Telephone Numbers
Telephone Numbers
Importing in Dubai UAE
For detailed information +90 542 381 3868 'Call.
The most significant international trade event in UAE Dubai was Expo 2020 Dubai, held between October 1, 2021, and March 31, 2022. According to various media sources, the Expo received approximately 24 million visitors and hosted 192 participating countries.
It was estimated that the Expo would generate revenue between USD 17 billion and 23 billion. A survey conducted by the Dubai Chamber of Commerce revealed that during the Expo, 76.5% of companies in Dubai recorded growth, and 73% of businesses stated that they expanded their business relationships.
The Dubai Customs Authority recently issued Policy No. 54/2022, implementing the Comprehensive Economic Partnership Agreement (CEPA) between UAE Dubai and India. The CEPA came into effect in May 2022 and provides customs advantages and preferential treatment for the import of various goods, including:
According to the Indian Ambassador to UAE Dubai, the implementation of the CEPA is projected to increase trade between UAE Dubai and India from USD 60 billion to USD 100 billion over the next five years. UAE Dubai is currently India's third-largest trading partner, accounting for 40% of its trade in the MENA (Middle East and North Africa) region.
UAE Dubai and the United Kingdom have a long-standing trade relationship. Economists generally believe that any negative impact of Brexit on this relationship will be short-lived. This is because the United Kingdom has a continuing interest in maintaining a solid trade relationship with UAE Dubai, regardless of Brexit. A spokesperson for the UK Department for International Trade stated that UAE Dubai is a vital global trading partner for the United Kingdom.
UAE Dubai has been a member of the WTO since April 10, 1996, and is a party to various international, regional, and bilateral trade agreements.
Some of the most significant trade agreements of UAE Dubai are:
As a member of the GCC, UAE Dubai is negotiating several additional trade agreements, including with the EU, China, India, and Australia.
UAE Dubai has also enacted laws and ratified a series of GCC bilateral agreements that allow GCC citizens to do business in UAE Dubai, including:
The GCC Commercial Agreement has opened up cross-border trade in services in various sectors, including:
In September 2021, UAE Dubai announced its plans to enter into and focus on bilateral economic agreements with eight key countries:
On May 31, 2022, UAE Dubai and Israel signed a free trade agreement (FTA). UAE Dubai agreed to remove tariffs on 96% of goods imported from Israel. The Israeli Government stated that the agreement will accelerate trade in goods such as food and pharmaceuticals in UAE Dubai, while increasing competition in the allocation of government procurement contracts. It is estimated that about 1,000 Israeli companies will be established in Dubai before the end of 2022.
The Department of Trade Negotiations and WTO, which is part of the UAE Dubai Ministry of Economy, is responsible for:
In the emirate of Abu Dhabi, the Free Trade Agreements Advisory Committee was established to facilitate relations and identify trade opportunities between Abu Dhabi and other countries.
The process for trade agreements to enter into force in UAE Dubai is the same as for other international agreements. After negotiations are concluded, a treaty must be signed and ratified.
The UAE Dubai Ministry of Economy leads the negotiations of bilateral and multilateral trade agreements. The agreements and international treaties signed by UAE Dubai are ratified by Federal Supreme Council decrees.
In addition, under the Arab Framework Agreement for the Liberalization of Trade in Services between Arab Countries (the Arab Agreement on Trade in Services), the following rules apply:
The Federal Customs Authority (FCA) is responsible for the implementation of customs laws and regulations. The legislation governing imports into UAE Dubai is the GCC Common Customs Law, supplemented by the Implementing Rules of the GCC Common Law (Implementing Rules). These are implemented by the UAE Dubai Federal Customs Law.
Businesses deal with the customs authorities of each emirate in their daily import/export transactions. These emirate-level authorities are:
The FCA can investigate import transactions through customs audits.
In case of import violations, the FCA has the authority to:
The GCC Common Customs Law introduces prison sentences (up to three years) for import/export violations. However, this is rarely applied.
