international courier service in Dubai

Sea Freight Solutions: An Ultimate Guide on Sea Freight Shipping Services

Sea freight refers to the transportation of products and goods by shipping vessels from one country to another. It is a commonly used method in international trade, as it is an efficient and cost-effective way to transport loads of goods over long distances. It is also one of the most eco-friendly choices for businesses to move large amounts of goods between nations. 

Ryan Worldwide offers reliable, cost-effective, and sustainable shipping options to its customers. In this blog, we discuss all about the sea freight solutions you need to know to optimize your domestic and international trade through the ocean.

Also read: Import and Export Services in UAE

Cost-effective Sea Freight Solutions for UAE Businesses

Key Benefits of Ocean Freight Services 

  • Sea freight solutions have lower costs per unit compared to air freight. 
  • The cost per unit of sea freight decreases with the increasing volume of goods shipped. 
  • Ocean freight services are particularly suited for transporting heavy and bulky items.
  • Sea freight pricing depends on container type and not on weight.
  • Containerization allows for efficient loading, unloading, and transportation of goods.
  • Large vessels allow the shipping of tons of containers in a single voyage. 
  • Sea freight benefits from a global network of ports and shipping routes.
  • Sea freight is comprehensive and accommodates different cargo types
  • Shipping container services result in lower emissions for each unit of cargo.
  • Ocean vessels are energy-efficient as they transport large volumes of goods.

Separate Types of Shipping Container Services: FCL and LCL Shipping 

FCL and LCL shipping refer to container load sizes used in domestic and international sea freight shipping. FCL stands for full container load, while LCL is the short form for less-than-container load. 

  • Full Container Load (FCL) Shipping—When a single trader uses an entire shipping container to ship their freight, it is called FCL shipping. This type of container load size reduces cargo handling time, increases security, and permits faster transmission and exclusive usage. 
  • Less-than-Container Load (LCL) Shipping—As a cost-saving option for shipments smaller in quantity, a trader pays only for the space their goods occupy in a shared container. 

Cost-effective Sea Freight Solutions for UAE Businesses: How to Choose the Right Freight Forwarding Partner in the UAE?  

Here are a few things to pay attention to while choosing a suitable freight-forwarding partner in the UAE for your business.

Choose freight-forwarding companies in the UAE with:

  • Positive reviews and a proven track record.
  • Experience in shipping your types of goods in the UAE
  • Strong network and partnerships with shipping lines, carriers, and customs brokers. 
  • Good knowledge of customs regulations and procedures for smooth clearance in the UAE.
  • Wide range of services like FCL and LCL shipping
  • Technology integration for data management, communication, and efficient tracking
  • Adequate cargo insurance
  • Clear communication and responsive customer service
  • Transparency in pricing and fees

Ryan Worldwide is one of the best freight-forwarding companies in the UAE. The following are a few factors that make Ryan Worldwide a big name among cost-effective sea freight solutions for UAE businesses:

  • End-to-end solutions
  • Customs clearance expertise
  • Documentation and ensuring compliance
  • Tailored logistics strategies
  • Diverse services
  • Strong networking capabilities
  • Dedicated freight forwarding division for the region
  • Moving services

Cost-effective Sea Freight Solutions for UAE Businesses: Understanding Sea Freight Costs & Factors That Influence Pricing 

The three main components of sea freight shipping costs include:

  • Freight Rates: The basic cost for moving goods to the destination port from the origin port
  • Port Charges: Terminal handling charges (THC) and other fees associated with handling cargo at the ports. 
  • Customs Fees: Customs authorities levy these taxes and duties in the destination country.

Other factors that could potentially affect sea freight costs include:

  • Fuel Surcharges
  • Currency Adjustment Factor (CAF)
  • Demurrage and Detention Charges
  • Insurance Costs
  • Documentation Fees
  • Ancillary Charges

You can reduce sea freight expenses by:

  • Carefully arranging and optimizing shipments
  • Negotiating profitable rates from ocean freight carriers
  • Working with reputable freight forwarders.
  • Selecting efficient container utilization and packaging.
  • Deploying visibility solutions across the supply chain
  • Complying with customs regulations with proper documentation
  • Evaluating and benchmarking your performance in sea freight shipping regular

Cost-Effective Sea Freight Solutions for UAE Businesses 

The following are some of the best methods to save costs on international shipping:

  • Maintain an accurate cargo weight.
  • Practice the best packaging process with custom packaging solutions and lightweight packing materials.
  • Discover different options for carriers.
  • Shipment consolidation to make a big load of smaller shipments
  • Choose shipping routes that help save costs.

