Claim Customs Duty Exemption & Optimize Trading Expenses

For companies involved in international trade, Customs duty can add significant costs to overall expenses. By claiming Customs duty exemptions, businesses can reduce these costs and increase profit margins in qualified free trade zonesand clearance programs.

You can claim exemptions on the following:

• Goods imported temporarily for re-export after processing activities such as labeling, cleaning, or minor assembly.
• Goods imported for use only within the GCC.
• Goods imported using Customs warehouses or bonded storage areas, where duty/tax payments can be deferred until the goods exit these facilities.

Smart Business Creation’s Customs duty advisors help import and export businesses ensure full compliance throughout exemption-based transactions, making it easier to claim these exemptions.

What is the Difference Between Customs & Taxes?

Taxes and Customs duties differ based on their scope and purpose:

• Taxes apply to local goods and services and are used by governments to generate income.
• Customs duties are imposed on imported goods and are used to regulate trade volumes and flows, often influenced by economic factors, restrictions, and international agreements.

Both taxes and duties increase the cost of products, but they serve different functions.

Types of Duties

There are several types of duties imposed by Customs officials, each serving a unique purpose:

Countervailing Duties

These are duties imposed by the International Trade Commission to support domestic industries by allowing them to export products at competitive prices.

Anti-Dumping Duties

These duties protect local markets by preventing underpricing of imported goods, ensuring that foreign products are sold at fair market prices.

What Goods Are Exempted from Customs Duties?

The following goods may qualify for full or conditional exemption from Customs duties and import fees:

• Personal and used items (value not exceeding AED 3,000)
• National factory shipments
• Imports for diplomatic and military bodies and organizations
• Imports for humanitarian and charity organizations
• Goods originating in GCC countries with 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 be eligible for Customs duty exemption, companies must obtain one of the following:

• Primary Approval Certificate
• Industrial Licensing Certificate

The exemption application must be submitted through Customs Clearance systems. Once approved, applicants receive details about their exemption, including quotas for duty-free import volumes.

Customs Duty Rates in the UAE

In the UAE, Customs duty is generally levied at 5% of the CIF value (Cost, Insurance, and Freight). However, certain goods like alcohol and tobacco are subject to higher rates—50% and 100%, respectively.

Duty rates can vary based on international agreements, laws protecting local industries, and restrictions on certain goods.

Violations and Fines

Customs authorities conduct internal and external inspections to ensure that the goods match the declared forms. Violations can result in penalties, as shown below:

Maximize Profits with Smart Business Creation’s Customs Exemption Advisory Services

Ensuring your business is eligible for Customs duty exemption can be complex, and any errors in the process can result in penalties and fines. Without proper guidance, businesses can lose profits due to unclaimed refunds and penalties.

Smart Business Creation offers expert Customs exemption advisory services to help importers and exporters claim exemptions on eligible goods. Our experienced advisors will guide you through each step of the process, ensuring compliance and identifying ways to cut costs throughout your global transactions.

Contact us today to streamline your import and export operations and start maximizing your profits with effective Customs exemption strategies.