A new law issued yesterday is expected to curb monopolistic practices in the country and facilitate the availability of quality goods and services at competitive rates.
HH the Emir Sheikh Tamim bin Hamad al-Thani issued Law No 2 of 2016, amending some provisions of Law No 8 of 2002 on the Organisation of Business of Commercial Agents.
Stressing the importance of the new law, HE the Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani said the amendments would help prevent monopoly and make high-quality goods and services available at competitive prices.
He noted that the new law’s stipulations would serve the interests of all concerned by providing multiple opportunities for competition, which would open new horizons in the local market and create an investment-friendly environment that would attract new businesses.
This, in turn, is expected to give a further boost to the national economy and sustain Qatar’s position globally across different economic indices.
Earlier this month, the Cabinet had issued a draft law regulating the import and sale of goods by commercial agents and traders in Qatar, as reported by Gulf Times.
According to the amendments, a commercial agent is one who commits himself, under a distribution contract, to promote and distribute goods, products and services for industrial or commercial purposes, provided he is the sole distributor.
Article No 4 of the new law stipulates that the Cabinet, upon a recommendation from HE the Minister of Economy and Commerce, may exempt some services and goods from the scope of the law.
Traders included on the commercial register may import goods covered by the agency even if these products have a local agent. The minister will set the terms and conditions regarding the principle of reciprocity.
Article No 5 stipulates that the “agent can return to the ‘principal’ to get commission in accordance with the agreement between them if the goods are imported by third parties for trading purposes”. The agent, however, does not deserve any commission on goods imported for personal use or re-export.
Meanwhile, Article No 19 says the competent directorate may license the establishment of non-agent workshops for some of the goods covered by the agency contract. The rules regulating these will be set by HE the Minister.
Penalties for violating different stipulations of the law include six months in jail and a maximum fine of QR20,000, or both.
Those who make false claims of being commercial agents face a maximum jail term of three months and a fine of up to QR10,000, or both.