Ryan Worldwide offers efficient and affordable sea freight options with:

  • Global carrier relationships and networks
  • Optimized consolidation and route planning
  • Data analytics and technology
  • Customized solutions for shipping needs
  • Efficient customs clearance 
  • Focus on cost optimization.
  • Operational efficiency for import and export via sea freight
  • Data-driven insights for international sea freight shipping

Customs Clearance in Dubai: Hassle-Free Sea Freight Solutions by Ryan Worldwide 

Customs clearance is crucial for import and export via sea freight. It ensures that your shipments cross borders safely, legally, and efficiently. Customs clearance avoids penalties or delays of import by ensuring that applicable taxes are paid and regulations are complied with. 

Ryan Worldwide streamlines customs clearance in Dubai with its comprehensive services, such as import/export documentation, customs inspection, and special approvals. They also have an expert team to handle special approvals from controlling authorities. Other services by Ryan Worldwide include:

  • Food Import and Re-export
  • Warehousing Operations
  • Logistics and Freight Forwarding
  • Importer of Records Services
  • Exhibition/Expo Import Clearance
  • Pet Relocation

You would require the following key documents for import/export clearance:

  • Commercial invoice
  • Bill of lading/airway bill
  • Packing list
  • Certificate of origin
  • Permits and licenses based on your goods and destination

Also read: Documentation for International Exports From the UAE: Complete Guide

Why Choose Ryan Worldwide for UAE Shipping and Logistics Solutions for Your Business Needs? 

With almost two decades of expertise, Ryan Worldwide aims to ensure smooth and cost-effective sea freight solutions for UAE businesses. Our remarkable features include:

  • Comprehensive services, including customs clearance, distribution, and freight forwarding
  • Expertise in customs clearance
  • Global network for managing shipments
  • Partnership with global supply chain solutions for safe cargo transportation
  • Clear communication around the clock

Closing Thoughts 

A sea freight solutions provider focusing on customs clearance can ensure your international trade is efficient and legal. They can help you comply with regulations, pay taxes and duties, and prevent penalties and delays by transporting your goods smoothly. 

When you partner with Ryan Worldwide, we offer you the best working relationships beyond our wide range of services. For expert sea freight solutions and customs clearance in Dubai, contact us at: 

  • Phone: +9714 2528468 (or) +971559020985
  • Email ID: info@ryan-worldwide.com

Also read: VAT Customs Duty in UAE: What You Need to Know in 2025

Importing Pharmaceuticals and Medical Devices to the UAE: A Comprehensive Guide

With a focus on emerging as a global leader in healthcare, the UAE is rapidly developing its healthcare market. Presently, the country heavily relies on imported medical devices and pharmaceuticals. Its supportive infrastructure, strategic location, and conducive business environment make the UAE a regional trading hub for medical devices and pharmaceuticals.

This blog intends to guide you while importing pharmaceuticals and medical devices to the UAE. It gives a comprehensive picture of all processes involved, from registering your company in the UAE with the Ministry of Health to clearing your products at customs. 

Comprehensive Guide to Importing Pharmaceuticals and Medical Devices to the UAE: Regulatory Framework Governing Imports

The UAE’s regulatory framework for pharmaceuticals and medical devices recently replaced Federal Law No. 8 of 2019 with new Federal Law No. 38 of 2024. This new law took effect on January 2, 2025, and aims to improve the governance of pharmaceutical establishments, medical products, and pharmacy jobs in the UAE. 

Key authorities overseeing the medical equipment and pharma goods clearance during import are: 

  • Ministry of Health and Prevention (MOHAP)—the federal ministry overseeing healthcare policy in the UAE
  • Department of Health Abu Dhabi (DOH)—the primary regulatory authority in Abu Dhabi
  • Dubai Health Authority (DHA)—the regulatory body regulating medical equipment and healthcare activities, including pharmaceuticals, within the Emirate of Dubai.

