Legislation Details
- Full Title: Federal Law on the Rules and Certificates of Origin
- Law Type: Federal Law
- Law Number: (11) of 2019
- Issued Date: 19 Dec 2019
- Effective Date: 31 Jan 2020
- Official Gazette: No. 669
- Sector: Industry and Technical Standardisation
- Status: Active
- Number of Articles: 41
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law regulates the rules and procedures for identifying the country of origin of commodities in the UAE. It establishes the criteria for determining whether a product is considered "wholly obtained" or "wholly processed, produced or manufactured" in a particular country. The law also outlines the requirements for issuing certificates of origin, verifying the validity of certificates, and controlling the application of rules of origin. The legislation is important for businesses and individuals engaged in international trade, as it governs the documentation and verification processes necessary to claim preferential treatment for UAE-origin exports or imports. (Federal Law on the Rules and Certificates of Origin, 2019)
What is the scope and purpose of this law?
The purpose of this Federal Law is to regulate the rules and procedures for identifying the country of origin of commodities in the UAE. It applies to all imported and exported goods, as well as those re-exported from the UAE. The law establishes the criteria for determining whether a product is considered "wholly obtained" or "wholly processed, produced or manufactured" in a particular country, in order to establish its country of origin. (Federal Law on the Rules and Certificates of Origin, 2019, Art. 2-3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: United Arab Emirates
- Ministry: The Ministry of Economy
- Department: Competent Department at the Ministry
- Customs Departments: Local Customs Department in each Emirate
- Chamber: Chambers of Commerce & Industry in the UAE
- Commodities: Materials and Products
- Materials: Any items, raw materials or components or parts and others, which are used in manufacturing the product
- Products: Products which have been manufactured even if used in other manufacturing processes
- Manufacturing: All processes of operation or processing including the assembly operations or certain operations
- Customs Value: Value of a commodity as stated by the customs law in the UAE
- Rules of Origin: Basics which identify the country of origin of the commodity subject to this law or conventions
- Certificate of Origin: A document identifying the country of origin concerning the commodity
- Preferential Origin: Country of origin identified according to the conventions in order to give the commodity a preferential treatment at the export or import
- Non-Preferential Origin: Country of origin identified according to the general application of rules of origin without giving the commodity a preferential treatment at the export or import
- Label of Origin: Any statement points to or indicates that the commodities had been manufactured or produced in a country, whether stated on the commodity itself or on its cover in non-removable manner
- Conventions: International or regional or bilateral conventions to which the UAE is a party
- Country of Origin: Country in which the commodity is produced or manufactured or extracted in accordance with the rules of origin
- Preferential Treatment: Granting the commodities a relief or reduction from customs fees or granting them any other benefits at the import or export as identified by provisions of the conventions
(Federal Law on the Rules and Certificates of Origin, 2019, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: 1. Imported commodities must prove their country of origin by providing a certificate of origin or other documents issued by the competent authority in the export country, or by a non-removable label of origin on the product. (Art. 5) 2. The Ministry of Economy must issue preferential certificates of origin for UAE-origin exports, while the Chambers of Commerce & Industry must issue certificates of origin for foreign goods re-exported from the UAE. (Art. 6) 3. The Department at the Ministry of Economy must establish a register to record all preferential and non-preferential certificates of origin and keep copies for at least three years. (Art. 8) 4. The Customs Departments may reject granting preferential treatment to imported products if there are serious doubts about the validity of the certificate of origin or the real origin of the goods. (Art. 9) 5. The Ministry of Economy must reply to requests for verification of preferential certificates of origin issued for UAE exports, and cooperate with the competent authorities in the importing countries. (Art. 12) (Federal Law on the Rules and Certificates of Origin, 2019)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements under this law. The key processes relate to the issuance of certificates of origin, which are handled by the Ministry of Economy and the Chambers of Commerce & Industry. (Federal Law on the Rules and Certificates of Origin, 2019)
What rights and protections does this law provide?
