2023-09-11 18:18:59
The Ministry of Economic Affairs will impose heavy fines for violating the revised commercial agency law in the UAE. The authorities warn that a fine ranging from one lakh to four lakh dirhams will be imposed. If the violation of the law is found, the decision is to seize the goods. An international business enterprise may not sell products to entities or individuals other than contracted agents.
Violation of the law will result in severe action including heavy fines. Apart from this, there is also a warning that the goods sent will be seized. An important change has been made in the earlier law. Previously, such matters were left for the consideration of the civil court. But in the new law there is a section to impose fine in two ways. Violation will be given a warning first. If repeated, a fine of Rs 1 lakh to Rs 2 lakh will be imposed and the goods seized. If there is a repeat of the mistake, the fine amount will be increased up to four lakhs.
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The UAE is sending a clear message to international organizations that it will treat violations of the agreement as a crime. The new law states that companies with public shareholders having at least 51 percent ownership by UAE nationals can engage in commercial agency activities.
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