Saturday 01 / February / 2025
Muscat: A Ministerial Decision No. 412/2023 has been issued by the Ministry of Commerce, Industry and Investment Promotion in cooperation with government departments for combating illicit trade.
The decision, which seeks to address the economic and social impacts of illicit trade on business owners and society, was issued in response to appeals from citizens calling for an end to this negative practice that, they said, has damaged their interests for years.
It will be implemented after 90 days from the date of its publishing in the Official Gazette.
The decision reflects the ministry’s keenness to eliminate the negative effects of illicit trade on the national economy and local markets.
The rise in cases of commercial fraud impacted the labour market by introducing unfair competition with entrepreneurs and owners of small and medium enterprises (SMEs), besides facilitating tax evasion and avoidance of standard procedures.
The decision is a step forward in implementing the executive regulations of the Foreign Capital Investment Law, furnishing an attractive investment environment and streamlining procedures for registering foreign firms, said the ministry.
The decision defines the conditions necessary for issuing approvals, permits and licenses related to investment projects.
Call to report cases
Through advertising, the Ministry of Commerce, Industry and Investment Promotion should encourage citizens and residents, and urge them to contribute to reducing cases of hidden trade and reporting them, and take measures it deems appropriate to implement the provisions of this article.
Hidden trade is defined as enabling a non-citizen to practice business and commercial activities for his own account while he is not authorised to do so, through the use of licenses, commercial registers, and approvals issued to the concealed person.
The decision indicated that the implementation of the provisions should be in accordance with the mechanism determined by the Ministry of Commerce, Industry and Investment Promotion, taking into account the nature and size of each activity subject to the provisions of this decision, which indicated that every person who becomes aware of any person’s conduct of hidden trade must inform the Ministry of Commerce, Industry and Investment Promotion of that immediately, with the evidence of the violations stipulated in this decision, including electronic evidence.
The Ministry of Commerce, Industry and Investment Promotion may also assign some of its specialized employees in the Ministry’s general office or directorates and departments affiliated to it to monitor establishments, to ensure the implementation of the provisions of this decision, and take necessary measures.
The decision to combat hidden trade confirmed that the Ministry of Commerce, Industry and Investment Promotion may impose one of the following penalties: Striking off the activity from the commercial register, or an administrative fine of OMR5,000, or an administrative fine of OMR10,000.
In the case of committing violation for the second time, with the activity suspended for a period of three months, or an administrative fine of OMR15,000 in the event of committing the violation for the third time, with the activity being struck off from the commercial register, and the activity may only be re-registered one year after the date of cancellation.
