WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 20 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. The UAE's position as the main commercial hub of th e Middle-East is due in great part to its 
relatively liberal trade regime.  Its MFN tariff is based on the GCC's Common External Tariff;  its rates averaged 5.1% in 2005, with the majority of rates at 5%.  The entire UAE tariff is bound, at 
ceiling rates (in general) averaging 15%.  The UAE has taken no anti-dumping, countervailing or 
safeguard actions. 
2. Customs procedures are simple and largely computerized, reflecting the authorities' policy to 
facilitate trade, which in the case of several emirates includes a large re-export industry.  Few 
technical regulations are implemented at the borde r; they are generally based on internationally 
accepted standards.  The exclusive "agency la w" – the UAE has no competition legislation – 
contributes to the segmentation of the domestic market  and to the high prices of  branded products;  it 
also constitutes a barrier to full GCC integration. 
3. The main characteristic of the UAE's export po licy is extensive reliance on free zones, from 
which 80% of non-oil exports originate.  These free zones are exempt from all the licensing, agency, 
"emiratization", national ownershi p, and other domestic regulati ons that apply to the customs 
territory. 
4. Federal procurement appears to be conduc ted competitively, and can be tendered 
electronically;  procurement by the other public bodies, including state-owned enterprises and municipalities, appears to be relatively opaque, with provisions varying from contract to contract.  
There is strong reliance on foreign companies, par ticularly to realize major projects for which local 
expertise is not available.  The UAE runs a larg e offset programme whereby defence suppliers must 
invest part of the contract value in local investment projects. 
5. State ownership in the economy remains exte nsive.  Nonetheless, several state-owned 
companies successfully compete worl dwide;  some of them are their own regulatory bodies.  The 
UAE has passed a number of laws relating to inte llectual property, and has stated its commitment to 
strengthening and enforcing intellectual property rights. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, and exclusive distribution rights 
6. A prerequisite for doing business in the UAE is having the appropriate licences 
(Chapter II(5)).  In particular, a ll entities carrying out trade must be in possession of a trading licence.  
An importer obtains this licence from the economic department of the emirate in which business is to take place;  licensing procedures and regulations vary from emirate to emirate.  The trading licence is valid only for the emirate in which it is issued;  it specifies the products that may be imported, as well 
as the activity of the licensee (e.g. importer, c onstruction company). The licensee is responsible 
before the court for any liability resulting from c onsumption of the product in the UAE, for example 
where products are found to be faulty or danger ous. Clearing agents, who mu st be GCC nationals,  
can clear imports only on behalf of the licensed im porters, and only those products mentioned on the 
licence.   United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 21 
 
 
7. Under the Commercial Companies Law, the trading licence can be obtained by either 
majority-owned UAE companies or by 100% foreign-owned branches of foreign companies.1  
However, a large percentage of  imports take place under the Trade Agencies Law, whereby the 
trading licence is held by exclusive commercial "agents".2  According to business sources, it is 
difficult to distribute imported products without a local agent.3   
8. Under the Trade Agencies Law, importing activities, and wholesale and retail distribution 
services, as well as the sale, display or rendering of a commodity or service in the UAE, are reserved for exclusive "agents".  An agent must be a UAE national, or a company owned by UAE nationals;  
must purchase products or services from foreign comp anies according to independent sale agreements 
and then resell to its clients as per other agreements, in its own name.  The agency agreement/contract 
specifies the agent, the principal (o wner of the trade mark or manufacturer of the brand), the area of 
coverage (one or several emirates ), and the brand and models of th e product that can be imported and 
sold exclusively by the agent. A ccording to the authorities, about 5,000 agencies were registered at 
the end of 2005, and about 30 requests for ne w agencies are received annually (Table III.1). 
Table III.1 
Commercial agencies by type of activity 
Activity   Number of registered agencies  
Engineering, electrical, mechanical, water desalination, and drai nage equipment 1,566 
Pharmaceutical and medical equipment 618 
Fire extinguishing, safety and security equipment 392 
Vehicles, heavy and light equipmen t, tools and repair equipment 386 
Cosmetics, perfumes, accessories, antiquitie s, gifts, tobacco, and jewellery   374 
Oil-production equipment 274 
Petrochemical, metallic products and oil and gas exploration equipment 230 
Electronics, electrical, and home appliances 223 
Building materials and equipment 188 
Air transport equipment 159 
Textiles, clothes, and leather products 141 
Foodstuff 113 
Furniture, furnishing and equipment for offices, shops and home materials, and appliances 112 
Animal, fishery, agricultural items, equipment, products, pesticides, and veterinary products  100 
Consultancies 86 
Shipping equipment 68 
Audio-visual, scientific, and photographic devices 64 
Office materials and equipment, laboratory instrume nts, systems, and educa tional games and toys 23 
Sport equipment and children toys 19 
Others 17 
Newspapers, advertising and printing equipment agents 15 
Packing, and stowing, including services 8 
Tools, hand-tools, equipment, and assorted items 3 
Total number of agencies by activity 5,179 
Source: Information provided by the Ministry of Economy and Planning. 
9. In order to benefit from exclusive import and distribution rights, the agency agreement must 
be registered with the Ministry of Economy and Planning (MEP). The registration costs Dh 5,000 (US$1,360), and is renewable annually against Dh 2,000 (US$545). Once an agency agreement 
registered, it cannot be terminated without the agent's approval (except after a decision by the 
                                                     
 
1 Federal Company Law No. 8 of 1984 (the Commercial Companies Law - CCL).     
2 Trade Agencies Law, Federal Act No. 18 of 1981, as amended by Law No. 14 of 1988.   
3 U.S. Department of State (2005).  Information on the share of total imports carried out by exclusive 
agents is not available. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 22 
 
 
Commercial Agencies Committee of the MEP), even if  the term of the agreement has been initially 
limited.  A contact may also be terminated by a d ecision in court. Business sources indicate that it is 
particularly difficult to terminate a registered agen cy; considerable compensation must be paid to the 
agent.4  As noted above, a foreign company may appoint an agent that is not registered in the MEP;  in 
this case, the contract cannot be defended in the court under the Trade Agencies Law.   
10. In general, the advantage for the foreign comp any of having an exclusive agent is a network 
of contacts, connection with someone with a good kn owledge of local customs and markets, and the 
availability of outlets to distribute the product.  Ho wever, the agent is entitled to prevent the products 
from being imported by others into the specified territory, which may, inter alia , contribute to 
exceptionally high retail margins on imported brande d products.  In October 2005, following price 
increases, the MEP exempted a list of basic food items from the coverage of the Trade Agencies 
Law.5   
11. The system of exclusive distribution rights pr ecludes the application of the principle of free 
movement of goods and services within the GCC cust oms union, of which the UAE is a member.  For 
example, a product cannot be re-expor ted to Dubai from Qatar if a UAE agent (not involved in this 
operation) already holds exclusive agency rights fo r that product in Dubai.  The GCC Customs Law 
states that:  "The prerequisite of obtaining an import license for importing any commodity into any of 
the GCC States shall be abolished because it goes into  conflict with the requirements of the formation 
of the GCC customs union and the principle of the single point of entry."  The Trade Agency Law 
does not apply to free zones (section (3)(v) below). 
(ii) Customs procedures   
12. Since the establishment of the GCC customs uni on on 1 January 2003, the UAE has been 
applying the GCC Common Customs Law, and its Rules of Implementation and Explanatory Notes.6  
Under the "single port of entry" principle, items imported in the UAE (or any other GCC State), and 
destined for another GCC market, are subject to cust oms duty only at the first point of entry into the 
GCC. Customs procedures and the required documentation are the same for all GCC members.7 
13. Each emirate has its own Customs authority bu t customs procedures are the same throughout 
the UAE, and customs requirements are kept to a minimum so as not to impair the UAE's active transhipment and re-export business.
8  Emirate's customs departments are regrouped into the Federal 
Customs Authority, set up in 2003.  Operators holding a trading licence are given an import code;  
clearing and forwarding agents clear imports of products authorized under that code. The required 
documents are the delivery order fro m the shipping agent, the original invoice and certificate of 
origin, the packing list, and the bill of lading.  The customs administration then collects the relevant 
customs duties.  A deposit or bank guarantee is re quired in the case of imports eligible for duty and 
tax concession (section (iii)(b) below).   
                                                      
4 U.S. Department of State (2005).   
5 Dry and condensed milk;  frozen and canned vegetables;  children's foodstuff and milk ;  chickens; 
cooking oil;  rice;  flour;  fish products; meat and meat products;  tea;  coffee; cheese; pasta (macaroni, 
vermicelli);  sugar;  and diap ers (Cabinet Decision N° 538/1). 
6 The Common Customs Law of the GCC States is available online at:  http://library.gcc-sg.org/ 
English/enew01.htm. 
 7 A description of the GCC customs procedures is available online at: http://www.gcc-sg.org/GCC-
Customs/gcc_cu01e.html.   
 8 The main Customs Offices are: Dubai Customs (http://www.dxbcustoms.gov.ae);  Abu Dhabi 
Customs (http://www.auhcustoms.gov.ae);  Sharjah Cust oms (http://www.sharjahcustom s.gov.ae);  and Fujairah 
Customs (http://www.fujairahcustoms.gov.ae/). United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 23 
 
