Ministry of Commerce and Industry Resolution No. 106 of 2021 Issuing the Executive Regulations of Law No. 20 of 2019 Promulgating the Unified Law (Regulation) on Combating Commercial Fraud of the GCC States

Ministry of Commerce and Industry Resolution No. 106 of 2021
Issuing the Executive Regulations of Law No. 20 of 2019 Promulgating the Unified Law (Regulation) on Combating Commercial Fraud of the GCC States

Article One

The provisions of the Executive Regulations of Law No. 20 of 2019 Promulgating the Unified Law (Regulation) on Combating Commercial Fraud of the States of the Cooperation Council for the Arab States of the Gulf, attached to this Resolution, shall be applied.

Article Two

Resolutions that conflict with the provisions of these Regulations are hereby repealed, as is every provision that conflicts with their provisions.

Article Three

All competent authorities, each within its own competence, shall implement this Resolution, which shall come into force from the date of its publication in the Official Gazette.

Executive Regulations of the Unified Law (Regulation) on Combating Commercial Fraud of the States of the Cooperation Council for the Arab States of the Gulf

Article 1

In the application of the provisions of these Regulations, the words and expressions contained herein shall have the same meaning as set out in the Unified Regulation (Law) on Combating Commercial Fraud of the States of the Cooperation Council for the Arab States of the Gulf.

Article 2

The Supplier shall notify the Competent Authority of the existence of adulterated or spoiled goods upon discovering them or becoming aware of them. In all cases, the Competent Authority shall be notified on the form it prepares for this purpose. The Supplier shall also stop selling or dealing in the adulterated or spoiled commodity, and shall immediately begin the procedures for recalling it and warning against its use if such goods are likely to harm health and safety.

Article 3

If the Competent Authority establishes the existence of adulterated or spoiled goods in the markets or warehouses, it may notify the Supplier, by any means of notification, to take the procedures for recalling them from the markets or warehouses.

Article 4

Within (24) hours of receiving the notification referred to in the preceding Article (Article 3), the Supplier shall notify the points of sale and the entities to which it supplied the adulterated and spoiled goods to withdraw them and not to offer them for sale, and to place them under precautionary custody at a specified place or places of which it shall notify the Competent Authority.

Article 5

The Supplier shall announce the recall of the adulterated or spoiled goods in two local daily newspapers, at least twice, one of them in the Arabic language, within a period not exceeding (24) hours from the date of its receipt of the recall notification from the Competent Authority, in accordance with the following rules:
1) The size of the announcement shall not be less than 15 cm by 15 cm.
2) Stating the Supplier’s telephone number, fax or e-mail.
3) Placing the trademark of the goods in the announcement.
4) Stating the type, model and description of the goods and specifying the country of origin.
5) Stating the instructions to be followed for refunding the value of the adulterated or spoiled goods.
6) Any other data the Authority deems appropriate.
7) Specifying the period for recalling the adulterated or spoiled goods after the approval of the Competent Authority.
The Competent Authority may increase the number of times the announcement is made, and may add other means it deems appropriate for making the announcement.

Article 6

If the Supplier fails to take the procedures for recalling the adulterated or spoiled goods within (24) twenty-four hours from the date of the notice or the notification referred to in Articles (2 and 3) of these Regulations, the Competent Authority may take the recall procedures at the Supplier’s expense.
If, however, the Supplier cannot be reached after (24) twenty-four hours, the Competent Authority may take the recall procedures at its own expense until the Supplier is reached and these expenses are collected from it.

Article 7

The Supplier shall submit to the Competent Authority a report on the procedures for recalling the adulterated or spoiled goods within a period not exceeding (7) seven days from the start of the procedures, provided that the report includes the following:
1) The quantity and its source.
2) The quantity sold.
3) The quantity recalled and its value.
4) The quantity whose value has been refunded.
5) The places where it is located.
6) A list of the names and addresses of the natural and juristic persons to whom its value has been refunded.
The Competent Authority may request any other data or documents, or periodic reports, whenever necessary.

Article 8

The Supplier is prohibited from disposing of the goods placed under precautionary custody until a decision is issued concerning them in accordance with the procedures applicable in each State.

Article 9

The Supplier shall complete the recall of the adulterated or spoiled goods within the period specified in the recall announcement provided for in Article (5) of these Regulations. The Competent Authority may extend this period.

