Legislation Details
- Full Title: Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies
- Law Type: Federal Law
- Law Number: Cabinet Resolution No. (89) of 2023
- Issued Date: 25 Aug 2023
- Effective Date: 31 Aug 2023
- Official Gazette: No. 758
- Sector: Economy and Business
- Status: Active
- Number of Articles: 15
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes a list of administrative penalties for acts committed in violation of the provisions of Federal Law No. (3) of 2022 Regulating Commercial Agencies. The Resolution aims to enforce compliance with the Commercial Agencies Law by empowering the Ministry of Economy to impose fines and other penalties on commercial agencies that breach the law's requirements. The Resolution is significant for businesses operating commercial agencies in the UAE, as it clarifies the consequences of non-compliance and provides a framework for the Ministry to take enforcement action. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 1-7)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is limited to commercial agencies registered with the UAE Ministry of Economy. It does not apply to any other entities or individuals outside the commercial agency sector. The purpose of the Resolution is to empower the Ministry to impose administrative penalties on commercial agencies that violate the provisions of the Federal Law No. (3) of 2022 Regulating Commercial Agencies. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- The Law: Federal Law No. (3) of 2022 Concerning Regulating the Commercial Agencies
- Ministry: Ministry of Economy
- Minister: Minister of Economy
(Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 1)
What are the main obligations and requirements?
The Resolution does not directly impose any obligations or requirements on commercial agencies. Instead, it empowers the Ministry of Economy to impose administrative penalties on commercial agencies that violate the provisions of the Federal Law No. (3) of 2022 Regulating Commercial Agencies. The specific violations and corresponding penalties are listed in a table attached to the Resolution. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 3)
What are the penalties for non-compliance?
The Resolution specifies two types of administrative penalties that the Ministry of Economy can impose on commercial agencies for violations of the Commercial Agencies Law: 1. Fines: The amounts of the fines are listed in a table attached to the Resolution. The fines range from AED 5,000 to AED 100,000, depending on the nature and severity of the violation. 2. Exceptional Penalties: In cases of severe violations, the Ministry may impose the harshest administrative penalty without following the prescribed progression of penalties in the attached table. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 3)
How can administrative penalties be appealed?
The Resolution provides the following appeal process for administrative penalties imposed by the Ministry of Economy: 1. The Ministry shall notify the concerned parties of the administrative penalty within 15 days from the date of its issuance. 2. The concerned party has the right to appeal the administrative penalty to the Minister within 30 days from the date of being notified of the decision. 3. The appeal must be substantiated and accompanied by supporting documents. 4. The Minister shall decide on the appeal within 30 days from the date of submission. If no decision is issued within this period, the appeal is considered rejected. 5. The decision issued on the appeal is final and cannot be further appealed. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 4)
What fees, charges, or financial provisions are specified?
The Resolution specifies that the administrative fines imposed by the Ministry of Economy shall be collected according to the mechanism determined by the Ministry of Finance after coordination with the Minister of Economy. Additionally, the Resolution states that for the purpose of collecting the fines, a part of a day shall be considered a full day, and a part of a month shall be considered a full month. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 3)
What amendments can be made to the fines?
The Resolution states that the Cabinet shall be the competent authority to make any amendment to the amounts of fines stipulated in the attached table, whether through addition, deletion, or amendment. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 5)
What provisions are cancelled or repealed?
The Resolution cancels Clause (1) of Article (3) of Cabinet Resolution No. (20) of 2020 regarding the fees for services provided by the Ministry of Economy, as well as any provision that contradicts or conflicts with the provisions of this new Resolution. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 6)
When did this law come into effect?
This Cabinet Resolution shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication, which was 30 August 2023. (Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies, 2023, Art. 7)
Source Documents
This article analyses Cabinet Resolution Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law Regulating Commercial Agencies for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.