Introduction
According to the Uganda Export Promotion Board, The United Arab Emirates (UAE) is the leading market for exports from Uganda within the Middle East and Gulf countries, accounting for approximately 94% of all exports from Uganda. It is reported that there has been a significant surge in exports to the UAE from US$300 million in 2018 to US$2 Billion by 2022. Similarly, there has been a surge in Foreign Direct Investment to Uganda from UAE of approximately US$ 3 billion and imports from UAE to Uganda are estimated at US$ 1.1 billion. Uganda's primary export products to the UAE include gold, fish and coffee.
Recently, the Ugandan and the UAE governments have recognized the mutual trade and business opportunities, thus strengthening relationships and goodwill. This, therefore, presents a golden opportunity for business owners seeking to expand their markets to consider the UAE seriously.
In this article, I provide guidance on the key legal considerations for Ugandan entities looking to export goods to the United Arab Emirates (UAE).
Ugandan Export Laws and Regulations: Exporters must adhere to the Uganda Export Promotion Board regulations and other antecedent laws which mandate the acquisition of an Export License/permit. There is a requirement for the business to be duly registered/incorporated, to have a TIN and the relevant licence or permit, which depends on the product being exported.
UAE Import Regulations: Compliance with the UAE Customs Laws and Federal Law No. 24 of 2006 concerning Consumer Protection is crucial.
Product Specific Laws
1. Halal Certification: Obtaining a Halal Certification is often mandatory for exporting food products.
2. Standardization: Products must meet the UAE's Emirates Conformity Assessment Scheme (ECAS) standards.
Customs Duties and Taxes
1. UAE Customs Tariffs: The UAE generally imposes a 5% (CIF) customs duty on most goods.
2. Value Added Tax (VAT): A 5% VAT applies to most goods imported into the UAE.
Documentation
The following documents are required for exportation.
1. Bill of Lading or Airway Bill: Required for all shipments.
2. Certificate of Origin: Verifies that the goods are manufactured in Uganda.
3. Commercial Invoice: This should detail the value of goods, among other particulars.
Intellectual Property Rights
Ensure your products do not infringe on existing intellectual property rights in the UAE. Register trademarks and other intellectual property, as applicable.
Other general considerations
Generally, I recommend that before exporting, the following must be done;
i) Legal Due Diligence: Conduct a comprehensive due diligence exercise before exporting.
ii) Contracts: All commercial agreements, including distribution and agency contracts, should be drafted carefully and preferably reviewed by a legal professional well-versed in UAE law.
iii) Regulatory Updates: Stay updated on changes in export/import laws both in Uganda and the UAE.
iv)Dispute Resolution: Clearly outline the dispute resolution mechanisms in any contractual agreements.
Conclusion
Compliance with Ugandan and UAE laws and regulations is essential for successful exporting activities. I recommend engaging competent legal counsel to navigate the complexities of the legal frameworks in both jurisdictions.