Legal Aspect Details Applicable Laws & Regulations

1. Export Licensing (UAE)

Ensure your business has an export license issued by the relevant Department of Economic Development (DED) or free zone authority.

UAE Federal Law, Export Licensing Regulations (by DED or free zone authorities)

2. Customs Documentation (UAE)

Submit required export documentation including invoices, packing lists, certificate of origin (if required), and export declarations.

UAE Customs Law and Federal Customs Authority Regulations

3. Customs Duties & Tariffs (UAE)

Understand and comply with any customs duties and fees applicable for export goods from the UAE.

UAE Customs Duty Law

4. Restricted Goods (UAE)

Verify if the goods you plan to export are subject to export restrictions (e.g., military goods, dual-use items).

UAE Export Control Regulations

5. Free Zones (UAE)

If operating from a free zone, be aware of specific export benefits (duty exemptions) and the corresponding free zone rules.

Free zone regulations (e.g., JAFZA, Dubai Airport Free Zone, etc.)

6. Import Licensing (Sri Lanka)

Ensure that your goods comply with Sri Lankan import regulations and obtain an import license if required.

Sri Lanka Customs Act, Department of Commerce Regulations, Import Licensing Regulations

7. Customs Duties & Taxes (Sri Lanka)

All imports are subject to customs duties and VAT (currently 8%). Pay the appropriate duties upon importation.

Sri Lanka Customs Act, VAT Act, Sri Lanka Customs Regulations

8. Product Compliance (Sri Lanka)

Ensure your products meet Sri Lankan standards for health, safety, and quality. For certain items (e.g., food, electronics), compliance with Sri Lanka Standards Institution (SLSI) is required.

Sri Lanka Standards Institution (SLSI) Act, Health and Safety Regulations

9. Prohibited & Restricted Imports (Sri Lanka)

Ensure that the goods are not prohibited or restricted for import (e.g., hazardous materials, counterfeit goods).

Sri Lanka Customs Regulations, Import Prohibition Orders

10. E-Commerce Regulations (Sri Lanka)

Ensure compliance with Sri Lankan e-commerce laws, such as the Electronic Transactions Act and Consumer Protection Act.

Electronic Transactions Act (2006), Consumer Protection Act

11. Consumer Protection (Sri Lanka)

Comply with consumer protection laws, providing clear return policies, product descriptions, and refund terms.

Consumer Affairs Authority (CAA) Act, Sri Lanka Consumer Protection Laws

12. Sales Tax/VAT (Sri Lanka)

Understand VAT obligations on sales within Sri Lanka. If your turnover exceeds the threshold, you must register for VAT.

Sri Lanka VAT Act, Sri Lanka Tax Regulations

13. Double Taxation (UAE/Sri Lanka)

Check if the Double Taxation Agreement (DTA) exists between the UAE and Sri Lanka to avoid double taxation on profits.

UAE-Sri Lanka Double Taxation Agreement (if applicable)

14. Intellectual Property (IP)

Ensure your products do not infringe on any trademarks, patents, or copyrights. Register your own IP in both countries if applicable.

UAE Trademarks Law, Sri Lanka Intellectual Property Act

15. Data Privacy & Security (Sri Lanka)

Ensure compliance with Sri Lankan data protection laws (or international standards such as GDPR) if collecting customer data.

Data Protection Act (Sri Lanka) (under development), GDPR (if applicable for international data processing)

16. E-Commerce Platform Compliance

If using third-party e-commerce platforms (e.g., Daraz.lk), comply with platform-specific policies, terms, and conditions.

Terms and Conditions of E-Commerce Platform (e.g., Daraz, Takas)

17. Shipping & Logistics

Ensure compliance with international shipping laws, proper incoterms, and reliable freight forwarding services.

International Shipping Regulations, Incoterms 2020, Sri Lanka Customs Regulations

18. Contractual Obligations

Draft clear contracts for transactions with suppliers, vendors, and customers. This should include payment terms, dispute resolution, and delivery terms.

Commercial Contracts Laws, UAE Civil Code, Sri Lankan Commercial Laws

19. Payment Processing (Cross-Border)

Ensure compliance with cross-border payment regulations, including setting up international payment gateways and managing currency conversions.

