Latest updates on custom duty exemption in UAE & customs tax

custom duty exemption in UAE

Customs tax is and has always been a complex subject. Due to the number of stakeholders involved and the scale at which customs clearances happen in the UAE, it continues to develop periodically. For companies and professionals in the industry, this poses a challenge to understand custom duty exemption in uaeand abide by the relevant rules and regulations. One of the most recent notices about custom duty exemption in the UAE came into force from January 1, 2023. It is therefore important to understand these various changes in detail and be aware of the compliances that will need to be followed. 

Starting from 1st January 2023, Dubai Customs has implemented Customs Notice 05/2022, which was issued on 22 June, 2022. This notice reduces the threshold for customs duty exemption on imported consignments to AED 300 in Dubai. The goal is to streamline the clearance process of consignments through courier companies. It also aligns with Dubai Customs’ strategy of becoming a global leader in sustainable customs and aims to enhance customer services by reducing costs and simplifying clearance procedures.

Shipments or packages weighing less than 70 Kgs and valued below AED 300 are now exempt from customs duties. The previous threshold of AED 970 has been reduced. The GCC Unified Guide for Customs Procedures at First Points of Entry determined the previous threshold. The goal was to simplify customs procedures within the GCC Customs Union, with the aim of promoting intra-GCC and international trade.

Certain items such as cards, mail, leaflets for the visually impaired, and printed materials are also exempt from customs duty. Tobacco, tobacco products, e-cigarettes, nicotine liquid, alcoholic beverages, and foods containing alcohol are not eligible for exemption from customs duties.

Courier companies with a valid commercial license must submit electronic customs declarations and invoices through the Business to Government e-channel. Submit a courier import form for import consignments valued below AED 300. For export consignments valued below AED 3000, you can submit a courier export form. Submit a courier transit form for transit consignments valued below AED 3000. 

Customs procedures remain the same, with the submission of relevant electronic documents and invoices. For consignments valued between AED 3000 and AED 15,000, a customs service charge of AED 10 will apply for each service. Companies should maintain electronic records of all incoming and outgoing goods, which may need to be submitted to the Customs Department when required.

For any company, a trade licence is one of the key requirements for setting up any kind of business in the UAE. Our team can guide you through the entire process and also advise you on the best way to get all the necessary documents in order. Customs tax is an evolving topic and it is always advisable to have a team of professionals by your side for guidance and advice. If you have any queries about customs tax or custom duty exemption in uae or anything related to auditing or, bookkeeping services, please feel free to contact us at or +97143577678

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