Introduction: 

The UAE remains a global logistics and trade hub, with China accounting for more than 15% of total UAE imports in 2024. For businesses or cross-border sellers, it is essential to master UAE customs regulations to help avoid delays, fines, and revenue losses. This guide will explain the latest tariff policies, customs clearance processes, customs clearance documents, and how freight forwarder can simplify logistics to help cross-border logistics operate efficiently. 

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Section 1: UAE Tariff Policy Updates in 2025

1. Domestic tax reform: Minimum supplementary tax (DMTT) for multinational enterprises

• Policy content

The UAE announced that from January 1, 2025, a 15% domestic minimum supplementary tax (DMTT) will be imposed on eligible multinational enterprises (MNEs). Applicable to multinational enterprises with global consolidated revenue of 750 million euros (about 3 billion dirhams) in at least two of the past four fiscal years.


Significance: Cooperate with the OECD's "two-pillar" international tax reform to reduce cross-border tax avoidance.

• Tax incentives

R&D tax credit: Starting in 2026, companies can receive a refundable tax credit of 30%-50%, with the specific proportion determined based on the size and revenue of the company.

High-value employment credit: Starting in 2025, companies that provide high-skilled jobs will receive a tax credit based on employee costs.

Significance: Balancing the tax burden.

2. Adjustment of import and export tariff policies

• General commodity tariffs

The UAE maintains a 5% basic tariff on most imported goods, calculated based on the CIF (cost, insurance and freight) value, and the value-added tax (VAT) is unified at 5%.
Special commodity tax rates: alcohol (50%), tobacco (100%), energy drinks (50%), etc. are subject to additional consumption tax.

• Free Trade Agreement (FTA) and CEPA network expansion
  The UAE continues to expand the coverage of the Comprehensive Economic Partnership Agreement (CEPA), and has signed agreements with 24 countries/regions, covering 25% of the world's population. CEPA promotes non-oil trade, logistics and technology exports by reducing or eliminating tariffs. For example, agreements with India, Israel and other countries have significantly reduced tariff barriers for specific goods.

• Measures to deal with US tariffs

The United States will impose a 10% base tariff on UAE goods from April 2025 (some energy products are exempted). The UAE has cushioned the impact by strengthening free trade zones (such as Dubai Auto City) and re-export trade policies, encouraging companies to use the tax-free advantages of free zones for re-export.

3. Regional tariff unification and digital management

• GCC unified tariff system

GCC unified tariff system
The Gulf Cooperation Council (GCC) will implement a 12-digit customs code system from January 2025, replacing the original 8-digit code, adding more than 5,600 subdivided tax items, and improving the accuracy of commodity classification. This move aims to simplify regional trade processes and reduce compliance costs.

• Customs service upgrade

The UAE Customs has launched an online portal to support companies to track tariff payments and transaction records in real time, and plans to optimize customs clearance efficiency through blockchain technology.

4. Tariff policy for specific industries

• Import of used cars

Used cars with an age of no more than 4 years are allowed to be imported, with a tariff of 5%, and VAT is calculated separately; right-hand drive vehicles are limited to re-export.

Import of accident cars, scrapped cars and modified cars is prohibited, and complete documents (such as bills of lading, certificates of origin) must be provided.

• New energy vehicles and parts

In line with the global low-carbon trend, the UAE provides tariff concessions on the import of electric vehicles and related parts to attract Chinese automakers (such as SAIC and BYD) to layout the Middle East and European markets through free trade zones.

5. Tariff Adjustment under the Economic Diversification Strategy

• Tax-free policy in free trade zones:

Enterprises in Jebel Ali Free Zone (JAFZA) and other areas can import goods without tariffs, provided that they are used for production or re-export in the zone.

• Digital services and technology investment:

plans to formulate special tariff rules for digital service tax (DST) and intellectual property-related goods to promote the localization of technology industries.

Significance: Promote the growth of non-oil economy.

Pro Tip:
Partner with China freight forwarder versed in UAE-GCC tax treaties to optimize duty liabilities.

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Section 2: UAE Customs Clearance Process in 2025

Step 1. Essential Documentation Preparation

1. Core Documents (required for all goods):

• Commercial Invoice: Must detail product name, quantity, value, buyer/seller information, and Incoterms (e.g., FOB, CIF).

• Packing List: Includes packaging details, gross/net weight, and dimensions.

• Bill of Lading (B/L) or Air Waybill (AWB): Transport contract proof with shipping terms and cargo status.

• Certificate of Origin: Chamber of Commerce certified; required for tariff preferences.

• Import License: Mandatory for regulated goods (e.g., food, pharmaceuticals).

2. Additional Documents for Specific Goods:

• Food: Sanitary/health certificates, Halal certification (for meat).

• Electronics: EMC compliance reports, type approval certificates.

• Chemicals: Material Safety Data Sheet (MSDS), hazardous goods declaration.

