UAE Healthcare / Pharma LawCabinet Resolution No. (98) of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing Tobacco Products and Derivatives

Article (1) Definitions In the application of the provisions of this Resolution, the following words and expressions shall have the meanings indicated opposite each of them unless the context requires otherwise: State : United Arab Emirates. Competent Authorities : The federal and local government authorities that fall within its jurisdiction to implement any of the provisions of this Resolution. Licensing Authority : The local authority or the free zone authority that is competent to issue agricultural or industrial licences for tobacco and its products. Approved Standard Specifications : The standards approved by the Ministry of industry and Advanced Technology, which are referred to as UAE Standard Specifications and shall be abbreviated as (UAE.S).

-- 1 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 2 Conformity Certificate : A Certificate issued by the Ministry of industry and Advanced Technology, which confirms that the conformity of the Product or any payment thereof with the requirements of the Approved Standard Specifications or the obligatory standard specifications. Tobacco : Tobacco plant of all types, varieties, and its parts including roots, stems, leaves, fruits, and green or dried seeds. Tobacco Products/Derivatives : Products that consist totally or partially of tobacco leaves as raw material, whether whole, cut, or chopped, and whether in its natural condition, mixed with other substances, or processed in any form, and tobacco powder in any of its forms or any other composite material containing tobacco. Product : The product that is fully or partially made from tobacco leaves as raw material, manufactured for the purpose of smoking tobacco or making liquids and products used in electronic alternatives to traditional tobacco products. Supplier : Every person whose activity has an impact on tobacco, its products and derivatives, including the manufacturer, importer, carrier, assembler, filler, agent, warehouse, or any major or subsidiary distributor or any legal representative who is responsible for the import, installation, and operation of the product subject to the provisions of this Resolution, and who carries out his activity through a licensed company or individual establishment in the State in accordance with the relevant legislation. Farmer : Every natural or legal person who holds a licence to exercise tobacco cultivation from the licensing authority in the State. Manufacturer : Every natural or legal person who holds a licence to exercise manufacturing activities from the licensing authority in the State.

-- 2 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 3

Article (4) Obligations of Licensees to Cultivate Tobacco All persons who obtained licences to cultivate tobacco shall abide by the following: 1. Keeping accounting records that show the area cultivated in square meters, quantities of production, sales, purchases, and waste quantities. 2. Fulfilling requirements of Ministry of Climate Change and Environment with respect to importing tobacco seeds and seedlings. 3. Keeping records and tracking data for soled products, including the supply date, production date, and the names of sales outlets. 4. Keeping records of suppliers for all agricultural materials and inputs that show the sources of materials and its expiration dates.

-- 3 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 4 5. Not to transport unprocessed tobacco from its location before submitting a request to the licensing authority and acquiring a consent that includes the location to which the tobacco will be transported and the time of such transport, in accordance with the procedures applicable in each Emirate, keeping the following into account: a. The records shall contain the exact quantity of tobacco desired to be transported and restricted. b. The entity to which unprocessed tobacco is transported, and the purchaser shall be determined. 6. The scales and calibres used for weighing tobacco shall be accurate and conform with the approved standard specifications. 7. A farmer may not sell tobacco except through a licensed supplier who is authorized to sell and trade in tobacco and/or its products and derivatives. 8. No other agricultural products may be grown in the lands where tobacco is cultivated. 9. All necessary measures shall be taken upon cultivating tobacco. These shall include treating the soil designated for tobacco cultivation to ensure that there is no leakage of harmful substances into adjacent land or groundwater. 10. Health requirements outlined in the legislations applicable in the State and relate to occupational health and safety for workers in tobacco cultivation shall be fulfilled, including the use of personal protective equipment as determined by the competent authority. 11. Medical Fitness Certificate for workers involved in tobacco cultivation shall be acquired annually throughout the period of working in the cultivation and transport of tobacco, provided that the employer shall bear the costs of medical examinations and issuing Medical Fitness Certificates by health authorities. 12. Providing the competent authorities with reports on the whole information relevant to tobacco cultivation upon request.

