Doing Business in UAE - Morison Menon

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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 The Standing Guarantee facility shall be withdrawn in case the payment is delayed beyond the above periods.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.
10.Living bees and bee queens. 11.Fireworks and explosives. 12.All kinds of camels. 13.”Habara” falcons. 14.Equine breed (horses, mules, donkey, ponies and zebras). GCC Customs Union The GCC customs union was implemented effective from 1st January 2003 based on the following prin- ciples: •A Common External Customs Tariff for products imported from outside of the GCC customs union. •A Common Customs Law. •Unified customs regulations and rules applicable in all member States. • Unification of the internal customs, financial and administrative regulations and procedures relating to importation, exportation and re-exportation in the GCC States. • The free movement of goods among the GCC States without customs or non-customs restrictions, while taking into considera- tion the implementation of the veterinary and agricultural quarantine regulations and the prohibited and restricted goods. • Treatment of the goods produced in any of the GCC States as national products. • Any land, sea or air customs port of the GCC States that has connection with the external world shall be deemed as a point of entry of the foreign goods into any member State. • The first customs port of the GCC States vis-à-vis the external world shall conduct the inspection of the goods imported to any member State, verify their conformity to the required documents, ensure that they do not contain any prohibited commodi- ties and collect the applicable customs duties. * * • Unification of the restrictions imposed on the goods permitted to be imported subject to the fulfil- ment of certain conditions in all the GCC States. • The adoption of unified rules for importation and movement of the government imports and of Doing Business in UAE and UAE Free Trade Zones 4th Edition 2006 exemptions from customs duties. • The goods whose importation is prohibited in certain member States while permitted in other member States shall be directly imported through the importing State or through another member State that permits entry of such goods provided that such goods shall not transit the territories of the member States that prohibit importation of these goods. • The foreign goods imported into the GCC States from the free zones shall be subject to the customs duties when exiting these zones and shall be treated during movement to the other member States the same as other foreign goods. • The common customs tariff of the GCC Customs Union shall be 5% on all foreign goods imported from outside of the Customs union with effect from 1st January 2003. Customs duties are collected at the first customs point of entry of the GCC States with the world as of 1st January 2003. The shares of the member States of the customs proceeds shall be distributed according to the final destination of the goods for the first three years following the establishment of the GCC customs union (Transitional Period). Goods taken from the free zones into the customs office shall be treated as foreign goods even if incorporating local raw materials or articles on which customs duties and taxes have been collected prior to their admission into the free zones. Morison Menon 47 General Information
Page 2 and 3: 4 th Edition 2006 Dubai: 204, Tower
Page 4 and 5: HH Sheikh Khalifa bin Zayed Al Nahy
Page 6 and 7: Foreword Writing a foreword is a go
Page 8 and 9: Preface The fourth edition of ‘Do
Page 10 and 11: The Country Geographic Location The
Page 12 and 13: ADVANTAGES OF UAE FOR BUSINESS Pro
Page 14 and 15: pany are not open for subscription
Page 16 and 17: Ministry of Economy prior to obtain
Page 18 and 19: importance of the industrial sector
Page 20 and 21: Contracting Firms have been classif
Page 22 and 23: •Board Resolution to open a branc
Page 24 and 25: (i) accounting, business, medical a
Page 26 and 27: • If the manager is a new appoint
Page 28 and 29: Dubai Industrial City (DIC) Locatio
Page 30 and 31: name shall not be registered in the
Page 32 and 33: Real Estate in the UAE The economy
Page 34 and 35: Key Communities Al Hamra Village -
Page 36 and 37: General Information Customs Procedu
Page 38 and 39: dure remain the same including depo
Page 42 and 43: Abu Dhabi Sea Port Port Zayed (Mina
Page 44 and 45: Dubai Port Tariffs Loading/Discharg
Page 46 and 47: Destination Mississippi Boston, Mas
Page 48 and 49: Immigration Requirements for New En
Page 50 and 51: Multiple-Entry Visas Multiple-entry
Page 52 and 53: Name of School Curriculum Location
Page 54 and 55: Dubai Education Council The creatio
Page 56 and 57: Dept of Economic Development, Dubai
Page 58 and 59: Location Established Distance Size
Page 60 and 61: DUBAI MARITIME CITY Location Establ
Page 62 and 63: Facilities Offered Rent Per Annum L
Page 64 and 65: Facilities Offered (Leasehold and F
Page 68 and 69: Facilities Offered Rental per annum
Page 72 and 73: Facilities Offered Rental per annum
Page 76 and 77: * Location Established Distance Siz
Page 78 and 79: HEAVY EQUIPMENT & TRUCK ZONE (HETZ)
Page 80 and 81: AUTO SPARE PARTS ZONE (ASPZ) Locati
Page 82 and 83: Business Segments Port facilities V

Doing Business in UAE - Morison Menon

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