The UAE is a global trade hub, attracting businesses looking to scale and cater to a growing audience. In 2023, the country’s imports reached US $448.69 billion, its highest ever. The country ranks 16th in global imports, with China, India, and the US as key trade partners.
But what’s driving these numbers? Demand.
Recent data shows that over 80% of Dubai shoppers prefer buying international products. The most popular imports include precious stones, electronics, and pharmaceuticals.
International sellers can serve this market, but establishing local operations in the UAE provides a competitive advantage. However, navigating import duties and customs regulations becomes crucial. Shipments may face clearance delays or rejections without proper documentation, law compliance, and necessary approvals.
This guide breaks down everything you need to know about UAE import duties and customs clearance. With the right knowledge, businesses can navigate cross-border trade smoothly and overcome roadblocks.
UAE import duties for different types of goods
The UAE is a member of the Gulf Cooperation Council (GCC) and follows a centralized customs tariff system. Most e-commerce goods are subject to a standard import duty of 5%, calculated based on Cost, Insurance, and Freight (CIF). Import duties are applied to the total value of the goods, including shipping and insurance costs. If you transport your products using air freight, the CIF value can increase due to higher shipping costs.
Since January 1, 2023, Dubai has lowered its de minimis threshold for customs duties to AED 300. Any shipment valued above AED 300 is subject to import duties, depending on the type of goods and their Harmonized System (HS) code. This policy change has caused e-commerce businesses and shipping companies to incur additional charges. However, the minimum threshold for shipments to Abu Dhabi remains AED 1000. The de minimis threshold applies to mainland trade and not free zones.
Customs authorities use HS codes to apply tariffs and taxes on imported goods.
On Locad’s Logistics Engine, you get HS code visibility to streamline labelling and accelerate shipping across the GCC.
In general, UAE import duties are 5% CIF. However, certain products attract higher tariff rates, while some are exempt from tariffs altogether. To ensure accurate duty calculation, businesses must classify products using HS codes. Here’s an overview of different types of products and their duty rates:
| Product | Import duty rate |
| Coffee, grain, and seeds | 0% |
| Pharmaceuticals and health supplements | 0% |
| Books and stationary | 0% |
| Mobile phones, computers, and other devices | 5% |
| Fashion and apparel | 5% |
| Furniture and kitchen appliances | 5% |
| Alcohol | 50% |
| Tobacco products | 100% |
Products manufactured in member GCC countries are exempt from UAE import duties as they are treated as local goods. To avail this, e-commerce businesses must present a valid certificate of origin. A specified percentage of the raw materials should also be sourced within GCC countries.
Goods manufactured in GCC member countries, like Saudi Arabia, can be exempt from UAE import duties.
Store your locally manufactured products in Locad’s Riyadh warehouse and ship to the UAE while minimizing duty costs.
UAE customs procedure for importing goods
Bringing goods into the UAE involves a step-by-step customs process to ensure compliance. Businesses must go through registration, documentation, and import duties before their shipments are cleared. Here’s a breakdown of the process.
Step 1: Registration with government authorities
Before importing goods into the UAE, businesses must register with relevant government authorities. The process includes:
- Registering for a trade license
- Registering with the Federal Tax Authority (FTA) for a Tax Registration Number (TRN)
- If a company is trading internationally, it should acquire an import license from its local economic department.
Step 2: Documents required
Missing or incorrect paperwork can cause additional fees and shipment delays. Below are the essential documents required for import into the UAE:
- Commercial invoice: This should include transaction details between the buyer and seller, product descriptions, value, and terms of sale.
- Certificate of origin: A certificate that confirms where the goods were manufactured and determines applicable duties.
- Customs declaration: This is a mandatory document. It should include all the shipment details so UAE customs can review it.
- Packing list: Provides complete shipment details, including weight, dimensions, and product descriptions. This helps with customs inspection.
Additional documents: Import permits or certificates may be required based on the nature of the goods.
