Customs Code Based on Invoice - DOC by eae12167

VIEWS: 576 PAGES: 9

More Info
									                CUSTOMS PROCEDURE AT TECOM CUSTOMS CENTRE



1.     Introduction

2.     General Information

2.1    Companies are permitted to import / export commodities in and out of the Free Zone subject
       to the Activity clause specified in their Trade License only.

2.2    A Company Code is a pre-requisite for Free Zone Licensees in order to process the necessary
       custom bills. This is granted to companies who hold valid License issued by TECOM holding
       physical locations within the Dubai Technology Media Free Zone.

2.3    No Customs duty is involved with the Import of cargo into the Free Zone provided Free Zone
       Bills of Entry have been processed in the name of the Free Zone License holder and the cargo
       has physically been brought into Free Zone and the entry of goods has been authenticated by
       the Customs Inspectorate.

2.4    The Law for the import of prohibited and restricted goods for local companies will also be
       applicable to Free Zone Companies.

2.5    TECOM client should not import / export fake products and goods stated in “Common
       Customs Law of the GCC States” in or out of Free Zone.

2.6    Free Zone Companies should not sell branded products whose brand name is already
       registered with “Ministry of Trade Economy & Commerce” into UAE or GCC and being
       handled by an authorized local agent in UAE or GCC countries.

2.7    The Free Zone Licensee can keep their cargo in the Zone as long their license is valid without
       any Customs Duty.

2.8    Transfer of ownership of cargo Imported into the Free Zone is allowed between the Free Zone
       companies.

2.9    Goods imported to Free Zone can be transferred to another Free Zone or Customs Bonded
       facility within Dubai, subject to Customs Documentation and deposit requirements.

2.10   Retail Sales are not permitted within the Free Zone.

2.11   No goods can be imported into the Zone unless the consignee has officially registered their
       name with Customs against a valid License issued by the Free Zone Authority.

2.12   All Free Zone Establishments have to maintain a fully computerized, thoroughly auditable and
       accountable inventory control system based on the commodities they receive from overseas &
       cleared on Free Zone Bills of Entries & the subsequent deliveries to their clients on ex-Free
       Zone bills by referring those Free Zone Bills of Entry in an item-wise invoice details against
       the payment of potential customs duty or deposit.




                                                                                                   1
2.13   If the commodities cleared on Free Zone Bills of entries are not found at Free Zone clients
       premises or they failed to produce the documentary evidence of ex-Free Zone import / export /
       transfer customs bills, a penalty as per section xiii, "chapter v" of "Common customs law of
       the GCC states" plus applicable customs duty will be levied on the goods not found in their
       stock. A 15 days time will be granted to settle the dues.

2.14   All types of bills are subject to customs inspection before release & permitted to import /
       export commodities subject to their license activity clause appearing on the license.

2.15   Customs Reserves the right to conduct inspection on Free Zone Licensee's premises & hold
       their codes at any time without prior notice in the event of failure to comply with the above
       procedures or misuse of the system.


3.     Issuance of Import / Export Customs Code:

3.1    The Customs code / account will be blocked if the licensee failed to settle the dues within the
       permitted time frame. Code will be re-activated only after the settlement has been made.

3.2    Code will not be issued if the requirements are not satisfactory.

3.3    Original Importer / Exporter Code Application form can be obtained from any of the Customs
       Operation Office under the control of Dubai Customs

3.4    This application has to be typed, signed & stamped by the Authorized Signatory whose name
       appears on the license or his authorized persons and submit to Free Zone Company Affairs
       Office at Jebel Ali Customs Center along with the following documents:
        A copy of Free Zone License
        Copy of Passport of the Manager whose name appears on the TECOM License (1st page),
           signature & valid visa page
        Certificate of authorization or Power of Attorney endorsed by TECOM in order to verify
           the signatures.
        An undertaking letter from the licensee on the letter head as per the following draft
           signed & stamped by the authorized signatory:

       (We, M/s. ……………………………………… will be operating as per customs rules &
       regulation and maintain fully computerized, thoroughly auditable and accountable inventory
       control system with its correct H.S Code, item wise description, reference Free Zone Bills of
       Entry number, part/model number etc., Package type, Quantity, unit price, total price unit
       weight total net weight & gross weight for the goods received in the “Free Zone” facility
       against Free Zone Bill of Entries & subsequent release of goods against Ex FTZ Bills and it
       will be produced to the Customs upon request. Free Zone Licensee shall take full
       responsibility of settling the dues if any, in case of failure to submit the satisfactory evidence
       of export shipment (Ex-FZ Bills) against the FTZ Bill of Entry or Transfer Bills.)

