Federal
Law No. 1 of 2017
Corresponding
to 19 Rajab 1438 H
ON
COMBATING DUMPING AND THE COUNTERVAILING AND PREVENTIVE MEASURES
We
Khalifa Bin Zayed Al Nahyan President of the United Arab Emirates,
Pursuant
to the perusal of the Constitution;
Federal
Law no. (1) of 1972 on Competencies of the Ministries and Powers of the
Ministers and its amendments;
Federal
Law no. (1) of 1979 on the Regulation of Industrial Affairs;
Federal
Law no. (4) of 1979 on the suppression of fraud and deception in commercial
transactions;
Federal
Law no. (3) of 1987 promulgating the Penal Code and its amendments;
Federal
Law no. (11) of 1992 promulgating the Civil Procedure Law and its amendments;
Federal
Law no. (28) pf 2001 on the establishment of Emirates Standardisation and
Metrology Authority (ESMA) and its amendments;
Federal
Law no. (19) of 2002 on increasing the customs duties on goods and commodities
imported from outside the GCC countries;
Federal
Law no. (1) of 2006 on e-commerce and transactions;
Federal
Law no. (4) of 2012 on the Regulation of Competition;
Federal
Law no. (2) of 2015 on Commercial Companies;
Federal
Law no. (8) of 2015 on the establishment of the Federal Customs Authority;
Federal
Decree no. (21) of 1997 on the Convention and the Protocol of the UAE Accession
to the World Trade Organization and the Document of the Round (Uruguay);
Federal
Decree no. (55) of 2002 on the Economic Convention between the GCC of the Arab
States of the Gulf;
Federal
Decree no. (7) of 2005 on the Unified Law of Combating Dumping and the
Countervailing and Preventive Measures for the Countries of the Cooperation
Council for the Arab States of the Gulf;
Federal
Decree no. (85) of 2007 on the Uniform Order (Law) of Customs for GCC Countries;
and
Based
on the proposal of the Minister of Economy, the approval of the Cabinet and the
Federal National Council and the ratification of the Federal Supreme Council,
Have
issued the following Law:
In
application of the provisions of the present Law, the following terms and
expressions shall have the meanings assigned thereto, unless the context
requires otherwise:
State:
United Arab Emirates
Ministry:
Ministry of Economy
Minister:
Minister of Economy
Department:
Department concerned with fighting harmful practices in international trade at
the Ministry.
Authority:
Federal Customs Authority.
Committee:
Advisory Committee for Fighting against Harmful Practices in International
Trade
Customs
Department: Competent Customs Department at the concerned Emirate.
Government
Entity: Any Federal or Local government agency concerned in the application of
the present Law and its Implementing Regulation.
GCC
States: Member States of the Cooperation Council for the Arab States of the
Gulf.
Concerned
Gulf Authorities: Office of the Technical Secretariat, the Standing Committee
for Harmful Practices in International Trade and GCC Industrial Cooperation
Committee.
Organisation:
World Trade Organisation.
Organisation’s
Agreements: Agreements arising from the Final Act Embodying the Results of the
Uruguay Round of Multilateral Trade Negotiations ratified by Federal Decree No.
(21) of 1997.
Harmful
Practices in International Trade: Practices involving dumping, ad hoc subsidies,
and increase of imports.
Dumping:
Exporting the product to the State at an export price that is lower than the
ordinary value for a similar product at the exporting country in the course of
ordinary trade.
Subsidy:
Monetary assistance or any form of support granted by the government of the
country of origin or any public agency therein to support income or prices,
according to the definition included in Article (16) of GATT Agreement 1994, in
the interest of the recipient of support.
Increase
of imports: Importation of a product in increasing quantities in absolute or
relative terms in relation to the production of the national or Gulf industry
and under conditions that may cause serious harm or threat to the national or
Gulf industry.
Measures:
Anti-dumping, countervailing and preventive
measures.
Anti-dumping
Measures: Procedures taken to face the cases
Countervailing
Measures: Procedures taken to face the cases
Preventive
Measures: Procedures taken to face the cases of increase of imports.
Temporary
Measures: Procedures taken temporarily during the investigation period and when
temporary positive results are reached.
Final
Measures: Procedures taken after the end of investigation or when final positive
results are reached.
