IMPORT AND EXPORT RULES IN WTO & UAE TRADE POLICY : 1 IMPORT AND EXPORT RULES IN WTO & UAE TRADE POLICY Abu Dhabi Chamber of Commerce and Industry
24 April 2005 Dr. El Hassan JOUAOUINE
Chief Technical Advisor on WTO Affairs
UNDP-UNOPS / UAE Ministry of Economy & Planning
INTRODUCTION : 2 INTRODUCTION Trade Policy Formulation and Implementation
Trade Policy Objectives
Trade Agreements
(I) Regional agreements
(II) Bilateral agreements
(III) WTO
MEASURES DIRECTLY AFFECTING IMPORTS : 3 MEASURES DIRECTLY AFFECTING IMPORTS Registration and Documentation
Import Procedures & Customs Valuation
Rules of origin
Exchange controls
Tariffs: MFN Bound Tariffs; Applied Tariff Levels and Structure, Tariff Revenue and Percentage in Public Revenue, Tariff Concessions
Import Prohibition, Restrictions, and Licensing
Contingency trade remedies
Government Procurement
TRIM’s
MEASURES DIRECTLY AFFECTING IMPORTS : 4 MEASURES DIRECTLY AFFECTING IMPORTS Registration & Documentation
WTO requirement is facilitating and not unnecessary impeding the Trade
UAE: Licensing and registration procedures involving concerned authorities (Chambers of Commerce & Industry; Municipalities; Federal Ministry of Economy & Planning)
Trade licensing Law No 5/ 88; Federal Company Law No 8/ 84 & Federal Agency Law No 18/ 81 Import Procedures, Customs Valuation & Rules of origin
GCC Customs Union (1/1/2003): Common Customs Law and regulations
Implementation of WTO Agreement on Customs Valuation (1/1/2004)
Rules of Origin: Preferential (GCC & GARTA at 40% of value added); non-preferential (Similar to GCC rules)
MEASURES DIRECTLY AFFECTING IMPORTS : 5 MEASURES DIRECTLY AFFECTING IMPORTS WTO / MFN Bound Tariffs
All Tariffs: from 5% to 15%;
10 & 15 years to reduce some bound tariffs;
Final rates: between 0% & 12%;
Some Agr. Products: 200% Tariff Concessions
Inputs (Equipment, raw materials, spare part, machinery…etc.): Duty -free access
Also Duty-free access for Import from GCC with observance of Rule of Origin
Imports in accordance with some Bilateral preferential agreements (Including
MEASURES DIRECTLY AFFECTING IMPORTS- C.E.T by Sectors, 2004 - : 6 MEASURES DIRECTLY AFFECTING IMPORTS- C.E.T by Sectors, 2004 - Source: UAE Government Data (2004)
MEASURES DIRECTLY AFFECTING IMPORTS-Tariff Revenue, 1999 & 2004 (in Millions AED)- : 7 MEASURES DIRECTLY AFFECTING IMPORTS-Tariff Revenue, 1999 & 2004 (in Millions AED)- Source: IMF Country Report No 04/174, 2004
* All revenues associated with trade and port operations; more than customs duties
MEASURES DIRECTLY AFFECTING IMPORTS : 8 MEASURES DIRECTLY AFFECTING IMPORTS Exchange controls: No restrictions expect for “Terrorist Financing”
Import Prohibition, Restrictions, and Licensing: Only authorizations for products with health & security implications; and prohibition of products for environment, health, security, religious, and moral considerations.
Contingency Trade remedies: GCC Law of Antidumping, Countervailing and Safeguards Measures
TRIM’s: None
MEASURES DIRECTLY AFFECTING IMPORTS- Government Procurement - : 9 MEASURES DIRECTLY AFFECTING IMPORTS- Government Procurement - Ministry of Finance & Industry in charge of procurements for Federal Ministries; excluding Purchases of defense, security and local governments
Prior Control and Approval of the Ministry for contracts below threshold of AED 500 000; Prior control of the SAI for contracts above this threshold; Ability for Ministries to conclude contracts up to AED 1 Million.
