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.
Objectives
![](/-/media/Project/IDBV2/IDB/icons/013-development.png?h=128&w=128&hash=5EB8DA9BF8811FCCFC80620CA9933971)
Encourage the development of industrial establishments and projects in the United Arab Emirates.
![](/-/media/Project/IDBV2/IDB/icons/108-money-loss.png)
Decrease production costs
![](/-/media/Project/IDBV2/IDB/icons/146-workshop.png)
Increase competitiveness by increasing local exports and attracting investments.
Criteria
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Imported raw materials and equipment to be entered on customs exemption system (Dhabi System).
![](/-/media/Project/IDBV2/IDB/icons/121-offer.png)
Duty Exemptions are applied by the factory through customs exemption system (Dhabi System).
![](/-/media/Project/IDBV2/IDB/icons/122-padlock.png)
Imported material HS Code applied in IDB and Dhabi systems have to be identical.
![](/-/media/Project/IDBV2/IDB/icons/132-boxes.png)
The materials imported must be directly related to the finished product produced by the factory.
![](/-/media/Project/IDBV2/IDB/icons/069-technology.png)
![](/-/media/Project/IDBV2/IDB/icons/126-excavator.png)
During Under Construction Phase: Custom’s exemption is only granted for machines.
![](/-/media/Project/IDBV2/IDB/icons/132-boxes.png)
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.