In Dubai, customs e-clearance can be obtained through an online clearance system called E-Mirsal Transactional Processing. The applicant must provide the following to the customs authorities to obtain approval before an import transaction:
The applicant can then print the customs declaration and pay the customs duties and registration fees.
There is also a Customs Consultancy Service in UAE Dubai. The Customs Consultancy Service allows importers to ensure compliance and avoid clearance delays by consulting with customs authorities on issues such as tariff classification, valuation, and the country of origin of goods.
Some of the services offered by the Customs Consultancy Services are:
Depending on the type of decision (e.g., valuation of goods or imposition of penalties), customs decisions can be appealed to one of the following:
For example, Dubai Customs allows appeals against decisions related to the following to be filed with the authority itself:
According to Dubai Customs policy, appeals must be resolved within five business days. Appeals can be made free of charge, except for legal cases, in which case a fee of AED 200 is payable.
The UAE Dubai Authorized Economic Operator (AEO) program provides benefits to businesses engaged in international trade activities that meet the requirements related to customs compliance and international supply chain security. The advantages include:
To obtain AEO status, an applicant must meet the following criteria:
AEO certification is issued by the FCA through a centralized system. Applications must be made to the FCA and may require verification by local customs authorities and on-site inspections. The FCA may work with the customs authorities of each emirate to verify the information provided in applications and to conduct on-site inspections if necessary. The certification process requires compliance with specific conditions and the submission of certain documents. The certification level and validity period may vary. The AEO certificate is valid for a specific period and needs to be renewed accordingly.
UAE Dubai has MRAs in effect with countries such as China, Indonesia, Saudi Arabia, and South Korea.
The FCA's website provides access to the GCC Unified Customs Tariff and the latest list of applicable import duties for UAE Dubai.
Most imported products are subject to a 5% customs duty. A 50% tax is applied to the import of alcohol.
Additionally, pursuant to UAE Dubai Cabinet Decision No. (52) of 2019 on Excise Goods, Excise Tax Rates, and Methods of Calculating the Excise Price, certain goods are subject to excise tax as follows:
Products imported from other GCC countries are generally not subject to customs duty if the applicable import procedures are followed.
Furthermore, imports of goods produced in countries party to the 1998 Greater Arab Free Trade Agreement are exempt from customs duties.
Customs authorities also publish guides containing information on customs duties.
UAE Dubai applies preferential tariffs to goods imported from the following countries:
The Government of UAE Dubai allows for the temporary importation of goods for specific purposes and specific periods by suspending customs duties until the goods are used or re-exported. However, importers are generally required to submit cash or bank guarantees equivalent to the customs duties before approval.
Goods eligible for temporary entry include:
Dubai Customs has published further guidance on each of the items listed above. Failure to re-export the goods after the expiration of the applicable period is subject to a fine of USD 272 for each week of delay, up to a maximum of 20% of the value of the goods.
Individuals can import personal items with a value of up to AED 3,000 without having to declare them to the customs authorities. Personal items must be in limited quantities and not imported for commercial use. Additionally, individuals must not import the items regularly.
Cigarettes and alcohol can only be imported by persons over 18 years of age. Individuals can only bring up to four liters of alcohol or two cartons of beer (each consisting of 24 cans, not exceeding 355 ml per can) into UAE Dubai. Personal cigarette imports must not exceed 400 sticks and a value of AED 2,000.
Generally, the de minimis value for commercial shipments is AED 1,000. Goods with a value below this threshold can enter UAE Dubai tax-free and duty-free.
In UAE Dubai, there are more than 40 multi-disciplinary free zones that allow expatriates and foreign investors full ownership of companies, full repatriation of capital and profits, and some customs-related advantages that vary depending on the free zone. For example, imports into the Jebel Ali Free Zone Authority (JAFZA) are exempt from import and re-export duties. Each free zone offers various economic and industrial benefits for investors.
