Legislation Details
- Full Title: Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State
- Law Type: Cabinet Resolution
- Law Number: [No number] of 2019
- Issued Date: 14 Nov 2019
- Effective Date: 24 Feb 2020
- Official Gazette: No. 666
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 33
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes a "Unified National Number System for Customs Users in the State" to create a centralized database of importers, exporters, and customs brokers operating in the UAE. The system aims to facilitate trade, support risk analysis, and enable information exchange between the Federal Authority for Customs and other government entities. The Resolution outlines the system's scope, the Authority's responsibilities, registration procedures, and administrative penalties for non-compliance. It applies to all importers, exporters, and customs brokers in the UAE. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 1-3)
The system is significant for businesses and individuals engaged in import/export activities in the UAE, as it introduces new registration and data update requirements. Failure to comply can result in administrative fines, which could disrupt trade operations. The centralized database is also expected to enhance customs risk management and facilitate trade facilitation initiatives by the government. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 3, 6, 10)
What is the scope and purpose of this law?
The provisions of this Cabinet Resolution apply to all importers, exporters, and customs brokers in the UAE. It establishes the "Unified National Number System for Customs Users in the State" to create a centralized database of these parties and facilitate various objectives, including registering their data, supplying risk data to customs systems, exchanging information between authorities, supporting electronic systems, preparing statistics, and facilitating trade. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 2-3)
What are the key definitions under this law?
- State: The United Arab Emirates
- Authority: The Federal Authority for Customs
- Chairman: The Commissioner of Customs - Chairman of the Authority
- Government Entities: Federal or local ministries, authorities, public institutions, and government-owned companies
- Customs Administrations: The customs authorities in the local governments of the UAE
- Diplomatic Missions: Foreign embassies, consulates, and international/regional organizations in the UAE
- Customs Users: Natural or legal persons who import or export goods to/from/through the UAE
- Importer: A natural or legal person who imports goods into the UAE
- Exporter: A natural or legal person who exports goods outside the UAE
- Customs Broker: A licensed natural or legal person who clears customs on behalf of others
- The System: The "Unified National Number System for Customs Users in the State"
- Unified National Number: The number issued by the Authority for importers, exporters, and customs brokers
- Customs Administrations System: The system used by Customs Administrations to register importers, exporters, and customs brokers
(Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 1)
What are the main obligations and requirements?
The Resolution imposes the following key obligations on importers, exporters, and customs brokers in the UAE:
- It is prohibited to engage in import, export, or transit activities without obtaining the Unified National Number. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 6(1))
- All importers, exporters, and customs brokers must register in the System, renew their registration annually, and update their data periodically as per the mechanism and timeframe specified by the Chairman. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 6(2))
- In case of temporary or permanent cessation of import/export activities, the importer, exporter, or customs broker must notify the Authority. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 6(3))
- The data provided for registration or renewal must be accurate and not misleading. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 6(4))
What licensing, registration, or approval requirements exist?
The Resolution requires all importers, exporters, and customs brokers to register in the "Unified National Number System for Customs Users in the State" and obtain a Unified National Number from the Federal Authority for Customs. The registration process involves submitting an electronic application, attaching required documents, and paying the prescribed fees. The Authority verifies the application and issues the Unified National Number on a preliminary basis, which is then reviewed and approved or rejected by the Customs Administrations. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 7)
Diplomatic missions and government entities are required to obtain written or electronic approval from the Ministry of Foreign Affairs and International Cooperation, and a formal letter from the entity, respectively, to register in the System. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 9(2-3))
Which authorities or bodies are responsible for enforcement?
The Federal Authority for Customs is responsible for implementing and supervising the "Unified National Number System for Customs Users in the State" in coordination with the Customs Administrations. The Authority's specific responsibilities include:
- Receiving, reviewing, and verifying applications for registration, renewal, or update of the Unified National Number data.
- Issuing, renewing, or updating the Unified National Number data.
- Preparing studies, statistics, and risk indicators for registered parties.
- Coordinating with Customs Administrations and government entities on information, reports, and data related to importers, exporters, and customs brokers.
- Responding to inquiries and complaints regarding the Unified National Number.
- Exchanging information with Customs Administrations on the system's operation, updates, and compliance. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 4)
What are the penalties for non-compliance?
The Resolution imposes the following administrative fines on importers, exporters, and customs brokers for non-compliance:
- Failure to register in the System within the specified timeframe: AED 1,000 for the first month and AED 100 for each subsequent month, up to a maximum of AED 5,000.
- Failure to renew the Unified National Number within 60 days of expiry: AED 500 per month, up to a maximum of AED 2,500.
- Failure to update data within 30 days of change: AED 500 per month, up to a maximum of AED 2,500.
- Submitting misleading or incorrect data in the registration application: AED 5,000, up to a maximum of AED 10,000.
The Cabinet may issue a decision specifying additional violations and penalties. The Authority collects the fines through means determined by the Ministry of Finance. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 10)
How are disputes resolved under this law?
The Resolution establishes a grievance committee for administrative penalties at the Federal Authority for Customs. Whoever has an administrative penalty resolution issued against them can file a grievance with this committee within 15 days of becoming aware of the decision. The grievance must be reviewed within 30 days, and the decision issued on the grievance is final. This does not prejudice the right to resort to the judiciary. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 12)
When did this law come into effect?
This Cabinet Resolution was published in the Official Gazette and entered into force three months after the date of its publication, which was on 24 February 2020. (Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State, 2019, Art. 15)
Source Documents
This article analyses Cabinet Resolution Regarding the Unified National Number System for Customs Users in the State 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.