Month: <span>October 2024</span>

Imports to the United Arab Emirates (UAE) are increasing steadily due to several reasons, such as the UAE’s strategic location, consumer market, stable currency, expanding online retail sector, and comprehensive economic partnership agreement (CEPA) with India. It was estimated that there was an increase of about 23% in the UAE’s imports in 2022 compared to the previous year. 

 

As businesses increasingly import and export their goods, they should be aware of the rules and regulations about UAE customs. Hence, we have compiled for you some useful information about UAE customs regulations to help you stay informed. 

What is customs clearance in UAE Customs Regulations? 

Customs clearance in the UAE customs regulations is the process by which it is confirmed that goods entering or leaving the country comply with the local laws. As per UAE customs rules and regulations, several taxes and import duties are imposed on these goods. Further, these regulations also require departing and arriving passengers carrying financial instruments or cash exceeding AED 60,000 to declare it to customs authorities. Customs clearance involves the following steps: 

• Preparing and submission of relevant documents such as shipping documents, certificates of origin, and invoices to the customs authorities. 
• Assessment of shipment to decide the applicable taxes and duties
• Payment of relevant taxes, duties, and fees
• Release of goods for delivery

Factors Affecting Customs Charges in UAE Customs Regulations

The following factors influences customs charges under UAE customs regulations: 

• Duty in UAE Customs Regulations

Every country imposes a tax on all imported products called duty. The calculation of duty is as a percentage of the product’s value. Several factors affect the rate of customs duty. The most important of these are the value of goods, country of origin, type of goods, and trade agreements between the UAE and the concerned nation. 

• Value Added Tax (VAT) in UAE Customs Regulations

VAT is a tax imposed under the UAE customs rules and regulations on duty, shipping charges, and the cost of goods. According to the VAT law in the UAE, businesses should get a VAT registration if the total value of taxable imports or supplies within a year exceeds AED 375,000. 

• Anti-dumping Duty in UAE Customs Regulations

The UAE customs rules and regulations enforce anti-dumping duty on import to maintain fairness in market conditions for local goods manufacturers.  This discourages the lower cost of imported goods such as ceramic tiles, car batteries, and hydraulic cement compared to the native market rate.

List of banned items in UAE under the UAE Customs Regulations

The following items are banned or restricted under the UAE customs rules and regulations: 

• Alcohol
• Narcotic or recreational drugs
• Counterfeit currency
• Black magic items
• Artwork of publications defying Islamic teachings and values
• Gambling tools
• Weapons or replica weapons
• Cylinders of non-flammable compressed gases
• E-cigarettes
• Powders in unsealed packaging or exceeding 350 ml per item
• Electronic devices (restricted)

Different customs departments implementing UAE customs regulations 

Every Arab emirate has a customs authority of their own. The Federal Customs Authority (FCA) represents the UAE internationally and nationally and carries out the UAE customs rules and regulations. 

Further, the GCC customs law supports the following local customs agencies to enact customs-related policies for the emirates and run their administrative tasks: 

• Customs in Abu Dhabi
• Customs in Dubai
• Customs in Sharjah
• Customs in Ajman
• Customs in Umm Al Khaimah
• Customs in Fujairah

Updates to the UAE Customs Regulations

The UAE customs regulations saw significant updates in 2024. Some of these are: 

• October 2024: An amended version of Executive Regulation of Federal Decree’s Law No. 8 of 2017 was published by The Federal Tax Authority (FTA). The law pertains to value-added tax (VAT). Implementation of the new amendment is scheduled in November 2024. 
• September 2024: Implementation of the updated template for the unified GCC Print of Customs Declaration in the Mirsal system. A QR code that enables the scanning and verification of the declaration information and some fields to add a few additional information are the updates to the template.  
• January 2024: Implementation of the amendments to the unified customs tariff table of the UAE customs rules and regulations. HS codes for products in sectors such as computers, chemicals, machinery and equipment, pharmaceuticals, transport equipment, and food & beverages are affected by the amendments. 

How would Ryan Worldwide help you conform to UAE customs regulations? 

