The import-export business in the UAE is booming as some of the business maritime trade routes pass through or around the UAE. On top of that, many developing countries and international ports are in the vicinity of the UAE, making it easy to start a business in the manufacturing or logistics sector.
Every country has its own rules and regulations for product imports, including the United Arab Emirates. Since the country offers different business zones, every region has its advantages for importing goods.
The GCC Common Customs Law unifies import procedures in the United Arab Emirates; nonetheless, the law shall be executed by respective emirate-level customs administrations (such as Dubai Customs and Abu Dhabi Customs).
A company must obtain a trade license, an importer code, and submit declarations through the digital systems, such as the ATLP system in Abu Dhabi or Dubai Trade (Mirsal 2).
There are broadly two ways available:
Mainland Import: In this way, products are admitted into the UAE's domestic market, and the companies may sell in any of the emirates.
Importing into the Duty Free Zone: This will allow the goods to be assembled, stored, or re-exported. Sales into the mainland will require further customs clearance.
Free Zone's Offering to the Importers
Free zones are those designated regions that allow foreign investors/ entrepreneurs 100% ownership and other relevant tax exemptions. These are designed to support international trade and new entrepreneurs. Here are a few key benefits that the free zone offers to the importers;
- 100% foreign ownership
- Zero per cent import duty on trade or re-export within the zone.
- No corporate tax on taxable income for 0-9% rates under the UAE CT authority.
- Strategic proximity to seaports and airports (e.g. JAFZA at Jebel Ali Port, DAFZA at Dubai Airport)
Mainland's Offering to the Importers
The Mainland is also a special business region that the UAE government has formed for seamless business accessibility around the country. Here are a few key benefits that Mainland offers to the importers;
- Direct access throughout the UAE, including businesses, consumers, and the public sectors.
- Leverage to trade across the country without involving a local sponsor or agent.
- Eligibility for VAT refunds on business inputs.
How to Import into the United Arab Emirates
Importing Products in a Free Zone in the UAE
License and Importer Code: Apply for customs registration and a free zone license.
Management of Customs Documentation: Commercial Invoice, Packing List with HS Codes, Certificate of Origin, Bill of Lading or Air Waybill, and any additional licenses required.
Free Zone Bill of Entry: Submit a "Transit In" declaration to enter the zone, free of customs duties.
Inspection and Entry: Items are entered into your warehouse within the area after being cleared by customs inspection.
Re-export or Transfer: To sell in the United Arab Emirates, an import declaration of "Free Zone to Local" must be submitted and duties paid.
Importing goods into the UAE mainland
Shipment Coordination: The importers arrange the shipment and make sure the correct consignee is provided.
Declaration Online: Using the local portals such as ATLP for Abu Dhabi or Mirsal 2 for Dubai, declarations can be submitted online.
Required Documents: Bill of Lading, Certificate of Origin, Invoice, Packing List, and Permits.
Payment of VAT and Duty: Imports usually attract VAT at 5% and customs duty at 5%.
Customs Clearance and Inspection: For conforming arrivals, clearance time normally takes about 24 hours.
Release of Products: After the satisfactory inspection and payment of duties, the products will be dispatched to the market.
Cost of importing products in the UAE
- A standard customs duty of 5% applies to most of the products imported to the mainland.
- GCC-manufactured products or non-taxation categories can leverage tax exemptions.
- There's a whopping 50% excise duty on sugary drinks and 100% on tobacco products.
- Free zones are free unless the product is imported to the mainland.
- Charged on duty plus CIF value. Reimbursable for companies with a VAT registration.
The right business move will propel you to success.
The United Arab Emirates is one of the most favourable business ecosystems for imports and exports. Businesses just have to choose the right jurisdiction for their activities. Free zones help businesses to thrive in the global trend of warehousing and re-exports, with tax advantages. On the other hand, the mainland business zone supports companies to tap into the UAE's overall market and consumer base seamlessly.
Business owners consider their target audience, activity, product category, distribution, inventory, and other basic requirements before importing products into the UAE.
Here, Markai Corporate Services plays a vital role. Whether you choose a free zone or the mainland market, our expert team supports you from business setup and custom registration to logistics and warehousing solutions. Want to import to the UAE? Let's launch your business with Markai today.
