The Jebel Ali Free Zone Rules 2023 (Ninth Edition)

Free Zone Rules of 2023 · JAFZA · in force

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§Preamble

THE JEBEL ALI FREE ZONE RULES 2023

Ninth EDITION

First Edition January 1999

Second Edition February 2000

Third Edition September 2001

Fourth Edition September 2005

Fifth Edition September 2014

Sixth Edition January 2016

Seventh Edition September 2017

Eight Edition January 2020

Ninth Edition March 2023

printed and published by:

© Jafza/JEBEL ALI FREE ZONE AUTHORITY

P.O. Box 16888, Jebel Ali, Dubai, United Arab Emirates

Telephone No. 800 - JAFZA (52392) Fax No. 04 881 0128

ALL RIGHTS RESERVED

THE JEBEL ALI FREE ZONE RULES

TABLE OF CONTENTS

SECTION A INTRODUCTION PAGE No.

1. Introductory note by the Chairman of Jafza

2. Definitions

3. Introduction to the Free Zone

4. Powers of Jafza

5. Availability of these Free Zone Rules SECTION B SUBSTANTIVE RULES FOR OPERATING IN

THE FREE ZONE

6. General Requirements

7. Free Zone Licence

8. Free Zone Lease

8. 1 Lease

8. 2 Sub-Lease

9. Building and Operation Control

9. 1 Premises

9. 2 Power supply for built on leased land

10. Insurance

10. 1 Insurance of buildings

10. 2 Employee insurance

11. Employee Affairs

11. 1 Sponsorship

11. 2 General rules

11. 3 Employing non-Sponsored Employees

11. 4 Passes for working in and visiting the Free Zone

11. 5 Employment

11. 6 Passports

11. 7 Wage Protection System (WPS)

11. 8 Rules governing termination of the Employment Agreement

11. 9 Implementing termination and disciplinary measures

11. 10 Resolving labour disputes

11. 11 Absconding Employee

11. 12 Compensation for Industrial Accidents and Occupational

Diseases

12. Inspection of Customer’s Premises

12. 1 General

12. 2 Types of Free Zone inspection

12. 3 Areas of Free Zone inspection

12. 4 Operations/materials/equipments inspection

12. 5 Accommodation inspection

12. 6 Office building inspection

12. 7 Certain restrictions

13. Products

13. 1 General

13. 2 Marketing products in the United Arab Emirates

13. 3 Customs

14. Violation of Free Zone Rules

14. 1 General

14. 2 Activity violation

14. 3 Employment violation

14. 4 Construction violation

14. 5 Operation fitness violation

14. 6 Accident reporting

14. 7 Accommodation

14. 8 Environment, Health and Safety

14. 9 Unauthorised entry

14. 10 Customer violations SECTION C PROCEDURES FOR OPERATING IN THE

FREE ZONE

15. Health, Safety, Environment and Fire

15. 1 General

15. 2 Reporting of accidents or serious illnesses

15. 3 Collection of domestic waste

15. 4 Domestic sewage

15. 5 Industrial waste

15. 6 Disposal of hazardous waste

15. 7 Use of containers

15. 8 Public health levy

15. 9 Fire protection, fire prevention and fire/emergency control

16. Traffic Affairs

16. 1 General

16. 2 Vehicles owned by Customers

16. 3 Cars for Employees

17. Staff Accommodation

17. 1 General

17. 2 Occupancy of rooms

17. 3 Cooking in rooms

17. 4 Accommodation outside the Free Zone

18. Security

19. Termination of Lease and Licence SECTION D TARIFF

20. Jafza/Jebel Ali Free Zone Tariff

SECTION A INTRODUCTION

1. INTRODUCTORY NOTE BY THE CHAIRMAN OF JAFZA

This is the revised ninth edition of the Free Zone Rules, which hereby repeals the eighth edition of 2020. This Ninth edition is a revised edition and has been redrafted with the following, amongst other, objectives:

(a) to update the Free Zone Rules to reflect the prevailing rules and procedures;

(b) to bring conceptual, legal and procedural clarity; and

(c) to re-arrange the Free Zone Rules in order to have the substantive rules (Section B) separate from

the procedural requirements (Section C).

These Free Zone Rules set out guidelines and requirements for establishing and operating entities in the Free Zone (except for an entity set up in the offshore jurisdiction of the Free Zone).

These Free Zone Rules are also available in electronic format on the Free Zone website: www.jafza.ae

SULTAN AHMED BIN SULAYEM Chairman Ports, Customs and Free Zones Corporation

2. DEFINITIONS

In these Free Zone Rules the following capitalised terms shall have the meaning ascribed to them below:

Capitalised Term Meaning

Air Fare the cost of a one way airfare to an Employee’s country of nationality

at the published rate of International Air Transport Association. Branch A Branch, which is branch of Parent Company, registered in accordance with the regulations promulgated by Jafza.

Building Permit a permit issued by CED approving a Customer’s proposed building

construction.

CED the department of civil engineering under Trakhees.

Customer an entity, be it an FZE, FZCO, a branch of a company, or a form of an entity permitted to be incorporated by Jafza, registered in the Free

Zone, but excluding an entity incorporated in the offshore jurisdiction of the Free Zone.

Completion a ‘Building Completion Certificate’ issued by CED, which confirms Certificate that a Customer’s building, construction or modification has been

completed in accordance with the applicable rules, regulations and requirements.

Security Department The relevant entity(ies) / department(s) responsible for security

related affairs within the Free Zone.

EHS the department of Environment, Health and Safety under Trakhees

PCFC.

Employee a person permitted to work in the Free Zone and/or for a Customer in

accordance with these Rules, including a Sponsored Employee. Employment an employment agreement in the form and substance prescribed by Agreement Jafza stipulating the conditions of employment, to be entered into

between a Customer and its Employee which must be for a limited term in accordance to the provisions of the UAE Federal Decree Law No. 33 of 2021. Other specific types of agreements prescribed by Jafza including employment agreements for a GCC national and employment agreements for a non-sponsored individual.

Fitness Certificate an ‘Operation Fitness Certificate’, which confirms that a Customer’s

operations are approved by EHS, in accordance with the requirements laid down by Trakhees PCFC.

Fitness Inspection an operation fitness inspection carried out by CED / EHS for issuance, amendment and renewal of a Fitness Certificate.

Free Zone the Jebel Ali Free Zone, established pursuant to Ordinance No. 1 of 1980 promulgated by H.H. Sheikh Rashid Bin Saeed Al Maktoum, Ruler of Dubai, or any other Free Zone owned or administratively

controlled by the Jebel Ali Free Zone or Jafza.

Free Zone Rules these Free Zone rules, as may be amended.

FZCO a free zone company, which is a limited liability company with two or more shareholders, incorporated in accordance with the regulations

promulgated by Jafza.

FZE a free zone establishment, which is a limited liability company with

one shareholder, incorporated in accordance with the regulations promulgated by Jafza.

GCC Countries the countries that are members of the Gulf Cooperation Council.

Industrial Accident an accident that results in total or partial, temporary or permanent

disability of the Employee, which occurs at work or while travelling in the course of an Employee’s duties, or going to or coming back from work.

Occupational a disease associated with the Employee's work as specified by the Diseases Dubai Health Authority (DHA).

Jafza the Jebel Ali Free Zone Authority, a body corporate established

under Decree No 1 of 1985 Establishment of The Free Zone Authority In Jebel Ali Port, as amended, including all its departments and functions.

Jafza’s Workforce an insurance scheme adopted by Jafza aimed at securing Protection Employees’ rights in the Free Zone whereby, Customers will be Programme required to enroll in as per the procedures, and requirements of this

Programme approved by Jafza, and subject to the prescribed premium.

Lease a lease of Premises by Jafza to its Customer, or a sub-lease from a

Customer to another Customer, in accordance with these Free Zone Rules. A Customer leasing Premises shall be referred to as a “Lessee” and the grantor of a Lease shall be referred to as a “Lessor”.

Licence a licence granted by Jafza to a Customer to carry out business

activities in the Free Zone.

LIU light industrial unit.

PCFC the ‘Ports, Customs and Free Zone Corporation’, a public corporation

established by Law No. (1) of 2001.

Portal Jafza E-services.

Premises the premises in the Free Zone as detailed in Rule 9.1, available on

Lease.

PSA a personnel secondment agreement that the Customer enters into

with Jafza, which prescribes the conditions under which Jafza acts as a sponsor for a Customer’s Employee.

Sponsored an employee of a Customer who is sponsored by Jafza pursuant to a Employee(s) PSA.

Tariff the tariff determined by Jafza contained in Section D of these Free

Zone Rules, as amended.

Trakhees an authority established by PCFC, under the Department of Planning

and Development, Government of Dubai, which has the divisions of CED and EHS.

WPS the ‘Wage Protection System’, a system providing for electronic

salary transfer, as developed by the Central Bank of United Arab Emirates, and maintained by the UAE Ministry of Human Resources & Emiratisation.

3. INTRODUCTION TO THE FREE ZONE

The Free Zone was established in 1980 with the key objective of encouraging companies to benefit from various attractive incentives that the Free Zone offers, such as:

(a) zero tax regime in force;

(b) no limit on foreign ownership of companies;

(c) no requirement for a United Arab Emirates national as a local partner / shareholder; and

(d) freedom to employ whoever, as per the authorities concerned, with the Free Zone acting as nominal

sponsor for residency purpose.

In order to incorporate an entity in the Free Zone, a Customer requires, amongst other things, a Licence issued by Jafza appropriate for the intended business activities in the Free Zone, as well as a Lease for Premises suitable for the nature and scope of its operations. Jafza provides a variety of Premises for Lease for various purposes.

The Free Zone has ready built facilities, such as warehouses, light industrial units, showrooms, offices, workstation, on-site residence, food outlets and retail stores available for leasing to its Customer. A Customer wishing to construct facilities to its own specification and design can do so by leasing a Plot of prepared land of the required area.Operation in the Free Zone is subject to the rules and regulations promulgated by Jafza, including these Free Zone Rules, as well as the prevailing procedures and practices of Jafza.

Service providers for telecommunications services, electric works, water works and postal services are present in Jafza, and they offer a wide range of services to Customers, be it at the time of a Customer’s incorporation or thereafter, such as obtaining phone lines, water and power connections and a post office box number.

4. POWERS OF JAFZA

Jafza is the regulatory authority charged with the supervision of the Free Zone, and its responsibilities, as laid down in Decree No 1. of 1985 “Establishment of The Free Zone Authority In Jebel Ali Port”, as amended, include, to develop the infrastructure of the Free Zone and to issue rules and regulations, to regulate Customers and their activities in the Free Zone, and in doing so to issue Licences and to Lease different Premises on short term and long term basis. Jafza may also assist Customers to recruit managers, officers, technicians, professionals and other Employees. Jafza has issued these Free Zone Rules based on the authority granted to it.

Jafza may waive a Rule contained in these Free Zone Rules, for one or more than one Customer, subject to terms and conditions that Jafza may prescribe.

Jafza may issue a notification in relation to any matter provided in these Free Zone Rules.

Jafza may appoint an authorised representative, as it may deem necessary, for the implementation of any part of these Free Zone Rules.

5. AVAILABILITY OF THESE FREE ZONE RULES

These Free Zone Rules are available on Jafza’s website and can also be obtained on request from Jafza. These Free Zone Rules are routinely handed to a Customer on the provisional approval of the Customer’s application and / or at the time of signing a Lease.

