How To Start Import-Export Business in UAE

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How to Start Import-Export Business in UAE

Dubai is one of the busiest cities in the United Arab Emirates (UAE) and business and
economic center. Many investors choose to open a business in Dubai because of the
best economic conditions and the fact that the city encourages foreign direct
investments. IBSS company formation, it is advisable to seek the help of a specialized
professional. IBSS should be carefully considered, especially when investing in
important business sectors like imports and exports. Certain businesses will require
special permits and licenses as well as approvals from the government ministries. Our
IBSS firm in Dubai works with qualified professionals and we can help you set up your
new business.

Your import and export services needs:


If your company start with trade or the export of products, you should need to register
with Dubai Customs. Like many government departments, Dubai Customs now provides
of e -Services to efficiently manage the import and export of goods.
Registering with Dubai Customs is straight forward and can be done online, although
you will need to present some documents to the customs office . All goods imported
and exported from Dubai must pass through the customs office. Dubai Customs a
working list of prohibited items for import and export. Dubai Customs has collaborated
with DP World and JAFZA to create the online portal Dubai Trade. which provide a one-
stop-shop for most import/export and trading procedures in Dubai.
The trade agreements between the UAE and other countries limits The tariffs put on
goods traded between those countries. The UAE has agreements with so many
countries. To find out more about agreements, and effect on your business, contact
Dubai Customs directly.

Dubai Export Development Services

There are increasing numbers of companies within the United Arab Emirates (UAE) and
a growing range of products under of Commercial, Electrical and Consumer goods for
export. To ensure smooth customs clearance, products require certification and
inspection to meet the quality and safety requirements for imports for many countries
around the world.

How do I obtain an Import Code for the UAE?


First you have a valid Trade Licence, either in Dubai, Abu Dhabi, the so many UAE or
one of the UAE Freezones, which permits you to import and export goods, you will then
need to obtain a UAE Import Code. This is an ID issued by UAE authorities by UAE
importers in order that the goods imported can clear UAE customs.

In order to obtain this code you will require:

A valid UAE Company Trade Licence with the activity of ‘Importing’ on it

A Passport Copy of the General Manager on the Licence

A copy of the Emirates Resident Visa for the General Manager of the companyA copy of
the Emirates ID card for the General Manager of the company

How
UAE?do I import goods into the
There are three ways in which goods can be imported into the UAE: by air, sea or road.
The decision on which option best suits your needs will depend on many factors:
available budget, time constraints, storage needs, weight, dimensions and fragility of the
goods should all be considered.

Main Ports and airports in the UAE

The main shipping ports of the UAE are:

• Jebel Ali,
• Mina Rashid,
• Mina Zayed,
• Mina Khalid
• Khor Fakkan

In addition, there are major airports located in:

• Dubai
• Abu Dhabi
• Fujairah
• Ras-Al-Khaimah

These give import-export businesses easy access to worldwide markets and lots of
options in terms of how to move freight around the country and internationally.

How do I ship products into the UAE?


Importing products into the UAE by Sea Freight

In order to import products into the UAE by sea freight, the exporter should provide the
importer with the following four documents:

• Original bill of lading copies


• Commercial invoice
• Packing list
• Certificate of Origin

The importer should then submit the original bill of lading certificate to the shipping
agent who issues a delivery order. The importer should be conduct all cargo clearance
requirements and Dubai, submit the Import Declaration application for UAE Customs
clearance online through dubaitrade.ae.

Customs duties and other fees can be paid online using the CDR (Customs Duty Credit)
account or by credit/debit card. Once this has been done, the importer can print the
Customs Import Declaration. UAE Customs will then verify the information provided and

may inspect the cargo before its release. At this time, the importer can then arrange for
a freight forwarding company to take delivery of the cargo at the port.

Importing products into the UAE by Air Freight:-


Importing by air represents a more time efficient way to bring goods into the UAE. Most
air shipments reach their destination in less than 48 hours. Using air freight also lowers
the need for physical handling of goods and, therefore reduces the risk of damage to
the consignment. However, it can be more expensive and impractical for consignments
that are either very heavy and/or have large dimensions.

