When your package arrives in the United Arab Emirates from overseas, it has to go through a customs clearance process handled by the Federal Customs Authority of the UAE government.
In this guide, we'll talk about important topics such as the customs clearance process in the UAE, the required clearance documentation, the authorities in charge, the import procedure, and how to pay customs duties to the UAE government.
What is customs clearance?
Customs clearance is a mandatory procedure enforced by the government authorities of each country to make sure that shipments can move in and out of a country smoothly and without any issues. (import and export).
Customs clearance includes identifying and supervising shipments at airports, seaports, and border crossings. This process ensures that all products or shipments transported from one country to another have the required permits and government approvals.
It means all the exported or imported cargo should produce a customs document or declaration confirming the payment of tariffs and approval of goods by the controlling authorities for transportation.
Customs clearance is usually done in just a few minutes or hours. But sometimes, it can take longer if clearance documents are missing or the goods need to be re-examined by customs officials.
Getting started with customs clearance in the UAE
If you're looking to export or import goods in the UAE, you'll need to make sure that all the necessary paperwork is verified. You also have to ensure the payment of customs duties and VAT. There may also be other charges associated with storing and inspecting your goods.
i) Each emirate in the UAE has its own customs authority to manage the customs clearance process, which is governed by the Federal Customs Authority (FCA).
ii) The FCA creates and enforces customs policies, monitors the execution of laws and regulations related to customs, and represents the UAE at national and international levels.
iii) According to the Gulf Cooperation Council (GCC), local customs authorities can create customs policies for each emirate and undertake administrative tasks under their jurisdiction.
iv) Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah are the seven states that make up the local customs department in the UAE.
- Import customs procedures in the UAE
It's important to produce the following original documents for faster customs clearance when you import products to the UAE:
i) Commercial Invoice printed on the shipper's letterhead with stamp & signature
ii) Packing List on the shipper's letterhead with stamp & signature
iii) Certificate of Origin
iv) Shipping Bill of Lading
v) Letter of Duty Exemption (from the Ministry of Finance)
vi) Original Health Certificate (for food products)
vii) Original Halal Slaughter Certificate (for food products)
viii) Original Phytosanitary Certificate (for food products)
ix) Certificate of Analysis (for food products)
For importing restricted/prohibited/duty-exempted goods to the UAE, the importer must get an authorized permit from the controlling authority. After that, the importer should submit an Import Declaration application for UAE customs clearance.
Permission from the controlling authorities is explicitly required for importing the following goods to the UAE:
i) Pharmaceutical Goods
ii) Live animals, birds, fish, and pets
iii) Meat, beef, and poultry products
iv) Weapons and arms
v) Cigarettes, beverages, and alcohol
vi) Advertising and media products
vii) Transmitters and radio equipment
Factors influencing the calculation of customs charges
Customs duties and taxes in the UAE are calculated using the product's CIF value (Cost, Insurance, and Freight value).
The UAE follows a GCC standard tariff, which includes customs duties set at 5% of the CIF value of most commodities.
i) Products like sweetened beverages, alcohol, and carbonated goods are subject to a 50% duty.
ii)100% tax on Electronic smoking devices
iii) Pharmaceuticals and agricultural products are eliminated from customs charges.
iv) Severe restrictions are imposed on importing products like alcohol, tobacco, guns, and pig products (often prohibited from entering the country).
v) A 5% tax will be charged on a shipment if the total value of your products exceeds 1000 AED.
For example, suppose the estimated cost of your goods is 1000 AED. In that case, the receiver must pay the destination country's government an extra 50 AED in taxes.
The UAE FCA Unified Custom Tariff enlists terms exempt from tariffs upon entering the country, and the GCC Common Customs Law specifies which terms are free from the customs charges imposed by the UAE.
Advantages of hiring the services of a freight forwarder
A freight forwarder is a professional company or individual that provides logistics services for transporting your goods. They coordinate the movement of goods from one location to another.
Today, many freight forwarders offer customs brokerage services as part of their service package.
Customs brokerage services offered by freight forwarders
i) Handle all the documentation and coordination required to get your shipment through customs verification most efficiently.
ii) Manage all the paperwork and fees (duty payments) for clearing your shipment through customs.
iii) Save your time and money by eliminating the hassles of dealing with customs clearance yourself.
Are you searching for warehouses for rent in the UAE?
If you're looking for warehouses for rent in the UAE, flexible warehousing is an easier and more convenient option that you can consider. You get access to a warehouse space in less than a week's time and with the flexibility of paying for only what you use.
Check out more about on-demand warehousing here.
Or you can get in touch with our team to know more. Cargoz has partnered with 300+ warehouses and can provide storage spaces of all kinds in almost every location in the UAE.