RIYADH, Feb 22: Businesses in Saudi Arabia and other countries of the region are under tighter scrutiny than before.

Several manufacturing companies in the kingdom have received notification from a number of their international suppliers of chemicals and industrial raw materials to provide an ‘audit’ declaration specifying the possible application of each of the items they order from them.

The declaration has to be issued by an agency responsible for the contents of the report. International companies are not ready to accept this document if it is stamped and signed by the customer, sources within the industry told the Gazette on condition of anonymity.

This requirement is besides the declaration of final destination which some of the international chemical companies are now asking their customers in the kingdom and some other countries of the region to fill in and submit before any order could be executed and shipped.

Apparently these steps have been taken by the chemical companies to fulfil the legal regulations of the exporting countries in the West. Sources within the industry here indicate that these steps would lengthen the overall supply chain still further.

This development would worsen the woes of importers, who were already faced with long lead times from the United States, due to new regulations put in practice by the Homeland Security Department.

Industry sources have revealed that shipments from the United States have been taking longer than usual time, for last many months now because of a new regulation that requires the Customs authorities to strictly monitor, check and clear each item being shipped to Saudi Arabia and other countries of the region. Consequently shipments are taking considerable longer time before being cleared for shipment to Saudi Arabia, sources within the industry admit.

Now another regulation is adding to the woes of those doing business with the US. A new US Customs rule requires all ocean carriers to transmit manifest information 24 hours in advance of vessel loading at foreign port for vessels destined for the United States.

In order for carriers to have enough time to gather and transmit manifest information (bill of lading information) to the US Customs 24 hours in advance of vessel loading, the carrier may require documentation 48-72 hours before the ship is loaded.

All these new regulation put in practice will definitely put the squeeze on the supply chain of both the exporters and importers from this part of the world, industry sources here admit.