Implementing Regulation for Mediation Activities in Cargo Transportation

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  • Board of Directors Decision of the Transport General Authority No. (6/3T R/ 4/2025) dated 1447/03/01 AH
  • The Board of Directors of the Transport General Authority
  • Based on the powers granted to it by the law
  • After reviewing the Land Transport Law issued by Royal Decree No. (M/188) dated 1446/8/24 AH.
  • After reviewing the Regulation of the Transport General Authority issued by the Council of Ministers Decision No. (323) dated 1434/9/14 AH, and its amendments.
  • After deliberation, the Board decided by circulation as follows:
  • First: Approving the Implementing Regulation for Mediation Activities in Freight Transport according to the attached form.
  • Second: Approving the mechanism for amending the status of land transport establishments in accordance with the provisions of the Land Transport Law and the Implementing Regulation for Mediation Activities in Freight Transport according to the attached form.
  • Third: The provisions of the regulation and the mechanism referred to in items (First) and (Second) of this decision shall apply from the date of their publication in the Official Gazette.
  • And Allah is the Grantor of success.

Chapter 1: Preliminary Provisions

Article 1

  • The words and phrases contained in this Regulation shall have the meanings assigned to them in the Law and this Regulation, unless the context requires otherwise:

    • 1- Law: The Land Transport Law issued by Royal Decree No. (M/188) dated 24/8/1446 AH.
    • 2- Regulation: The Implementing Regulation for Mediation Activities in Freight Transport.
    • 3- Activities: The mediation activity in freight transport and the electronic mediation activity in freight transport.
    • 4- Mediation Activity in Freight Transport: Arranging the services provided in freight transport activities between the parties benefiting from it, including mediation through electronic applications.
    • 5- Electronic Mediation Activity in Freight Transport: Arranging the services provided in freight transport activities between the parties benefiting from it exclusively through the technical system, and it is considered a sub-activity under the mediation activity in freight transport.
    • 6- Technical System: A website or application of the service provider designed to operate on smart phone systems, computers, or any other systems.
    • 7- Establishment: Any legal entity enjoying full legal capacity.
    • 8- License: An official document issued by the Authority permitting the establishment to practice one of the activities contained in this Regulation.
    • 9- Service Provider: The person licensed by the Authority to practice one of the activities.
    • 10- Carrier: The person who performs the transport operation using their own means of transport personally or by proxy and bears the responsibility of the transport contract.
    • 11- Means of Transport: The media or tools used to transport goods from one place to another, including all land, sea, air, and rail means that enable the transport of goods.
    • 12- Sender: The person contracting with the service provider to transport goods to the consignee.
    • 13- Consignee: The person to whom the goods are sent.
    • 14- Beneficiary: The party contracting with the service provider in the activities to perform mediation in freight transport.
    • 15- Premises: The place where the mediation activity in freight transport is practiced in accordance with the provisions of this Regulation.
    • 16- Goods: Materials, equipment, merchandise, animals, food, or others transported by means of transport.
    • 17- Hazardous Materials: Materials, goods, or waste that may pose a danger to living organisms, infrastructure, property, or the environment, in accordance with the applicable laws, regulations, or international agreements.
    • 18- Transport Contract: The contract concluded between the service provider and the carrier or their proxy, stipulating the conditions under which the goods are transported.
    • 19- Transport Document: A document issued pursuant to the transport contract and considered proof of the carrier’s receipt of the goods subject to transport in the condition stated therein for delivery to the party specified in the transport contract in the same condition.
    • 20- Shipping Contract: The contract concluded between the beneficiary and the service provider or their proxy, which specifies the conditions under which the service is provided and the obligations of the relevant parties.
    • 21- Shipping Document: A document issued pursuant to the shipping contract and considered proof of the service provider’s or their delegate’s receipt of the goods subject to shipping in the condition stated therein for delivery to the party specified in the shipping contract in the same condition.
    • 22- Information Annex: An additional document for consolidated shipping attached to the shipping document issued by the service provider, containing additional explanatory details about the shipping process that may not be included in the shipping document.
    • 23- Inspector: The person assigned the authority of inspection, supervision, and violation control of the Law or Regulation, appointed by a decision of the President.
    • 24- Authority’s Electronic Platform: The electronic platform approved by the Authority, which enables it to access the establishment’s data, the transport process, and its parties.
    • 25- Financial Consideration: The amount determined by the Authority in return for any licenses, documents, services, and works it provides pursuant to the provisions of the Law or Regulation.
    • 26- Financial Penalties: The amount of money the violator is obligated to pay to the Authority as a result of violating any provisions of the Law or the Violations and Penalties Schedule.
    • 27- Committee: The committee formed by a decision of the President in accordance with the provisions of the Law.

