Regulation Governing the Activity of Selling Sea Travel Tickets

Chapter 1: Preliminary Provisions

Article 1: Definitions

  • 1. Authority: The Transport General Authority.

  • 2. Law: The Maritime Commercial Law issued by Royal Decree No. (M/33) dated 1440/04/05 AH.

  • 3. Maritime Authority: The Transport General Authority represented by the Maritime Transport Agency or one of its branches or its representatives or those authorized by it to perform any work on its behalf.

  • 4. License: The document issued by the Maritime Authority allowing the establishment to engage in the activity in accordance with the provisions of this regulation.

  • 5. Activity: The practice of selling maritime travel tickets.

  • 6. Vessel: Any floating establishment prepared for operation in maritime navigation on a regular basis in accordance with the licensed activity of the establishment, and the necessary accessories of the vessel for its exploitation are considered part of it.

  • 7. Establishment: The legal person (individual establishment or company) licensed to engage in the activity.

  • 8. Activity Location (Head Office): The general head office for conducting the activity.

  • 9. Branch: A location for conducting the activity that operates under the supervision of the head office.

  • 10. Inspector: The person assigned by the Maritime Authority to ensure the establishment's compliance with the provisions of this regulation.

  • 11. Sea Travel Ticket: A document that proves a transport contract (passenger) by sea from a specific port to another port between the carrier and the passenger.

  • 12. Contract: A contract made between the establishment and the carrier that allows the establishment to sell passenger travel tickets by sea in the name of the carrier.

Article 2: The Objective of the Regulation

  • The aim of this Regulation is to establish the regulatory framework for issuing licenses for the activity of selling marine travel tickets, renewing them, waiving them, suspending them, and canceling them, as well as defining the obligations of the establishment arising from the license, and overseeing those engaged in the activity of selling marine travel tickets.

Article 3: Scope of Application

  • Without prejudice to the regulations and agreements in force in the Kingdom, the provisions of this Regulation shall apply to those engaged in the activity of selling marine travel tickets.

Chapter 2: License

Article 4: Procedures for Issuing the License

  • The maritime authority or its delegated departments shall issue the license for the establishment after following the procedures below:

    • 1. Submission of an application from the establishment through the approved channels of the authority, accompanied by the following:

      • A- A copy of the valid commercial register.

      • B- A valid Zakat and Income Certificate (if more than one year has passed since the commercial register was issued).

      • C- A valid Social Insurance Certificate.

      • D- The company's Articles of Incorporation if the establishment is a company.

      • E- A valid license from the Ministry of Investment for foreign companies or institutions.

      • F- Any other documents required by the maritime authority.

  • 2. The license is issued for a period of three years according to the prepared model after paying the prescribed fees and penalties, if any, and in the case of one or more branches of the establishment, a branch license shall be issued for each branch.

Article 5: Renewal of License

  • 1. The License expires upon the end of its term.

  • 2. The establishment may not engage in the activity after the expiration of the License until it is renewed.

  • 3. The establishment's request to renew the License shall not be accepted after the expiration date if it exceeds thirty days, and the maritime authority may grant the establishment a new License upon its request in accordance with the provisions of this Regulation.

  • 4. The License may be renewed for a similar duration or durations as the License term in accordance with the needs of maritime transport or what is required by the Public interest after taking the following procedures:

    • A- Submission of the renewal application by the establishment using the approved form.

    • B- Submission of the renewal application within (90) ninety days prior to the expiration date.

    • C- Fulfillment of the conditions stated in this Regulation.

    • D- Payment of the applicable fees and financial penalties, if any.

Article 6: Waiver of the License or Delegation to Others on Its Behalf

  • 1. The licensed establishment may not delegate others to practice the activity on its behalf without the approval of the maritime authority.

  • 2. The establishment may waive the license to others under the following conditions:

    • A- Obtaining prior approval from the maritime authority for the waiver.

    • B- The assignee must meet all the conditions required for licensing to practice the activity.

    • C- Payment of any due fees and financial penalties, if any, and providing proof of payment.

    • D- The establishment remains responsible for the activity and its employees and for fulfilling its obligations towards others until the transfer of the license to the assignee is completed.

    • E- The license must be valid at the time of submitting the waiver request.

Article 7: Amendment of the Legal Entity of the Establishment

  • The establishment must obtain prior approval from the maritime authority for any modification to the legal entity of the licensed establishment.

Article 8: Revocation of License

  • Without prejudice to the penalties stipulated in the Regulation, the maritime authority may revoke the License in the following cases:

    • 1. When the establishment provides incorrect or invalid data or documents to obtain the License.

    • 2. When the establishment loses any of the conditions and documents of the License stipulated in this Regulation, the maritime authority may suspend the License and notify the licensee thereof until this condition is completed or corrected. If the condition is not completed or corrected within thirty (30) days - or more as specified in the Notice - from the date of the notice, the maritime authority may revoke the License.

    • 3. Upon the death of the owner of the individual establishment. The heirs of the deceased owner of the individual establishment may request to correct the legal status of the establishment to continue its activity within (90) days from the date of death, provided that the legal agent undertakes to comply with the provisions of this Regulation during the correction period.

    • 4. Upon the expiration of the Commercial Register of the establishment or its cancellation.

    • 5. At the request of the licensee.

    • 6. Upon the bankruptcy of the establishment or the issuance of an order to place it under guardianship or liquidation.

    • 7. The waiver of the License without the approval of the maritime authority.

    • 8. A decision issued by the maritime authority based on what is required by the Public interest to revoke the activity.

    • 9. Modifying the entity of the establishment without the prior approval of the maritime authority.

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