 
14. About 80% of UAE imports are cleared by D ubai Customs and approximately 10% by Abu 
Dhabi Customs. At both Dubai and Abu Dhabi Custom s, the entire customs declaration can be made 
electronically.  In 2005, approximately 17% of Dubai Customs declarations were processed 
electronically.  As a result of computerization, customs clearance times in Dubai are reported as 
among the shortest worldwide (a few minutes);  in so me cases, clearance is possible before shipments 
arrive in Dubai, provided that cargo documents are on  time and in order.  One of the reasons for the 
rapid customs clearance is the quasi absence of inspections for conformity with technical regulations (section (vii));  as a result, clearance does not require physical examinations or technical controls.     
15. The UAE invoked Article 20.1 (on the five-year transition period available to developing 
countries) of the WTO Customs Valuation Agreemen t (CVA) to delay the full implementation of the 
Agreement until the end of 2003.  The federal custom s authorities  have confirmed that the CVA is 
now implemented by all emirates.
9  Nonetheless, technical assistance has been requested by the UAE 
to familiarize its customs administration and eco nomic operators with the CVA.  The UAE has 
notified the WTO that it does not currently apply mi nimum values to any products, with the exception 
of tobacco products, and does not use or plan to  use preshipment inspection services for customs 
valuation purposes.10  Customs tariffs are levied on the c.i.f. value of imports. 
16. At Dubai Customs, customs-related disputes that are not solved at the level of custom offices 
can be brought to the Valuation Directorate if they rela te to valuation, or to the Directorate of Tariff if 
they relate to classification.  No dispute regard ing valuation or classifica tion at Dubai Customs has 
ever been brought to a judicial court. The operator could also appeal to the World Customs 
Organization (WCO), of which the UAE is a member.     
(iii) Rules of origin 
17. The UAE has never made a notification to th e WTO Committee on Rules of Origin.  There 
have not been any disputes or complaints in the WTO regarding the rules of origin applied by the 
UAE.   
18. The UAE applies non-preferential and preferential rules of origin. As part of its obligations 
under the GCC customs union, the UAE applies the sa me non-preferential rules of origin as the other 
five GCC members with respect to imports from th ird countries. Under the non-preferential scheme, 
products are generally considered as originating fro m the country where they are wholly obtained or 
where they underwent substantial transformation, with  at least 40% of local value added.  A certificate 
of origin is required to clear imports.  It must be  produced by the original exporter and legalized by a 
recognized authority in the country of export.   
19. The UAE's preferential rules of origin are al so generally based on a value-added content 
criterion, but may differ according to the agreemen t (Chapter II(4)(ii) and (iii)).  For products 
imported from the Greater Arab Free-Trade Area (GAFTA), local value-added of at least 40% is required in order to qualify for preferential treatment.  It is important that origin rules be harmonized 
for past and future FTAs involving GCC Members. 
                                                     
 
9 WTO document G/VAL/N/4/ARE/1, 15 September 2004. 
 10 WTO document G/VAL/W/120, 27 May 2003. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 24 
 
 
(iv) Tariffs, other duties, and taxes 
(a) MFN tariffs  
20. The UAE has a low and simple MFN tariff (Table III.2);  all rates are ad valorem (except on 
tobacco), and there are no tariff quotas, no nuisance rates, and no other duties and taxes on imports.  Its tariff is based on the GCC's Common External Tariff (CET), which consists of an across-the-board rate of 5% together with a list of 421 tariff lines that are duty free amongst GCC countries, mainly 
agricultural raw materials and basic food produc ts, pharmaceutical produc ts, and other products 
including certain papers, books and magazines, unwr ought precious metals, vessels and airplanes;  in 
the case of the UAE, alcoholic beverages are subject  to a 50% tariff;  and the alternate tariff on 
tobacco products is 100% or Dh 100 per 100 sticks of cigarettes or Dh 800 per kg. of raw tobacco, 
whichever is higher.
11    
Table III.2 
Structure of the MFN tariff, 2005   
  2005 Bound rates 
1.   Bound tariff lines (% of all tariff lines) 100 100 
2.   Duty-free tariff lines (% of all tariff lines) 5.8 1.0 
3.   Non- ad valorem tariffs (% of all tariff lines)a 0.4 0.0 
4.   Tariff quotas (% of all tariff lines) 0.0 0.0 
5.   Non- ad valorem tariffs with no AVEs (% of all tariff lines)a 0.4 0.0 
6.   Simple average tariff rate 5.1 14.9 
 Agricultural products (WTO definition) b 6.2 24.0 
 Non-agricultural products (WTO definition)c 4.8 13.1 
 Agriculture, hunting, forestry and logging (ISIC 1) 3.3 16.7 
 Mining and quarrying (ISIC 2) 5.0 15.0 
 Manufacturing (ISIC 3) 5.2 14.7 
7   Domestic tariff "spikes" (% of all tariff lines)d 0.5 0.8 
8.   International tariff "peaks" (% of all tariff lines) e 0.5 0.8 
9.   Overall standard de viation of applied rates  5.6 16.8 
10. "Nuisance" applied rates (% of all tariff lines) f  0.0 0.0 
a Tariff lines that are missing, or for which no rate was available. 
b WTO Agreement on Agriculture. 
c Excluding petroleum. 
d Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). 
e International tariff peaks are defined as those exceeding 15%. 
f Nuisance rates are those greater than zero, but less than or equal to 2%. 
Source: WTO Secretariat calculations, based on data provided by the Emirates authorities. 
21. The overall average MFN applied tariff is 5.1%.  The coefficient of variation is 1.1 (with a 
standard deviation of 5.5), reflecting the fact that  tariffs range from zero to 100% (Table AIII.1).  
Tariffs average 6.2% on agricultural products (WTO definition), and 4.8% on non-agricultural 
products. Using ISIC (Revision 2) definition, manufacturing, and mining and quarrying receive 
almost the same average level of protection, at 5.2% and 5%, respectively; the average tariff for 
agriculture is 3.3%.   
22. In aggregate, the UAE's tariff displays positive escalation, from first-stage processed 
products, with an average tariff of 4%, to semi-finish ed goods, with an average rate of 4.9%, and fully 
processed products, on which tariffs average 5.4%.  This positive tariff escalation stems from the 
lower tariffs applied (on average) to agricultural raw materials.  In most industries, tariffs are uniform 
from the first to the final stage of processing (Chart III.1).  Otherwise, tariff escalation is mixed 
                                                      
11 The tariff rate on alcohol was imposed under a Cabinet resolution (No. 141/4).   United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 25 
 
 
(negative from the first to the second stage, and th en positive) in food and be verages, reflecting the 
high rates on tobacco and spirits.  Escalation is slightly negative in chemicals and in paper and 
printing, because of duty-free imports of pharmaceuticals and certain books;  it is also slightly negative in basic metal industries, with duty-fr ee imports of unwrought pr ecious metals, and in 
fabricated metal products because of duty-free imports of vessels and airplanes.   
0.01.02.03.04.05.06.07.08.09.010.0Chart III.1
Tariff escalation by ISIC 2-digit industry, 2005
Per cent
Sourc e: WTO Secretariat estimates, based on data provided by the United Arab Emirates authorities.
All product s
Food, beverages
Textiles,
apparel
Wood products
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other manufac -
turingNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
 
23. The UAE bound all its tariff lines at ad valorem  rates;  the final bound rates range from zero 
to 200%.  The majority of tariff lines (79% of the to tal) were bound at a final rate of 15%;  some  19% 
of lines were bound at 10% or less, while 1% of lines (covering items such as organic chemicals and 
pharmaceutical products) were bound at zero.  Some 0.8% of lines (covering alcoholic beverages and 
tobacco products) carry a bound ra te of 200%.  The simple aver age final bound rate is 14.9%, 
compared with a simple average applied MFN rate of 5.1% in 2005 (Table III.2).  For most products, 
including all agricultural products, the final rates we re implemented with immediate effect;  for 13.4% 
of lines however, the final bound rates are to enter into force after ten years (i.e. April 2006), and for 
0.6% of lines after 15 years (April 2011).  For most products, MFN applied rates are well below the final bound rates;  however, on 33 tariff lines at the HS eight-digit level, the applied MFN rate of 5% 
is above the final bound rate of zero (as of April 2006).
12  According to the authorities, this has 
resulted from the implementation of the GCC tariff in  2003, with rates higher than those previously 
levied or bound by the UAE.   
                                                      
12 The HS codes are:  29011010, 29011020, 29011030, 29011040, 29011050, 29011060, 29011090, 
29012100, 29012200, 29012300, 29012400, 29012910, 29012920, 29012930, 29012940, 29012950, 29012960, 
29012990, 29021100, 29021900, 29022000, 29023000, 29024100, 29024200, 29024300, 29024400, 29025000, 
29026000, 29027000, 29029010, 2 9029020, 29029090, and 30068000. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 26 
 
