Federal Law No. (3) of 2020
Concerning the Regulation of the Strategic Stock of Food Commodities in the State
We, Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates,
Having reviewed the Constitution,
- And Federal Law No. (1) of 1972 concerning the Competencies of Ministries and the Powers of Ministers, and its amendments,
- And Federal Law No. (5) of 1975 concerning the Commercial Register,
- And Federal Law No. (18) of 1981 concerning the Regulation of Commercial Agencies, and its amendments,
- And Federal Law No. (5) of 1985 promulgating the Civil Transactions Law, and its amendments,
- And Federal Law No. (3) of 1987 promulgating the Penal Code, and its amendments,
- And Federal Law No. (35) of 1992 promulgating the Criminal Procedures Law, and its amendments,
- And Federal Law No. (18) of 1993 promulgating the Commercial Transactions Law,
- And Federal Law No. (28) of 2001 on the Establishment of the Emirates Authority for Standardization and Metrology, and its amendments,
- And Federal Law No. (17) of 2004 on Combating Commercial Concealment,
- And Federal Law No. (17) of 2006 on the Establishment of the Supreme Council for National Security,
- And Federal Law No. (24) of 2006 on Consumer Protection, and its amendments,
- And Federal Decree-Law No. (2) of 2011 on the Establishment of the National Emergency Crisis and Disasters Management Authority, and its amendments,
- And Federal Law No. (4) of 2012 on the Regulation of Competition,
- And Federal Law No. (2) of 2015 on Commercial Companies, and its amendments,
- And Federal Law No. (10) of 2015 on Food Safety,
- And Federal Law No. (10) of 2018 on Product Safety,
- And Federal Law No. (19) of 2016 on Combating Commercial Fraud,
And based on the proposal of the Minister of Economy, the approval of the Cabinet and the Federal National Council, and the ratification of the Federal Supreme Council,
We have issued the following Law:
Article (1)
Definitions
In the application of the provisions of this Law, the following words and phrases shall have the meanings assigned to each of them unless the context otherwise requires:
The State: The United Arab Emirates.
The Ministry: The Ministry of Economy.
The Minister: The Minister of Economy.
The Competent Authority: The federal or local government entity legally authorized to regulate, monitor, or supervise the strategic stock of food commodities.
The Authority: The National Emergency Crisis and Disasters Management Authority.
The Warehouse: The place designated by the Registered Merchant for depositing and storing food commodities as a strategic stock.
The Food Commodities: All food commodities specified by the Ministry.
The Strategic Stock of Food Commodities: All food commodities whose names and quantities are specified to be stored in accordance with the provisions of this Law.
The Safety Stock: The specified percentage below which the strategic stock of food commodities must not fall in accordance with the provisions of this Law.
The Commodity Stock Management: The set of activities carried out by the Supplier and the Registered Merchant related to the provision, preservation, and safety of the stored commodity items, in accordance with the decision issued by the Minister.
The Supplier: The producer or importer who provides food commodities to distributors and merchants, whether from inside or outside the State.
The Registered Merchant: Any person who engages in a commercial activity related to food commodities and is licensed in the State for the purpose of applying this Law.
The Register: A register for the registration and classification of suppliers and merchants.
Article (2)
Scope of Application
The provisions of this Law shall apply to the Supplier and the Registered Merchant.
Article (3)
Competencies of the Ministry
For the purposes of implementing the provisions of this Law, the Ministry shall assume the following competencies:
- Proposing policies, plans, and programs related to the strategic stock of food commodities in coordination with the Competent Authority and presenting them to the Cabinet for approval.
- Coordinating with the joint economic committees of the supplying countries on programs related to the strategic stock of food commodities.
- Developing plans and programs for the size and quantity of the safety stock and matters related to increasing the capacity of the strategic stock of food commodities in case of increased demand for food commodities at the State level.
- Preparing reports, studies, statistics, and economic assessments regarding food commodities, estimating consumption volume, and identifying surplus and deficit.
- Preparing databases on the production and availability of food commodities in the State and countries of origin and monitoring them with suppliers.