-- 4 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 5

Article (6) Obligations of Licensees for Manufacturing Tobacco, its Products or Derivatives All persons who obtained licences to cultivate tobacco, tobacco products or derivatives shall abide by the following: 1. No consignment of tobacco shall be allowed to enter the industrial facility unless it is accompanied by the relevant documentation issued by the competent authorities. 2. A statement containing the weight of tobacco stored in the facility or warehouse, whether processed or unprocessed, and its origin shall be kept and disclosed. Number of tobacco products manufactured for each production line shall be calculated according to the mechanism and methods determined by the competent authorities. 3. A monthly statement of the quantities produced for each type of tobacco product and the production dates shall be prepared. 4. A Conformity Certificate for the product in accordance with the standard specifications and technical regulations approved in the State shall be obtained.

-- 5 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 6 5. Safe disposal of waste and by-products of tobacco manufacturing shall be made in accordance with the legislations applicable in the State with respect to waste. Waste resulting from the production and use of tobacco may not be recycled. 6. Health requirements outlined in the legislations applicable in the State and relate to occupational health and safety for workers in manufacturing facilities shall be fulfilled, including the use of personal protective equipment as determined by the competent authority. 7. Environmental requirements stipulated in legislations applicable in the State in addition to periodical monitoring for health environment at the factories shall be complied in order to ensure continuity of work safety and security in such factories.

Article (7) Responsibilities 1. The licensing authority shall perform the following: a. Supervise and inspect farms and industrial facilities that obtained the licence to ensure that provisions of this Resolution are enforced. b. Ensure allocation of specific lands designated for tobacco cultivation which are far from any agricultural lands designated for cultivating food products. Such distance shall be determined by the competent authorities based on environmental impact studies and land allocation and urban planning requirements issued in this respect. c. Ensure that places of factories are far from residential areas with the distances determined by the competent authorities. d. Oversee the markets to ensure that tobacco, its products or derivatives acquired conformity certificate according to approved standard specifications. e. Impose administrative penalties stipulated in Article (8) of this Resolution on whoever violates its provisions.

-- 6 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 7 f. Determine the fees and organize the procedure to collect the fees of practising tobacco cultivation or manufacturing. g. Notify the competent authorities with the results of the supervision on farms and industrial facilities and the procedures taken in this respect. 2. The competent authorities shall, each within its jurisdiction, be responsible to enforce the provisions of this Resolution. To this end, the competent authorities may take the procedures they deem appropriate and in accordance with legislations applicable at such authorities. 3. Ministry of industry and Advanced Technology shall receive and study the applications to register the product and granting conformity certificates in accordance with applicable legislations in the Ministry. The Ministry also shall share the details of suppliers who obtained conformity certificates with the competent authorities pursuant to provisions of this Resolution.

Article (15) 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. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by Us: On: 10/10/2023 AD Corresponding to: 25/ Rabi` al-Awwal/1445 A.H.

-- 9 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 10 Table of Violations and Administrative Penalties Annexed to Cabinet Resolution No. (98) of 2023 Regulating the of Licensing Tobacco Cultivation and Manufacturing Tobacco Products and Derivatives The Authority imposing the penalty and collecting the fine Administrative Penalty Violation No. Licensing Authority When the violation is repeated When violation is committed for the first time Imposing a fine of (50,000) Fifty thousand Dirhams Imposing a fine of (10,000) ten thousand Dirhams Practising tobacco cultivation activity without obtaining a licence from the local licensing authority. 1 Imposing a fine of (100,000) one hundred thousand Dirhams Imposing a fine of (50,000) Fifty thousand Dirhams Practising tobacco manufacturing activity, its products and derivatives, without obtaining a licence from the local licensing authority. 2 Cancellation of the Licence Temporary suspension of the license, provided that such suspension shall not exceed six (6) months. Submitting incorrect data or documents, or misleading information, in order to obtain an agricultural or industrial licence. 3

-- 10 of 11 --

Cabinet Resolution of 2023 Regulating the Licensing of Tobacco Cultivation and Manufacturing of Tobacco Products and Derivaties 11 Cancellation of the Licence Temporary suspension of the license, provided that such suspension shall not exceed six (6) months. Violation of the obligations stipulated in provisions of