UAE International Trade / Sanctions LawFederal Decree-Law No. (43) of 2021 On the Goods Subject to Non-Proliferation

Article (1) Definitions For the purpose of applying the provisions hereof, the following words and expressions shall denote the meanings assigned thereto respectively, unless the context requires otherwise:

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 2 State : The UAE. Competent Entity : The entity designated and regulated under a cabinet resolution based on the proposal of the Minister of Foreign Affairs and International Cooperation. Entities Concerned : The federal or local entity having the authority over the circulation of the goods that are subject to this Decree-Law. Non-Proliferation : The prohibition of illegal and unauthorized circulation of goods that are involved in the production or development of weapons of mass destruction, the technology associated thereto and their means of delivery. Goods/ Item of goods : The materials, systems, equipment, components, software or technology listed in the Goods Schedule. Goods Schedule : The goods schedule to be issued under a resolution of the Cabinet. Circulation of Goods : The import, export, re-export, trans-shipment, in-transit shipping or transportation between ports or brokerage activities, whether carried out by a natural or legal person. Import : Bringing the item of goods into the State through customs ports or free zones. Export : Taking the item of goods out of the State, including goods produced in the free zones through customs ports. Re-export : Exporting the pre-imported goods through the customs ports of the State or free zones, including the return of the item of goods to the country of origin. In-transit shipping : The entry and subsequent exit of the goods loaded on a means of transport at a customs port in the State, without unloading the item of goods from the means of transport, while remaining under customs control. Transshipment : The transit of the goods loaded on a means of transport at a

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 3 customs port in the State by unloading them from the means of transport and loading them into another means of transport for the purpose of shipping them outside the State, while remaining under customs control. Transportation between ports : The transportation of goods loaded on a means of transport from a customs port to another inside the State without opening the shipment, while remaining under customs control. Permit : The prior authorization for circulating the goods set out in Article (2) hereof. Beneficiary : The natural or legal person who applies for the permit. Means of Transport : Any land, sea or air transportation means. Technology : Specific information necessary for the development, production or use of goods, in the form of technical data that is embedded or integrated into schemes, designs, plans, graphs, models, equations, tables or engineering designs, or embedded or integrated into details, manuals, or instructions written or recorded on a device. Document : Any document, record, or part of either of them, whether in paper or electronic form preserved on a magnetic, optical or chemical means, or a photograph, map, scheme, chart, picture or drawing. Device : Any tangible medium that records, stores or embodies a technology, through which the information or data contained therein could be retrieved or produced, with or without other equipment. Relevant Activity : Any practices aimed at creating, developing, producing, handling, operating, maintaining, storing, deploying or using any weapon, including nuclear, chemical, biological or radiological weapons, missiles equipped with such weapons, or any other activity

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 4 related to the weapons of mass destruction. Weapons of Mass Destruction : Weapons capable of inflicting substantial harm upon a large group of people and threatening life and natural environment through their catastrophic effects, such as nuclear, biological, chemical and radiological weapons. Comprehensive Seizure : The seizure of a item of goods that is not listed in the Goods Schedule due to suspicions about its use or the end user, or because it is included in the national or international lists of bans or penalties. Brokerage : Mediation between the seller and the buyer with the aim of facilitating a business deal in return for an agreed benefit or fee.

Article (4) Permit Issuance Conditions Without prejudice to the obligations imposed by the legislation in force in the State and the relevant international agreements ratified by the State, the competent entity shall issue a permit for the beneficiary in accordance with the following conditions: 1. The permit shall be compatible with the licensed activity of the beneficiary. 2. The end user shall obtain permission or permit from the competent authorities in the country receiving the item of goods in accordance with the latter's legislation, if necessary. 3. The beneficiary shall submit any information or data related to the course of the item of goods if it passes through more than one country. 4. Any other conditions specified by the Executive Regulations of this Decree-Law.

Article (7) Permit Revocation Cases 1. The competent entity may revoke the permit in any of the following cases: a. If it is established that the circulation of the item of goods for which the permit has been granted is detrimental to safety, public health, environment, natural resources or national security. b. If the circulation of the goods for which the permit has been issued is prohibited or restricted. c. If the permit is used for any purpose other than the intended purpose thereof. d. If the permit is issued based on fraud, misinterpretation or documents or information contrary to the facts. e. If the permit issued in the name of a particular holder is used by a different person. f. If the permit holder is listed on the international ban or sanctions lists. 2. The permit shall be considered revoked if any deletion or alteration occurs to it.

Article (9) Prohibited Acts 1. No person may carry out any of the following acts unless and until a permit is obtained beforehand:

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 7 a. Circulate any of the goods stipulated in Article (2) hereof. b. Deliver, transfer, publish, leak or share any document or device related to any of the goods stipulated in Article (2) hereof. 2. Notwithstanding the provisions of Clause (1) of this Article, it shall be prohibited for any person to circulate any item of goods listed in the Goods Schedule, or to transport, deliver, transfer, publish, leak or share any document or device related to any of such goods, in the following cases: a. If such a person has been notified by the competent entity that the underlying item of goods, document or device will be involved or likely to be involved, in whole or in part, in an activity related to any of the goods mentioned in Article (2) hereof. b. If the person is aware that the underlying item of goods, document or device will be involved or likely to be involved, in whole or in part, in an activity related to any of the goods mentioned in Article (2) hereof. c. Any other cases described in the Executive Regulations of this Decree-Law.

