Federal Law No. (3) of 2020 Regulating the Strategic Stock of Food Commodities in the State (economy and business law)

Article (1)  
Definitions  
In application of the provisions of this Law, the following words and expressions shall have the meanings ascribed thereto unless the context requires otherwise:  
State  : United Arab Emirates.  
Ministry  : The Ministry of Economy.  
Ministry  : The Ministry of Economy.  
The competent 
Entity  : The Government Federal or local Entity that is duly authorised to organise, supervise or control the strategic stock of food 
commodities.  
The Authority  : National Emergency, Crisis and Disasters Management Authorit . 
Warehouse  : The place dedicated by the registered vendor to store food 
commodities and save the same as a strategic stock.  
Food  
commodities  : All food commodities as determined by the Ministry.  
Strategic 
Stock of Food 
Commodities  : All food commodities specified by its names and quantities 
required to be stored subject to provisions of this Law.  
Safe Stock  : 
The specified percentage the strategic stock of food 
commodities must less than it subject to provisions of this Law.  
Commodities Stock : A group of activities the provider and registered vendor perform in connection with the provision and safety of stored  
Federal Law No. 3 of 2020 on Regulating the Strategic Stock of Food Commodities in the State  3 
 Management  commodities subject to the Resolution issued by the Minister.  
Provider  : The producer or importer who provides food commodities for 
distributors and vendors, whether inside or outside the State.  
Registered 
Vendor  : Any person who conducts a business in connection with food commodities and is licensed in the State for the purpose of the 
application of this Law.  
Register  : The register where providers and vendors are recorded and 
categorised.

Article (2)  
Applicability  
Provisions of this Law shall be applicable to the provider and the registered vendor.

Article (3)  
Competencies of the Ministry  
For the purposes of application of provisions of this Law, the Ministry shall have the 
following competencies:  
1. Proposing policies, plans and programs relevant to the strategic stock of food 
commodities in coordination with the competent entity and to present the same to the 
Cabinet for approval.  
2. Coordination with the joint economic committees of States providing the commodities concerning the programs that relate to the strategic stock of food commodities.  
3. Putting the plans and programs of the volume and quantity of the safe stock and 
increasing the capacity of the strategic stock of food commodities in case of the increase 
of demand for food commodities at the State level.  
4. Preparation of reports, studies, statistics and economic assessment concerning food 
commodities and estimation of the volume of consumption and determining the surplus 
and shortage.  
5. Preparation of databases about the production and provision of food commodities in the  
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 State and countries of origin and follow up the databases of the providers.  
6. Coordination and execution of policies to ensure, maintain and keep the strategic stock 
of food commodities, in collaboration with the Authority and the competent entity, to 
achieve a safe strategic stock of food commodities.  
7. Review periodically with the competent entity to check the current balance of food 
commodities at the registered vendor.  
8. Supervision of databases and electronic connection preparation with respect to 
warehouses, the strategic stock of food commodities and requirements of food 
commodities storing.  
9. Monitoring the compliance of providers and registered vendors to the laws and 
instructions relevant to the execution of provisions of this Law.  
10. Determining and updating a list of food commodities.  
11. Determining the volume of the strategic stock of food commodities and percentage of 
the safe stock.  
12. Reviewing the reports of the competent entity or any other relevant entities and taking 
what is required.  
13. Reporting recommendations to the Minister concerning the grant of incentives and 
facilities for registered vendors.  
14. Submitting reports periodically to the Cabinet concerning the strategic stock of food 
commodities in the State.  
The Minister may form a subcommittee or committees to execute the aforementioned competencies in this Article.

Article (4)  
Register  
The Minister shall, after coordination with the competent entity, establish a register to record and categorise providers and vendors.  
Conditions and procedures of registration shall be determined by a resolution of the 
Minister.  
   
Federal Law No. 3 of 2020 on Regulating the Strategic Stock of Food Commodities in the State  5

Article (5)  
Obligations of the provider and registered vendor  
The provider and the registered vendor shall abide by the following:  
1. Maintain the safe stock subject to the provisions of this Law.  
2. Supply the strategic stock of food commodities upon request.  
3. Electronic connection with the competent entity and the Authority to ensure the 
continuous follow up of quantities, kinds and condition of the strategic stock of food 
commodities.  
4. Execution of resolutions issued by the competent entity.  
5. Distribution of the strategic stock of commodities in case of emergencies, crises or 
disasters according to the distribution plans prepared by the Authority in coordination 
with the competent entity.

Article (6)  
Warehouses and Storage Conditions  
The registered vendor shall manage the strategic stock of food commodities according to the 
following:  
1. Designation of the site, space and volume of the warehouse dedicated for the strategic stock of food commodities, provided that it shall be inside the State.  
2. Informing the competent entity with the site of the warehouse.  
3. Keeping and managing the strategic stock of food commodities as per specifications and 
measurements approved in the State.

Article (7)  
Incentives and facilities  
Incentives and facilities may be granted to the provider and registered vendor according to the conditions and requirements for which a Cabinet resolution shall be issued based on the 
proposal of the Minister and upon coordination with the competent entity.  
   
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Article (8)  
Penalties  
The application of the penalties stipulated herein shall not prejudice any more severe 
penalty stipulated by any other law.

Article (9) 
1. Whoever violates the provision of Paragraphs (1, 2 and  4) of article (5) of this Law shall 
be punished of a penalty of no less than (500.000) five hundred thousand dinars and no 
more than (2.000.000) two million dinars.  
2. Whoever violates the provisions of Paragraphs (3) of article (5) and article (6) of this 
Law shall be punished of a penalty of no less than (100.000) five hundred thousand 
dinars and no more than (1.000.000) one million dinars.  
3. Whoever violates the provisions of Clause (5) of article (5) of this Law shall be punished 
of a penalty of no less than (1.000.000) one million dinars and no more than 
(5.000.000) five million dinars.  
4. The penalties established for the violations stipulated herein shall be doubled in cases of 
recidivism.

Article (10)  
Judicial Enforcement  
Employees who are determined by a resolution by the Minister of Justice in agreement with 
the Minister or the head of the competent entity shall be granted the power of judicial 
officer in proving the violation of the provisions of this Law, Regulation and the resolutions 
issued for its enforcement, each within their area of competence.

Article (11)  
Repealing the Violating Provision  
Any provision contrary to or inconsistent with the provisions of this Law shall be repealed.  
   
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Article (12)  
Executive Resolutions  
The Minister shall issue the resolutions necessary for the enforcement of the provisions of 
this Law.

Article (13)  
Law Publication and Entering into Force  
This Law shall be published in the Official Gazette, and it shall come into force on the day following the date of its publication.  
  
 
Khalifah Bin Zayed Al Nahyn  
UAE President  
 
Issued by us at the Presidential Palace in Abu Dhabi:  
Date: 06 Sha'ban 1441 H  
Corresponding to: 30 March 2020