          Payment of AED 20/- being the registration charge shall be paid by the time of applying
           the Importer / Exporter Code

3.5    Free Zone Import / Export codes will be issued to Free Zone Companies operating under
       TECOM premises.

3.6    Free Zone Import / Export codes will be issued to Free Zone Companies operating under
       TECOM Dummy Licenses only upon submitting the Warehouse / Storage agreement signed



                                                                                                       2
        between the valid Logistics provider holding license from Economic Dept for activities of
        Warehouse / Logistics / Distribution subject to the terms & condition.


4       Renewal of Import / Export Customs Code:

4.1     At the time of renewal of License with the TECOM Administration, all Licensees have to
        submit the application for the renewal of their respective Customs Code with all the requisites
        for obtaining the code with the current stock inventory report for reconciliation purpose.

4.2     Required documents for applying for Renewal of TECOM Import / Export Customs Code:

                Typed Import / Export code Application Form
                License Copy
                Copy of Passport bearing the signature & visa page of the Manager to verify the
                 signature
                An undertaking letter from the licensee on the letter head as per the following draft
                 signed & stamped by the authorized signatory:

        (We, M/s. ……………………………………… will be operating as per customs rules &
        regulation and maintain fully computerized, thoroughly auditable and accountable inventory
        control system with its correct H.S Code, item wise description, reference Free Zone Bills of
        Entry number, part/model number etc., Package type, Quantity, unit price, total price unit
        weight total net weight & gross weight for the goods received in the “Free Zone” facility
        against Free Zone Bill of Entries & subsequent release of goods against Ex FTZ Bills and it
        will be produced to the Customs upon request. Free Zone Licensee shall take full
        responsibility of settling the dues if any, in case of failure to submit the satisfactory evidence
        of export shipment (Ex-FZ Bills) against the FTZ Bill of Entry or Transfer Bills.)

               Payment of AED 20/- being the registration charge shall be paid by the time of applying
                the Importer / Exporter Code
               Stock Report (for Renewal) required only if the licensee holds any physical stock of
                commodities which is cleared on TECOM Bills of Entries or Transfer Bills (purchase
                made between TECOM Licensees) lying in the TECOM licensees premises on the
                specified Customs Format.

5.      Types of the Customs Bills – There is no transaction conducted by Customs without a pre-
        defined Customs Bill. All Customs transactions are conducted with different forms of Bills
        which are:
             Free Zone Bill of entry
             Ex-FZ Import Bill
             Ex-FZ Export Bill
             Ex-FZ Import for Re-Export Bill
             Ex-FZ Internal Transfer
             Ex-FZ Temporary Admission

5.1     Free Zone Bill of Entry

5.1.1   This type of bill is processed to allow entry of goods imported to the Free Zone by sea, land
        and air by the Free Zone Companies directly on their name without paying the applicable
        Customs Duty. This type of bill is being processed upon payment of AED 50/- being the
        Registration Charge as well as AED 10/- being the Knowledge Dirham fee.




                                                                                                        3
5.1.2   Documents Required

         Delivery order from the shipping line or Airline.
         Delivery Note by the Free Zone Company confirming the acceptance of goods, if the
          shipment is coming by land or from other Free Zones.
         Original & detailed item wise invoice with HS Codes classification.
         Certificate of origin
         Original packing list
         Bill of lading Second original if it is by Sea & Airway Bill second original if it is by Air
         Import Goods Declaration Form.

5.1.3   The above documents can be presented to Customs offices at Jebel Ali, Port Rashid, Aweer
        Terminal, Airport Free Zone or Cargo Village and based on these documents, Free Zone Bills
        of Entry will be raised for the clearance of goods into Free Zones.

5.1.4   In the event of failure to submit the original Bill of Lading/Airway Bill, Invoice or the
        Certificate of Origin at the time of passing the F/Z Bill of Entry, a deposit of Dhs.500/- should
        be made, provided proof of the value of goods is available. The claim for refund should be
        made within 59 days from the bill date.

