Clearance of goods consumed within Dubai Based Free Zone
- Type: News
With reference to Customs Notice 17/2020 in the attachment section below, Dubai Customs is pleased to announce introduction of new declaration type “Goods Consumption within FZ” in Mirsal2 system effective 25th October 2020.
Following important points should be noted and taken care for successful submission of this new declaration “Goods Consumption within FZ”.
- Dubai FZ Company or Broker (on behalf of FZ Company) can submit this new declaration.
- Regime Type is “Import” and Declaration Type is “Goods Consumption within FZ”.
- Declaration Registration charge will be AED 70/- per dutiable declaration and AED 80/- per duty exempt declaration with the applicable purposes below.
- Declaration Purpose will be mandatory to provide in declaration as one of the below mentioned FZ Consumption Purposes.
|
Declaration Purposes |
Duty Applicability |
|
Company Own facility construction |
Duty Exempted |
|
Use for establishing company |
Duty Exempted |
|
Operational use |
Duty Exempted |
|
Maintenance of projects and facilities |
Duty Exempted |
|
Use in Production or Service |
Duty Exempted |
|
To perform company activity |
Duty Exempted |
|
Retail Sale |
Duty Applicable |
|
Other |
Duty Applicable |
- If Declaration Purpose is ‘Retail Sale’, or ‘Others’, then Duty will be applicable. In case of IT related commodities, IT service charge will be collected wherever applicable.
- If Declaration Purpose is other than ‘Retail Sale’, or ‘Others’, then Duty or IT Service Charge will be auto-exempted and not applicable.
- Declaration will be auto-approved unless the Duty or IT Service Charge is exempted due to consumption purpose or any other risk or exception is found on the declaration.
- Declaration data will be sent to FTA for VAT or Excise Tax purpose. VAT or Excise Tax will be applicable in the same current manner of IM2 (Import to Local from FZ) declaration.
- Submission of physical hard copy documents will be excluded and not applicable for this declaration. However, declarant must make sure to upload documents online before submission of declaration. Document Upload is mandatory for “Consumption Request Letter” and “Consumption Invoice”.
- Free Zone consumption purposes are mentioned in detail with full clarity in the Customs Notice 17/2020. Following is the mapping table to illustrate selection of consumption purpose within declaration.
|
Consumption Purpose in Customs Notice 17/2020 |
Consumption Purpose in Declaration |
|
1) Building equipment and materials used in construction projects |
Company Own facility construction |
|
2) Packaging Materials |
Use in Production or Service |
|
3) Machinery, equipment, and spare parts necessary for the operation and maintenance of the facility |
Operational use OR Maintenance of projects and facilities |
|
4) Petrol, oil, lubricants, and materials used in operations and production |
Operational use OR Use in Production or Service |
|
5) Office equipment and supplies, and laboratory devices and materials used for scientific research and training in the facility |
Use for establishing company OR To perform company activity |
|
6) Worn and damaged materials and operation and manufacturing waste that are not suitable for sale, use or recycling |
Use in Production or Service |
|
7) Any other goods or materials specified by the competent department within the provision and control of this article |
Any of the above based on consumption nature |
|
8) Items and goods sold to the local market by companies and shops licensed to do so; such as the sales of electronics, tires, glasses, perfumes, food stuffs etc. (whether in retail or wholesale within the free zone to natural and legal persons) |
Retail Sale |
|
9) Damaged or worn materials and operation and manufacturing waste suitable for sale, use or recycling, such as oil residues from vessels or factories, or waste involved in recycling operations |
Other |