In 2019, the Abu Dhabi Government launched a bonded warehouse system that allows importers to store imported goods without paying customs duties. In Dubai, local companies can apply for a customs warehouse license, which allows them to store goods under the supervision of Dubai Customs for a certain period without paying customs duties. The application fees are AED 25,000 for a private warehouse license and AED 150,000 for a public warehouse license.
To import goods into UAE Dubai, commercial entities must:
The import of certain products is also subject to special registration and permit requirements.
Under Federal Decree-Law No. (50) of 2022 enacting the Commercial Transactions Law, the country of origin of goods imported into UAE Dubai must be clearly and permanently marked. The country of origin must be specified:
Violation of the country of origin marking requirements entails penalties, including fines and refusal to clear the goods from customs.
UAE Dubai generally does not impose quotas on imports or exports, with some exceptions. For example, UAE Dubai may:
UAE Dubai imposes localization requirements for businesses that vary depending on the sector and industry, such as Emiratisation regulations in certain sectors and requirements to have a physical presence in UAE Dubai. As a member of the WTO, UAE Dubai is subject to the Agreement on Trade-Related Investment Measures (TRIMs), which prohibits discriminatory measures against foreign goods, services, and suppliers.
UAE Dubai imposes local content requirements for government procurement purposes to support the local economy. These vary depending on the relevant sector or industry and include, for example, requirements for a certain percentage of goods or services to be procured from local companies or for a minimum percentage of the work to be carried out by local companies.
UAE Dubai has taken measures to guarantee civil liberties. The UAE Dubai Constitution outlines the freedoms and rights of all citizens. It prohibits torture, arbitrary arrest, and detention, and protects certain civil liberties such as freedom of speech and press, peaceful assembly and association, and the practice of religious beliefs.
UAE Dubai has also launched a comprehensive action plan to combat and fight human trafficking under Federal Law, as amended by Federal Law No. (1) of 2015. It includes all forms of sexual exploitation, involving others in prostitution, slavery, forced labor, organ trafficking, forced service, enslavement, begging, and quasi-slavery practices. Furthermore, the law imposes sanctions on individuals who do not report human trafficking crimes and introduces measures to protect victims and witnesses. Offenders face a fine of at least AED 100,000 and at least five years of imprisonment.
Other laws in UAE Dubai that address human trafficking are:
Climate change in UAE Dubai is expected to lead to hotter weather, less rainfall, droughts, higher sea levels, and more storms. UAE Dubai has formally brought climate change policy under the Ministry's scope by renaming the Ministry of Environment and Water to the Ministry of Climate Change and Environment.
The above laws and regulations require businesses to exercise due diligence and take preventive measures to prevent forced labor, human rights violations, and environmental issues in their supply chains and organizations.
Goods that are prohibited from import are:
Following the entry into force of the Abraham Accords in 2020, the import of goods produced in Israel is no longer prohibited.
Goods subject to licensing requirements include:
In general, all entities importing goods to UAE Dubai must have the relevant license and authorization to import said goods (if required). The procedure for importing goods varies depending on the goods, but generally involves the establishment of a licensed entity to import the relevant goods (on the mainland through the Department of Economic Development or in one of the economic free zones). This may involve obtaining approval from a regulatory body. For example, for an importer to import food into Dubai, they would need a permit from the Food and Safety Department of the Dubai Municipality.
Labeling regulations apply to all products shipped in wholesale and retail sized packaging.
Labels must:
Arabic labels and stickers must contain the following minimum information:
Expiry dates must be printed in the following order:
The penalties for non-compliance with import regulations are specified in Article 145 of the GCC Common Customs Law and include:
The above penalties can be doubled for repeated offenses.
Offenders may request a conciliatory settlement to obtain a reduction in penalties before a case begins or during the trial of a case, but before the first-instance court's decision is issued (GCC Customs Law, Article 151).
The FCA's Audit Department can conduct customs audits at any time. The Audit Department may request a company to prepare relevant import/export documents to identify possible violations of customs legislation.
Customs audits are subject to various laws and regulations, including:
In case of a violation, the Audit Department may impose penalties and fines in addition to the payment of applicable customs duties.