“General Tender” as main Procedure; “Limited Tender”, “Practice”, and “Direct Order” as exceptions; Procurement Notice; Bids bond; Selection of bids…etc
Ongoing Reform: to establish an on-line system for government procurement and to amending the current procedures to comply with up coming commitments (FTA’s)
MEASURES DIRECTLY AFFECTING EXPORTS : 10 MEASURES DIRECTLY AFFECTING EXPORTS Export procedures (Registration & documentation)
Export taxes, charges and levies
Export prohibition, restriction, surveillance and licensing and Voluntary Export Restraints
Export Subsidies
Export Processing Zones (Free Zones)
Export Finance, Insurance, and Guarantees
Export Promotion and Marketing Assistance
MEASURES DIRECTLY AFFECTING EXPORTS : 11 MEASURES DIRECTLY AFFECTING EXPORTS Export Procedures similar to Import Procedures
Export Taxes, Charges and Levies: None
Export Prohibition, Restrictions, Surveillance and Voluntary Export Restraints : Only on Oil & Gas export due to UAE’s membership of OPEC
MEASURES DIRECTLY AFFECTING EXPORTS : 12 MEASURES DIRECTLY AFFECTING EXPORTS Export Performance Requirements: None
Foreign Exchange: No restrictions
Export Subsidies: None
MEASURES DIRECTLY AFFECTING EXPORTS : 13 MEASURES DIRECTLY AFFECTING EXPORTS Export Finance, Insurance, and Guarantees: No Governmental Programme
Export Promotion & Marketing Assistance : Responsibility of Local entities & Creation of a Federal Body under consideration
MEASURES DIRECTLY AFFECTING EXPORTS - Free Zones - : 14 MEASURES DIRECTLY AFFECTING EXPORTS - Free Zones - Free-Zone Formula as an effective magnet for inward investment (Jobs, Expertise, Boost to National economy)
Real support to materialize the concept of “UAE as Regional Hub”
Basic Recipe: 100% foreign ownership; no income taxes, freedom to repatriates capitals and profit, no import duties or exchange restrictions.
MEASURES AFFECTING PRODUCTION AND TRADE : 15 MEASURES AFFECTING PRODUCTION AND TRADE Incentive Schemes
Standards and other Related Technical Requirements
Competition policy and Price Controls
Intellectual Property Rights (IPR’s)
Copyright
Patents and Designs
Trade Marks
Medicines and Pharmaceutical Patent
Privatization
TRADE POLICY REVIEW MECHANISM (TPRM) : 16 TRADE POLICY REVIEW MECHANISM (TPRM) 1 January 1995: The TPRM as an integral part of the WTO.
The Purpose: collective appreciation and evaluation of Members’ policies and practices; their impact on the MTS. It is not a basis for enforcement of specific obligations or to impose new commitments.
Benefits for the MTS: Increasing transparency; identification of areas of WTO obligations necessitating more attention; focus on the WTO main players and on the most significant trends.
Benefits for the Members: stimulating internal evaluation of trade policies; strengthening the hands of domestic agencies promoting liberalization, supporting trade reforms..
TRADE POLICY REVIEW MECHANISM : 17 TRADE POLICY REVIEW MECHANISM The frequency of review for individual Members: 2-year cycle for EC, US, Japan and Canada; 4-year cycle: Hong Kong; China; Korea; Singapore; Switzerland; Mexico; Australia; Malaysia; Thailand; Norway; Indonesia; Brazil; Turkey; South Africa; Israel; India and United Arab Emirates (March 2006); 6-year cycle: all other WTO Members (most developing and transition economies) and more than 6 years for LDC’s.
The TPRM review process (6 months): Collection of information; Visit to the capital; Preparation of documents; Elaboration of the Secretariat report and the Government's policy statement.
: 18 Thank you for your attention Dr. El Hassan JOUAOUINE http:// www.uaewto.org