As stated by online media outlet Gulf News, the issue has already been raised with the Dubai Department of Economic Development. The UAE is on the fast track in taking to e-commerce within the region. While the ranks of locally-based online vendors continue to grow, a significant portion of the transactions are still being done with overseas websites.
According to Mohammed Sharaf, CEO of Tejuri.com virtual mall, cited by the source, the merchandise bought by a shopper from an e-commerce portal outside of the country does not get charged the customs duty.
One legal solution suggested would be to frame any new regulations on e-commerce within the ambit of the broader Agency Law. This law requires that an overseas business has to have a local partner to offer those goods or services in the UAE marketplace.
For local online vendors, the clauses of the Agency Law apply in full. Ecommerce legislation is still an untested space for most global marketplaces. While some have an indulgent perspective on allowing web commerce, in France, the authorities have in place mechanisms that turn in favour of domestic providers.
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