UAE Joins Arab Customs Cooperation Agreement
Transport & Logistics Focus
Sakher AlaqailehSenior Counsel,Transport & Insurance
Bassam Salah AlAzzehSenior Associate,Intellectual Property
Nazly SadikParalegal,Transport & Insurance
The United Arab Emirates (“UAE”) has taken a significant step towards enhancing its trade and customs framework by announcing its accession to the Arab Customs Cooperation Agreement (“ACCA”). Through Federal Decree Law No. (90) for 2023, published in the Official Gazette No. 752 on 31 May 2023, the UAE solidifies its commitment to cooperation and collaboration among member states. The ACCA, serves as a platform for promoting mutual assistance and information exchange in the realm of customs procedures and practices. It aims to streamline trade facilitation, combat customs offenses, and ensure the smooth flow of international trade.
The ACCA is an international agreement among the customs authorities of the member states of the League of Arab States ("LAS").
It was established with the primary objective of promoting cooperation between LAS member states' customs authorities, facilitating trade, and ensuring regional security. The ACCA covers various areas, including information exchange, customs procedure coordination, harmonization of laws, and combating smuggling and customs offenses.
The ACCA was drafted in the city of Riyadh on 5 May 2015 and has since remained a foundational agreement guiding cooperation among the customs authorities of the member states of the League of Arab States ("LAS"). Its adoption took place after years of negotiations, aiming to foster economic integration, facilitate trade, and address cross-border illicit activities.
Throughout its existence, the ACCA has played a significant role in promoting trade and economic integration in the LAS region, while also improving border security and combatting illicit activities.
Since its inception, the ACCA has continuously evolved to adapt to changing trade dynamics, technological advancements, and emerging challenges. It serves as a vital framework for cooperation among Arab countries in customs matters, enhancing regional collaboration and facilitating legitimate trade.
The primary objective of the ACCA is to strengthen economic sectors, promote trade, and facilitate social integration among member states. By providing effective mechanisms for customs cooperation and administration, the ACCA responds to the evolving landscape of international trade. The UAE's accession underscores its dedication to bolstering the regional trading framework through the exchange of information and the unification of customs procedures and practices. Moreover, the ACCA emphasizes the importance of cross-jurisdictional training programs for customs authorities, reinforcing the UAE's commitment to combat smuggling and illicit trade within the region.
The ACCA is undoubtfully a significant step towards achieving the Greater Arab Free Trade Area (“GAFTA”). This ACCA paves the way for closer economic integration and trade cooperation among Arab countries, fostering greater regional unity and economic prosperity by number of ways:
The ACCA has helped to reduce the cost of trade between Arab countries which will help increasing intra- regional trade
The ACCA will improve competitiveness to the Arab industries by making it more attractive for foreign investment.
The ACCA serves as a steppingstone which undeniably will have a transformative impact on trade and economic cooperation withing the Arab region as it has played a vital role in fostering regional integration, enhancing trade flows and promoting economic development in the league of Arab states.
The ACCA aims to enhance collaboration and implementation of customs legislation, serving as a catalyst for robust customs cooperation among signatory nations. Its key provisions focus on establishing a framework for cooperation and mutual assistance among Customs administrations. Here are some key points highlighting the impact and objectives of the ACCA:
Mutual Administrative and Technical Assistance: The ACCA emphasizes the importance of mutual assistance in preventing and combating customs crimes and offenses, ensuring the security of the supply chain in Arab and international trade. This provision promotes cooperation and coordination among the customs administrations of the signatory countries. (Article 2)
Exchange of Customs Legislation and Procedures: The contracting parties commit to sharing information about their national customs legislation and procedures. This exchange of knowledge enhances the understanding and enforcement of customs regulations, promoting consistent practices and facilitating cross-border trade. (Article 3)
Sharing Information on Customs Offenses: The ACCA enables the sharing of crucial information related to customs offenses, including the customs status of exported goods, the legitimacy of customs procedures, and identification of illegal operations or suspected smuggling activities. This provision strengthens the enforcement efforts and helps combat customs violations effectively. (Article 4)
Customs Control and Risk Management: The ACCA emphasizes the importance of customs control based on risk management principles. Customs administrations exchange information on goods, means of transport, places, and individuals involved in customs offenses or suspected offenses. This targeted approach enhances the efficiency of customs control while ensuring compliance with customs legislation. (Article 5)
Exchange of Information for Economic Interests and Public Security: The ACCA promotes the automatic or requested exchange of information among the contracting parties. This includes sharing data on cases that may cause harm, individuals suspected of customs offenses, means of transport used in offenses, and statistics on the movement of goods and means of transport. This provision strengthens economic interests, protects public security, and facilitates effective customs enforcement. (Article 6 & 7)
Streamlining Customs Procedures: The ACCA focuses on simplifying, unifying, and harmonizing customs practices. It encourages the adoption of modern methods such as risk management and audit-based control procedures, as well as the optimization of information technology. Collaboration between customs administrations, competent authorities, and the private sector is fostered to facilitate the smooth movement of goods and improve trade facilitation. (Article 9)
