A NEW REQUIREMENT FOR AUSTRALIAN COMPANIES THAT EXPORT TO SAUDI ARABIA

By Steven Arnett

Consultant and Member of the Board of Directors of ECCMA

 

On May 23, Steven Arnett and Marek Dalkowski from ECCMA met with Tom Harley, the Joint Managing Director of Dragoman, at the office of the Australia Saudi Arabia Business Council in Melbourne, to discuss a new requirement for companies that export into the Kingdom.

As part of Vision 2030, the Kingdom of Saudi Arabia (KSA) has developed a National Industrial Strategy (NIS).  One element of this strategy is to create a National Industrial Information Center (NIIC).  In June 2017, exporters of industrial items will start to receive notifications requesting that they register standardized part numbers (ISO 8000-115) and computer processable technical specifications, formatted in XML according to ISO 22745-40, for the associated products in an open global registry of technical specifications. The open registry of technical specifications is managed by a non-profit association, the Electronic Commerce Code Management Association (ECCMA), and is known as the ECCMA Technical Specification Registry (eTSR).  The registry is free for manufacturers to upload specifications, and free to download specifications using a standard part number.  

The New Requirement

The specifications in standard format will be used to improve the efficiency of several government departments, including import duty exemption and localization compliance. The key points to note from this project are:

  • The records in the registry shall conform to ISO 8000 Parts 115 (part number) and 120 (specifications)
  • All common military and industrial items imported into KSA will be required to be registered in the eTSR, regardless of whether a supplier is applying for exemption from duty or not
  • All government controlled corporations in KSA (Aramco, SABIC, SEC, SWCC, Ma’aden, and so forth) will use the eTSR to improve the quality of their master data and to identify local manufacturers as part of KSA government localization requirements

This project is being managed by the Ministry of Energy, Industry, and Mineral Resources (MEIM), through the National Industrial Clusters Development Program (NICDP) office, and is being sponsored by Saudi Aramco and SABIC. ECCMA, which is based in Bethlehem, Pennsylvania, USA, has been chosen to lead this element of the project using their experience as project leaders of the international data standards ISO 8000 and ISO 22745. To meet these new requirements, suppliers can go to https://eccma.org/lp1/ to learn how to obtain a Quality Identification Prefix (QUIP) that is compliant with ISO 8000-115 and add Electronic Standardized Technical Specifications (eSTSs) for their items to the eTSR that are compliant with ISO 8000-120.  At that Web site, suppliers will be able to easily obtain a QUIP and prepare eSTSs for submittal to the eTSR online following an easy, step-by-step process without having to know the details of ISO standards 22745 and 8000. Suppliers can add eSTSs to the eTSR any time—they do not have to wait until they receive notification to do so.

As part of this effort, ECCMA and NIIC teams are meeting with business councils and trade offices in the nations that have significant trade with the Kingdom.  

Benefits for Australian Companies

This project has the potential to bring great benefits to the Saudi Arabian economy and can help Australian companies that import into the Kingdom 1) Give greater visibility of their products to Saudi Arabian buyers 2) Help Australian companies qualify for a 10% import duty exemption if they supply products that are not made in the Saudi Arabia 3) Facilitate quicker and smoother import of Australian into Saudi Arabia. The NIIC and ECCMA teams look forward to cooperating with Australia companies that import into Saudi Arabia. For a good overview of eSTSs and how they can benefit companies and promote efficiency in logistics and procurement, check out this video at https://youtu.be/0zmGuSciizc.

For more information, if you have questions, or if you company is interested in joining ECCMA, contact Steven Arnett at steven.arnett@eccma.org. To learn more about ECCMA and the benefits of membership, check out our Web site at www.eccma.org.