SAUDI CUSTOMS AUTHORITY SERIOUS ABOUT IPR

UNCLAS RIYADH 001423

SENSITIVE
SIPDIS

STATE PASS TO USTR FOR CHRIS WILSON, JASON BUNTIN
USDOC FOR STEVEN GARRETT
DEPT FOR NEA/ARP

E.O. 12958: N/A
TAGS: ETRD KIPR ECON EINV PREL SA
SUBJECT: SAUDI CUSTOMS AUTHORITY SERIOUS ABOUT IPR
PROTECTION


1. (SBU) Summary: In a meeting with visiting Assistant U.S.
Trade Representative for Europe and the Middle East
Christopher Wilson, the Director General of the Saudi Customs
Authority outlined the Authority's strong efforts to protect
trademarks in Saudi Arabia, which were recognized by the
World Customs Organization in 2008. The Customs Authority
will provide statistics on seizures of pirated goods for the
upcoming Special 301 Out-of-Cycle Review, and is reviewing a
list of questions regarding country of origin labeling
requirements. End summary.


2. (SBU) The Saudi Director General for Customs Saleh Khilewy
told visiting A/USTR Wilson on October 18 that Customs is the
Kingdom's first line of defense against piracy and commercial
fraud. Khilewy said they are pleased with industry reports on
the Authority's IPR protection efforts, particularly in
protecting trademarks. The Authority trained 2,000 officers
in 2009 on methods for detecting pirated products and signed
four agreements with companies which provide technical
support in identifying fraudulent trademarks and labels. The
Authority has set up two new units in 2009, one devoted to
commercial fraud and a second, a risk management unit which
alerts ports of entry about suspected shipments of pirated
products destined for the Kingdom. The Authority's efforts
were recognized in 2008, when they won the World Customs
Organization's award for protecting IPR. In addition, the
Authority convened a group of international experts in Medina
in 2008 to review their operations. The Authority is working
towards implementing all 28 recommendations from the Medina
conference to improve trademark protection in the near term.
A second such conference is planned for October 10, 2010 in
Riyadh, to review progress and suggest further improvements.


3. (SBU) Khilewy said the Kingdom values trade with the
United States and emphasized his organization's desire to
facilitate imports and exports. Asked to provide input for
the November 23 Special 301 Out-of-Cycle Review, Khilewy said
his organization would provide a comprehensive report,
including statistics on seized products, via the Saudi IPR
Committee (on which the Customs Authority is represented).
Khilewy discussed ongoing cooperation with U.S. Customs and
Border Protection, including a current Saudi delegation visit
to the United States, and welcomed additional collaboration.


4. (SBU) Wilson raised recent changes in customs policy
regarding country of origin labeling, noting that U.S.
exporters would find it easier to comply if the rules were
clearer. Khilewy's main concern was that products not have an
easily removed label, which would make it harder to
counterfeit. Khilewy highlighted the importance of origin
labeling in protecting IPR, noting that Saudi Arabia has
already granted 6-month to one year grace periods for
specific companies to implement the new requirements. Asked
about the application of origin labeling on imports with
components from multiple countries, Khilewy said such items
were dealt with on a case-by-case basis, but generally the
label should reflect the country that assembled or finished
the product. He also said that the Authority would accept
printed labeling on external packaging. Wilson left a list
of specific labeling questions with Khilewy, which he said he
would review with his team.


5. (U) AUSTR Chris Wilson cleared on this cable.
SMITH