How to do Dubai Customs Clearance

How to do Dubai Customs Clearance

Posted by Roohi Shabir | July 23, 2018 | Uncategorized
Dubai Customs Clearance

Introduction

How to do Dubai Customs Clearance

In UAE any company engaged in export and import business should be registered with Dubai Customs for Dubai customs clearance . Dubai Customs offers a full range of eServices to smoothly manage the import and export of goods. Dubai’s Customs online declaration and clearing system is called Mirsal 2. Its user guide contains information on getting started and registering with Mirsal 2. Dubai Customs Clearance offices are located at the UAE airports, seaports and entry/exit points on the land borders.
Registering with Dubai Customs can be done online, on presentation of specific documents to the customs office in person. All goods imported to and exported from Dubai must pass through the customs office. Dubai Customs maintains a complete list of prohibited items for import and export. Dubai Customs in association with DP World and JAFZA has created the online portal Dubai Trade which provide complete import/export and trading procedures in Dubai. ​

E-Mirsal Transactional Processing:

  1. Copy of E-Mirsal that prepared at the company’s premises through e-clearance system
  2. Receive and check customs declaration accompanied with documents for transactional processing:
    • Delivery order from a shipping agent addressed to a licensed company by licensing agencies in UAE.
    • Original bill of lading (for seaports).
    • Import permit from the competent agencies in the event of importing restricted goods.
    • Original sale invoice addressed to a licensed importer in the country detailing total quantity, goods description and total value for each item.
    • Original certificate of origin approved by the chamber of commerce at the country of origin detailing the origin of goods.
    • Detailed packing list as per weight, method of packing and HS code for each individual article contained in the shipment.
    • Customs Clearing Representative Card.
  3. Enter the form number into the customs declaration system for checking data entered by the company
  4. Print out the customs declaration.
  5. Collect customs duties and registration fees.
  6. Deliver client’s own copies and retain customs.

Dubai Customs Clearance for Imports

Depending on where goods are destined for, the U.A.E. can be classified as Mainland Customs Zones or Free Trade Zones . Imports can be classified under various heads as mentioned below

Import for the local market: Goods from other countries are imported into the local market after the payment of customs duties or being duty-free depending on case to case basis.

The importers have to obtain an Importer-Export Code (IEC) number from the Directorate General of Foreign Trade prior to filing of Bill of Entry for clearance of imported goods. The Customs EDI System receives the IEC number online from the DGFT.

If the goods are cleared through the EDI system, no formal Bill of Entry is filed as it is generated in the computer system, but the importer is required to file a cargo declaration having prescribed particulars required for processing of the Bill of Entry for Customs clearance.

The importer clearing the goods for domestic consumption through non-EDI ports/ airports has to file Bill of Entry in four copies; original and duplicate are meant for Customs, third copy for the importer and the fourth copy is meant for the bank for making remittances. Along with the Bill of Entry the following documents are also generally required:

(a) Signed invoice

(b) Packing list

(c) Bill of Lading or Delivery Order/Airway Bill

(d) GATT valuation declaration form duly filled in

(e) Importers/CHA’s declaration

(f) Import license, wherever necessary

(g) Letter of Credit, wherever necessary

(h) Insurance document

(i) Import license, where necessary

(j) Industrial License, if required

(k) Test report in case of items like chemicals

(l) DEEC Book/DEPB in original, where relevant

(m) Catalogue, technical write up, literature in case of machineries, spares or chemicals, as applicable

(n) Separately split up value of spares, components, machineries

(o) Certificate of Origin, if preferential rate of duty is claimed        

Import for re-export: At times Goods can be imported into the country for being re-exported to other countries. In this case the importer must pay customs duty as deposit which will be refunded upon presentation of proof of re-exportation of goods within 18 months.

Temporary admission: Goods imported from abroad for the purpose of exhibitions ,seasonal markets, and similar events or in construction projects and scientific research and should be returned in the same condition in which they were imported. Customs duties are suspended till the specific period of time for stipulated. These goods which are under the customs duty suspension will also not attract import VAT.