5.1.5   When the goods are cleared through Customs, the consignee can collect the goods on payment
        of storage, handling and any other port charges at Port Documentation Offices - DNATA in
        the Airport. All consignments cleared on Free Zone Bills of Entry should be brought into
        their Free Zone Areas.

5.1.6   All goods destined for the Free Zone must be inspected upon their entry into the Free Zone
        except those from the local market since they must have been cleared by Customs elsewhere
        in UAE. The seals of incoming consignments must be broken only in the presence of a
        Customs Inspector. Any infringement of this rule may attract penal action.

5.2     Ex-Free Zone Import Bill

5.2.1   This type of bills is processed to allow the TECOM Licensee to sell their commodities to the
        Local Companies in UAE or in GCC Countries operating under valid Commercial / Industrial
        Licenses from the concerned regulatory authorities within UAE or in GCC.

5.2.2   Based on the following documents received from the Free Zone Companies, the local importer
        or the GCC Importer have to process this type of bill as & when they purchase commodities
        from Free Zone Companies subject to their valid license activity clause as per the customs
        tariff & the processing charge of AED 60/-. Free Zone Licensee has to deliver the goods only
        upon receiving the copies of the Ex-FZ Import Bill from the importer.

5.2.3   Documents Required

         Delivery Advice from the Free Zone Company – should be stamped by the buyer
          (Importer – local company) and the seller (Exporter – Free Zone Company)
         Original & detailed invoice by item wise with H S Code Classifications and Free Zone
          BOE Reference Number by item wise from Free Zone Company
         Original packing list from Free Zone Company
         Import Goods Declaration Form
         Trade license copy of the seller and buyer
         An NOC from the concerned Ministry or Departments are required incase the goods are
          restricted or prohibited


                                                                                                       4
         An Exemption Request letter & application is required if the UAE importer is exempted
          from paying customs duty

5.3 Ex-Free Zone Export Bill

5.3.1   This type of bill allows the FZ Licensee to export goods out of GCC by sea, land and air. The
        processing charge for this type of bill is normally AED 50/- being the registration charge plus
        AED 10/- being the Knowledge Dirham Fee provided the cargo is being exported other than
        through the Dubai Airport.

5.3.2   The registration charge for processing an Ex-FZ Export Bill for the cargo dispatching through
        Dubai Airport will be only AED 20/-.

5.3.3   Documents Required

         Delivery Advice – should be stamped by the seller (Exporter – Free Zone Company)
         Original & detailed invoice by item wise with H S Code Classifications and Free Zone
          BOE Reference Number by item wise from Free Zone Company
         Original packing list from Free Zone Company
         Exit/entry certificate

5.3.4   These bills are cleared against deposit payment (usually cash / cheque / guarantee) and usual
        registration charges. The refund claim should be submitted within 60 days from the bill date
        though the exporting time limit is only 30 days from the bill date. In addition to the deposit,
        10% of the consignment CIF value would be collected as penalty if the client has failed to
        submit claim together with the attested copies of the exit/entry certificate (proof of final
        export) within the stipulated time as per Customs Notice No. 6/99.

5.3.4   Upon presenting the above documents at the Customs Centers, an Ex-Free Zone Export Bills
        will be processed.

5.3.5   When the FCL Cargo is exported, the Container should be loaded in the presence of the
        customs Inspector and must be sealed by him.

5.3.6   For all movements of consignment involving overland transport, the Free Zone licensee or his
        forwarder is required to make a cash deposit or provide Bank guarantee, in lieu of cash deposit
        equal to the potential duty liability of the consignment.

5.3.7   The Cargo should be exported within 30 days from the bill date. Additional 29 days is allowed
        to submit the claim for refund.

5.3.8   The deposit is refunded when proof of export, the Exit/Entry Certificate, is produced. The
        Certificate should be countersigned by Customs at the point of exit or entry and the claim for
        refund made within 59 days from the Bill date. In the event of failure to submit the export
        proof within the prescribed time, the licensee or the depositor/Guarantor is liable to a penalty
        of 10% on the consignment value as per Customs Notice No. 5/2002 dated 24/07/2002 in
        addition to the deposit or bank guarantee.

5.3.9   The requirement of a cash deposit or bank guarantee for the overland transport of cargo
        involved holds good in the above cases, too.