- Coordinating and implementing policies for securing, sustaining, and ensuring the safety of the strategic stock of food commodities, in coordination with the Authority and the Competent Authority, to achieve a secure strategic stock of food commodities.
- Conducting periodic reviews with the Competent Authority to verify the existing balance of food commodities with the Registered Merchant.
- Supervising the preparation of databases and electronic linkage regarding warehouses, the strategic stock of food commodities, and the requirements for storing food commodities.
- Monitoring the compliance of Suppliers and Registered Merchants with the regulations and instructions related to the implementation of the provisions of this Law.
- Determining and updating a list of the names of food commodities.
- Determining the size of the strategic stock of food commodities and the percentage of the safety stock.
- Reviewing the reports of the Competent Authority or any relevant entity and taking necessary action thereon.
- Submitting recommendations to the Minister regarding the granting of incentives and facilities to Registered Merchants.
- Submitting periodic reports to the Cabinet regarding the strategic stock of food commodities in the State.
The Minister may form one or more sub-committees to implement the competencies referred to in this Article.
Article (4)
The Register
The Ministry shall, after coordinating with the Competent Authority, establish a register for the registration and classification of suppliers and merchants.
The conditions and procedures for registration shall be determined by a decision from the Minister.
Article (5)
Obligations of the Supplier and Registered Merchant
The Supplier and the Registered Merchant shall be committed to the following:
- Maintaining the safety stock in accordance with the provisions of this Law.
- Supplying the strategic stock of food commodities upon request.
- Establishing electronic linkage with the Competent Authority and the Authority to ensure continuous monitoring of the quantities, types, and status of the strategic stock of food commodities.
- Implementing the decisions issued by the Competent Authority.
- Distributing the strategic commodity stock in the event of emergencies, crises, or disasters according to the distribution plans prepared by the Authority in coordination with the Competent Authority.
Article (6)
Warehouses and Storage Conditions
The Registered Merchant shall be committed to managing the strategic stock of food commodities and the warehouse, in accordance with the following:
- Determining the location, area, and size of the warehouse designated for the strategic stock of food commodities, provided that it is within the State.
- Notifying the Competent Authority of the warehouse location.
- Preserving and managing the strategic stock of food commodities in accordance with the standards and specifications approved in the State.
Article (7)
Incentives and Facilities
Incentives and facilities may be granted to the Supplier and the Registered Merchant in accordance with the conditions and controls issued by a decision of the Cabinet, based on the proposal of the Minister, and after coordination with the Competent Authority.
Article (8)
Penalties
The application of the penalties stipulated in this Law shall not prejudice any more severe penalty provided for in any other law.
Article (9)
- Anyone who violates the provision of clauses (1), (2, 4) of Article (5) of this Law shall be punished by a fine of not less than (500,000) five hundred thousand dirhams and not exceeding (2,000,000) two million dirhams.
- Anyone who violates the provisions of clause (3) of Article (5) and Article (6) of this Law shall be punished by a fine of not less than (100,000) one hundred thousand dirhams and not exceeding (1,000,000) one million dirhams.
- Anyone who violates the provision of clause (5) of Article (5) of this Law shall be punished by imprisonment and a fine of not less than (1,000,000) one million dirhams and not exceeding (5,000,000) five million dirhams.
- The penalties prescribed for the crimes stipulated in this Law shall be doubled in the case of recidivism.
Article (10)
Judicial Officers
The employees who are designated by a decision from the Minister of Justice in agreement with the Minister or the head of the Competent Authority shall have the capacity of judicial officers in proving violations of the provisions of this Law and the regulations and decisions issued in its implementation within their jurisdiction.
Article (11)
Abrogation of Conflicting Provisions
Any provision or text that contradicts or conflicts with the provisions of this Law shall be repealed.
Article (12)
Executive Decisions
The Minister shall issue the necessary decisions to implement the provisions of this Law.
Article (13)
Publication and Enforcement of the Law
This Law shall be published in the Official Gazette and shall come into force from the day following the date of its publication.
Khalifa bin Zayed Al Nahyan
President of the United Arab Emirates
Issued by us at the Presidential Palace in Abu Dhabi:
On: 6 / Sha'ban / 1441 H
Corresponding to: 30 / March / 2020 AD