EXPORT BY TRANSPORTERS OUTSIDE UAE

EXPORT BY TRANSPORTERS OUTSIDE UAE

WHAT IS EXPORT ?

As per the definition given in Article 1 of the Cabinet Resolution No 52 of 2017, export means departing of goods from the state or the provision of services to a person whose place of establishment or fixed establishment is outside the state and it also includes direct and indirect exports.

CUSTOM PROCEDURE FOR EXPORTS

The exportation part under Chapter II of GCC Customs Law deals with export . While exporting,the exporter of the goods or their agents are required to declare the same in detail and in case of exporting any restricted goods, the exporter must obtain the required approval from the competent authority and are also required to submit it to the customs.

 

TYPE OF DECLARATIONS TO BE MADE UNDER THE EXPORT REGIME

1.For export of local to ROW ( After import for re export)

For the exportation of local goods to a country of ROW other than a GCC state,

The declaration for export of local goods to ROW is required to be cleared. The documents which are required under this are : Export invoice, packing list and export permit from a controlling authority which is applicable only to restricted exports.

 

  2.For export from local to ROW Rest of World )

This is for the exporting goods from UAE local market to a free zone in Dubai. The exporter or his broker can submit this declaration. The receiving free zone client is required to acknowledge the declaration which is through the acknowledgement service which is available on Dubai Trade. The documents which are required are : export invoice and packing list.

 

3. For export from Local to Dubai Free Zone

The receiving free zone client is required to acknowledge the declaration through the acknowledgement service which is available on Dubai Trade. The documents which are required are : export invoice and packing list

 

4. For export from Local to GCC

Any foreign goods that have been previously imported to local from ROW can be exported to another GCC state on statistical export declaration. The declarant can avoid repeated payment of duty to the customs office of destination in the GCC provided that the statistical export declaration carries MAKASA stamp. The documents which are required are : export invoice, packing list and copy of import declaration.

5. For export from customs warehouse to ROW(Rest of World )

The goods which are admitted into a customs warehouse can be exported to any of the countries in ROW(Rest of World ) The documents which are required are : export invoice and the packing list.  

 

6. For export from custom warehouse to free zone

The foreign goods are exported from a customs warehouse to a free zone in Dubai which is subjected to the applicable export restrictions. The exporter is required to complete the customs procedures which are required to admit the goods into the free zone. The documents which are required are : export invoice and packing list.

 

7. For re exporting to ROW

The foreign goods that have been imported previously on the declaration type of import for re export can be re-exported to ROW other than the GCC states by clearing this declaration. The customs inspection and exit certification shall be required to claim the refund of the security deposit or the guarantee which is paid against the import for re export declaration. The guarantee or the deposit can be claimed back only if the imported goods have been exported within 6 months from the date of import for re export declaration. The documents which are required are : export invoice, packing list

 

8. Re export to free zone ( after import for re export)

The foreign goods that have been previously imported on declaration type of import for re export can be re exported to free zone by clearing this declaration. Customs inspection and exit certification shall be required to claim the refund of security deposit or guarantee which is paid against the import for re export declaration. The guarantee or deposit can thus be claimed back only if the imported goods have been re exported within 6 months from the date of import for re export declaration. The documents which are required are : export invoice, packing list.

 

9. For return to ROW after temporary admission

The goods which are brought on temporary admission are to be returned to ROW within the stipulated time period and in case any extension is required on permitted time period. The customs approval is however required to be obtained prior to the expiry of the time limit for extension on the permitted time period. The documents which are required are : export invoice and packing list .

 

10. Temporary export from Local to Free Zone

This declaration is to be cleared for the goods which are to be exported on temporary basis from local to free zone for the purposes of repairing or servicing, reconditioning , processing etc. The exporter is required to complete the customs inspections prior to exporting and while re importing the goods to the locals as well. The documents which are required are : export invoice and packing list

 

11. Temporary export from local to ROW

The declaration is to be cleared for the goods that are to be exported on temporary basis for the purpose of conducting exhibition, completing any projects, repairing or servicing and processing etc. The exporter is required to complete the customs inspection prior to exporting and while re importing the goods to local as well. The documents which are required are : export invoice and packing list.

 

EXPORT CLEARANCE

For the purpose of export clearance, verification is required to be done with the competent customs in order to ensure that one has all the documents that are necessary for export.

The necessary documents which are required for the same are :  

  • A declaration of exports approved by a company having a license form an agency delivering licenses in the country (for goods transported by air).

  • An export license for sensitive products

  • An invoice issued by a company of the country with a license addressed to a foreign company and which states total quantities, as well as a detailed description of quantity and amount for each article.

  • A detailed inventory with the quantities, names, standard codes and the method of packaging for each article.

 

APPLICABILITY OF VAT ON EXPORT BY TRANSPORTERS

The exports are considered as taxable supplies but tax at 0% is applicable on exports. The treatment of exports is however based on certain scenarios which are as follows:

  • Export of goods outside a GCC VAT implementing state

  • Export of goods to unregistered recipients in a GCC VAT implementing state

  • Export of goods to registered recipients in a GCC VAT implementing state

  • Export of goods which require installation or assembly outside the state

 

PROVISIONS AS PER CABINET RESOLUTION NO 52 of 2017

Article 30 which deals with zero rating of export of goods states that for:

The direct export to be zero rated, the following conditions would be met :

  1. If the goods are physically exported to a place which is outside the implementing states or are put into a customs suspension regime as per the GCC Customs Law within 90 days of the date of supply.

  2. If the official and commercial evidence of export or customs suspension is retained by the exporter.

Official evidence thus means the export documents that are issued by the local Emirate Customs Department in respect of the goods leaving the state.

Commercial evidence however includes,

  1. Airway bill.

  2. Bill of lading

  3. Consignment note

  4. Certificate of shipment.

For the indirect exports to be zero rated, the following conditions should be met :

  1. If the goods are physically exported to a place which is outside the implementing state or are put into a customs suspension regime which is in accordance with the GCC Common Customs Law within 90 days of the date of supply under an agreement which is agreed by the supplier and the overseas customer at or before the date of supply.

  2. If the overseas customer obtains official and commercial evidence of export or customs suspension in accordance with GCC Common Customs Law and provides a copy to the supplier for this.

  3. If the goods are neither used nor altered in the time which is between supply and export or customs suspension except to the extent which is necessary to prepare the goods for export or customs suspension.

  4. The goods do not leave the state in the possession of a passenger or crew member of an aircraft or ship.

 

RECOVERY OF INPUT TAX ON EXPORTS

Input tax can be recovered on the supplies which are used to make exports since exports are considered as taxable supplies. Input tax can also be recovered to reduce the tax liability if the exporter makes domestic supplies. In case the exporter is dealing solely in exports, then the exporter can get refund of the tax which is paid on the inputs.

 

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