        For all exports, the Customs department at the destination will require certificate of
        origin issued by Dubai Chamber of Commerce and Industry.




                                                                                                      5
5.3.10 Anyone wishing to collect a deposit refunds through Bank Transfer without collecting
       manually from the Customs Center should apply for such facility on the prescribed application
       form by the Customs and submit to Finance Dept at the Main Office. Any queries regarding
       the cheques should only be directed to the Main Office Accounts Section where all documents
       will remain.


5.4     Import for Re-Export

5.4.1   This type of bill is processed as a special facility for Registered Agents of a "Trade Mark" or a
        product from the Ministry of Commerce. This facility will grant the UAE Importer a grace
        period to export the goods purchased from the Free Zone within 180 days.

5.4.2   A Customs Deposit equivalent to the duty tariff of the invoice value is collected from the UAE
        Registered Company against these transactions. Refund fully or partially if the proof of export
        is submitted within the time frame allocated for these types of bills.

5.4.3   Documents Required.

         Delivery Advice – should be stamped by the buyer (Importer – local company) and the
          seller (Exporter – Free Zone Company).
         Original & Detailed invoice item-wise with its correct H.S.Code Classification and Free
          Zone B/E Reference Number item-wise from Free Zone Company.
         Original Packing List from the Free Zone Company.
         Import Goods Declaration Form.
         Trade license copy from the seller and buyer.


5.5     Internal Transfer

5.5.1   This bill type is processed when a sale of cargo occurs between two registered Free Zone
        Companies having the same type of licensed activities of the goods transferred. No Customs
        Duties or Deposits are involved on these types of bills because the cargo is not leaving the
        customs jurisdictions. This type of bill is being processed upon payment of AED 50/- being
        the Registration Charge as well as AED 10/- being the Knowledge Dirham fee.

5.5.2   Documents required

         Delivery Advice – should be stamped by the buyer and the seller
         Original & detailed invoice item-wise with H S Code Classifications and Free Zone BOE
          Reference Number by item wise from Free Zone Company
         Original packing list from the seller
         Trade license copy for the seller and buyer
         Transfer of ownership letter prepared by the Seller as per the Customs Format and signed
          & stamped by the authorized signatory of both seller and buyer.

5.6     Temporary Admission

5.6.1   This type of Bill is processed on conditional basis whereby the Customs Deposit equivalent to
        the duty tariff on the invoice value is collected. This type of bill is being processed upon
        payment of AED 50/- being the Registration Charge as well as AED 10/- being the
        Knowledge Dirham fee.
         Cargo that are for display in UAE Exhibitions & to be returned.
         Machinery & Equipment for repair purposes & to be brought back


                                                                                                       6
5.6.2   Documents required

         Delivery advice
         Request letter from the Free Zone Company stating the justification for releasing the
          shipment.
         Original & detailed item wise invoice from Free Zone Company
         Packing list
         Letter from exhibitor confirming the participation in exhibition.
         Job card or the contract copy between the Free Zone Company and the repairer against the
          repair work with the license copies of Repairer Company.
         Free Zone license copy

5.6.3   Deposit refund & Guarantee release:

         A proof of entry back into the Free Zone certified by the Customs Inspectors on site.
         Refund will be granted if the claim is submitted within 120 Days.
         Failure to submit the proof of return within the time frame will result in forfeiting the
          deposit.
         In addition to the clause No. 3, a 10% penalty on the Consignment value will be collected
          if the goods cleared on these bills are not returned back to their facility in Free Zone.
         50% of the Deposit will be forfeited if the claims submitted within 120 to 150 days.


5.7     Local purchased goods destined to Free Zone

5.7.1   This type of bill applies to goods locally purchased and brought into Free Zone for the purpose
        of storing or their own use.

5.7.2   No Customs duties or deposit are required in this transaction since the goods are duly
        imported subject to Customs formalities. When the same goods exit from the Free Zone,
        appropriate Customs duty will apply if the Free Zone Company fails to prove the entry of
        goods into Free Zone.

5.7.3   Requirements:

         Local goods In / Out application to be furnished by the Free Zone Company.
         Original Invoice and Packing List from the local company / seller.
         All types of bills / goods are subject to Customs Inspection before receipt / release into or
          out of Free Zone.


