Anti-Dumping in the UAE: Laws and Regulations
Dispute Resolution / UAE
Bassam Al-AzzehSenior Associate,Transport & Insurance
Anti-dumping measures play a key role in international trade policy as it aims to protect domestic industries against harmful and unfair trade practices that could negatively impact a nation's economy. In this context, the United Arab Emirates (UAE) has established a comprehensive legal framework to combat dumping and enforce compensatory and preventive measures effectively.
This article explores the UAE's anti-dumping laws and regulations, with a particular focus on UAE Federal Law No. 1 of 2017 on Anti-dumping (the “UAE Anti-dumping Law”) and its Executive Regulations issued under Cabinet Decision No. 8 of 2018 (the “UAE Anti-dumping Executive Regulation”).
According to the UAE Anti-dumping Law, “dumping” is defined as exporting a product to another country at a price lower than its normal value in the domestic markets of both the importing and exporting countries. This practice poses a significant threat to the domestic industry of the importing country, often necessitating regulatory measures to mitigate its impact.
The UAE Anti-Dumping Law serves as the legal foundation for addressing dumping practices within the country. Its pri*mary objective is to safeguard the national industry from harmful trade practices that could significantly damage the local market.
For instance, it addresses cases where foreign manufacturers export steel products at artificially low prices, detracting locally produced steel products, The law applies to three main practices: (i) dumping, (ii) targeted subsidies such as price support for specific products; and (iii) increase in imports.
The UAE Anti-dumping Executive Regulation, on the other hand, details procedures for investigating dumping complaints and implementing necessary measures to counteract such malpractices effectively.
The UAE Anti-dumping Law and its Executive Regulation outline a comprehensive investigative process to determine whether dumping has occurred. The key steps include:
Filing a Complaint
Article 2 of the UAE Anti-Dumping Executive Regulations allows a dumping complaint to be filed either by the national industry, whose products are labeled as "Made in the UAE" or by the relevant government authorities. The complaint must include evidence and indications demonstrating the existence of dumping and the resulting harm to local industries. Such complaints are submitted to the UAE Ministry of Economy (the “MoE”) for review.
Initiating the Investigation
The department responsible for combating harmful practices in international trade at the Ministry of Economy reviews the complaint and assesses the adequacy of the provided evidence. If the evidence is deemed sufficient, the investigation into the complaint is initiated according to Article 3 of the UAE Anti-Dumping Executive Regulations.
Announcing the Investigation
As per Article 9 of the Executive Regulations, the MoE announces the decision to initiate an investigation through the official gazette or the two daily newspapers at the national level. The announcement must include a description of the product under investigation and specify the exporting country or countries. For example, on May 23, 2024, the Ministry of Economy published an announcement No. 1 for 2024 to initiate an investigation into the dumping of white mushroom products under HS Code 07095100 originating from Iran. The complainant in this case was Themar Al Emarat LLC.
Temporary and Final Measures
Temporary Measures - According to Article 36 of the Executive Regulations, temporary anti-dumping measures can be imposed if there is sufficient evidence of dumping and the resulting damage. These measures take the form of temporary duties imposed on the affected imports for a period not exceeding four months, which can be extended for an additional two months.
Final Measures - Final anti-dumping measures are imposed after the investigation confirms the existence of dumping and the resulting damage. These measures take the form of final anti-dumping duties (taxes upon importation to the UAE) imposed on the affected imports for a period of up to five years, according to Article 38 of the UAE Anti-Dumping Executive Regulations.
Price Undertakings - The UAE Anti-Dumping Executive Regulations allow foreign exporters to offer price undertakings as an alternative to imposing duties. According to Article 39, exporters can voluntarily offer price undertakings that include adjusting their product prices to avoid the imposition of anti-dumping duties. These undertakings must be sufficient to eliminate the damage caused by dumping.
Periodic Review - A periodic review of the imposed measures is conducted to ensure their continued necessity. According to Article 46 of the UAE Anti-Dumping Executive Regulations, the UAE Ministry of Economy is permitted to conduct investigationsat any time to assess the effectiveness of the imposed measures and/or the possibility of modifying or lifting them.
Appeals and Complaints The UAE Anti-Dumping Law allows foreign parties affected by anti-dumping decisions to appeal final decisions before the Federal Courts of Appeal within three months as of the issuance of the anti-dumping decision.
The UAE Anti-Dumping Law serves as the legal foundation for addressing dumping practices within the country. Its primary objective is to safeguard the national industry from harmful trade practices that could significantly damage the local market.
Pursuant to Article 15 of UAE Federal Law No. 11 of 2019 on Rules of Origin, if authorities determine, after investigation, that UAE manufacturing operations are intended to avoid anti-dumping measures, the manufacturing entity may face one of the following penalties:
A warning.
Temporary suspension of the issuance of preferential and non-preferential certificates of origin for up to one year.
Permanent suspension of the issuance of preferential and non-preferential certificates of origin.
For instance, if a forging company operates a subsidiary in the UAE that imports raw materials from a country subject to anti-dumping duties and carries out minimal processing to label its final product as "Made in UAE," authorities may view this as an attempt to avoid anti-dumping measures. If such practices are confirmed, the company could face penalties under Article 15 of the UAE Federal Law on Rules of Origin.
Additionally, importers who attempt to avoid anti-dumping duties by concealing the origin of the imported products or mis-declare such products may be subject to smuggling charges in line with the provisions of the Gulf Cooperation Council (GCC) Customs Law.
If evidence confirms dumping and its harmful effects on national industries, temporary or final measures may be imposed for up to five years, and are subject to extension. For example, cement clinker originating from Iran has been subject to anti-dumping duties of 67.5% on imports to the UAE since 2020. Similarly, aluminum alloys from China have faced anti-dumping duties of 33% since 2021. Additionally, automotive batteries originating in or exported from the Republic of Korea have been subject to anti-dumping duties of 25% since 2017, with these measures set to remain in effect until 2027.
Overall, the UAE's anti-dumping regime promotes fair competition, aims to protects the national economy, and fosters a stable and equitable trade environment.
For further information,please contact Bassam Al-Azzeh.
Published in February 2025
