Author - U.S. Department of Commerce |
Source:
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Agents and Distributors: Many companies establish representative offices in Dubai since it is the country's shipping hub and an important international port. However, because the government is the end-user for many imported products, many companies establish a second office in Abu Dhabi.
Foreign companies are required to distribute their products through commercial agents that are either UAE nationals or wholly-owned local companies. A foreign principal can select an agent to handle the entire country, or appoint an agent to each Emirate or group of Emirates. However, agents must be trade-licensed to operate in specific Emirates.
Agency agreements must be registered with the UAE Chamber of Commerce and the Ministry of Economy and Trade, as well as the Chamber of Commerce of the Emirate where business is conducted. Agency agreements may be terminated by mutual agreement. A foreign principal may terminate an agreement without such mutual consent only if the government committee charged with such issues agrees with the principal that the termination is justified. If an agreement is terminated and the committee does not agree with the principal's reason, the agent may be entitled to damages. In addition, foreign companies cannot register with new trading companies (even after the expiration date of the original contract) without mutual agreement between the original agent and the principal, unless the government committee approves the termination of the original agency agreement. Commissions paid to agents vary, though commissions should be clearly set forth in the agreement.
Import Restrictions: The UAE adheres to the general Arab boycott rules which ban the import of any products originating in South Africa or Israel. In addition, special licenses are required to import alcoholic beverages, munitions, and certain pharmaceutical products.
Import Duties: Individual Emirates set the individual import duties for their territories. Generally, they average four percent, but some goods, such as alcoholic beverages and tobacco products, may be taxed up to 30 percent. These duties are levied on the value of the goods as invoiced by the supplier or manufacturer.
Documentation: Certificates of Origin are required for all products entering the UAE. In addition, a commercial invoice, steamship certificate, and insurance certificate are needed. Sanitary, phytosanitary, and quality certificates are also required for certain goods. A bill of lading is not required. At least one copy of the shipping documents must be included with the shipment.
Commercial documents must be certified by a chamber of commerce and then legalized by a consular official in the UAE Embassy in Washington. (The chamber of commerce usually retains one copy.)
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Thank you. Arab American Chamber of Commerce. |