Ryan Worldwide is a Dubai-based company focusing on shipping and logistics. Without customs clearance services, we help our clients comply with UAE customs regulations and prevent mistakes and penalties. At Rayn, you can avail of the following services: 

• Logistics and warehouse facility
• Customs clearance in Dubai
• Freight forwarding
• Wholesale and distribution
• Moving services, including pet relocation
• Transport services
• Exhibition/Expo Import clearance
• Cites and Caviar Import

Frequently Asked Questions: 

1. Which are some of the items banned in Dubai customs under the UAE customs regulations? 

Some of the banned items in Dubai customs under the UAE customs regulations are: 

• Narcotic drugs
• Gambling
• Nylon fishing nets
• Live swine
• Tires (Used, reconditioned, and inlaid)
• Radiation
• Items defying Islamic faith
• Sharp objects
• Firearms
• Laser guns
• Walkie-talkies
• Drills
• Flammable prototypes
• Liquids
• Fresh foods, live plants, and seeds

1. What do you mean by duty-free in the UAE? 

Duty-free in UAE refers to the duty-free shops in Dubai, Sharjah, Abu Dhabi, Ras Al Khaimah, and Fujairah airports selling luxury products such as perfumes, jewelry, and watches. 

1. Which items enjoy duty exemption under UAE customs regulations? 

The following items enjoy duty exemption under the UAE customs regulations: 

• Personal and household items
• Gifts (up to AED 3,000)
• Tobacco (Limited quantity)
• Alcohol (Limited quantity)
• Electronics
• Imported by specific entities
• National factory shipments
• Rough diamonds
• Goods exported to other countries

 

The United Arab Emirates today plays an important role in the world in logistics and international trade. This is because it is a hub for international trade involving Asia, Europe, and Africa. It is observed that the Dubai International Airport alone witnessed the transportation of more than 2.10 million tons in 2023. 

It is significant for you to have enough knowledge about the complex procedures and regulations involved in international shipping to navigate the process with ease. Hence, we have compiled for you a list of the six most important documents for international shipping in the UAE. 

What are freight documents? 

All the essential commercial and legal documentation required for domestic and international shipment of goods are together called freight documents. These documents are of immense importance in the logistics process. This is because these documents provide the correct identification and tracking of the goods throughout the process of shipment.  

Essential documentation for international shipping in UAE

The following are some of the essential documents required for import and export in the UAE: 

1. Certificate of Origin:

A certificate of origin is one of the most important documentation for international shipping in UAE as it certifies that the goods being shipped have their origin in a particular country. Certificates of origin are of two types: non-preferential and preferential. These certificates are verified by customs authorities to decide the eligibility of goods for applicable free trade agreement rates. 

The documentation for international shipping in UAE also decides whether the shipment complies with the trade policies and import laws of the countries of import or export. This certificate is especially needed for customs clearance in Dubai if the importer needs preferential duty treatment for the goods under the free trade agreement (FTA).

2. Commercial invoice: 

One of the documents required for import and export in the UAE that describes each item in the shipment with its value is called a commercial invoice. This documentation for international shipping in the UAE also mentions the unit price and quantity of each item. 

Businesses use this document while selling their services and products to other businesses. Commercial invoices also state the due date of the payment and other terms of payment.  

3. Bill of lading:

The bill of lading is one of the main documents required for import and export in UAE during the customs clearance. This documentation acts as evidence of the agreement between the carrier and the shipper. Hence, it is necessary to pay attention to the accuracy of the information in it. 

This documentation for international shipping in the UAE outlines the conditions and terms of the shipping agreement. As a document of title bill of lading gives the shipper the right to possess goods at the destination. It is also documentation for international shipping in UAE that acts as a receipt for the shipped goods.  

4. Import or Export license:

Another documentation for international shipping in UAE that is necessary for customs clearance is a valid import/export license. These documents are prerequisites for the shipment of restricted and controlled items like pharmaceuticals, military equipment, agricultural products, and dual-use items. Hence the failure to provide these licenses could result in the seizure and delay of the goods. 

These documents required for import and export in UAE certify a company to pursue trade activities. They can apply for the necessary licenses at the trade regulatory authorities of a country by stating clearly the intended use and other necessary details of the goods.  

5. Insurance certificate: 

One of the documents required for import and export in UAE that proves insurance coverage of a shipment is the insurance certificate. This document protects your shipment against theft, loss, or damage during transportation and empowers the shipper or consignee to claim compensation during such incidents. The three main types of insurance certificates include: 

• free-of-charge average insurance
• average insurance coverage
• all-risk insurance coverage

5. Letter of instruction from the shipper: 

A letter of instruction is documentation for international shipping in UAE that a shipper provides to a carrier or a freight forwarder. This document instructs how to handle, ship, and deliver the goods. Other details that are included in the letter are: 

• Information about the consignee and shipper
• List of goods and their descriptions
• Contact information
• Special requirements about hazardous materials, temperature control, and more

The other important documentation for international shipping in UAE includes airway bills, customs declaration forms, importer-exporter codes, packing lists, and dangerous goods certificates. 