Article 2

  • First: The regulation aims to organize the mediation activity in freight transport and the electronic mediation activity in freight transport, develop their services, advance them, and encourage investment in them - in coordination with the relevant authorities - in a manner consistent with the economic and social development goals in the Kingdom, while taking into account environmental aspects and security and safety requirements.

  • Second: Without prejudice to the relevant systems and their equivalents and the international agreements to which the Kingdom is a party:

    • 1- The provisions of this regulation apply to practitioners of the mediation activity in freight transport and the electronic mediation activity in freight transport, which are carried out or partially carried out within the territory of the Kingdom.
    • 2- The provisions of this regulation apply to service providers from establishments.
    • 3- The provisions of this regulation do not apply to the delivery activity subject to the provisions of the Implementing Regulation for the delivery activity.
    • 4- It is prohibited for any establishment to practice any of the activities except after obtaining the necessary license from the Authority, or to continue practicing any of the activities after the license expires, is canceled, or during its suspension period. The prohibition includes all preparatory work for any person to practice any of the activities without a license, including inviting persons, calling them, pursuing them, obstructing them, gathering, or roaming in places where goods are located.
  • Third: An independent license is issued for each activity in accordance with the provisions of this regulation. The mediation activities in freight transport are divided as follows:

    • 1- Mediation activity in freight transport.
    • 2- Electronic mediation activity in freight transport.

Chapter 2: License

Article 3

  • It is a condition for the establishment to obtain a license to practice mediation activity in freight transport to fulfill the following requirements:

    • 1- An application submitted by the establishment through the Authority’s approved channels.
    • 2- A valid commercial register for the establishment that includes the mediation activity in freight transport.
    • 3- A valid social insurance certificate.
    • 4- A valid Zakat and income certificate (if more than one fiscal year has passed since the commercial register).
    • 5- Providing a center to practice the activity in the city of the license according to the technical specifications and requirements issued by the relevant competent authorities.
    • 6- In case the establishment wishes to practice mediation activity in freight transport through a technical system, the establishment is obligated to provide the technical system according to the conditions determined by the Authority and the competent authorities, in addition to linking the technical system and ensuring its integration with the Authority’s approved electronic platform or any electronic systems determined by the Authority.
    • 7- Payment of the financial fee - if any -.
    • 8- Payment of financial penalties - if any -.
    • 9- Connection to the Authority’s electronic platform or any electronic systems determined by the Authority.
    • 10- The establishment classification certificate issued by the Small and Medium Enterprises General Authority.

Article 5

1- A restricted license is issued to the establishment upon submitting the license application, for a period of (90) days from the date of application submission, after fulfilling paragraph (2) of Article (Three). The establishment must fulfill all the conditions and requirements for issuing the license stated in Article (Three) within this period; otherwise, the restricted license shall be considered void, and the establishment shall not practice the mediation activity in freight transport during this period.

2- The license is issued in the name of the establishment, for a period of (3) years, after completing and fulfilling all the requirements stipulated in Article (Three) of this Regulation.

Article 6

  • First: Subject to Article (Three), the license shall be renewed for a similar period upon the request of the service provider in the freight mediation activity, in accordance with the following regulations:

    • 1- Submitting the renewal request and fulfilling all its conditions within the period preceding the license expiration date by (180) days, otherwise the request shall be considered void.
    • 2- Providing a valid Saudization certificate.
    • 3- Paying the financial fees and fines - if any -.
  • Second: The service provider is allowed to submit the renewal request and fulfill all its conditions within a period of (30) days from the license expiration date, provided that the activity is not practiced during that period, without prejudice to the Authority's right to impose the prescribed financial fine for the delay in renewing the license.

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