UNITED ARAB EMIRATES
Federal Law No. (14) Of 1988
On amendment of some provisions of  Federal Law No. (18) Of 1981
Concerning the Organization of Commercial Agencies

Commercial Agent Guide

We, Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates:
Pursuant to the provisions of the Provisional Constitution, the Federal Law No. 1 of 1972 concerning the authorities of ministries and the powers of ministers and, the Laws amending thereof, and to Federal Law No. 18 of 1981 concerning the organization of Commercial Agencies;
And on presentation by the Minister of Economy and Commerce;
And approval of the Council of Ministers;
And on the assent of the Federal Supreme Council;
Hereby enact the following Law as here under:

Provisions of Articles (1), (2), (6), (8), (10), (12), (14), (16), (22), (23), (27), (28), (29) and (30) of Federal Law No. (18) of 1981 referred to hereinbefore shall be replaced by the following provisions :

ARTICLE 28

In implementation of the provisions of this Law, the following terms and wordings shall bear the meanings defined against them:
The State : : The State of United Arab Emirates
The Ministry : : Ministry of Economy & Commerce
The Concerned Authority: :The local, concerned authority in the concerned Emirate.
The Committee : :The Committee of Commercial Agencies constituted according to the provision of Article 27 of the Law hereinafter.
The Commercial Agency : : Signifies the representation of a Principal by an Agent on the distribution, sale, offer or presentation of commodity or Service within the State against commission or profit.
The Principal : Signifies the producer or manufacturer within or without the territories of the State, the exporter or exclusive distributor accredited by the producer providing that the latter shall not, himself, exercise the activity of marketing.
The Agent : Is that ordinary person holding the U.A.E. nationality or, that legal entity totally owned by national ordinary persons to whom the power of disposal in the Agency's subject matter shall be provided according to the Agency Agreement providing that he shall not exceed his capacities.

The practice of Commercial Agency activities within the State shall be confined to national individuals or firms owned in to by national ordinary persons.

A Commercial Agency Agreement shall be considered concluded for the mutual interest of both signatories thereto. It is within jurisdiction of the U.A.E. Courts of Law to hear any dispute arising, between Principal and Agent, from the execution of the Agreement. Any agreement in contravention thereto shall not be entertained.

Application for registration in the Commercial Agent Register shall be submitted to the Ministry on the form prepared for the purpose and shall include the names, nationalities and addresses of the agent and the principal, commodities and services subject matter of the Commercial Agency, territory of the agent's activity and the dates of effect and expire.

In case a Commercial agent happens to be a commercial firm, the said application shall, in addition to those provided for in the previous clause, include the firm's name, type, capital, headquarters address and branches within the State.

Supporting documents shall be attached to the application, particularly the following ones:
The agent's Trade License and the Commercial Registration Certificate issued by the concerned departments in the respective Emirates together with a photocopy of each.
The Agency Agreement duly authenticated and attested by concerned authorities together with a photocopy thereof.
Originals shall be returned back to the concerned applicant once being viewed and matched with photocopies.

In the event the conditions for registration herein provided for are not fulfilled, the Ministry may reject the application for registration submitted providing that the basis of rejection shall be explained and notification to that effect be served to the applicant concerned with a copy of the resolution, within a month from the date of submitting the application with the duly fulfilled documents, either by registered mail or by hand delivery. Declining to

reply within the said month shall be considered a resolution of rejection which entitles the applicant to Challenge such a resolution before the concerned Civil Court within 60 days from the date of notification or, upon the elapse of one month from the date of application without a reply being received and with consideration to the provision of Article (16) hereinafter.
 

A commercial agent, his attorney or heirs in case of death shall in the event of abrogation or expire of agency agreement submit an application to the Ministry attached with supporting documents for cancellation of registration within a maximum period of 60 days from the date of abrogation death or expire.
In the event of having evidence justifying the cancellation of the agency the Ministry shall effect cancellation after summoning those concerned by registered mail within a maximum period of sixty days to hear objections to the justification of cancellation. In case of failure to attend the ministry shall likewise re-summon them to attend within a further maximum period of sixty days. If they repeatedly fail to attend the Ministry may unilaterally and at its discretion cancel the registration after taking the opinion of the concerned authority.

He who exercises commercial agencies activities contrary to the provisions of this Law shall be fined an amount of not less than five thousand Dirhams. Clerical Department of the Court of jurisdiction shall notify the Ministry, the concerned authority, the Federation of the Chambers of Commerce & Industry and the Chambers of Commerce & Industry in whose purview the agent has embarked on practicing business, of the judgment immediately it is passed.

None shall be allowed to import in the State any commodities, products, manufactured goods, materials or any other merchandise being subject matter of a commercial agency registered at the Ministry in the name of others with the intention of dealing in them without prior consent of the agent. Customs Department shall not clear in such imports imported through someone other than the agent unless upon approval by the Ministry or the agent. Customs Department and the concerned authorities in the Emirates, each within the limits of its powers shall, upon request of the Ministry, have to detain those imports and store them in the warehouses of the port of the importer until a judgment on the dispute is reached.

A (Commercial Agencies Committee) shall be formed of: Undersecretary of the Ministry of Economy & Commerce (Chairman)
Representative of the Municipality in each competent Emirate nominated by the Chairman of the Municipality (Member).
Representative of the Chamber of Commerce & Industry of each respective Emirate nominated by the Chamber's President (Member).
Representative of the General Secretariat of the Municipalities nominated by its Board (Member).
Representative of the Federation of Chambers of Commerce & Industry nominated by its Board (Member).

A decree by the Minister of Economy & Commerce shall he issued on the formation of the committee which shall have a secretary nominated by the Minister but having no right of voting during its discussions.

The Committee shall be competent to adjudicate any dispute emanating from a commercial agency, a task which shall have to be started within sixty days from the date of application submitted to it. In the course of fulfilling its tasks, the Committee may avail itself of the assistance of those whom it deems appropriate through a written assignment. Divulging particulars they happen to know on account of their commission shall be strictly forbidden.

The Ministry's and the concerned authority's officials commissioned to control the implementation of this Law shall have the right to look into the documents and papers appertaining to the agency appointment, to register in the Register Book for the purpose of recording whatever contravention to the provisions hereof and the executive rules and regulations thereof have occurred and shall subsequently refer the matter to the competent authority of investigation and legal prosecution. The commercial agent shall, in turn, present to the said officials the statements, information and documents required to fulfill their task. Police Departments in the Emirates shall have to enable the said officials of doing their job in order to control and effect whatever contravention to the provisions hereof and the executive rules and regulations thereof have occurred.

A decree shall be issued by the Minister of Economy & Commerce appointing the names of officers referred to in the previous Article and defining the procedures to be followed in proving what contravention to the provisions of this Law may occur. Such officers shall strictly be forbidden from divulging any particulars they happen to know ex-officio in the event these particulars be of confidential nature. Offenders shall be subject to disciplinary measures without prejudice to Civil or Criminal Liability.