To prepare for customs audits, importers need to have internal compliance procedures and controls, which include the review of customs documents, financial accounts, and import entries.
Trade remedies are protective instruments that allow governments to take action against imports that cause material injury to a local industry and to combat harmful practices in international trade.
The main legislation on trade remedies is the GCC Common Law on Anti-Dumping, Countervailing, and Safeguard Measures and its Implementing Rules, approved by Federal Law No. (7) of 2005 (GCC Common Anti-Dumping Law). The GCC Common Anti-Dumping Law is generally consistent with WTO rules and agreements.
The UAE Dubai Ministry of Economy's Anti-Dumping Department is responsible for conducting investigations and imposing trade remedies.
At the GCC level, the competent authorities are:
UAE Dubai does not use trade remedies other than anti-dumping duties, countervailing duties, and safeguard measures.
Trade remedies have been applied in only a very few cases, and these were mostly implemented at the GCC level.
The UAE Dubai and GCC legislation on trade remedies does not explicitly provide for the application of the lesser duty rule.
Final measures against dumping, subsidies, or an unfair increase in imports can be taken when it is definitively proven through investigations that there is dumping, subsidization, or an unfair increase in imports, and that the public interest of the GCC states requires them. Anti-dumping, countervailing, and safeguard measures can be in any form, including the imposition of customs fees and/or quantitative restrictions (Anti-Dumping Law, Article 6).
Foreign companies and producers have the right to participate in trade law investigations. During the investigation, foreign companies can present information and evidence showing that their goods are not being dumped or subsidized, or that the imposition of trade remedies could cause them serious harm.
It is important to note that trade remedies investigations in UAE Dubai may vary depending on the specific situation and the type of measure being applied.
At the GCC level, interested parties (including foreign producers of the goods under investigation) can participate in investigations. Any interested party may request to present a statement or evidence at a public hearing.
The UAE Dubai Ministry of Economy's Anti-Dumping Department is responsible for investigating possible circumvention of trade remedies.
Anti-circumvention procedures aim to prevent companies from avoiding trade remedies through changes in the product or production process. The FCA may initiate anti-circumvention investigations. Foreign companies can submit information and evidence to the FCA during the investigation. Anti-circumvention investigations may vary depending on the specific situation, but they are consistent with WTO rules.
The consequences of avoiding or evading trade remedies in UAE Dubai can be serious and may include fines and the imposition of additional trade remedies, including higher taxes and other measures to offset the effects of the circumvention. The amount of the fine depends on the specific circumstances of the case and the severity of the circumvention.
At the GCC level, the Standing Committee, upon the recommendation of the Technical Secretariat, may issue a notice on the initiation of a new investigation or a review of measures if it determines that there is circumvention that undermines the effectiveness of these measures.
Complaints against trade remedy decisions are heard by the Standing Committee, which is composed of representatives of the governments of the GCC states and has been established specifically for this purpose. The head of each state's delegation must be a deputy minister (or his duly authorized representative).
Additionally, any interested party may submit a written request to the GCC Standing Committee for a review of the measures if a reasonable period of at least one year has passed since their implementation. Reviews must be conducted expeditiously and concluded within 12 months of the date of initiation.
In 2017, Qatar requested consultations with UAE Dubai regarding measures on trade in goods, trade in services, and trade-related intellectual property rights from Qatar.
A Q&A guide to setting up a business in the United Arab Emirates.
This Q&A provides an overview of the key issues related to setting up a business in the United Arab Emirates, including an introduction to the legal system; available business vehicles and their applicable formalities; corporate governance structures and requirements; foreign investment incentives and restrictions; currency regulations, and tax and employment issues.
The legal system of UAE Dubai is based on civil law principles, along with Islamic sharia law. Sharia law influences criminal and civil law but does not fully cover commercial laws. The legal system has both sharia courts and civil courts, which handle different areas of the law. However, the financial free zones in UAE Dubai, namely the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), operate a common law system and have their own independent courts where cases are heard in English.
