Free Zones

 

Free Zones are part of the country’s territories but considered to be outside the customs territory and subject to customs control other than normal customs procedures. This is applicable to Jebel Ali Free Zone, Airport Free Zone, Airport Free Zone, DUCAMZ and unfenced Free Zones including TECOM

General Provisions
1. The importer must have obtained a valid importer code from the Customs.
2. Goods must be in conformity with the activity of the licensed company.
3. Goods must arrive in the free zone within 72 hours from the date of the customs declaration.
4. The licensee shall not open, alter or dispense of the goods prior to their arrival in the free zone and customs endorsement.
5. Goods shall be inspected whilst entering the free zone or transferred to the stores.
6. The declarant shall pay a deposit of AED 500 against incomplete documentations if he fails to submit the required documents.


Import into Free Zone

Free zone licensees are allowed to import goods or equipments into the free zone from a foreign country without payment of customs duties. Such goods may be stored for an unlimited period of time depending upon the type of goods and the validity of the Free Zone Licence.

Documents Required:
1. Delivery order from the shipping agent or Airline agent addressed to a licensed company by the licensing management in the free zone.
2. Delivery Note by the FZ company confirming the acceptance of goods, if the shipment moved by land or from other FZ areas.
3. Second copy of the bill of lading if it is by sea, Original Airway bill for Air shipment and road manifest for land shipment.
4. Import permit from the competent agencies in the free zone for restricted goods.
5. Sale invoice from the free zone licensee addressed to a licensed importer in the country detailing total quantity, goods description, currency and detailed total value of each individual item. Original & detailed item wise invoice with HS Codes classification from the shipper address to the Free Zone Licensee.
6. Certificate of origin approved by the Chamber of Commerce in the country of origin indicating the origin of goods.
7. Detailed packing list as per weight, method of packing and the HS code for each individual article contained in the shipment.


Import Goods Declaration Form

The above documents can be presented to any of Customs Centers under the control Dubai Customs at Jebel Ali, Port Rashid, Aweer Terminal, Airport Free Zone or Cargo Village and based on submitting above documents; Free Zone Transit Inn (Free Zone Bills of Entry) shall be issued for the clearance goods into Free Zones.

In the event of failure to submit the original Bill of Lading/Airway Bill, Invoice or the Certificate of Origin at the time of passing the FZ Transit In (FZ Bill of Entry), a deposit of Dhs.500/= to be paid and a proof of the value of goods is to be presented in the absence of invoices. The claim for refund should be made within 59 days from the bill date.

When the goods are cleared through Customs, the consignee can collect the goods on payment of storage, handling and any other port charges at Port Documentation Offices - DNATA at the Airport. All consignments cleared on Free Zone Transit In (Free Zone Bills of Entry) should be brought into their Free Zone Areas.

All goods destined for the Free Zone must be inspected upon their entry into the Free Zone except those from the local market since they must have been cleared by Customs elsewhere in UAE. The seals of incoming consignments should be intact and to be broken only in the presence of a Customs Inspector. Any infringement of this rule may attract penal action.


Import from Free Zone into UAE/GCC

This type of bills is processed for allowing Free Zone Licensee to sell their commodities to the Local Companies in UAE or in GCC Countries operating under valid Commercial/Industrial Licenses from the concerned regulatory authorities within UAE or in GCC. Based on submission of following documents received from the Free Zone Companies to Customs by the local or GCC Importer or their appointed Clearing Agents, FZ Transit Out (Ex-FZ Import Bill) shall be issued upon payment of applicable Customs Duty as per the customs tariff & the processing charge of AED 60/-. Free Zone Licensee has to deliver the goods only upon receiving the copies of the Ex-FZ Import Bill from the importer.

