VZCZCXRO1038
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #1423 3000937
ZNR UUUUU ZZH
P 270937Z OCT 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 1786
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHFJUSC/US CUSTOMS SERVICE WASHDC PRIORITY
RUEPINS/DIR ICE INTEL WASHINGTON DC PRIORITY

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