Electric Vehicles in the UAE Legal and Regulatory Implications
Transport & Insurance Focus
Electric Vehicles (EVs) are promoted as part of the UAE Sustainable Development Vision 2030, which aims to reduce the country's carbon footprint and dependence on fossil fuels.
Law Update: Issue 366 - Transport & Insurance
Sakher Al AqailehSenior Counsel,Transport & Insurance
Bassam Al AzzehSenior Associate,Transport & Insurance
Dana DakwarParalegal,Transport & Insurance
Electric Vehicles (EVs) are promoted as part of the UAE Sustainable Development Vision 2030, which aims to reduce the country's carbon footprint and dependence on fossil fuels. The UAE has also taken the lead among the GCC countries in developing and implementing regulations and standards for the use of EVs. However, the import and use of EVs puts some legal and regulatory challenges, such as complying with safety and performance criteria, ensuring proper packaging and transportation of lithium batteries, and providing incentives and benefits for EVs users. This article will examine some of these challenges and how the UAE has addressed them, as well as the implications for the Customs and Logistics sector.
One of the main challenges for importing EVs is to ensure that they meet the technical requirements and specifications set by the UAE and the GCC. The UAE, represented by the Ministry of Industry and Advanced Technology (MoIAT), established the 'UAE Regulations on Electric Vehicles' in 2019, which became the official guidelines for importing and using EVs in the UAE. These regulations cover safety and performance criteria, such as protection against electrical shock, covering frontal, rear, and side impacts, electric energy consumption, and total range. The regulations were then adopted by the GCC Standardization Organization (GSO), leading to the issuance of the 'Gulf Standard No. 2698:2022 – Technical Requirements for Electric Vehicles, setting the standard for EV import across GCC countries.
Importers are required to seek approval from the MoIAT with regards to the technical standard and conformity certificates for EV, while the UAE Federal Authority for Identity, Citizenship, Customs, and Ports Security (the “Customs Authority”) is responsible for approving the entry of EVs and spare parts such as batteries that meet these standards into the UAE.
The technical requirements for electric vehicles (EVs) with a speed of more than 25 km/h, and, the GSO defines the EV as "an alternative fuel automobile that uses electric motors and motor controllers for propulsion, in place of the internal combustion engine (ICE)".
The general requirements on protection against electrical shock, such as protection against direct and indirect contact, isolation resistance, and Rechargeable Energy Storage System safety.
The electrical protection requirements after different types of impact, such as frontal, rear, side, and roof impact, which include conditions on voltage, energy, resistance, and electrolyte spillage.
The electric energy consumption shall be expressed in watt-hours per kilometre (Wh/km) and the range in km, both rounded to the nearest whole number. The regulation also sets the limits for the electric energy consumption and the range, which are 300 Wh/km and 200 km respectively.
The manufactures responsibility for EVs, such as carrying out type test for all the requirements of this regulation, preparing manual with risks and all the warnings for safe use for electrical cars, providing proper training to civil defence departments and customers, equipping the cars with the electrical car performance label, and having at least one workshop with qualified and trained persons for regular maintenance and repairing.
The requirements for electric vehicle supply equipment, such as electric vehicle coupler, power rating, markings, cords and cables, interlock, automatic de-energization of cable, and personnel protection system. The standard requires that the cable for cord-connected equipment shall not exceed 7.5 m in length, unless equipped with a cable management system, and shall comply with other cable types and assemblies listed as being suitable for the purpose. The standard also requires that overcurrent protection for feeders and branch circuits supplying EVSE shall be sized for continuous duty and shall have a rating of not less than 125 percent of the maximum load of the EVSE.
However, meeting these requirements is not always straightforward, as some EVs may not comply with the GCC specifications upon arrival at the port. This may result in the rejection of the vehicle's entry into the country, leading to high costs for storage or returning the car to its country of origin. Therefore, manufacturers and importers of EVs must ensure that they obtain the necessary conformity certificates and adhere to the post-import measures, such as registration and inspection, as required by the relevant authorities, such as the Roads and Transport Authority (RTA) in Dubai.
Another challenge for importing EVs is to comply with the regulations and standards for the packaging and transportation of lithium batteries, which are the main energy storage device for EVs. Lithium batteries are classified as dangerous goods, as they pose a risk of fire, explosion, or leakage if not handled properly. Therefore, they are subject to strict regulations governing the transportation of hazardous materials, such as UAE Standard No. UAE GSO IEC 62281 on the Safety of Primary and Secondary Lithium Cells and Batteries During Transport and UAE GSO IEC 62485-3 entitled the Safety Requirements for Secondary Batteries and Battery Installations - Part 3: Traction Batteries. These regulations require specialized packaging that conforms to UAE and GCC regulations, complies with hazard material (hazmat) and hazardous waste shipping regulations, and accommodates the size and weight of the batteries. Manufacturers and importers of EVs must bear the additional shipping costs encountered for the specialized packaging required for EV imports.
The UAE has introduced various incentives and benefits for EV users, in order to encourage the adoption of EVs as a substitute for traditional petrol vehicles. These include free charging through initiatives like DEWA's EV Green Charger, and the RTA in Dubai plans to transform taxis in Dubai into 100% eco-friendly (hybrid, electric, and hydrogen-powered) vehicles by 2027. These incentives are playing a key role in improving the EV market and promoting this sector growth in the UAE.
EVs are well regulated and part of the government policy to transfer the transportation sector into an eco-friendlier system. The different arms of the government in the UAE, including MoIAT, RTA and Customs Authority, are collaborating together to achieve the UAE Sustainable Development Vision 2030.
As you navigate the complexities of Electric Vehicle (EV) importation and use in the UAE and the GCC region, compliance with the UAE's stringent EV regulations and standards is key to ensure that your business meets all legal requirements for the importation, packaging, and transportation of EVs and lithium batteries and avoid any incompliance violations. Whether you're facing challenges with obtaining necessary conformity certificates or navigating the incentives and benefits for EV users, our dedicated team is ready to help you overcome these hurdles and capitalize on the opportunities within the UAE's EV market. Feel free to contact us to ensure your operations are fully compliant and optimized for success.
For further information,please contact Omar N. Omar, Sakher Alaqaileh or Bassam Al Azzeh,
Published in March 2024
