Muscat: The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has issued Ministerial Resolution 412/2023 to combat hidden trade in response to successive appeals from citizens over the past years to stop this phenomenon, which has economic and social repercussions on business owners and society.
This decision will come into force within 90 days from the date of its publication in the Official Gazette.
The Ministry is keen to avoid the negative effects of hidden trade on the national economy and local markets, which include cases of commercial fraud, impact on labor market regulations, unequal competition with entrepreneurs and small and medium enterprises, and tax evasion, among others.
MOCIIP is urging citizens and residents to contribute to reducing cases of hidden trade and reporting them.
The hidden trade is seen as enabling a non-citizen (expatriate) to practice business and commercial activities while he is not authorized to do so, through the use of licenses, commercial registers, and approvals issued to the concealed person - be it a natural or legal person (company).
The decision states that every person who becomes aware of any person’s conduct of concealed trade must inform MOCIIP of that immediately, which can be also the electronic evidence.
The ministry may also assign some of its specialized employees to monitor establishments, enter them at any time to ensure the implementation of the provisions of this decision, and take the necessary measures against the violations.
MOCIIP may impose one of the following penalties - striking off the activity from the commercial register or an administrative fine of RO5,000 or an administrative fine of RO10,000 in case the violation is committed for the second time. There will be a suspension of the activity for a period of 3 three months, or an administrative fine of 15,000 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 not be re-registered except after one year has passed from the date of the cancellation.
The ministry said that the decision to combat hidden trade came as part of the implementation of the executive regulations of the Foreign Capital Investment Law and to create an attractive investment environment in the Sultanate of Oman.
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