Practical Guide  | Export Procedure   See also      Saudi Arabia      Bahrain      Egypt      United Arab Emirates      Kuwait      Oman      Qatar      Jordan      Lebanon      Syria      Yemen           UNITED ARAB EMIRATES Import Rules 1. Local representation / agents and distributors agency legislation 2. Legalisation of commercial agency agreements 3. Standards and technical regulations 4. Labelling and packaging regulations 5. Exchange controls 6. Import control 7. Export controls and licensing 8. Documentation 9. Customs duties   1. Local representation / agents and distributors agency legislation   The importance of choosing the right distributor both for your market and for your product is paramount. In general locally based distributors will have a better understanding of the marketplace than staff visiting from a foreign company.   European companies may seek the services of a sole agent in the UAE, or they may appoint a commercial agent in each Emirate or for each product. The main qualities to look for in an agent are : ability to obtain new business, contacts in government if necessary , local knowledge of how to get things done, ability to inform you of the latest changes in regulations and have a knowledge of procedures There are 3 main methods of exporting to UNITED ARABS EMIRATES.   Direct Trade International manufacturers and exporters may conduct business with the country by concluding transactions directly with importers and traders who are already established in the market. This type of trade is best suited to low volume trade or to test the market and should not otherwise be used as a permanent arrangement.   Commercial Agencies A foreign company wishing to supply goods UNITED ARAB EMIRATES can do so by appointing a commercial agent and distributor The UAE is a federal country and it may be necessary to appoint more than one representative in order to cover the market effectively. Alternatively a sole agent may be appointed. In practice, many overseas companies appoint several agents to cover defined areas of the country and may have separate agreements for separate products. Any commercial agency agreement needs to be drawn up with great care specifying the products and territories to be covered by the agent. The main requirement is that all agents must register with the Ministry of Economy and Commerce. Only UAE nationals or companies wholly or majority owned by UAE nationals can register with the Ministry of Economy and Commerce as local agents. It is not possible to terminate an agent without his written agreement. For an agreement to be valid, there must be a direct written agreement between the agent and the prinicipal to the exclusion of others in the designated area. Be aware however, that agency agreements, once entered into, can be extremely difficult to terminate. It is advisable, if not essential, to seek legal advice before entering into any such agreement.   Setting Up a Presence in UNITED ARAB EMIRATES The basic requirement to establish a company in the UAE is the granting of a licence by the local municipality, or in the case of Dubai by the Dubai Department of Economic Development. There are 3 categories of licence: 1. Commercial licences covering all kinds of commercial activity. 2. Professional licences covering professions, services, craftsmen and artisans. 3. Industrial licences for establishing industrial or manufacturing activity. Legal structures for commercial businesses are determined by the Commercial Companies Law and 7 categories (general partnership, simple commandite partnership, private unlimited company, public shareholding company, private shareholding company, limited liability company and share commandite company). The ownership requirement is 51% participation by UAE nationals although there are some exceptions to this. However, general partnerships are not available to foreigners. Branches and representative offices of foreign companies may be 100% foreign owned but are required to appoint a service agent (not to be confused with the term commercial agent) who must be a UAE national or a company 100% owned by UAE nationals. The service agent's obligations are restricted. They have no direct involvement in the business and also carry no liability. There are restrictions on the activities that branches and representative offices may be licensed to carry out. A company can also be 100% foreign owned if setting up business within any of the free zones operating in the Emirates. This type of set up is very suitable for companies intending to use the area as a regional manufacturing or distribution base where most of the turnover is going to be outside of the UAE.   2. Legalisation of commercial agency agreements   If the agreement is signed in Europe it must be: 1. Authenticated by a notary public. 2. Legalised by the Foreign Ministry 3. Legalised by the Embassy of the United Arab Emirates: Legalisation Department   3. Standards and technical regulations   European & International Standards, as well as licensed copies of individual standards, is recognised as an important service to the local community. Halal certificates for meat products All imported beef and poultry products require a health certificate from the country of origin and a halal slaughter certificate issued by an approved Islamic centre in the country of origin   4. Labelling and packaging regulations   Labelling in Arabic is required on all consumer products. Labels need to provide information such as : placement of identification data, identification of the manufacturer, product information, standard quality disclosures, hygiene and ingredients regulations. brand names, production and expiry dates, country of origin, a comprehensive list of ingredients and additives.   5. Exchange controls   The UAE imposes no foreign exchange controls and no other restrictions on the repatriation of profits or capital by foreign investors.   6. Import control   Goods which have been manufactured in Israel are prohibited.   All printed matter, films and tapes must be cleared by the Ministry of Information.   Pornographic material, ivory/rhino horns, cannabis, alcoholic beverages, fire-arms, fire works, narcotics and opium are also strictly prohibited.   Exports to the UAE are subject to pre-shipment inspection for those who want.   Imports into the UAE can only be undertaken by those importers who have the appropriate trade licence.. Imports by the public sector should be guaranteed by the government in Abu Dhabi, although this is rarely needed for the private sector.   Local government authorisation required for : Alcoholic beverages, fire-arms, fireworks and sparklers, ammunition, explosives, narcotics and medical drugs, agricultural pesticides, pork/pork products and wireless transmitters.   7. Export controls and licensing   The European Government maintains export controls to prevent the export of goods, including technology, for a variety of reasons including: the collective security of the European states and its allies in NATO national security and foreign policy requirements international legal obligations and commitments non-proliferation policy If goods or technologies are subject to your state export controls, a licence is required to gain the legal authority to export them.   8. Documentation   Most imports into the UAE (except those of low pecuniary value) require a commercial invoice and an Arab Chamber of Commerce Certificate of Origin.   The commercial invoice must be the supplier's invoice and may not originate from agents or representatives or importers.   It should be a supplier's certified statement of origin. Standard trade documentation, including certificates of origin bearing the name and address of the producing firm, bills of lading, packing list and various government/Embassy attestations must be presented for all imports and exports.   The commercial invoice and certificate of origin must be authenticated by the Embassy of the United Arab Emirates in your country.   9. Customs duties   Customs duties are levied on the cif value or ad valorem or specific to the goods concerned.   Some goods, including all transit cargo, are exempt from duty (eg foodstuffs,medicines and public sector imports)   The customs authorities may call for a cash or bank guarantee as security, refundable to the owner of the goods, on their re-export outside the UAE. (This does not apply within the free zones).   The duty on alcoholic beverages is 80% and 50% on tobacco products.   The duty is 4% for all other goods excepting foodstuffs and government and oil company-destined goods.   Goods may be imported duty free and stored in any of the free zones in the UAE. Subsequently, goods which are then transferred to the UAE from these zones, are subject to minimal duty payments currently of 4% depending on the product eg cigarettes attract 75% duty.   Import duty is not usually levied on samples imported into Dubai and the Northern Emirates.   However, for goods of higher value such as jewellery, prior permission to import and arrangements for free entry must be made with the Director of Customs, preferably through a local sponsor or agent.