Parallel Imports in the UAE: Insights on Trademarks, Agencies, and Free Zones
Korea Focus
Bassam Al-AzzehSenior Associate,Transport & Insurance
Ameen KimAssociate,Korea Group
Korean and other international brands have become an increasingly strong presence across the Middle East and North Africa (MENA), particularly in sectors such as electronics, automotive, pharmaceuticals, cosmetics, and food. With the UAE serving both as a consumer market and a regional logistics hub, it often functions as the primary entry point for brands into the wider GCC region.
Parallel importation refers to the import of genuine branded goods without the authorization of the trademark owner or registered commercial agent. The UAE does not have a specific law directly regulating parallel imports; instead, their legality is shaped by existing frameworks, including trademark law, commercial agency law, and customs regulations. The country operates under two distinct trade systems: the mainland, where federal laws and agency protections apply, and the free zones, where goods can be imported, stored, repacked, or re-exported with fewer restrictions. Customs enforcement and commercial agency rules generally apply only when goods leave free zones and enter the mainland. This duality lies at the heart of the debate on parallel imports in the UAE.
This article examines the UAE’s legal and practical framework for parallel imports, focusing on Trademark Law, the Commercial Agency Law, and Cabinet Resolution 538/1, as well as the Common Customs Law.
It explores customs practices in mainland and free zones, exceptions for essential goods, and the implications for traders and IP enforcement.
Trademark Law—Federal Decree-Law No. 36 of 2021 Article 45 of the Trademark Law empowers brand owners to prevent the importation of counterfeit goods into the UAE. Article 46, however, permits certain parallel imports, including:
Small, non-commercial quantities carried in personal luggage or sent in small consignments; and
Goods lawfully placed on the market in the exporting country by the trademark owner or with their consent.
In practice, customs authorities often restrict parallel imports of small but high-value items, such as luxury watches.
On the other side, imported goods, even if genuine, must meet UAE technical, safety, and labeling standards before they can be sold in the mainland. Failure to comply can result in detention, and re-export of the shipment. This creates an additional layer of examination for parallel imports, particularly in sectors such as electronics, food, and pharmaceuticals, where conformity with the Ministry of Industry and Advanced Technology (MOIAT) requirements is mandatory. As a result, compliance with national standards is often a decisive factor in determining whether parallel imports can legally enter the market.
Commercial Agency Law—Federal Law No. 3 of 2022Articles 20 and 21 of the Commercial Agency Law present significant protections on registered commercial agents:
Article 20 prohibits third parties from importing or selling goods covered by a registered agency in the UAE without the agent’s consent, effectively granting quasi-border-control powers to commercial agents. While the article refers to “the country,” in practice its application is limited to mainland trade.
Article 21 authorizes the Cabinet to exempt certain goods or activities from the law’s scope. Cabinet Resolution No. (538/1) of 2005, which remains in force, excludes basic foodstuffs from agency protections. As a result, parallel imports of essential goods—including dehydrated and condensed milk, frozen and packaged vegetables, baby formula and children’s food, noodles, poultry, rice, flour, cooking oil, tea, coffee, cheese, sugar, pastries, fish, and meat products—are permitted, reflecting public-interest considerations such as food security and market stability.
Common Customs Law of the GCCFederal Decree No. 15 of 2022 ratifies the Common Customs Law, defining customs powers:
Article 2(24): Free zones are treated as outside the customs territory, allowing trade activities with minimal intervention.
Article 80(4): Empowers customs to prohibit the entry, transit, or exit of restricted goods absent approval from competent authorities, including imports in violation of commercial agency exclusivity or trademark rights.
While these provisions provide legal authority, their practical application differs sharply between mainland and free-zone areas.
The UAE does not have a specific law directly regulating parallel imports; instead, their legality is shaped by existing frameworks, including trademark law, commercial agency law, and customs regulations.
Imports to the MainlandAt mainland entry points—such as Jebel Ali Inland Clearance, Port Rashid, Khalifa Port, and Dubai International Airport Cargo Village—customs authority enforces blocking notices from registered commercial agents. Consignments listing protected HS codes and brands are “red-channeled.” Release is only permitted upon:
Written no-objection from the agent;
Proof that the goods are in transit to another GCC state; or
Evidence that the goods fall outside the agent’s scope (e.g., a different model line).
Absent such proof, customs authority applies Article 20 of the Commercial Agency Law, detains the shipment, and orders its re-export.
Free ZonesIn free zones—such as JAFZA, DAFZA, or KIZAD—the dynamic differs:
Goods bearing protected trademarks enter freely if the consignee holds a free-zone trade licence.
Agency exclusivity applies only when goods are cleared into the mainland.
If grey-market goods enter the domestic market without customs clearance, the importer bears the legal risk under both trademark and agency laws.
This approach aligns with the UAE’s strategic role as a regional logistics hub. Restricting free-zone imports would undermine trade efficiency and re-export competitiveness.
Parallel imports into free zones are generally permissible, but the commercial and legal risk materializes once goods are cleared into the mainland. Traders should obtain written confirmation from registered commercial agents before mainland clearance to mitigate potential enforcement actions.
In conclusion, the UAE’s regulatory regime for parallel imports reflects a careful balance between intellectual property protection, commercial agency rights, conformity standards and trade facilitation. While trademark law and the Commercial Agency Law offer robust protections for brand owners and commercial agents in the mainland, free zones present flexibility for legitimate transit in, storage, re-export and potentially trade activities. Understanding this dual system is critical for traders, brand owners, and legal practitioners navigating parallel imports, highlighting the importance of strategic planning and compliance to manage both legal risk and commercial opportunity.
For further information,please contact Bassam Salah AlAzzeh.
Published in October 2025