SECTION B SUBSTANTIVE RULES FOR OPERATING IN THE FREE ZONE

6. GENERAL REQUIREMENTS

6.1. A person working or operating in the Free Zone, be it a Customer, Employee or a contractor working for a Customer, is required to comply with these Free Zone Rules.

6.2. A Customer shall have a valid Lease and a valid Licence to operate in the Free Zone. A client occupying a Workstation space in a business centre / incubator may be subject to different requirements. In addition, entities incorporated and licensed by other free zones authorities or competent authorities in the United Arab Emirates may lease a premises in the Free Zone subject to a permit issued by Jafza.

6.3. A Customer is required to renew its Lease and Licence within the time frame set by Jafza.

6.4. Payment for services rendered by Jafza is required to be made in advance, according to the established Tariff.

6.5. Movement of goods within the Free Zone shall be by a Customer’s own transport, or by a transportation company registered in the United Arab Emirates.

6.6. United Arab Emirates local decrees, regulations, rules and practices are applicable within the Free Zone, and shall be applied to the Free Zone and its Customers in addition to these Free Zone Rules. Violation of United Arab Emirates local decrees, regulations, rules and practices will be notified to the appropriate authorities.

6.7. Without prejudice to the generality of Rule 6.6 above, a Customer is required to at all times abide by all international treaties entered into by United Arab Emirates as well as all United Arab Emirates federal and local laws, decrees, regulations, rules and practices in relation to intellectual property rights, fair trade, transparency, anti-money laundering and Combatting the Financing of Terrorism as well as any other obligation on the part of the United Arab Emirates. Jafza may take appropriate action, in its own discretion, against a Customer found to be in violation of this Rule.

6.8. Photography inside the Free Zone, including drone activities, is prohibited unless duly permitted in accordance with the applicable laws and legislations.

6.9. Violation of these Free Zone Rules is subject to such procedures and penalties as prescribed in Rule 14 herein.

7. TYPES OF LICENCES

7.1. Licences are categorised by the nature of business activity, as follows:

Licence category Nature of activity Trading Licence To carry out trading activities.

Industrial Licence To carry out manufacturing activities.

Service Licence To carry out services activities.

General Trading Licence To carry out trading activities as per General Trading

terms and conditions Logistic License To carry out third party logistic activities E-Commerce License To carry out buying and selling of goods and services over electronic networks via any electronic means.

National Industrial License To carry out manufacturing activities where at least

51% of the ownership of the Customer is of national(s) of the GCC countries.

Innovation License to carry out development of new products and services

A Licence is valid for operations in the Free Zone. A Customer wishing to operate outside the Free Zone shall do so subject to the applicable laws of the jurisdiction the Customer wishes to operate in.

7.2. To qualify for and retain a Licence, the applicant must satisfy each of the following:

(a) hold a valid registration from either:

(i) the Department of Economic Development in United Arab Emirates;

(ii) the Free Zone; or

(iii) a place of incorporation outside the United Arab Emirates.

(b) hold a valid Lease in the Free Zone. A Customer occupying a Workstation space in a business centre/

incubator may be subject to different requirements;

(c) compliance with Federal and/or Municipal legislation applicable in the Free Zone; and

(d) compliance with all applicable rules, regulations, notices and practices of the Free Zone, including

these Free Zone Rules.

7.3. A Licence is valid for at least one year and is renewable, provided that:

(a) the Customer holds a valid Fitness Certificate for its Premises (except where the Premises are offices

and workstations provided by Jafza);

(b) the Customer commits to submit its balance sheet (financial report) by the end of every financial year, audited by an auditor who is approved by Jafza.

(c) the Customer holds a valid registration or good standing certificate from the place of incorporation;

(d) all dues are paid in full; and

(e) the Customer satisfies any other requirement imposed by Jafza at the time of such renewal.

7.4. The details on a Licence may be amended by the Customer on request and by payment of the published fee as per the Tariff.

7.5. The activity on a Licence may be amended by the Customer by adding new activities or by removing existing licensed activities, on application to Jafza. The decision on the application will be made by Jafza at its discretion.

7.6. A Customer desirous of conducting an additional activity within the scope of a different category of a Licence may require an additional Licence from Jafza or an amendment to the existing License, which shall be granted by Jafza at its discretion.

7.7. A Customer shall not carry out an activity other than the activity appearing on the Customer’s Licence.

8. FREE ZONE LEASE

§8.1 — Lease

8.1.1 Rent for the Premises shall be payable in accordance with the terms and conditions of the Lease

agreement.

8.1.2 A Customer who Leases Premises from Jafza should ensure that the Premises are operational within

the time stipulated below, unless Jafza extends the same in writing:

(a) 60 days for office space;

(b) 90 days for LIU; and

(c) 22 months to complete the building or construction of a Plot.

Once operations commence, the Premises shall be kept in functional order. A Customer must ensure that the leased premises shall be operational at all times and should not be abandoned. It is the responsibility of the Customer to maintain the cleanliness of the premises as well as its general landscape and to keep the Premises in good and substantial repair and condition. Failing to do so to the satisfaction of Jafza, the Customer will be considered in violation to the Rules.

8.1.3 A Lease agreement will be signed between Jafza (and/or its nominated party) and the Customer

containing the terms and conditions of the Lease. The Lease shall commence on the date of the Lease agreement, or on a date specified therein.

§8.2 — Sub-Lease

8.2.1 A Customer who has Leased Premises may sub-Lease the Premises to another Customer, subject to

the written approval of Jafza, issued by Jafza at its discretion. In considering a request to sub-Lease, Jafza will require that all of the following are satisfied:

(a) the Lessor is in possession of a valid Lease for the Premises that is to be sub-Leased;

(b) the Premises to be sub-Leased has an operational and complete building;

(c) the sub-Lessee is either:

(i) a subsidiary of the sub-Lessor, whereby the sub-Lessor holds shares in the sub-

Lessee; or

(ii) an associated company of the sub-Lessor, associated by way of common

shareholding, whereby one or more shareholders hold shares in both the sub-Lessee and the sub-Lessor; or

(iii) (iii) any other party approved by Jafza with specified terms and conditions

(d) the sub-Lessee shall possess a Licence for its activities and shall be carrying on its business

in conformity with the rules and regulations of the Free Zone including these Free Zone Rules, particularly the rules regarding EHS and zoning plan;

(e) the Premises Leased by the sub-Lessor are sufficient and appropriate for the activities of the sub-Lessee, without jeopardizing or in any way creating any hazards for its own operations; and

(f) the sub-Lessor undertakes to be fully responsible for the activities of the sub-Lessee as far as

the terms and conditions of the Lease agreement and the PSA are concerned.

8.2.2 Where Jafza approves a sub-Lease in writing, the Lessor shall be jointly and severally liable and responsible, along with the sub-Lessee, for an act or omission of the sub-Lessee, which act or omission is contrary to law or the rules, regulations and practices of Jafza, or which result in loss, damage, harm, liability or nuisance to a Customer or to Jafza.

8.2.3 If Jafza approves a sub-Lease, the sub-Lessor shall be required to pay an annual fee, as per the Tariff.

8.2.4 The sub-Lease agreement entered between sub-lessor and sub-lessee shall not contradict or override

the Lease agreement entered into between Jafza and the Lessee. The sub-Lease agreement shall be approved by Jafza.

9. BUILDING AND OPERATION CONTROL

§9.1 — Premises

9.1.1 In order to carry out business in the Free Zone, a Customer is required to Lease Premises. The

Premises shall be used for the business objectives of the Customer, for which it has a Licence.

9.1.2 The Premises can be broadly divided into two distinct categories:

(a) Ready built (“Ready Built”): Such Premises are ready built Premises in the Free Zone, for use by the Customer in an as-is-condition or where the Customer may require minor or major modification; and

(b) Prepared plot (“Plot”): Such Premises are prepared plots of land in the Free Zone, which

Jafza can Lease to the Customer, whereupon the Customer can construct a custom made building in accordance with the Customer’s needs and objectives.

9.1.3 Whether a Customer builds on a Plot, modifies a Ready Built Premises, or obtains a Ready Built

Premises in as-is-condition, the Premises allocation and modification has to be approved by Jafza and Trakhees (CED/EHS/fire departments) and the Customer shall ensure that all rules, regulations, requirements, standards, guidelines and procedures of Jafza and of relevant authorities are adhered to, including those of CED/EHS and fire department, during the construction, installation or operational stage. The Customer shall obtain necessary permits and approvals, including a Building Permit, Fitness Inspection, Fitness Certificate and Completion Certificate, as may be necessary. All measures shall be taken by a Customer to conduct its operations in an environmentally clean and safe manner, and to avoid nuisance to other Customers. The Customer shall update itself on the various provisions within the applicable regulations.

§9.2 — Power supply for built on leased land

Application for provision of electrical supply to a Premises shall be submitted to Jafza and should be in

compliance with the regulations to receive a pre-approval. Once the pre-approval is obtained the application may be submitted directly to Dubai Electricity and Water Authority. A Customer requiring an increase in the power supply shall submit a request for approval to Jafza, along with reasons and justification for the increase in consumption, which Jafza shall approve at its discretion.

10. INSURANCE

§10.1 — Insurance of buildings

10.1.1 A Customer is required to have its Premises insured against all risk insurance, including fire and perils.

10.1.2 For Premises erected by a Customer, the Customer shall be responsible for arranging the insurance, which shall be in the joint names of the Customer and Jafza. The policy shall be sufficient to cover clearance and replacement costs of the structure, fixtures and fittings. The policy must be presented and approved by Jafza before the Completion Certificate can be issued.

10.1.3 For Premises erected by Jafza, the insurance will be arranged by Jafza on behalf of the Customer. The insurance shall be in the name of Jafza or its nominee. The Customer shall be required to pay a contribution as determined by Jafza to the insurance premium. This will take the form of an annual standard charge in line with the established Tariff. The master policy will be available for inspection on request from Jafza.

Note: Where damage covered under insurance has incurred to a Ready Built Premises, Jafza requires the Customer to bear a certain minimum deductible charge required to be paid to the insurance company

at the time of a claim. Such amount shall be determined by the insurance company.

10.1.4 Insurance of the contents of a building shall be at the discretion of Customers. Jafza will not be liable for loss or damage to Customers’ possessions, due to any reason, including theft or natural calamities.

10.1.5 A Customer shall obtain the insurance(s) required to be obtained in the Lease agreement.

§10.2 — Employee insurance

10.2.1 Each year a Customer shall take out third party liability insurance (or public liability insurance) and workmen’s compensation insurance for its Employees pursuant to the PSA. In addition, all employees

of the Customers should be insured as per the requirements and regulations of the Health competent authority.

10.2.2 The value of insurance cover required for third party liability is AED 500,000 for up to 19 Employees and AED 1,000,000 for 20 Employees or above. The stated value may be revised by Jafza through

notification. The insurance cover shall be for a single occurrence, and there should be no limit in the policy as to the number of occurrences.

10.2.3 Workmen’s compensation insurance must include cover for injury and disability compensation and related medical expenses, in accordance with Federal Decree Law No. 33 of 2021 regarding the organisation of labour relations (“UAE Labour Law”), as amended, the Cabinet Resolution No. 1 of 2022 (“Executive Regulation”), and these Free Zone Rules.

