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Law No. (7) of 2016 On Commercial Control & Protection On Economic Facilities

Law
Law No. (7) of 2016 On Commercial Control & Protection On Economic Facilities We, Saud Bin Saqr Bin Mohamed Al Qasimi Ruler of Ras Al Khaimah After perusal of the Constitution of United Arab Emirates; And Federal Law No. 4 of 1979 on Suppressing Cheating and Fraudulence in Commercial Transactions; And Federal Law No. 3 of 1987 on Promulgating Penal Code; And Federal Law No. 35 of 1992 on Criminal Procedures Law; And Federal Law No. 17 of 2002 on Regulating & Protecting Industrial Property of Patents & Industrial Drawings & Models; And Federal Law No. 1 of 2006 on Electronic Transactions & Commerce; And Federal Law No. 24 of 2006 on Consumer Protection; And Federal Law No. 4 of 2012 on Regulating Competition; And Federal Law No. 2 of 2015 on Business Companies; And Law No. 1 of 2007 on Controlling Commerce Facilities in Emirate of Ras Al Khaimah; And Law No. 11 of 2008 on Controlling Advertisements; And Law No. 7 of 2012 on Establishing Executive Council in Emirate of Ras Al Khaimah; And Law No. 4 of 2016 on Restructuring & Organizing Department of Economic Development; And Law No. 5 of 2016 on Promotional Campaigns & Special Offers for Commercial Advertising Purposes; And Law No. 6 of 2016 on Sale at Discounted Prices (Discounts) & Clearances; And based on what is required by public interest; promulgated the following Law: Article 1 Definitions Words and phrases stated in this law shall have the meanings indicated against each of them, unless context requires otherwise: State: United Arab Emirates. Emirate: Emirate of Ras Al Khaimah. Ruler: His Highness Ruler of the Emirate. Department: Department of Economic Development in Emirate of Ras Al Khaimah. President: President of Economic Development Department. Director-General: Director General of Economic Development Department. Competent Administration: Commercial Control & Protection Administration in Department of Economic Development. Economic Activity: Any commercial, industrial, occupational, professional, agricultural or service activity or any other activity aims at achieving profit and permitted to be carried on under legislations in force. Controller: Department’s employees holding Controller Card and having capacity of judicial police under promulgated laws and regulations granting them this capacity. Investor: Service provider, supplier, performer or the trader. Consumer: Recipient of commodity or service from the commercial facility. Competent Committee: A committee considers customers complains and grievances in Department of Economic Development. Economic Facility: The facility licensed by the Department to carry on commercial, industrial, occupational, professional, agricultural or service activity or any other activity aims at achieving profit and permitted to be carried on under applied legislations in the State or Emirate. Article 2 Law Objectives 1- Provide stimulating environment for economic facilities in order to enhance effectiveness, competitiveness, consumer interest and achieve sustainable development in the Emirate. 2- Enhance investor and consumer rights and ensure commitment to fair trade practices in the Emirate. 3- Provide suitable atmosphere for establishing commercial projects. 4- Limit negative effects in economic practices in the Emirate and ensure necessity of adherence to conformity of commodities and provided services with legal requirements and conditions. 5- Ensure necessity of commitment of natural persons and economic facilities to provisions of all laws in force in the State or Emirate upon practicing any economic activity. Article 3 Law Enforcement The provisions of this law shall apply to all facilities that fall within competence of the Department according to the laws in force in the State or Emirate in respect of economic activities thereof. Article 4 Administration Competences The two sections of Commercial Control & Protection in the competent administration and in coordination with relative authorities shall have competence to control and inspect economic facilities and ensure the extent of their commitment to apply terms and conditions stipulated in this law and all other laws applied in the State or Emirate and take what is necessary to achieve objectives of this law. However, the executive regulation of this law shall regulate objectives and duties of each section. Article 5 Grant Judicial Police Capacity Employees of the competent administration, designated by resolution from Crown Prince, Chairman of Executive Council, based on suggestion of the President of the Department, shall be empowered with capacity of law officer to inspect, control and prove acts that violate the provisions of this law as well as all applied laws within the State or Emirate or resolutions promulgated in implementation thereof and in order to do this, they shall be entitled to enter the economic facilities and make necessary reports in this regard in case of existence of violations and take necessary legal procedures and all local authorities and facilities in the Emirate should enable and cooperate with them in performing the works entrusted thereto according to the aforementioned laws. Article 6 Employees of the competent administration shall commit to