UAE Corporate / Commercial LawCabinet Resolution No. (11) of 2020 Concerning the Executive Regulation of Federal Law No. (19) of 2016 on Combating Commercial Fraud

Article (1) Definitions The definitions stated in the aforementioned Federal Law No. (19) of 2016 shall apply to this Resolution. Otherwise, the following words and phrases shall have the meanings assigned to each of them, unless the context requires otherwise: Specifications : Mandatory standard specifications approved by the Emirates Authority for Standardisation & Metrology in the State. Country of Origin : The country where the goods are produced. Exporting Country : The country from which the goods are directly imported. Law : Federal Law No. (19) of 2016 On Combating the Commercial Fraud.

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Cabinet Resolution of 2020 Concerning the Executive Regulation of Federal Law of 20…

Article (2) Competent Authority Examination Procedures of Adulterated and Spoiled Goods The Competent Authority may, when necessary or in the event there are reasons to believe that there are goods in violation of the provisions of the Law, do the following: 1. Taking three samples of the goods, seized with the quantities and amount necessary for examination or testing, determining the extent of their conformity with the approved standard specifications, and guarding them in a manner that they cannot be opened; then handing over one of those samples to the merchant or his representative and the second one to the authority concerned with examination and testing; and the last one shall be main…

Article (3) Withdrawing Adulterated Goods from Markets Without prejudice to the legislation in force in the State, if the Sub-Committee finds that the merchant has goods inside the State, or that goods offered on the market, that constitute commercial fraud, it must notify the Ministry within (2) two working days of the same. The Minister may issue a resolution to withdraw the goods from the markets, and the Sub- Committees are obligated to implement such resolution and dispose of the goods in accordance with the provisions of this Resolution.

Article (4) Competent Authority's Disposal of Adulterated or Spoiled Goods If the merchant refuses to return the adulterated or spoiled goods to the country of origin or the exporting country, in accordance with Clause (7) of Article (2) of this Resolution, the Competent Authority shall establish his refusal to do so, and it may dispose of those goods with any of the following actions under the supervision of the Sub-Committee: 1. Destroying it. 2. Returning it to the country of origin or the exporting country, according to the following conditions: a. The presence of goods in places intended for import and export or re-export. b. The merchant shall not initiate a return action within the sp…

Article (5) Controls for Destroying Counterfeit Goods The Competent Authority that seizes the counterfeit goods shall establish the merchant’s violation regarding importing these goods, and destroy them whatever their nature is; provided that their destruction shall not lead to environmental or health damages and that it shall be made under the supervision of the Sub-Committee, according to the following controls: 1. The presence of a judicial order or a resolution of the Sub-Committee to destroy. 2. The presence of a representative of the Sub-Committee. 3. Verifying the destruction in a manner preventing use or consumption. 4. Preparing a report of the destruction signed by the representati…

Article (6) Recycling Counterfeit Goods If the destruction stipulated in Article (5) of this Resolution is not possible, the Head of the Competent Authority that seizes the counterfeit goods may order, under the supervision of the Sub-Committee, to destroy these goods by recycling them whenever possible and achievable, at the merchant’s expense.

Article (7) Obligating the Merchant to Pay the Expenses of Disposing of the Goods in Violation The merchant shall be notified of the value of the expenses and fees incurred by the Competent Authority in consideration of disposing of the violating goods that were seized, and he must pay it within (15) fifteen working days as of the date of notification. If he does not pay it within the specified time and does not provide an excuse accepted by the Competent Authority, then it may take the legal measures to claim the value of expenses and fees.

Article (8) Warnings If it is proven for the Competent Authority that there is a violation at one of the establishments, it must refer the violation to the Sub-Committee to perform the following: 1. A written warning to the establishment of the violation committed. The establishment must remove or withdraw the violation within (3) three working days as of the date of notification.

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Cabinet Resolution of 2020 Concerning the Executive Regulation of Federal Law of 2016 on Combating Commercial Fraud 6 2. A final written warning to the establishment of its non-compliance with the previous warning, within (3) three working days as of non-compliance.

Article (9) Conciliation Procedures before the Sub-Committee Those who are found to be in violation of the provisions of the Law or this Resolution, or any of the resolutions implementing the Law, may request conciliation before the Sub- Committees in accordance with the provisions of this Resolution.

Article (10) The Sub-Committee shall notify the establishment of the violation committed thereby through any means of communication. The violator may request conciliation before the Sub- Committee within (15) working days as of the date of notifying him. In the event of not requesting conciliation during this period, the violation shall be referred to the Public Prosecution.

Article (11) 1. The Sub-Committee shall consider the request for conciliation within (5) five working days as of the date of its submission. 2. In the event of accepting the conciliation, the violator shall be notified of acceptance, and a date shall be specified in which the minutes of the conciliation shall be drawn up for the violation attributed thereto, including the conciliation amount and the time period in which it shall be paid. 3. If the conciliated violator does not pay the conciliation amount within the time specified in the minutes, the conciliation shall be deemed cancelled, and the violation shall be referred to the Public Prosecution. 4. The conciliation minutes and relevant…

Article (12) Sub-Committees' Periodic Reports The Sub-Committees shall submit, at least every six months, periodic reports on the work assigned thereto in accordance with the Law and the resolutions implementing thereof to the Ministry using the forms approved thereby.

Article (13) Issuance of Implementing Resolutions The Minister shall issue the resolutions necessary to implement the provisions of this Resolution.

Article (14) Repealing the Violating Provision Any provision that violates or contradicts the provisions of this Resolution shall be repealed.

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Cabinet Resolution of 2020 Concerning the Executive Regulation of Federal Law of 2016 on Combating Commercial Fraud 8

Article (15) Publication and Enforcement This Resolution shall be published in the Official Gazette; and shall enter into force as of the day following the date of its publication. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by us: On: 7/ Rajab/ 1441 H Corresponding to: 2/ March/ 2020 AD

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