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Why are the UAE a Beneficial Jurisdiction for Trading and Manufacturing Companies?

  • Modern seaports and airports for any type of goods: from containers and bulk cargo to special products and raw materials.
  • Developed infrastructure of logistics and customs warehouses — especially in zones like Jebel Ali (including the separate free zone JAFZA).
  • Separate free zones allow for VAT and duty optimization if you properly arrange the supply route and the registration location of your company.
  • If your company is registered in the right zone, you can save at least 5% VAT and avoid customs duties on certain categories of goods.
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What Fees and Taxes Should Be Considered When Importing Goods?

On average, if you import goods into the local territory of the Emirate, the costs are:

  • 5% customs duty;
  • 5% VAT.

If the goods remain within the separate free zone in temporary storage — you save 5% VAT, and in some cases (e.g., when importing raw materials for production) you do not pay duty at all.

But There is an Important Nuance

Even if you register a company in one free zone (e.g., Hamriyah, Sharjah), but the cargo enters through the port of another zone (e.g., Jebel Ali, Dubai) — as soon as it crosses the customs post, the obligation to pay VAT automatically arises. It can be refunded, but only with proper documentation and delivery confirmation.

Risks and Mistakes to Avoid

  1. Incorrect indication of the value of goods.
    The UAE customs have their own value registry. If you understate the price on the invoice — you may be re-evaluated, and the duty will be charged based on the "official" value.
  2. Incorrect packaging or lack of certification.
    Goods related to food products, children's products, pharmaceuticals, must have additional permits (e.g., halal certificate, Ministry of Health permits, etc.). Without them, delays or refusal of customs clearance are possible.
  3. Non-optimal company registration location.
    A mistake at the start can be costly: if the company is registered outside the separate zone, and the goods go through the free zone — you lose tax advantages.
  4. Ignoring preliminary logistics and expense calculations.
    In practice, we recommend budgeting at least 10% of the value of goods for all import-related expenses: this covers duties and potential costs for storage, inspection, and domestic delivery.
Personal Consultation — Your Investment in Peace of Mind

We have been working in the field of customs support and foreign economic activity for over 7 years. We will help check the group of goods, analyze the supply chain, choose the appropriate jurisdiction, and save on customs procedures without breaking the law.

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What Should Be Checked in Advance?

✔️ HS Code — determines requirements and duties

✔️ Category of goods — is certification or permits needed

✔️ Delivery route — through which zone will the cargo enter

✔️ Where your company is registered — this affects VAT obligations

✔️ Plans for storage and distribution — is internal delivery or storage in the free zone needed

We help clients understand customs rules from scratch, choose the right import strategy, and provide turnkey brokerage services.

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