Step 2. Electronic Declaration & Submission

1. Customs Platform: Submit declarations via Dubai Trade or UAE Customs’ digital system. Provide HS code, origin country, and detailed cargo description.

2. Accuracy: Ensure declarations match supporting documents; discrepancies may lead to fines or cargo hold.

3. AEO Fast-Track: Businesses under the Authorized Economic Operator (AEO) Mutual Recognition Program (with Egypt, Bahrain, etc.) qualify for expedited clearance (within hours).

Step 3. Customs Inspection & Quarantine

1. Document Verification: Customs cross-check declarations against submitted files (focus: origin, value, compliance).

2. Physical Inspection:

• Visual Check: Packaging, labeling (Arabic or bilingual), and GCC compliance marks.

• Lab Testing: High-risk goods (e.g., food, medicine) require lab analysis; cold-chain items need temperature logs.

• Security Scanning: Mandatory for ports/airports to detect prohibited items.

3. Risk Classification:

• High-Risk (e.g., raw meat): Full document review + lab testing.

• Low/Medium-Risk (e.g., packaged dry goods): Basic document check only.

Step 4. Tax Calculation & Payment

1. Customs Duty:

• Standard Rate: 5% on CIF value (most goods). Higher rates apply for alcohol (50%), tobacco (100%).

• Free Zone Exemption: Goods imported into free zones (e.g., JAFZA) for production or re-export are duty-free.

2. VAT: 5% calculated as (CIF value + duty) × 5%.

3. Other Fees: Customs broker fees (~$100–$200), inspection fees, and storage charges (daily rate).

Step 5. Cargo Release & Delivery

1. Release Notice: Issued after tax payment and clearance approval.

2. Delivery: Self-collection or via logistics partners; free zone goods require an Exit Declaration for Free Zone Imports.

Critical Compliance Notes

1. Prohibited Imports: Alcohol (except licensed entities), e-cigarettes, religiously restricted items, copyright goods.

2. Labeling & Packaging:

• Food: Production date, ingredient list (descending order), and Arabic warnings.

• Packaging: Waterproof, damage-resistant, and metal strapping recommended.

3. Policy Updates: GCC’s new 12-digit HS code (5,600+ subcategories) effective 2025; ensure HS code accuracy.

Key Tips:

• Use UAE Customs’ pre-clearance advisory to verify HS codes and duties.

• Partner with accredited brokers (e.g., OCS Middle East) to mitigate risks.

• Leverage blockchain platforms for real-time duty tracking.

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Section 3: How To Simplify Customs Clearance Process---Freight Forwarder

Freight forwarders use their expertise, networks and technology to reduce logistics complexity and ensure efficient cross-border logistics. Here are the main ways they simplify the process:

1. Centralized Documentation Management

China freight forwarders handle all customs documentation, including commercial invoices, packing lists, bills of lading, and certificates of origin. They ensure compliance with destination-country regulations, such as Arabic labeling requirements in the UAE. For example, forwarders like New Chain Logistics (China) automate document preparation (e.g., FCC, ISF, AMS) and verify HS codes to avoid delays.

2. Compliance Expertise and Risk Mitigation

With in-depth knowledge of global trade regulations, China freight forwarders:

• Classify goods accurately: Ensure correct HS code application, critical for tariff calculation (e.g., UAE’s 12-digit HS system in 2025) .

• Avoid penalties: Proactively address restricted items (e.g., alcohol, e-cigarettes in the UAE) and manage VAT exemptions .

• Provide compliance training: Companies like SSF Logistics offer guidance on customs policies, reducing audit risks.

3. Digital Solutions for Faster Processing

Leading China freight forwarder integrate digital tools to expedite clearance:

• Blockchain tracking: Platforms like Flexport enable real-time duty payment and document verification.

• Automated EDI systems: Forwarders such as SEKO Logistics use electronic data interchange (EDI) for seamless customs submissions.

• Pre-clearance advisory: Tools like Dubai Trade’s portal allow pre-submission of declarations, reducing port delays.

4. Leveraging Free Zones and AEO Programs

China freight forwarder optimize tax efficiency by:

• Utilizing UAE free zones (e.g., JAFZA): Duty-free imports for re-export or production.

• Securing AEO status: Trusted partners like TranspoTrade offer expedited clearance under mutual recognition programs (e.g., UAE-Egypt AEO).

5. End-to-End Coordination

From pickup to final delivery, freight forwarding companies in china can manage:

• Multi-modal transport: Combining sea, air, and rail for cost-effective routing (e.g., BYD’s EV parts via Dubai free zones).

• Local partnerships: Collaborating with UAE customs brokers for smooth inspections and duty payments.

• Post-clearance support: Resolving disputes, handling bonded warehousing, and providing tax refund services.

 

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Conclusion: 

Staying up to date on customs regulations or working with a freight forwarder can help avoid delays, fines, and lost revenue.If you can't find a suitable China freight forwarder or need a freight forwarding quote, you can contact us!