10.2.4 A Customer shall provide to Jafza a copy of the insurance policy for third party liability and for the workmen’s compensation insurance, as renewed annually. The insurance cover shall be adequate and sufficient. A Customer shall also obtain a certificate from the insurers, addressed to Jafza, stating details of the policy.

11. EMPLOYEE AFFAIRS

§11.1 — Sponsorship

11.1.1 Jafza is authorised to sponsor staff to be engaged to work for a Customer in the Free Zone.

11.1.2 A Customer wishing to take advantage of this sponsorship facility will be required to sign a PSA with Jafza and to have a CIC (Computer Immigration Card) to be able to apply for visas. The PSA shall lay down the conditions under which Jafza will act as sponsor for a Sponsored Employee. A Customer shall not employ Employees exceeding the number approved by Jafza (e.g., according to office area, warehouse, machinery installation, etc.).

11.1.3 In accordance with the PSA, a Customer shall provide a guarantee or any other security approved by Jafza, to Jafza in respect of each Sponsored Employee. Primarily, a Customer is required to apply for Jafza’s Workforce Protection Programme. In cases where a Customer is ineligible to be part of the Jafza’s Workforce Protection Programme, or in default to any of the requirements, as per Jafza’s discretion, then the Customer will be required to submit a guarantee with Jafza, where a single guarantee to cover the anticipated total number of Sponsored Employees may be lodged with Jafza. Such bank guarantee shall be in line with the standard format approved by Jafza. A Customer has the option to pay a cash guarantee in lieu of the bank guarantee. The Customer must abide by any other forms of security as adopted by Jafza from time to time.

11.1.4 Where a Customer is under the requirement of a guarantee, that guarantee is applicable for all Sponsored Employees regardless of their grade and position (waivers can be granted by Jafza in relation to certain personnel in control of a Customer as per Jafza’s discretion. The guarantee shall be equal to or higher than one and half month’s basic salary plus a one way Air Fare from Dubai to the Employee’s home country. The applicable Air Fare figure can be provided by Jafza for the purpose of this calculation. If the Customer provides a bank guarantee, it must be issued from a bank operating in the United Arab Emirates and the amount must be in Arab Emirates Dirhams. The Jafza Workforce Protection Programme / guarantee may be required to be increased / adjusted in value to meet subsequent increases in salary or Air Fare. In the event of withdrawal of the bank guarantee or the security or refund of the cash guarantee held with Jafza for the Sponsored Employees at any point of time, the Customer shall settle any outstanding amounts owed to Jafza, its affiliated entities and insurers. If a record of an absconding Employee of the Customer still exists (in United Arab Emirates), an Air Fare for each absconding Employee shall be deducted from the guarantee. Jafza shall always have the right to encash / release the guarantee for the purpose of covering any unpaid labour dues to the Sponsored Employee(s).

11.1.5 Jafza will act as a sponsor to obtain entry permits and residence visas for Employees:

(a) recruited by a Customer; or

(b) engaged by Jafza on behalf of a Customer.

11.1.6 A Customer wishing to employ staff, other than a national of a GCC country, who is to be a Sponsored Employee, is required to apply for entry permit, in the first instance.

11.1.7 Jafza may provide some investors with an investor’s visa / long-term investor’s visa subject to the prevailing regulations and policies of the relevant authorities.

11.1.8 A Sponsored Employee is only allowed to work in the Free Zone. However there may be occasions when a Customer requires a Sponsored Employee to work temporarily outside the Free Zone on a

temporary basis (e.g. installation, repair, or maintenance of specialist equipment) in which case Jafza’s prior approval is required.

11.1.9 A Sponsored Employee is only allowed to work with the Customer the Sponsored Employee is seconded to, or to the affiliated company(ies) / parent company / sister company(ies) of the Customer subject to Jafza’s prior approval and requirements. Under no circumstances shall a Sponsored Employee work for a Customer other than a Customer to whom the Sponsored Employee is seconded, be it during free time or holidays. A Customer shall not recruit, employ or make use of an Employee employed under an Employment Agreement by another Customer without obtaining Jafza’s prior approval.

11.1.10 Upon termination / expiry of the employment relationship between a Sponsored Employee and a

Customer, Jafza will no more act as a sponsor to such Employee and the Visa will be cancelled accordingly.

11.1.11 All entry permits (visit, transit, employment) need to be applied for cancellation when Jafza ceases to

sponsor a Sponsored Employee, or when the purpose of such permit is satisfied, whichever earlier.

§11.2 — General rules

11.2.1 A Customer shall execute an Employment Agreement with every Employee that it employs.

11.2.2 A Customer shall be responsible at all times for all matters pertaining to its employees from the first date of employment untill the relevant employees depart the country following the visa cancellation.

11.2.3 An Employee authorised to apply for entry permits for entry into the Free Zone and other administrative correspondence in connection with the Customer’s operations, shall record its name on a “Certificate of Authorisation” and such certificate shall be lodged with Jafza.

11.2.4 Working hours for Employees will be a maximum of 8 hours per day, plus a 1-hour meal break, 6 days per week, or a total of 48 hours per week, unless a lesser maximum is prescribed in the Employment Agreement.

11.2.5 During the Holy Month of Ramadan, the usual working hours shall be reduced by 2 hours per day, and this will apply to all Employees of a Customer, regardless of the Employee’s religion. Hours worked in addition to the hours agreed in the Employment Agreement shall be deemed overtime and paid accordingly.

11.2.6 Overtime shall be paid at the rate of 125% of the basic hourly rate, whereas overtime worked between the hours of 10:00 pm and 4:00 am shall be paid at the rate of 150% of the basic hourly rate, and overtime worked on Public Holidays or on the weekly rest day shall be paid at the normal hourly rate in addition to 50% of the basic hourly rate.

11.2.7 Public holidays for Employees of a Customer will be in line with the public holidays announced by the United Arab Emirates Government for employees of the private sector as and when declared.

11.2.8 Shift working to be duly submitted to Jafza for approval in advance and include details of number of shifts, hours and numbers to be employed per shift, otherwise the necessary increase in staff to be employed may not be approved on the grounds that the space available is inadequate.

11.2.9 A Customer shall immediately notify and duly register with Jafza any mutually agreed amendment to an Employment Agreement, including any change occurring to the salary of the employee from time to time.

11.2.10 Any aspect of the employment relationship that is not regulated in the Free Zone Rules shall be

subject to the terms contained within the Federal Decree Law No. 33 of 2021.

§11.3 — Employing non-Sponsored Employees

A Customer may employ a person who is not a Sponsored Employee provided that certain conditions are

fulfilled. Such employment is permitted for the following persons:

(a) a GCC national;

(b) a person sponsored by a relative or by an educational institute (provided that the specific employment

contract for such person, available at Jafza, is signed);

(c) a person employed by a parent company registered in the United Arab Emirates;

(d) a person who is sponsored by a company which falls within the same group company as the Customer;

(e) a person residing in the UAE under self-sponsorship including but not limited to holders of Golden Visas and Green Visas; or

(f) a person employed on a part-time basis by a UAE based employer

A Customer wishing to employ anyone in the above categories must seek prior written approval from Jafza. Approved non-sponsored staff must acquire the appropriate identity card or access pass from Jafza for entry into and out of the Free Zone. A Customer requiring temporary manpower should approach the manpower companies approved by the competent Authorities and listed in Jafza.

§11.4 — Passes for working in and visiting the Free Zone

11.4.1 ID Cards

A Sponsored Employee will be issued a Company Employment Card (“CEC”), which provides a unique identification. The CEC serves as a permit to work in specific areas inside the Free Zone, allows access into the Free Zone and is the source of identification in lieu of the Employee’s passport.

11.4.2 Temporary ID Card

A temporary ID Card will be issued to a non-Sponsored Employee.

11.4.3 Access Passes

Access passes are issued to individuals; including but not limited to legal representatives, associates, agents, dealers, service providers, contractors, Employers and Employees (other than Sponsored Employees), who have been approved to visit/work for Customers. Jafza will issue the access pass upon obtaining the temporary access permit, where applicable.

11.4.4 Day pass

Day passes are issued to visitors to the Free Zone.

11.4.5 Obtaining passes

All types of passes above, with the exception of the day pass, need to be acquired by applying to Jafza. A day pass can be obtained by the Customer providing the details of the intended visitor. In the case of ceasing employment, the Customer must ensure that all passes issued to its Employees are returned to Jafza.

§11.5 — Employment

11.5.1 A Customer recruiting Employees will be responsible to bear the following costs:

(a) processing the entry permit and its requirements;

(b) flight ticket to the UAE;

(c) processing the residence permit (including any transfer of sponsorship charges);

(d) the health insurance;

(e) renewal of residence permit and health insurance including the cost of a medical fitness

certificate; and

(f) CEC/ID Card charges.

11.5.2 A Customer shall not charge the Sponsored Employee or deduct from the Employee’s salary the costs listed in Rule 11.5.1 above.

11.5.3 A Customer and a Sponsored Employee may negotiate the terms and conditions of employment, provided the agreement is not contrary to these Free Zone Rules and is in accordance with the UAE Labour Law.

11.5.4 A Customer shall pay the Employee the equivalent of the minimum monthly basic salary payable, which must be in accordance with the job title, as acceptable to Jafza.

11.5.5 An Employee shall sign the Employment Agreement which shall offer the minimum acceptable conditions of employment as per the UAE Labour Law. Employees who are exempt from entering into an Employment Agreement are required to sign an undertaking to the effect that they shall not make a claim against Jafza in relation to employment matters or against Jafza as a sponsor.

11.5.6 All sponsored employees will not be permitted to work for the Customer unless the employment residency is stamped in the employees' passports. A Customer will receive the entry permit, and shall promptly submit the passport and the Employment Agreement to Jafza for the purposes of stamping the residency visa..

§11.6 — Passports

It is the responsibility of the Customer to hand over the employees’ passports to each Sponsored Employee.

Jafza may inspect the Customer to ascertain that the passport is in the Employee’s custody. An Employee shall present its passport to Jafza on request.

§11.7 — Wage Protection System (WPS)

A Customer shall be registered with the WPS and shall transfer the Employees’ salaries through the WPS to

confirm that all emoluments due have been paid between the 1 st and 15th of every month. A Customer failing to register with the WPS, as required by Jafza, may suffer penalties in accordance with Article 14.3.3 of these Rules.

§11.8 — Rules governing termination of the Employment Agreement

11.8.1 An Employment Agreement may be terminated as follows:

(a) by agreement between the Customer and the Employee;

(b) during the probationary period by the Customer providing a fourteen (14) days' written notice;

(c) during the probationary period by the Employee providing a thirty (30) days' written notice. In

the event of an Employee resignation leading to the Employee's exit from the UAE, the written notice should be reduced to fourteen (14) days;

(d) by the Employee or the Customer in accordance with Article 42 of the UAE Labour Law, as

amended; or

(e) on the expiry of the service period prescribed in the Employment Agreement except where

the Employment Agreement provides for an automatic renewal.

11.8.2 An Employment Agreement shall be deemed automatically terminated in either of the following cases:

(a) if the Employee dies during service; or

(b) illness of, or injury to, the Employee resulting in a total incapacity to work in accordance with

the UAE Labour Law.

11.8.3 An Employee shall be entitled to a period of notice before termination of service as laid down in the Employment Agreement. The minimum notice period stipulated in the Employment Agreement shall be one (1) month. The Employee shall be entitled to full pay during the prescribed notice period. It is for the Customer to decide whether the Employee will be required to render the services contracted for during the notice period or not..

