Dubai: Sheikh Mohammad bin Rashid Al Maktoum issued Law No. (3) of 2020 on the Dubai Multi Commodities Centre (DMCC) in his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE.
According to the new Law, the Dubai Multi Commodities Centre Authority will be responsible for supervising DMCC.
The Authority is responsible for setting up, developing and managing the infrastructure of DMCC, developing the rules and regulations required for DMCC to achieve its objectives; supervising activities in the Centre; issuing licenses for companies seeking to operate in the Centre; and monitoring and supervising construction within the Centre.
The new Law outlines the organisational structure of DMCC Authority and specifies the authorities and procedures to form the Board and executive body of the DMCC Authority.
The new law stipulates that any company registered to operate within DMCC is strictly not allowed to practice any activity other than what is stated in their registration permit, or any activity that goes against public order and norms.
The law also regulates customs duty exemptions and tax exemptions for commodities trade, re-export and storage within DMCC and the establishment of private, commercial and joint venture companies. All companies registered within DMCC must identify themselves as a free zone company in their correspondence, contracts, advertisements, invoices and stationery. DMCC companies cannot transfer their license to a third party without prior written permission from DMCC Authority.
The Board of Directors of DMCC will issue all the bylaws required to implement the articles of the Law. The new Law will be published in the Official Gazette and is effective from the date of its publication.