New Benefits Announced by Dubai Customs for Courier Companies
The strategic location of Dubai on the map has been advantageous for import and export companies. For decades, Dubai has been the connecting link between many European and East Asian nations and as a result, import and export businesses based in the UAE have witnessed a boost in their profits in recent years. Hence, the Dubai Government has been devising new policies for the smooth functioning of such companies.
In a recent development, Dubai Customs has issued Customs Notice No. (4/2019) (“the Notice”) to facilitate the customs procedures for export, transit and re-export shipments, carried out by courier companies by air. The Notice shall be applicable to all courier companies provided in the Customs Notice No. (8/2010) and No. (12/2010) from 1 July 2019.
The key updates are as follows:
Exports below AED 3,000:
Dubai Customs has eased the custom clearance requirement by changing the threshold from AED 1,000 to AED 3,000. Courier companies shall be required to complete the customs declaration using the approved simplified forms, which are as follows:
- Courier export declaration
- Courier transit declaration
Exports ranging from AED 3,000 to AED 15,000:
The main benefit, to exports valued at more than AED 3,000 and AED 15,000, is reduction in the processing fees for issuance of customs declaration from the current charge of AED 100 (for export and re-export declarations) and AED 50 (for transit declaration) to just AED 10 for all three cases. In the case of export, transit and re-export shipments valued from AED 3,000 up to AED 15,000, courier companies shall submit and complete their custom declarations via the electronic clearance system (Mirsal II) and shall adhere to the regular customs procedures using the following declarations:
- Export declaration
- Transit declaration
- Re-export declaration
Dubai Customs has not clarified whether the same benefits also apply to the re-export shipments valued below AED 3,000. It is expected that this matter shall be clarified in the near future.
Exports more than AED 15,000:
There are no variations to the current measures for the export, transit and re-export shipments valued at more than AED 15,000.
Dubai Customs is also striving to provide additional customs assistance for air shipments which have been completed by courier companies. The main agenda is to reduce the cost of exporting or transitioning low value goods entering/exiting Dubai.
Courier companies and other exporters of low value consignment goods should analyze the new benefits granted by Dubai Customs and incorporate them into their supply chains. It shall also be advantageous to conduct a more comprehensive review of their supply chains to ensure these are managed in the most efficient manner and are in line with the Dubai Customs and wider GCC Customs guidelines.
To understand the implications of these developments on your business, contact us at email@example.com
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