The supplies which come under customs duty suspension are:

  • Goods entering UAE under temporary admission
  • Goods which are placed in a customs warehouse
  • Goods entering UAE in transit
  • Goods imported which are intended to be re-exported by the same person who imported them

Dubai Customs Clearance of Import  in Free Zone

General arrangements:

  • The importer must obtain a valid code importer by the Dubai Customs.
  • The goods must comply with the activity indicated in the license company.
  • The goods must reach the destination within 72 hours from the customs declaration date.
  • The goods must not be opened, modified or distributed prior to their arrival in the free zone.
  • The goods have to be checked as they enter the zone or are transferred in stores.

Import from the Free Zone in the UAE / GCC

This type of process facilitates companies to sell in the Free Zones their products to local companies based in the UAE or in the GCC countries. Customs duty will be applied in accordance with current rates.

Import for Re-export from Free Zone: This type of transaction is processed to enable Free Zone companies to sell their goods to local businesses in the UAE operating with commercial licenses valid on the basis of a mechanism of import for re-export.
This process ensures local importer a derogation period of 180 days to export the goods purchased by the company Free Zone. A deposit is required equivalent to customs tariff imposed on the value of the invoice. The repayment of the deposit is made in whole or in part if it receives proof of export, filed within the time period assigned for this type of transactions.

Tariffs for Import of goods via customs

When the final destination of goods is U.A.E.’s Customs Zones then it is subject to duty under the GCC’s Common Customs Law. If the goods are destined for Free Trade Zones then it is exempt from duty. The U.A.E. has about thirty seven Free Trade Zones.

Goods imported into Free Trade Zones are exempt from duties.

Re-exports from U.A.E. Free Trade Zones to a third market destinations beyond the GCC Customs Zones are also exempted from any duty.

When goods are imported into UAE with the intention of re-exporting them as a fully or partially to another country, a Deposit or Guarantee equal to the applicable tariff amount on the goods shall be secured in lieu of Customs Duty. For this procedure, the Declaration Type “Import for Re Export to Local from ROW” needs to be cleared. Currently this declaration is limited to those with a value higher than AED 20,000 except in case of vehicles.

Customs Tariff for GCC for import of goods via customs in UAE

Goods imported directly into Mainland Customs Zones or to a Free Trade Zone for sale in the U.A.E. and/or re-exports to GCC Countries are subject to customs import tariff as per GCC Common Customs Law that prescribed framework for the UAE’s Import Regulations.  The rate of customs duty is five per cent of the value of goods plus Cost Freight Insurance. It is 50 per cent on alcohol and 100 per cent on cigarettes.

The customs duties for most items are calculated on Cost, Insurance, and Freight (CIF) value at the rate of 5 percent.  However, alcoholic products are assessed a 50 percent duty, while tobacco products are assessed a 100 percent customs duty. CIF value will normally be calculated by reference to the commercial invoices covering the related shipment, but customs is not bound to accept the figures shown therein and may set an estimated value on the goods, which shall be final, as far as duty is concerned.

Goods can be moved intra-GCC as Customs Offices allowing movement of foreign goods from one member state to another. Therefore a Statistical Export Declaration should be approved from the exporting GCC country for inward movements of such goods and a copy of the same must be submitted to the Customs Office of importing country carrying the “Makasa Stamp” (set-off mechanism) on the Declaration in order to avoid the repeated payment of Customs Duty at the destination Country. The Declaration type “Import to Local from GCC” needs to be cleared for such transaction.

Therefore GCC Customs Union has equalized the duties paid upon entry of an item to any member state, regardless of the country of destination within the GCC. For example, an item imported into the U.A.E for re exporting in to the Saudi market is subject to the 5 percent duty once it enters the U.A.E. market.  In theory, the trader needs not to pay customs duties again to take the item across the border into Saudi Arabia.

To ensure that your Inbound Shipments are cleared promptly through UAE Customs it is very important that you update your correct TRN (Tax Registration Number) with the UAE Customs Department either by yourself or by your clearing agent in UAE.

Failure to update the correct TRN will result in shipments being held by UAE Customs until the importer processes the VAT payment manually through the FTA website.

Dubai Customs Clearance for Exports 

Some of the documents involved in customs clearance are:

  • Purchase order from Buyer,
  • Sales Invoice,
  • Packing List,
  • Shipping bill, Bill of Lading or air way bill,
  • Certificate of Origin
  • And any other specific documentation as specified by the buyer, or as required by financial institutions or LC terms or as per importing country regulations.
  • Instructions of the Declaration of Goods Application (IDG) or an export declaration approved in the name of a licensed company by a licensing agency in the country (for airport customs points of entry).
  • Export permit from the competent agencies in the event of exporting restricted goods.
  • Sale invoice from a licensed company in the country addressed to a company outside the country or operating under an approved customs system showing total quantity, description and total and detailed value of each individual item.
  • Goods clearing declaration.