Comprehensive Guide to Importing Pharmaceuticals and Medical Devices to the UAE: Licensing Requirements for Importers

To import pharmaceuticals and medical devices into the UAE:

  • UAE companies (even those with a part of foreign shareholding) require a medical warehouse license to import medical devices and pharmaceuticals. 
  • UAE citizens require a medical importer license. 

Also read: Warehouse Safety and Security: Top Technologies and Practices

Marketing Authorization Process:

  • Marketing authorization holder companies, marketing consultants, and distributors, along with entities and individuals involved in the purchasing, enlisting, prescription, dispensing, and reimbursement of medical products, should get marketing authorization approval from the Ministry of Health and Prevention (MoHAP).
  • Products can only be imported by the local agent cited in the approval for the product’s marketing authorization 

Required Document:

  • A valid certificate of free registration or sale certified by the UAE Embassy and issued by competent authorities in the country of origin.
  • Product agency contract’s copy signed between the agent and the company. 

Comprehensive Guide to Importing Pharmaceuticals and Medical Devices to the UAE: Medical Equipment and Pharma Goods Clearance Process

The process of obtaining import permits for medical devices and pharmaceuticals includes the following steps:

  • Register your company in the UAE (with you as a shareholder) with the Ministry of Health and Prevention (MoHAP).
  • Get a trade license that permits activities related to the importation of medical devices and pharmaceuticals. 
  • As per Article 47 of the Pharmacy Law, get a license for your medical warehouse in the UAE. 
  • Register the medical devices and pharmaceuticals you want to import with MoHAP.
  • Gather all necessary documents for MOHAP medical equipment registration.
  • Complete payments and submission of your request using a smart app or the MoHAP website.
  • Your registration application will be reviewed by a competent technical committee.
  • Once approved, you will receive a certificate of registration with a validity of 5 years.

Comprehensive Guide to Importing Pharmaceuticals and Medical Devices to the UAE: MoHAP Medical Equipment Registration and Compliance with UAE Standards

MoHAP medical equipment registration and compliance with UAE standards include the following steps:

  • Obtaining a pre-market approval before you introduce medical devices into the market in the UAE
  • Appointing a local authorized representative (AR) to guarantee compliance with UAE regulations and act as your point of contact with MoHAP.
  • Submission of a comprehensive dossier explaining the device’s quality, safety, and efficacy.

Comprehensive Guide to Importing Pharmaceuticals and Medical Devices to the UAE: Distribution and Marketing Regulations in the UAE

The regulatory framework for the distribution and marketing of medicines and medical devices in the UAE includes:

  • Federal Decree-Law No. 38 of 2024:

This law replaces Federal Law No. 8 of 2019 and regulates the pharmacy profession, medical products, and pharmaceutical establishments.

  • Emirates Drug Establishment (EDE):

The EDE manages and regulates medical products, including healthcare products, pharmaceuticals, medical devices, biologics, and more. 

  • Ministry of Health and Prevention (MOHAP):

MOHAP manages the registration and control of drugs and medical devices. As per the medical device distribution laws in the UAE, you should register all medical devices meant for import, sale, or distribution with the MoHAP. This registration guarantees the quality, safety, and efficacy of the devices.

Importing Pharmaceuticals and Medical Devices to the UAE: Post-Market Surveillance and Quality Control 

  • Reporting safety concerns and adverse events to UAE health authorities:

Healthcare companies and professionals can use the MoHAP website or smart app to submit reports, which will be sent to the World Health Organization (WHO).

MoHAP’s system for post-market surveillance of imported pharmaceuticals and medical devices.

  • MoHAP, with the Drug Control Department (DCD), controls medical devices, including post-market surveillance. 

The post-market surveillance activities controlled by these regulatory bodies include:

  • Monitoring Safety and Performance
  • Collecting Data
  • Addressing Issues
  • Reporting
  • Corrective Actions
  • Field Safety Corrective Actions (FSCA)
  • Data Analysis
  • Compliance with Regulations
  • Procedures for product recalls and corrective actions.

The Department of Health Abu Dhabi (DOH) manages product recalls and corrective actions for medical devices and medicines in the UAE

Challenges and Best Practices for Importers 

The following are the common challenges in medical equipment and pharma goods clearance in UAE ports.

