Abu Dhabi, Aug. 31st, 2007 (WAM)---President H.H. Sheikh Khalifa bin Zayed Al Nahyan today issuedFederal Law No. 13 of 2007 on commodities that are subject to import and export control procedures.

Chapter 1 of the new law authorizes the concerned authorities to ban or restrict the importing, exportingor re-exporting of any commodity for reasons related to safety, public health, environment, natural resources,national security or for reasons related to the UAE's foreign policy, taking into account any restrictionswhich may currently be imposed on those commodities by laws already in effect and by the existing powersof the concerned authorities, and in compliance with the international treaties that the UAE ratifiedor joined.

The new federal law seeks to standardize such procedures throughout the UAE, since geographically-limitedprocedures would not provide the desired result of banning or restricting a particularcommodity and because varying or differing control procedures would disrupt trade in the country as awhole.

The new law directs the cabinet to order the establishment of a new control body to be known as the NationalCommission for Commodities Subject to Import, Export and Re-export Control. A representative of the Ministryof Economy (MoE) shall head the new commission, whose membership will include representatives of otherconcerned federal ministries and bodies and the private sector. It will be tasked with cooperating andcoordinating with relevant authorities on the rules introduced to control imports and exports in compliancewith the new law. It will also provide technical advice to federal and local bodies to ensure the enforcementprovisions of Chapter 1 are applied in the best interest of the integrity of the country's trade interests.

Accordingly, any local body or department that has reasons to ban or restrict a certain commodity willrecommend the commission to do the same nationwide.

The said commission will also inspect the procedures that are currently in place in the country and whichform the base for any possible bans or restrictions on any commodities.

Provisions of Chapter 1 of the new Law include the general framework for control of the issue of importand export licenses, namely the period set to consider applications and any complaints from applicantsagainst decisions by the relevant body to cancel licenses.

Chapter 2 regulates the procedures aimed at controlling the import and export of strategic commoditiesas well as the export and re-export of technological commodities, in addition to the brokerage of importsor transport of the same.

+Section 1 of Chapter 2 provides the legal texts which regulate the dealing in strategic commodies whileSection2 includes the Strategic Commoditoes List as an annex to the law.

The law falls into 4 Parts. Part 1 defines technical terms used in the Strategic Commodities List, Part2 includes three lists of commodities, of arms, military equipment and hardware, chemicaland biological commodities and dual-use commodities which refer to items that may be usedfor both civil and military purposes.

Section 3 of the Strategic Commodities List specifies certain cemical and biological commodities whichmaynot temporarily transported unless a relevant consent is provided. Section 3 of the said list names cchemicaland biological commodities for which are not allowed to act as mediators, brokers or negotiators withoutprior consent.

The provisions of Chapter 2 of the Law deal with issues of export, re-export and transhipmentof strategic and related technological commodities through the UAE's ports andregulates brokeringand mediating contracts for transport of these outside the UAE or from one destination to another,also outside the UAE.

UAE laws ban the export or re-export of strategic commodites or related technologies without prior consentfrom the Commission for Strategic Commodities to ensure that such commodities will not fall into thehands of unlicensed individuals or reach countries or destinatoins that are not covered by the UAE'scompliance with international treaties.

The provisions of Chapter 2 are not limited to commodities specified in the list, but cover eachcommodity, item and technology specified by the Commission for Stretegic Commoditieswhere concerned individuals know it may be used for military purposes or in the productionof military equipment, be it conventional weaponry or weapons of mass destruction (WMD).

The new law on commodities subject to import and export control procedures also provides forthe setting up of the National Commission for Strategic Commodities. Thge Commission's membership willinclude representatives of the relevant federal ministries, bodies and departments as well as representativesof the Federation of UAE Chambers of Commerce & Industry (FCCI). It will be tasked with the enforcementof Chapter 2 of the Law as well as with the setting up of an affiliated executive body.

Chapter 2 also laws down the procedures for obtaining licences to deal in strategic commodities and relatedtechnologies, rules for acting as a mediator, broker or negotiator in related contracts and for the lodgingof any complaints against decisions by the commission.

Given that each country producing or possessing such commodities is obliged to impose relevant controlson their movement to foreign destinations, Chapter 2 of the new law does not include any provisionson the import of strategic commodities, its purpose being not to prevent the UAE from possessing or importingsuch commodities for legal purposes. Imports of such commodities are usually imported by theUAE's government departments or are subject to to control by the concerned authorities in the UAE orin the exporting country.

Chapter 3 specifies the penalties, ranging from a maximum impsisonment and /or fines of one year andAED 1 million for those who breach the law by carrying out any activitity related to the export or re-exportof any strategic commodity or related technology, including brokerage or involved in related contracts.

Chapter 4 provides for the issuance by the Cabinet of relevant regulations which shall be published inthe Official Gazette within one month from the issuing of the law.