If you enjoy shopping abroad, you should be aware of the new customs laws that will be in place starting on January 1, 2023, before having your purchases delivered to you from outside the United Arab Emirates. According to a notice from Dubai Customs – Notice No. 5 of 2022, as on January 1st 2023, “the high value threshold for shipments imported into the UAE will be reduced from AED 1000 to AED 300”
The fees will include 5% Customs Duty for any shipment valued AED 300 or higher, in addition to Admin fees of AED 65. Additionally, all non-documents shipments imported into the UAE will remain applicable at 5% VAT (no changes in VAT process). Certain goods like tobacco, tobacco products, e-cigarettes, nicotine liquid, alcohol beverages and foods containing alcohol are excluded from the exemption of threshold of AED 300, as there is already a ‘sin tax’ applicable on it. The duties tariff are different and require other approvals for clearance.
However, goods imported with a value of less than Dh300 will be exempted from customs duties. But tobacco, tobacco products, e-cigarettes, nicotine liquid, alcoholic beverages and foods containing alcohol are excluded from the exemption of customs duties.
In 2017, the UAE introduced an excise tax on products which are harmful to human health such as carbonated drinks, energy drinks, tobacco and tobacco products. Later on, the excise tax scope was expanded to e-smoking devices and tools, liquids used in such devices and sweetened drinks.