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The laws regulation of Boycott are a serious issue, that can result
in criminal and civil penalties in the event of violations and also
it may used, should the client or employer discover after
contracting that the provisions of the Law are not fulfilled or the
successful tenderer fails in the obligations of the Boycott rules
and regulation will cancel the contract and forfeited performance
Bond.
The laws
regulation of Boycott are a serious issue, that can result in
criminal and civil penalties in the event of violations and also it
may used, should the client or employer discover after contracting
that the provisions of the Law are not fulfilled or the successful
tenderer fails in the obligations of the Boycott rules and
regulation will cancel the contract and forfeited performance
Bond.
The Arab
Countries established the central Boycott office in 1951 in
Damascus in response to the Israeli occupation of Palestine in 1948
in the primary aspects of the boycott prohibits the importation of
Israeli-origin goods and services in to boycotting countries, the
secondary an tertiary aspects of the boycott discriminate against
US and other foreign firms that do business with both Israel and
boycotting countries. Arab League members include the PLO and the
following states: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq,
Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar,
Saudi Arabia, Somalia, Sudan, Syria, Tunisia, the UAE and Yemen).
The secondary aspect prohibits any entity in Arab League states
from engaging in business with US or other foreign firms that
contribute to Israel's military or Economic development. Such firms
are placed on a blacklist maintained by the Damascus-based central
Boycott office (CBO), a specialized bureau of the boycott prohibits
business dealing with US and other firms that do business with
blacklisted companies.
The CBO
uses a variety of means to determine compliance with the boycott,
including analyzing information obtained through questionnaires
sent out to third-country individuals and firms. If the CBO
suspects that a firm has engaged in proscribed activities, it may
recommend that the Israel Boycott offices of the member states add
the firm to the blacklist. Boycott offices to meet in Damascus
twice a year to consider adding foreign firms to (or removing
foreign firms from) the blacklist.
My
understanding and interpretation of Article 21.1 of the condition
of contract is based in literal meaning of the words of this
article “the contractor shall observe and abide by all rules and
regulations concerning the boycotting of Israel in Dubai and
UAE”.
The words
of the above mentioned article are absolute words and based on the
fundamental principle in construing words “the absolute shall take
effect as such, unless there is proof of its restriction express or
implied” section 262 of UAE civil transaction law.
In the
Light of the above principle and in accordance to the UAE federal
Law no 15 of 1972,concering boycotting of Israel, the contractor or
the tenderer must not be residing in Israel, or hold its
nationality or be one of its agents or working for its benefit. He
must not possess any branch or assembly factory in Israel. Neither
he nor his agents must be involved in any dealing with firms the
right or privilege to use his name, and not be a partner in Israeli
companies, factories or establishments.
The
tenderer must declare that he will refrain from taking any action
contrary to the terms laid down in the preceding paragraph. He must
also declare that he will abstain from dealing with foreign
companies, which are proved to have been marketing Israel’s
products, that he will not distribute the same and that he will not
participate in any matter intended to consolidate Israel’s economy
or supply Israel with anything which any serve its military
efforts.
The UAE
Federal Law no 15 of 1972 is still applicable and the boycott
office in the Ministry of Economy and commerce is still exist and
enforcing practically level, whereas level two, secondary and level
three tertiary legally to certain extent of our practically, which
directly effect the US exports to the Arab world.
1.Primary prohibits direct trade between Israel legal and
natural person with Arab League members.
2.Secondary directed to companies that make business with Israel
and such companies are placed in a blacklist maintained by the
Damascus-basse central Boycott office (CBO).
3.Tertiary means blacklisting of companies that trade with other
companies that make business in Israel.
In
September 1994,the GCC countries issued a statement on the
cancellation of the secondary/Tertiary level of Arab Boycott.
Upon our
information (not confirmed by official sources such official
Gazette), the UAE cabinet had cancelled level 2 and 3 0n 1995.
On July
2001,a meeting held in Damascus, has called for with the aim of
preventing dealing with Israel.
The effect
of Resolution difficult to predict, our understanding to that
resolution is a complete revival of the boycott at least for the
Arab countries were attending that conference and UAE was among of
them.
Therefore
the US Treasury Department is still designated UAE as boycotting
states based on what they call in USA anti-boycott laws.
The first
anti boycott law is the export administration act (EAA) the other
law is part of the tax reform act 1976(TRA).
The UAE
Federal Law no 15 of the 1972 contains 14 articles and including
three levels of boycott.
In
addition to the above, law prescribe the penalties for the
violation of the UAE boycott law. These penalties can include:
Imprisonment not less than 3 years up to 10 years.
Fine not
exceed BHD7000.
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