11.8.4 An Employee’s service may be terminated without notice in accordance with, Article 44 of the UAE

Labour Law, as amended.

11.8.5 An Employee may terminate the Employment Agreement without notice in accordance with Article 45 of the UAE Labour Law, as amended.

11.8.6 Termination under Rule 11.8.4 and under Rule 11.8.5 is subject to processing formalities by Jafza.

11.8.7 Dismissing an Employee as a result of such Employee filing a serious complaint against the Customer before JAFZA, or as a result of such Employee filing a court claim that is proven to be correct against the Customer, will be considered as an illegal dismissal and the Customer will have an obligation to compensate the dismissed Employee.

11.8.8 The amount of compensation payable under Rule 11.8.7 above:

(a) shall be verified by Jafza in accordance with the UAE Labour Law; and

(b) shall not exceed three times the total monthly salary (inclusive of allowances).

11.8.9 Where a change occurs in the form or legal status of a Customer, the Employment Agreement that was valid at the time of the change shall remain in force between the Employee and the Customer after its change of legal status and the Employee’s service shall be deemed to be continuous.

11.8.10 If an Employee transfers to another Customer, in accordance with the terms of these Free Zone

Rules, the Employment Agreement with the previous Customer shall have to be terminated and service will not be considered to be continuous, unless otherwise approved by Jafza in writing.

11.8.11 An Employee whose service exceeds one year shall be entitled to a gratuity payment on termination

of service in accordance with the provisions of the LAE Labour Law and the Federal Decree Law No. 47 of 2021 (or a higher payment if the Employment Agreement so specifies).

11.8.12 The gratuity shall be calculated at the basic salary and in accordance with the provisions of the UAE

Labour Law and the Federal Decree Law No. 47 of 2021.

11.8.13 Entitlement to gratuity shall be forfeited if the Employee resigns before completing one year of service.

11.8.14 In case of death during service, the gratuity due will be payable as part of the Employee’s rights and in accordance with Article 15 of the UAE Labour Law, as amended.

11.8.15 On termination of service, (at the expiry of the Employment Agreement or if the Employment

Agreement is terminated by the Customer prior to its expiry), a Customer shall provide Air Fare to the international airport nearest to the Employee’s home. However, Air Fare will not be provided in the case of dismissal under Rule 11.8.4 or where the Employee terminates the employment for reasons other than those stipulated in Rule 11.8.5.

11.8.16 Where an Employee’s contract is renewed , the Employee will be entitled to Air Fare in the event of submitting a resignation or on dismissal, whenever this occurs.

11.8.17 The Employee, on termination of service may request, and the Customer shall provide, free of charge

a “Service Certificate” to show:

(a) period of service;

(b) designation and/or title and work performed; and

11.9. final rate of pay and bonus, if any and if applicable.Implementing termination and disciplinary measures

11.9.1 Jafza is to be notified of any disciplinary action taken against an Employee within 10 days of the action being taken. The following information is to be provided to Jafza:

(a) name and identification number of the Employee;

(b) date of the alleged offence committed by the Employee;

(c) nature of the alleged offence committed by the Employee;

(d) disciplinary action taken by the Customer; and

(e) general manager’s signature on such notification.

11.9.2 Where a Customer wishes to impose sanction(s) on an Employee for performance, conduct or disciplinary matters, the Customer must carry out the following steps in order to invoke sanctions:

(a) the Employee must be notified of the allegations, within 30 days of the matter arising;

(b) the Employee must be provided with an opportunity to state his or her position;

(c) the stated position must be investigated;

(d) all the above should be recorded in the Employee’s personnel file; and

(e) the Employee should be notified in writing of the applicable penalty, the reason for the same

and the action taken against the Employee in case of repetition or continuity of the issue. The penalty may not be imposed after the lapse of 60 days from the date of the disciplinary finding.

11.9.3 On termination of employment, the Customer is required to submit a statement in the prescribed form (copies available from Jafza), of the final dues, giving sufficient details to determine how the final dues have been calculated. This statement shall be signed by the Employee and by an authorised signatory of the Customer. A copy of the signed statement shall be given to the Employee and a further copy is to be presented to Jafza.

11.9.4 At the same time the Customer shall either (i) lodge with Jafza a sum in cash equal to the total of the final dues, or (ii) lodge a receipt evidencing that the Employee has received the final dues. Jafza reserves the right to calculate terminal benefits itself and to require the Customer to provide cash and Air Fare to the departing Employee. In such cases Jafza’s signature shall be deemed to replace the Customer’s authorised signatory.

11.9.5 In cases when the Employment Agreement with a Sponsored Employee is terminated, Jafza shall cancel the Sponsored Employee’s residence permit.

11.9.6 The Customer shall ensure that the Employee’s residence permit, access pass and CEC are cancelled within thirty (30) days of the Employee’s final day of employment.

§11.10 — Resolving labour disputes

In the first instance, Jafza shall attempt to amicably resolve a labour dispute arising between a Customer and an Employee, through Jafza’s concerned labour section. Where a resolution is not reached Jafza shall transfer the matter to the Dubai Courts (by any means adopted in the Free Zone with the Courts including the Virtual Reality Smart Court) if it is requested by one of the parties.

§11.11 — Absconding Employee

An Employee unexplainably absent for a period of more than seven (7) continuous calendar days shall be deemed to be an absconding Employee. In such event:

(a) the Customer shall within seven (7) days of an Employee being deemed to be absconding notify Jafza

in writing of the same; and

(b) Jafza shall upon receiving notification inform the General Directorate of Residency and Foreign

Affairs.

§11.12 — Compensation for Industrial Accidents and Occupational Diseases

11.12.1 An Employee who is the victim of an Industrial Accident or an Occupational Disease will be eligible for financial compensation in accordance with the prevailing laws including but not limited to the UAE

Labour Law.

11.12.2 A Customer shall be responsible for the payment of medical treatment, including but not limited to the hospitalization costs required by an Employee involved in an Industrial Accident or suffering from an

Occupational Disease, in accordance with the UAE Labour Law and its Executive Regulation.

11.12.3 Where an injury prevents an Employee from carrying on work, the Customer shall pay such Employee

a cash allowance equal to the full pay throughout the period of treatment or for a period of six months, whichever is shorter. Where the treatment lasts for more than six months, the allowance shall be reduced by one-half for a further period of six months or until the Employee fully recovers, is declared disabled, or dies.

11.12.4 An Employee shall not be entitled to compensation (be it medical treatment or payment of salary) in

accordance with these Free Zone Rules if enquiries by the competent authority establish that the Employee caused the accident through:

(a) willful neglect;

(b) intentional violation of environment, health and/or safety regulations;

(c) being under the influence of illicit drugs or alcohol;

(d) deliberate misconduct;

(e) self-harm; or

(f) unreasonably refusing medical treatment/check-up as prescribed by a medical board set up to

assess the ability to return to work/disability.

11.12.5 In case of death resulting from an Industrial Accident, compensation will be payable by the Customer

to the Employee’s heirs together with any other monies due in accordance with Article 15 of the UAE Labour Law, as amended. Relevant penalties by EHS may also apply.

11.12.6 If an Employee is wholly, or partially disabled, compensation will be payable by the Customer in

accordance with the prevailing laws in this regard and the UAE Labour Law. Classification of the degree of disability shall be made by a competent medical authority appointed by Jafza, or the Dubai Health Authority.

11.12.7 Mediation in an employment dispute between a Customer and an Employee shall be facilitated

through Jafza prior to referring the dispute to the competent court.

12. INSPECTION OF CUSTOMER’S PREMISES

§12.1 — General

12.1.1 Jafza may at any time inspect or enter into the Premises of Customers without prior notice. However, consideration maybe given, as appropriate and according to urgency, to any resulting disruption of the Customer’s ongoing operations. Jafza’s inspection or entering the Premises may be for any reason

including but not limited to:

(a) ensure compliance with these Free Zone Rules and other regulations and requirements of Jafza. Inspect any work to which, in the opinion of Jafza, the provisions of Free Zone Rules

apply;

(b) examine any process causing the discharge of any noxious or offensive substance;

(c) apply tests, take samples, conduct experiments and generally make enquiries as deemed

necessary or proper for confirming compliance with EHS/Free Zone Rules;

(d) confirm that employment rules are being complied with; and

(e) confirm that activities comply with the Lease and Licence terms and conditions.

12.1.2 A Customer should note that inspections shall only be carried out by local and federal authorities, Jafza or any other authorities specifically authorised to inspect by Jafza. Inspection by any other

person or organisation is strictly prohibited, unless prior approval of Jafza is obtained. A Customer being approached by any other party for inspection or information should notify Jafza immediately.

12.1.3 A Customer, or the agent, shall render to the authorised representatives of Jafza, necessary facilities for entry, inspection, examination and testing in pursuit of the representative’s duties under these Free Zone Rules.

12.1.4 A Customer shall not in any way restrict or hinder the entrance or inspection by a State, local or federal authority, by Jafza or by any other representative specifically authorised to inspect by Jafza, failing which the Customer shall be liable to a fine.

§12.2 — Types of Free Zone inspection

Jafza may directly or through an authorized person or body carry out inspection and such inspection may

include but is not limited to the following objectives:

(a) determining cleanliness and maintenance of facilities;

(b) ensuring compliance with safety measures;

(c) enforcing restriction on cooking in accommodations or inside any Premises not intended for that

purpose, such as working stations of offices, warehouses or showrooms, etc;

(d) preventing illegal stay of Employee or extra person in accommodation;

(e) ensuring appropriate storage and waste disposal;

(f) ensuring issuance of CEC Cards;

(g) ensuring appropriate Lease /sub-Lease of Premises;

(h) ensuring compliance with the requirements of applicable laws and international treaties the UAE is

part of, such as the standard requirements of Anti-Money Laundering and Combating the Financing of Terrorism as per the FATF group directions;

(i) enforcing restriction on illegal parking;

(j) enforcing restriction on spitting; and

(k) enforcing restriction on trading in fake and illegal goods.

(l) Enforcing restriction on illegal open storage.

§12.3 — Areas of Free Zone inspection

All Environment, Health and Safety and Fire Department requirements shall be complied with during the construction stage of a project with adequate EHS safeguards and fire detection measures. All measures

shall be taken by the Customers to conduct their operations in an environmentally clean, safe manner to avoid nuisance to other Customers and prevent EHS impacts. Jafza may directly or through an authorized person or body carry out inspection in any area of the Free Zone. The rules governing the same are as included in (but not limited to) the following:

(a) Building and General Civil Work construction regulations;

(b) Environmental Control rules and requirements.

(c) Environmental guidelines;

(d) Health & Safety regulation and standards;

(e) Food Establishment guidelines;

(f) Jafza Rules, policies and resolutions issued with obligations on the part of a Customer.

(g) Premises of the Customer;

(h) warehouses/LIUs/Plots/Ready Built;

(i) food court, shops and restaurants;

(j) on site Accommodation;

(k) roads; and

(l) general landscape.

