The UAE Government had launched “Emirates Block chain Strategy 2021” for fostering a flexible business and investment environment in the Emirate of Dubai, in addition to support government with the private sector and its logistical advantages, purposes of simplifying and facilitating customs procedures and regulating the movement of personal goods through E-commerce channels.
Dubai Customs recently published two Customs Notices (No. 09/2021 dated 10 May 2021 and No.
13/2021 dated 05 August 2021).
The exemption is applicable for both import / export of B2C and B2B e-commerce shipments having value below the specified limit.
Brief Update on Customs Notices
- The company is required to register in the Dubai Customs’ customer registration system without the activity in the trade license.
- Logistics companies allowed to clear goods on behalf of their associated companies as registered business customers.
- Customs Declarations from Rest of World (ROW)/GCC or Free Zone (FZ)/Customs Warehouse (CW) to Local, GCC/ROW to FZ/CW or vice versa.
- Companies must obtain approvals for restricted goods.
- Companies are permitted to amend or cancel personal goods customs declaration within 60 days from the date of registering the customs declaration
- They are kept along with all documents/orders, records of entry and exit of goods in an approved electronic archiving system.
- Companies’ electronic declarations and invoices shall be accepted.
- Dubai Customs Tariff & Origin Department shall be the concerned department for dispute resolution
Customs Notice No. 09/2021 (B2C e-commerce) 16/05/2021
- Customs Duty Exemption on goods whose value does not exceed AED 300 imported for personal purposes via postal parcels, courier companies.
- Tobacco and its derivatives, electronic smoking devices and tools, nicotine liquids, alcoholic beverages, and foods containing alcohol are excluded from exemption.
- No service charge for import of personal goods below AED 10,000
- Personal goods returned shall be exempted from Customs duties if returned within 60 days from the date of their exit.
Customs Notice No. 13/2021 (B2B e-commerce) 14/11/2021
- No service charge for movement of goods below AED 30,000
- Customs Declarations on transfer or transit within same or between Dubai based FZ / CW or FZ to CW or vice versa.
Dubai Cross-Border E-commerce Platform built on Block chain technology
The block chain-based platform, piloted will encourage e-commerce companies to set up shop in Dubai, official news agency WAM reported. Dubai Customs developed an innovative Cross-Border E-Commerce Platform built on Block chain technology. The platform is set to transform Dubai into a world-class e-commerce hub and attract more foreign direct investment into Dubai and the country.
The objective is to have 50% of government transactions managed through block chain platforms by 2021.This would enable the UAE to save over 11 billion Dirhams. The said platform would simplify and automate clearance procedures while allowing Dubai Customs to reduce or eliminate duty and service charges on ‘low-value’ shipments.
Among other benefits, the platform will enable us to:
- increase efficiency by eliminating declaration preparation time and reducing the cost of e-commerce transactions;
- provide 100% visibility and traceability on e-commerce transactions to all stakeholders;
- consolidate clearance and easily reconcile inventory by optimizing information sharing;
- Provide duty exemptions and a reduction in service charges.
A program that introduces participants in “Expo 2020 Dubai” to trade and customs facilities. Dubai Customs launched a cross-border e-commerce platform using Blockchain.
Dubai Customs saw the need to reinvent cross-border e-commerce business in partnership with all relevant stakeholders, and so examined the adoption of processes, technology and measures that will enable it to better control and facilitate B2C and B2B e-commerce transactions at import and export.