Customs exemption

Overview

Customs exemption for industrial production line inputs is an exemption from custom duty, which is worth 5%; it is considered a method to encourage the establishment of industrial projects in the United Arab Emirates; this methodology has been implemented and approved by the Laws and Regulations of the United Arab Emirates and the Gulf Cooperation Council.

Customs exemption are granted for the following:

Machines, equipment, spare parts, and building materials that an industrial establishment requires.
Raw materials, intermediate and semi-finished goods required for the industrial project; in terms of production and packaging purposes.

In addition, Customs exemption are accorded during the duration of constructing the establishment and as long as it is practicing its licensed industrial activities.

Objectives

Encourage the development of industrial establishments and projects in the United Arab Emirates.

Decrease production costs

Increase competitiveness by increasing local exports and attracting investments.

Criteria

Imported raw materials and equipment to be entered on customs exemption system (Dhabi System).

Duty Exemptions are applied by the factory through customs exemption system (Dhabi System).

Imported material HS Code applied in IDB and Dhabi systems have to be identical.

The materials imported must be directly related to the finished product produced by the factory.

The imported materials cannot be any of the factory’s finished products.

During Under Construction Phase: Custom’s exemption is only granted for machines.

During Production Phase: Custom’s exemption is granted for raw materials along with spare parts and machines.

Required Documents

Machinery,machines and equipment information
Information about the raw and intermediate materials and semi-finished goods required for the industrial production purposes of the enterprise, as well as the packaging materials consumed through production processes, according to the goods’ information required to be amended.
Bill of lading
Certificate of origin
Purchase Invoice
Approvals of competent bodies.

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