Dubai Extends 20% Refund On Customs Fees In Broad Stimulus Package

Trade & Policy

Dubai Extends 20% Refund On Customs Fees In Broad Stimulus Package

Dubai Customs has extended a refund of 20% on customs fees for traders of imported goods sold in local Dubai markets to 30 June. In addition to the refund on customs duties, announced on 14 May, Dubai Customs has introduced other relief measures, including the cancellation of the AED 50,000 (US$13,615) bank or cash guarantee previously needed for customs clearance processing. Clearance firms and customs brokers can get refunds by submitting requests on the Dubai Trade website, under its Dubai Customs Services interface. The customs office has also waived the requirement of a bank guarantee when submitting customs related grievances, and is now giving a 90% discount on fees charged for the submission of customs documents. The incentives offered by the customs office are part of a wide ranging stimulus package by the Dubai and United Arab Emirates (UAE) authorities to ameliorate the coronavirus pandemic's economic impact. In addition to stimulus by the UAE Central Bank to ease liquidity, the Ministry of Human Resources and Emiratisation has introduced a range of other measures. These simplify work permit applications and processing and ease the financial burden on companies by postponing some penalty payments, cutting fees, and reducing financial guarantee amounts. The Insurance Authority has also reduced the amount required in bank guarantees for foreign insurance companies and eased reporting measures. Of significance to foreign traders and investors are a suite of incentives introduced in Dubai's free zones by the Dubai Free Zones Council and by the individual free zones, including Dubai International Financial Centre, Dubai Silicon Oasis Authority, Dubai World Trade Centre Authority, Dubai South, and Dubai Healthcare City Authority. These have now put in place measures that reduce and postpone rental payments, cut fees on various free zone business services and paperwork, and defer fine payment. A full list of all the 107 incentives in operation in Dubai as of 14 May 2020 is published by Dubai FDI, the emirate's official foreign investment agency.