INTRODUCTION
The United Arab Emirates (UAE), as a member of Gulf Cooperation Council (GCC) is regulated by the regulations of the GCC’s Customs Union. The UAE applies a unified customs tariff in line with the Gulf Cooperation Council (GCC) Common Customs Law. The GCC Customs Union established in 2003, among other things provides for a) Standard Custom Tariff towards the non-GCC countries, b) National treatment of goods made in GCC countries and free transit of goods between them, c) Unified standard custom rules and regulations across GCC nations and d) a single entry point where custom duties are to be collected.
COMMON CUSTOMS LAW
The Common Customs Laws of GCC was issued by the GCC Council in 2003. The law aims to unify the customs laws and procedures in the Customs Administrations of the GCC states. The same was repealed by the GCC’s Supreme Council and a new amended GCC common law was issued in 2021. The amended law has introduced changes related to “advanced rulings” for traders/investors, a comprehensive list of penalties and processes, acceptance of electronic documents, and other provisions allowing customs officers to waive penalties that do not exceed AED 1,000 for smuggling offences.
CUSTOM DUTY IN THE UAE
The customs duty in the UAE is in line with the Unified Customs Tariffs for the GCC states. It is essential to note that the customs duty is calculated on the value of goods which includes the cost of goods, insurance and freight (CIF). The UAE imposes a 5% duty on most goods imported from abroad excluding goods in transit to GCC countries. Goods originating from GCC countries are treated as UAE local goods, provided that 40% of the raw materials used for manufacturing such goods originated in the GCC.
Several commodities which are exempted from this list include live animals, fresh and chilled meat and fish, fresh vegetables and fruit and cereals, medicine and medical supplies, books, newspapers and magazines, and vessels and commercial aircraft.
Disclaimer:
This article is for informational purposes only and is based on publicly available customs regulations and tariff classifications.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Fauzia Khan