Technical Cooperation and Capacity Building: The ACCA highlights the importance of technical cooperation, capacity building, and knowledge exchange among the contracting parties. It encourages personnel exchange, sharing of information and experiences, mutual training for customs officials, and collaboration on studies, research, and training programs. This provision promotes continuous improvement and growth in customs practices. (Article 10)
Intellectual Property Rights: calls for the establishment of specialized IP investigation units to protect intellectual rights within the region. (Article 11)
Combating Smuggling and Illicit Trade: highlights the importance of member countries collaborating to combat smuggling, counterfeiting, and illicit trade. (Article 12)
Cooperation in Combating Money Laundering: The ACCA emphasizes cooperation in combating money laundering. Customs administrations agree to share information and data on operations suspected of being linked to money laundering, in accordance with their competencies and national legislation. This provision enhances efforts to combat financial crimes and ensures the integrity of international trade. (Article 13)
Legal Cooperation and Expert Witnesses: The ACCA facilitates legal cooperation by allowing employees of the customs administration to appear as experts or witnesses before courts or judicial authorities in the territory of the requesting party. The requesting party ensures the protection and security of these experts and witnesses during their stay. Establishing official contact points streamlines the process of requesting and providing assistance, ensuring effective communication and cooperation. (Articles 14 and 15)
Customs Violations and Crimes: The ACCA allows member countries to request copies of data pertaining to suspected or actual customs violations and crimes from other member states. (Article 16)
Controlled Movement of Prohibited Goods: The ACCA enables members to authorize the controlled movement of prohibited and restricted goods under customs administration supervision, facilitating the investigation and prevention of customs offenses and illicit activities This provision supports enforcement efforts and promotes efficient investigations. (Article 17)
Confidentiality and Data Protection: The ACCA emphasizes the importance of maintaining the confidentiality of information exchanged between Customs administrations. It ensures that the information enjoys the same level of protection as provided by the national legislation of the party providing it. This provision aims to safeguard sensitive data and promote trust among the member countries. (Article 18)
Purposeful Use of Information: The information obtained through administrative cooperation should be used exclusively for the purposes stated, unless expressly authorized by the Customs Administration or other competent authorities. This provision ensures that the information is utilized appropriately and discourages any misuse or unauthorized access to the shared data. (Article 18)
Refusal and Postponement of Assistance: The ACCA acknowledges that assistance may be refused or postponed under specific circumstances, such as when it violates national sovereignty, public policy, or industrial secrecy. This provision recognizes the need to balance cooperation with respect for national interests and legal frameworks. (Article 19)
Financial Responsibility: The ACCA establishes the financial responsibility for the implementation of requests for assistance. The party requesting assistance generally bears the costs related to experts, witnesses, translators, and interpreters. However, the ACCA allows for consultations in case significant or extraordinary expenses arise, ensuring a fair distribution of financial burdens. (Article 20)
Cooperation Mechanism and Contact Points: The ACCA defines the role of Customs administrations in facilitating cooperation and mutual assistance. It establishes the need for direct relationships between officials responsible for investigations and combating Customs violations. The exchange of contact information enhances communication and coordination among the contracting parties. (Article 21)
Dispute Resolution: The ACCA provides a mechanism for settling disputes related to its implementation. It encourages negotiations between the Customs administrations of the contracting parties, emphasizing dialogue and cooperation. If necessary, diplomatic channels can be used to address unresolved issues. (Article 22)
Minimum Level of Cooperation: The ACCA sets a minimum level of cooperation that should be exchanged between the contracting parties. It ensures that the provisions of the ACCA do not conflict with other voluntary or bilateral/multilateral agreements established in the field of cooperation. (Article 23)
The ACCA stands as a testament to the commitment of Arab nations towards effective customs cooperation, promoting trade facilitation, and combating illicit activities. By strengthening mutual assistance and adopting modern practices. Through the ACCA, the member states strive to establish a more prosperous and secure trade environment while fostering closer regional ties and cooperation.
The UAE's accession in the ACCA signifies its commitment to regional cooperation, strengthening the trade and customs landscape, and combating illicit activities. By fostering cooperation, sharing information, and unifying customs procedures and practices, the ACCA aims to enhance economic sectors, trade, and social integration among member states. It further demonstrates the UAE's commitment to combating smuggling, protecting intellectual property rights, and promoting a secure and conducive environment for international trade. As a part of the global efforts to facilitate the smooth flow of supply in international trade, the ACCA sets the stage for greater regional unity and prosperity. This collaboration will contribute to fostering economic growth and integration among the signatories’ countries.
For further information,please contact Sakher Alaqaileh or Bassam Salah AlAzzeh
Published in August 2023