  • Regulatory Complexity
  • Product Registration
  • Marketing Authorization
  • Local Ownership Requirements
  • Supply Chain Security
  • Counterfeit Products

Further, the following are a few strategies that help in faster approvals and seamless regulatory compliance: 

  • Establish a UAE Company
  • Obtain Necessary Licenses
  • Product Registration
  • Compliance with Standards
  • Partner with Local Experts
  • Ensure Quality and Safety
  • Utilizing  fast-track approval pathways
  • Considering free zone transit in
  • Following the UAE’s zero-tolerance policy
  • Staying updated on regulatory changes

Conclusion: 

Importing pharmaceuticals and medical devices to the UAE requires you to include a company there and apply for its registration with the Ministry of Health. You can also engage a local distributor or local agent already registered with the Ministry for the importation process. Though these processes may seem daunting, a company like Ryan Worldwide, which is engaged in customs clearance in Dubai, UAE, can help.

We can expedite the entry of your medical products into the UAE by providing expert guidance and streamlining the import process. We can handle the necessary paperwork and ensure the importation process complies with all required regulations. To know more about our services or for inquiries on the importation of medical products to the UAE, contact us at:

  • Phone: +9714 2528468 or +971559020985
  • Email ID: info@ryan-worldwide.com.

Also read: How to Calculate Import Duty and VAT in UAE: A Comprehensive Guide

 

VAT Customs Duty in UAE: What You Need to Know in 2025

A strategic location, strong infrastructure, and advanced ports have made Dubai a major hub for international trade, connecting businesses from around the world. Dubai made the remarkable achievement of meeting its foreign trade target of AED 2 trillion in the non-oil sector in 2023, ahead of the scheduled period.

However, businesses should have a sound understanding of customs duties and other taxes to optimize pricing, costs, and profitability. This blog explains all that you need to know about the VAT customs duty in the UAE as a business starting in the world of international trade in the country.

VAT Customs Duty in UAE: Definition of VAT and Customs Duty in UAE? 

An indirect tax imposed and collected at each stage of the supply of services and goods is called Value Added Tax, or VAT. It is the end consumer who bears the tax, while registered taxpayers levy the tax on behalf of the government.

Taxes charged on imported goods are called customs duties. The standard rate of import duty in the UAE is 5% of the goods’ value. This rate can vary based on the type of product. For instance, goods like tobacco and alcohol attract higher import taxes in the UAE.

VAT customs duty in the UAE is a way in which the UAE government diversifies its income sources. A remarkable source of revenue ensures that the government continues to offer a good standard of living to its citizens.

VAT Customs Duty in UAE: How to Calculate VAT Customs Duty in UAE for Imports and Exports (2025 Update)

Most goods imported into the UAE are charged a value-added tax (VAT) of 5%. The two rates that determine the VAT on a good are the applicable customs duty and the Cost, Insurance, and Freight (CIF) value. Thus, the formula of VAT is 5%×(CIF × (CIF value + Customs Duty).

VAT is crucial in determining the pricing of goods imported to the UAE. So, it influences the profitability of companies functioning in the Free Zone and local market in the UAE.

Also read: How to Calculate Import Duty and VAT in UAE: A Comprehensive Guide

How to Calculate VAT Customs Duty in UAE for Imports and Exports: Rate and Calculation of Import Duty in UAE

The import tax in the UAE for cargo in the general category is normally 5% of its CIF value. This is standard for most of the imported goods. Businesses can confirm this by checking the classification of the goods under the HS Code for Customs Duty in the UAE.

Customs Duty Calculation in the UAE by Cargo Category

  • Tobacco & Tobacco Products—100% of the CIF value
  • Seafood, Livestock, and Meat—0%
  • Dry & Fresh Fruits, Vegetables, Grains & Seeds, and Coffee & Tea—0%
  • Chemicals, Medicines, Vaccines, Gases, Health Supplements, and Used Personal Effects—0%
  • Some Stationery, Printed Books, and Pictures for Children—0%

How to Calculate VAT Customs Duty in UAE for Imports and Exports: VAT Exemption in the UAE 

The following is a list of goods and services that usually enjoy VAT exemption in the UAE:

  • Residential Properties: Deals and rentals of residential structures after the first supply 
  • Financial Services: Services that do not require an explicit fee or return are subject to VAT exemption
  • Transportation: Intra-city flights, local public transport, and other domestic passenger transport 
  • Bare Land: Dealings of undeveloped land
  • Healthcare and Education: Private education, specifically higher education, and healthcare services, such as preventative care

How to Calculate VAT Customs Duty in UAE for Imports and Exports: UAE Customs Regulations for Importers & Exporters

The following are a few UAE customs regulations for importers & exporters: 

  • Exporters and importers must stick to: 
    • 5% customs duty on most goods (CIF value)
    • higher rates of 50% on alcohol and 100% on tobacco products 
  • Importers must categorize their goods using internationally recognized Harmonized System (HS) codes to determine their duty rates.