 
(b) Duty and tax concessions and exemptions 
24. Industrial inputs such as equipment, spare part s, raw and semi-manufactured materials, and 
packing materials necessary for industrial produc tion are exempted from duty under a federal law 
relating to industry assistance (section (4)(i) and Box III.1). These "privileges and exemptions" are 
specific to the UAE and may therefore differ from one GCC State to another. The exemptions are 
industry and company specific, and apply to producti on for both the domestic and export markets.    
25. Duty and tax concessions are also granted under the "import for re-export", "temporary 
admission", or "transit" regimes.  Importers using the "import for re-export" regime make a deposit or 
provide a bank guarantee in lieu of duty;  the depos it or bank guarantee is refunded/released on proof 
of re-export. Goods remaining in the UAE after 180 days are liable to duty payment. The same 
documentation is required for goods declared under "temporary admission", such as goods imported 
for exhibitions, equipment used in construction, scientific research, development projects, and items 
for repair or maintenance, except that the goods mu st be re-exported within a maximum of three years 
of import.  Importers do not need to hold a trading licence if they are engaged in re-export, temporary 
admission, or transit. 
26. Consignments, received on a "through-bill-of-ladin g", consigned to a destination outside the 
UAE and dispatched overland, are cleared on a "tra nsit bill".  A deposit or guarantee is required by 
Customs, and is refunded on proof of exit of the goods  out of the UAE within 30 days of the date of 
the transit bill.  If the consignment is dispatched by sea, directly from the port (ship-shore-ship or ship 
to ship), the goods are clear ed on a trans-shipment bill. 
27. Duty-free imports are also allowed for, inter alia , international organizations, diplomatic 
missions, the armed forces, poli ce, and charity institutions.13  There is currently no duty-drawback 
scheme, although this is permissi ble under Article 16 of the Executive Supplementary Notes to the 
GCC Common Customs Law.   
(c) Tariff preferences 
28. In principle, products from a GCC member circ ulate free of duty across the Customs Union, 
including the UAE.  Imports originating from the other members of GAFTA enter the UAE duty-free, 
with the exception of tobacco products and a ll alcoholic products excluded from the GAFTA 
preferential provisions.   
(v) Import prohibitions, licensing, and controls 
29. The GCC Common Customs Law distinguishes abso lute import prohibitions from restricted 
imports.  Each GCC state determines its own list of  prohibited or restricted products, although GCC 
members are currently working on the development of a common list.  Imports that are prohibited in 
some member States and permitted in others must not transit through the member states in which they 
are prohibited.    
30. In the UAE, absolute import prohibitions are maintained for various reasons, including 
international conventions, envir onmental protection, health and safety, and religious and moral 
considerations.  They cover all kind of drugs;  asbest os;  used pneumatic tyres;  industrial waste;  
forged and duplicate currency;  "Habara" falcons;  ivory and rhinoceros horn;  live camels;  any 
                                                      
 13 Section VIII of the Common Customs Law of GCC St ates specifies those agencies and goods exempt 
from duty, such as the diplomatic corps, military forces , personal effects, imports by charitable societies, and 
returned goods. United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 27 
 
 
printed material that does not adhere to religion or  morals that is aimed at causing corruption and 
disorder;  or materials prohibited under any law in fo rce in the country (Table III.3).  All imports from 
Israel are prohibited.  
Table III.3 
Prohibited products, 2005  
HS headinga Product/description Reasons for prohibition Authorizing 
agency 
0908; 1302; 1207; 1211; 
2939 Narcotics Federal Law No. (6) of 1986;  Dubai Customs Admin;  
Circular No. 1782 of 1982; G overnment Decision of 1966 MI 
MJ 
MH 
MAF 
 Counterfeit money 
4907.0031 Banknotes in circulation 
4907.0032 Banknotes not yet in legal circulation 
7118  Coins  Government Decision of 1966 
Federal Law No. (10) of 1980 CB 
 Decision by Israel Boycott Office 
prohibiting goods from Israel, bearing 
Israeli marks or logos Federal Law No. (15) of 1972 MEP 
0507.1000 Crude ivory (ivory) and rhinoceros' 
horn Decision by Crown Prince Sheikh Maktoum Bin Rashid on 
28 May 1989 MEP 
9504.3000 Gambling tools and machineries  MI 
5608.1100 3-layer nylon fishing ne ts Decision by the Ministry of Agriculture and Fisheries 
No. (34) of 1988;  Counsel of Ministers Decree No. (173/9) 
of 1988 MAF 
49 
701 
9702.0000 
9703.0000 Printed matter, oil painting, 
photograph, pictures, cards, books, 
magazines, and stone sculptures that 
contradict Islamic teachings, decency 
or deliberately imply immorality or turmoil 
9701 9702 
9703 Works of art that contradict  the 
Islamic teachings, decency or 
deliberately imply immorality or turmoil Ministry of Information Decisi ons Nos (75), (31) and (156) 
of 1988, 1986 and 1996 respectively MIC 
4012 Used and reconditioned tyres   MFI 
1704.9090 Candies in cigarette form  M 
 Children's toys in form of dinosaur, 
etc. consisting of lead 
9503.4100 Toys representing animals or non-
human creatures, stuffed 
9503.4900 Toys representing animals or non-
human creatures, not stuffed Decision No.  (53/2/60/2003) M 
MEP 
MH 
MAF 
0106.3100 Falcon hunting is prohibited from 
September until March each year 
except for:  
falcons with permits under CITES Convention;  
falcons bearing passports;  and 
sick falcons arriving for treatment with permits from the Environment 
Research Authority Ministerial Decree No. (166/94);  Ministry of Interior 
Decision No. (1/43) of 2003;  Mi nistry of Interior Decision  
No. (1631) of 1998 MAF 
ADP 
FEA 
2928 Ozone layer depleting substances  
2903 Halogenated derivatives of 
hydrocarbons 
2908.1000 Halogenate d, sulphonated or 
nitrosated derivatives of phenols or 
phenol-alcohols containing only 
halogen substitutes and  their salts Decision by Chairman of Federal Environment Authority  
No. (13) of 1999 FEA
MH
MEP
C 
 Radiation-polluted substances  Federal Decree  No. (1) of 2002 MH
ME
FEAMIC 
  Table III.3 (cont'd) 
 WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 28 
 
 
HS headinga Product/description Reasons for prohibition Authorizing 
agency 
6811 Sheets and pipes of asbestos-cement Part of Fe deral Law No. (24) of 1999, in accordance with 
the system for circulation of dangerous materials and refuse MH 
M 
9013.2000 Laser pens  MI 
 Dangerous trash Part of Federal Law No. (24) of 1999, in accordance with 
the system for circulation of dangerous materials and refuse  MH 
M 
FEA 
2403.1030 Chopped or compressed tobacco (pan) Local Ordina nce by Sheik Hamdan Bin Rashid  No. (98) of 
1996 M 
C 
1602.4  Swine and its products Ministry  of Economy and Commerce Decision 
No. (4/7/1234/79);  Dubai Customs C 
7326.2020 Steel wire articles for fishing Ministry of  Agriculture and Fisheries Decision No. (34) of 
1991 MAF 
7204 Ferrous waste and scrap 
7404.0000 Copper waste and scrap 
7503.0000 Nickel waste and scrap 
7602.0000 Aluminium waste and scrap 
7802.0000 Lead waste and scrap 
7902.0000 Zinc waste and scrap 
8002.0000 Tin waste and scrap 
8101 - 8112 Waste and scrap of other base metals 
8548.1000 Waste and scrap of primary cells, 
primary batteries and electric 
accumulators;  spent primary cells, 
spent primary batteries and spent 
electric accumulators Customs Notice No.  (6/2003);  Counsel of Ministers 
Decree No. 1/294 of 2003 MFI 
a For reasons of space, not all HS Codes are reproduced .  These are contained in the underlying regulations. 
ADP:  Abu Dhabi Police  
C:   Customs 
CB:  Central Bank 
FEA: Federal Environment Authority 
M:   Municipality 
MAF:  Ministry of Agriculture and Fisheries 
ME:  Ministry of Energy 
MEP:  Ministry of Economy and Planning 
MFI: Ministry of Finance and Industry MH:  Ministry of Health MI:  Ministry of Interior MIC:  Ministry of Information and Culture MJ:  Ministry of Justice 
Source: Dubai Customs. 
31. In April 2000, the UAE notified the Committee on Import Licensing Procedures that there are 
no import licensing requirements in the UAE.14  Nonetheless, certain goods require prior authorization 
for, inter alia , health, security, moral, religious, and safety control purposes (Table AIII.2). 
Companies may be granted an import permit upon appli cation to the relevant ministry or entity.   
(vi) Contingency trade remedies 
32. The UAE has not taken any anti-dumping, countervailing or safeguard actions since 
becoming a Member of the WTO in 1996.  It has no  national laws and/or re gulations on contingency 
trade remedies.15  However, the UAE has adopted the provisions on anti-dumping, countervailing, and 
safeguard measures contained in the GCC Treaty;  im plementing regulations have yet to be finalized. 
                                                      
14 WTO document G/LIC/N/3/ARE/1, 25 April 2000.   
 15 WTO documents G/ADP/N/1/ARE/1, 26 March 1997; G/SCM/N/1/ARE/1, 26 March 1997;  and 
G/SG/N/1/ARE/1, 27 March 1997. United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 29 
 