§12.4 — Operations/materials/equipments inspection

The material and equipment of a Customer shall be used, maintained and stored in a responsible and safe

manner considering safety of Employees, Premises and other personnel in Jafza as well as visual appeal and aesthetics. A Customer shall be particularly mindful of stored materials or waste materials being in common or public areas or behind warehouse Premises, in corridors between offices and other Premises, in open areas or unused land. To ensure compliance, Premises will be thoroughly checked by inspectors in different categories as mentioned below, and a breach by the Customer may result in a warning, financial penalty, termination of License or any other penalty determined by Jafza. Such breaches specifically include but are not limited to the following:

(a) minor waste or any kind of goods kept outside/inside the restaurants/shops for more than a day;

(b) bulk waste at a Customer’s Premises;

(c) waste of pallets, waste, wood cuttings, plastics, boxes, or any kind of goods;

(d) unrepaired damages to walls by the vehicles or containers during loading/off-loading , or any

damages to a warehouse, interior or exterior of a Premises;

(e) discovery of merchandise by an inspector not mentioned on the Licence or evidence of activities other

than those appearing on the Licence without the approval of Jafza;

(f) a person found working at Customer’s Premises who is not meant to be working on the Customer’s

Premises, whether due to being sponsored for another Customer, not being sponsored, or for any other reason (illegal employment);

(g) sub-Lease of the Premises to third parties without prior approval from Jafza; and

(h) A Customer barring Jafza’s inspectors from entering the Premises or hindering their tasks.

§12.5 — Accommodation inspection

12.5.1 A Customer housing more than the permissible number of persons advised for each class of room, in

the accommodation complex for Employees or such other persons as permitted by Jafza in the Free Zone (“Accommodation”), shall be fined per additional person per day till the breach persists. Jafza shall have the right to terminate the License in case of the violation is repeated.

12.5.2 A Customer shall accommodate only Employees or such other persons as permitted by Jafza in the Accommodation complex of the Free Zone. No other person is entitled to stay in the Accommodation. Employees of an affiliated company(ies) / parent company / sister company(ies) of the Customer are not entitled to stay in the Accommodation without the prior permit from Jafza. Jafza may impose a penalty on the person at whose Accommodation such unauthorised person is found. In case of violation a fine (per person) of AED 10,000 to be imposed. Fine to be doubled if the violation is repeated.

12.5.3 Accommodation sub-leased to a third party without Jafza’s permission will result in fines on the Customer and eviction of the occupant. In case of violation a fine (per room) of AED 10,000 to be imposed.

12.5.4 Jafza shall carry out regular inspections to ensure that no food is cooked in the Accommodation, offices, warehouses, showrooms; Jafza may impose a fine where such activity is found.

12.5.5 Pan spitting or throwing waste in the corridors of the Accommodation is prohibited and shall be subject to a fine.

12.5.6 If an occupant of an Accommodation is found to be in violation of these Free Zone Rules with respect to the use of the Accommodation, such as storing goods, storing alcohol or conducting unauthorised activities, such occupant will be subject to fine on each occasion and may suffer potential legal action.

§12.6 — Office building inspection

Jafza may inspect the offices and the office building of the Customer to ensure compliance with the following

restrictions:

12.6.1 a Customer carrying out activities other than those appearing on its Licence without the approval of Jafza;

12.6.2 a Customer barring a Jafza’s inspector from entering the Customer’s office or the office building, or hindering the inspector’s tasks;

12.6.3 smoking in corridors in office building;

12.6.4 pan spitting in corridors in office building is prohibited;

12.6.5 offices that are Leased for rent to Customers and are used for a purpose other than an office (meaning used as a store room, for other miscellaneous purposes, or illegal use); and

12.6.6 unauthorised persons found working in a Customer’s Premises (illegal employment).

§12.7 — Certain restrictions

Certain non-exhaustive restrictions on Customers are listed below:

12.7.1 unauthorised (illegal) parking of heavy vehicles and/or leaving remnants/stocks or other similar objects in the Free Zone or at a Customer’s Premises is strictly prohibited. Violators found parking on such areas will be penalized on each occasion. Repeat violators may find their Premises locked by the security. If the lock is damaged then further penalty may be imposed on the violator;

12.7.2 unauthorized (illegal) parking of third parties’ heavy vehicles / trucks in Jafza’s premises and damaging Jafza’s assets. In such incident, the penalty will vary from a warning, a fine of AED 5000 as well as revoking access for 3 months and finally a fine with permanent revocation of the access, plus the repair cost of the damaged assets, if any on all occasions.

12.7.3 selling of banned substances is prohibited. Those found selling banned substances will be penalized and the stock of the same will be taken away;

12.7.4 selling of pirated media, such as compact discs, videos, and data is prohibited. Those found selling pirated media will be penalized and the stock of the same will be confiscated;

12.7.5 food court or other such facilities not complying with the drawings produced will be fined;

12.7.6 containers/trailers/goods parked, without loading or offloading the goods, by a Customer’s Premises shall be subject to a fine. If the same is repeated an additional fine per day will be issued; and

12.7.7 if a Customer is found trading in fake goods, it shall be subject to a fine and the Customer’s Licence may be terminated or suspended.

13. PRODUCTS

§13.1 — General

13.1.1 Consignment of goods may be split between two Customers, provided that such splitting does not

lead to:

(a) any loss in the customs revenue;

(b) reduction in the value of goods; or

(c) reduction in the proportion of fees in case of classifying the contents of each consignment.

13.1.2 Manufacturing, trading or marketing of contraband items is strictly forbidden. The following goods are forbidden from entry into the Free Zone:

(a) flammable goods except for fuels necessary for operations as permitted by the concerned

authority in supervision over the Free Zone markets, subject to the conditions specified by the competent authorities;

(b) radioactive materials;

(c) arms, ammunition and explosives, unless authorised by the competent authorities;

(d) goods infringing the laws of protecting commercial and industrial property;

(e) illicit drugs or similar substances;

(f) goods originating in a country boycotted economically by United Arab Emirates; and

(g) goods prohibited from entering the Free Zone and/or the United Arab Emirates.

13.1.3 A Customer exporting either manufactured or labeled products from the Free Zone to the United States is required to mark as “Made in JEBEL ALI FREE ZONE, Dubai”.

§13.2 — Marketing products in the United Arab Emirates

13.2.1 A Customer may carry out business in the mainland subject to the Laws and regulations applicable in

the emirate of Dubai.

13.2.2 A Customer also may advertise goods or services in the mainland.

13.2.3 A Customer may participate in trade exhibitionsand sell its goods and/or services at such exhibitions in the same way as any other foreign company may, by getting approval from the relevant authority in the United Arab Emirates.

§13.3 — Customs

13.3.1 A Customer engaging in trading activities, by import of goods into the Free Zone or export of goods

from the Free Zone, is required to have a code from the Department of Customs and Ports (the “Customs”). A Customer’s representative shall obtain a ‘Representative Card’ from the Customs in order to represent the Customer before the Customs.

13.3.2 A Customer shall abide by rules, regulations and practices of the Customs, as may be amended. .

13.3.3 The postal address and phone number of the Free Zone customs is:

P.O. Box 17017 Dubai, United Arab Emirates Tel: 9714-8055232/233 Fax: 9714-8811314

14. VIOLATIONS OF FREE ZONE RULES

§14.1 — General

14.1.1 Ignorance of the Free Zone Rules shall not be a defence for lack of compliance thereof.

14.1.2 A Customer in violation of the Free Zone Rules shall be in breach. If such breach is not remedied to the satisfaction of Jafza, Jafza may render the Customer liable to sanctions as given in this Rule 14, or such other sanctions Jafza may consider necessary. The sanctions prescribed for violation of these Free Zone Rules are the minimum sanctions. Jafza reserves the right to impose additional sanctions that it may deem fit, and reserves its right to refer any violation to the Court of law.

14.1.3 Jafza reserves the right to ban the entry or exit of the staff and/or goods of Customers who fail to remedy violations of Free Zone Rules.

14.1.4 The intention to impose a ban will be notified to the Customer in writing and a period to remedy the breach may be allowed. Once imposed, the ban will not be lifted until the violation has been rectified.

14.1.5 In the event of failing to remedy the violation, following any additional warnings, the Free Zone reserves the right to re-possess the Premises, or take any action it deems necessary.

14.1.6 Jafza reserves the right to disconnect electricity supply to the Premises in the event that any accounts payable to Jafza or to Dubai Electricity and Water Authority are not paid within the prescribed period. A re-connection charge will be payable before the supply is restored.

§14.2 — Activity violation

14.2.1 A Customer carrying out activities other than those appearing on its Licence without the approval of Jafza shall be subject to a fine of AED 5,000 on the first occasion. If the violation is repeated, the fine

will be at AED 20,000 per occasion.

14.2.2 Jafza reserves the right to take stringent measures, including termination of License, financial penalty and closure of the operations of a Customer, if the unauthorised activities are of a serious nature such as:

(a) violating Free Zone Rules and regulations; and

(b) violating municipal, governmental or federal law, or criminal law, including the copyright law, the trademark law, the trade agency law, patent law and the intellectual property right law, etc.

§14.3 — Employment violation

14.3.1 A Customer found to be illegally utilising the services of an Employee of another Customer shall be

fined AED 10,000 per Employee if sponsored by Jafza but under a different company and AED 10,000 if not sponsored by Jafza. This restriction / fine includes utilizing the services of an employee of an affiliated company(ies) / parent company / sister company(ies) of the Customer without prior permit from Jafza.

14.3.2 Should a Customer repeat this violation, then a fine of AED 20,000 per employee will be applied if the same is sponsored by Jafza but under different company and a fine of AED 20,000 per employee will be applied if not sponsored by Jafza.These sanctions shall be jointly or severally imposed and the operations of the Customer shall be suspended until rectifying the position.

14.3.3 Failure of the Customer to transfer the Employee’s salary through the WPS by the 15th of the month will result in automatic withdrawal of operations and personnel services. In addition, fines will be imposed on the Customer in the sum of AED 2,500 per month. Jafza shall not make exceptions to this rule and shall have the right to take further action against the Customer in this respect.

14.3.4 A Customer who fails to notify Jafza about an absconding Employee within seven (7) may be subject to fines and penalties.

14.3.5 A Customer who fails to cancel or transfer an Employee’s residence permit within thirty (30) days of the Employee’s final day of employment will be subject to a fine as applicable in Jafza.

§14.4 — Construction violation

Contravention of Trakhees building regulations and design guidelines, or any construction, undertaken which

is not included in the Building Permit for a project, or where after construction a Completion Certificate is not obtained, shall render the Customer liable to financial penalties and non-financial sanctions as set forth in the current regulations and schedule of Tariffs and penalties or fines.

§14.5 — Operation fitness violation

It shall be an offence if the Customer operates without a valid Fitness Inspection and Fitness Certificate. A

Customer will be liable to appropriate financial penalty on per day basis so long as the offence continues. Jafza reserves the right to disconnect electricity and water supply in such cases and impose other measures as appropriate, described in this section. Instances of such violations include, but are not limited to the following (applicable EHS penalty code shall be referred for the following violations):

(a) commencement of operations of a new Customer from a warehouse/factory unit without a Fitness

Certificate;

(b) commencement of operations of a new Customer from an undeveloped/semi-developed (during

construction)/developed Plot, without a Fitness Certificate;

(c) commencement of operations of an existing Customer from the new/expanded/ modified facility, without amendment of its existing Fitness Certificate;

(d) commencement of operations of additional/amended activities of an existing Customer, without

amendment of its existing Fitness Certificate;

(e) commencement of operations from additionally installed machinery/ equipment of an existing

Customer, without amendment of its Fitness Certificate;

(f) a Customer operating without a valid renewed Fitness Certificate; and

(g) a Customer who has sub-Leased Premises or obtained an additional Licence, operating without a

valid Fitness Certificate.

