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| Accueil
| Guide pratique | Réglementations commerciales
au Moyen-Orient |
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Arabie Séoudite |
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Bahrein |
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Egypte |
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Emirats Arabes Unis |
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Kowait |
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Oman |
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1. Local
representation / agents and distributors agency legislation |
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The importance
of choosing the right distributor both for your market and
for your product is paramount. In general locally based
distributors will generally have a better understanding
of the marketplace than staff visiting from a foreign company.
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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.
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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. |
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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. |
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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 regional manufacturing or distribution
base where most of the turnover is going to be outside of
the UAE. |
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2. Legalisation
of commercial agency agreements |
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If the agreement is signed in the 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 |
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3. Standards
and technical regulations |
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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 |
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4. Labelling
and packaging regulations |
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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.
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5. Exchange
controls |
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The
UAE imposes no foreign exchange controls and no other restrictions
on the repatriation of profits or capital by foreign investors. |
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6. Import
control |
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Goods
which have been manufactured in Israel are prohibited. |
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All
printed matter, films and tapes must be cleared by the Ministry
of Information. |
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Pornographic
material, ivory/rhino horns, cannabis, alcoholic beverages,
fire-arms, fire works, narcotics and opium are also strictly
prohibited. |
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Exports
to the UAE are subject to pre-shipment inspection for those
who want. |
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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. |
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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. |
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7. Export
controls and licensing |
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The Europeans
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 states export
controls, a licence is required to gain the legal authority
to export them. |
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8. Documentation
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Most imports
into the UAE (except those of low pecuniary value) require
a commercial invoice and an Arab Chamber of Commerce Certificate
of Origin. |
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The commercial
invoice must be the supplier's invoice and may not originate
from agents or representatives or importers. |
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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. |
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The commercial
invoice and certificate of origin must be authenticated
by the Embassy of the United Arab Emirates in your country.
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9. Customs
duties |
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Customs
duties are levied on the cif value or ad valorem or specific
to the goods concerned. |
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Some goods,
including all transit cargo, are exempt from duty (eg foodstuffs,medicines
and public sector imports) |
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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).
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The
duty on alcoholic beverages is 80% and 50% on tobacco products.
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The
duty is 4% for all other goods excepting foodstuffs and
government and oil company-destined goods. |
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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. |
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Import duty
is not usually levied on samples imported into Dubai and
the Northern Emirates. |
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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. |
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