In order for goods to be imported into the UAE by air freight, the importer will require the
following documents:

• Original Air Waybill


• Commercial invoice
• Packing list
• Certificate of origin

Certain specific goods such as food and beverages, cosmetics, pharmaceuticals,


wireless communication equipment and live animals are subject to further regulations
and may require other permits and documentation in addition to the above.

Once goods have cleared customs, with all the required documentation and all
payments have been made, the shipment can be forwarded to its final destination.

Importing products into the UAE by Road Haulage


In the UAE 5% of all exports are by road. Road haulage is necessary as a means to get
goods from a factory to a port or airport even if sea or air freight is the chosen method of
transporting the goods internationally. It is therefore relevant to all import-export
processes.

Road haulage rates are generally lower than both air freight and sea freight costs and
transit time can often be shorter, particularly if importing from a neighbouring country.
Road haulage companies also tend to operate on a door-to-door basis and there is far
less documentation required, which streamlines the importation process significantly. To
import by road you will need:

• A customs-authorised bill of entry


• A commercial invoice
• A bill of lading (normally designed by the road haulier)
• A 5% customs duty is levied upon entry into the UAE.

What taxes are applicable on imports into


the UAE?
UAE Import tax

Import tax is a duty collected when either a private individual or business entity import
goods into a country. The rate of import tax levied is usually dependent on the value, or
type of goods being imported and the country of origin. In the UAE, the rate of import
tax ranges from 0% to 5%, with an average of 4.61%. There are higher rates of tax
applied to some products such as alcohol or tobacco.

The UAE import tax applies, only to goods whose value is greater than AED 1,000 and
free-trade zones in the UAE are exempt from the tax. Meaning that if the business is
operating from one of the free trade zones of the UAE, importing goods for onward sale,
there is no import tax levied. Import tax is only levied if the goods are shipped into
mainland UAE from the Freezone.

UAE Value-added Tax (VAT)


VAT was introduced in the UAE on 1 January 2018 at a rate of 5%. This applies to the
majority of transactions, in goods and services. VAT is imposed by the UAE government
on tax registered businesses at each step of the supply chain.

A business must register for VAT if its taxable and imports exceed a threshold of AED
375,000. If a businesses’ taxable supplies and imports is greater than AED 187,500,
then it can voluntarily register for VAT and if the value of imports is less than this, then it
is not necessary to register.

UAE Excise tax


The excise tax was first introduced in the UAE in 2017. Its aim was to reduce the
consumption of unhealthy and harmful products and raise the health awareness of its
citizens. Excise tax is only levied on a small number of products that are considered
harmful to human health or the environment, such as tobacco, electronic smoking
devices or products with added sugar or sweeteners .

How can IBSS Consultant help with setting up and


import goods into the UAE?
IBSS Consultant has extensive teams, experience and knowledge across Dubai, Abu
Dhabi, the wider UAE, Oman and Qatar, providing professional assistance and guidance
for international companies, entrepreneurs and investors on the best way to set up to
import and sell products into the local market.
Our dedicated operations teams and IBSS have strong relationships with local
government authorities to ensure that the correct information is provided, and
requirements are met in an effectively and timely manner. We can assist you in
obtaining the correct Trade Licence for your import-export business in the UAE, as well
as to obtain staff and family visas and help you with any documentation pertaining to
import perIBSS Consultant also provide a secure corporate Nominee Local Shareholder
and Commercial Agency platform to allow foreign companies and investors to safely
establish their businesses in the UAE, Qatar or Oman - we ensure that the foreign party
has full management control of their products, business and full transparency with local
on the ground support.
If you need assistance and advice on importing goods into the UAE and for further
information on any other related company set up, local partner or IBSS Consultant
matter in the UAE and wider Gulf do get in touch with us on

Contact +971-506639697 Email- info@ibssconsultant.com

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