Note: In case of serious EHS violations, the existing Fitness Certificates from a Customer who is in such violation shall be revoked until such time the violation is addressed to the satisfaction of the EHS.

§14.6 — Accident reporting

In the event of failing to immediately report an accident, including a minor one, to PCFC emergency control

room on telephone 8833111, EHS-Trakhees shall levy a fine as per EHS penalty code.

§14.7 — Accommodation

14.7.1 A Customer who houses more than the permissible number of persons prescribed for each class of room, in the Accommodation, shall be fined AED 5,000 (same tenants, sponsored by Jafza) and AED 10,000 (same tenant, not sponsored by Jafza) per additional person. The fine will be at AED 20,000 if any of the two violations is repeated.

14.7.2 In the event that a Customer fails to rectify the breach in Rule 14.7.1 within seven days, Jafza may take such action as necessary, including termination of License.

14.7.3 A Customer failing to maintain the standards of external Accommodation (as defined by EHS), shall be issued with a warning letter giving 45 days to remedy the situation. A fine of AED 500 per day shall be applied after expiry of the time allowed until the Customer rectifies the situation and obtains approval from EHS.

14.7.4 If the condition of the Accommodation is extremely poor and poses an immediate danger to the health of the occupants, Jafza reserves the right to impose other non-financial sanctions, including repatriation of some or all the staff occupying the Accommodation.

14.7.5 Jafza shall carry out regular inspections to ensure that no food is cooked in rooms in the Accommodation (other than senior rooms). A violator of this rule shall be warned through the Customer on the first occasion and subject to a fine of AED 5,000. In the event that this violation is repeated, Jafza shall impose a fine on the Customer and the violator of AED 10,000. On further violation Jafza may take such action as necessary, including termination of License.

§14.8 — Environment, Health and Safety

14.8.1 A Customer shall comply with EHS regulations. EHS or Jafza may take necessary action in the event

of non-compliance including the actions in the scenarios below:

(a) Immediate danger to environment, health and safety:

In such situations, EHS will issue a “Prohibition Notice”, which requires an immediate cessation of operations until such time as the required remedial action has been implemented to the satisfaction of EHS.

(b) Potential danger to health and safety and environment:

For such situations EHS will issue a “Correction Notice”, specifying the necessary corrective action and the required completion date. This will however be discussed with the concerned Customer and EHS will approve the completion date. EHS will then monitor implementation to ensure a positive response.

(c) Minor violations:

For these situations EHS will notify the Customer of the violation. However, if there is a persistent failure to remedy these, then EHS will issue a “Warning Notice”, defining the necessary corrective action and appropriate completion date.

14.8.2 Failure to comply with a Prohibition Notice, Correction Notice or Warning Notice may result in a penalty and fine. Where the Customer does not act in accordance with the Prohibition Notice, Correction Notice or Warning Notice, it may face further penalties and fines.

14.8.3 Unauthorised storage and disposal of waste and materials within the Free Zone is an offence and Jafza may impose appropriate financial penalties and non-financial sanctions on the offenders as per the current EHS regulations and schedule of Tariffs and penalties or fines. In all cases the dumped material must be cleared, either by the offending Customer or by Jafza who will charge the Customer accordingly.

14.8.4 Jafza/EHS-Trakhees may impose a maximum financial penalty and non-financial sanctions as per the current EHS regulations and schedule of Tariffs and penalties or fines for serious violations of EHS requirements.

Some examples of serious violations are:

(a) negligence leading to death or serious injury;

(b) discharge of untreated, industrial waste or hazardous materials without EHS approvals;

(c) mishandling, abandonment or unsafe storage of dangerous goods or materials;

(d) construction site violations with EHS potential risk; and

(e) operating equipment or machinery, or conducting activity without EHS approvals.

Jafza may investigate the circumstances leading to a violation and the Customer shall cooperate with Jafza for such investigation.

14.8.5 If the Customer abandons goods on the Premises or in the Free Zone then in addition to financial penalties Jafza may take such measures as necessary to remove the abandoned goods, including disposing or auctioning the abandoned goods. The Customer shall lose claim of ownership over the goods once they are abandoned.

14.8.6 Unauthorised use of containers or portacabins on a Customer’s Premises will result in a fine of AED 1,000/- per day following the grace period to remove the same.

14.8.7 A Customer barring Jafza’s inspectors from entering the Premises or hindering their tasks in any way is, in addition to any penalty or action, liable for a fine of AED 5,000/- on the first occasion. The fine will be AED 10,000/- on any subsequent occasion.

§14.9 — Unauthorised entry

In the event of an individual entering the Free Zone without the appropriate authorisation (pass, company

employment card, etc), and where such entry is as a result of a Customer aiding and abetting such an entry, then the Customer shall be warned in the first instance and the individual will be handed over to Dubai Police. Subsequent violations shall result in a fine of AED 1,000/- per unauthorised person entry and Jafza shall take action as deemed necessary.

§14.10 — Customer violations

In the case of a default by a Customer or its shareholder under the Free Zone Rules and other relevant rules and regulations, including implementing regulations and any relevant policies and resolutions issued by Jafza, or in case of breach of terms and conditions of the Customer’s Licence, Jafza may impose a fine up to AED 10,000/- per day during the period of such non-compliance, in addition to any other action that Jafza may deem appropriate.

SECTION C PROCEDURES FOR OPERATING IN THE FREEZONE

15. HEALTH, SAFETY, ENVIRONMENT AND FIRE

§15.1 — General

15.1.1 Paved ground in front and behind warehouses and corridors, between offices of buildings and open

areas, and between Premises, are not to be used for placement or storage of equipment, waste, or other items.

15.1.2 Cooking is not permitted in the Premises.

15.1.3 A Customer shall ensure that its Employees directly involved in processing, manufacturing, or packaging edible or health products (e.g., pharmaceutical, cosmetics, etc.), have a valid ‘Occupational Health Card’, issued by the Dubai Municipality and/or EHS, which they must keep readily available for inspection on request by Jafza or EHS.

§15.2 — Reporting of accidents or serious illnesses

15.2.1 In addition to contacting the relevant public emergency service, in the event of an Employee suffering

contagious/serious illness or emergency medical condition or an accident/incident/fire, it shall be the Customer’s responsibility to immediately report the same to the PCFC emergency control room/EHS emergency control centre as well, at Tel: 8833111. The emergency control room shall then notify the relevant emergency services.

15.2.2 Within one day of an accident, a Customer must present a written report to the EHS and in accordance with the EHS procedures, provide the Employee’s name, identity number, job title, address and nationality. The report must also include a brief account of the circumstances of the accident and a note of medical aid provided.

15.2.3 A Customer shall maintain records of notable accidents which an Employee suffers.

15.2.4 In the event of an Employee suffering from food poisoning or an infectious disease, the Customer shall be required to promptly notify the same to EHS. A Customer is required to fully co-operate with Jafza and EHS-Trakhees in the event of such incidents.

§15.3 — Collection of domestic waste

Jafza will be responsible for the provision of domestic waste management services (including but not limited

to the collection and disposal of domestic waste generated at the premises of Customers) – directly or through any of its affiliates or an outsourced service provider - to all Customers and companies in the Free Zone. For this purpose, where required, skips and pick-up services will be provided to Customers occupying land sites, factory units and occupants of sheds. Charges for provision and collection of skips and pick-up services will be as announced from time to time.

§15.4 — Domestic sewage

15.4.1 No new soak ways are permitted and where no sewage system is available, suitably sized

septic/holding tanks shall be constructed by the Customer for regular disposal.

15.4.2 Buildings, including Ready Built Premises, will be connected to the sewage system wherever it is operational in the Free Zone.

15.4.3 Annual charges for this connection (excluding office buildings), will be as per the Tariff. The Tariff will also be applicable to LIUs connected to septic tanks.

§15.5 — Industrial waste

15.5.1 Liquid industrial waste shall be treated by the Customer generating the waste, to the required

applicable standard for each receiving medium (e.g., land, sea, municipality sewer). However, as a

policy, the Customer shall explore all possibilities to recycle/re-use and recover waste to the satisfaction of Jafza/EHS, prior to an approval for disposal of the same. For further information on these standards, the Customer should liaise with EHS.

15.5.2 A Customer generating liquid industrial waste for discharge into industrial drainage lines (where applicable) laid by Jafza, will be required to provide a holding tank of a suitable size to be agreed by Jafza/EHS. The condition of effluents from such tanks will be subject to checks and monitoring programs as determined by Jafza/EHS-Trakhees.

15.5.3 For connection of the Customer’s treated industrial wastewater drainage line to the Free Zone’s main industrial drainage lines i.e. harbor discharge line (for subsequent disposal of treated industrial waste effluent), the following conditions must also be satisfied:

(a) certain control and metering/recording devices must be provided to the satisfaction of Jafza

and EHS on the Customer’s industrial drainage line and must be made accessible to the EHS staff whenever required. Upon compliance with the above and satisfactory inspection to verify the same, EHS may issue harbour discharge permit to the respective Customer;

(b) in the case of failure to achieve the EHS standard, the discharge into the Free Zone’s main

industrial drainage system will be stopped immediately and the Customer shall be responsible for any consequences; and

(c) charges will be levied in line with the Tariff prior to issuance of harbour discharge permit.

15.5.4 Industrial solid waste, which is considered by Dubai Municipality as non-hazardous waste, can be disposed in accordance with these Free Zone Rules. However, such industrial wastes shall be collected, stored, and/or disposed separately as per Dubai Municipality requirements.

15.5.5 Industrial solid or liquid waste, which is considered to be hazardous by Jafza and by Dubai Municipality, should be dealt with as laid down in Rule 15.5.6 below.

15.5.6 Disposal of heavy industrial solid waste shall be the responsibility of companies generating such waste. However, the requirement for disposal of such waste should be intimated to Jafza/EHS- Trakhees at the project planning/application stage itself for initial approval from Dubai Municipality.

§15.6 — Disposal of hazardous waste

15.6.1 Dubai Municipality is the controller of waste disposal sites in the Emirate of Dubai and it has its own

local order and technical guidelines. A Customer shall be aware of such orders, guidelines and rules in order to fulfill such requirements. The orders, guidelines and rules can be obtained from Dubai Municipality or EHS-Trakhees.

15.6.2 Hazardous waste must be separated at site and source from ordinary or general waste and should be disposed at Dubai Municipality’s hazardous disposal site in accordance with the following procedures:

(a) the Dubai Municipality application for hazardous waste form should be completed by the waste generator (the Customer) online at the Dubai Municipality website;

(b) the Customer shall submit the copy of completed form to EHS-Trakhees for initial approval

and pay the applicable Tariff;

(c) upon approval, Dubai Municipality will notify the Customer the disposal instructions. There will

be charges applied by Dubai Municipality for the disposal of such waste. The charges can be obtained from Dubai Municipality;

(d) upon completion of inspection by an EHS inspector at the respective Customer’s Premises, EHS shall issue inspection report with approval to the Customer for Dubai Municipality’s

reference and/or final approval. Any discrepancies observed during EHS’ inspection visit to the Customer’s Premises in terms of quantity and quality of the hazardous waste materials proposed for disposal, EHS reserves the right to reject such application and to take appropriate action without any reference; and

(e) copy of the approval of EHS and Dubai Municipality is essential to permit the waste to leave

the Free Zone for disposal through Dubai Municipality.