UAE Central Bank Regulations, Sri Lanka Central Bank Rules on Cross-Border Payments, Payment Gateway Regulations

20. Shipping Insurance

Insure your goods during transit to protect against potential damage, loss, or theft, and understand the shipping insurance policies available.

Marine Insurance Laws, International Shipping Regulations

21. Return/Refund Policies

Clearly outline your return and refund policies on your website to comply with Sri Lankan consumer laws and improve customer satisfaction.

Sri Lanka Consumer Protection Laws, Electronic Transactions Act (Sri Lanka)

22. Product Liability

Ensure your products are compliant with health and safety regulations in Sri Lanka. Non-compliance could expose your business to product liability claims.

Product Liability Laws (Sri Lanka), Consumer Protection Act

23. Regulatory Audits & Compliance

Be ready for potential audits by Sri Lankan authorities regarding compliance with import regulations, taxes, and consumer laws.

Sri Lanka Customs Audits, Taxation Audits, Consumer Affairs Authority Audits

24. Payment Gateway Integration

Use reliable international payment gateways for cross-border transactions. Consider currency exchange rates, transaction fees, and local payment preferences in Sri Lanka.

UAE Central Bank Regulations, Sri Lanka Central Bank Rules, Payment Gateway Regulations

25. Shipping Insurance

Insure goods during international transit to protect them from potential loss, damage, or theft. Policies should cover high-value items during shipping.

Marine Insurance Laws, Shipping Regulations

26. Incoterms (Shipping)

Define the Incoterms (e.g., CIF, FOB) for shipping, outlining when risk and responsibility for goods transfer from seller to buyer.

Incoterms 2020, International Commercial Terms

27. Transparent Return/Refund Policy

Ensure clarity in your return and refund policies on your website, complying with Sri Lankan consumer protection laws and making them easy for customers to access.

Sri Lanka Consumer Protection Act, Sri Lanka Electronic Transactions Act

28. Product Safety & Compliance

Ensure your products meet Sri Lankan health and safety standards. Non-compliance can result in product liability issues.

Sri Lanka Consumer Protection Act, SLSI (Sri Lanka Standards Institution)

29. Document Management (Audits)

Maintain organized and accessible records of all transactions, customs paperwork, and product information in case of audits by Sri Lankan authorities.

Sri Lanka Customs Audits, Sri Lanka Taxation Audits, Consumer Affairs Audits

Preventing customer fraud :

To address situations where customers claim that they haven’t received the product despite it being delivered, it’s essential to implement a set of proactive measures and clear policies. Here are several strategies that can help protect your business and resolve such disputes:

Clear Shipping and Delivery Confirmation
  • Tracking Numbers: Always provide tracking numbers for each order to custom This allows both you and the customer to track the package in real-time, ensuring that it has been delivered to the correct address.
  • Delivery Confirmation: Use signed delivery confirmation or Proof of Delivery (POD) for high-value items or orders where there’s a risk of such claims. If the package is signed for by the customer or someone at their address, it provides solid evidence of receipt.
  • Third-Party Shipping Services: Work with trusted, reliable shipping companies with a reputation for thorough tracking and delivery syste Ensure that the delivery service you choose provides real-time updates on the delivery status and even photographic proof of delivery when possible.
Delivery Photos
  • Photo Verification: Encourage or require the delivery service to take photographic evidence of the package at the delivery loc Some shipping companies offer a photo option, where a picture of the package at the recipient’s doorstep is captured and provided as part of the delivery documentation. This will serve as proof that the item was delivered to the correct address.
  • Ask for Customer’s Confirmation: Once the customer receives the item, you can ask them to confirm receipt via a follow-up email or SMS with a request for acknowledgment of the package’s arrival.
Clear Communication and Documentation
  • Shipping Terms & Conditions: Make sure your e-commerce platform clearly explains the shipping process, including timelines, delivery confirmation, and the possibility of shipping e Having these details in your terms and conditions will help in any dispute.
  • Customer Agreement on Delivery: In your terms of service, make it clear that the customer agrees to notify you of any shipping issues within a specified period (e.g., 48-72 hours) of receiving the package.
  • Customer Communication Log: Maintain a log of all communications with customers, especially those who claim they didn’t receive the produc This helps track the resolution process and can be used as evidence if the issue escalates.
Dispute Resolution Policy
  • Investigation Process: Develop a clear internal process for investigating delivery c When a customer claims they did not receive the product, start by verifying the shipping details and confirming that the shipping company recorded a successful delivery. Reach out to the courier company to gather additional information, such as the delivery address and signature confirmation.
  • Customer Investigation Support: Ask the customer to check with neighbors, building management, or receptionists (if applicable) for the packa In some cases, delivery services leave packages with someone else in the household or at a nearby location
  • Resolution Timeframe: Set a reasonable timeframe for resolving delivery disputes (e.g., 7-14 days) and communicate this to the customer upfront.
Fraud Prevention Mechanisms
  • Address Verification: Use an address verification system to check whether the delivery address provided is correct before processing the orde
  • Prepayment or COD Policy: For new customers or high-value orders, consider using prepaid payments instead of Cash on Delivery (COD). If using COD, ensure the delivery agent verifies the identity of the recipient to avoid fraudulent claims of non-receipt.
  • Verification on High-Value Orders: For expensive or high-risk products, consider adding additional identity verification steps before processing the order (e.g., phone number verification, ID check for delivery).
Insurance for Shipping
  • Insurance for Shipments: If the product is high-value or if you are dealing with international shipments, consider shipping insurance. This will protect you against losses or claims that items were not received, and can cover the cost of reshipping or compensating the custom
  • Insurance Clauses in Terms & Conditions: Include an insurance clause in your shipping policy, so customers are aware that some shipments may be covered under insurance and that the process of making a claim may involve cooperation between you and the carrier.
Dispute Resolution via E-Commerce Platform
  • If selling via a third-party platform (e.g., Daraz, Amazon, or your own site), ensure that your platform has a dispute resolution mechanism. Most platforms have buyer protection policies that can help resolve disputes, so make sure you are familiar with the proce
  • Platform Mediation: If the customer escalates the claim, use the platform’s dispute resolution service to mediate the issue. Be ready to provide proof of delivery (e.g., tracking details, delivery confirmation, photos) to defend your case.
Customer Feedback & Reviews
  • Post-Delivery Feedback: After the product is delivered, ask customers for feedback on the delivery proce You can use this feedback to improve your service and identify any recurring problems with delivery or shipment.
  • Public Reviews & Ratings: Encourage satisfied customers to leave reviews or ratings of their shopping experienc Positive feedback can counteract negative claims and help build credibility for your store.
Refund or Reshipment Policy
  • Refund or Replacement: If, after a thorough investigation, it is determined that the item was indeed lost or misdelivered, offer the customer a refund or replacement to maintain customer satisfacti Clearly outline this policy in your terms and conditions, including any time limits for claims.
  • Clear Return Policy: Make sure your return policy includes clauses for undelivered or damaged goods and outlines the timeframe within which the claim can be raised (e.g., within 14 days).Legal Protections
Legal Protections
  • Terms of Service Agreement: Always have a solid Terms and Conditions agreement for your e-commerce business that includes clauses around delivery issues, shipping disputes, and refund policies. This agreement will protect your business from fraudulent claims and clarify the dispute resolution proce
  • Liability Clause: Ensure your liability clause clearly outlines the scope of your responsibility in terms of delivery errors and the process for resolving them.
Summary Steps for Overcoming Claims of Non-Delivery:
Action Description

1. Provide Tracking Info

Share tracking numbers with customers and ensure real-time visibility.

2. Use Signed Confirmation

Require signed delivery confirmation or Proof of Delivery for high-value items.

3. Implement Photo Verification

Use delivery photos to show packages at the recipient's location.

4. Have a Clear Dispute Resolution Process

Establish a clear process for investigating and resolving delivery issues.

5. Implement Fraud Prevention

Use address verification, prepayment policies, and identity checks on high-risk orders.

6. Use Shipping Insurance

Consider insuring high-value or international shipments to cover potential losses.

7. Set Timeframes for Claims

Establish a time limit within which customers must report delivery issues (e.g., 48 hours post-delivery).

8. Offer Refund or Reshipment

Offer refunds or replacements for legitimate claims after investigation, as per your policies.

9. Use Platform Mediation

If using a third-party platform, utilize their dispute resolution mechanisms for escalated claims.

10. Strengthen Terms & Conditions

Clearly outline your policies around delivery disputes, returns, and refunds in your terms and conditions.