The declarant shall:

  • Submit documents required.
  • Pay the export declaration registration fees.
  • Receive the customs declaration

Important Notes

  • You must have Trade License/Registration of company in Dubai.
  • An Export Customs code is mandatory for ED.
  • Decide Inco Terms, on basis Generate A Commercial Invoice/Packing List and hand over to Freight Forwarder as he/she proceeds for cargo pick up.
  • For Certificate of Origin , You must have Chamber of Commerce’s membership. Apply Online for Certificate of Origin. Pay a visit to get stamp on Commercial Invoices/Packing List.

Dubai Customs Clearance for Temporary Export

Such type of declaration is processed upon exportation of goods for the purposes of maintenance, repair or display in exhibitions or use in projects and return in the same condition at which they have been exported. The declarant should

  • Submit documents required.
  • Pay the temporary export declaration registration fees.
  • Receive the temporary export declaration.
  • The inspection section at the respective customs office shall approve the goods invoices or list (copy of the customs declaration). 

Documents Required for Dubai Customs Clearance for Temporary Export 

  • Exported goods clearing declaration.
  • Original commercial invoice.
  • Packing list with the HS codes.
  • Original export permit from the competent agencies in the event of exporting restricted goods.
  • A formal letter from the company requesting temporary export.

Import for Re Export

Such declaration is processed in the event of importation of goods into the country for the purpose of re-exportation, where customs duties shall be paid in the form of a deposit that will be refunded upon presenting a proof of re-exporting the same to non-GCC state or states.

Declarations under Export Regime 

In exports the exporters of the goods or their Agents must declare them in detail. In the case of exporting any restricted goods, the exporter must obtain required approval from the competent authority and submit to Customs.

Following declarations types are under Export Regime:
• Export from Local to ROW (Rest of the World)
• Export from Local to Dubai FZ
• Export from Local to GCC (statistical export)
• Export from CW to ROW (CW Customs Warehouse to Rest of the World).
• Export from CW to FZ
• Re Export to ROW (after import for re- export)
• Re Export to FZ (after Import for Re Export)
• Return to FZ after Temporary Admission
• Return to ROW after Temporary Admission
• Temporary Export from Local to ROW
• Temporary Export from Local to FZ

Export from Local to ROW:
For exportation of local goods to a country of ROW other than a GCC state the above declaration type is required to be cleared.

Required Documents
• Export Invoice
• Packing List
• Export Permit from a controlling authority (applicable only to restricted exports)

Export from Local to Dubai FZ:
This Declaration is for exporting goods from U.A.E local market to a Free Zone in Dubai. The exporter or his broker can submit this declaration. However, the receiving Free Zone client must acknowledge the declaration through the acknowledgement service available on Dubai Trade.

Required Documents
• Export Invoice
• Packing List

Export from Local to GCC (statistical export):
Any foreign goods previously imported to local from ROW can be exported to another GCC state on statistical Export Declaration. Declarant can avoid repeated payment of Duty to the Customs Office of destination in the GCC state provided that the statistical export declaration carries MAKASA stamp. Refer to Makasa Process in this guide for more details.

Required Documents
• Export Invoice
• Packing List
• Copy of Import Declaration (for Makasa Process)

Export from CW to ROW: The goods admitted into a Customs Warehouse may be exported to any of the countries in ROW. Export Customs procedure can be completed by clearing the above Declaration Type.

Required Documents
• Export Invoice
• Packing List

Export from CW to FZ:
The foreign goods maybe exported from a Customs Warehouse to a Free Zone in Dubai subject to the applicable export restrictions. The Exporter must complete the required Customs Procedure to admit the goods into Free zone.
Required Documents
• Export Invoice
• Packing List

Re-export to ROW (after import for re- export):
The foreign goods previously imported on declaration type of Import for Re-export can be re-exported to ROW other than GCC states by clearing this declaration. Customs inspection and exit certification shall be required to claim the refund of security deposit or guarantee paid against the Import for Re-Export Declaration. The guarantee or deposit can be claimed back only if the imported goods have been exported within six months from the date of Import for Re-Export Declaration.