Essential Documents Needed for Both Importers and Exporters:

  • Commercial Invoice
  • Certificate of Origin
  • Bill of Lading
  • Packing List
  • Airway Bill (AWB)
  • Proforma Invoice
  • Insurance Certificate
  • Customs Declaration
  • Import/Export License
  • Letter of Credit (L/C)
  • Shipping Bill
  • Bill of Entry

Additional documents based on types of goods include:

  • Licenses and Permits
  • Certificates of Conformity
  • Inspection Certificate

Tips to Reduce VAT and Customs Duty Costs in UAE

As a general rule, VAT is not imposed on goods traded between two free zones. This exemption makes business-to-business (B2B) transactions within these zones cost-effective.

Other strategic ways to reduce import costs: 

  • Use Free Trade Agreements (FTAs) to significantly lower import duties on specific products based on their origin. 
  • Optimize shipping and packaging to reduce the weight and volume of shipments and lower freight charges. 
  • Negotiate with suppliers and carriers to save costs and improve efficiency.
  • Ensure accurate tariff classification and customs declarations to avoid overpaying tariffs and reduce import costs. 
  • Explore duty drawbacks to reduce costs and improve profitability.
  • leverage technology to reduce errors, streamline processes, and save time and money.
  • Use intermodal transportation to reduce transportation costs and increase profitability.
  • Optimize supply chain management to avoid delays and reduce costs.

VAT Customs Duty in UAE: Conclusion

You can have a great business opportunity by importing goods into the UAE. But to ensure accurate cost calculations and smooth operations, you should have a good understanding of the Dubai import tax system.

Ryan Worldwide, with its customs clearance in Dubai, UAE, service, simplifies your customs clearance process. Our professionals, knowledgeable in VAT customs duty in the UAE, act as your customs brokers in Dubai to help you stay compliant even with updated customs regulations.

Contact us today for assistance in customs clearance while you focus on other key aspects of your business:

Phone: +9714 2528468 or +971559020985

Email ID: info@ryan-worldwide.com

Also read: Third-Party Logistics Provider: Choosing the Best in 2025

pet relocation in uae

Pet Relocation in the UAE: A Comprehensive Guide to Pet Import Regulations

UAE is turning cosmopolitan and pet-friendly with all the international attention it is receiving in tourism. The country is becoming one of the most popular destinations for pet relocation. However, the safe relocation of pets still creates several concerns in the minds of pet owners because of the strict pet import regulations in the UAE.

While traveling to the UAE, pets should travel as manifested cargo. A pet relocation service like Ryan Worldwide helps handle all aspects of pet relocation in the UAE, from obtaining permits to the safe and happy delivery of pets to their home.

Learn more about our pet relocation service in Dubai, UAE. 

Pet relocation Service in Dubai

How to Relocate Your Pet to the UAE: Step-by-Step Guide for 2025

Why Pet Relocation in the UAE Requires Careful Planning

International pet transport to the UAE has to follow strict laws, such as Dubai pet travel regulations. Hence, you have to pay attention to these points while planning carefully: 

  • An import permit is necessary for moving with pets to Dubai and other parts of the UAE.
  • Microchipping your cats and dogs with an ISO-compliant microchip implant (animal) is mandatory.
  • Based on the country of origin, you should get your pets vaccinated with the necessary vaccinations.
  • Your pets mostly travel as manifested cargo. 
  • Generally, you are prohibited from importing certain dog breeds to the UAE. 

Further, wisely plan and schedule documents with expiration dates to avoid delays during pet relocation in the UAE.