The law provides the following rights and protections: 1. Importers have the right to object to the Department's decision to reject granting a preferential certificate of origin, and to appeal the Department's decision to the Minister. (Art. 13) 2. The law prohibits the automatic invalidation of a certificate of origin due to simple differences between the data stated in the certificate and the customs clearance documents, as long as the documents are proven to be related to the provided products. (Art. 11) 3. The law also states that typographical or formal errors in the certificate of origin or customs clearance documents shall not justify the rejection of the document if such errors do not result in serious doubts about the validity of the data. (Art. 11) (Federal Law on the Rules and Certificates of Origin, 2019, Art. 11, 13)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this law are: 1. The Ministry of Economy, which is responsible for issuing preferential certificates of origin for UAE-origin exports and coordinating with the Chambers of Commerce & Industry. (Art. 6) 2. The Competent Department at the Ministry of Economy, which is responsible for establishing and maintaining the register of certificates of origin. (Art. 8) 3. The Customs Departments in each Emirate, which are responsible for verifying the validity of certificates of origin and the origin of imported products. (Art. 9) 4. The Chambers of Commerce & Industry, which are responsible for issuing certificates of origin for foreign goods re-exported from the UAE. (Art. 6) (Federal Law on the Rules and Certificates of Origin, 2019, Art. 6, 8, 9)
What are the penalties for non-compliance?
The law does not specify any penalties for non-compliance. It only states that the Customs Departments may reject granting preferential treatment to imported products if there are serious doubts about the validity of the certificate of origin or the real origin of the goods. (Art. 9) The law does not mention any other administrative or criminal penalties. (Federal Law on the Rules and Certificates of Origin, 2019, Art. 9)
What fees, charges, or financial provisions are specified?
The law does not specify any fees, charges, or financial provisions related to the issuance of certificates of origin or the application of rules of origin. (Federal Law on the Rules and Certificates of Origin, 2019)
What exemptions or exceptions apply?
The law states that as an exception to the general requirement to provide a certificate of origin or other documents proving the country of origin, commodities imported to the UAE may be exempted from this requirement in accordance with the cases determined by the Executive Regulation. (Art. 5) However, the law does not provide any further details on the specific exemptions or exceptions. (Federal Law on the Rules and Certificates of Origin, 2019, Art. 5)
How are disputes resolved under this law?
The law provides the following dispute resolution mechanisms: 1. Importers who have their request for a preferential certificate of origin rejected by the Department can object to the Director of the Department within 7 working days. The objection must be considered within 10 working days. (Art. 13) 2. If the objection is denied or the request is not replied to, the importer can appeal to the Minister within 10 working days. The Minister must decide on the appeal within 20 working days. (Art. 13) 3. The law also states that the Ministry of Economy must settle any disputes that may arise with importing or exporting countries regarding the application of rules of origin. (Art. 12) (Federal Law on the Rules and Certificates of Origin, 2019, Art. 12, 13)
What are the key deadlines and time limits?
The key deadlines and time limits specified in the law are: 1. Importers have 7 working days to object to the Department's decision to reject granting a preferential certificate of origin. (Art. 13) 2. The Department must consider the objection within 10 working days. (Art. 13) 3. Importers have 10 working days to appeal the Department's decision to the Minister. (Art. 13) 4. The Minister must decide on the appeal within 20 working days. (Art. 13) 5. The Department must keep copies of certificates of origin in the register for at least 3 years. (Art. 8) (Federal Law on the Rules and Certificates of Origin, 2019, Art. 8, 13)
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: - Federal Law No. (1) of 1972 on the Competences of Ministries and Powers of Ministers - Federal Law No. (5) of 1975 concerning the Commercial Register - Federal Law No. (1) of 1979 Concerning the Regulation of Industrial Affairs - Federal Law No. (18) of 1981 with respect to the Regulation of Trade Agencies - Federal Law No. (6) of 1983 with respect to identifying the fees imposed on certificates of origin for the national products of the UAE - Federal Law No. (3) of 1987 Promulgating the Penal Code - Federal Law No. (11) of 1992 Promulgating the Civil Procedures Code - Federal Law No. (35) of 1992 Promulgating Penal Procedures Code - Federal Law No. (37) of 1992 On Trademarks - Federal Law No. (18) of 1993 Promulgating the Commercial Transactions - Federal Law No. (18) of 1995 concerning Simple Crafts - Federal Law No. (22) of 2000 concerning the Establishment of the Union of Chambers of Commerce & Industry - Federal Law No. (17) of 2002 with respect to regulating and protecting industrial property rights - Federal Law No. (17) of 2004 on the Combating of Commercial Concealment - Federal Law No. (1) of 2006 on Electronic Commerce and Transactions - 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 the Commercial Fraud - Federal Law No. (1) of 2017 on Anti-Dumping and Countervailing & Preventive Measures (Federal Law on the Rules and Certificates of Origin, 2019)
When did this law come into effect?
This Federal Law on the Rules and Certificates of Origin was issued on 19 December 2019 and came into effect on 31 January 2020, as per the Official Gazette No. 669. (Federal Law on the Rules and Certificates of Origin, 2019)
Source Documents
This article analyses Federal Law on the Rules and Certificates of Origin 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.