Required Documents
• Export Invoice
• Packing List

Re-export to FZ (after import for re-export):
The foreign goods previously imported on declaration type of Import for Re-export can be re-exported to FZ by clearing this Declaration. Customs inspection and exit certification shall be required to claim the refund of security deposit or guarantee paid against the Import for Re-Export Declaration. The guarantee or deposit can be claimed back only if the imported goods have been re-exported within six months from the date of Import for Re-Export Declaration.

Required Documents
• Export Invoice
• Packing List

Return to ROW after Temporary Admission:
The goods brought on Temporary Admission must be returned to ROW within the stipulated time period. In case of any extension is required on permitted time period, Customs approval must be obtained prior to the expiry of the time limit. Refer Customs Policy 33 for more details.
Required Documents
• Export Invoice
• Packing List

Temporary Export from Local to FZ: 
This declaration can be cleared for the goods to be exported on temporary basis from local to Free Zone for the purposes of Repairing or Servicing, Reconditioning, Processing etc. The Exporter should complete the Customs inspections prior to exporting and while re-importing the Goods to local as well.

Required Documents
• Export Invoice
• Packing List

Temporary Export from Local to ROW:
This declaration can be cleared for the goods to be exported on temporary basis for the purpose of conducting exhibition, completing any Projects, repairing or servicing and processing etc. The Exporter should complete the Customs inspections prior to exporting and while re-importing the Goods to local as well.
Required Documents

  • Export Invoice
    • Packing List

It is very essential that businesses use a software which will enable the task of maintaining records and managing accounts efficient. Businesses should carefully evaluate and decide a software which will help them in maintaining systematic and error-free accounts and records with compliance validation. The business software should be their instrument for compliance under VAT while helping them maintain their focus on the core business activities.

Need to upgrade to Reach Online Accounting Software :

Reach Accountant software is well designed to match all the needs for successful running of the business. The software can be used in different industries ,traders ,manufacturers, retailers,  workshop ,business projects etc. It is an online VAT accounting software that can automatically manage your book of accounts, taxes, inventory, sales, purchases and more online quickly and securely.

 Benefits Of Reach Online Accounting Software

Reach Online accounting software systems are rapidly evolving, giving business owners the ability to choose how and where they manage their finances. Whether at home or on-the-go, business owners are now able to execute administrative functions such as instantly viewing bank balances, tracking expenses, sending invoices ,supervising the work flow of branches through Reach online VAT Accounting Software thus making business more viable. There are many advantages of using an online accounting system including:

Reach online VAT accounting system can help you manage your business by improving your recordkeeping processes and give you the tools you need to analyze business results and make sound financial decisions.

  • Online Access 24/7
  • Cost
  • User Friendly
  • Technical Support
  • Efficiency
  • Analysis –
  • Security and Accuracy
  • Inter Connectivity of Branches:
  • Opportunities
  • Scalability

Top Features of the Reach Online Accounting Software

  • Accounting Management
  • Tax Management:
  • Income Management
  • Expense Management
  • Invoicing
  • Print Tax Invoice In Arabic
  • Auditor View:
  • Check Post for VAT returns:
  • Automatic Update on Tax legal Sections
  • Filing Of VAT Returns
  • Auditor’s Report
  • Mobile Application
  • Bank Synchronization
  • Security
  • Run Business from anywhere
  • Free and Automatic Upgrades
  • No investment in expensive hardware
  • Automatic Data Backup
  • User Interface & Complexity
  • Scalability

Technology Used

Reach has implemented the latest technology Cloud Computing to handle day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Conclusion

The UAE has topped the world in the Efficiency of Customs Procedures Index as per the Global Competitiveness Yearbook 2017 published by IMD World Competitiveness Center.

Federal Customs Authority (FCA) draws the customs policies, supervises the execution of customs-related laws and legislations and represents the UAE at home and abroad. Local customs departments do the executive work and draw the customs policies for each emirate in compliance with the GCC Common Customs Law.

Reach online Accounting Software proves to be the best choice for Export and Import  oriented business. In this VAT regime it has become imperative for companies to make use of VAT software which is FTA approved.  Reach Online VAT Accounting Software is FTA prescribed and the business can use this single software instead of multiple software for various business operations.

 

 

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