Customs Duties

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Customs Duties

Customs Duties

In the United Arab Emirates (UAE), customs duties are governed by specific laws and regulations, which are primarily aligned with the unified customs laws of the Gulf Cooperation Council (GCC) states. Here are the key points regarding customs duties in the UAE:

Calculation of Customs Duty

The customs duty rate in the UAE is generally 5% of the value of the goods, calculated on the Cost, Insurance, and Freight (CIF) value, which includes the cost of transport until the goods arrive at the port of destination

Types of Duties

Customs duties can be either ad valorem (a percentage of the value of the goods), specific (an amount levied on each unit of the goods), or a combination of both

Exemptions and Variations

Certain goods are exempt from customs duties, such as personal and household items, gifts up to AED 300, and specific commodities listed in the Unified Customs Law and other resolutions
Certain duty drawbacks are available for imported goods used for industrial and processing activities per customs department rules and regulations.
Some goods have higher duty rates, such as:

1 50% on alcohol

2 100% on tobacco products

3 Other specific rates for items like steel, cement, and certain chemicals

Factors Influencing Customs Charges

The rate of customs duty can be influenced by several factors, including:
The value of the goods
The country of origin
The type of goods
Trade agreements between the UAE and the exporting country

Customs Clearance Process

Customs clearance involves preparing and submitting relevant documents (such as shipping documents, certificates of origin, and invoices), assessing the shipment to determine applicable taxes and duties, paying the appropriate taxes and fees, and releasing the goods for delivery
The UAE has approximately 45 FTZs where imported goods are not subject to duties, and re-exports from these zones to destinations outside the GCC Customs Zones are also duty-free

Payment and Release of Goods

Goods cannot be released unless all customs procedures are completed and the customs duties and taxes are paid. However, goods can be released before payment against bank guarantees under specific conditions

These regulations ensure that all imported goods comply with UAE customs laws and that the appropriate duties are levied and collected.

The UAE’s import value, free of customs charges, has recently been reduced for Dubai. As of January 1, 2023, Dubai Customs implemented a new threshold for customs duty exemption on imported consignments.

For accurate and current information, it’s recommended to consult official UAE customs websites or seek assistance from professional service providers such as logistics companies and freight forwarders.