§15.7 — Use of containers

During operations, use of containers is generally not permitted on a Customer’s Premises under the following

categories:

(a) Containers/portacabin for material storage:

Use of containers for any kind of storage is not permitted; this includes containers used for material storage within the warehouse, light industrial unit, showroom as well as outdoors. However, EHS will review the above restrictions for containers or portacabins used for operational purpose.

(b) Containers or portacabin for general purpose:

The containers or portacabins are not permitted to be used as for general purpose such as (mess hall, accommodation block for staff or any other purpose) that may endanger health and safety of workers, create potential fire and environment hazard and affect aesthetic look of Free Zone. However, in order to use the portacabin as site office, Jafza/EHS will review the above restrictions for containers or portacabins used for operational purpose.

(c) Use of Premises as containers or portacabin storage yard:

A Customer shall not be permitted to utilize its Premises as a yard for empty container or portacabins storage. Growth of business, cancelled contracts, etc. cannot be considered as an excuse for such storage.

In exceptional cases the above three scenarios can be permitted where a Customer has a business requirement, which must be submitted for review and approval from Jafza. If approved, a refundable deposit, as per relevant EHS procedure, shall be payable for each container or portacabin and a time frame for use of container or portacabin will be agreed, which shall be no greater than four months. Without such approval and the appropriate permit, security will not allow entry of the container or portacabin into the Free Zone. Unapproved usage or exceeding the time frame will be subject to fines and penalties.

§15.8 — Public health levy

Jafza attaches great importance to matters concerning public health, safety and environment and expects the Customer to attach the same degree of importance to such matters. A Customer, other than a Customer with

a Lease of an office space and workstation, shall be required to pay the levy given in the Tariff. The levy covers the cost of pest control services and garbage collection services. The levy does not cover the cost of fumigation and termite control services.

§15.9 — Fire protection, fire prevention and fire/emergency control

15.9.1 A Customer shall cooperate and comply with fire protection, fire prevention and fire/emergency control

preventive and fire control measures taken by Jafza in accordance with the current regulations and practices as stipulated through Trakhees/EHS Division.

15.9.2 A Customer who has Leased a Ready Built Premises which have been modified or a Plot whereupon the Customer has constructed, must ensure that effective fire protection systems, complying with local regulations, are installed and that a dedicated telephone connection is made to the ‘Fire Station Emergency Control Centre (ECC)’. False fire alarms or calls at the ECC must be avoided.

15.9.3 Trakhees fire department or any other competent authority is authorised to take full control of a fire- fighting situation. Where there is reasonable justification, fire fighting personnel are authorised to make a forced entry into a Premises. Such reasonable justification includes but is not limited to where fire fighting personnel have reasonable suspicion of a fire and the Premises is unmanned, unguarded, closed or locked, or where failure to do so could result in significant loss. Trakhees and Jafza shall not be liable for loss that may be caused to the Premises of the Customer due to fire.

16. TRAFFIC AFFAIRS

§16.1 — General

16.1.1 The roads in the Free Zone are treated as public roads. A driver or operator of a vehicle or equipment

must be in possession of a valid licence issued by the Roads and Transport Authority (‘RTA’) and any other competent authority, and suitable for the class of vehicle or equipment being driven or operated.

Vehicles shall only be parked in designated public parking or in the Leased area; violators may incur fines.

16.1.2 Vehicles and mobile equipment such as forklift trucks, including those whose operations are confined to the Customer’s Premises, need to be properly licenced by the RTA before they are put into use. Operators and drivers of such vehicles and equipment must be in possession of a valid driving licence issued by RTA suitable for the class of vehicles being driven.

§16.2 — Vehicles owned by Customers

16.2.1 A Customer is not permitted to purchase a commercial vehicle (i.e., pick-ups, trucks, forklift etc)

unless prior approval is obtained from Jafza.

16.2.2 A Customer is permitted to register one ton (maximum) pick-up trucks, for the purpose of transporting the Customer’s staff in and out of the Free Zone and for conveying goods from the local market into the Free Zone. However, such vehicles must not be used to deliver goods to customers in mainland United Arab Emirates.

16.2.3 A Customer required to register a pick-up of greater than one ton capacity must appoint an agent to do so on its behalf and the pick-up must then be registered in the agent’s name.

§16.3 — Cars for Employees

16.3.1 Sponsored Employees can register private cars, but require a “No objection” from Jafza.

16.3.2 Jafza shall issue the necessary “No objection” addressed to RTA for the Employees for the test and in order to obtain the driving licences.

17. STAFF ACCOMMODATION

§17.1 — General

17.1.1 Accommodation is available in the Accommodation complexes in the Free Zone.

17.1.2 A Customer is not permitted to either share or transfer the Accommodation to another Customer without prior approval by Jafza.

17.1.3 A Customer who has leased Accommodation is required to comply with terms and conditions of the tenancy contract, Free Zone Rules and regulations. Non compliance will result in the tenancy contract being terminated.

17.1.4 Where a Customer requires its Employee to be transferred from one Accommodation to another it shall submit a letter to such effect to Jafza.

§17.2 — Occupancy of rooms

The maximum number of individuals to be accommodated in the various types of rooms available shall be as

published by Jafza.

§17.3 — Cooking in rooms

Cooking in the rooms of the Accommodation (other than the senior blocks/executive rooms, where kitchens

are provided), is prohibited on the grounds of health and safety.

§17.4 — Accommodation outside the Free Zone

17.4.1 A Customer wishing to accommodate its Employees in accommodation complexes or houses outside

the Free Zone should inform Jafza in writing. In addition, the following information should be submitted to Jafza:

(a) detailed address and location of the premises which is to be used for accommodation;

(b) a layout plan of the premises showing the number of rooms with sizes in square meters, the number of ablution facilities with sizes, the size of corridors and the size of open yards;

(c) general condition of the building with details of major structural damages;

(d) the condition of sanitation and hygiene in the building;

(e) the number of people who will be occupying each room;

(f) arrangement for eating or gathering;

(g) details of amendments or renovations the Customer wishes to incorporate into the building; and

(h) copy of the tenancy contract.

17.4.2 The criteria for the minimum standard for accommodation can be obtained from EHS.

17.4.3 Jafza shall carry out regular inspections in order to ensure that these standards are maintained.

18. SECURITY

18.1 The relevant security department is tasked with providing security in the Free Zone and for authorising movement of vehicles and personnel into and out of the Free Zone. In the event of fire, theft, or other violations of security coming to the notice of a Customer, the Customer shall notify the relevant security department. Where required DWS/PCFC may notify or involve the Dubai Police.

18.2 Vehicles and personnel moving in and out of the Free Zone are required to have the appropriate pass or permit.

18.3 For security reasons, a Customer must inform the relevant security department about any shift working arrangements.

18.4 Vehicles entering and leaving the Free Zone, shall be subject to search/security check, at the various entry/exit gates.

18.5 A Customer who has either modified the Ready Built Premises or has constructed a building on the Plot shall be required to lodge a second key for the Premises with the relevant security department to ensure ready access in the event of fire or other serious incident. Such second key shall also be deposited in the event of locks are changed.

18.6 A Customer is required to provide written details of a contact person to the relevant security department in order to facilitate fast responses in the event of fire, burglary or other incident. 18.7 For a serious traffic violation occurring within the Free Zone, the relevant security department shall notify the Dubai Police for them to take appropriate action.

18.8 Firearms will not be allowed in the Free Zone. Any violation will be notified to the appropriate authority. 18.9 Photography or video recording within Jafza is strictly prohibited. A Customer who may require to carryout photography or a filming session must approach Jafza customer relations and the relevant security department for authorisation.

18.10 Traffic accidents, incidents or violations shall be reported to the relevant security department control room. The relevant security department telephone number is: 800 379 222 / 048832200.

18.11 The customer shall install & maintain security systems according to the competent authority’s requirements & guidelines (The Security Industry Regulatory Agency “SIRA”).

19 TERMINATION OF LEASE AND LICENCE

In the event of the termination, discontinuance or invalidity of the Lease or Licence, a Customer shall by or before the date of such termination:

19.1 settle all outstanding operational issues, including financial, in liaison with Jafza; 19.2 cancel the sponsorship of or transfer the Sponsored Employees. Similarly, the records of passes for the non-

sponsored Employees such as ‘Permanent Access Card’ and ‘CEC Card’ must be surrendered for cancellation; 19.3 ensure the Premises are fully vacated, i.e., furnishings and equipment are removed and the Premises are restored to their original condition; and 19.4 dispose waste material or contaminated soil in accordance with Free Zone regulations, for which approval from EHS should be obtained.

Sultan Ahmed Bin Sulayem

Chairman of Ports, Customs & Free Zone Corporation

Issued in Dubai on: 22/03/2023

SECTION D Tariff

20 JAFZA/JEBEL ALI FREE ZONE TARIFF

Registration Service Fees

Type of Services Fees/AED

Registration for FZE 5,000

Registration for FZCO 5,000

Registration For Branch 5,000

Registration for Public Listed Company (PLC) 20,000

Re-domicile Certificate “for Transfer of a foreign company to the Free 10,000 Zone” Re-domicile Certificate “for Transfer of a company based in another 5,000 Free Zone in Dubai to the Free Zone, or from the Free Zone to another Free Zone in Dubai” Filing of application for certificate of incorporation Free Zone Company 5,000

Filing of application for certificate of incorporation Free Zone 5,000 Establishment Share Certificate Memorandum and Articles Of Association

3,000 Good standing certificate Registration Letters FZE & FZCO Tax Exemption Letter 0

Appointments of Director Removal of Director Change Manager Appointments of Secretary Removal of Secretary Specimen Signature Change of Company’s /Establishment's Name

Type of Services Fees/AED

1,500 Advertisements Change Name Plate Change Amendment of Memorandum and Articles Of Association New Share Pledge (Security of interest) Amendment of Share Pledge – Security of Interest 600

Release of Share Pledge – Security of Interest Mortgage Certificate New Commercial Business Mortgage Amendment to Commercial Mortgage Release of Commercial Mortgage New Assignment of lease Release Assignment of lease

200 + of mortgage New Building Mortgage Amendment to Building Mortgage 0.12% of the total value of mortgage

Release of Building Mortgage 500

Increase in Share Capital for FZCO 2000 For each share and maximum of AED 50,000

Increase in Share Capital for FZE 20,000 For each share and maximum of AED 50,000

Decreases in Share Capital 200

Transfer of Shares For FZE 20,000 For each share and maximum of AED 50,000

Transfer of Shares For FZCO 2000 For each share and maximum of AED 50,000

De-registration 5,000

Type of Services Fees/AED

Document Attestation

1,000 Transfer of Foreign offshore to JAFZA Offshore (Re-Domiciliation)

3,000 Company Freeze Reactivate License Status after a year 1,000

Plot Takeover (Transfer) 4% of the total of Building

value

Transfer of Foreign Company to JAFZA (Re-Domiciliation) 10,000

Transfer of a Company based in another Free Zone in Dubai to JAFZA, 5,000 and vice versa

Licence and Lease Services Fees

Type of Services Fees/AED

Trading License - New or Renewal or Amendment (One Group – up to 5,000 7 activities) Trading License - New or Renewal or Amendment (Two Group – up to 8,500 12 activities) Industrial License - New or Renewal or Amendment (One Group –up to 5,000 7 activities) Industrial License - New or Renewal or Amendment (Two Group – up 8,500 to 12 activities) Industrial License – New or Renewal or Amendment (3 Groups) 12,000

