VZCZCXRO3186
RR RUEHDE RUEHDH RUEHDIR
DE RUEHAD #0743/01 2030705
ZNR UUUUU ZZH
R 220705Z JUL 09
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 2751
INFO RUEHDE/AMCONSUL DUBAI 8367
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS SECTION 01 OF 02 ABU DHABI 000743 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP AND ISN/CPI 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR PGOV PTER AE
SUBJECT: UAE FEDERAL CUSTOMS AUTHORITY (FCA) ROLE 
 
ABU DHABI 00000743  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY: Each UAE emirate has its own customs body and 
regulations.  In 2003, the UAEG created the Federal Customs 
Authority (FCA) to unify UAE customs policies and regulations. 
Since its establishment, the FCA has improved coordination among 
local customs agencies, represented the UAE at regional and 
international events, and signed cooperation agreements with foreign 
countries.  The FCA has prepared a strategic plan for 2008-2010, 
focusing on developing UAE customs. However, despite the FCA's 
successes and efforts, each emirate still maintains significant 
independence in customs policy and enforcement.  End Summary. 
 
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FCA PURPOSE 
----------- 
 
¶2. (SBU) With the establishment of the GCC Customs Union in 2003, 
the UAE created the Federal Customs Authority (FCA) to unify UAE 
customs policies (Law No. 1 of 2003).  The FCA is managed by a 
council chaired by the Finance Minister, with members of local 
customs departments' undersecretaries, and representatives from the 
Ministries of Finance and Economy.  The council's decisions are 
implemented by the FCA's Director General, Mohammed Al Mehairi, 
whose position is equivalent to an undersecretary. 
 
¶3. (SBU) FCA Information Director, Ameera Al-Sirkal told 
EconAssistant that the FCA is the UAE's customs policy maker and 
supervises local customs departments' regulations.  According to 
Articles 4 and 5 of Law No. 1/2003, the FCA is responsible for 
establishing customs policies in cooperation with local customs 
departments.  It is also responsible for unifying and supervising 
customs implementation, and protecting the country from commercial 
fraud and smuggling in cooperation with the concerned entities.  The 
law authorizes the FCA to draft and supervise customs regulations 
and laws, suggest customs tariffs, maintain UAE customs data, 
supervise and inspect customs tariffs and enforcement procedures, 
unify customs documents and data, conduct training and development, 
represent the UAE at international, regional and Arab customs 
events; and implement GCC Customs Union requirements; and any other 
tasks to be decided by the Cabinet.  Article 6 of the law 
stipulates, "Without prejudice to the customs departments rights in 
customs tariffs collection, FCA (shall) draft and implement a 
central customs tariffs collection mechanism with GCC countries." 
 
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ACHEIVEMENTS 
------------ 
 
¶4. (SBU) Five years after its creation, the FCA has achieved a 
number of key objectives.  Representing the UAE in the GCC Customs 
Committee and GCC Customs Clearance Committee, the FCA supported 
efforts to eliminate obstacles to GCC Customs Union implementation. 
In April 2009, the FCA proposed new regulations on the protection of 
intellectual property rights, including changes to the GCC Customs 
Law, and announced its intention to include similar provisions in 
any bilateral agreements for customs cooperation with other 
countries.  It has participated in UAE national committees, 
including those related to combating Weapons of Mass Destruction, 
anti-money laundering and financing terrorism, and consumer 
protection.  It has contributed in the formation of Consumer 
Protection and Export Control laws.  The FCA launched an electronic 
scheme to connect all UAE customs departments and established a unit 
in Dubai to study customs barriers.  In June 2009, the FCA released 
the first-ever UAE comprehensive map of land, air and sea customs 
checkpoints. 
 
¶5. (SBU) The FCA has signed an agreement with Pakistan on mutual 
assistance and cooperation on customs issues including prevention of 
customs violations, information exchange, combating illegal trade, 
and cooperation in technical assistance.  It has signed other 
administrative and technical support agreements with Algeria, 
Tunisia, and Turkey.  There are other agreements under discussion 
with the United States (DHS), UK, Japan, India, Morocco, Armenia, 
and Argentina. 
 
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STRATEGIC PLANNING 
------------------ 
 
¶6. (SBU) The FCA has prepared a strategic plan for 2008-2010 focused 
on developing UAE customs.  Key goals include: 1) Building FCA 
capacity to assure customs and administrative performance quality; 
2) Unifying and developing UAE customs and inspection procedures; 3) 
Ensuring the implementation of local, regional and international 
customs obligations; and 4) Promoting the role of UAE customs as a 
local, regional and international leader. 
 
¶7. (SBU) COMMENT: Although unification of UAE customs policy is one 
of the FCA's main goals, in practice, Emirate-level customs 
departments still enjoy significant sovereignty over customs 
 
ABU DHABI 00000743  002.2 OF 002 
 
 
policies and implementation.  There are cases where local customs 
agencies independently changed customs tariffs: Ras Al Khaimah cut 
bilateral tariffs twice in 2004 and 2005.  As each emirate is 
responsible for enforcement, the FCA can only push policy changes 
that demand better IPR enforcement, inspection requirements and 
internationally required oversight.  FCA officials struggle with 
interagency coordination issues, and have requested USG advice on 
improving oversight and coordination.  It remains unclear if there 
is broader support - particularly at higher levels - for 
strengthening the role of the FCA.  End Comment. 
GREENE