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Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.Read the full edition
Sakher Alaqaileh - Senior Counsel - Shipping, Aviation & Logistics
Bassam Al-Azzeh - Senior Associate - Intellectual Property
As part of Dubai Customs’ constant efforts to improve the delivery of services and further facilitate and implement adequate customs procedures, which will help create an attractive investment and business environment, Dubai Customs has issued, in October 2020, Notice No. 17 /2020 regarding the clearance of the consumed goods in Free Zones (the “Notice”).
The Notice aims, among other things, to enhance the control of the stock held by free zone companies by establishing new compliance requirements to ensure an improved and simplified clearance of goods used or consumed within the free zones. These requirements are discussed in further detail below. Free Zone companies are, therefore, advised to assess the impact of the new requirements on their activities to ensure full compliance, mitigate risks of discrepancy related to consumed goods between their import inventory and the customs records, and avoid potential penalties in the event of an audit.
Goods consumed by free zone companies has caused some complications to such companies including complications resulting in import inventory discrepancies, which are usually uncovered in the context of the random customs audit by the relevant authority. Today, by issuing this Notice, the Customs Authority places an express obligation on free zone companies to conduct clearance for consumer goods and submit a mandatory declaration. We highlight below the key takeaways of this Notice.
According to the Notice, goods consumed in FREE ZONES are split into two categories: (i) goods that are not subject to customs duties when consumed; and (ii) goods that are subject to customs duty when consumed; as set out below.
These are goods which are used and consumed within the free zones for the establishment, operation and maintenance of projects and facilities functioning which enable businesses to carry out their activity, as well as those that are involved in the manufacture of any goods or production of any service within free zones. These include:
The Notice sets out the process that must be followed, at least on a quarterly basis, by free zone companies when consuming goods:
In light of the above, free zones companies in Dubai can avoid paying customs duties on certain consumed goods. Also, avoid any risk of discrepancy related to consumed goods between their import inventory and the customs records by complying with Notice through completing a consumption goods declaration at least on a quarterly basis.
For further information or clarifications , please contact Sakher Al Aqaileh (S.Alaqaileh@tamimi.com) or Bassam Al Azzeh (B.Alazzeh@tamimi.com).
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