New Dubai Customs duty charges 5% will now apply on Import of Goods exceeding AED 300 -effective date 01 Jan 2023

Dubai Customs Notice No. 5 of 2022 (Notice) issued in June 2022, have come into effect from January 1, 2023

Following notice from Dubai Customs – Notice No. 5 of 2022 – items with a value above AED 300 are now subject to customs clearance and customs duties. All goods with value that does not exceed AED 300, imported for personal purposes are exempt from customs duties.

This means residents shopping internationally with a value of over AED 300 will have to pay

– 5% import customs duty charge

– 5% Value Added Tax (VAT)

However, tobacco, tobacco products, e-cigarettes, nicotine liquid, alcoholic beverages and foods containing alcohol are excluded from the exemption of customs duties.

From January 1, 2023, tobacco, tobacco products, e-cigarettes and nicotine liquids of any value are subject to 200 per cent customs and excise tax or ‘sin tax’.

Since December 2019, the excise tax has been levied on specific goods, which are typically harmful to human health or the environment. This comprises 50 per cent tax on carbonated drinks, 100 per cent tax on tobacco products, energy drinks, electronic smoking devices and liquids used in such devices and tools, and 50 per cent tax on any product with added sugar or other sweeteners.

Some of the other provisions of the Notice are as follows:

SIMPLIFIED CUSTOMS CLERANCE (Article 3)

Submission of electronic invoices and electronic customs declaration through the regular Business2Government (B2G) channels, with the requirement to declare the following:

• Courier Imports with values below AED 300
• Courier export of consignments for values not exceeding AED 3000
• Courier transit form for transit consignments not exceeding AED 3000

CUSTOM CLEARANCE (Article 4)

Normal approved customs clearance procedures shall apply , custom declaration shall be submitted and electronic documents and invoices shall be accepted as per the following:

• Import consignments of value exceeding AED 300
• Export / Transit consignments exceeding AED 3000
• Incoming / Outgoing and transit consignments from/to Free Zones.
• Incoming / Outgoing and transit consignments from/to custom warehouse.

CUSTOM SERVICE CHARGES (Article 5)

Schedule of rates provided for consignments based on the value of the consignment.

• Custom service charges will not be collected on consignments of value not exceeding AED 3000
• Custom service charges of AED 10 per services will apply for consignments of value above AED 3000 and up to AED 15,000

REFUND OF CUSTOMS DEPOSITS AND CLAIMS SETTLEMENT (Article 1)

Procedures for claiming refund of Customs Deposits and settlements of claims.

REFRENCES

A copy of the Notice is available at

https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN5_2022.pdf