالإدانة في مخالفة إنشاء أو استثمار مخزن عام خلافا لأحكام هذا النظام؛ القضاء بتصفية المخزن، وتعيين من يقوم بالتصفية وبيان اختصاصاته.
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 23 explained in plain English
This article sets out the penalties under the Law, divided into three paragraphs:
Paragraph (a): carrying on the activity without a license
Anyone who carries on the activity of a general warehouse without obtaining the license from the bodies referred to in Article 3, that is, the city's amanah or municipality for the preliminary establishment license, and the Minister of Commerce or his delegate for the license to carry on the activity, is punished by:
- imprisonment for a period not exceeding three years,
- and a fine of not less than SAR 5,000 and not more than SAR 1,000,000,
- or one of these two penalties.
Paragraph (b): other violations
Anyone who violates the provisions of the Law, other than what is covered in paragraph (a), is punished by imprisonment for a period not exceeding three months and a fine not exceeding SAR 100,000, or one of them. The penalty is doubled in case of repetition.
Paragraph (c): disclosure of secrets and liquidation
- The warehouse keeper or any of his subordinates is punished with the same penalty as in paragraph (b) if he discloses a secret relating to the deposited goods, except in the cases the Law permits.
- On conviction for establishing or operating a general warehouse contrary to the provisions of the Law, the warehouse may be ordered to be liquidated, with a person appointed to carry out the liquidation and his powers stated.
Article 24 provides that the Board of Grievances has jurisdiction to decide disputes arising from the application of the provisions of the Law. A person facing an accusation of violating this Law is best advised to consult a lawyer specializing in criminal or commercial matters.
Practical example
Salem opened a warehouse in Dammam where he keeps merchants' goods for a fee and issues them receipts, without obtaining a license to carry on the activity. Under this article he may be punished with imprisonment for a period not exceeding three years and a fine of not less than SAR 5,000 and not more than SAR 1,000,000, or one of them, and on his conviction the warehouse may be ordered to be liquidated.
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 23 of the Saudi General Warehouses Law
What is the penalty for operating a general warehouse without a license?
Imprisonment for a period not exceeding three years and a fine of not less than SAR 5,000 and not more than SAR 1,000,000, or one of these two penalties.
What is the penalty for disclosing the secrets of deposited goods?
The warehouse keeper or any of his subordinates who discloses a secret relating to the deposited goods, except in the cases the Law permits, is punished by imprisonment for a period not exceeding three months and a fine not exceeding SAR 100,000, or one of them.
Can a violating general warehouse be liquidated?
Yes. On conviction for establishing or operating a general warehouse contrary to the provisions of the Law, the warehouse may be ordered to be liquidated and a person appointed to carry out the liquidation.
Is the penalty doubled if the violation is repeated?
Yes. Paragraph (b) provides that the penalty is doubled in case of repetition.
Articles this article refers to
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.