Complaint:
Written request submitted according to the form prepared for that purpose.
National
Industry: The total number of the State’s producers of similar products or
whose total production constitutes a large proportion of the gross national
production of such products in the anti-dumping and anti-subsidy investigations.
National industry in the prevention investigations means the total number of the
country's producers of a product that is similar or directly competitive or
whose total production of similar products constitutes a large proportion of the
total national production of this product.
Gulf
Industry: The total number of the GCC States’ producers of similar
products or whose total production constitutes a large proportion of the gross
national production of such products in the anti-dumping and anti-subsidy
investigations. Gulf industry in the prevention investigations means the total
number of the GCC States’ producers of a product that is similar or
directly competitive or whose total production of similar products constitutes a
large proportion of the total Gulf production of this product.
Concerned
Parties: Foreign exporter or producer or the importer of the product
subject-matter of investigation or the producers whose industrial inputs include
the product subject-matter of investigation, the government or private entities
representing consumers or protecting their interests or the governments of the
exporting countries or any other local or foreign parties interested in the
product subject-matter of investigation.
Damage:
Damage in anti-dumping and anti-subsidy investigations means the occurrence of
material harm or the threat of such occurrence or physical disability of the
establishment of national or Gulf industry. Damage in prevention investigations
means the occurrence of serious harm or threat of its occurrence to the national
or Gulf industry.
Gross
Damage: A harm that causes a total and significant weakening that affects the
national or Gulf industry concerned.
Threat
of Gross Damage: Imminent severe damage resulting in significant weakening that
affects the national or Gulf industry concerned.
Regular
Value: The amount paid or the price payable for a similar product in the normal
course of trade when directed to consumption in the country of export.
Export
Price: The amount paid or the price to be paid for the product subject-matter of
investigation by the importer when sold from the exporting country.
Dumping
Margin: The difference between the normal value and the export price during the
period under investigation.
Subsidy
Amount: The amount that represents the interest accruing to the recipients
during the period under investigation.
National
Market: The State’s Market.
GCC
Market: GCC States’s Markets.
Similar
Products: Products that match or are identical to the product subject-matter of
investigation in all aspects or any other products whose specifications are
similar to the specifications or characteristics of the product subject-matter
of investigation in case of absence of such product.
Ad
hoc Subsidy: Subsidy that results in taking Countervailing Measures.
Supported
Imports: Imports of products subject-matter of investigation that received ad
hoc support.
Product
subject matter of Investigation: The product imported to the state as described
by the declaration of initiation of the investigation.
Unified
Law: Unified Law for Anti-Dumping and the Countervailing and Preventive Measures
for the Countries of the Cooperation Council for the Arab States of the
Gulf.
Article
2 – Enforcement of the Law
The
provisions of the present Law shall apply to the harmful practices in
international by other than GCC States, in accordance with the
Organisation’s Agreements.
Article
3 – Complaint and Investigation Procedures
1-
The national industry or its representative may file a complaint against harmful
practices in the international trade either directly to the Department or
through the governmental authority concerned in each Emirate that refers it to
the Department.
2-
Based on a decision by the Minister or his authorised representative and without
receiving a complaint from the national industry or its representative, the
Department may initiate an investigation against harmful practices in
international trade should there be sufficient evidence of a harmful practice in
international trade that causes harm to the national industry.
3-
The complaint against harmful practices in international trade that are caused
to the national industry shall be submitted, accepted, and studied, procedures
of initiation of investigation shall be taken, the investigation shall be
conducted and ended, and reviewal shall be made in addition to any proceedings
related thereto shall be done in accordance with the provisions of this Law and
the controls and conditions prescribed in the Implementing Regulation of the
present Law.
Article
4 – Investigation
1-
By a decision of the Minister or his delegate, an investigation committee shall
be formed of the Department’s technical staff for each complaint
separately. Such committee shall be entrusted with keeping all the documents
related to the investigation and carrying out all the investigation procedures
in accordance with the provisions of the present Law and its Implementing
Regulation.
2-
The period of investigation against harmful practices in international trade may
last for twelve months at most from the date of commencement of the
investigation. In the event that the investigation could not be completed during
said period, it may be extended for a further period by a decision of the
Minister based upon the recommendation of the Department, provided that the
whole period does not exceed 18 months at most.