 
(vii) Standards and other technical requirements 
33. Technical regulations (as defined in Annex I of the WTO Agreement on Technical Barriers to 
Trade (TBT Agreement)) and SPS measures (as de scribed in Annex I of the Agreement on the 
Application of Sanitary and Phytosanitary Measu res (SPS Agreement)) are generally issued by 
Ministerial decree.  The UAE has not made any notification to the TBT Committee since becoming a 
WTO Member in 1996.  The UAE has largely harmonized its policie s and regulations on 
standardization and technical regula tions with other GCC Members.   
(a) Standards, testing, and certification 34. The Emirates Authority for Standardization an d Metrology (ESMA) was established by law 
in 2001 as a governmental body.
16  A new organizational structure was approved in January 2005. The 
law provides for ESMA to become financially an d administratively inde pendent, with revenues 
increasingly from, inter alia , sales of standards, conformity assessment programmes, accreditation, 
and quality marks.  ESMA is managed by a Board of Di rectors chaired by the Minister of Finance and 
Industry.  The law also sets out provisions on the issuance of standards, technical regulations, and 
conformity assessment. Its aim is health, safety and environmental protection by ensuring that 
imported or domestically produced goods meet the UAE standards.  ESMA is the sole body 
responsible for setting standards in the UAE, and is  one of the federal bodies that establish technical 
regulations (the latter can also be set at emirat e level).  Its departments deal with compliance, 
accreditation, standards, and metrology.  ESMA is the WTO national enquiry point, and, according to 
the authorities, has accepted the WTO Code of Go od Practice for the Preparation, Adoption, and 
Application of Standards.  ESMA is a member of the International Organization for Standardization 
(ISO), of Codex Alimentarius, and (through ENAS  (see below)) of the International Laboratory 
Accreditation Cooperation (ILAC).  
35. The Government's priority is to align nati onal standards on international norms.  ESMA has 
1,810 standards in place, of which 95% are based  on GCC standards as set by the Gulf Standards 
Organization (GSO), and some 5% are UAE standa rds.  In general, GCC standards are based on 
international standards. About 30% of the 1,810 standards in force in the UAE are compulsory 
(technical regulations).  All standards, includi ng technical regulations, are published in the Official 
Gazette ;  they are also available on demand from ESMA.   
36. In the absence of national standards on any type of products, suppliers may declare 
compliance to internationally accepted standards17;  self-declaration is accepted.  The only conformity 
assessment programme in place within the UAE is the Emirates Conformity Assessment Scheme 
(ECAS), a voluntary programme under the authority of ESMA.  Currently, ECAS applies to the following regulated products: toys, detergents, pain ts, lubricant oils, and automotive batteries.  For 
each regulated product, the applicant must subm it a registration application, supported by a 
declaration of conformity to the applicable standa rds. Test reports issued by one of the accredited, 
approved, and recognized laboratories should be pr ovided with the application. ESMA reviews the 
submitted information, makes a decision on the leve l of conformity, and issues a certificate of 
conformity.   
37. The conformity assessment procedure on passenger vehicles and tyres consists of self-
declaration to the GSO by producers or suppliers fo r approval.  Imports of other products may require 
                                                     
 
16 Federal Law No. 28 of 2001.  See ESMA online information.  Available at:  http://www.uae.gov.ae/ 
esma/.  
17 Ministerial Decision No. 2/114 of 2004. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 30 
 
 
certificates, inspection, or mark et surveillance under such bodies as  the Ministry of Health, the 
Ministry of Agriculture, the Ministry of Energy, or emirate governments.  
38. The Emirates National Accreditation System (ENAS) was established in 2004 to accredit 
testing and calibration laboratories, and certification and inspection bodies.18  ENAS is also under the 
authority of ESMA, although current plans are to make it independent.  In addition, the Dubai 
Municipality's Accreditation Center accredits private commercial laboratories that provide testing or 
calibration services to Dubai Municipality projects.19  Both ENAS and the Centre are members of 
ILAC.  The UAE has not concluded any mutual recognition agreements. 
(b) Sanitary and phytosanitary measures 
39. The WTO national enquiry point for SPS measures is the Ministry of Agriculture and 
Fisheries (MAF), which is also the national notif ication authority.  The MAF is in charge of 
inspection of all imports, exports, a nd domestic production of plants, an imals, and their products.  The 
UAE has made a total of twelve SPS notifications  since becoming a Member of the WTO.  All 
notifications were made in 2004 and 2005 (Table II.2).  One of the 2004 notifications concerned 
general legislation on animal welf are to be adopted by the UAE.20  Recent notifications relate mostly to 
import bans on birds and their products because of bi rd flu.  Since 1995, no specific trade concerns 
have been raised concerning SPS measures maintained by the UAE.21  The UAE is a member of the 
World Organization for Animal Health (OIE), the International Plant Protection Convention (IPPC), 
and Codex Alimentarius.22   
40. All SPS regulations are federal.  Under Federal Law No. 5 of 1979 (Plant Quarantine Law of 
GCC countries), all imports of plants and plant pr oducts are subject to an agricultural quarantine 
system.23  In addition, agricultural consignments ar e not permitted to enter the country unless 
accompanied by a phytosanitary certificate issued by  the competent authority in the exporting country 
and attested by an Arab country's embassy in the exporting country.  Imports of certain food products 
(e.g. canned food) are exempt from phytosanitary  certificates.  Phytosan itary certificates do not 
appear to be required to attest absence of radiation, dioxin, or cyclamate.   
41. The Department of Veterinary Quarantine at the MAF,  in cooperation with municipalities, is 
in charge of authorizing imports of animals and their products, animal feeds, and additives.24  A l l  
consignments of animals, their products or offal re quire:  an official veterinary health certificate 
issued by the exporting country, and describing the di stinctive marks of the consignment, its origin, 
evidence that it has been checked di rectly before shipment and found free of epidemic and contagious 
diseases, and duly attested by an Arab country's em bassy;  and a report by the captain of the plane, 
ship or carrier attesting that they have not been in  contact with any infected animals of contagious or 
epidemical diseases, or passed thr ough infected areas during their journey.  For slaughtered animals, a 
                                                      
18 ENAS online information.  Available at:  http://www.ae/enas. 
19 Information on the Accreditation Center is ava ilable at:  http://ugn.dm.gov.ae/DMEGOV/dm-mp-dcl. 
20 G/SPS/N/ARE/3, 29 July 2004.  See UAE Agricultu re Information Centre online information.  
Available at:  http://www.uae.gov.ae/uaeagricent/.  
21 Under the WTO Agreement on Sanitary and Phyt osanitary Measures, Members have the possibility 
to raise concerns regarding SPS measures maintained by other Members.  An explanation of the reasons for 
such measures may be requested and should be provided by the Member maintaining the measure.   
22 WTO document, G/SPS/GEN/49/Rev.6, 9 June 2004.   
23 This law is available onlin e at: http://www.uae.go v.ae/uaeagricent/RULES _REGULATIONS/law/ 
Federal5_e.doc. 
24 Federal Law No. 6 of 1979, concerning veterinary quarantine, as amended in 1992.  Available at: 
http://www.uae.gov.ae/uaeagricent/RULES _REGULATIONS/federal_rules_e.stm. United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 31 
 
 
certificate from an Arab country's embassy in the e xporting country (if available) should attest that 
they were slaughtered according to Islamic law. 
42. The Ministry of Health also regulates certain im ports of food (Table AIII.2).  Imports of drugs 
and medicines must be registered with the Technical Affairs Section of the Drug Control Department 
at the Ministry of Health, in acco rdance with Articles 40, 41, 61, and 65 of Federal Law No. 4 of 1983 
on the pharmaceutical profession and institutions.  
(c) Marking, labelling, and packaging 
43. ESMA is currently updating its packaging and product labelling standards on the GSO norms.  
There is currently no compulsory labelling legislati on, except on food.  New legislation is expected in 
2006 on the labelling of chemicals and other industrial products.   
44. Food labels must contain product and brand nam es, production and expiry dates, country of 
origin, name of the manufacturer, net weight in metr ic units, and the list of ingredients and additives 
in descending order of proportion.25  All fats and oils used as ingredients must be specifically 
identified on the label. Arabic labelling is  required and can be applied by sticker.26  GCC shelf-life 
requirements on 11 goods reportedly specify that all processed products must carry both production 
and expiry dates on the original label.  In addition, at least half of the shelf-life of all imported food 
products must remain in effect for import clearance to be granted;  however, according to ESMA, this 
requirement was abolished in 2004.  
45. There are currently no provisions on the use, production, internal or external trade of 
genetically modified organisms (GMOs).  Ac cordingly, there are no marking or labelling 
requirements for products containing GMOs.  
(d) Environmental-related trade measures 
46. The UAE prohibits the import of certain products  for environmental or health reasons, or in 
accordance with international conventions on, inter alia , transboundary movements of hazardous 
wastes and their disposal (Basel Convention), chem icals (Rotterdam Convention on prior informed 
consent), and products of animals and plants (A ppendices I, II and III of CITES convention).  Federal 
Law No. (24) of 1999 specifies that "No public or pr ivate party or qualified or  unqualified persons are 
allowed to import or bring, bury or dispose of hazardous wastes in any form in the UAE".  The 
handling of hazardous chemicals and waste in th e UAE falls under the Regulation on Handling of 
Hazardous Substances, Hazardous  Wastes and Medical Wastes. 
47. Over the past ten years, the UAE has establishe d four institutions with the primary purpose of 
protecting the environment27:  the Federal Environmental Agency (FEA), established in 1993;  the 
Environment Agency in Abu Dhabi (formerly the Environmental Research and Wildlife Development 
Agency - ERWDA), established in 1996; the Environmental and Protected Areas Authority, in Sharjah, established in 1998;  and the Envir onmental Protection and Industrial Development 
Commission (in Ra's al-Khaimah), es tablished in 1999.  Their activities do not have a direct impact on 
trade, except for issues related to the inte rnational conventions mentioned above.   
48. No taxes are levied for environmental purposes. 
                                                     