National Industrial License – New or Renewal or Amendment ( One 5,500 Group – up to 7 activities) National Industrial License – New or Renewal or Amendment ( Two 9,000 Group – up to 12 activities) National Industrial License – New or Renewal or Amendment ( Three 12,500 Groups) Service License - New or Renewal or Amendment 5,000

Logistics License - New or Renewal or Amendment 15,000

General Trading License - New or Renewal or Amendment 15,000

Holding Company License - New or Renewal or Amendment 30,000

Trading + Industrial each additional Activity from the same Group 500

Late Payment Fee for expired License (on monthly basis) 1000

License Re-Print 500

Type of Services Fees/AED

All Branch letters 100

Permit for entities incorporated and licensed by other free zones 100 authorities / competent authorities in UAE to lease a premise in the Free Zone

Sub Lease (1 - 5 sub-leases) 20,000

Sub Lease (6th sub-lease) 35,000

Sub Lease (7th sub-lease) 40,000

Sub Lease (8th sub-lease) 45,000

Sub Lease (9th sub-lease) 50,000

For Every Additional Sub-lease (Increment) 5000

New+ Amendment+ Attestation (Authorization Card) 50

Manager Name Change 500

Company Name Change 1,500

Name Plate for Office 500

License Termination Fees 1,500

Activity amendment during renewal - additional 500

JAFZA ADMINISTRATIVE SERVICES

Admin Services Price List

Type of Services Fees/AED

New Permanent Access Card (1Year \ 2 AED 400\600\800 Years \ 3 Years)

Renew Permanent Access Card (1Year \ 2 AED 400\600\800 Years \ 3 Years)

Cancel Permanent Access Card -

New Permanent Identity Card AED 400 per year

Renew Permanent Identity Card AED 400 per year

Cancel Permanent Identity Card -

New Temporary Access Card AED 100 per month

Renew Temporary Access Card AED 100 per month

Cancel Temporary Access Card -

New Temporary Identity Card AED 100 per month

Renew Temporary Identity Card AED 100 per month

Attest Employment Contract For Consulate AED 100

Company Representative Cards (1Year \ 2 AED 200\400\500 Years \ 3 Years)

Renew Company Representative Cards AED 200\400\500 (1Year \ 2 Years \ 3 Years)

Driving License Letters AED 10

Converting Driving License AED 210

Amend Company Employment Card AED 300

Duplicate Company Employment Card AED 300

Renew Company Employment Card AED 400

Letter Request AED 110

Salary Amendment AED 300 (Insurance premium will be

charged only if the employee under

insurance and salary band changed from one to another)

Designation Amendment AED 1240 (Insurance premium will be

charged only if the employee under insurance and salary band changed from one to another)

Employment Contract Attestation AED 100

Employment Visa New Normal package:

Employee Basic Premium Salary Intervals amount (AED) (AED) (5% VAT is

applicable)

1 year : AED 2378

2 years : AED 2678

Urgent package:

1 year : AED 2748

2 years : AED 3048

VIP Package

1 year : AED 3778

2 years : AED 4118

Additional Charges:

Applicant is inside country: AED 780

Transfer of sponsorship required: AED 920

Offer letter is required : AED 100

Applicant age is above 60 : AED 5000

Job title is Partner / Investor: AED 250

If company under insurance, insurance premium will be charged as below:

<4001 160 4001-8000 250 8001-12000 325 12001- 16000 425 16001-20000 500 >20,000 610 Visa Position Amendment (Transfer of AED 920 sponsorship)

Correct Employment Visa Entry Permit AED 783 Normal

AED 943 Urgent

Cancel Employment Visa Entry Permit Unutilized AED 273

Renew Employee’s Resident Permit Normal package:

1 year : AED 1882.50

2 years : AED 2082.50

Urgent package:

1 year : AED 2092.50

2 years : AED 2292.50

VIP Package

1 year : AED 3122.50

2 years : AED 3522.50

Additional Charges:

CEC Late fine : AED 500

Age greater than 65 = AED 5000

If company under insurance, insurance premium will be charged as below:

Employee Basic Premium Salary Intervals amount (AED) (AED) (5% VAT is

applicable) <4001 160 4001-8000 250 8001-12000 325 12001- 16000 425 16001-20000 500 >20,000 610

Resident Permit Renewal With Job Title RP Renewal with EC Amend (Salary only) Change

Normal package:

1 year : AED 1882.50 + Salary change

2 years : AED 2082.50 + Salary change

Urgent package:

1 year : AED 2092.50 + Salary change

2 years : AED 2292.50 + Salary change

VIP Package

1 year : AED 3122.50 + Salary change

2 years : AED 3522.50 + Salary change

Additional Charges:

CEC Late fine : AED 500

Age greater than 65 = AED 5000

If company under insurance, insurance premium will be charged as below:

Employee Basic Premium amount (AED) Salary Intervals (5% VAT is applicable) (AED)

<4001 160

4001-8000 250

8001-12000 325

12001- 16000 425

16001-20000 500

>20,000 610

Transfer Employee’s Resident Permit Into AED 630 New Passport

Nationality Change AED 930

Cancel Employee’s Resident Permit AED 322.50 Normal (Applicant inside UAE)

AED 462.50 Urgent

Cancel Resident Permit (Applicant is AED 722.50 outside UAE)

Correct Employee’s Resident Permit in AED 465 Passport

RP Stamping For Lost Passport AED 930

Declare Absconder AED 1600

Withdraw Absconder with RP Cancellation AED 1600

AED 590 Without Passport

AED 290 Normal – with passport

AED 430 Urgent – with passport

Upload Exit Paper No Charge

Update Employee New Passport Details No Charge

Employee Status Check at DNRD (GDRFA) AED 290

Release Transfer from Government to JAFZA Normal package:

1 year : AED 2670

2 years : AED 2970

Urgent package:

1 year : AED 2880

2 years : AED 3180

VIP Package

1 year : AED 3910 2 years : AED 4410

Additional Charges:

Applicant age is above 60 : AED 5000

Job title is Partner / Investor: AED 250

Transfer from non-government sector (Partner

visa) : AED 530

If company is under insurance, insurance premium will be charged as below:

Employee Basic Premium amount Salary Intervals (AED) (AED) (5% VAT is

applicable) <4001 160 4001-8000 250 8001-12000 325 12001- 16000 425 16001-20000 500 >20,000 610

Released Signed Out AED 210

Apply for Post Office Box AED 110

Apply for Vehicle Registration AED 210 Light Vehicle

AED 210 + AED 1000 (for Heavy Vehicle if it is above seven tones)

Renew Vehicle Registration AED 210 Light Vehicle

AED 1130 Heavy Vehicle

Transfer Vehicle Registration AED 100

Cancel Vehicle Registration AED 210

Duplicate Vehicle Registration AED 210

Apply for Tejari Number Plate AED 210

Renew Tejari Number Plate AED 210

Cancel Tejari Number Plate AED 210

Apply for Export Number Plate AED 210

Open File AED 210

Visit Visa Entry Permit Short Term AED 1103

Visit Visa Entry Permit Long Term AED 2153

Occupational Medical Appointment AED 100

Medical Re-Schedule AED 100

Employee BG Waiver Update AED 300

Labour NOC AED 10 for one Month

AED 510 for two Months

AED 1010 for three Months

VV Cancellation Unutilized AED 193

Internal Ban AED 500

Agent & System Company CRC AED 200

Cancel Submitted SR No Charge

Document Tracking No Charge

EC Amend Salary Decrease AED 300

Entry Permit Renewal AED 843

Additional charges:

URGENT : AED 160

Applicant Inside country: AED 780

Entry permit expired more than 60 days:

AED 753

Attestation Non – Competition Contract AED 300

Quota for Visit visa AED 200 + AED 241 per quota

Additional Charges:

Open new file: AED 5041

Refund Process No Charge

VQ Additional Count No Charge

Submission of BG Paper No Charge

Withdrawal of BG Paper No Charge

Jafza Inspection

List of violation codes

Amount Sr # Violations (AED) 1 Cooking in the leased premises / rooms (per room per violation) . 5,000 Fine will be AED 10,000 if the violation is repeated.

2 Dumped materials at Premises or anywhere else in the Free 5,000 Zone (per company per violation) 3 Waste at restaurants (first time) 500 4 Waste at restaurants (repeat) 1,000 5 Sublease – Premises. Fine will be AED 200,000 if the violation is 100,000 repeated.

6 Sublease - rooms (per room) 10,000 7 Illegal employment (per person, if under Jafza companies 10,000 sponsorship). Fine to be doubled if the violation is repeated.

8 Illegal employment (not on Jafza companies sponsorship) per 10,000 person. Fine to be doubled if the violation is repeated.

9 Illegal stay at accommodation (per person). Fine to be doubled if 10,000 the violation is repeated.

10 Illegal trailer parking at plots/side roads 200 11 Illegal trailer parking at plots/side roads (repeat) 500 12 Illegal pan spitting/throwing of waste (per person) 500 13 Storing goods in facilities (offices) 5,000 14 Illegal sale of banned substances 5,000 15 Illegal sale of pirated Cds or other counterfeit goods 5,000 16 Food court for not complying to drawings 5,000 17 Smoking at corridors/accommodation areas 500 18 Illegal company activities *(activity violation). Fine will be AED 5,000

20,000 if the violation is repeated.

19 Trading in fake goods 100,000 20 Unauthorized extra persons stay at accommodation (same 5,000

tenants, sponsored by Jafza). Fine will be AED 20,000 if the violation is repeated.

21 Unauthorized extra persons stay at accommodation (same 10,000

tenants, not sponsored by Jafza). Fine will be AED 20,000 if the violation is repeated.

22 Sponsored Employees involved in other jobs 500 23 Stopping inspectors from inspection. Fine will be AED 10,000 if 5,000

the violation is repeated.

24 Illegal use of offices / leased premises (storage/accommodation) 5,000 25 Container/goods/trailers parked more than a week by 2,500

warehouses (first time) 26 Container/goods/trailers parked more than a week by 500 warehouses (parking continued per day) 27 Trailer lock damages charges 200 28 Accommodation room violations (illegal goods/unauthorized 10,000

Amount Sr # Violations (AED) activities etc.) 29 A Customer aiding or abetting entry by an individual into the Free 1,000 Zone without appropriate authorization (per entry after warning in the first instance).

30 A Customer or its shareholder(s) default under the Free Zone 10,000

Rules or any relevant rules or regulations, including the implementing regulation or the terms & conditions of the license (per day during the period of non-compliance).

31 Violation to the directions and obligations stipulated for in the As determined in

UAE legislations and UAE Cabinet Resolutions in regards to the relevant matters including but not limited to Ultimate Beneficiary Onwer, legislation Anti-money Laundering and Combatting the Financing of Terrorism, as circulated by Jafza.

Sultan Ahmed Bin Sulayem

Chairman of Ports, Customs & Free Zone Corporation

Issued in Dubai on: 22/03/2023

← Record: Jafza Rules 2023
Text reproduced from the official publication for reference. Formatting, numbering and footnotes may differ from the original and the official text prevails. Arabic is the authoritative language of UAE federal and emirate legislation. Cross-reference links are generated automatically and cover only instruments held in this library.