Dubai Customs has released Notice No.17/2020 on 22 October 2020, which relates to procedures for declaration of goods consumed within free zones. It entered into force on 25 October 2020.
This Notice distinguishes between goods that are consumed in the free zones and those sold to the United Arab Emirates’ local market, and it elaborates on how customs duties apply to each.
1. Goods that are not subject to customs duties are those:
2. Goods that are subject to customs duties are those:
This Notice implements the following changes:
Free zone companies will have to follow customs procedures, which include the submission of a consumption goods declaration, whether the goods are subject or not to customs duties. The consumption goods declaration must be completed at least on a quarterly basis with the required documents attached.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, kindly contact the Middle East Trade & Customs team at KPMG.
Wadih Abu Nasr
Head of Tax, KSA and Levant
Head of Tax, Lower Gulf
Director, Trade & Customs Leader, Middle East
Senior Director, Head of Indirect Tax, KSA
Partner, Indirect Tax, Lower Gulf
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