Step 3: Code classification, product registration, and additional documents for specific goods
The UAE customs department classifies all imported goods using the Harmonized System (HS) code. This classification determines import duty rates, taxes, and regulatory requirements. Assigning the correct HS code ensures smooth customs clearance and avoids penalties.
Beyond classification, customs also checks if your shipment requires additional permits:
- Restricted Items – Goods like firearms, chemicals, and hazardous materials require special licenses before being imported.
- Duty-Exempt Goods – Products manufactured in GCC member countries may qualify for duty exemptions, but a certificate of origin must be provided as proof.
- Product Registration – Certain goods, such as packaged food and supplements, must be registered with the Dubai Municipality to meet local quality and safety standards. Even if a product has FDA approval or other global certifications, it must still comply with UAE regulations.
Ensure your products meet UAE regulations with proper classification and registration.
Locad offers product registration as part of its value-added services for seamless compliance and market entry.
Step 4: Customs-related services
The UAE offers customs-related services to help businesses navigate regulations and simplify the import process. To ensure compliance, importers can seek technical guidance on import duties, product valuation, and regulatory requirements. They can also request amendments or cancellations for customs declarations.
Many businesses work with companies like Locad to handle import procedures on their behalf (lmporter of record). This approach reduces administrative burden, minimizes errors, and ensures faster customs clearance.
Step 5: Digital platforms for customs clearance
The UAE utilizes digital platforms to make customs procedures faster and more efficient. Dubai Customs’ online portal allows importers to:
- Submit declarations
- Track shipments
- Pay import duties and taxes online
UAE’s complex customs procedures require proper registration, documentation, and compliance
With Locad as your Importer of Record (IoR), we handle the entire process—ensuring smooth clearance, regulatory compliance, and hassle-free imports.
Value-added taxes (VAT) when importing into the UAE
In addition to import duties, the UAE imposes VAT on most e-commerce products. The standard VAT rate is 5%, applied at every stage of the supply chain.
To import goods, businesses must complete a one-time VAT registration with the Federal Tax Authority (FTA). VAT and import tariffs are paid upon entry into the UAE. However, with an Importer of Record (IoR) service like Locad, businesses can streamline VAT payments and compliance.
The buyer must report the input VAT (on purchases) and output VAT (on sales) in their quarterly VAT return. This allows them to claim back the input VAT if eligible under the input VAT recovery rules.
How to reduce UAE import duties?
Import duties can add significant costs and decrease margins for e-commerce sellers importing inventory from outside the UAE. However, companies can minimize these expenses and improve profitability with the right strategies. Here are key ways to reduce customs duties:
- Utilize free trade zones (FTZ)
UAE import duties are only applicable when products are stored in the Mainland commercial zone, not the free trade zone (FTZ). The UAE has around 45 FTZs, making them a strategic option for companies that import, store, or re-export goods.
- Goods stored in FTZs are typically not subject to customs duties unless they are moved to the mainland for sale or use. In such cases, customs duties apply as per the GCC Common Customs Law.
- Qualifying Free Zone Persons (QFZPs): Businesses that meet specific criteria, such as having a substantial presence in the UAE and generating qualifying income, can benefit from a 0% corporate tax rate on qualifying income.
- Re-exports from UAE FTZs to other countries are also exempt from import duties. But if goods are imported with the sole intention of re-exporting them, a security deposit needs to be paid to customs. Businesses need to submit a declaration known as “Import for Re-Export to Local from ROW”.
E-commerce businesses can reduce import duties by storing goods in free zones while keeping a presence in the mainland for local sales. This balance helps cut costs while ensuring smooth distribution across the UAE.
Store your products duty-free in UAE Free Trade Zones (FTZs) and reduce import costs.
With Locad’s warehouse in Dubai South FTZ, import, store, and re-export goods seamlessly.
2. Leverage trade agreements
The UAE has bilateral and regional trade agreements that help businesses lower import duties and simplify customs procedures. These agreements, signed either directly by the UAE or through the Gulf Cooperation Council (GCC), provide preferential tariff rates and improved market access.
Businesses can benefit from these agreements by:
- Checking if their country of origin qualifies for preferential tariffs.