Article (10) Exceptions to Article (9) The following two cases shall be excluded from the scope of the provisions of Article (9) hereof: 1. If the information or documents are shared at the request of the judicial authorities in the State. 2. If the information or documents are shared so as to enable a foreign government to investigate or prosecute a foreign person in its country for a crime committed on its territory, and such crime is related to any of the goods mentioned in Article (2) hereof or any of its documents, subject to the legislation in force in the State and according to the following conditions: a. A decision shall be issued by the competent entity allowing the sharing of such information or documents. b. Such information or documents may only be used for the purpose of investigation or trial for which they have been requested.

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 8 c. The foreign government undertakes not to violate the sovereignty, security or any vital interests of the State, and to abide by any condition set by the State for the use of such information or documents.

Article (11) Prohibited Agreements and Contracts It shall be prohibited for any person to carry out brokerage, negotiation or any other act to facilitate the conclusion of the following contracts: 1. Contracts of ownership or disposition related to any of the following goods, if the person knows or has good grounds to suspect that the contract will lead or is likely to lead to the transfer of goods from one country to another: a. The goods mentioned in Article (2) hereof. b. The goods notified in writing to the person by the competent entity that they will be used or are likely to be used, in whole or in part, in an activity related to the weapons of mass destruction. c. Goods the person knows that they will be involved, in whole or in part, in an activity related to the weapons of mass destruction. d. Goods for which the person has reasonable grounds to suspect that they will be involved or are likely to be involved, in whole or in part, in an activity related to the weapons of mass destruction. 2. Contracts of ownership, disposition or publication of any document, device or technology related to the following goods, if the person knows or has good grounds to suspect that the contract will lead or is likely to lead to the transfer of the technology, document or device from one country to another: a. Goods mentioned in Article (2) hereof. b. Goods that are covered by a notice served in writing to the person by the competent entity indicating that they will be involved or are likely to be involved, in whole or in part, in an activity related to the weapons of mass destruction. c. Goods which the person knows that they will be involved, in whole or in part, in an activity related to the weapons of mass destruction.

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 9

Article (18) 1. A penalty of imprisonment for a period of not less than one year and / or a fine of not less than (AED 100,000) one hundred thousand dirhams and not more than (AED 1,000,000) one million dirhams, shall be imposed on any person who commits any of the following acts: a. Violates any of the provisions of Articles (9) and (11) hereof. b. Provides false or misleading information or documents containing false or incorrect data in order to obtain a permit.

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 11 c. Forges or modifies the permit. 2. The acts stipulated in item (1) of this Article are considered crimes against the security of the State. 3. The penalty shall be doubled in case of recidivism. 4. In the event of conviction, the court shall decide to confiscate the goods involved in the crime. 5. The court shall order the deportation of the foreigner after the execution of the sentence imposed on him.

Article (24) Administrative Penalties and Violations 1. The competent entity may impose any of the following administrative penalties on the permit holder in case that he violates any of the provisions of this Decree-Law, its Executive Regulations or the decisions issued in implementation thereof: a. Warning. b. Revocation of the permit. c. An administrative fine of not less than (AED 50,000) fifty thousand dirhams and not more than (AED 200,000) two hundred thousand dirhams. d. Doubling the administrative fine when repeating the violation, provided that it does not exceed (AED 400,000) four hundred thousand dirhams. e. Permanent or temporary closure for a period not exceeding six months, after coordination with the Entities Concerned. 2. None of the penalties provided for in Clause (1) of this Article shall be imposed unless and until the offender or his legal representative has been heard and his defence has

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 13 been investigated in writing. If he has not been present, or if he is present but has not shown any defence, the sanction may be imposed based on the papers established in the file. 3. The imposition of the penalties stipulated herein shall not prejudice the imposition of any of the administrative penalties stipulated in Paragraph (1) of this Article. 4. Based on the proposal of the competent entity, the cabinet may: a. Amend the value of the administrative penalties set out in this Article. b. Issue a table of the administrative violations and sanctions imposed according to this Article.

Article (26) Collecting a Percentage of the Proceeds of Confiscated Goods The Cabinet may, based upon the proposal of the competent entity and after coordination with the Ministry of Finance, issue a resolution to collect a percentage of the proceeds of the sale of the violating goods that are seized by such entity, and for which a federal judicial order or decision on confiscating the same has been issued. The resolution shall specify the percentage that shall devolve to such entity and the manner and requirements for the disposition of the same. The competent entity may agree with the entity concerned in any of the emirates of the State to transfer a percentage of the proceeds of the sale of goods for which a judgment is issued for confiscating the same from the courts of the emirate concerned, in accordance with the provisions hereof, whenever the seizure process was carried out through the competent entity or based on its contributions.

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 14

Article (30) Repeals 1. Federal Law No. (13) of 2007 Concerning Goods Subject to Import and Export Control shall be repealed. 2. Any provision that contradicts or goes against the provisions hereof shall be repealed. 3. The Committee for Goods Subject to Import and Export Control established in accordance with Federal Law No. (13) of 2007 referred to, and the Executive Office thereof shall continue to exercise their powers until a Cabinet resolution is issued specifying the competent entity, so that the Committee and the Executive Office shall both be abolished upon the issuance of the aforementioned Cabinet resolution. 4. The competent entity shall, after the issuance of the Cabinet resolution, shall replace the Committee for Goods Subject to Import and Export Control and the Executive Office thereof in respect of all competences, legislation, rights, and financial and legal obligations. All of their assets and property shall be transferred to such entity. 5. The regulations and decisions issued prior to the implementation of the provisions of the

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Federal Decree-Law No. (43) of 2021 on the Goods Subject to Non-Proliferation 15 present Decree shall continue to be in full force and effect, without conflicting with its provisions, until the regulations and decisions that replace them are issued in accordance with the provisions hereof.