maintain the confidentiality of the information they access thereto in implementation of the previous article and they may not disclose the same except to competent authorities. Article 7 Violation Report If inspection and controlling works resulted in seizing a violation, the controller, who has been granted capacity of judicial police by a resolution, must make report of such violation on the form prepared for that. The executive regulation of this law indicates the form of the report and the details that should be included therein. After promulgation of the executive regulation, it is permissible to amend some details of this report whether by deletion or addition, as per works shall result and in a way that achieves the objectives of this law, under resolution promulgated by the President. Article 8 Violations & Fines Without prejudice to any more severe punishment stipulated by other law, each person violates the provisions of this law and resolutions promulgated in implementation thereof shall be punished by fine as set out in the schedule attached to this law and Chairman of Executive Council may, by resolution promulgated by him and upon proposal of Department President, amend this schedule whether by deletion or addition provided that this amendment shall apply only to incidents following such amendment and fine shall be doubled in case of repeating the same violation within one Gregorian year. Article 9 Measures In addition to the penalties stipulated in the previous article, the Department may take one of the following measures against the violating facility: - 1- Warning. 2- Suspend the license of the facility temporarily. 3- Cancel the license permanently. 4- Closing 5- Take hold of seized machines, tools and commodities. In case the facility removes reasons of the violation and pays the determined fines, the Department should terminate the measure taken thereby. However, in the event a judgment of closing is rendered as a consequential penalty, the Execution Judge only shall have the authority to re-open the facility if it turned out to him, by letter from the Department, that reasons of the violation had been removed. Article 10 The facility shall have the right to submit grievance in writing to Director-General against decision of taking one of the measures stipulated in the previous article against it within thirty days from the date of being aware of such decision. In case of failure to remove grievance reasons, the Director General shall be entitled to refer the same to the Competent Committee which shall decide on the grievance within maximum period of one week from the date of referring grievance thereto and the decision issued from it shall be final. Article 11 It is not permissible to renew or amend the license or grant new permit or have any services provided by the Department to the violating facility except after removing the violation and paying all fines or rendering final judgments of abating these violations. Payment of the imposed fines shall result in abatement of lawsuit by conciliation. Article 12 Chairman of the Executive Council shall promulgate the executive regulation of this law. Article 13 Law no. 1 of 2007 on Controlling Commercial Facilities in the Emirate shall be repealed and each text which provisions contradict with provisions of this law shall be repealed. However, all regulations, resolutions and systems applied before the competent administration shall remain in force till promulgating the executive regulation of this law. Article 14 This law shall come into force as date of its promulgation and be published in the Official Gazette. Saud Bin Saqr Bin Mohamed Al Qasimi Ruler of Ras Al Khaimah Issued by us on this day, third of Safar 1438 H. Corresponding to third of November 2016 G.
  • Definitions 
    Words and phrases stated in this law shall have the meanings indicated against each of them, unless context requires otherwise:
    State: United Arab Emirates. 
    Emirate:  Emirate of Ras Al Khaimah.
    Ruler: His Highness Ruler of the Emirate.
    Department:  Department of Economic Development in Emirate of Ras Al Khaimah.
    President: President of Economic Development Department.
    Director-General: Director General of Economic Development Department.  
    Competent Administration: Commercial Control & Protection Administration in Department of Economic Development. 
    Economic Activity: Any commercial, industrial, occupational, professional, agricultural or service activity or any other activity aims at achieving profit and permitted to be carried on under legislations in force.  
    Controller: Department’s employees holding Controller Card and having capacity of judicial police under promulgated laws and regulations granting them this capacity. 
    Investor: Service provider, supplier, performer or the trader. 
    Consumer: Recipient of commodity or service from the commercial facility.  
    Competent Committee: A committee considers customers complains and grievances in Department of Economic Development.
    Economic Facility: The facility licensed by the Department to carry on commercial, industrial, occupational, professional, agricultural or service activity or any other activity aims at achieving profit and permitted to be carried on under applied legislations in the State or Emirate.  
     