5.8     Imports to GCC countries from Free Zones

5.8.1   All GCC Companies should have the Importer Code in order to import to GCC countries from
        the Free Zone. The following requirements need to be fulfilled prior to submitting the
        Application for an Importer code:
         GCC Importer Code Application form.
             Application Forms should be duly completed, typed and affixed with the Importer
               Official Stamp.
             All Original application forms should be attached with a fax or scanned copy of the
               form which fulfills the conditions as stated in the GCC Importer License Copy.
         GCC Importer License Copy
         Chamber of Commerce Registration Certificate.


                                                                                                     7
         Industrial License Copy (If Applicable).
         Authorization Letter from the Licensee.
         Authorization Letter (on Company’s letterhead) addressed to the Director, Jebel Ali
          Customs, authorizing the Free Zone Licensee to process the Import on behalf of the GCC
          Importers.
         Payment of Dhs.20/-

5.8.2   All Free Zone cargo destined to GCC countries by all modes of transport exiting through other
        exit points than Dubai Port can be cleared on processing GCC Ex-FTZ Import Bills, on
        payment of applicable Custom Duty. Free Zone Licensee has to declare the complete overseas
        address on the Delivery Advice & all supporting documents.

5.8.3   Goods listed for duty exemption as per Unified Customs Tariff agreed by the GCC countries
        shall be exempted from Customs Duty.

5.8.4   Industrial inputs directly required for manufacturing process, imported by the concerned
        authority shall be exempted from Customs Duty agreed by the GCC Financial & Economic
        Corporation Committee.

6       Termination process:

6.1     In order to Terminate / Cancel the operations inside the Free Zone all Free Zone Licensees
        have to follow the below stated procedure:

6.2     All Free Zone Companies have to submit Three months advance notice to TECOM
        Administration on their final date of operation.

6.3     TECOM Administration shall inform the Dept of Customs (along with other Statutory
        Authorities) through a common circular notice for the issuance of final Clearance letter with
        cut off time.

6.4     In order to process the Clearance letter before the stipulated time, the FZ Licensee have to
        submit with Customs the current physical stock report lying at their TECOM facility (on
        the attached format) of goods cleared against FZ Bills of Entries or purchases made between
        FZ Licensees which is declared on FZ Transfer Bills with its correct & item-wise description,
        HS Code, Country of Origin, FZ B/E or Transfer Ref Nos., Article / Part or Model Nos.,
        Package Type, Unit Weight, Quantity in Pieces, Unit Price and Total Price etc.

6.5     Upon receiving the stock report from the Licensee, Customs shall send the Compliance Audit
        Team to the Tecom Licensee's premises to confirm the stock

6.6     Once the stock is confirmed by the CAD (Compliance Audit Dept), the FZ Licensee has to
        prepare the D/A, Invoice, Packing List and submit to Jebel Ali Customs Center Counter in
        order to process the necessary Customs Bills for releasing the shipments out of Tecom facility
        for Import / export / transfer by paying the applicable duty / deposit.

6.7     If the Free Zone Licensee does not having any physical stock of commodities imported on
        Free Zone Bills of Entries or purchased from Free Zone Companies against the Transfer of
        Ownership Bills, then in such cases, they have to submit a Declaration for Nil Stock.

6.8     Based on the Termination Notice received from TECOM, Customs shall process the detailed
        Stock Inventory report with all information in the pre-defined format.

6.9     Customs shall then reconcile their Stock report with the Inventory report submitted by the
        Free Zone Licensee.


                                                                                                    8
6.10   If the Stock inventory of the FZ Licensee reconcile with Customs stock report, then Customs
       shall issue the Final Clearance letter to TECOM Administration

6.11   If the stock inventory of the FZ licensee doesn’t tally against the particulars declared on Ex-
       Free Zone bills by referring Free Zone B/E’s, then Customs shall accordingly advise the
       Licensee to settle the outstanding claim being 5% Customs Duty plus 10% Penalty on the
       consignment value (if applicable) as they failed to present satisfactory evidence of export of
       all goods cleared into their Free Zone facility.

6.12   In such cases the Final Clearance Letter will be issued upon settlement of the outstanding
       claim amount.

6.13   Settlement can be made by paying the claim amount as Cash or a Demand Draft favoring
       Dubai Customs from the UAE Banks.




                                                                                                     9

								
To top