Did you know the UAE ranks globally as the top region with an efficient customs process? So, if you’re planning to grow your business beyond the borders, you can expect quick customs clearance.
While this is the case, having proper documentation is essential when exporting goods out of the country. This is the only way to avoid shipment delays and costly penalties. You can also expect your clients to receive the shipment within a reasonable time.
If there are goods you’re expecting from abroad, you must receive the correct documents and information from the sender. This will ensure timely clearance of such items.
Does the customs clearance procedure confuse you? This guide highlights a few crucial aspects involved in customs clearance.
What Is Customs Clearance?
Customs clearance is the documentation issued to a shipper proving that they have paid the correct duty and the cargo can cross the border. Understanding the customs clearance process is critical in international shipping as it helps you avoid costly mistakes.
The Customs Clearance Process
Once your shipment arrives at customs, there are several steps you should take before it’s cleared to leave the country. Here’s a brief overview.
Customs Representatives Will Review Your Paperwork
Upon arrival at customs, you need to present the custom paperwork. These documents include information such as the export date and your contact information.
The Assessment of Taxes and Import Duties
The total duty you’ll pay will vary based on the goods you’re importing and the regulations of the country receiving them. Usually, your product taxes and custom duty will be computed depending on their customs value.
It’s advisable to use the services of a broker in such cases as they’re responsible for paying duty and taxes.
The Request for Payments of Taxes and Duty
If the products you’re shipping exceed the taxable threshold, the customs representatives will check whether you have cleared the taxes and duty. If you’ve paid the duty, the customs official will mark your shipment as DDP (Delivered Duty Paid).
If not, they’ll refer you to an independent customs broker to process your shipment. You’ll have to incur extra fees such as insurance, inspection, etc. Once paid, your courier of choice will transport the shipment to the end destination.
You’ll hardly experience cases where your shipment gets stuck at customs unless you have issues with paperwork.
Calculating and Paying of Duties in UAE
When clearing your items in the UAE, customs usually set their custom taxes at 5% of the CIF. You can expect to pay a 50% duty for carbonated and sweetened products. Note that you won’t pay any customs charges for agricultural products.
Expect severe restrictions if you’re planning on importing goods such as pig products or alcohol.
Learn the Key Aspects of Customs Clearance
Customs clearance is critical if you plan to clear goods you’re importing or exporting. While clearing your products, you need to provide documentation indicating that you have paid duty. This process is quicker if you work with a customs broker.
Are you planning to import or export goods but don’t know the steps to take? Talk to us today, and we will guide you on the right approaches to take.