UAE Dubai is a federation of seven emirates: Dubai, Abu Dhabi, Ajman, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain.
The UAE Dubai Constitution grants certain powers to the federal government while allowing each emirate to have its own jurisdiction and control over its internal security and its oil and mineral wealth.
UAE Dubai is divided into mainland and free zones. Each emirate has:
Companies established in any free zone in UAE Dubai can be 100% foreign-owned, compared to the UAE Dubai mainland where certain foreign ownership restrictions may apply in limited cases (see Question 20). Furthermore, Emiratisation requirements do not necessarily apply in the free zones.
Definition. A sole proprietorship is a simple method of business where an individual trades on their own account through a trade license issued in their own name. This form of business is referred to as an "establishment" rather than a company.
Citizens of UAE Dubai and citizens of Gulf Cooperation Council (GCC) countries (subject to certain conditions) generally form sole proprietorships in Dubai.
Foreign nationals can also establish sole proprietorships, but the foreign sole proprietor must appoint a local service agent (an independent representative who is a UAE Dubai citizen or a company 100% owned by UAE Dubai citizens, which has no legal interest or liability in the business but can act as its representative in UAE Dubai).
Advantages and disadvantages. The advantage of this form is that the costs and formalities are low. The disadvantage is that the establishment has no legal personality separate from its owner, and therefore the sole proprietor is personally liable for the obligations of the business to the extent of all their assets.
Definition. A joint partnership is an arrangement between two or more partners, where each partner is jointly and severally liable for the obligations of the partnership without limit.
Advantages and disadvantages. The partners must be natural persons and are jointly and severally liable for the company's debts to the extent of all their personal assets. There is no real advantage to this type of legal form, and it is therefore rarely used.
Definition. Federal Law No. 32 of 2021 on Commercial Companies (CCL) defines a limited partnership as a company consisting of both:
Advantages and disadvantages. Joint partners are jointly and severally liable for the company's debts and act as merchants. There is no real advantage to this type of legal form and it is rarely used.
Definition. A civil partnership is a partnership used to conduct professional activities. It requires at least two separate partners with unlimited liability. A legal person can be a partner provided it conducts an activity or activities similar to that of the civil partnership.
A civil partnership must connect with a local service agent. Civil partnerships are subject to Federal Law No. 5 of 1985 (the Civil Code), not the CCL.
Advantages and disadvantages. While this entity can conduct professional activities, LLCs are mostly used for commercial activities. The disadvantages of this entity are:
Definition. LLCs are governed by the CCL. LLCs are generally the most suitable method for foreign investors to establish a business in UAE Dubai. Their form is similar to a private limited company in the United Kingdom.
An LLC must have between two and 50 shareholders (Article 71, CCL). Each shareholder is liable only to the extent of their capital share.
An LLC can also be established by a single (natural or legal person) shareholder, in which case the suffix "One Person Company LLC" must be added to the name. There is no specific situation or criterion for a single natural or legal person to own an LLC.
Advantages and disadvantages. One of the advantages is that LLCs are now permitted to have 100% foreign ownership for most of their commercial activities on the mainland and for all LLCs in free zones. No minimum capital is required, and the liability of shareholders is limited to their share in the capital. The disadvantages are:
Definition. PJSCs are governed by the CCL, which defines a PJSC as a company whose capital is divided into negotiable shares of equal value. A PJSC is very similar to a public limited company in the UK. Under the CCL, the shareholders of a PJSC are liable only to the extent of the value of their shares in the company.
A PJSC has a minimum capital requirement of AED 30 million. The provision for a nominal value per share has been removed under the new CCL.
Advantages and disadvantages. PJSCs have become very popular in UAE Dubai as they allow businesses to raise significant amounts of capital for large-scale projects. Furthermore, a PJSC is permitted to conduct banking and insurance activities, whereas other corporate vehicles are not.
However, a PJSC is a complex structure and involves many formalities as well as regulation and compliance by the Securities and Commodities Authority (SCA).
