Legislation Details
- Full Title: Federal Law on Petroleum Products Trading
- Law Type: Federal Law
- Law Number: [14] of 2017
- Issued Date: 11 Jun 2017
- Effective Date: 12 Sep 2017
- Official Gazette: No. 616
- Sector: Energy, Transport and Infrastructure
- Status: Active
- Number of Articles: 49
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law regulates the trading of petroleum products within the United Arab Emirates. Its purpose is to define the terms and procedures for petroleum products trading, and to combat practices harmful to the national economy, safety, security, and environment. (Federal Law on Petroleum Products Trading, 2017, Art. 2) The law applies across the entire UAE territory, including free zones, special development zones, and investment zones. It requires all natural and legal persons engaged in the trading of petroleum products to obtain a license from the Competent Authority. The law establishes a Petroleum Products Trading Regulatory Committee in each Emirate to oversee licensing and compliance. It also mandates the creation of a national register of licensed traders, facilities, and transportation. Penalties are specified for various violations, such as trading without a permit or selling non-compliant products. This legislation is important for businesses and individuals involved in the petroleum products supply chain in the UAE. (Federal Law on Petroleum Products Trading, 2017, Arts. 3, 4, 6, 8, 12, 14)
What is the scope and purpose of this law?
The scope of this Federal Law is to regulate petroleum products trading across the entire territory of the UAE, including free zones, special development zones, and investment zones. (Federal Law on Petroleum Products Trading, 2017, Art. 3) The law aims to: 1) regulate petroleum products trading, 2) define the terms and procedures for petroleum products trading, and 3) combat practices harmful to the national economy, safety, security, and environment related to this sector. (Federal Law on Petroleum Products Trading, 2017, Art. 2)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Ministry: Ministry of Energy
- Minister: Minister of Energy
- State Territory: Includes all State lands, marine areas, and airspace
- Marine Areas: Inland water, territorial sea, exclusive economic zone, and continental shelf
- Competent Authority: The local authority competent to issue a trading permit
- Trading: Entering petroleum products to the State, manufacturing, storing, packaging, transporting, marketing, distributing, offering for sale, selling, purchasing, or providing to others
- Illegal Trading: Trading in violation of the law's provisions
- Trading Permit: Document issued by the Competent Authority to permit petroleum products trading
- Licence: Document issued by the Competent Authority based on the Trading Permit
- Committee: Petroleum Products Trading Regulatory Committee
- Register: Special register prepared by the Ministry for trading
- Petroleum Products: Hydrocarbon gas and petroleum derivatives (excluding crude oil)
- Hydrocarbon Gas: Hydrocarbons in gaseous state, including derivatives
- Petroleum Derivatives: Substances extracted from crude oil, including fuels, lubricants, and bitumen
- Authorised: A natural or legal person holding a Trading Permit
- Means of Transportation: Any land, sea, or air means used for trading
- Authority: Emirates Authority for Standardisation & Metrology
(Federal Law on Petroleum Products Trading, 2017, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this law include: 1. No natural or legal person may trade petroleum products in the UAE without a license issued based on a Trading Permit. (Federal Law on Petroleum Products Trading, 2017, Art. 4) 2. The Minister, in coordination with the Competent Authority, must issue regulations on the standard conditions and procedures for issuing Trading Permits, transport permits, and listing in the Register. (Federal Law on Petroleum Products Trading, 2017, Art. 5) 3. The Ministry must establish a Register listing the information of licensed persons, facilities, and means of transportation used for trading. (Federal Law on Petroleum Products Trading, 2017, Art. 6) 4. The Competent Authority must issue Trading Permits, verify licensee compliance, consider permit amendment requests, and supervise and inspect licensees. (Federal Law on Petroleum Products Trading, 2017, Art. 7) 5. The licensee must comply with various obligations, such as being listed in the Register, following the Trading Permit terms, meeting safety and security standards, maintaining records, and enabling inspections. (Federal Law on Petroleum Products Trading, 2017, Art. 13)
What licensing, registration, or approval requirements exist?