  • Law Objectives 
    1- Provide stimulating environment for economic facilities in order to enhance effectiveness, competitiveness, consumer interest and achieve sustainable development in the Emirate. 
    2- Enhance investor and consumer rights and ensure commitment to fair trade practices in the Emirate.
    3- Provide suitable atmosphere for establishing commercial projects.
    4- Limit negative effects in economic practices in the Emirate and ensure necessity of adherence to conformity of commodities and provided services with legal requirements and conditions. 
    5- Ensure necessity of commitment of natural persons and economic facilities to provisions of all laws in force in the State or Emirate upon practicing any economic activity. 
     
  • Law Enforcement
    The provisions of this law shall apply to all facilities that fall within competence of the Department according to the laws in force in the State or Emirate in respect of economic activities thereof.
     
  • Administration Competences
    The two sections of Commercial Control & Protection in the competent administration and in coordination with relative authorities shall have competence to control and inspect economic facilities and ensure the extent of their commitment to apply terms and conditions stipulated in this law and all other laws applied in the State or Emirate and take what is necessary to achieve objectives of this law. However, the executive regulation of this law shall regulate objectives and duties of each section.   
     
  • Grant Judicial Police Capacity
    Employees of the competent administration, designated by resolution from Crown Prince, Chairman of Executive Council,  based on suggestion of the President of the Department, shall be empowered with capacity of law officer to inspect, control and prove acts that violate the provisions of this law as well as all applied laws within the State or Emirate or resolutions promulgated in implementation thereof and in order to do this, they shall be entitled to enter the economic facilities and make necessary reports in this regard in case of existence of violations and take necessary legal procedures and all local authorities and facilities in the Emirate should enable and cooperate with them in performing the works entrusted thereto according to the aforementioned laws.  
     
  • Employees of the competent administration shall commit to maintain the confidentiality of the information they access thereto in implementation of the previous article and they may not disclose the same except to competent authorities. 
     
  • Violation Report
    If inspection and controlling works resulted in seizing a violation, the controller, who has been granted capacity of judicial police by a resolution, must make report of such violation on the form prepared for that. 
    The executive regulation of this law indicates the form of the report and the details that should be included therein. After promulgation of the executive regulation, it is permissible to amend some details of this report whether by deletion or addition, as per works shall result and in a way that achieves the objectives of this law, under resolution promulgated by the President.  
     
  • Violations & Fines
    Without prejudice to any more severe punishment stipulated by other law, each person violates the provisions of this law and resolutions promulgated in implementation thereof shall be punished by fine as set out in the schedule attached to this law and Chairman of Executive Council may, by resolution promulgated by him and upon proposal of Department President, amend this schedule whether by deletion or addition provided that this amendment shall apply only to incidents following such amendment and fine shall be doubled in case of repeating the same violation within one Gregorian year.
     
  • Measures
    In addition to the penalties stipulated in the previous article, the Department may take one of the following measures against the violating facility: -
    1- Warning.
    2- Suspend the license of the facility temporarily. 
    3- Cancel the license permanently.
    4- Closing 
    5- Take hold of seized machines, tools and commodities. 
    In case the facility removes reasons of the violation and pays the determined fines, the Department should terminate the measure taken thereby. However, in the event a judgment of closing is rendered as a consequential penalty, the Execution Judge only shall have the authority to re-open the facility if it turned out to him, by letter from the Department, that reasons of the violation had been removed.
     
  • The facility shall have the right to submit grievance in writing to Director-General against decision of taking one of the measures stipulated in the previous article against it within thirty days from the date of being aware of such decision. In case of failure to remove grievance reasons, the Director General shall be entitled to refer the same to the Competent Committee which shall decide on the grievance within maximum period of one week from the date of referring grievance thereto and the decision issued from it shall be final.  
     
  • It is not permissible to renew or amend the license or grant new permit or have any services provided by the Department to the violating facility except after removing the violation and paying all fines or rendering final judgments of abating these violations. Payment of the imposed fines shall result in abatement of lawsuit by conciliation.  
     
  • Chairman of the Executive Council shall promulgate the executive regulation of this law.
     
  • Law no. 1 of 2007 on Controlling Commercial Facilities in the Emirate shall be repealed and each text which provisions contradict with provisions of this law shall be repealed. However, all regulations, resolutions and systems applied before the competent administration shall remain in force till promulgating the executive regulation of this law. 
     
  • This law shall come into force as date of its promulgation and be published in the Official Gazette.

Classification
  • Civil Legislation
Related Legislations
Legislation Number Legislation Subject
2016-2-8 Law No. 8 of 2016 On Regulating Practicing Economic Activities in Ras Al Khaimah
2016-6
2016-5 Law No. 5 of 2016 Regarding Promotional Campaigns & Special Offers For Commercial Advertising Purposes
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