Definition. A private joint stock company is essentially the same as a PJSC (see above), with the following differences:
Advantages and disadvantages. Private joint stock companies are more popular among foreign investors than PJSCs. However, extensive corporate and regulatory approvals are required, including prior approval from the MOE regarding the articles of association.
The procedures for establishing a private joint stock company are similar to those for a PJSC.
Definition. A branch is legally an extension of the parent company and does not have a separate legal identity. Therefore, the name of a branch must be the same as that of the parent company.
A branch in UAE Dubai can only engage in activities similar to those of the parent company, and its activities must be licensed by the relevant DED or free zone authority.
Branches (except those in free zones) cannot import, export, manufacture, and distribute products belonging to the parent company.
A branch established on the UAE Dubai mainland must be registered with the MOE, which requires the submission of:
All liability of the branch rests with the parent company.
Advantages and disadvantages. One of the reasons for opening a branch in UAE Dubai is that the foreign company can conduct its activities from UAE Dubai and have a global presence. Additionally, the branch can act as a representative/marketing office of the parent company.
The branch is 100% owned by the parent company and has no separate legal personality, and therefore the activities of the branch can be consolidated with the financial statements of the parent company.
From a practical perspective, local companies can also establish branches within UAE Dubai to conduct their operations from different locations; for example, stores or restaurants with multiple branches. From a UAE Dubai law perspective, there is no tax advantage to opening a branch, as neither an LLC nor a branch is liable to pay tax.
The most common way for a foreign company to establish a presence in UAE Dubai is to incorporate an LLC or open a branch.
Under the CCL, a mainland LLC can be 100% foreign-owned, subject to the approval of its proposed activities by the authorities. No restrictions apply to 100% foreign-owned LLCs in free zones.
A foreign entity can open a branch in UAE Dubai to carry out:
A branch does not need to have its own memorandum and articles of association, as those of the parent company apply.
An overseas company can trade directly in UAE Dubai through a commercial agent or a company registered in UAE Dubai.
Licensing and other legal/regulatory requirements.
Advantages/Disadvantages. A branch cannot be used by a foreign company to carry out trade and distribution activities on the UAE Dubai mainland; therefore, this option is only suitable for a foreign company that wants to trade through a branch in a free zone (see Question 2 and Question 3).
Definition. The overseas company can enter into a distribution or commercial agency agreement with an existing commercial agent who is licensed to import and distribute products in UAE Dubai.
Overseas producers or traders who want to regularly import large quantities of goods into Dubai can do so through a commercial agency agreement. They can use a registered or unregistered agent (see below, Advantages/disadvantages).
Licensing and other legal/regulatory requirements. At the federal level, only a UAE Dubai citizen or a company wholly owned by UAE Dubai citizens can be a commercial agent (UAE Dubai Agency Law No. 18 of 1981). Therefore, any chosen agent must meet the criteria specified under this law and be licensed to import and/or distribute products in UAE Dubai. However, it is not mandatory for most products to be distributed through a registered agent. Parties can enter into distribution agreements that are not registered with the MOE. Therefore, a company that is wholly owned by foreigners can still act as an unregistered agent or distributor without needing to register an agency or distributorship agreement with the MOE.
Advantages and disadvantages. An advantage for registered commercial agents is that the registered agency agreement with the MOE cannot be terminated without the agreement of both/all parties, or if there is a just cause for termination.
However, the nationality restrictions on agents (see above) are a disadvantage because only UAE Dubai citizens can conduct registered commercial agency business.
Applicable legislation/regulation. CCL.
Partnership agreements. A partnership agreement is required.
Liability of partners. The liability of the partners is unlimited.
Assets. Assets are held in the name of the partnership.
Legal personality. The partnership has a separate legal personality, but the partners are personally liable for the partnership's debts.
Taxation. Tax in partnership companies
The Dubai Government of the UAE authorises temporary imports of goods for certain purposes and for certain periods of time, suspending customs duties until the imported goods are used or re-exported. However, importers are generally required to submit cash or bank guarantees equivalent to customs duties prior to approval.
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