- Ensuring proper documentation, such as a Certificate of Origin, to claim exemptions.
- Staying updated on new trade agreements that can further reduce costs
Expand your business with duty savings through UAE trade agreements.
With Locad’s presence in Singapore, Indonesia, and China, streamline imports and benefit from preferential tariffs.
3. Store in bonded warehouses
Storing goods in bonded warehouses helps businesses minimize upfront import costs by deferring duty payments. Key benefits include:
- Deferred Duties & Taxes – Pay customs duties only when goods are released for local sale.
- Improved Cash Flow – Delay import payments, freeing up capital for other business needs.
- Faster Customs Processing – On-site customs oversight speeds up clearance when duties are due.
Store your goods duty-free with Locad’s bonded warehouse in Dubai South and defer import costs.
Pay customs duties only when your products are released for local sale, improving cash flow and flexibility.
4. Understand product categories with customs exemptions
Accurate HS code classification ensures your products are taxed correctly, preventing overpayment on import duties. Some items may qualify for lower duty rates based on their classification.
Partnering with import experts like Locad helps businesses classify goods correctly, ensuring compliance and cost savings.
What happens if UAE import duties are not paid on time?
Failure to pay customs duties on time can lead to shipment inspections, penalties, and fines. Customs officers conduct two types of inspections to verify shipments:
- Internal Inspection – This is conducted at the port before goods are cleared.
- External Inspection – This takes place at the importer’s warehouse or storage facility.
Fines that have to be paid in case of violations:
| Violation | Fine |
| Free zone | 10% CIF value |
| Late submission of documents | AED 50 |
| Declaring incorrect HS Code | AED 500 |
| Incorrect declaration | AED 500 |
Ensuring timely payments and accurate documentation helps businesses avoid delays and extra costs.
Ensure timely customs clearance and correct HS code classification to avoid fines and delays.
With Locad’s Importer of Record (IoR) service, we handle the entire process for smooth and compliant shipments.
How can Locad help businesses minimize UAE import duties and ensure customs clearance
Importing goods into the UAE comes with complex customs regulations that can be challenging to manage. Locad simplifies the process by managing end-to-end fulfillment in the UAE and Saudi Arabia.
Here’s how Locad supports businesses importing into the UAE:
- Importer of record (IoR) – Locad acts as your Importer of Record, handling customs clearance, documentation, and compliance. This ensures your shipments meet UAE regulations, avoiding delays, fines, or incorrect HS code classifications.
- Store in Dubai Mainland or FTZ – Locad offers warehousing solutions in both Dubai Mainland and Dubai South Free Trade Zone. Store goods in our Free Zone warehouse to avail benefits on import duties. For businesses requiring direct distribution, our Mainland warehouse ensures seamless fulfillment within the UAE and across the GCC regions.
- Seller of Record (SoR) – For businesses that want to sell in the UAE without setting up a local entity, Locad’s Seller of Record (SoR) service ensures compliance with tax and legal requirements. This allows businesses to operate in the UAE without additional setup.
- Last-Mile Delivery – Locad connects businesses with 50+ global and 10+ local last-mile carriers. The cheapest carrier is assigned based on shipment type, size, pick up and drop location. In addition, we also provide businesses with temperature controlled last-mile delivery, SDD and NDD options.
- Value-Added Services – Locad helps businesses register their products in compliance with UAE regulations. This includes ensuring products meet local safety standards and securing necessary certifications. By handling the registration process, Locad simplifies inbounding, enabling businesses to start selling in the UAE with ease.
Conclusion
Navigating UAE customs regulations can be complex, and non-compliance can result in fines and delays. To avoid these challenges, businesses need a trusted logistics partner who can handle the process efficiently. With Locad’s end-to-end logistics solutions, you get seamless customs clearance and freight forwarding to ensure your shipments move smoothly. Locad provides the expertise to reduce costs and simplify operations. Don’t let customs complexity slow your business down. Sign up with Locad today and start importing into the UAE with confidence!
