What are the current requirements/rules in the Dubai?
Dubai Customs has announced that, beginning January 1, 2019, all commercial and industrial companies operating under licenses issued by any of the Emirate of Dubai's free zones and holding a customs code issued by Dubai Customs will be required to comply with the new inven
tory system requirements. They must obtain a fully computerized, thoroughly auditable, and accountable inventory system to track the location of their imported goods until they are exported or disposed of outside or within the free zone. The proposed inventory management system and inventory movement records will benefit affected Free Zone businesses by allowing them to track both inbound and outbound inventory items and identify any discrepancies raised by reports.
Due to the inability to provide evidence of the goods' destination, Dubai Customs may assume, in accordance with Article 143 of the GCC Common Customs Law, that the entity is introducing its goods into the local market without following adequate customs formalities. When an entity is identified as a high-risk entity, Dubai Customs may request that the entity provide an inventory count for the audit period under consideration. Based on this information, Dubai customs will compare the entity's inventory count to the import and export customs declarations processed under its customs code during the same time period. If the comparison reveals significant discrepancies in quantities, weights, or values, Dubai Customs will request that the entity provide a customs reconciliation, accompanied by supporting documentation, to justify the discrepancies.
All about GCC free zones in 2021
In the UAE, the GCC free zone landscape includes more than 55 free zones. Companies operating out of GCC free zones benefit from significant ease of goods clearance and movement, in addition to the suspension of customs duties; however, they must navigate a maze of complex import, export, and border security regulations. These businesses must conduct periodic reviews of internal processes to assess customs entries made by the company or its third-party agents and implement corrective actions as needed to avoid potentially massive penalties in the event of noncompliance.
Companies that want to operate out of free zones must:
• Before beginning the import or export process, keep up to date on the constantly changing laws, regulations, and processes governing customs and international trade.
• Check and double-check declarations rather than assuming they are correct. Customs officials have the authority to challenge and audit information.
• Maintain strict compliance, which leads to effective customs duty management. Customs compliance management is also important for the importer or exporter because they are legally responsible for customs compliance at all stages of the customs process.
Compliance with GCC customs authorities laws necessitates internal controls, risk management, and overall competitiveness, which requires GCC FZ companies to better leverage their financial, accounting, and business systems. Companies will have access to the data they need to manage and plan for customs duties, manage export control licenses, screen transactions, and report each transaction in an efficient and compliant manner. Special customs and trade experience are required to assist businesses in selecting, implementing, and customizing effective trade automation solutions for internal record keeping.