Pet Relocation in the UAE: What You Need to Know

Pet relocation in the UAE requires you to pay attention to the following: 

  • Health Certificate: All live animals entering the UAE need an original health certificate or a certificate of veterinary inspection.
  • Records of vaccinations: An administering veterinarian should enter information about vaccinations and either stamp or sign a rabies certificate, an EU pet passport, or a vaccination booklet issued by the government of a country of origin. 
  • Pet Microchip: Microchip your pets with ISO-compliant microchips. These microchips will have a 15-digit number reflecting all their documentation while entering a foreign country.
  • Import Permit: Issued by the Ministry of Climate Change and Environment, a permit is valid for up to two pets for 30 days. A re-entry card is needed instead of an import permit for pets returning to the UAE.
  • Approved Breeds: Go through the list of restricted breeds of dogs and exotic pets during pet relocation in the UAE. 
  • Importing Puppies and Kittens – These young pets under 12 weeks of age cannot enter the country without conforming to the pet import regulations, even when they are from countries with low rabies risk. Puppies and kittens from countries with high rabies risk cannot enter the UAE without meeting all the requirements and until reaching 15 weeks of age
  • Your pet need not undergo quarantine if the UAE pet import requirements are met properly. When the regulations are not met, the pet is quarantined, returned, or euthanized, with the importer meeting all the costs incurred. 

How to Relocate Your Pet to the UAE: Step-by-Step Guide for 2025: Common Challenges 

You should consider some challenges and prepare for them while moving with pets to Dubai and other parts of the UAE. Some of these are: 

  • Your pets might experience anxiety during the pre-move days.
  • Physical and mental exhaustion of your pets during the long journey
  • Navigating complex and time-consuming Dubai pet travel regulations
  • Stress and behavioral issues of your pets as they try to adapt to the new environment
  • Handling long flights and layovers and getting adjusted to different time zones and climates

How to Relocate Your Pet to the UAE: Step-by-Step Guide for 2025: Why Choose Ryan Worldwide for Pet Relocation in the UAE?

Ryan Worldwide is your reliable partner for international pet transport to the UAE if you are searching for help with customs clearance and paperwork and safe and stress-free solutions for pet travel. Key features of Ryan Worldwide as one of the pet relocation services in Dubai: 

  • Profound understanding of the complex Dubai pet travel regulations and laws of other Emirates in the UAE.
  • Comprehensive relocation management starts from pick-up at the origin location to delivery at your front door.
  • A team of specialists who can provide personalized attention and address your concerns about pet relocation
  • Customized relocation packages for special attention to sensitive animals and vet consultations
  • A strong network of partners in the UAE to coordinate airlines, clear customs, and manage other aspects of pet transport. 
  • Regular updates about your pet’s status throughout the relocation process 

Also read: UAE Customs Regulations: A Guide on Customs Duty and More

We hope that this blog gave you a general outline about legal and other requirements while importing your pets to the UAE. If you are a pet owner looking for the best pet relocation services in Dubai to bring your furry friend home, look no further. Contact us now to discuss your concerns at: 

Phone: +971585959339

Mail ID: sales@ryan-worldwide.com

How to Calculate Import Duty and VAT in UAE: A Comprehensive Guide

Businesses across various sectors are using the UAE as a hub for global trade. These businesses import goods to meet the needs of Dubai-based Free Zones (except the Jebel Ali Free Zone) and local markets. Hence, these businesses must be well-versed in the import duties and taxes in UAE.

 

In this blog, we discuss how to calculate import duty and VAT while importing different goods to UAE. We also discuss the different factors affecting these taxes, tools for calculation, and common errors. 

Import Duty and its Calculation 

Import duty is a way to boost the competitiveness of locally produced goods in the domestic market. This is done by levying a tax on foreign goods entering a country and thus increasing the cost.

Key Factors in Customs Duties Calculations

Many factors affect import duty calculation in UAE and the total sum payable. Some of these are: 

  • Value of Imported Goods: The transaction value is the value of goods. It is determined by the CIF (cost, insurance, and freight) value.
  • Country of Origin: This is the country where the commodity was made. Certificate of Origin and help determine the country of origin. Calculating customs duties then varies based on the country, import regulations in UAE, policies, and trade agreements. 
  • Tariff Classification and Valuation: Tariff classification refers to organizing commodities using HS codes (Harmonized System codes). Tariff valuation is finding the value of goods using the deductive method, transaction value method, and more.

Also read: UAE Customs Regulations: A Guide on Customs Duty

Value Added Tax (VAT) in UAE: 

VAT came to effect in the United Arab Emirates (UAE) on 1st January 2018. This tax, which was fixed at 5 percent, became a new source of income to provide quality public services. 

