General UAE Legal Questions LawDecree No. (1) of 2016

Article (1) The following words and expressions, wherever mentioned in this Decree, will have the meaning indicated opposite each of them unless the context implies otherwise: UAE: The United Arab Emirates. Emirate: The Emirate of Dubai. DP: The Dubai Police. DM: The Dubai Municipality. ©2020 The Supreme Legislation Committee in the Emirate of Dubai 1 Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 2 of 8 Commander-in- Chief: The commander-in-chief of the DP. Director General: The director general of the DM. Alcoholic Drink: Any potable liquid that contains no less than 0.05% ethanol. This includes any solid foodstuff in the production or preparation of which ethanol is used at the concentration stated above or a higher concentration. Establishment: A company or corporation authorised in the Emirate to import, re-export, distribute, and supply others with Alcoholic Drinks. Scope of Application

Article (4) a. The DM will collect from Establishments a fee of thirty percent (30%) of their total monthly sales of Alcoholic Drinks. For this purpose, the supply of Alcoholic Drinks by an Establishment to any of its branches within the UAE will be deemed as a part of its monthly sales and will be subject to the fee. b. The following will be exempted from the fee referred to in paragraph (a) of this Article: 1. sales to airlines and flight catering companies; 2. sales to duty-free markets and Establishments operating within airports and other ports of entry; and

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 3 of 8 3. re-export of goods to outside of the UAE. Obligations of Establishments

Article (5) a. An Establishment must: 1. pay the fee stipulated in Article (4) of this Decree to the DM before the sixteenth (16th) day of the month following the month in which this fee becomes due; 2. maintain a record of Alcoholic Drink transactions which contains the following: a. imported quantities; b. quantities re-exported to outside of the UAE; c. quantities sold within the UAE; d. quantities supplied to others; e. quantities transferred to, exchanged with, or delivered to any entity or branch within or outside of the UAE and not included in the Establishment's sales; and f. the names of Establishments supplied with Alcoholic Drinks, the quantities sold to them, the numbers and dates of the permits issued to these Establishments, and the relevant sales invoice numbers. 3. maintain financial records in which all the Establishment's Alcoholic Drink sales are entered. These records must be managed in accordance with the recognised accounting standards. 4. prepare a monthly sales report which contains all types and quantities of Alcoholic Drinks sold by the Establishment during each month in which the fee becomes due, and provide the DM with this report at the time of payment of the fee due for that month; 5. prepare the financial statements and balance sheet of the Establishment at the end of each financial year, have them approved by an auditor licensed to operate in the Emirate, and submit the same to the DM within no later than six (6) months after closing the financial statements and preparing the balance sheet; 6. complete all transactions recorded in its accounting books and records and financial systems through full documentation processes and sound accounting procedures in accordance with the recognised accounting and professional standards and rules; 7. provide the DM with the information and data it requires within the time frames it determines;

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 4 of 8 8. maintain invoices for sold Alcoholic Drinks for at least three (3) years from the date of their sale; 9. not advertise Alcoholic Drinks in any manner whatsoever; 10. not sponsor any events that are related to Alcoholic Drinks without first obtaining the written approvals of the DP and the concerned entities; 11. cooperate with DM employees and provide them with the required information and data; and 12. cooperate with the employees authorised to implement this Decree and the resolutions issued in pursuance hereof, and enable them to access Alcoholic Drinks storage and serving areas and any other areas where dealing in Alcoholic Drinks occurs. Penalties and Measures

Article (6) a. Without prejudice to any stricter penalty stipulated in any other legislation, a person who commits any of the violations stipulated in Schedule (2) attached hereto will be punished by the fine indicated opposite that violation. Upon repetition of the same violation within one (1) year from the date of the previous violation, the value of the fine will be doubled. A fine must not exceed one million Dirhams (AED 1,000,000.00). b. In addition to the penalty of a fine referred to in paragraph (a) of this Article, the DM or the DP, as the case may be, may take one or more of the following measures against a violator, in coordination with the concerned entities in the Emirate: a. suspending the activities of the Establishment for not less than one (1) month and not more than one (1) year; and /or b. closure of the Establishment. c. Imposing the fine referred to in paragraph (a) of this Article on a violating Establishment will not preclude claiming any outstanding fees from this Establishment. Law Enforcement

Article (11) This Decree will be published in the Official Gazette and will come into force on the day on which it is published. Mohammed bin Rashid Al Maktoum Ruler of Dubai Issued in Dubai on 7 March 2016 Corresponding to 27 Jumada al-Ula 1437 A.H.

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 6 of 8 Schedule (1) Permit Fees SN Type of Permit Fee (in Dirhams) 1 Issuing or renewing a permit for an Establishment to import Alcoholic Drinks 500,000.00 2 Issuing or renewing a permit for an Establishment to re-export Alcoholic Drinks 250,000.00 3 Issuing or renewing a permit to sell or supply Alcoholic Drinks (warehouse/ store/ factory/ outlet) 250,000.00 4 Issuing or renewing a permit for a hotel, a resort, or the like to serve Alcoholic Drinks 5 stars: 150,000.00 4 stars: 100,000.00 3 stars: 70,000.00 Less than 3 stars: 45,000.00 Hotel Establishments other than resorts, motels, and the like: 40,000.00 5 Issuing or renewing a permit for a club or restaurant to serve Alcoholic Drinks 25,000.00 6 Issuing or renewing a permit for an individual to obtain Alcoholic Drinks 250.00 7 One-time permit to re-export Alcoholic Drinks 1,000.00 8 A permit to serve Alcoholic Drinks during ceremonies 1,000.00 per ceremony

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 7 of 8 Schedule (2) Violations and Fines SN Violation Fine (in Dirhams) 1 Importing or re-exporting Alcoholic Drinks without a permit 500,000.00 2 Supplying others with Alcoholic Drinks without a permit 100,000.00 3 Selling or serving Alcoholic Drinks to others without a permit 500,000.00 4 Obtaining Alcoholic Drinks without a permit 50,000.00 5 Procuring Alcoholic Drinks from other than licensed Establishments 100,000.00 6 Failure to pay the fee imposed on the Establishment sales of Alcoholic Drinks within the prescribed deadline 10% of the outstanding fee for each month of delay 7 Failure to maintain the records mentioned in Article (5) hereof or failure to enter the required information in these records 100,000.00 8 Failure to provide the data, records, balance sheets, or information requested by the DM within the prescribed time frame 50,000.00 9 Providing incorrect, incomplete, or false data, statements, or records 100,000.00 10 Failure to follow the recognised accounting standards for keeping accounting records, or failure to use the financial systems specified by the DM 50,000.00 11 Failure to have the financial statements and balance sheet of an Establishment approved by an auditor licensed to operate in the Emirate 50,000.00 12 Failure to maintain invoices of Alcoholic Drinks for at least three (3) years from the date of their sale 50,000.00 13 Obstructing the work of authorised DM employees and inspectors 20,000.00

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Decree No. (1) of 2016 Approving Fees and Fines of Government Entities in the Emirate of Dubai Page 8 of 8 14 Advertising Alcoholic Drinks in any manner whatsoever, or sponsoring any event related to Alcoholic Drinks 20,000.00 15 Evade the payment of the DM fee in any manner whatsoever 10% of the outstanding fee

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