 
25 GCC Technical Regulation No. 9 of 1995. 
26 Further information available at:  http://www.buyusainfo.net/docs/x_3675466.pdf. 
27 Federal Environmental Law No. 24 of 1999. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 32 
 
 
(viii) Government procurement 
49. National accounts data show that consolidat ed government expenditures on goods and 
services amounted to Dh 24.3 billion (US$6.6 billion), or 6.4% of the UAE's GDP in 2004.  However, 
these figures understate the importance of public proc urement, as they do not include purchases in the 
context of development projects, or procurement by state-owned companies.  Despite provisions 
favouring local suppliers, there is a strong relian ce on foreign companies, particularly for major 
projects for which local expertise is not available.  According to certain business sources, provisions of the procurement regime may va ry from contract to contract.
28  The UAE is neither a member of nor 
an observer to the WTO Plurilateral Ag reement on Government Procurement. 
50. The regulation on federal government procuremen t is Ministerial Decision No. 20 of 2000 on 
the administration contracts system.  Total federal expenditure under the Decision reached 
Dh 527 million (US$143 million) in 2004.  This D ecision does not apply to purchases by the Ministry 
of Defence or those related to the State Security System;  or to purchases for any "projects" handled 
by the Permanent Project Committee;  or to any project excluded from the ambit of the regulation by a resolution or law passed by the Council of Ministers.   
51. The Department of Purchases at the Ministry  of Finance and Industry (MFI) handles most 
procurements contracts over Dh 1 million covered by the Decision.  The ministries of Health and of 
the Interior handle their own procurement under th e Decision;  this is also the case of purchases 
(e.g. highways) by the Ministry of Public Wo rks and Housing.  Other federal ministries and 
governmental authorities are also allowed to ha ndle their own procurement for purchases up to 
Dh 1 million.  Nonetheless, all contracts covered by the Decision require prior control and approval 
by the MFI.  Procurement contracts above the thr eshold of Dh 500,000 (US$136,140) and also under 
the control (a posteriori) of the State Audit Institution (SAI).
29  The SAI exercises external audit under 
the authority of the Federal National Council (Chapt er II(1)).  In principle, it is functionally, 
organically, and financially i ndependent from the Executive.30   
52. The Decision requires purchases of products, services and construction works be made 
through "general tender" (open tende r), or in certain cases, "limited te nder", "practical participation", 
or "direct order".  Under the general tender, bids  are advertised publicly.  Under the limited tender 
method, used when only a limited number of suppliers  is available, bids are requested from a list of 
pre-approved suppliers.  Under the practical part icipation method, a committee requests quotations 
from selected contractors without any tendering process.  The direct order method is to be used in 
exceptional circumstances, such as the absence of competitive markets (e.g. monopoly).  According to 
MFI data, only Dh 12 million (2.3%) of federal purchases were carried out using the limited tender method in 2004, and Dh 10 million were spent throu gh direct order;  over 80% of the total value of 
purchases by MFI follows the general tender method.   
53. The bidder must be a GCC citizen or a company with maximum foreign equity of 49%.  
Certain tenders are exempt from this condition a nd open to foreign companies and establishments, 
essentially when these are the only available suppliers .  In these cases, the foreign company is invited 
to open a branch and employ a service agent (Chapter II(5)).  According to business sources, tenders 
are usually open to foreign suppliers with whom  the authorities have worked on past projects.
31    
                                                      
28 U.S. International Trade Administration (2004). 
29 The 1971 provisional Constitution of United Arab  Emirates (UAE) established the State Audit 
Institution (SAI) as one of the federal authorities (Federal Law No. 7 of 1976). 
30 Online information available at:  h ttp://www.saiuae.gov.ae/abenglish.html#a. 
31 U.S. Department of State (2005). United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 33 
 
 
54. A procurement notice is usually published for one month at MFI or the relevant ministry, 
electronically (since 2001), and twice in two widely  disseminated newspapers .  In order to have 
access to the electronic system, suppliers must register with the MFI and pay Dh 1,000 the first year and Dh 500 for renewal.
32  Publication may also be in foreign ne wspapers or other available media.  A 
notice regarding planned procuremen t is published at the beginning of each fiscal year.  The notice 
includes a description of goods and services to be pr ocured, the authority receiving tenders, the period 
of validity of tenders, and the deadline for submission  of tenders.  Specificati ons and conditions of the 
procurement must be in Arabic but, if necessary, th ey may be translated into one or more foreign 
languages. 
55. A "bid bond" (of 5% of the bid value) with a UAE bank is required as an initial guarantee 
(Article 32 of the Decision).  A Tenders Committee is constituted by the MFI to assess the tenders and 
select the "best and lowest" bid.  The selected company must provide a performance bond, generally 
of 10% of the bid value, to finalize the contract (Article 50).  Majority government-owned companies 
are exempted from the two bonding obligations. Ther e is no standard system for suppliers to 
challenge the award of a contract.  According to  the authorities, claims related to the tendering 
process can be submitted to a co mmittee formed within the MFI. 
56. All defence purchases are centralized at federal level under the Ministry of Defence.  In 
general, all contracts of US$10 million or more ar e subject to an "offset programme", under the UAE 
Offsets Group (UOG)33, which was created in 1990 and reports to  the Ministry of Defence.  Under the 
programme, all purchases by the UAE armed forces or  elements thereof are subject to the offset 
obligation.  The UOG could also require offsets on ot her than military public purchases, although this 
is not the case presently.  The UOG carries out its purchases through di rect negotiation with 
contractors and on a countertrade or offset basis.  It acts as a conduit between international contractors 
and the local private sector;  the ultimate objective is  the diversification and development of the UAE 
economy.   
57. Specifically, suppliers (domestic or foreign) th at sign a defence procurement contract must 
undertake to set up a joint-venture with the private sect or that will generate returns equal to an agreed-
upon share of the contract, over a specified period (g enerally seven years).  An investment agreement 
is reached on an "offset programme" with each fore ign defence supplier.  Under the programme, the 
foreign company undertakes to "fulfil its offset oblig ation" equivalent to 60% of the value of the 
original contract.  The UOG measures the output of an offset project through its profits. 
58. To date, the UOG has implemented over 25 joint ve ntures (Table III.4) with a combined paid-
up capital in excess of Dh 5 billion (US$1.3 billion) . Offset projects cover the full spectrum of 
economic activities, including advertising, fish fa rming, language centres, shipbuilding, leasing and 
financial services, and medical services.  Offset arrangements tend to negatively affect competition 
and increase the cost of goods and services procur ed, because the qualification and selection of 
suppliers are not based solely on optimizing quality and cost, but are biased by conditions relating to 
the associated joint-venture projects. 
59. Each emirate has specific provisions regulati ng government procurement activities.  In Abu 
Dhabi, for example, a contract between a fo reign company and an Abu Dhabi Government 
Department is subject to Abu Dhabi Law No. 4 of 1977.  Only local companies or local agents of 
foreign companies that are registered in Abu Dhabi may submit tenders.  A bid bond must accompany 
all tenders for government contracts, and the bond is  automatically forfeited if a bid is withdrawn 
before the date for the opening of the tenders. 
                                                      
32 Online information available at:  www.uae.gov.ae and egov.uae.gov.ae (Arabic only). 
33 UOG online information.  Availa ble at: http://www.uaeoffsets.org/. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 34 
 