Article
5- Cases of Imposition of Measures
Measures
may be taken in any of the following cases:
1-
If it is proved that the products subject-matter of investigation have been
received at exorbitant prices or that ad hoc subsidy has been given for them,
and have caused material damage to an existing national industry or threatened
of the occurrence of such damage or that they were intended to cause material
delay of establishment of a national industry and that there is a causation
relationship between them.
2-
If it is proved that the products subject-matter of investigation are being
delivered to the national market in increasing quantities either in absolute or
relative terms and under conditions that would cause serious harm to the
national industry which produces similar or directly competitive products or
threatens to inflict such harm and if that there is a causality relationship
between them.
Article
6 - Forms of Measures
The
measures shall be as follows:
1-
The imposition of anti-dumping fees and final countervailing fees, not exceeding
the dumping margin or the final subsidy amount.
2-
The imposition of charges or adoption of temporary guarantees to fight dumping
or ad hoc subsidies, not exceeding the dumping margin or the tentative subsidy
amount.
3-
The imposition of final preventive measures against the increase of imports in
the form of fees or quantitative restrictions.
4-
The imposition of temporary protective fees against the increase of imports for
a maximum period of 200 days.
Article
7 – Measures May not be Imposed Concurrently
The
imported product shall not be subject to an anti-dumping measure and a
countervailing measure dealing with the same case of dumping or export-oriented
subsidy.
Article
8 – Competent Parties in Terms of Implementation of the Law
1-
The Department shall have the competence to receive and study complaints and
undertakings and conduct investigations and reviews against harmful practices in
the international trade faced by the national industry.
2-
A committee called the Advisory Committee to Combat Harmful Practices in
International Trade shall be formed by a decision of the Minister. The Committee
shall be represented by a number of relevant federal and local authorities and
shall have competence to study the conclusions reached by the Department with
respect to the harmful practices in international trade submitted to it in
accordance with Article 4 of the present Law.
3-
The Minister or his delegate shall issue the decisions concerning the
implementation of the provisions of the present Law and its Implementing
Regulation based on the recommendations of the Advisory Committee.
4-
The Implementing Regulation of the present Law shall specify the operating
procedures of the Committee and the conditions and procedures relating to the
imposition of provisional and final measures and undertakings.
Article
9 - Notifications and Notices
1-
The Ministry shall provide all notifications required by the Organization's
agreements concerning the combat of dumping, subsidies, countervailing and
preventive measures to the Organization.
2-
Decisions and notifications concerning investigations of harmful practices in
international trade shall be published in accordance with the procedures
applicable in the Ministry.
Article
10 - Confidentiality of Information
1-
The employees of the Ministry and of any other governmental entity who, in the
scope of application of the provisions of this law and its Implementing
Regulation and the decisions issued pursuant thereto, had access to information
or data of confidential nature or that has been described by the concerned
parties as confidential, shall keep this information confidential and shall not
disclose it to any other party except with a written permission from the party
having declared such information or based on an order issued by a competent
judicial authority.
2-
The concerned or interested parties shall provide non-confidential summaries to
the Department, whose details shall allow for an understanding of the substance
of the information of confidential nature or of those presented as
confidential.
3-
The Implementing Regulation of the present Law shall specify the methods of
handling confidential information and the procedures of disclosure
thereof.
Article
11 - Customs Release
The
investigation procedures provided for in this Law and its Implementing
Regulation shall not preclude the customs release of imports of the product
under investigation.
Article
12 - Compilation of Data and Statistics
1-
In applying the provisions of this Law and its Implementing Regulation, the
Ministry may request the data, information and statistics necessary for the
investigations concerning the combat of dumping, ad hoc subsidies and increase
of imports from any governmental body in the State having the required
data.
2-
The government entity shall provide the Ministry with the data, information and
statistics required within a period not exceeding fifteen working days from the
date of receipt of the application.
3-
The Department shall use the data and statistics mentioned in paragraph (1) of
this Article to the extent required by the investigation procedures, and in such
a way as to preserve the confidentiality of the information.
Article
13 – Imposition and Collection of Fees
1-
The measures imposed in accordance with the provisions of this Law and its
Implementing Regulation shall apply to imports of the product subject-matter of
investigation imposed for the purpose of consumption within the State.
