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POLICY

POLICY

In June 2018, The UAE government issued the Executive Regulation of the Federal Law No.1 of 2017 for Anti-Dumping and Countervailing And Safeguards Measures. The issuance of this Regulation has eventually empowered  the UAE Ministry of Economy to investigate trade remedy petitions filed by the UAE industries autonomous from the centralized GCC authority; the Bureau of the Technical Secretariat for Anti-Injurious Practices in International Trade; which investigates trade remedy cases filed by or on behalf of (the GCC industries) under the current  Unified Anti-Dumping and Countervailing and Safeguards Measures Law since 2011.

 

In other words, the UAE industries can now file trade remedy petitions directly to the Ministry of Economy, and if the findings of investigations are positive; i.e. determining that a certain imported product has caused injury or threat thereof to the UAE industry producing like products, by either being imported in increased quantities, or sold at dumped or subsidized prices in the UAE market;  the ( UAE government) may accordingly impose tariff measures against such imports in favor of the concerned or affected industry producing like products. 

 

Type of measures will be set according to the kind of case filed by the relevant UAE industry, whether safeguards, or anti-dumping, or Anti-Subsidies, all of which lead to increase tariff rates against subject imported products for specific periods of times. ( Up to five 5 years for Antidumping and Anti-Subsidies and four years for Safeguards).

 

The competent authority is the Anti-Dumping Administration; a department within the Ministry of Economy. The AD provides its conclusions to the “Consultative Committee” along with its recommended measures, and the Committee, in turn, recommends to the Minister the appropriate measure against subject imports.

 

Although the new law has accorded the UAE with the autonomy to investigate trade remedy cases; it has nevertheless restored the UAE industries to protection under the GCC Unified Law (Article 15 of the Law and Articles 87-94 of the Executive Regulation).

 

Similar to the Unified Law, the new Law states that it will apply to all products imported into the UAE market from all sources except products imported from the GCC countries. Therefore the law could not be enforced against imports originating from other GCC countries.

 

The law typically furnishes the substantive and procedural rules to regulate the investigation process into Anti-Dumping, Anti-Subsidies and Safeguards cases and the imposition of measures against imports which the authority determines to be “Faulty”, by being either increased in such increased quantities into the market, or sold in the market at dumped prices, or sold in the market at subsidized prices, as the case may be.

 

According to the new Law, The ADA must conclude any investigation and issue its final determinations on all types of petitions within twelve months from filing date of petitions subject to extension in exceptional circumstances to an additional six months.

 

The new Law does not permit dual application of anti-dumping and anti-subsidies measures against one product, which means that industries cannot apply two petitions on the same product at the same time. (Article 7)

 

On the procedural side, the law creates the Consultative Committee to examine the recommendations of the Anti-Dumping administration. The Committee recommends the appropriate measures to the Minister. Accordingly, an approach which is similar to the method followed in the Egyptian Law. ( Article 8).

 

As regards a breach of confidentiality during investigation process by any person, the law sets a penalty of 250,000 DHS on violations of the confidentiality clause, while in the Unified law the sentence is set at 500,000 Saudi Riyal. However, the new law has further introduced imprisonment sanction on violations in addition to the financial penalty.

 

Concerning the official source of data to be relied upon in any given investigation, the law reverts to the Federal Customs Commission. (Article 13 (5)).

 

Article 14 of the law accords the Council of Ministers with the power of temporarily subjecting any imported product which increases into the UAE in such quantities that threaten the domestic industry to “registration and follow-up” procedures.

 

As regard appeals, interested parties may appeal the final determinations to the Minister of Economy within three months of the issuance date. .Also, interested parties may appeal final decisions to the federal appellate court. (Article 17).

 

I do expect to see Trade remedies petitions generating soon, especially with the Current deteriorating economic situation which has affected all regional markets in the recent past.