TRADE IN AGRICULTURAL MACHINERY

Regulations for trade in agricultural machinery were issued by council of Ministers Resolution No. 96 dated 21/5/1405 H. (Feb. 11, 1985).Its important features are:

• Agricultural machines in these Regulations shall be taken to cover all machinery and equipment used in agricultural purposes.
• Trade in agricultural machinery shall not be permissible unless such machinery conform to Saudi standard specifications.
• The Minister of Agriculture and Water shall, by a decision from him, specify the type, quantity or ratio of spare parts that should be imported along with the agricultural machine or that should be available in the markets.
• If a defect or a damage, regardless of its type, appears in the agricultural machine during the warranty period, which is one year from the date of delivery of the machine to the buyer, the trader shall be obliged to repair it free of charge, replace it, or refund its price to the buyer in case repair or replacement is impossible unless the damage or defect is the result of improper use by the buyer, and in this case the trader shall have to prove it.
• The Ministry of Agriculture and Water shall have full and direct supervision over premises selling agricultural machinery and spare parts thereof as well as workshops for its repair and maintenance to ascertain smooth performance.
• The profit margin for an agricultural machine shall not exceed 15 percent of the machine's CIF price and 20 percent for spare parts which are not accessories to the machine.
• These regulations shall replace and supersede the Council of Ministers' Resolution No. 77 dated 28/1/1395 H. (1975).

For further information, please contact the Ministry of Agriculture and Water (see appendix I for address).