Some frequently asked questions
What does this webinar address?
This webinar takes an expert look at UAE free zone customs auditing. It focuses on self-auditing processes and introduces practical examples to clarify certain formalities. It also looks at some common examples of non-compliance and how to avoid them.
What are free zones?
Free zones are economic areas in the UAE that are ruled by their own specific regulatory practices. They are a central part of what makes the UAE an attractive, global business destination with an investment-friendly environment. In Dubai, there are three fenced free zones and three unfenced zones. The fenced zones are JAFZA in Jebel Ali, DAFZA at Dubai International Airport, and DAZ (DUCAMZ). The unfenced zones are TECOM, Silicon Oasis, Dubai Design District and Media City.
Why are companies audited in the free zone?
Dubai Trade audits companies operating in the free zone to ensure they follow the proper rules and regulations. They also consult with businesses to apply the proper procedures for importing and exporting goods in the free zones.
What is the self-auditing process?
The self-audit service enables you to audit transactions and alert free zone authorities to unintentional customs mistakes or violations. In the past, traders and brokers did not have a way to come forward and disclose errors and violations. This differs from an audit by Dubai Trade, which looks at the period your company has been operating in a free zone.
What are the benefits of self-auditing?
It enables you to voluntarily disclose errors and omissions in customs declarations without facing immediate penalties. For example, you will likely avoid heavy fines and penalties if you volunteer errors directly to Dubai Trade. It also improves transparency and builds trust between businesses and Dubai customs.
What are some examples of non-compliance?
Businesses may use the wrong declaration tariff code, which is called an HS code. This can result in high penalties unless it’s checked. Erroneous declarations can also occur across several different goods, ranging from tobacco to prohibited goods, vehicles, and goods that must be disposed of correctly (i.e., car batteries). Declaring the wrong country of origin, under-valuing goods and failing to report items that require added goods value are also examples of violations.
What should a customs disclosure contain to be complete?
The disclosure must contain all relevant information about the errors and omissions. The disclosure must be made before the audit process begins. For example, the client should apply or submit the request for self-auditing before Dubai Trade starts auditing their company. Customs duties must be paid within 15 days of receipt by Dubai Trade.
How is a submission made?
After spotting where an error or omission may have occurred, you must submit the self-audit request to Dubai Trade online, either via their website or mobile app. Your submission will then be verified and checked to see whether all relevant information is available. If Dubai Trade finds that there is a valid mistake or there is an HS code error, they will take care of making the amendment and release the audit findings. There is no limit to the number of self-audit submissions you can make.
What information is needed to apply for a self-audit service?
You must submit your personal data and your company’s information. Details about your findings are needed, too, for example, whether it’s an HS code error or a wrong country of origin. The customs record of all the transactions, whether inbound to the free zone or outbound, which is export or transfer or even crucial to local. Any supporting documents, along with your contact data, are needed. Finally, the pledge where the client is willing to pay duties within 15 days of the submission of the request.
Is there a fixed fee for penalties?
No, this is often decided on a case-by-case basis. Dubai Trade must check the kind of violation. If you come forward and demonstrate that the mistake happened unintentionally, there is a likelihood that penalties can be waived.
