Avyanco Auditing LLC

Level 36, Burj Al Salam Tower, Trade Center First, Sheikh Zayed Road, Dubai, UAE.

Customs Exemption Advisory to Gain Greater Control Over Import & Export Costs

Partner with Avyanco’s Customs Advisory Experts to legally minimise tax and duty burdens. We help you ensure eligibility and claim exemptions.

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Claim Customs Duty Exemption & Optimise Trading Expenses

Companies involved in international trading have to pay Customs duty, which is an additional cost to their overall expenses. By claiming Customs duty exemption, you can minimise costs and increase margins in qualified, free trade zones and clearance programs.

You can claim exemptions on –

  • Goods imported temporarily for re-export after processing activities like labelling, cleaning, and minor assembly
  • Goods imported for use within the GCC only
  • Goods imported using customs warehouses or bonded storage areas that allow duty/tax payments to be deferred until goods exit the facilities

Customs duty advisors like Avyanco help import and export businesses ensure compliance throughout exemption-based transactions.

What is the Difference between Customs & Taxes

Taxes and Customs duties are different based on the scope and purpose.

Taxes are applicable on local goods and services and are used as a source of income generation for the government.

Customs duties are specifically imposed on imported shipments with the aim of regulating trade volumes and flows based on economic factors, restrictions, agreements, etc.

Both taxes and duties add to product costs.

Types of Duties

There are different types of duties charged by Customs officials that serve different purposes. 

Countervailing Duties

Countervailing duties are granted in certain cases by the International Trade Commission. These duties aim to assist domestic industries of specific countries to help them export products at lower prices. 

Anti-Dumping Duties

Anti-dumping duties protect local markets by preventing unrealistic underpricing of imported goods and ensuring that foreign products are sold at fair market prices.

What Goods Are Exempted from Customs Duties

Goods that qualify for full or conditional exemption from Customs duties and import fees are as follow – 

  • Personal and used items when the value of goods does not exceed AED 3,000
  • National factory shipments 
  • Imports of diplomatic and military bodies and organisations 
  • Imports of humanitarian and charity organisations 
  • Goods originated in GCC countries after providing a Certificate of Origin
  • Goods under the World Customs Organization Approved Coordinator 
  • Goods exported to other countries

How to Apply for Customs Duty Exemption

To become eligible for Customs duty exemption, firms must obtain one of the following licences –

  • Primary Approval Certificate 
  • or Industrial Licensing Certificate

An exemption application must be submitted through Customs Clearance systems.

Approved applicants receive exemption results, including quotas for tax/duty-free import volumes.

What are the Customs Duty Rates in the UAE

The UAE levies a 5% Customs duty on shipment value, including freight/insurance costs, known as the CIF value. However, goods like alcohol and tobacco are liable to 50% and 100% duty rates, respectively. 

The UAE can change duty rates depending on various factors, like country agreements, laws protecting local goods, and prohibited/restricted goods.

Violations and Fines

Customs officers conduct internal (port-based) or external (offsite warehousing) inspections to ensure that the declaration forms match the goods. In case of violations, penalties can be imposed.

This table represents violations and penalties one will face for the same:

Violation

Penalty

Re-exporting Free Zone Goods 

10% of CIF value

Late Submission of Paperwork

AED 50

Inaccurate HS Codes or Declarations

AED 500

Use Avyanco’s Customs Exemption Advisory Services to Save Cost & Maximise Profits

Ensuring eligibility and compliance for Customs duty exemption can be a bit tricky for businesses. In addition to that, the exemption procedure requires proper documentation. 

Any wrong information can lead to penalties and fines. Without proper guidance, businesses can lose money and profits in the form of unclaimed duties and fines.

Avyanco’s team of experienced Customs advisors helps importers and exporters claim exemptions on eligible goods. Our experienced advisors help you through every step of the process by ensuring eligibility and finding ways to cut costs throughout global transactions. 

Connect with our team today to optimise your import and export costs effectively and watch your profits grow.

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