 
Table III.4 
Projects implemented by the UAE Offsets Group, 2005 
Project name Activity Defence contractor/foreign 
partner Local partner 
Abu Dhabi Shipbuilding  Construction of shipyard for building, 
maintaining, repairing, refitting naval and 
commercial ships Newport News (shares sold to 
Abu Dhabi Government) Abu Dhabi Government 
Local shareholders 
Al Wathba Marrionet Date palm nursery for plants propagated by 
tissue culture Kranti Development Limited Al Wathba Agricultural 
Materials 
Berlitz Abu Dhabi Language centre McDonnell Douglas (now 
Boeing) Local investors 
BSI Bern Sapeth 
International LLC Advertising and events marketing for 
government and private sectors Deutz AG/Tatra Deutz 
Offset Countertrade Dept. Emirates Commercial Centre 
Combined Cargo UAE Shipping company owning and operating 
vessels and brokering cargo to finance and 
operate globally a fleet of modern dry bulk 
vessels and combined carriers in wet and dry bulk traders Torvald Klaveness Group Abu Dhabi Investment 
Company (ADIC); 
Oman & Emirates Invest. 
Holding General Investments  
Condor Medical Waste Management - Abu Dhabi Treatment of infectious medical waste 
generated from hospitals, health and dental 
clinics, and laboratories Giat Condor Medical Waste Mgt 
General Investments FZE 
GAM-AERO Technical maintenance services for testing and 
repairing avionics equipment Aerospatiale (now EADS) GAMCO 
Gulf Business Center Advisor and consultant for international and 
regional companies wishing to invest in Abu 
Dhabi Dassault;  French Fighter 
Invest & Coop.  Programme United Technical Services 
Gulf Diagnostic Center Outpatient healthcare centre  Lockheed Martin Ibn Khaldoun 
Gulf Solar Power 
Company Manufacture of mobile solar energy generators 
for power, desalination and refrigeration  GEC-Marconi Al Nasser Holding 
Infoterra (Gula Center for 
Remote Sensing) Service centre covering satellite and aerial 
remote sensing data  GEC-Marconi (now BAe 
Systems);  Astrium Abu Dhabi Industrial 
Development CO  
International Fish Farming Co (ASMAK) Fish and shrimps in mariculture facilities Dassault;  French Fighter 
Invest & Coop.  Programme Founders: 63 
Shareholders: 31,400 
Laser Re-nu Production of recycled laser printer cartridges Boeing Emirates Printing Forms Est 
National Central Cooling Company (Tabreed) Centralized cooling systems that will serve 
groups of buildings and complexes  247 founders 
MIRAK Agriculture 
(National Horticulture 
Center Franserres) Greenhouses and agricultural management Dassault;  French Fighter 
Invest & Coop. Programme 
Thales Al Hamed Enterprises 
Oasis International 
Leasing Co Owning, managing, selling, and leasing assets 
and properties   British Aeropace Syst ems Founders: 59 
Productivity and 
Leadership Consortium Technology transfer centre Westinghouse (bought by 
Northrop Grumman) CERT 
Safewater Chemicals Chemical production  Specialist Mechanical 
Engineers Al Jaber Group 
Solex Robotics Services Inspection services for bulk storage tanks General Electric Al Mansouri Specialized 
Engineering 
UTS Burnstop LLC Manufacture of fire extinguishing products and 
equipment Dassault;  French Fighter 
Invest & Coop. Programme United Technical Services 
Abu Dhabi Risk & 
Treasury Systems LLC  Macquarie, MBDA Abu Dhabi Commercial Bank 
Trakker ME Fleet management services Trakker Pakistan 
Alfia Investment Company Al Jaber Group 
Schmidlin A high-tech façade manufacturing company that 
aims to increase a building's life span Inovex Local investors 
Gulf Energy Maritime Shipping company Thales ENOC 
Fusion Glass LLC Glass products for architectural and interior 
construction projects Diehl IWS 
Rohde and Schwarz Local investors 
German Emirati Company 
Limited (GECO) Production of precast aerated concrete Alfia Investment Company Bina Group 
CITYZZ Visitor Center 
Emirascope Multimedia interactive visitor centre Rohde and Schwarz Local investors 
Prefabricated Building 
Elements Production of prefabricated elements Rohde and Schwarz Local investors 
Source: Information provided by the UAE authorities.   United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 35 
 
 
60. Dubai Law No. 6 of 1997 contains provisi ons regulating contracts between Dubai 
Government departments and companies entering into  a contract, including the preparation of tender 
documents, issuing the tender, bid bond require ments, and performance bond requirements.  The 
Dubai Government also requires a foreign company to  employ a service agent.  Certain governmental 
purchases can be handled electronically (since 2000).34   
61. Given the federal nature of the UAE, the major ity of procurement (by value) is at emirate 
level.  Furthermore, given the importance of the public sector, including state-owned companies, 
public purchases are particularly large in relation to  total expenditure.  For example, in Abu Dhabi, 
the Ministry of Health reportedly accounts for 70% of demand for pharmaceuticals and hospital 
equipment.35  
(ix) Local-content requirements 
62. The Secretariat has not received any inform ation suggesting the presence of measures 
requiring the use of local products.  However, the ex clusive distribution system with the obligation to 
employ a UAE agent could be linkened to a lo cal employment scheme, as could the general 
requirement for a foreign branch to employ a local agent.  In addition, the UAE Offsets Group runs a 
large offset programme (see above), which h as not been notified under the WTO Agreement on 
Trade-Related Investment Measures. 
(x) Other measures 
63. The authorities indicate that no agreements have ever been concluded with foreign 
governments or foreign firms to restrict exports to the UAE.  The Secretariat has not been informed of 
any countertrade arrangements involving the governments of the UAE.  The UAE does not maintain 
any compulsory reserve stocks.   It has never ta ken any measures for balance-of-payment purposes.  
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
64. To export goods of UAE origin, shippers are required to provide Customs with an original 
invoice and a completed export declaration.    
(ii) Export duties and taxes 
65. Since 2003, an export tax on steel scrap has been levied at the rate of Dh 250 per tonne. 
(iii) Export prohibitions and restrictions 
66. The UAE may restrict oil exports as a result of its membership in the Organization of 
Petroleum Exporting Countries (OPEC).  In addition, the UAE maintains export controls (through 
permits) on certain products for safety, security, and environmental reasons, and to ensure compliance 
with international obligations under treaties and c onventions (e.g. the Basel Convention, CITES, the 
Convention on Chemical Weapons, the Treaty on Nu clear Non-Proliferation) to which it is a 
signatory.  It restricts in particular exports of dua l-use goods that might be us ed in weapons of mass 
                                                      
34 In the emirate of Dubai, Tejari.com is used to advertise public purchases of information technology 
equipment.  
35 British Embassy, Commercial Section, Abu Dhabi,  "Background notes on Abu Dhabi".  Available at:  
http://www.uktradeinvest.gov.uk/ukti/ShowDoc/BEA+Repository/345/370160. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 36 
 
 
destruction programmes, as well as conventional w eapons.  Permits are al so required to export 
animals and animal products, as well as narcotic drugs, psychotropic substances, and precursors.36   
(iv) Export subsidies, finance,  insurance, and assistance 
67. The authorities indicate that the UAE does not grant or maintain any export subsidy within 
the meaning of the WTO Agreement on Subsidies and Countervailing Measures.37  At federal level, 
the Emirate Industrial Bank, 51% owned by th e Federal Government, provides financing "at 
reasonable terms" for the industrial sector.38  This includes export credits and equity financing.39  To 
be eligible, the project should have a minimu m of 51% UAE or GCC ownership and should be 
located in the UAE. In addition, the project should have  an industrial licence issued by the Ministry of 
Finance and Industry.    
68. Export promotion is the responsibility of each em irate.  According to the authorities, the 
creation of a federal body for export promotion is currently envisaged, with the aim of harmonizing 
all promotional activities within the UAE territory. 
(v) Free zones  
69. The UAE's first free zone was established by decree at Jebel Ali in 1980. It has since 
expanded from 10 hectares to over 300.  Its success in  attracting foreign investment and technological 
expertise, and the growth of re-exports and transh ipment as a major commercial activity led all the 
emirates, except Abu Dhabi, to create such free zones to attract inward investment, employment 
generation, and significant economic development.  Aside from the advantages already available to 
companies in the UAE Customs territory (no corporat e or personal taxes, freedom to repatriate capital 
and profits, low import duties except on tobacco and spirits, no exchange restrictions), the free-zone 
regimes allow 100% foreign ownership of companies,  and hence a full control over their activities.  
Comparative advantages in each zone are base d on individual locations, facilities, areas of 
specialization (e.g. motor vehicles), and establishment and operating costs.40    
70. Another advantage of operating in a free zone is that the Trade Agencies Law (section (2)(i)) 
above), which regulates a part of the domestic trade in the Customs territory does not apply.  Various 
types of licences allow operators to practice specifie d activities in free zones.  At the Jebel Ali Free 
Zone, a "general trading licence" allows the holder to import, export, distribute, and store any items in accordance with the zone's rules and regulations;  a "trading licence" gives the same rights, but for 
specified items only.  An "industrial licence" allo ws the holder to import raw materials, manufacture 
specified products, and export the finished products.  A "national industrial licence" is reserved for 
manufacturing companies with at least 51% GCC ow nership; it allows duty-free sales inside the UAE 
customs territory.  However, the value added by th e free-zone company must be at least 40% of the 
value of the good to qualify for duty-free sales.  A "s ervice licence" allows the holder to carry out the 
services specified in the licence w ithin the zone.  The type of ser vices supplied must be the same as 
the services supplied by the parent company.   
71. Another regulatory specificity of the free zones, which could become significant for 
companies' productivity (depending on future policy tr ends), is the absence of restrictions on hiring 
                                                     
