Postal regulations amendments: Parcels to be delivered within 3 hours and a code is mandatory
In a move aimed at reshaping the logistics landscape in Saudi Arabia, the Public Transport Authority has introduced significant amendments to the executive regulations of the postal system through the "Istilaa" platform. These steps are part of the Authority's efforts to enhance the sector's efficiency and improve the user experience, in line with the objectives of the National Transport and Logistics Strategy stemming from the Kingdom's Vision 2030.
A regulatory framework to keep pace with the growth of e-commerce
The postal and shipping sector in the Kingdom is experiencing rapid growth driven by the booming e-commerce market, creating an urgent need to update the legislative framework. The new draft aims to address regulatory gaps that have emerged with the market's expansion, as users previously suffered from uncertain delivery dates and shipment delays. These amendments are a direct response to consumer complaints and aim to regulate the relationship between service providers and users, ensuring a fair and competitive environment that attracts both foreign and domestic investment.
Precise timeframe: Goodbye to long waits
The new draft law represents a radical shift in the delivery mechanism, obligating shipping companies to set a precise delivery timeframe of no more than three hours. This provision grants the recipient the freedom to choose their preferred delivery time, whether morning or evening, thus ending the ordeal of "open-ended waiting" throughout the day. This amendment will compel companies to improve their technological systems and schedule their operations with meticulous precision to ensure adherence to the specified time, thereby enhancing the quality of life for citizens and residents.
Electronic verification methods to ensure reliability
To eliminate the problem of lost or misdelivered parcels, the amendments require the use of reliable electronic verification methods upon delivery. These methods include a one-time verification code (OTP) sent to the recipient's mobile phone or an electronic signature. This step aims to ensure that postal items arrive at the correct registered national address or the agreed-upon address, thus reducing legal disputes between companies and customers and providing conclusive proof of delivery.
Tightening controls on licenses and operators
The regulations did not neglect oversight, granting the Authority broad powers to suspend or revoke licenses in specific and critical cases. These cases include the bankruptcy of the service provider, cessation of operations for six consecutive months, or the commission of violations that harm national and security interests. The regulations also governed subcontracting mechanisms, stipulating that licensed services cannot be fully delegated to third parties. Furthermore, the primary operator bears full legal responsibility to the Authority and beneficiaries for any arising obligations, ensuring that large companies cannot evade their responsibilities by relying on smaller transportation companies.
Expected economic impact
These amendments are expected to streamline the market and eliminate companies unable to meet quality standards, paving the way for strong and well-organized entities. These steps will also bolster local and international consumer confidence in the Kingdom's logistics infrastructure, supporting Saudi Arabia's ambition to become a global logistics hub connecting three continents.
