KHALIFA BIN ZAYED AL NAHYAN President of the United Arab Emirates

FEDERAL LAW NO. (13) OF 2006 TO AMEND CERTAIN PROVISIONS OF

FEDERAL LAW NO. (18) OF 1981 APROPOS THE REGULATION OF

COMMERCIAL AGENCIES

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the Constitution,

Federal Law No. (1) of 1972 concerning the capacities of Ministries and the powers of

Ministers and the laws in amendment thereof;

Federal Law No. (18) of 1981 concerning the regulation of commercial agencies and the

laws in amendment thereof;

Commercial Transactions Law issued by Federal Law No. (18) of 1993;

Upon presentation by the Minister of Economy, the assent of the Cabinet and the

ratification by the Supreme Council of the Federation;

Have promulgated the following Law:

Article (1)

The provisions of Articles Nos. (8), (9) and (23) of the said Federal Law No. (18) of

1981 shall be replaced by the following provisions:

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Article (8):

"A principal may not terminate the agency contract unless there were a reason justifying

such termination. Neither shall an agency be re-entered in the Commercial Agents

Register in the name of another agent except after the expiry of same without renewal in

accordance with the consent of both parties, or upon abrogation of same by mutual

agreement or the issuance of a conclusive court verdict terminating same.

A time-limited commercial agency shall be deemed as terminated on the date of its

expiry, unless otherwise both parties agree to extend enforceability thereof within one

(1) year prior to such termination".

Article (9):

"If termination of an agency will prejudice either party, the injured party may claim

indemnification for the damages sustained".

Article (23):

"Goods, products, manufactured goods, materials or other assets subject matter of any

commercial agency entered in the Ministry may not be brought in under the name of

another with the intent of trading through channels other than the agent. Customs

departments may not release such materials imported through channels other than the

agent except with the approval of the Ministry or the Agent. Customs departments and

the competent authorities, each within its jurisdiction, at the agent's request to the

Ministry, must impound such imports and deposit same in the ports warehouses or the

importer's warehouses until the dispute is settled, with the exclusion of the materials

whose trading is licensed by virtue of the Cabinet's resolution. The Ministry shall strike

the commercial agencies pertaining to such materials off the Commercial Agencies

Register".

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Article (2):

"Shall be scrapped Articles (27) and (28) of said Federal Law No. (18) of 1981 and

amendments thereof".

Article (3):

Any provision in contravention or contradiction with the provisions of this Law shall be

repealed.

Article (4):

This Law shall be published in the Gazette and shall be effective as of date of

promulgation.

/ Signed /

Khalifa Bin Zayed Al Nahyan

President, United Arab Emirates

Promulgated by us in the Presidential Palace in Abu Dhabi:

On : 7/5/1427 A.H.

Corresp. to : 3/6/2006

(Jn.06/5672)