 
36 See also Federal Environmental Agency online info rmation.  Available at:  http://feaapp.fea.gov.ae.  
 37 WTO document G/SCM/N/38/ARE, 18 April 2000. 
38 Central Bank of the United Arab Emirates (2003). 
39 See Emirates Industrial Bank  online information for a summary of available financing: 
http://www.emiratesindustrialbank.net/financialservices.htm. 
40 Information on all the UAE free zones is av ailable online at:  http ://www.uaefreezones.com/. United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 37 
 
 
foreign employees.  There are currently few barriers to the recruitment of foreign labour in the UAE, 
and foreign employment has been the source of economic growth (Chapter I(1)). However, such 
barriers are being erected progressively to counter th e problem of unemployment of nationals.  Within 
the free zones, premises may be owned on leased land, and mortgaged.  Therefore, a company 
established in a free zone that has built its own facility may mortgage its premises to a bank or 
financing company to finance its debts or obligations.   
72. Operators register with the customs authority of the emirate in which the free zone is located.  
The relevant customs authority delivers import and export permits. Products may be brought into free 
zones and duty-free shops, and exported outside th e country or to other free zones and duty-free 
shops, without being subject to customs duties.41 Goods can remain indefinitely in free zones.  All 
exports from free zones are accounted for through export declaration.  Imports from free zones and 
duty-free shops into the customs territory are liable to all the normal customs duties and taxes (except, 
as mentioned above, the GCC-owned companies that  meet the 40% rule of origin criterion). 
73. In December 2005, there were 22 free zones in operation in the UAE, with investments of 
about US$4 billion. Several free zones are dedicated  to specific services subsectors, including Dubai 
Internet City, Dubai Media City, Dubai Health Care  City (Box IV.1), and Knowledge Village.  In 
addition, 11 free zones are under development, and Dubai has announced the launch of several 
additional free zones. Jebel Ali Free Zone Authority (Jafza)  manages one of the world's largest and 
fastest growing export-processing zones, and is a leading global trade and trans-shipment centre.42  
The zone is built around Dubai's Jebel Ali Port  which is one of the world's largest ports 
(Chapter IV(5)).  Upon completion of the Jebel Ali Airport, expected in 2007, Jebel Ali Free Zone 
will be the only one in the region with an airpor t and a port on site.  Over 5,000 businesses from over 
120 countries are operating at Jafza:  76% are involved in trading, warehousing, and distribution;  20% in manufacturing;  and 4% in services.  Jaf za is a commercial organization but is financially 
supported by its only shareholder, the Government  of Dubai, to which it submits quarterly 
performance reports.    
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
74. In the context of its annual notification ob ligations under the WTO Agreement on Subsidies 
and Countervailing Measures, the UAE submitted its most recent "new and full" notification in 
April 2000.43  According to this notification, the Govern ment of the UAE does not grant or maintain 
within its territory any subsidy, within the meaning of Article 1.1 of the Agreement, that is specific 
(within the meaning of Article 2 of the Agreement) , or that operates directly to increase exports from 
or reduce imports into its territory within the meaning of Article XVI:1 of GATT 1994.  However, 
some support is provided to agriculture (Chapter IV(2)).  No information is available regarding 
financial assistance extended by the emirate aut horities to private companies and to state-owned 
companies operating in the UAE and abroad (section (ii) below). 
                                                      
41 The following goods may not enter free zones and duty-free shops:  flammable  goods, excluding 
authorized fuels necessary for operations;  radioactive materials;  arms, ammunition and explosives of any kind, 
except those licensed by the competent authorities;  goods infringing laws on intellectual property rights protection;  all kinds of narcotic drugs and derivatives;  goods originating in an economically boycotted country;  
and goods prohibited from entering the country. 
 
42 Further information is availa ble online at:  www.jafza.ae. 
43 WTO document G/SCM/N/60/ARE, 18 April 2000. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 38 
 
 
75. A number of investment incentives are available under Federal Law No. 1 of 1979 
(Box III.1), ranging from duty-free imports to the supply of utilities at low prices.  The Emirate Industrial Bank provides financing "at reasonable te rms" to the industrial sector (section (3)(iv) 
above).
44  
Box III.1:  Provisions of Federal Law No. 1 of 1979 Organizing Industrial Affairs 
Article 20 
The Council of Ministers, and the auth orities in the Emirates, may grant pr ojects that meet certain conditions, 
the following privileges and exemptions: 
- assignment of a building-site for th e project, either free or at a reduce d price or a symbolic rent with 
 optimal conditions; 
- rent on the necessary industrial buildings at optimal conditions, in the industrial areas established by 
 the Government; - supply of electricity and water at incentive rates; 
- customs-free imports of: 
 (a) machinery, equipment, spare parts and building materials required for project;  (b) raw and intermediate materials, semi-produ cts, packing and wrapping materials used at 
   production level. 
- tax-exemption for the profits made by the project as well as the reserve amounts deducted from  these profits to be re-invested in the project, for a renewable period of five years starting from the 
 date when production becomes effective; 
- exemption of locally made products – when exported – from export duties and taxes;   
- subsidies to exports;  and 
- protective measures for local products, taking into consideration their kind, quality and quantity. 
Article 21 
Priority for the privileges and exemptions mentioned in Article 20 is given for: 
- competitive, export-oriented or export-substitution projects; 
- projects using local raw materials; 
- projects established in areas determined by the Government;  and 
-  any other projects that may be of specific economi c importance, and included, for this reason, in the 
 government development plan. 
The law applies to most industrial projects except extraction or refining of petroleum or other raw materials. 
Source:   Federal Law No. 1 of 1979 Organizing Industrial Affairs.
  
(ii) State-owned enterprises, state trading, and privatization 
76. In October 1996, the UAE notified the WTO that it does not maintain any state-trading 
enterprises within the meaning of Article XVII of the GATT.45  Quite a few state-owned companies 
appear to be engaged in international trade, such  as in the hydrocarbon subsector. Wholly or partially 
government-owned companies that engage in trad e include:  Etisalat;  Abu Dhabi National Oil 
Company (ADNOC);  Dubai Petroleum Company;  Emirates National Oil Company;  Sharjah Oil 
Refining Company;  Dubai Aluminium Company;  and  Al Ain cement plant. 
77. In general, the emirate governments retain a large and direct control over the economy, and 
consequently over external trade.  A large shar e of companies engaged in productive activities are 
owned or controlled by the emirates or by the Federal Government.  As a result of large public 
                                                      
44 Central Bank of the United Arab Emirates (2003). 
45 WTO document G/STR/N/1/ARE, 14 October 1996.   United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 39 
 
 
investments, generally in partnership with fore ign enterprises that bring their technologies, many 
productive state-owned companies have grown larg e enough to compete on world markets.  In 
addition, because of their ownership structure these companies benefit from a financial rating 
allowing them to borrow at low interest rates.  Some of them (e.g. in electricity and air transport) also 
benefit from a favourable domestic environment wh en they are both operators and regulators. 
78. In recent years, emirati firms have increasingly made acquisitions abroad, particularly in the 
transport sector.  For example, Dubai Ports Interna tional (now DP World), the world's sixth-largest 
port operator, owned by the Dubai Government, ma de a £3 billion bid in October 2005 for P&O, 
Britain's biggest ports and ferries group.  In Febr uary 2005, Dubai Ports International announced the 
acquisition of CSX World Terminals for close to US$1.5 billion, thus gaining a strong presence in 
Asia for the first time, including in Hong Kong, Ch ina and China, as well as in Australia, Germany, 
the Dominican Republic, and the Bolivarian Republic of Venezuela. 
79. The only significant steps towards privatization since WTO Membership in 1996 have been in 
Abu Dhabi's electricity and gas subsectors (Chapter  IV(3)).  The emirate of Abu Dhabi has also 
initiated plans for the sale of certain companies in the manufacturing sector (Chapter IV(4)).    
(iii) Competition policy and price controls 
80. The UAE does not have competition legislation.  Anti-competitive practices are dealt with on 
a case-by-case basis by the MEP, in consultation wi th the MFI and the chambers of commerce.  In 
principle, the UAE market should be highly comp etitive given the low import duties and the absence 
of non-tariff barriers.  However, a lack of compe tition results from the market-segmenting effects of 
exclusive agency laws (section (2 )(i) above).  These exclusive rights also constitute a barrier to full 
GCC integration.46  
81. There are no a priori price controls, but the MEP monitors the prices of 15 goods, mainly food 
products, in order to contain the negative effect s of cartels and other anti-competitive practices.47  The 
federal and emirate governments have  a role in the price determina tion or approval of a number of 
services, including telecommunications, postal, and me dical services.  Electricity, water, and gas 
prices are set by state-owned companies at emirate level. 
(iv) Intellectual property rights 
(a) Overview 
82.  The UAE initially availed itself of its right under Articles 65.2 and 65.4 of the Agreement on 
Trade-Related Aspects of Intellectual Property Ri ghts (TRIPS Agreement) to delay for a period of 
four years, beginning in January 1996, the date of application of the Agreement, and for a period of 
five years, beginning 1 January 2000, the date of  application of the provision on product patents. 
83. In the context of the review of its IP le gislation in 2001, the UAE provided responses to 
questions posed by Canada, Japan, Switzerland, and the United States.48  Subsequently, a number of 
amendments were made, and three laws entered in to effect in 2002:  Federal Law No. 17 of 2002 
(issued on 17 November 2002), pertaining to the i ndustrial regulation and pr otection of patents, 
                                                      
