Dubai Trade Laws and Implementations

Customs Laws / Trade as the UAE does not have its own customs law, like all other GCC states, it applies the Common Customs Law No. 85 of 2007 of the GCC States (the ‘Common Customs Law’). The Common Customs Law applies to all commodities crossing the customs line, at the points of importation or exportation. The commodities imported into the country are subject to the customs dues as specified in the Customs Tariff issued pursuant to the Common Customs Law. Any procedures, guides, laws or regulations issued/implemented in the UAE regarding customs are all subject to the Common Customs Law.

Import and Export Transactions:

Dubai is one of the main trade hubs worldwide and many companies choose Dubai as the centre for their trade transactions for many reasons. One of these reasons is the friendly online portal (‘Mirsal II’) created by Dubai Trade. The portal allows users to handle the clearance process for any imported or exported goods online. Below is a brief overview of the necessary procedures to be followed by companies planning to import into or export from the UAE.

Dubai is one of the main trade hubs worldwide and many companies choose Dubai as the centre for their trade transactions for many reasons. One of these reasons is the friendly online portal (‘Mirsal II’) created by Dubai Trade. The portal allows users to handle the clearance process for any imported or exported goods online. Below is a brief overview of the necessary procedures to be followed by companies planning to import into or export from the UAE.

For a company to obtain a Business Code, specific online steps should be followed. Thereafter, the company or its clearing agent must open a customs account through the Dubai Trade Portal: www.dubaitrade.ae; after paying a minimal fee and submitting the following documents:

1. Copy of the company’s trade licence.
2. Copy of the ID of the authorised person.

This account is subject to the approval of the Dubai Customs Authority. Once the customs account is approved, the company can proceed with import and export transactions once the required documents have been submitted.

The Required Documents for Importation and Exportation

The documents required for the customs declaration are not expressly defined in the Common Customs Law however, established practice makes it clear that the following documents are required regarding the import/export of goods:

(a) Importation

1. Bill of Lading/Airway Bill.
2. Commercial Invoice.
3. Packing List.
4. Certificate of Origin.
5. Special approval letters such as approval from Telecommunications Regulatory Authority (TRA), Emirates Authority for Standardization and Metrology (ESMA) or Dubai Municipality (only upon importing the products to the local market for trading purposes).

Importers in Dubai are granted 14 days to submit the original copies, or they may pay a guarantee of around 1,000 AED until they submit the original copies.

(b) Exportation

1. Commercial Invoice.
2. Customs declaration form processed through the system of Mirsal II.
3. Bill of Lading/Airway bill.
4. Packing List.

Mis-Declaration / Dubai Customs Common LAW:

As per Article (145) of the Common Customs Law, violating the restrictions of an import and export transaction of ‘smuggling’ which is an offence punishable by, confiscation and destruction of the goods.

Imposition of a fine (up to double the value of the Customs Duties on the goods in question).

Confiscation of the means of transportation and the tools and materials used in smuggling, excluding public means of transportation such as ships, aircraft, trains, and public vehicles, unless they are intended or hired for smuggling purposes; and/or the penalty may be doubled if the offence is repeated.

The Common Customs Law includes imprisonment charges (up to three years) however this is rarely enforced.

A Separate Mis-Declaration Penalty under Stalwart Shipping L.L.C Terms & Conditions is applicable with a minimum fine of $ 250,000 per Customs Declaration or more.