Documents Required:
1. Delivery Advice from the Free Zone Company – should be stamped by the buyer (Importer – local company) and the seller (Exporter – Free Zone Company)
2. Original & Detailed invoice by item wise with HS Code Classification and Free Zone BOE Reference Number by item wise from Free Zone Company.
3. Original packing list from Free Zone Company
4. Import Goods Declaration Form
5. Trade license copy for the seller and buyer
6. An NOC from the concerned competent Authority, Ministry or Departments are required incase the goods are restricted or prohibited
7. Online Duty Exemption Approval from the relevant authorities, Ministries or departments Request letter & application is required if the UAE importer is exempted from paying customs duty
General Provisions
1. The declarant must have obtained a commercial license from the competent authorities of the country or a GCC State and goods should be in conformity with the license activity.
2. The declarant must have obtained a valid importer code from the Customs.
3. Goods must be taken out from the free zone within 30 days, which can be extended for a similar period after the customs declaration is issued.
4. Goods shall be subject to inspection prior to final release.


Import for Re-export from Free Zone Free Zone (FZ Transit Out)

This type of bills is processed for allowing Free Zone Licensees to sell their commodities to the Local Companies in UAE operating under valid Commercial Licenses from the concerned regulatory authorities within UAE on Import for Re-Export basis. This facility will grant the UAE Importer a grace period to export the goods purchased from the Free Zone Licensees within 180 days from the bill date. A Customs Deposit equivalent to the duty tariff of the invoice value is collected from the UAE Registered Company against these transactions. Refund the deposit fully or partially if the proof of export is submitted within the time frame allocated for this type of bills.

Documents Required:
1. Delivery Advice – should be stamped by the buyer (Importer – local company) and the seller (Exporter – Free Zone Company).
2. Original & Detailed invoice by item wise with HS Code Classification and Free Zone BOE Reference Number by item wise from Free Zone Company.
3. An NOC from the concerned competent Authority, Ministry or Departments are required incase the goods are restricted or prohibited
4. Original Packing List form the Free Zone Company.
5. Import Goods Declaration Form.
6. Trade license copy from the seller and buyer.


Deposit Refund & Guarantee Release

Documents Required:
a. An Exit Certificate certified by the Customs at the exit point.
b. A cargo manifest if the cargo is left by sea or land.
c. Copy of original export A/W Bill, B/L if the cargo has left the country through Airport or other Sea Ports.
Remark: A partial export of the cargo is accepted provided; the importer should submit proof of export, whereby the equivalent deposit amount of the value of the exported cargo is refunded.


Ex-FZ Export Bill (FZ Transit Out)

This type of bill allows the FZ Licensee to export goods out of GCC by sea, land and air. The processing charge for this type of bill is normally AED 50/- being the registration charge plus AED 10/- being the Knowledge Dirham Fee provided the cargo is being exported other than from Dubai Airport. The registration charge for processing an Ex-FZ Export Bill for the cargo dispatching through Dubai Airport will be only AED 20/-

Documents Required:
1. Delivery Advice – should be stamped by the seller (Exporter – Free Zone Company).
2. Original & Detailed invoice by item wise with HS Code Classification and Free Zone BOE Reference Number by item wise from Free Zone Company.
3. Original packing list from Free Zone Company
4.

Exit/entry certificate

The Customs bills are cleared against payment of deposit equivalent to the 5% of CIF value of the consignment and the refund claim should be submitted within 59 days from the bill date, but the cargo must be exported within 30 days from the bill date. If the client has failed to submit the claim within the prescribed period, the deposit will be forfeited along with an additional 10% of the consignment CIF value would be collected as penalty.

Upon presenting the documents listed above at the Customs Centers, an Ex Free Zone Export Bills (FZ Transit Out) shall be issued. If the consignment is in FCL status, the container shall be loaded in the presence of the Customs Inspectors and required sealing by them.

For all exports, the Customs department at the destination will require certificate of origin issued by Dubai Chamber of Commerce and Industry.


Free Zone Temporary Admission

This type of Customs bills are prepared in the event of facilitating the entry of goods through customs zones into the country on temporary basis for the purposes of exhibition or repairs and maintenance of equipment and machineries. A deposit equivalent to customs tariff on total value of goods shall be collected against such type of transactions:

Documents Required:
1. Delivery advice.
2. Request letter from the free zone company stating the justification for releasing the shipment.
3. Original & detailed item wise invoice from Free Zone Company.
4. Packing list.
5. Letter from exhibitor confirming the participation in exhibition.
6. Job card or the contract copy between the Free Zone Company and the repairer against the repair work with the license copies of repairer company.
7. Free Zone license copy.


