If you're planning to import a vehicle into the United Arab Emirates (UAE), it's important to understand the customs clearance process. This article will guide you through the steps involved in customs clearing vehicles in the UAE, key documents required for clearance, information about duties and taxes, common challenges, and tips for a smooth customs clearance process.
Before any vehicle is delivered from the port to the customer, separate clearances are accorded from the following individual agencies.
- Ship liner Agent in Dubai
- Dubai Customs
- Declaration Department
- Valuation Department
- Intelligence Department
- Customs Inspection Department
- Ministry of Foreign Affairs
- Federal Tax Authority
- Dubai Ports (sea / air).
- Police / Port Security
Understanding the UAE Customs Clearance Process: Verification with INTERPOL database
When a vehicle arrives at a UAE port, it goes through a rigorous customs clearance process. This process is designed to ensure that the vehicle meets the necessary requirements as per rules. The customs authorities carefully examine the documentation and physically inspect the vehicle to verify its compliance. One of the primary reasons for customs clearance is to prevent the entry of stolen vehicles into the country. By thoroughly checking the documentation and conducting physical inspections, the authorities can identify any discrepancies or signs of theft. The VIN number, make model and other details of the vehicle are verified with INTERPOL database by Dubai Customs officers before initial approvals are accorded.
Collection of Taxes by UAE Government:
Import taxes in the UAE includes customs duties (5% CIF), value-added tax (5% CIF), and other applicable fees. It's essential to stay informed about the latest customs regulations and tax rates to ensure smooth import operations. If you have specific questions or need assistance with customs clearance, it's advisable to call us at +971557910800 or the relevant customs authorities in the UAE for accurate and up-to-date information.
The customs clearance process of Vehicles in the UAE typically includes the following steps:
- Interlink customs broker submitting the required documents to the Dubai customs authorities
- Verification of documents and realistic valuation of Vehicles as per customs database by Authorities.
- Payment of customs duties and taxes (currently 5% Customs & 5% VAT).
- Initial approval of import vehicle declaration.
- Customs inspectors conduct a physical examination of vehicles to validate the accuracy of the initial submissions.
- Final approval of release.
- Delivery of vehicles to customers.
- Release of digital Vehicle Clearance Certificate.
Common Problems during import Clearance:
- importing commercial quantities
If you plan to import vehicles for sale in Dubai, it is advisable to acquire your trade license in the UAE. We've observed cases where customers brought numerous cars under their personal names. Past instances indicate that customs authorities may withhold the release of cars, as importing commercial quantities of any item as an individual is not permitted according to regulations.
- Dealing with Delays in Clearance
Clearance delays can occur due to factors such as incomplete or inaccurate data & documentation, valuation objections by authorities, large quantity of shipments, INTERPOL objections, shipping liner data error, holidays etc. To avoid delays, it is crucial to ensure that all necessary data and documents are complete and accurate.
- Consignee in the Bill of Lading (BL)
We've observed instances where customers designate their brokers as the final consignee in the Bill of Lading (BL). In such scenarios, the Vehicle Clearance Certificate (VCC) is issued with the broker identified in the BL as the true owner of the vehicle. Numerous reports have emerged that many unscrupulous brokers disassociate themselves from clients and assert full ownership of those imported cars. To avoid such situations, we strongly advise our clients to consign the car to their own company or person and issue an authorization letter to the customs broker for vehicle clearances.
- Removal and replacement of spare parts by spurious clearance brokers
The unauthorized removal and replacement of spare parts by unscrupulous brokers pose a significant concern. It is crucial to be vigilant and cautious when dealing with brokers to prevent any unauthorized alterations to your vehicles. Clients should thoroughly vet and choose reputable brokers, and consider implementing safeguards such as consigning the vehicle to their company and providing clear authorization letters for customs clearance. Staying informed and maintaining transparency in transactions can help mitigate the risks associated with the removal and replacement of original spare parts by dishonest brokers.
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How is Interlink Freight Agency Customs Brokers different from other brokers:
In addition to upholding transparency and honesty with our customers, we have implemented systems to guarantee that our customers receive their imports exactly as they were originally shipped. Our staff is both loyal and subject to monitoring, and our managers personally oversee imports, conducting double verification. We have a zero-tolerance policy for any form of dishonesty among our staff and will not permit such behavior, what so ever.
Managing Director
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RTA Registration in the UAE:
To register the imported vehicle with the RTA (Road Transport Authority) in the UAE, the importer needs to follow these steps:
- Take the vehicle to any RTA test center for a physical inspection.
- Upon successful tests, purchase insurance.
- Final registration or transfer.
Documents Required by RTA at the time of registration:
- Vehicle clearance certificate (will be provided by us).
- Emirates ID/Passport copy (of manager for companies).
- Trade License (for companies only).