The law requires all natural and legal persons engaged in petroleum products trading in the UAE to obtain a Trading Permit from the Competent Authority. (Federal Law on Petroleum Products Trading, 2017, Art. 4) The Trading Permit is the basis for the Competent Authority to then issue a Licence for the licensee to practice economic activities in the Emirate. (Federal Law on Petroleum Products Trading, 2017, Art. 4) The Ministry is required to establish a Register listing the information of all licensed persons, facilities, and means of transportation used for petroleum products trading. The Competent Authorities must provide the Ministry with the information related to the licensees. (Federal Law on Petroleum Products Trading, 2017, Art. 6)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law are: 1. The Ministry of Energy: Responsible for issuing regulations on trading permits, transport permits, the Register, and petroleum product requirements. (Federal Law on Petroleum Products Trading, 2017, Art. 5) 2. The Competent Authority: The local authority responsible for issuing Trading Permits, verifying licensee compliance, considering permit amendment requests, and supervising and inspecting licensees. (Federal Law on Petroleum Products Trading, 2017, Art. 7) 3. The Petroleum Products Trading Regulatory Committee: Established in each Emirate, with representatives from the Ministry, Ministry of Interior, Federal Authority for Land and Maritime Transport, and other relevant entities. The Committee studies permit applications and recommends to the Competent Authority, and verifies safety/security/environmental requirements. (Federal Law on Petroleum Products Trading, 2017, Arts. 8-9)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: 1. Imprisonment for up to 1 year and a fine of AED 100,000 to AED 500,000, or either penalty, for: a. Trading petroleum products without a permit b. Selling non-compliant petroleum products c. Acquiring petroleum products of unknown source in commercial quantities d. Altering a vehicle's fuel system without a permit (Federal Law on Petroleum Products Trading, 2017, Art. 14) 2. In case of repetition, the penalty is imprisonment for at least 1 year and a fine. (Federal Law on Petroleum Products Trading, 2017, Art. 14) The law does not specify any other penalties beyond these imprisonment and fine provisions.
When did this law come into effect?
This Federal Law on Petroleum Products Trading was issued on 11 June 2017 and came into effect on 12 September 2017, as per the Effective Date listed in the legislation. (Federal Law on Petroleum Products Trading, 2017)
How does this law interact with other UAE legislation?
The preamble of this law references several other relevant UAE federal laws, including: - Federal Law No. (1) of 1972 on the Competencies of Ministries and Powers of the Ministers - Federal Law No. (26) of 1981 on Maritime Commercial Law - Federal Law No. (3) of 1987 promulgating the Penal Code - Federal Law No. (35) of 1992 promulgating the Code of Criminal Procedure - Federal Law No. (19) of 1993 on the Delimitation of the Maritime Zones - Federal Law No. (21) of 1995 on Traffic - Federal Law No. (23) of 1999 on Living Aquatic Resources - Federal Law No. (24) of 1999 on Environmental Protection - Federal Decree-Law No. (1) of 2001 on Land and Sea Border Protection - Federal Law No. (28) of 2001 on the Emirates Authority for Standardisation and Metrology - Federal Law No. (23) of 2006 on Civil Defence - Federal Law No. (24) of 2006 on Consumer Protection - Federal Decree-Law No. (2) of 2011 on the National Emergency and Crisis and Disasters Management Authority - Federal Decree-Law No. (6) of 2011 on the General Authority of Ports, Borders and Free Zones Security - Federal Law No. (9) of 2011 on Land Transport - Federal Law No. (2) of 2015 on Commercial Companies - Federal Law No. (8) of 2015 on the Federal Customs Authority - Federal Law No. (19) of 2016 on Combating Commercial Fraud (Federal Law on Petroleum Products Trading, 2017)
Source Documents
The source for this analysis is the full text of Federal Law No. (14) of 2017 on Petroleum Products Trading.
Source Documents
This article analyses Federal Law on Petroleum Products Trading 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.