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UAE

Federal Law Regulating the Strategic Stock of Food Commodities in the State

Analysis of Federal Law Regulating the Strategic Stock of Food Commodities in the State (Federal Law, ) — covering scope, key definitions, obligations, penalties, and interaction with other UAE legislation.

Legislation Details

  • Full Title: Federal Law Regulating the Strategic Stock of Food Commodities in the State
  • Law Type: Federal Law
  • Law Number: 3 of 2020
  • Issued Date: 30 Mar 2020
  • Effective Date: 01 Apr 2020
  • Official Gazette: No. 675
  • Sector: Economy and Business
  • Status: Active
  • Number of Articles: 30
  • Chapters/Parts: 0
  • Amendments: 0

Summary

This Federal Law regulates the strategic stock of food commodities in the United Arab Emirates. Its purpose is to ensure the availability and security of essential food supplies, especially in times of emergency, crisis, or disaster. The law imposes obligations on food providers and registered vendors to maintain a safe stock level, facilitate distribution during crises, and comply with storage and reporting requirements. Penalties are established for non-compliance, and incentives may be granted to encourage participation. The law empowers the Ministry of Economy and other competent authorities to oversee the strategic stock system. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 1-13)

What is the scope and purpose of this law?

The law applies to food providers and registered vendors of food commodities in the UAE. It regulates the strategic stock of food commodities, which are defined as the specified quantities of food items required to be stored under the provisions of this law. The purpose is to ensure the availability and security of essential food supplies, especially in times of emergency, crisis, or disaster. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 1-2)

What are the key definitions under this law?

The law provides the following key definitions:

  • State: United Arab Emirates
  • Ministry: The Ministry of Economy
  • Competent Entity: The government federal or local entity authorized to organize, supervise or control the strategic stock of food commodities
  • Authority: National Emergency, Crisis and Disasters Management Authority
  • Warehouse: The place dedicated by the registered vendor to store food commodities as a strategic stock
  • Food Commodities: All food commodities as determined by the Ministry
  • Strategic Stock of Food Commodities: The specified food commodities and quantities required to be stored
  • Safe Stock: The minimum percentage of the strategic stock that must be maintained
  • Provider: The producer or importer who supplies food commodities
  • Registered Vendor: Any licensed business dealing in food commodities in the UAE
  • Register: The registry where providers and vendors are recorded

(Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 1)

What are the main obligations and requirements?

The law imposes the following key obligations on providers and registered vendors: 1. Maintain the safe stock level of food commodities as specified. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 5(1)) 2. Supply the strategic stock of food commodities upon request. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 5(2)) 3. Electronically connect with the competent entity and the Authority to enable continuous monitoring of the strategic stock. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 5(3)) 4. Comply with resolutions issued by the competent entity. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 5(4)) 5. Distribute the strategic stock during emergencies, crises or disasters as per plans prepared by the Authority. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 5(5))

What licensing, registration, or approval requirements exist?

The law requires providers and vendors to be registered in a registry established by the Minister of Economy after coordination with the competent entity. The conditions and procedures for registration are to be determined by a ministerial resolution. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 4)

Which authorities or bodies are responsible for enforcement?

The key authorities and their roles under this law are: 1. The Ministry of Economy: Proposes policies, plans and programs; coordinates with other entities; supervises databases and compliance; and reports to the Cabinet. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 3) 2. The Competent Entity: A government federal or local entity authorized to organize, supervise or control the strategic stock of food commodities. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 1, 3, 5) 3. The National Emergency, Crisis and Disasters Management Authority: Collaborates with the Ministry and Competent Entity on policies and distribution plans. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 3, 5) 4. Employees granted judicial officer powers: Empowered to prove violations of the law and regulations. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 10)

What are the penalties for non-compliance?

The law establishes the following penalties for violations: 1. Violation of Article 5(1), 5(2) or 5(4): Fines of not less than AED 500,000 and not more than AED 2,000,000. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 9(1)) 2. Violation of Article 5(3) or Article 6: Fines of not less than AED 100,000 and not more than AED 1,000,000. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 9(2)) 3. Violation of Article 5(5): Fines of not less than AED 1,000,000 and not more than AED 5,000,000. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 9(3)) 4. Penalties are doubled in cases of recidivism. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 9(4))

What incentives and facilities may be granted?

The law states that incentives and facilities may be granted to providers and registered vendors according to conditions and requirements to be specified in a Cabinet resolution, based on a proposal from the Minister and coordination with the competent entity. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 7)

How does this law interact with other UAE legislation?

The law references and builds upon several other UAE federal laws, including: - 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. 18 of 1981 concerning the Regulation of Trade Agencies - Federal Law No. 5 of 1985 Promulgating the Civil Transactions Law - Federal Law No. 3 of 1987 Promulgating the Penal Code - Federal Law No. 35 of 1992 Promulgating Penal Procedures Code - Federal Law No. 18 of 1993 Promulgating the Commercial Transactions - Federal Law No. 28 of 2001 Concerning Setting up of Emirates Specifications and Standards Authority - Federal Law No. 17 of 2004 on the Combating of Commercial Concealment - Federal Law No. 17 of 2006 Establishing the Supreme Council for National Security - Federal Law No. 24 of 2006 Concerning the Consumer Protection - Federal Law by Decree No. 2 of 2011 Establishing the National Emergency, Crisis and Disasters Management Authority - Federal Law No. 4 of 2012 on the Regulation of Competition - Federal Law No. 2 of 2015 concerning Commercial Companies - Federal Law No. 10 of 2015 on Food safety - Federal Law No. 10 of 2018 for Products safety - Federal Law No. 19 of 2016 on Combating the Commercial Fraud (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Preamble)

When did this law come into effect?

This Federal Law No. 3 of 2020 Regulating the Strategic Stock of Food Commodities in the State was issued on 30 March 2020 and came into effect on 1 April 2020, the day following its publication in the Official Gazette No. 675. (Federal Law Regulating the Strategic Stock of Food Commodities in the State, 2020, Art. 13)

Source Documents

This article analyses Federal Law Regulating the Strategic Stock of Food Commodities 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.

Written by Sushant Shukla

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