- Company letterhead/rubber stamp (for transfer - companies only).
- Any other credentials required by the RTA.
Questions & Answers (Q&A):
- Is it possible for a free zone company in the UAE to import vehicles?
- Yes. as long as you have a trade license with a valid Dubai customs account, you are eligible to import vehicles. (Contact us and we can create a Dubai customs account if you do not have one.)
- Do freezone companies have to pay taxes for importing vehicles?
- Unless your license is issued from a geographically fenced freezone like JAFZA, DUCAMZ etc, you will have to pay 5% customs duty and 5% VAT Tax (Total 10%) as on the date of publication of this article.
- What are the documents required for clearing used vehicle in the UAE?
- Purchase or Auction Invoice
- Bill of lading (telex released is valid)
- Photographs of the car taken at origin can be helpful (not mandatory) to seek proper assessment by customs valuation department.
- UAE Trade license & Import code (if importing under company)
- Copies of Emirates ID, passport and visa (if importing in personal name)
- What information should be included in the invoice / Bill of lading ?
- Make
- Model
- Year
- Color
- Vehicle identification number (VIN/ chasis number)
- GCC standard or not.
- Purchase Value (on the purchase invoice)
- I bought the car at a lower price overseas. Is this price considered the final amount for tax calculation by Dubai Customs?
- The purchase price you declare may not necessarily be the final amount used to calculate taxes. When going through customs clearance process, the valuation department and inspection departments will assess the price stated on your purchase invoice. However, if there is a considerable variance from the prices listed in the customs database, Dubai Customs may assign a new higher value for tax calculation purposes. This value provided by Dubai customs will be the final price for calculation of taxes. This value can only be altered through a court order.
- I am moving my residence from abroad along with my car. Do I have to pay taxes in the UAE?
- Yes - You will have to pay 5% customs duty and 5% VAT Tax (Total 10%) as on the date of publication of this article.
- I brought my car 8 years ago. What value would I mention in the invoice for submitting to customs?
- General valuation guidance could be obtained from online websites like dubizzle.com. However, customs may or may not accept this value and could suggest a new higher value for tax calculation purposes.
- Can we authorize a customs broker to register their cars with RTA?
- Customs brokers are generally responsible for clearing vehicles from the port and delivering them to your specified location. However, you must personally handle the road registration of cars at RTA centers. Your presence, along with your original credentials and Vehicle Clearances Certificate, is necessary for registering imported cars in your name. For detailed information about road registration, please contact your nearest RTA center or the RTA call center.
- Can I import damaged vehicles? How is valuation done in this case?
- Yes you can import damaged vehicles. Valuation could be perceived lower by Dubai Customs for visibly damaged cars. You will have to provide with multiple photographs of the damaged cars taken at origin during the clearance process. These cars will also undergo physical inspections by Dubai customs during the clearance process. Damages that are difficult to prove like electrical damages, internal engine damages, usual wear and tear, scratches may not be eligible for these lower valuation.
- Is there a way to find out the value of a vehicle from Dubai customs database?
- No. Dubai customs database and depreciation formulae are confidential only available to a very few authorized customs officers. These data are not available to other customs officers or to the public or to customs agents or to forwarders.
- Can I import any year model? Can I register these cars with RTA after clearances are done?
- Typically, all year model "except the current year model" can generally be imported into the UAE. Road Registrations are subjected to passing the RTA physical vehicle tests after clearances are completed. Many importers either cannot customs clear their vehicles or cannot register their vehicles in the UAE, if the imports are current year models. (Current year models can generally be imported only by authorized registered sales agencies in the UAE.)
- Can old models over 20 years be imported into the UAE?
- As of publication of this post, YES you can import older models which are 20 or 40 years old. But Road Registrations are subjected to passing the RTA physical vehicle tests after clearances are completed.
- What are the cost involved in the clearance?
- Each of the agencies involved like the ship-liner, MOFA, Port, customs, FTA all imposes fees for their respective services, which fluctuate based on factors like type of vehicle, whether it arrives as RORO or in container, liner company, the vehicle's weight and dimensions, berthing pier and yard type, exchange B/L, inspections & valuation by customs, etc. Consequently, costs may vary due to these factors.
- Are all customs brokers who are listed online or on google genuine?
- Several of our current customers has come to us and stayed with our services after being deceived by other customs brokers and forwarders. They faced significant losses due to delays and instances where their original car parts were replaced with used or counterfeit ones. We have implemented rigorous systems to ensure that our customers receive their imports exactly as they were shipped originally. We have a zero-tolerance policy towards any form of malpractice.
For more detailed information, please feel free to email us. We generally accept a limited number of customers, focusing on those where we can provide value. Our email id is [email protected]. Please provide full details of your shipment attaching available documents. We will answer you back.
Email: [email protected]
Call: +971-55-7910800 (Business hours)
