UAE FEDERAL CUSTOMS AUTHORITY (FCA) ROLE

UNCLAS SECTION 01 OF 02 ABU DHABI 000743

SENSITIVE
SIPDIS

STATE FOR NEA/ARP AND ISN/CPI

E.O. 12958: N/A
TAGS: ECON ETRD KIPR PGOV PTER AE
SUBJECT: UAE FEDERAL CUSTOMS AUTHORITY (FCA) ROLE

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1. (SBU) SUMMARY: Each UAE emirate has its own customs body and
regulations. In 2003, the UAEG created the Federal Customs
Authority (FCA) to unify UAE customs policies and regulations.
Since its establishment, the FCA has improved coordination among
local customs agencies, represented the UAE at regional and
international events, and signed cooperation agreements with foreign
countries. The FCA has prepared a strategic plan for 2008-2010,
focusing on developing UAE customs. However, despite the FCA's
successes and efforts, each emirate still maintains significant
independence in customs policy and enforcement. End Summary.

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FCA PURPOSE
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2. (SBU) With the establishment of the GCC Customs Union in 2003,
the UAE created the Federal Customs Authority (FCA) to unify UAE
customs policies (Law No. 1 of 2003). The FCA is managed by a
council chaired by the Finance Minister, with members of local
customs departments' undersecretaries, and representatives from the
Ministries of Finance and Economy. The council's decisions are
implemented by the FCA's Director General, Mohammed Al Mehairi,
whose position is equivalent to an undersecretary.


3. (SBU) FCA Information Director, Ameera Al-Sirkal told
EconAssistant that the FCA is the UAE's customs policy maker and
supervises local customs departments' regulations. According to
Articles 4 and 5 of Law No. 1/2003, the FCA is responsible for
establishing customs policies in cooperation with local customs
departments. It is also responsible for unifying and supervising
customs implementation, and protecting the country from commercial
fraud and smuggling in cooperation with the concerned entities. The
law authorizes the FCA to draft and supervise customs regulations
and laws, suggest customs tariffs, maintain UAE customs data,
supervise and inspect customs tariffs and enforcement procedures,
unify customs documents and data, conduct training and development,
represent the UAE at international, regional and Arab customs
events; and implement GCC Customs Union requirements; and any other
tasks to be decided by the Cabinet. Article 6 of the law
stipulates, "Without prejudice to the customs departments rights in
customs tariffs collection, FCA (shall) draft and implement a
central customs tariffs collection mechanism with GCC countries."

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ACHEIVEMENTS
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4. (SBU) Five years after its creation, the FCA has achieved a
number of key objectives. Representing the UAE in the GCC Customs
Committee and GCC Customs Clearance Committee, the FCA supported
efforts to eliminate obstacles to GCC Customs Union implementation.
In April 2009, the FCA proposed new regulations on the protection of
intellectual property rights, including changes to the GCC Customs
Law, and announced its intention to include similar provisions in
any bilateral agreements for customs cooperation with other
countries. It has participated in UAE national committees,
including those related to combating Weapons of Mass Destruction,
anti-money laundering and financing terrorism, and consumer
protection. It has contributed in the formation of Consumer
Protection and Export Control laws. The FCA launched an electronic
scheme to connect all UAE customs departments and established a unit
in Dubai to study customs barriers. In June 2009, the FCA released
the first-ever UAE comprehensive map of land, air and sea customs
checkpoints.


5. (SBU) The FCA has signed an agreement with Pakistan on mutual
assistance and cooperation on customs issues including prevention of
customs violations, information exchange, combating illegal trade,
and cooperation in technical assistance. It has signed other
administrative and technical support agreements with Algeria,
Tunisia, and Turkey. There are other agreements under discussion
with the United States (DHS),UK, Japan, India, Morocco, Armenia,
and Argentina.

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STRATEGIC PLANNING
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6. (SBU) The FCA has prepared a strategic plan for 2008-2010 focused
on developing UAE customs. Key goals include: 1) Building FCA
capacity to assure customs and administrative performance quality;
2) Unifying and developing UAE customs and inspection procedures; 3)
Ensuring the implementation of local, regional and international
customs obligations; and 4) Promoting the role of UAE customs as a
local, regional and international leader.


7. (SBU) COMMENT: Although unification of UAE customs policy is one
of the FCA's main goals, in practice, Emirate-level customs
departments still enjoy significant sovereignty over customs

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policies and implementation. There are cases where local customs
agencies independently changed customs tariffs: Ras Al Khaimah cut
bilateral tariffs twice in 2004 and 2005. As each emirate is
responsible for enforcement, the FCA can only push policy changes
that demand better IPR enforcement, inspection requirements and
internationally required oversight. FCA officials struggle with
interagency coordination issues, and have requested USG advice on
improving oversight and coordination. It remains unclear if there
is broader support - particularly at higher levels - for
strengthening the role of the FCA. End Comment.
GREENE