46 World Bank (2002). 
47 The products include dry and condensed milk;  frozen and canned vegetables;  children's foodstuff 
and milk ;  chickens; cooking oil;  rice;  flour;  fish products; meat and meat products;  tea;  coffee; cheese; pasta 
(macaroni, vermicelli);  su gar;  and diapers (Cabin et Decision No. 538/1). 
48 WTO document IP/Q/ARE/1, 2 February 2004. WT/TPR/S/162/Rev.1 Trade Policy Review 
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industrial drawings, and designs;  Federal Law No . 8 of 2002 (issued on 24 July 2002), amending 
Federal Law No. 37 of 1992 in respect of trade marks;  and Federal Law No. 7 of 2002 (issued on 1 July 2002) concerning copyright and neighbouring rights. 
84. In accordance with Article 63.2 of the TRIP S Agreement, the UAE notified the English 
version of Federal Law No. 7 of 2002 con cerning copyrights and neighbouring rights.
49  The UAE 
undertook to communicate the two other laws to the WTO Secretariat as soon as their translation was 
finalized.  The authorities have notified the contact point for IPRs as the Ministry of Economy and 
Planning. 
85. The UAE is a member of the following treaties:  the WIPO Convention, since September 
1974;  the Paris Convention (industrial property) , since September 1996;  the Berne Convention 
(literary and artistic works), since July 2004;  the PCT (Patent Cooperation Treaty), since March 
1999;  the WIPO Copyright Treaty (WCT), since July 2004;  the Rome Convention, since January 2005;  and the WIPO Performances and Phon ograms Treaty (WPPT), since June 2005.  
(b) Patents 
86. The 1992 Patent and Design Law No. 44 provides fo r the protection of a patent granted for 
any invention that is the result of an innovative id ea, or for an innovative improvement on a patented 
invention, whether in relation to a new industrial pr oduct, an industrial process or method or to the 
application of a known industrial process or method.   The law was amended in November 2002, in 
part to ensure conformity with the provisions of  the TRIPS Agreement.  For example, the term of 
patent protection was increased from 15 years renewa ble for five additional years, to 20 years (non-
renewable) from the date of filling the application.  
87. The law enables the patent holder to prevent others from manufacturing, importing, offering 
for sale, selling, using or otherwise keeping for th e purpose of selling or using the product, or using 
the method.  To conform with Article 28 of the TR IPS Agreement, the amendm ent specified the rights 
of the patent holder in preventing others from using it.  
88. The 2002 amendment also extended the coverage of the protection of innovations to all fields 
of technology, including agriculture, hunting, fish ing, handicrafts, and services, covering both product 
and method of processing.  Previously, inventi ons dealing with the chemistry of drugs or 
pharmaceutical compounds, as well as inventions in foodstuffs were excluded from coverage.  They 
are now covered by Article 66 of the law.  Excepti ons (from patentability) exist for plant and animal 
research, or biological processes for the production  of plants or animals, with the exception of 
microbiological processes and products;  scientific pr inciples and discoveries;  diagnostic, therapeutic 
and surgical methods for the treatment of humans or animals; and inventi ons related to national 
defence or that would be contrary to public or der and morality.  Micro-organisms are patentable.  
89. The supervisory ministry for IP matters is the Ministry of Finance and Industry.  Since the 
entry into force of the TRIPS Agreement, it has ope ned a register in which patent applications for 
inventions concerning pharmaceutical and agricultu ral chemical products can be filed.     
90. The Patent and Designs Law provides for non-excl usive compulsory licensing, after the lapse 
of at least three years after granting the patent.  An  applicant must prove that efforts have been made 
to obtain a licence from the patent owner on reas onable conditions.  The licence should be for the 
purpose of fulfilling the demands of the local mark et.  Article 23 of the Patent and Designs Law 
stipulates that the importation of the product is not sufficient ground for granting a compulsory 
                                                     
 
49 WTO document IP/N/1/ARE/C/1, 3 March 2004. United Arab Emirates  WT/TPR/S/162/Rev.1 
 Page 41 
 
 
licence.  No compulsory licence h as so far been granted.  There is no provision on parallel imports of 
patented products and there has been no juri sprudence in the UAE in this regard.    
(c) Industrial designs 
91. Industrial designs are protected by the Patent  and Design Law (Article  51) and the related 
1993 Decree No. 11 (Articles 45-49).  The holder is accorded exclusive rights over imports of any product related to the industrial design, or processing of such a product for the purpose of offering it 
for sale or selling it.  A special register is kept by the Ministry of Finance and Industry (the 
Directorate of Industrial Design).  All industrial designs must be registered.  The provisions on 
industrial designs under the Patent and Industrial Design Law also apply to integrated circuits 
(Articles 43-51).  Protection is granted for ten years, renewable once for five years. 
(d) Layout-designs (topographies) of integrated circuits 
92. Computer programs are protected by the 1992 Copyrights and Neighbouring Rights 
Law No. 40.  The 2002 amendment has brought unde r its scope computer program applications, as 
well as compilations of data.  According to the fe deral authorities, the law now provides for clear 
provisions to deal with the situation foreseen in the derogation from Article 36 as specified in 
Article 37 of the TRIPS Agreement, whereby a person has no knowledge or reasonable grounds to 
know when acquiring an integrated circuit or an article  incorporating such an integrated circuit that it 
contains an unlawful topography.   
93. The provisions on industrial designs under the Pate nt and Industrial Design Law also apply to 
integrated circuits (Articles 43-51).  Protection is for ten years, renewable once for five years.    
(e) Copyright and related rights 
94. The 1992 Copyrights and Neighbouring Rights Law No . 40 is the main legislation protecting 
copyright.  It was amended in 2002.
50  The amendment provides more detailed measures to enforce 
copyright in line with the provisions of the TRIP S Agreement.  In particular, the amendment is 
designed to meet the obligations arising from Artic le 9 of the TRIPS Agreement (Berne Convention, 
Articles 1-21, except Article 6 bis), through the extension of the works and types of expression 
covered as well as the nature of the protection.  The amendment introduces the exclusive right to 
exploit, under the rental right, literary works,  including computer programs and cinematography 
work.  Copyright protection is for 50 years.  The s upervisory ministry for issues related to copyright is 
the Ministry of Information and Culture. 
(f) Trade marks 
95. The 1992 Trademarks Law No. 37 is the main legisl ation protecting trade marks.  Article 2 of 
the law considers as trade marks, among others, signs th at take a particular form if they are used to 
distinguish goods, products or services, or to i ndicate that the products, goods or services are the 
properties of the owner of the mark.51  Sound constitutes an element of the trade mark if it 
accompanies the trade mark.  The law also contains provisions on well-known marks.    
96. The Trademarks Law allows the court to delete  the registration of a trade mark if it is 
determined that the mark has not been used effec tively during five years, unless the owner justifies the 
non-use of the trade mark.  According to the aut horities, the 2002 amendment of this law added that 
the non-use of the trade mark should not be a reason fo r the deletion, if it is due to reasons not related 
                                                      
50 The 2002 legislation is contained in WTO document IP/N/1/ARE/C/1, 3 March 2004. 
51 Article 1 of the Law defines a sign as a drawing that can be seen and that constitutes one element. WT/TPR/S/162/Rev.1 Trade Policy Review 
Page 42 
 
 
to the ownership of the trade mark.  Trade marks re gistration is renewable indefinitely.  The Ministry 
of Economy and Planning is the supervisory mi nistry for issues related to trade marks. 
97. The Trademark Law does not contain provisions with  respect to parallel imports or to national 
or international exhaustion of rights.  However, th e owner of a trade mark may, by a written notarized 
contract, grant to any person a licence to use the tr ade mark (Article 30).  The licence has no effect on 
third parties unless it has been recorded in the Re gister and published as prescribed in the Executive 
Regulations.  According to the authorities, the Tr ademark Law could, as a result, be invoked by the 
owner of the trade mark to prevent parallel imports ;  no such case has not so far been filed in the 
UAE.    
(g) Geographical indications 
98. The Trademarks Law does not contain a defi nition of geographical indications as such. 
However, geographical indications can be considered  as trade marks if they are used to distinguish 
goods or services with regard to their production,  selection or commercialization.  Geographical 
indications related to alcoholic bevera ges cannot be registered in the UAE.  Under the Trademark 
Law, a trade mark that misleads consumers about  the origin of a product cannot be registered. 
(h) Protection of undisclosed information 
99. Article 1 of the Patent and Industrial Desi gns law defines "know-how" as the technical 
information, data or knowledge that results from prof essional experience and is applicable in practice.  
Article 39 states that know-how shall be protec ted against any unlawful use, disclosure or 
communication by third parties, unless it has been published or made available to the public.  In 
addition, the by-laws of the 1992 Patent Law (1993 Decision No. 11 of the Ministerial Council) lay 
down procedures to ensure the protection of know-how.   
100. As regards pharmaceutical products specifically , Law No. 4 of 1983 related to pharmaceutical 
institutions and the pharmacy profession and its by -laws provide for the establishment of a committee 
in charge of pharmaceutical regist ration and pricing.  All confidenti al information submitted to it must 
be kept confidential, provided the owner has undert aken the necessary steps to keep it confidential.  
According to the authorities, the term of protec tion of undisclosed information in the pharmaceutical 
subsector is, in practice, five years. 
(i) Enforcement 
101. The Copyright Law, the Patent and Design Law, and the Trademarks Law provide for 
measures aimed at preventing violation of intell ectual property rights, including preventive seizure, 
confiscation, removal or destruction of products a nd equipment, as well as elimination of the effects 
of the illegal acts, and compensation. In addition,  Punitive Law No. 3 of 1987 specifies imprisonment 
of up to three years for IPR violation.  Customs is  entitled to take measures at the border to prevent 
any violation of intellectual property rights, in accordance with the above-mentioned laws as well as 
under Customs regulations.  These measures can be  taken upon demand of the right holder based on a 
judicial order.   
102. Articles 37-42 of the Trademarks Law define pena lties with regard to counterfeit, imitation, 
misleading practices, and fraudulent use of registered  trade marks.  Unlimited fines of at least 
Dh 5,000 can be levied, as well as unlimited pris on sentences (up to three years under the Punitive 
Law).  The Copyrights Law lays down similar pro cedures, with minimum detention of two months 
(up to three years under the Punitive Law), and fines of Dh 10,000-50,000.  Articles 60-62 of the 
Patent Law also lay down criminal sanctions an d monetary penalties in the range of Dh 5,000-
100,000. Imprisonment is for at least three months , and up to three years under the Punitive Law.