The UAE has fast become one of the world’s most successful trade hubs. Home to some of the busiest ports in the world, including Jebel Ali Port and airports with global connectivity, it offers seamless access to international markets. Business-friendly trade regulations, such as low import duties and modern customs regulations make it easier for businesses to boost the bottom line, while state-of-the-art logistics facilities, warehouses and customs systems make importing goods faster and more secure than ever. In this article we will explore how to import goods into the UAE.
How to import goods into the UAE
The UAE is well set up for businesses looking to import goods, with supportive business regulations and a more streamlined process than many other trade hubs. However, it can be easy to delay stages by failing to provide exactly what is needed, at the right time. For this reason, we always recommend working with a reputable business setup consultancy like Set Hub, to ensure the process is as seamless as possible.
To help give you a sense of what to expect, we’ve provided a step-by-step guide to the process of importing goods below.
Step 1: Register your business and get a trade license
All businesses legally require the right license to operate in Dubai. For import businesses, this will usually involve obtaining a trade license. You will need to ensure your trade license covers the type of goods you plan to import. You will also need to register your business name. Make sure to choose a name that accurately reflects your business and also adheres to UAE naming rules.
Step 2: Obtain an importer code and register for VAT
You will need to apply for an importer code with the UAE Federal Customs Authority. This will allow your business to legally import goods. If your annual turnover exceeds AED 375,000, you will also need to register for VAT with the Federal Tax Authority. This usually applies to most imported goods, but Set Hub will be able to help advise.
Step 3: Classify your goods and check regulations
You then need to determine the correct Harmonized System (HS) code for your products to identify customs duties and ensure compliance. Check if your goods are restricted, prohibited or require special approval from agencies like ESMA or Dubai Municipality.
Step 4: Prepare your documentation and ensure product compliance
Pull together all required documentation, including invoices, packing lists, bill of lading (or airway bill), certificate of origin and your import permit, if required. Don’t forget to make sure your products meet UAE labelling and packaging standards. Some goods must have Arabic labelling or specific certifications.
Step 5: Submit the import declaration and pay duties
File your import declaration and pay all applicable customs duties and VAT based on product classification.
Step 6: Clear your goods through customs
Once customs clear your shipment, which will include inspection if necessary, arrange for delivery to your warehouse or distribution centre. You should already have secured storage and logistics solutions to smooth the process.
Customs duties and taxes
If you’re importing goods into the UAE, you will need to have a good understanding of customs duties and taxes to ensure you are compliant and price your products correctly. Standard import duty tax rates stand at 5% for the Cost, Insurance, and Freight (CIF) value of the goods. This applies to most general goods entering the UAE mainland, but specific products may be subject to higher tariffs. Tobacco and alcohol products, for instance, hold much higher rates.
However, there are exceptions. If you plan to operate your business in one of several UAE free zones, you may be able to avoid customs duties, so long as the goods remain within the zone or are re-exported. However, as soon as those goods are transferred from a Free Zone into the UAE mainland, you will need to pay import duties at the point of entry.
Keep in mind that some goods may also require special approvals or certifications from government authorities before they can be imported. Goods like food, cosmetics, electronics and medical devices usually need additional clearance.
Finally, make sure to keep in mind that a VAT of 5% will usually apply to most imported goods unless specifically exempt. Importers must be VAT-registered if their taxable turnover exceeds AED 375,000 per year.
Documentation required for importing goods into the UAE
For a faster customs clearance experience, ensure you have the right documentation to hand. This includes:
- Commercial invoice with details on the value, description and quantity
- Packing list that lists the contents of each package, including dimensions and weight.
- Bill of Lading or Air Waybill as proof of transport and shipment
- Certificate of Origin that certifies the country where the goods were manufactured or processed.
- Trade license copy
- Customs Import Declaration
- Importer Code
- Insurance certificate
- Proof of insurance
You may also need to provide an import permit for restricted goods, product-specific approvals
Tips for smooth importing into the UAE
Here are three tips for importing goods into the UAE to give your business the best chance of success from the get-go.
Keep clear and consistent documentation
The wrong documents can cause unnecessary delays, costs and resources. Ensure all of your documents, including your commercial invoice, packing list and certificate of origin match in terms of quantity, value and product descriptions. Any discrepancies can lead to customs holds or fines.
Get the necessary approvals in advance
Some goods, like food and cosmetics, require approval from other regulatory authorities such as Dubai Municipality, MOHAP or ESMA. You can avoid delays by applying for these in advance.
Organise reliable logistics and storage solutions
Don’t lose yourself in the logistics of getting the goods into the country – what will happen once it’s there? Plan ahead for safe storage and distribution of your goods once cleared.
About Set Hub
With over 15 years of business setup experience in Dubai, Set Hub offers a comprehensive suite of solutions for entrepreneurs looking to import goods in the UAE, including trade licenses, customs registration and navigating UAE import regulations efficiently. We can also help with company formation, visa applications, corporate banking, tax and accounting, brand and marketing and office spaces. So, whether this is your first or your fifth business, we’re here to help. Get in touch with our friendly team of advisors today to find out how we can help you navigate the process of setting up a business in Dubai.
