As per this law, an organization is hereby established and called "the Saudi Arabian Standards and Metrology Organization" and hereinafter referred to as the "Organization".
The Organization shall be concerned with the following:
A) The development and accreditation of the texts of national standard specifications for measurement and calibration, symbols, definitions of products and commodities, methods of sampling and others, of what the Board of Directors would issue;
B) The publication of approved standards in the manner it deems appropriate. Said standards shall be valid upon publication in the Official Gazette;
C) The promotion of necessary awareness with regard to the specification and standardization and the coordination of work related to the standards and specifications in the Kingdom.
The Organization shall set up the rules for granting certificates of quality and badges of conformity with national standards and regulate how to issue them and the right of using them as well. The use of the badge remains optional.
The Organization may, upon the decision of the Council of Ministers based on the recommendation of the Board of Directors of the Organization, participate in the Arab, regional and international organizations for specifications and standards, and the Organization shall represent the Kingdom in the meetings of this Organization.
Implementation of standards shall be mandatory. However, the Board may declare some national standard specifications or categories optional. When developing and approving the optional implementation of Saudi standards, the Organization shall not undermine one or more of the following considerations:
1. maintaining safety and public health;
2. protecting consumer; or
3. guaranteeing public interest.
The Ministries, independent departments and government institutions shall comply with mandatory national standard specifications in their purchases and all of their work.
The Organization's main headquarters shall be in the city of Riyadh, and the Organization may establish branches in the Kingdom.
The Organization shall have legal personality, be administratively linked to the Ministry of Commerce and have an independent budget.
The Chairman of the Board of Directors shall represent the Organization in front of all government, judicial, administrative and private bodies in all its dealings with others.
The Organization shall have a board formed as per the following: (1)
1 - Minister of Commerce, President;
2 - Undersecretary of the Ministry of Commerce, Vice-President;
3 - A representative of the Ministry of Industry and Electricity, Member;
4 - A representative of the Ministry of Agriculture and Water, Member;
5 - A representative of the Ministry of Health, Member;
6 - A representative of the Ministry of Public Works and Housing, Member;
7 - A representative of the Consumer Protection sector, Member;
8 - Two representatives of businessmen: one represents the commerce businessmen, and the other represents the industry businessmen, to be chosen in consultation with the chambers of commerce and industry and the Minister of Commerce, and the Minister of Industry, for their appointment a decision shall be issued by the Chairman of the Organization for a period of three years, Members;
9 - Director General of the Organization, Member;
10 - A representative of the General Petroleum and Minerals Organization, Member;
11 - Undersecretary of the Ministry of Municipal and Rural Affairs, Member (1); and
12 - Director General of the Customs Department, Member (2).
The Council of Ministers, upon a proposal of the Minister of Commerce, has the right to amend the formation of the Board of Directors by issuing a decree for that.
The Board of Directors of the Organization is the dominant on its affairs, developing its policy and taking all necessary actions for carrying out its tasks properly and has for that the following competences, in particular:
1 – Developing the policy and the rules to be followed by the Organization, regarding the technical, financial and administrative aspects, and issuing regulations and decisions implementing these rules and policy. The Organization shall issue as well the financial regulations by the agreement with the Ministry of Finance and National Economy.
2 - Developing regulations for the staff of the Organization in agreement with the General Personnel Council.
3 - Identifying and adopting the drafts of the national standard specifications.
4 – Publishing the drafts of the national standards specifications to consider their suitability and to obtain the views of concerned bodies before adoption.
5 - Preparing the general budget draft.
6 – Supervising and controlling the technical, administrative and financial work of the Organization.
7 - Developing bylaws for the functioning of the Board of Directors.
8 – Appointing and terminating the Director-General of the Organization and determining his responsibilities without prejudice to the provisions of Article (14) of this statute.
9 - Exercising the functions and powers prescribed by this statute.
The Board of Directors shall meet once every three months at least, at the invitation of the President or the Vice-President, and to be called for the convening whenever requested that four of its members at least. The invitation must include the agenda of the meeting. The meeting would be valid only if attended by the majority of the members, including the President or Vice-President. The decisions would be taken by the majority votes of those present, and when a tie, the President would have the casting vote.
The Director-General shall have the following tasks:
1 - Implementing and following up the decisions of the Board of Directors.
2 – Supervising and managing the staff and workers of the organization, in accordance with the powers conferred upon him by the Board of Directors.
3 - Submitting periodic reports to the Board of Directors every three months on work and financial statement of the Organization and preparing an annual report on the activities of the Organization.
4 - Other tasks assigned by Board of Directors.
The financial resources of the Organization consist of the following:
1 - The contribution given by the state.
2 - Fees earned from licensing for using the conformity badge of the national standard specification and others.
3 - The price of the bulletins issued by the Organization.
4 - Grants, aid and subsidiary payment accepted by a decree of the Minister of Commerce and Industry after the approval of the Board of Directors.
5 - What the Organization gets from revenue and holdings of movable and immovable assets.
The Organization may act to sell holdings of funds, but not of land and buildings, only after obtaining the prior approval of the Minister of Commerce and Industry.
It is permissible, by a decision of the Board of Directors of the Organization, to recycle its surplus budget in a given financial year to the following fiscal year or years without deducting the surplus from the dedicated contribution of the general budget of the state.
The Board of Directors shall appoint legal accountants and auditors to audit its accounts, statements and annual budget and set their fees. The draft of the final account of the Organization shall be certified by the decision of the Board of Directors, ratified by the decision of the Minister of Commerce and then submitted to the General Auditing Bureau.
The interpretation of this statute shall be referred to the Council of Ministers.
This statute shall abolish all pre-existing laws inconsistent with it.