Forgot your password?

Back to login

Kuwait Parliament "deals 1st blow to monopoly" since 60s
February 9, 2016, 5:47 pm

The National Assembly, during its regular session on Tuesday, approved trade agencies' bill and referred it to the Government. "What the Assembly endorsed today is first blow to monopolization of the trade agencies since 1965," announced Parliament Speaker Marzouq Ali Al-Ghanim in a statement following the approval affirming great significance of the parliamentary measure that came amid various State schemes intended to cope with economic problems, in shadow of declining oil prices.

The attached clarification memo of the bill indicated rapid economic and commercial development, locally and abroad; four decades after effecting Law 36/1964, which regulated the trade agencies. "Therefore, it became necessary to review the law provisions and enact a new one that could cope with the current situation, namely the development in the field of regulating the trade agencies." First provision, genuinely, says that a trade agencies is any deal where a trader or a company in the State is entitled to promote or distribute commodities or products or services in his (her) capacity as the agent, distributor or owner of the franchise, or owner of the product license or the original importer, in exchange for profit or commission.

The second article largely incorporated rules of the Law 68/1980, where the agent must be a citizen or a non-Kuwait provided that share of the Kuwait partner must account to 51 percent of the capital. The same article mentioned other rules, such as registration in the commercial record and having a permit. Imported products must bear accredited GCC and international specifications, along with a guarantee by the producing factory or plant.

The fifth provision says the agent must provide maintenance and repair of products, imported by a third party, and to be marketed in Kuwait. They must be free of any defect. Moreover, spare parts must be provided, along with the maintenance, therefore, workshops must be set up.

Article 10th states that the Kuwaiti courts shall undertake all suits related to implementation of the abovementioned bill. Arbitration can be sought to settle disputes. Article 21st grants the Minster of Commerce the right to issue executive regulations and resolutions for effecting the law, during six months since publishing it in the official gazette.

Source: KUNA

Share your views

"It is hard to fail, but it is worse never to have tried to succeed."

"Envy comes from wanting something that isn't yours. But grief comes from losing something you've already had."

Photo Gallery