|  | UAE President issues law on commodities subject to import and export control procedures (EXTENDED)Sep 1, 2007 - 11:04 - Abu Dhabi, Aug. 31st, 2007 (WAM)---President H.H. Sheikh Khalifa bin Zayed Al Nahyan today issued Federal Law No. 13 of 2007 on commodities that are subject to import and export control procedures.
Chapter 1 of the new law authorizes the concerned authorities to ban or restrict the importing, exporting or re-exporting of any commodity for reasons related to safety, public health, environment, natural resources, national security or for reasons related to the UAE's foreign policy, taking into account any restrictions which may currently be imposed on those commodities by laws already in effect and by the existing powers of the concerned authorities, and in compliance with the international treaties that the UAE ratified or joined.
The new federal law seeks to standardize such procedures throughout the UAE, since geographically-limited procedures would not provide the desired result of banning or restricting a particular commodity and because varying or differing control procedures would disrupt trade in the country as a whole.
The new law directs the cabinet to order the establishment of a new control body to be known as the National Commission for Commodities Subject to Import, Export and Re-export Control. A representative of the Ministry of Economy (MoE) shall head the new commission, whose membership will include representatives of other concerned federal ministries and bodies and the private sector. It will be tasked with cooperating and coordinating with relevant authorities on the rules introduced to control imports and exports in compliance with the new law. It will also provide technical advice to federal and local bodies to ensure the enforcement provisions of Chapter 1 are applied in the best interest of the integrity of the country's trade interests.
Accordingly, any local body or department that has reasons to ban or restrict a certain commodity will recommend the commission to do the same nationwide.
The said commission will also inspect the procedures that are currently in place in the country and which form the base for any possible bans or restrictions on any commodities.
Provisions of Chapter 1 of the new Law include the general framework for control of the issue of import and export licenses, namely the period set to consider applications and any complaints from applicants against decisions by the relevant body to cancel licenses.
Chapter 2 regulates the procedures aimed at controlling the import and export of strategic commodities as well as the export and re-export of technological commodities, in addition to the brokerage of imports or transport of the same.
+ Section 1 of Chapter 2 provides the legal texts which regulate the dealing in strategic commodities while Section 2 includes the Strategic Commodities List as an annex to the law.
The law falls into 4 Parts. Part 1 defines technical terms used in the Strategic Commodities List, Part 2 includes three lists of commodities, of arms, military equipment and hardware, chemical and biological commodities and dual-use commodities which refer to items that may be used for both civil and military purposes.
Section 3 of the Strategic Commodities List specifies certain chemical and biological commodities which may not temporarily transported unless a relevant consent is provided. Section 3 of the said list names chemical and biological commodities for which are not allowed to act as mediators, brokers or negotiators without prior consent.
The provisions of Chapter 2 of the Law deal with issues of export, re-export and transshipment of strategic and related technological commodities through the UAE's ports and regulates brokering and mediating contracts for transport of these outside the UAE or from one destination to another, also outside the UAE.
UAE laws ban the export or re-export of strategic commodities or related technologies without prior consent from the Commission for Strategic Commodities to ensure that such commodities will not fall into the hands of unlicensed individuals or reach countries or destinations that are not covered by the UAE's compliance with international treaties.
The provisions of Chapter 2 are not limited to commodities specified in the list, but cover each commodity, item and technology specified by the Commission for Strategic Commodities where concerned individuals know it may be used for military purposes or in the production of military equipment, be it conventional weaponry or weapons of mass destruction (WMD).
The new law on commodities subject to import and export control procedures also provides for the setting up of the National Commission for Strategic Commodities. The Commission's membership will include representatives of the relevant federal ministries, bodies and departments as well as representatives of the Federation of UAE Chambers of Commerce & Industry (FCCI). It will be tasked with the enforcement of Chapter 2 of the Law as well as with the setting up of an affiliated executive body.
Chapter 2 also laws down the procedures for obtaining licenses to deal in strategic commodities and related technologies, rules for acting as a mediator, broker or negotiator in related contracts and for the lodging of any complaints against decisions by the commission.
Given that each country producing or possessing such commodities is obliged to impose relevant controls on their movement to foreign destinations, Chapter 2 of the new law does not include any provisions on the import of strategic commodities, its purpose being not to prevent the UAE from possessing or importing such commodities for legal purposes. Imports of such commodities are usually imported by the UAE's government departments or are subject to control by the concerned authorities in the UAE or in the exporting country.
Chapter 3 specifies the penalties, ranging from a maximum imprisonment and /or fines of one year and Dhs half a million for those who breach the law by carrying out any activity related to the export or re-export of any strategic commodity or related technology, including brokerage or involved in related contracts.
Chapter 4 provides for the issuance by the Cabinet of relevant regulations which shall be published in the Official Gazette within one month from the issuing of the law.
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