Customs duty is a tax imposed on goods imported into the UAE, calculated on the CIF value (Cost + Insurance + Freight). While the standard customs duty rate in the UAE is 5%, specific goods may attract higher rates or qualify for complete exemption under Federal Customs Authority regulations.Customs duty is separate from VAT and other indirect taxes. Many businesses incorrectly assume customs duty is unavoidable, when in reality, UAE law provides multiple relief mechanisms designed to encourage manufacturing, trade, and investment.
Importers often view customs duties as a fixed cost, yet the UAE Federal Customs Authority provides specific relief channels to stimulate trade and industry. If your business pays the standard 5% duty on every shipment, you may be leaking capital. G12 reviews your supply chain to identify applicable exemptions and manages the approval process with authorities to secure your savings.
Factories in the UAE are entitled to duty waivers on raw materials, machinery, and spare parts used in manufacturing. We manage your profile with the Ministry of Industry and Advanced Technology (MoIAT) to secure:
Goods imported for a specific, short-term purpose do not require full duty payment. We arrange “Temporary Admission” status for:
We ensure the correct financial guarantees are lodged and released upon re-export.
Specific protocols exist for goods consigned to diplomatic missions, international organizations, and armed forces. G12 handles the diplomatic franchise formalities to ensure these sensitive shipments clear customs without tax levies or delays.
The UAE has active Comprehensive Economic Partnership Agreements (CEPAs) with nations like India, Israel, Indonesia, and others. We verify your Certificates of Origin to ensure you utilize 0% duty rates under these treaties and the GCC Common Customs Law.
In addition to commercial and industrial exemptions, UAE customs regulations provide duty relief for specific non-commercial categories, subject to approval and conditions:
We assess eligibility and guide applicants through the required documentation and approval process.
Customs exemptions require formal approvals and strict documentation. G12 manages the complete process, including:
Our approach ensures approvals are secured efficiently and remain audit-proof.
While most imports attract a standard 5% customs duty, certain goods may be subject to higher rates or additional levies. Misunderstanding duty rates can result in incorrect declarations, penalties, or rejected exemption claims.G12 ensures correct duty treatment by validating classification, valuation, and eligibility before customs submission.
Securing an exemption is only half the battle; maintaining it requires strict adherence to customs post-clearance audit rules.
Misclassifying goods to claim an exemption triggers severe fines. We assign the precise Harmonized System (HS) codes to validate your eligibility.
Authorities strictly monitor that exempt raw materials are used in production, not resold. We audit your inventory records to prove compliance.
If customs authorities challenge a past exemption, we provide the legal documentation and defense to protect your retroactive claims.
Improper use of exemptions, incorrect declarations, or unauthorized resale of exempt goods may lead to penalties, duty recovery, and fines. We proactively structure compliance to prevent violations.
Exemption means no duty is owed permanently (e.g., raw materials for factories). Suspension delays the duty payment for a specific time, usually for goods intended to be re-exported (e.g., exhibition items).
You must hold a valid Industrial Production License and register with MoIAT.[3] You are required to prove that the imported materials are direct inputs for your manufacturing process, not for trading.
Yes. You can file a claim for a refund within a specific timeframe (usually 6 months to 3 years, depending on the case) if you can prove the goods were eligible for exemption at the time of entry.
This is considered customs evasion. Exempt materials must be used in production. Selling them in their raw state requires you to notify customs and pay the applicable duty and taxes immediately.
Free Zone imports are already duty-suspended. However, if you move goods from a Free Zone to the UAE mainland, you must either pay duty or present a valid exemption (e.g., Industrial Exemption) at the border.