SR50bn Lost to Trade Fraud Annually

SR50bn Lost to Trade Fraud Annually


28/Mar/2007
Arab News

Saudi companies suffer losses worth nearly SR50 billion annually as
a result of growing fraudulent trade practices in the Kingdom,
according to Hussein Fahd Al-Eyadi, chairman of the Jeddah Chamber
of Commerce and Industry?s committee in charge of creating awareness
about trade fraud.

?The losses being suffered by Saudi companies as a result of trade
fraud is incredible and this necessitates imposition of tougher
penalties to prevent such harmful practices,? Al-Eyadi told Arab
News.

A new law has proposed a one-year jail sentnece and fines of up to
SR1 million for those involved in trade fraud.

Custodian of the Two Holy Mosques King Abdullah has said that the
government will deal firmly with anyone who tries to harm the
economy. ?Trade fraud is one of the biggest enemies of national
economy,? Al-Eyadi said and called for enacting and enforcing the
new law as quickly as possible. ?Trade fraud is the crime of the
21st Century. Other countries impose tougher punishment including
beheading on those involved in this type of crime,? he said.

Al-Eyadi blamed the inaction of three agencies ? the Ministry of
Commerce and Industry, the Customs Department and the Saudi Arabia
Standards Organization (SASO) for growing trade fraud in the
country.

If the three organizations play their roles effectively, the problem
can be solved, he said. The Customs Department must stop low-quality
and imitation products from entering the country, the Standards
Organization must give reports on various imported products quickly
before giving them clearance and the ministry must take steps to
prevent the manufacturing of faked-brand goods inside the Kingdom,
said the JCCI official.

?At present we spend billions of dollars in importing low-quality
and expired goods,? said Al-Eyadi, who is CEO of Trade Mark Service
Company.

He said the three agencies should act quickly and efficiently to
prevent trade fraud. ?Presently the customs has to wait sometimes up
to two months to get a response from the SASO on an imported
product. Because of this delay, the trader tries to get clearance of
the product by giving an undertaking,? he pointed out.

?We are now in a different situation. We are a member of the World
Trade Organization and it is the duty of the ministry to respond
quickly to our committee?s recommendations to solve this problem,?
Al-Eyadi said.



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