Law No. (1) of 2001
Establishing the
Ports, Customs, and
Free Zone Corporation[1]
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We, Maktoum bin Rashid Al
Maktoum, Ruler of Dubai,
After
perusal of:
Law
No. (4) of 1979 Concerning the Jebel Ali Port;
Decree
No. (1) of 1989 Establishing the Jebel Ali Port Corporation;
Decree
No. (3) of 1990 Concerning the Jebel Ali Port Corporation;
Decree
No. (1) of 1990 Establishing the Port Rashid Authority;
Decree
No. (4) of 1991 Concerning the Port Rashid Authority;
Decree
No. (5) of 1991 Amending Decree No. (1) of 1990 Establishing the Port Rashid
Authority;
The
Customs Law of 1966;
Law
No. (4) of 1998 Concerning Customs;
Law
No. (1) of 1980 Establishing the Jebel Ali Free Zone;
Decree
No. (1) of 1985 Establishing the Jebel Ali Free Zone Authority;
Law
No. (2) of 1986 Concerning Business Activities in the Jebel Ali Free Zone; and
Law
No. (1) of 1995 Establishing the Financial Audit Directorate and its
amendments,
Do hereby issue this Law.
This
Law will be cited as “Law No. (1) of 2001 Establishing the Ports, Customs, and
Free Zone Corporation”.
The
following words and expressions, wherever mentioned in this Law, will have the
meaning indicated opposite each of them unless the context implies otherwise:
|
Ruler: |
His Highness the Ruler of Dubai. |
|
Government: |
The Government of Dubai. |
|
Ports: |
The Jebel Ali Port, Port Rashid, and Al Hamriya Port. |
|
Free Zone: |
The Jebel Ali Free Zone. |
|
Department: |
The Customs Department. |
|
PCFC: |
The Ports, Customs, and Free Zone Corporation. |
|
Chairman: |
The chairman of the PCFC. |
|
Authorities: |
The Dubai Ports Authority and the Free Zone Authority. |
|
Affiliates: |
The Authorities and the companies owned by them, and the Department. |
|
Subsidiaries: |
The companies owned by the PCFC or by the Authorities. |
|
Board of Directors: |
The board of directors of the PCFC. |
A
public corporation named the “Ports, Customs, and Free Zone Corporation” is
hereby established and will have legal personality and financial and
administrative autonomy. The PCFC may sue and be sued in its own name, and may,
for this purpose, appoint any person to represent it in the judicial
proceedings in which the PCFC or its Affiliates are involved. The PCFC will be
managed on commercial basis.
The Department, and the Authorities and their
Subsidiaries, are hereby affiliated to the PCFC.
The
PCFC will supervise the work of the Department, the Authorities, and the Subsidiaries;
and will in particular:
1.
supervise and audit the Affiliates, and coordinate
amongst them;
2.
develop the work plans and
programmes of the PCFC and the Affiliates;
3.
prepare the draft budgets of
the PCFC and the Affiliates, and obtain the Ruler's approval on the same;
4.
draft the administrative and financial regulations
of the PCFC and the Affiliates, and obtain the Chairman’s approval on the same;
5.
subject to the approval of the
Chairman, establish companies solely or with other persons and own shares in
any other company;
6.
extend loans to the Affiliates or provide security
for the loans they conclude;
7.
obtain loans from banks, from
the Government, or from public financial institutions; and
8.
approve purchase contracts,
tenders, and projects of the Affiliates.
The
PCFC may invest its assets, to the extent that this does not prejudice the
achievement of its main objectives, in any commercial, financial, or services
activities as the Board of Directors deems appropriate to increase these assets
and generate profits for the PCFC.
The
financial resources of the PCFC will consist of the funds allocated to it by
the Government, the net profits of the Authorities and the Subsidiaries paid to
it, and any other revenue generated from its activities or from the work it
performs for the account of third parties.
The
revenue of the Department, including the customs duties, proceeds, and other
amounts collected pursuant to the above-mentioned Customs Law of 1966 and Law
No. (4) of 1998 Concerning Customs, will not be considered part of the revenue
of the PCFC. These amounts will be paid directly to the Government. The
Government will be solely responsible for payment of the salaries of Department
employees and for Department expenditure.
The
Chairman will be appointed pursuant to a decree issued by the Ruler.
The
Board of Directors will manage the PCFC under the supervision and control of
the Chairman. The Chairman will issue a regulation determining the method of
formation of the Board of Directors, its tenure, and the procedures for its
meetings and for passing its resolutions.
The
Board of Directors and the chief executive officer of the PCFC will be
appointed pursuant to a resolution issued by the Chairman.
The
Board of Directors will be chaired by the chief executive officer of the PCFC
who will be in charge of the executive management of the PCFC and the
administration of its affairs in accordance with the bylaws and regulations of
the PCFC and the resolutions of the Board of Directors. The chief executive
officer will represent the PCFC in its dealings with third parties and before
judicial authorities, and will provide the Chairman, upon his request, with all
information related to the PCFC and the Affiliates.
The
Chairman or the Board of Directors may delegate any of their functions to the
chief executive officer
of the PCFC.
The
PCFC property is considered public property.
Subject
to the functions and powers of the PCFC under this Law, the following will
apply:
1.
The Department and each of the Authorities and
Subsidiaries will retain their legal personality and will perform their work in
accordance with the laws and regulations applicable to them, to the extent that
these laws and regulations do not contradict the provisions of this Law.
2.
Subject to the approval of the Chairman, each of
the Authorities may change its legal form to any of the forms of commercial
companies, and the PCFC may establish a holding company to control the
Subsidiaries.
The
net profits of the PCFC, the Authorities, and the Subsidiaries will be paid to
the Government after deduction of the general reserve amount determined by the
Board of Directors.
The
PCFC and the Affiliates will be exempt from all types of taxes, company
registration fees, and customs duties on all imports that are required for
their operations and for the achievement of their objectives.
The
Financial Audit Directorate will audit the accounts of the PCFC and the
Affiliates in accordance with the above-mentioned Law No. (1) of 1995
Establishing the Financial Audit Directorate.
The
Government will not be liable for the debts or obligations of the PCFC or the
Affiliates. The PCFC will not be liable for the debts or obligations of the
Subsidiaries.
This
Law will be published in the Official Gazette and will come into force on the
day on which it is published.
Maktoum bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 1 April
2001
Corresponding to 7
Muharram 1422 A.H.
©2017 The Supreme
Legislation Committee in the Emirate of Dubai
[1]Every effort
has been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application, reference
must be made to the original Arabic text. In case of conflict, the Arabic text
will prevail.