Doing Business in UAE - Morison Menon

the Free Zone.
Bank Guarantees
There are occasions when Customs will accept
Guarantees instead of payment by banks so as
to allow companies to facilitate their operations.
Guarantees are only acceptable if issued by a
Bank in UAE and the text must be in a form
acceptable to Customs. The period may be limited
but in many cases the Guarantee is automatically
renewed each year.
Standing Guarantees
Clearing and Forwarding Agents, Consignees
and all e-clearance consignees having export
may apply to Customs for permission to provide
a “Standing guarantee” as security instead
of making a cash deposit payment for each
consignment.
The following time limits and payments will
apply to bills cleared for import for Re-
Export under Standing Guarantee:
• Goods should be re-exported within
180 days from the date of the bill.
• Additional 60 days will be allowed to
submit the claim for release of the guarantee
• Claim submitted after 240 days, the following
percentage of fine will be applied on
the guaranteed amount:
• Claim submitted within 241 to 270 days
– 15%
• Claim submitted within 271-300 days – 30%
• Claim submitted after 300 days from the bill
date will be totally rejected and the guaranteed
amount in full should be paid.
• In case of non re-exportation
Full amount of duty must be paid within 30 days
after the expiry of the time limit for re-exportation
(180 days)
Otherwise for delayed payments, the following
payments will be applied:
Dhs 1000 if duty is paid within 31 – 60 days
after the expiry date.
Dhs 2000 if duty is paid within 61 – 90 days
after the expiry date.
The Standing Guarantee facility shall be withdrawn
in case the payment is delayed beyond the
above periods.
Doing Business in UAE and UAE Free Trade Zones 4th Edition 2006
46
Auction of Goods
When goods are not removed from Customs
premises within the stipulated period (3 months
for FCL cargo, vehicles and road moving equipment,
6 months for LCL and one month for
refrigerated and dangerous containerized cargo),
they are sold in public auction by Customs. The
sale proceeds are appropriated as follows:
1. In payment of auction expenses, customs duties,
port charges and other government charges.
2. To settle the carrier’s lien on the goods against
their proven claims within one year from the date of
auction.
The balance shall be retained for one year for re-
imbursement to the owner of documents of title
against proven claim.
The proceeds shall be transferred to non-refundable
government funds if no claims have been proven
within one year from the date of auction.
Restricted Goods
The following goods are not allowed to be
imported without a previous permission from the
concerned government bodies:
1.All kind of weapons and ammunition.
2.Alcohol and liquor.
3.Pharmaceuticals used for medicinal purposes.
4.Chemical, organic fertilizers, agricultural fixers and
lethal plant epidemics.
5.Seeds and agricultural arboretums.
6.Medicines and medical drugs.
7.Publications, visual and audio tapes.
8.Telecommunication equipment.
9.All foodstuffs.