Article 10

The Competent Authority shall destroy the adulterated or spoiled goods in respect of which a decision for their destruction has been issued by the court or the Competent Authority. It may, if necessary, form a committee or a working team for the destruction from the relevant entities, and the decision issued on its formation shall specify the competences and working mechanism of the committee or team. In all cases, the head of the committee or team shall be from the Competent Authority.

Article 11

The destruction of the adulterated or spoiled goods shall take place within a period not exceeding (15) fifteen days, unless the court or the Competent Authority specifies otherwise.

Article 12

The destruction of the adulterated or spoiled goods shall be carried out in accordance with the applicable legislation relating to safety, health and the environment.

Article 13

If the Competent Authority wishes to use adulterated or spoiled goods in respect of which a judgment or decision for destruction has been issued, it shall submit an application to that effect to the competent court, including the following:
1) Specifying the aspects of use.
2) Specifying the mechanism by which the adulterated or spoiled goods will be used.
3) Specifying the entity benefiting from the use of the adulterated or spoiled goods.

Article 14

Without prejudice to the purchaser’s right to claim compensation, the Supplier shall refund the value of the adulterated or spoiled goods.
In all cases, the Supplier shall bear the cost of transport and storage or any other costs.

Article 15

If the Supplier refuses to refund the value of the adulterated or spoiled goods that have been announced or recalled, the purchaser may, within (6) six months from the date of the announcement, submit an application to the Competent Authority for the refund of the value of the adulterated or spoiled goods, provided that the purchase invoice, the sales receipt or any proof of the value of the goods is attached to the application.

Article 16

The Competent Authority shall notify the Supplier to refund the value of the adulterated or spoiled goods, and the Supplier shall refund the value within (5) five working days from the date of its receipt of the notification.
If the Supplier refuses to refund the value of the adulterated or spoiled goods, the Competent Authority may draw up a report of the incident and take legal action.

Article 17

The judicial police officer shall draw up a report on the seizure of adulterated or spoiled goods, placing them under precautionary custody, taking samples from them, their confiscation or destruction, or the release of the seized goods or goods placed under precautionary custody, or upon the closure of the shop or premises or the lifting of the closure, or upon the judicial police officer being prevented from performing his duties, provided that the report includes the following:
1) The date, time and place the report is drawn up.
2) The statement of the Supplier, or the name and capacity of the person against whom the procedures were carried out.
3) The commercial data of the establishment and the licences issued to it to carry on the activity.
4) The name and signature of the judicial police officer.
5) The name and quantities of the goods, their commercial data, specifying the type of violation, and the tools used in the fraud.
And any other data that the Competent Authority deems necessary to include in the report.

Article 18

The judicial police officer shall take samples of goods suspected of violating the provisions of the Unified Regulation for examination and analysis, as follows:
1) The judicial police officer shall draw up a report recording the taking of the samples, including the data set out in Article (17) of these Regulations.
2) Each sample shall be sealed in a manner that cannot be opened, and a label shall be attached including the following data:
a- The date the sample was taken.
b- The type and quantity of the sample.
c- The name and address of the Supplier.
3) Samples shall be taken randomly and in quantities commensurate with the requirements of the examination, taking into account the requirements of the approved standard specification of the product as to the number of samples taken, their preservation and their transport by appropriate means.
4) The samples shall be examined and analysed in specialised laboratories determined by the Competent Authority as appropriate to the nature of the suspected goods.
5) The examination or analysis shall be completed within a period not exceeding (15) fifteen days from the date the sample was taken, unless the nature of the commodity and the requirements of the examination require a longer period.
6) The suspected goods shall be placed under precautionary custody with the Supplier and at its expense during the period of their examination and analysis, and the judicial police officer shall draw up a report on the goods placed under precautionary custody, including the data set out in Article (17) of these Regulations, in the presence of the Supplier or its representative.
7) If the examination or analysis proves that the goods do not violate the provisions of the Law (Regulation), the precautionary custody of the suspected goods shall be lifted and they shall be released within three working days from the date of completion of the examination or analysis.
8) If the examination or analysis proves that the goods are adulterated or spoiled, the Supplier shall be notified thereof and shall dispose of the goods or destroy them in accordance with the provisions of the Law (Regulation) and these Regulations.
9) The Supplier shall not be entitled to any consideration or compensation for the value of the samples taken, and the Competent Authority may return these samples to the Supplier after the examination where possible and where it is established that they do not violate the provisions of the Unified Regulation (Law).

Issued on 23 May 2021 and published in the Official Gazette Kuwait Al-Youm on 30 May 2021.