VI.  TRADE REGULATIONS AND STANDARDS

A.  Import Considerations:

Each emirate operates its own customs authority, but tariffs and general
policies are coordinated through a national committee.  Tariffs are very low
ranging from zero to four percent. Duties are assessed on a cif basis (costs
of insurance and shipping are included).

The importation of firearms, unlicensed drugs, pork products, and alcoholic
beverages are restricted.  Only firms with the appropriate trade license can
engage in importation. All imported beef and poultry products require a health
certificate from the country of origin and a Halal slaughter certificate
issued by an approved Islamic center in the country of origin.

The U.A.E. offers a full range of shipping options with modern ocean and
airports equipped with the latest material handling and storage facilities.
Documentation requirements follow international standards and delays in custom
clearance have been infrequent.  The intense competition for business between
the port facilities of the different emirates have kept user rates to a
minimum and put a premium on services.  There are no duties on exports.


B.  Free Trade Zones:

There are several free trade zones in the U.A.E., the largest being at the
Dubai port of Jebel Ali.  All zones are considered outside of the commerce of
the U.A.E..  This allows for 100 percent foreign ownership, and no duty on
shipments into the zone.  In addition, each trade zone offers special
incentives to attract tenants, such as no taxation for many years, subsidized
energy rates, and full repatriation of capital and profits.  In addition, for
a nominal fee the zone authority provides significant support services such as
sponsorship, worker housing, dining facilities, recruitment and security.


C.  Gulf Cooperation Council:

The U.A.E. is a member of the Gulf Cooperation Council (GCC), an association
of political and economic cooperation among the gulf states of Oman, the
U.A.E., Saudi Arabia, Bahrain, Qatar, and Kuwait.  Under this arrangement all
agricultural, animal, industrial, and natural resource products from member
states are exempt from duties and other charges when traded among member
states.  To qualify as a GCC national product the value added in a GCC member
state must not be less than 40 percent of the final value, and produced in a
factory with at least 51 percent local ownership, unless 100 percent is owned
by GCC nationals, and licensed by the respective ministry of finance
and industry.   All intra-GCC shipments claiming this exemption must be
accompanied by a duly authenticated certificate of origin.


D. Standards:

The U.A.E. currently has no central standards authority.  However, both the
national and emirate governments, as well as professional associations are
reviewing standards requirements.  This is particularly true for the
construction industry.  Currently, government agencies and private firms
stipulate the standards required on a project-by-project basis.  This allows
for a wide range of acceptable product performance, makes health and safety
monitoring difficult, permits the use of low quality products and the
manipulation of tender specifications.  A U.A.E. company first qualified for
ISO 9000 certification in 1993.  Since then several more have received the
designation.

Food labels must include production and expiry dates, country of origin, name
of the manufacturer, net weight in metric units, and a list of ingredients and
additives, if any.  All fats and oils used as ingredients must be specifically
identified on the label. Labels should be in Arabic or Arabic/English.