UAE: First Federal Law Specifically Addressing Product Safety Issued

The United Arab Emirates (“UAE”) has issued its first Federal Law that specifically addresses product safety. The new law primarily aims to ensure the safety of products supplied within the country, facilitate trade to the UAE and develop a framework for product introduction to the country. The law is anticipated to come into force in July 2019 and the Cabinet is yet to issue Executive Regulations outlining the particulars of the applicable procedures. The Emirates Authority for Standardization and Metrology (“ESMA”), a federal UAE authority, is to supervise implementation of the law in coordination with the relevant local authorities.

WHAT PRODUCTS ARE ADDRESSED?
The new law shall apply to products that are manufactured within or imported to the UAE, including free zones. Certain products are excluded such as but not limited to human and veterinary medicines, artefacts and different types of second-hand products.

OBLIGATIONS:
The definition of suppliers may generally and widely be defined to include local manufacturers, local agents and/or distributors of foreign manufacturers or principals, importers to the UAE and other individuals or corporates whose activities relate to or affect product safety. The obligations of the suppliers include but are not limited to ensuring that products comply with the applicable required standards, the products remain safe during use and take the appropriate measures in case a product becomes unsafe.

PENALTIES OF BREACH:
Breaching of the respective Product Safety Law may lead to fines of up to AED 3 million and potential imprisonment. Additionally, per applicability, local courts may also order the seizure or destruction of products, closure of the business for up to six (6) months and revocation of the supplier's trading license.

HOW CAN TLG HELP?
Our Corporate & Commercial Division would be pleased to - inter alia other services - assist and advise on confirming the applicability and implacability of the new law on your business.

Should you have any questions and/or queries, please feel free to contact our Team via email at: corporate@tlg.ae.

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