UAE Corporate / Commercial LawCabinet Resolution No. (89) of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law No. (3) of 2022 Regulating Commercial Agencies

Article (3) Administrative Penalties 1. Without prejudice to any harsher penalty or measure prescribed by the law, the Ministry

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 2 may impose administrative penalties for acts committed in violation of the provisions of the law as listed in the table attached to this resolution. 2. Exceptionally, and in cases of severe violations, the Ministry may impose the harshest administrative penalty without following the prescribed progression mentioned in the table attached hereto. 3. The amount of administrative fines specified in the table attached hereto shall be collected according to the mechanism determined by the Ministry of Finance after coordination with the Minister. 4. For the purpose of collecting the administrative fine specified in the table attached hereto, a part of a day shall be considered a full day, and a part of a month shall be considered a full month.

Article (3) A written warning shall be issued to the violator, granting a period A fine of (20,000) twenty thousand Dirhams. Temporary deregistration of the commercial agency with the Final deregistration of the commercial agency with the Ministry in case of

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 7 of (15) fifteen days, calculated from the date of sending the warning. Ministry in case of non-renewal of registration for the second consecutive year. non-renewal of registration for the third consecutive year. 6 Selling or providing goods or services that have a registered agent with the Ministry by another person other than the agent.

Article (3) A written warning shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning. A fine of (100,000) one hundred thousand Dirhams. A fine of (200,000) two hundred thousand Dirhams and confiscation of the goods by the customs departments, relevant authorities, and competent A fine of (400,000) four hundred thousand Dirhams, and seizure of goods by the customs departments, relevant authorities, and competent authorities, each in their respective jurisdiction. Additionally,

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 8 authorities, each in their respective jurisdiction. temporary administrative closure for a period not exceeding (6) six months, which may be renewed only once. 7 Providing false or misleading information regarding the commercial agency.

Article (4) Appealing the Administrative Penalties 1. The Ministry shall notify the concerned parties of the administrative penalty within (15) fifteen days from the date of its issuance. 2. Every party with an interest shall have the right to appeal the administrative penalty to the Minister, within (30) thirty days from the date of being notified of the contested decision. The appeal shall be substantiated and accompanied by all supporting documents. The appeal shall be decided upon within (30) thirty days from the date of submission thereof, in accordance with the procedures followed by the Ministry. The expiration of this period without the issuance of a rejection decision shall be considered as a rejection of the appeal. 3. The resolution issued on the grievance shall be final. 4. An appeal against the decision to impose the administrative penalty shall not be accepted after the expiration of the period specified in clause (2) of this article.

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 3

Article (4) A written warning shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to A fine of (100,000) one hundred thousand Dirhams. A fine of (200,000) two hundred thousand Dirhams. A fine of (400,000) four hundred thousand Dirhams, and temporary administrative closure for a period not exceeding (6) six months, which may be renewed only once.

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 9 rectify the violation. 8 The agent continues to practise the activities of the commercial agency during the period of dispute, whenever the Ministry designates an exclusive source for the entry of goods or services. Clause (3) of Article (9) A written warning shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. A fine of (100,000) one hundred thousand Dirhams. A fine of (200,000) two hundred thousand Dirhams. A fine of (400,000) four hundred thousand Dirhams, and temporary administrative closure for a period not exceeding (6) six months, which may be renewed only once. 9 Failure of the agent, their heirs, or

Article (7) Publication and Entry into Force This Resolution shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication. Signed Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: On: 8 Safar 1445 A.H. Corresponding to: 25 August 2023 AD

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 4 Annex 1 Schedule Annexed to Cabinet Resolution No. (89) of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law No. (3) of 2022 Regulating Commercial Agencies Administrative Penalties S Violation Description Legal Reference The First Time The Second Time The Third Time The Fourth Time 1 The commercial agency is owned by non- citizens of the country Clause (1) of Article (2) Deregistration of the commercial agency, in case the Ministry found that the commercial agency is not entirely owned by citizens of the – – –

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 5 country 2 The ownership percentage in the public joint-stock company is less than (51%) to citizens of the country Clause (3) of Article (2) Deregistration of Commercial Agency – – – 3 The global company practising commercial agency activities for its own products without obtaining approval from the Cabinet, in accordance with the law Clause (2) of Article (2) Deregistration of Commercial Agency – – –

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 6 4 Non- registration of the commercial agency in the commercial agencies registry with the Ministry

Article (7) and (20) A written warning shall be issued to the violator, A fine of (100,000) one hundred A fine of (200,000) two hundred A fine of (400,000) four hundred thousand Dirhams

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 13 activity designated for the agent, as specified in the commercial agencies registry. granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. thousand Dirhams. thousand Dirhams. 13 Requesting the termination of the commercial agency contrary to the cases, conditions, and specified durations stipulated in the law. Clause (1) of Article (30) A written warning shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of A fine of (5,000) five thousand Dirhams. A fine of (10,000) ten thousand Dirhams. A fine of (20,000) twenty thousand Dirhams, and temporary administrative closure for a period not exceeding (6) six months, which may

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 14 sending the warning, to rectify the violation. be renewed only once. 14 Violating the provisions of the law and the implementing resolutions thereof, except in the cases mentioned in the preceding clauses herein. – A written warning shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. A fine of (30,000) thirty thousand Dirhams. A fine of (60,000) sixty thousand Dirhams. A fine of (120,000) one hundred and twenty thousand Dirhams, and temporary administrative closure for a period not exceeding (6) six months, which may be renewed only once.

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Article (15) A written warning shall be issued to A fine of (10,000) ten A fine of (20,000) twenty thousand A fine of (40,000) forty thousand

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 10 representative s thereof to submit a request to the Ministry for amending or making changes to the commercial agency within (60) sixty days from the date of becoming aware of such change or modification the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. thousand Dirhams. Dirhams. Dirhams, and temporary administrative closure for a period not exceeding (6) six months, which may be renewed only once. 10 Failure of the agent or legal representative thereof to submit a request to the

Article (16) A written warning shall be issued to the violator, granting a period not exceeding A fine of (10,000) ten thousand Dirhams shall be imposed on A fine of (20,000) twenty thousand Dirhams. A fine of (40,000) forty thousand Dirhams, and temporary administrative

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 11 Ministry for the deregistration from the commercial agencies registry if any condition stipulated by the law has been violated, or if the commercial agency has expired and not been renewed, within a maximum period of (60) sixty days from the date the reason for deregistration occurs. (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. the agent or legal representative thereof. closure for a period not exceeding (6) six months, which may be renewed only once. 11 Failure of the agent Article A written warning A fine of A fine of A fine of (400,000)

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Cabinet Resolution of 2023 Concerning the List of Administrative Penalties for Acts Committed in Violation of the Provisions of Federal Law of 2022 Regulating Commercial Agencies 12 to fulfil the legal obligations thereof regarding the provision of spare parts, tools, materials, accessories, and necessary components for the maintenance of durable goods, as well as providing maintenance services. (19) shall be issued to the violator, granting a period not exceeding (15) fifteen days, calculated from the date of sending the warning, to rectify the violation. (100,000) one hundred thousand Dirhams. (200,000) two hundred thousand Dirhams. four hundred thousand Dirhams 12 Trespassing on the territory of the commercial agency