2-
The amounts and guarantees payable for the temporary and final measures imposed
on imports of the product subject-matter of investigation shall be collected in
accordance with the provisions of this Law and its Implementing Regulation and
based on a mechanism determined in coordination between the Ministry and the
Authority and the customs administrations.
3-
The proceeds of the imposition of the final measures on the imports of the
product subject-matter of investigation shall be deposited with the Treasury of
the State after the deduction of the service performance fees determined in
coordination between the Ministry, the Authority and the customs
administrations.
4-
The proceeds of the temporary measures shall be treated during the period of
their application as a deposit, in accordance with the following:
a-
If a decision is issued on the investigation establishing the existence of any
harmful practices in international trade and damage and a causation relationship
between them, they shall be treated as final measures.
b-
If a decision is issued on the investigation establishing that there are no
harmful practices in international trade or damage or any causation relationship
between them, any cash security, bank guarantee or fee that has been collected
for the product subject-matter of investigation shall be released.
5-
The Authority shall provide the Ministry with periodic statistics on the value
and quantity of imports of the products subject to the measures and the proceeds
of the fees resulting from the application of these measures.
Article
14- Registration and Follow-up
Should
there be sufficient indicators or when the import trend of a product threatens
to cause damage to the national industry, the import of the product concerned
shall be subjected to registration or follow-up procedure for a temporary period
in accordance with the procedures and controls on which a decision shall be
issued by the Cabinet based on the Minister’s proposal.
Article
15 - Gulf Industry
1-
Should there be any damage in the Gulf industry caused by the presence of
harmful practices in international trade, such damage shall be faced in
accordance with the procedural and substantive rules prescribed in the
Implementing Regulation of the present Law.
2-
The Ministry shall participate in the investigation of harmful practices in
international trade that cause damage to the Gulf industry, conducted by the
concerned Gulf authorities according to the Unified Law.
3-
The Ministry shall coordinate with the governmental entities in the State to
implement all decisions issued by the Gulf authorities concerned with
investigating harmful practices in international trade that cause harm in the
Gulf industry.
Without
prejudice to any more severe penalty provided for in any other law, whoever
violates the provisions of Article (10) of this Law shall be sentenced to
imprisonment and to a fine of no less than AED (250,000 or either one of those
two penalties.
1-
The Federal Courts of Appeal shall have jurisdiction to hear appeals against
final decisions issued by the Minister or his delegate in implementation of the
provisions of the present Law and its Implementing Regulation.
2-
A lawsuit for annulment of the administrative decisions referred to in Clause
(1) of this Article shall not be heard after 3 (3) months from the date of
publication of the contested administrative decision, or of the notification of
said decision to the concerned party, or the establishment that he had certain
knowledge thereof.
3-
The validity of said period shall be interrupted when a grievance is filed to
the Minister. A decision shall be issued on such grievance within thirty days
from the date of its submission. If a rejection decision is issued, it shall be
reasoned and should thirty days lapse after the submission of the grievance
without a response from the Minister, it shall be deemed as rejected. The
time-limit for filing a lawsuit shall be counted from the date of explicit or
implicit rejection of the grievance, as the case may be.
Article
18 – Law Enforcement Authority
The
Ministry's employees who are selected by a decision of the Minister of Justice,
in agreement with the Minister, shall be granted law enforcement authority to
prove any violation of the provisions of this Law and the decisions issued in
implementation thereof, within the scope of competence of each of them.
Upon
the proposal of the Minister of Finance, the Cabinet shall issue a decision
specifying the fees required for the implementation of the provisions of the
present Law.
Article
20 - Final Provisions
Upon
the proposal of the Minister, the Cabinet shall issue the Implementing
Regulation of the present Law within (90) days from the date of its
issuance.
Any
provision that is contrary to or inconsistent with the provisions hereof shall
be abrogated.
The
present Law shall be published in the Official Gazette and shall come into force
as of the day following the date of its publication.
Issued
at the Presidential Palace in Abu Dhabi
On 16/04/2017
Corresponding to 19
Rajab 1438 H
Khalifa bin
Zayed Al Nahyan
President of the
United Arab Emirates
The present Federal Law shall be published
in the Official Gazette, issue no. 614, p. 13.