Implementing Regulation of the Law of Precious Metals and Gemstones

Article 1

  • The following words and terms - wherever they appear in this Regulation - shall have the meanings indicated next to each, unless the context requires otherwise:

  • Law: Law of Precious Metals and Gemstones.

  • Regulation: The Implementing Regulation of the Law.

  • Metals Precious: Gold, silver, and platinum, which may be in the form of manufactured items or coins withdrawn from circulation.

  • Manufactured Items: Everything made from precious metals in the form of pieces designed for use or decoration, including bullion, excluding precious metals in their original or semi-processed state.

  • Manufactured Items Gold: Any manufactured metal piece containing the minimum gold percentage specified in the Regulation.

  • Manufactured Items Silver: Any manufactured metal piece containing the minimum silver percentage specified in the Regulation.

  • Platinum Manufactured Items: Any manufactured metal piece containing the minimum platinum percentage specified in the Regulation.

  • Low-Grade Manufactured Items: Manufactured types of precious metals containing percentages less than those specified in the Regulation.

  • Clad Items: Any type of precious metal covered with adhesive sheets of another precious metal with a grade higher than the low grade.

  • Plated Items: Any type of precious metal covered with a layer of other precious metals.

  • Inlaid Items: Any type of precious metal to which another metal has been added or some parts covered for decorative purposes.

  • Gemstones: Diamonds, rubies, sapphires, emeralds, and natural pearls.

  • Semi-Precious Stones: Natural or cultured stones of value that are not classified as gemstones.

  • Valuable Manufactured Stones: Manufactured stones sharing the chemical, optical, and physical properties of their natural counterparts.

  • Imitation Stones: Industrial products made of glass or others, manufactured and shaped to imitate gemstones, semi-precious stones, and valuable manufactured stones, including imitation pearls and coral.

  • Stamping: Marking manufactured items with the Kingdom’s hallmark or an approved foreign hallmark, the trademark, and the legal grade; marking plated items with the word (Plated); marking clad items with the word (Clad) and a number indicating the percentage of pure precious metal contained, along with a statement of its type.

  • Card Definition: A document attached to manufactured items that cannot be stamped and to assembled, single, or mounted gemstones or semi-precious stones, including the type and grade of metal, trademark, or stone data such as name, weight, color, clarity grade, treatments, defects, and impurities if any - as applicable -.

  • Establishment: Any natural or legal person engaged in any activity related to the manufacture or trade of precious metals and gemstones.

  • Premises: Any location where precious metals or gemstones or semi-precious stones are displayed for sale, including websites and self-service devices.

  • Laboratory: A technical entity appointed by the Saudi Standards, Metrology and Quality Organization to conduct laboratory tests and analyses of precious metals and valuable stones, and to issue related test reports or certificates.

Article 2

  • 1- The activity of manufacturing precious metals and gemstones shall not be practiced except after obtaining an industrial license from the Ministry of Industry and Mineral Resources in accordance with the Unified Industrial Regulation Law for the GCC countries of 1427 AH, issued by Royal Decree No. (M/20) dated 4/4/1427 AH, its executive regulations, and according to the conditions and procedures approved by the Minister of Industry and Mineral Resources.

  • 2- It is a condition for practicing the activities of repairing, modifying, welding, polishing, or plating jewelry that the activity is registered in the commercial register of the establishment, and the Minister of Commerce shall determine the regulations for that.

  • 3- The sale of precious metals and gemstones may be conducted through the electronic website and self-service devices, and the Minister of Commerce shall determine the regulations for that.

Article 3

  • The standard carats for jewelry are:

  • 1- Gold jewelry:

    • A- 24 carat or 999.9 parts per thousand of pure gold.

    • B- 22 carat or 916 parts per thousand of pure gold.

    • C- 21 carat or 875 parts per thousand of pure gold.

    • D- 18 carat or 750 parts per thousand of pure gold.

  • 2- Silver jewelry:

    • A- 999 shares or parts per thousand of pure silver.

    • B- 925 shares or parts per thousand of pure silver.

    • C- 900 shares or parts per thousand of pure silver.

    • D- 800 shares or parts per thousand of pure silver.

  • 3- Platinum jewelry:

    • A- 999 shares or parts per thousand of pure platinum.

    • B- 950 shares or parts per thousand of pure platinum.

    • C- 850 shares or parts per thousand of pure platinum.

Article 4

  • 1- The sale, display for sale, or possession for the purpose of sale of jewelry by any means is prohibited unless the following conditions are met:

    • A- It must be stamped with the Kingdom's hallmark, in accordance with instructions issued by a decision of the Minister of Commerce.

    • B- It must be stamped with a registered trademark in accordance with the laws and procedures followed in the Kingdom, and with the actual fineness corresponding to one of the standard finenesses, provided that the stamp is clear and easy to read.

    • C- Coated or plated jewelry with precious metal must be stamped with the trademark, and the word (Coated) or (Plated), indicating the fineness of the coated or plated metal, and specifying its type.