Deposit Refund & Guarantee Release:

• A proof of entry back into the Free Zone certified by the Customs Inspectors on site.
• Refund will be granted if the claim submitted within 120 Days.
• Failure to submit the proof of return within the time frame will result in forfeiting the deposit
• In addition to the clause No. 3, a 10% penalty on the Consignment value will be collected if the goods cleared on these bills are not returned back to their facility in Free Zone.
• 50% of the Deposit will be forfeited if the claims submitted within 120 to 150 days.


Free Zone Internal Transfer

This type of Customs bills prepares in the event of sale of goods internally by a free zone licensee to another free zone licensee having same type of activity upon approval and consent of the seller and buyer.

Documents Required:
1. Delivery Advice – should be stamped by the buyer and the seller
2. Original & detailed invoice by item wise with HS Code Classifications and Free Zone BOE Reference Number by item wise from Free Zone Company
3. Original packing list from the seller
4. Trade license copy for the seller and buyer
5. Transfer of ownership letter prepared by the Seller as per the Customs Format and signed & stamped by the authorized signatory of both seller and buyer.


Export of Goods from Local Market through Free Zone (FZ Transit In)

This type of facility shall allow a Free Zone Licensees to buy goods from UAE Local Market for Export purposes. In order to validate the entry of goods into the Free Zone, the local exporter have to file a local export declaration and subsequently, the Free Zone Licensee have to file a Free Zone Bills of Entry (FZ Transit Bill).

Documents Required:
1. See the procedures and documents required for export.
2. Delivery order from a licensed company by the licensing management in the free zone.
3. Copy of the delivery advice to the free zone.
4. Import permit from the competent agencies for restricted goods.
5. Sale invoice from the local vendor addressed to the free zone licensee detailing total quantity, goods description, currency and detailed total value of each individual item.
6. Detailed packing list as per weight, method of packing and the HS code for each individual article contained in the shipment.


General Information

• No Customs duty is involved with the Import of cargo into the Free Zone, provided Free Zone bills of Entry have been processed in the name of JAFZ License holder and the cargo has been physically brought into Free Zone and the entry of goods has been authenticated by the Customs Inspectorate.
• The Free Zone Licensee can keep their cargo in the Zone as long their license is valid without any Customs Duty.
• Transfer of ownership of cargo between JAFZ clients are allowed subject to the JAFZ license activity clause provided proper declaration to be made to customs and process necessary customs approved documents
• Goods imported to Free zone can be transferred to another Free Zone or Customs Bonded facility within Dubai, subject to Customs Documentation and deposit requirements.
• Retail Sales are not permitted within the Free Zone.
• All transaction to be declared to Customs and obtain necessary customs approved bills at the time of arrival & departure of goods.
• No goods can be imported into the Zone unless the Free Zone Consignee has officially registered its name with Customs against a valid License issued by the Free Zone Authority and obtain JAFZ Importer/Exporter code.
• The Law for the import of prohibited and restricted goods, concerned to the local companies will be applicable to Free Zone Companies too.


Note:

All types of bills are subject to customs inspection before release & permitted to import/export subject to its activity clause appearing on the JAFZ licenses.

All free zone companies have to maintain a fully computerized, thoroughly auditable and accountable inventory control system based on free zone or internal transfer Customs approved bills of entries against the goods imported from overseas or purchased from Free Zone clients and the subsequent deliveries to their clients on ex-FZ bills (FZ Transit Out) by referring those free zone/transfer bills of entries. These inventories should be produced to customs on request for inventory reconciliation with customs records.

JAFZ CLIENTS should not import/export fake products and goods stated in Section VII, Chapter IV, Article 80 of "Common Customs Law of the GCC States" into or out of JAFZ and should not sell branded products into UAE or GCC for which, the brand name is already registered with "Ministry of Trade, Economy & Commerce" having an authorized local agent in UAE or GCC countries.

Customs reserves the right to CONDUCT INSPECTION ON FREE ZONE CLIENTS PREMISES & HOLD THEIR CODES at any time without prior notice in the event of failure to comply with the above procedures or misuse of the system.