Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, issued Law No. (3) of 2020 on the Dubai Multi Commodities Centre (DMCC) on Sunday. Established pursuant to Decision No. (4) Of 2002, DMCC is dedicated to improve the flow of commodity trade via Dubai.
The new law’s provision are applicable to the Dubai Multi Commodities Centre both as a Free Zone and an Authority since it is a public authority by law with financial and administrative freedom. It has the legal capacity to supervise business and transactions to accomplish its objectives. The Dubai Multi Commodities Centre will be attached to the Investment Corporation of Dubai as per the new law.
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Compatible to the law, the Dubai Multi Commodities Centre Authority will be responsible for directing DMCC. The authority is responsible for creating, developing and managing the infrastructure of DMCC, developing the rules and regulations required for DMCC to achieve its objectives; supervising activities in the Centre, giving licenses for companies seeking to function in the Centre; and observing and supervising construction within the Centre.
The new Law goes through the organisational structure of DMCC Authority and specifies the authorities and procedures to construct the Board and executive body of the DMCC Authority.
As per the new law, any company registered to function within DMCC is strictly not allowed to practice any activity other than what is mentioned in their registration permit, or any activity that is against public order and norms.
The new Law conducts 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 all their correspondence, contracts, advertisements, invoices and stationery. Without getting prior written permission from DMCC Authority DMCC companies cannot transfer their license to any third party.
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