A Step-by-Step Guide to Customs Clearance in Dubai
A Step-by-Step Guide to Customs Clearance in Dubai
Table of Contents
Undoubtedly, international trade in Dubai comes with a number of complexities. Custom clearances are one of the most crucial aspects when we talk about exporting and importing goods from one country to another. This process occurs when a shipment enters or exits a country. It is important to focus on how we can strengthen international trade — Maggie Hassan. A smooth and efficient customs clearance can improve international trade. If we talk about Dubai, it comes at 15th exporter rank and 17th importer rank. Its total foreign trade value was AED 1.3 trillion (US$353.9 billion) in 2018.
Customs Clearance
It is a procedure of moving goods through the customs authorities to aid cargo movement to enter or exit from a country. This entire process involves identification and control at seaports, airports, and border crossings to make sure that international, and national, vehicles and other freight being exported or imported are not unlawfully exported or imported. This process confirms that all tariffs or taxes have been paid and all items have been sanctioned for export. Customs clearance also includes getting import and export permits to enter or exit a territory and country.
Customs IEC
Before carrying out the import or export in Dubai, it is important to have an IEC, Import-Export Code. IEC is issued by the applicable customs department in Dubai. You need this code to import and export goods to and from another country to Dubai. if your company has a valid trade license granted by the UAE licensing body and is involved in such trade activity, you can easily for IEC in Dubai. For that, you will need the below-mentioned documents:
- A copy of your passport, Emirates ID, and Visa
- A copy of your current trade license
- An undertaking letter in case of a professional license
Visit the official website of the customs in Dubai and register to fill out an online application along with the payment. After reviewing, they will approve and give you a customs code.
Steps to follow for customs clearance in Dubai
Customs clearance plays a key role in importing or exporting goods in Dubai. Based on the state law, you need to follow the processes. The whole process of customs clearance in Dubai requires the preparation, submission, and sanction of all the necessary permissions and documents. Dubai has its own customs clearance systems, which you must know.
A. Documents needed for customs clearance in Dubai
First of all, you need to prepare the required documentation. International trade in Dubai needs full and accurate paperwork according to the standards and rules established by both the destination and origin countries. While trading internationally, you must have detailed information about your business, shipment, and reasons for shipping. So, ensure you know paperwork has a great impact on the destiny of your goods. In any case, if your paperwork is not up to the mark, your shipment may get delayed or held at customs. You need to submit the original documents, which are mentioned below:
- The packing list on the shipper’s letterhead with signature and stamp
- Certificate of Origin
- Insurance certificate
- Invoice on Shipper’s Letterhead with signature and stamp
- Commercial Invoice
- Bill of Landing and copy (lading)
- Import or export licenses
B. Categorize your Goods
Next, you have to classify goods. The Harmonized System or HS code serves as an internationally standardized system used for goods classification. It is important to identify the right HS code to determine the applicable duty regulations and rates; otherwise, it can cause penalties and delays.
C. Know how much taxes and duties you need to pay
You may be responsible for paying import duties and taxes while importing goods. These charges are calculated according to the country of origin, HS code, and value of goods. In Dubai, customs duties and taxes are calculated with the help of CIF value. According to the agreement with GCC Common Tariff, it states that customs taxes of 5 percent of the CIF value of the majority of commodities are applicable.
D. Pay Duties and Taxes
If your shipment is applicable for duties and taxes, then you need to pay it. There are different payment methods to choose from.
E. Release of Goods
Once you successfully complete the customs clearance in Dubai, your shipment will be released for delivery to its final destination.
Conclusion
For successful delivery of your shipment in Dubai, you need to clear the customs clearance process. A skilled and professional customs broker can simplify the complicated customs clearance process.
