Running a business in a free zone | The Official Platform of the UAE Government

Conducting foreign trade

Customs laws for free zones are different from those for companies on the mainland. According to the official portal of Abu Dhabi Government, certain types of merchandise are prohibited within the free zones and duty-free areas based on their nature or origin.

Prohibited goods are the goods which the country prohibits their import or export by virtue of provisions of the Unified Customs Law of the GCC countries or any other relevant law. Importing, storing or transporting any items classified as prohibited are punishable offences by law.

Merchandise that is prohibited within the free zones and duty-free include:

Flammable merchandise, excluding fuels necessary for operations as permitted by the supervisory authorities of the area (Free Zone Authority) under the conditions prescribed by the competent authority
Radioactive materials
Weapons, ammunitions and explosives of whatever kind except by permit from the competent authorities
Merchandise that violate the regulations concerning the protection of the commercial, industrial, and intellectual property rights and copyright protection
All types of narcotics and derivatives thereof
Merchandise originated in an economically boycotted country

According to the website of Dubai Customs, free zone licencees are allowed to import goods or equipment into the free zone from a foreign country without payment of customs duties. Such goods may be stored for an unlimited period depending upon the type of goods and the validity of the free zone licence.

The general provisions regarding customs are:

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

According to the website of DMCC , free zone licencees are allowed to import goods or equipment into the free zone from a foreign country without payment of customs duties.

Customs duty is only paid when goods are moved out of the free zone; that is, imported into the UAE. Numerous warehousing facilities are available in the port for companies that wish to store and re-export their goods. A deposit is payable to the full value of the customs duty, which is refunded on re-export.

List of customs authorities in the UAE:

Laws