  • 2- Foreign stamps specifying the fineness of imported jewelry are accepted, provided they are stamped with their actual fineness corresponding to one of the standard finenesses.

  • 3- Each precious metal must be stamped separately with the standard fineness if the jewelry is composed of two or more different precious metals that cannot be separated.

Article 5

  • 1- If the size of the occupied portion of the hallmark does not allow for the standard hallmarks, each piece must be accompanied by an identification card indicating the legally required hallmarks.

  • 2- An identification card must be attached to jewelry set with gemstones.

  • 3- All parts of jewelry composed of several parts welded or connected to each other, including the welding material, must not be less than the stamped standard of the hallmark.

  • 4- Antique or heritage jewelry is exempted from hallmarking, in accordance with the provisions of the Law of Antiquities, Museums, and Urban Heritage.

Article 6

  • 1- The Ministry of Commerce shall coordinate with the Zakat, Tax, and Customs Authority to inspect and examine shipments containing jewelry or set with gemstones imported from abroad for commercial purposes according to risk indicators, in the presence of the importer or their agent, and the shipment shall be handled as follows:

    • A- If it is found that the jewelry bears one of the standard carats and the importer's trademark, it shall be released, and samples may be taken from the shipment for examination to verify conformity with the stamped carat.

    • B- If the examination of the jewelry shows that it is below the minimum standard carats, the importer may request to re-export it in its current condition, with a report prepared and signed by the specialists and the importer; otherwise, it shall be broken and returned to the importer.

    • C- If there is suspicion that the jewelry or part of it violates the standard carats, the competent employee inspecting and examining the shipment shall take similar samples of the suspected items for analysis and keep them under custody with their owner. The owner may not dispose of them except after proving conformity with the standard carats. The examination must be conducted within fifteen (15) days from the date of sampling; otherwise, the sample shall be considered compliant with the law. This does not exempt the importer from liability if proven otherwise.

  • 2- Jewelry set with gemstones shall be cleared if accompanied by an identification card.

  • 3- If the examination result of the jewelry set with gemstones is found not to comply with the specifications mentioned in the identification card, final clearance of the shipment shall require issuing a conformity certificate from the laboratory, in accordance with international standards, or returning the shipment to its source according to the legal procedures.

Article 7

  • 1- It is permissible to mint and import gold and silver coins withdrawn from circulation, provided that they comply with the provisions of the crafted items.

  • 2- It is not permissible to import, sell, or possess these coins for the purpose of sale unless they comply with the provisions of the crafted items, and their holder must return the violating coins to the manufacturer or importer to modify their descriptions to comply with the provisions, bearing the cost of the necessary metal for that.

Article 8

  • It is prohibited to advertise the items subject to the provisions of the law in any medium unless the advertisement includes precise details about them, including weight, type, caliber, purity standards, and price, according to the nature of those items.

Article 9

  • 1- It is prohibited to sell, offer for sale, or possess for the purpose of sale the following:

    • A- Saudi medals of all types and appreciation marks issued by the government.

    • B- Single, composite, or mounted gemstones unless accompanied by an identification card if their weight equals or exceeds (0.25) carats, or if the size of the pearls equals or exceeds (3) mm.

    • C- Counterfeit coins of currencies withdrawn from circulation unless they are stamped with their actual fineness matching one of the legal finenesses and the trademark.

    • D- Jewelry mounted with non-precious metals unless the weight of the non-precious metal, the weight of the precious metal, and its price are specified in the sales invoice, whether the seller is a merchant or a manufacturer.

    • E- Imitation stones of precious or semi-precious stones - if intended for deception - whether single, mounted, or composite.

  • 2- The establishment shall be responsible for the items subject to the provisions of the law in its possession, and it must prove their sources whenever requested by the official authorities.

Article 10

  • 1- The establishment must issue a sales invoice that includes the following:

    • A- The name of the establishment and its national address.

    • B- The industrial license number - if available - and the commercial register number.

    • C- The trademark registration number and its image - if available - for invoices issued by the manufacturer or importer.

    • D- The tax identification number.

    • E- The phone number and email address.

    • F- The date of sale.

    • G- The weight, type, and a comprehensive description of the item.

    • H- A statement of the condition of the item if it is used.

    • I- The weight excluding the precious metal.

    • J- The name of the buyer.

    • K- The price of the items.

    • L- The manufacturing labor price per gram for invoices issued by the manufacturer.

    • M- The return and exchange policy and the terms of maintenance and warranty.

  • 2- The establishment must issue a dedicated invoice when purchasing from individuals, recording the seller's name, identity number, and nationality, in addition to the data stipulated in subparagraphs (E, F, G, K) of paragraph (1) of this article.

  • 3- The establishment must issue the sales or purchase invoice in a manner that makes it difficult to remove, erase, or modify its data.

  • 4- When selling composite gemstones on precious metal, the invoice must include the name of the stone, its type, weight, color, cut shape, clarity grade, and its integrity from cracks and scratches, along with any defects it may have.

  • 5- When selling single semi-precious or synthetic stones, the invoice must include the type of stone and its weight.

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