The Commercial Transactions Law of the United Arab Emirates (UAE) governs all commercial transactions in the country, including international sales. The CTL specifically addresses international sales on ships and at airports, providing a clear and comprehensive framework for these types of transactions.
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Sales on Ships
The Commercial Transactions Law (CTL) of the UAE is a federal law that regulates commercial transactions in the UAE. It was first issued in 1993 and has been amended several times since then. The most recent amendment was in 2022.
The CTL defines a sale on a ship as a sale that is made while the ship is in the UAE or while it is in transit to or from the UAE. The Commercial Transactions Law provides that a sale on a ship is considered to be made in the UAE if the seller is located in the UAE or if the ship is registered in the UAE.
CTL Requirements for a valid sale on a ship
The Commercial transaction law also sets forth the requirements for a valid sale on a ship. These requirements include:
- The sale must be in writing.
- The sale must be signed by the seller and the buyer.
- The sale must be witnessed by two witnesses.
The CTL covers a wide range of topics, including:
- The definition of a commercial transaction
- The formation of contracts
- The performance of contracts
- The termination of contracts
- The liability of parties to contracts
- The sale of goods
- The carriage of goods
- The agency
- The arbitration
Sales at Airports
The CTL defines a sale at an airport as a sale that is made while the goods are in the custody of the airport operator. The CTL provides that a sale at an airport is considered to be made in the UAE if the seller is located in the UAE or if the goods are being exported from the UAE.
The Commercial Transactions Law also sets forth the requirements for a valid sale at an airport. These requirements are the same as the requirements for a valid sale on a ship.
Framework
The Commercial Transactions Law provides a clear and comprehensive framework for international sales on ships and at airports in the UAE. The CTL’s provisions help to ensure that these types of transactions are conducted in a fair and transparent manner.
In addition to the CTL, there are a number of other laws and regulations that apply to international sales in the UAE. These laws and regulations include the Customs Law, the Foreign Trade Law, and the Commercial Companies Law.
Businesses that are involved in international sales in the UAE should be familiar with the CTL and the other applicable laws and regulations. By understanding the legal framework for international sales, businesses can help to ensure that their transactions are conducted in a compliant manner.
How can AHG Help
- Preparing your financial statements: We can help you prepare your financial statements in accordance with the CTL. This will ensure that your statements are accurate and compliant with the law.
- Tax planning: We can help you with tax planning to minimize your tax liability under the CTL. We can also help you prepare your tax returns and ensure that you are compliant with the tax laws.
In addition to these specific services, We can also provide you with general advice on business matters, such as how to set up your business, how to manage your finances, and how to comply with other relevant laws.
If you are a business operating in the UAE, it is important to have an accounting firm that understands the CTL and can help you comply with the law. This will help you avoid any potential problems and ensure that your business is operating smoothly.