Step-by-Step Guide for Calculating Customs Duties

The following steps are performed for calculating customs duties: 

  • Step 1: Finding the correct HS code of the product

Find the correct 6-digit HS code on each product. 

  • Step 2: Finding the duty rate of the destination country

You can find the duty rate of the country using the HS code. 

  • Step 3: Determining the Total Customs Value

The value of the products is determined using the transportation costs, product costs, and insurance charges. 

  • Step 4: Applying the Duty Rate

The customs duties on your goods are calculated by applying the duty to the total customs value.

How to Calculate VAT in UAE for Imports 

Value Added Tax (VAT) in the UAE is calculated at 5% on many of the foreign goods imported to the country. VAT is calculated as the sum of CIF value and the applicable customs duty on the goods. Thus, the formula for VAT is: 

VAT=5%×(CIF value+Customs Duty) 

VAT can vary the overall pricing of goods and affect the profitability of businesses operating in Free Zone Customs Duty UAE  and the local market. Understanding these formulas helps calculate import duty and VAT in UAE for small businesses.

Common Exemptions and Reductions to Calculate Import Duty and VAT

Several special cases and trade agreements lead to exemptions and reductions while we calculate Import Duty and VAT in UAE. Some of these are:

  • UAE-India Comprehensive Economic Partnership Agreement (CEPA)

This agreement which came into effect on May 1, 2022, includes reduced or removed tariffs on more than 80% of goods, and the access of certain goods to duty-free markets.

  • GCC Free Trade Agreements

These agreements between UAE and countries including Singapore, New Zealand, and the European Free Trade Association (EFTA) countries aim to increase exports, boost competitiveness in foreign markets, and reduce trade barriers.

 

  • Greater Arab Free Trade Area Agreement

With this agreement, the UAE gets free trade access to countries such as Kuwait, Qatar, Saudi Arabia, Jordan, Bahrain, Oman, Iraq, Morocco, Egypt, Palestine, Lebanon, Libya, Tunisia, Yemen, and Syria. 

  • VAT treatment

Some goods and services in UAE are subjected to an exemption or a 0% rate, unlike the general VAT rate of 5%.

Tools and Resources to Calculate Import Duty and VAT

The following are some tools and resources that can help you calculate import duty and VAT in UAE:

  • Tally Solutions
  • iCustoms
  • Easyship
  • MyGTS

You should take the service of professionals and customs experts for complex cases of calculations.

Commonly Occurring Errors When You Calculate Import Duty and VAT in UAE for Small Businesses 

You can watch out for the following commonly occurring errors when you calculate import duty and VAT in UAE for small businesses: 

  • Not accounting for inconsistencies in taxation in different countries
  • Not regularly updating import tax information
  • Misvaluing international shipping goods
  • Missing necessary paperwork for import
  • Forgetting to label the country of origin for imported goods
  • Poor research on regulated goods
  • Assigning wrong tariff codes to products
  • Late payment of fees and customs duties
  • Filing Import Security Filing (ISF) information late, inaccurately, or incompletely
  • Not hiring a professional broker for import paperwork

How Ryan Worldwide LLC Help You in taxation on Imported Goods in UAE

Ryan Worldwide LLC is a customs broker in Dubai with an expertise of 15 years in the field. We make customs clearance easy for our clients by representing them during the payment of duties and taxes, assessment, and inspection. 

We keep ourselves updated about the developments in import regulations in UAE to meet all your customs clearance requirements most logically. So, partner with Ryan Worldwide for seamless import services. Call us to know more about payment of import duties and taxes: 

  • Phone: +971559020985
  • Email id: sales@ryan-worldwide.com

Frequently Asked Questions

  1. Is it possible to claim VAT on goods imported into UAE? 

An importer registered for VAT in UAE can claim input tax for imports.

  1. Which are some goods that are exempt from import duties and taxes? 

Goods such as fertilizers, necessary equipment and medicines, food grains, and more are exempted from import taxes.

  1. Are there customs duties in Dubai?

Yes, there are customs duties for foreign goods when the value of each shipment exceeds AED300. This value was approximately AED970 earlier, according to the GCC Unified Guide for Customs Procedure. The reduced rate came into effect on 1 January 2023.