Doing Business in UAE - Morison Menon

a deposit to Customs as a security against duty
liability.
Types of Deposit:
Duty Deposit:
Paid in lieu of duty when a possible exemption
is expected or in cases where the documents evidencing
exemption are not available at the time
of clearance.
Deposit against original documents:
Collected against lack of original invoice, certificate
of origin, packing list, bill of lading etc.
Import for Re-export/Ex.Free Zone Import for
Re-Export Deposit:
Collected on goods imported and cleared on Re-
Export Bills.
Transit and Inter-port Transfer Deposits:
Collected on goods cleared on Transit Bills
Ex.Free Zone Overland Export :
Collected on goods
exported out of Free Zones
and cleared on Ex.Free
Zone Export Bills.
Temporary Admission
Deposit:
Collected on goods
imported and cleared
on Temporary admission
bills.
Deposit for lack of documents:
Deposit against lack of documents is AED.500
against each document. Transit Deposits are usually
equal to the duty value of the consignment.
But Customs shall determine what is to be paid
in individual cases. Custom’s decision in such
cases is final. Deposit payments are rounded to
the nearest AED.100.
Refund of deposit:
Claims for refunds must be submitted to the Customs
Office where payment was made. Refund
cheques can be collected from the payment office
or the Customs Main Office as preferred by the
Shipper.
Claims for refund of Deposits are subject to
time limits. In summary they are as follows:
Deposit against original documents:
Refundable if claimed within 60 days. Claims
submitted after this period shall be subject
to the following rates of deductions:
Doing Business in UAE and UAE Free Trade Zones 4th Edition 2006
• Claims submitted within 30 days from the
expiry date : Deduction of 25% of the deposit.
• Claims submitted within 31 to 60 days from
the expiry date: Deduction of 50% of the deposit.
• Claims submitted after the expiry of the
above period will be totally rejected.
Customs Duty Deposit: Refundable fully if
claimed within 60 days. Claims submitted after
this period shall be subject to the following rates
of deductions:
• Claims submitted within 30 days from the
expiry date: Deduction of 10% of the Deposit.
Import for Re-export Deposits: The goods must
be re-exported within 180 days from the date of
the bill. Refundable in full if claimed within 240
days. Claims submitted after this period shall be
subject to the following
rates of deductions:
• Claims submitted
within 1 to 60 days
after the expiry date:
Deduction of 15% of the
deposit.
• Claims submitted
within 61 days to 90
days after the expiry
date: Deduction of 30%
of the deposit.
• Claims submitted within 90 days to 120 days
after the expiry date: Deduction of 45% of the
deposit.
• Claims submitted after the above period will be
totally rejected.
Transit and Free Zone Export Deposits:
Goods must leave the country within 30 days.
Refundable fully if claimed within 45 days.
Claims submitted after this period shall be
subject to the following rates of deductions:
• Claims submitted within 15 days from the
expiry date: Deduction of 25% of the deposit.
• Claims submitted within 16 to 45 days from
the expiry date: Deduction of 50% of the deposit.
• Claims submitted after the above period will be
totally rejected.
Apart from the above, a penalty of 10% of the
value of the cargo will be imposed in case of
failure to export goods cleared for export from
Morison Menon
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General
Information