Conclusion: 

Proper documentation is the lynchpin of international shipping of goods to the UAE. These documents verify that you comply with trade laws. Further, they streamline the cross-border movement of goods and avoid legal complications, financial losses, or delays with the shipment. Hence, it is advisable to seek the service of a good logistic and shipping service provider like Ryan Worldwide to ease the fuss of paperwork and streamline the shipment process.  

Frequently Asked Questions: 

1. Who should ensure the accuracy of the documents required for import and export in UAE? 

The shipment’s sender should ensure the accuracy of the documents required for import and export in UAE. 

2. What are the consequences of incomplete and inaccurate documentation for international shipping in UAE? 

The following are the consequences of incomplete and inaccurate documentation for international shipping in UAE: 

• Delayed shipping
• Damaged goods 
• Fines imposed by customs authorities

3. What are the documents required for export from the UAE?

The following documents are required for export from the UAE: 

• Delivery order.
• Original copy of Invoice 
• Original and attested copy of certificate of origin
• Bill of lading
• Packing list.
• Cash or cheque deposit of 5%
• Customs Exit/Entry Certificate.
• Inspection report.

Dubai’s commercial landscape is rapidly evolving, and the logistics industry is booming. Whether you’re a small startup or a multinational corporation, selecting the right warehouse company in Dubai is crucial. 

Partnering with a reliable warehouse provider can significantly impact your business. In this blog, we’ll break down the key factors to consider when choosing a warehouse partner to ensure smooth logistics management and excellent customer satisfaction.

# Location

When searching for the ideal warehouse, location is key. Take into account how close it is to ports, airports, your target market, and key infrastructure like metro stations or bus stops. Having these nearby is a big plus, as it makes transportation smoother and quicker. A well-placed warehouse can cut down on both time and transportation costs. Some warehouses are conveniently located right next to the port, while others require a bit more travel for loading. The proximity factor is according to the needs of the business. It is definitely something worth considering before making your decision.

# Capacity 

The first step is to estimate your own inventory needs and the space required before you look out for a warehouse facility. When making this decision, you should also think ahead, as your business is bound to grow. The last thing that you want is to outgrow your warehouse space and face the challenges of moving into another space soon enough. So, plan for future expansion while meeting your current requirements. Warehouses for rent in Dubai can range from a few hundred to over a million square feet. Choose one with enough room for smooth operations. Don’t be stingy on space, as you need to make sure there is ample space for the movement of goods too. 

# Affordable Costs

When selecting a warehouse in Dubai, you need to understand the full cost breakdown. Choose a company that offers transparent pricing, clearly outlining all fees and charges. Some might sneak in extra costs, leading to a higher final bill, so make sure all charges are well-documented and transparent to you. Review the contract carefully, paying attention to the duration, renewal terms, and any penalties for breaches, and be on the lookout for hidden fees. Ryan Worldwide ensures complete transparency when it comes to billing and provides the best service at the most affordable rates. 

# Infrastructure

Think about the infrastructure and amenities offered by the warehouse—docks, elevators, power backup, etc. Value-added services are also worth considering when choosing the right facility, as they can make operations more seamless and help you scale over time. Additionally, features like ceiling height, shelving systems, and overall layout are essential factors to take into account when evaluating warehouse options.

# Specialized Services

Certain goods need special attention, like temperature control, handling hazardous materials, or storing oversized cargo. These items require specific protocols, and the warehouse should offer specialized services to manage them safely. The government of the UAE has strict rules when it comes to such goods, so the warehouse facility must be aware of all of these and comply with them as well. Safety protocols must be clear and strictly followed, and the warehouse staff should be experienced in handling and storing such materials with care.

# Security

When you choose a warehouse in Dubai, you are trusting your valuable goods in their care, so security is a top priority. A good warehouse will protect your goods from unexpected losses, including shrinkage or theft. At Ryan Worldwide, we prioritize your inventory’s safety with 24/7 CCTV surveillance, fire safety measures, and strict access control to prevent unauthorized entry or any potential damage. You can be at ease knowing that

# Administration 

Warehouses must also follow legal regulations and industry standards when handling goods. It’s important to choose a warehouse experienced in managing the required documentation and complying with UAE government guidelines. They should also provide recommendations on how to handle certain types of goods. A knowledgeable warehouse partner will let you focus on running your business while they manage the administrative side.

Choose the best warehouse facility in UAE

Considering all these factors will help you choose the perfect warehouse in Dubai. A warehouse that fits your current needs and at the same time assists you for future growth. Ryan Worldwide is the perfect warehouse partner in the UAE for all your needs, offering reliable, secure, and cost-effective solutions that help your business thrive. When you choose to partner with Ryan Worldwide, you get premium management, precise allocation, and peace of mind as you can focus on the operations of your business instead. Get in touch with us today to get more information on our warehouse services.