Short answer: Most goods imported into the UAE pay 5% customs duty on the CIF value (cost + insurance + freight) and 5% VAT on the CIF value plus duty. Some goods are exempt, some pay higher duty or excise tax, and regulated products such as electrical items, toys, cosmetics and food need conformity certificates or registration before they can be cleared.
How is UAE customs duty calculated?
The UAE applies the GCC common customs tariff. For most products the duty rate is 5%, charged on the CIF value – the price of the goods plus insurance and freight to the UAE. The rate that applies is set by the product’s HS code (Harmonized System code), so classifying goods correctly is the first step.
Formula: Customs duty = 5% × (product value + freight + insurance)
How is import VAT calculated?
The UAE charges 5% VAT on imports. It is calculated on the CIF value plus customs duty (and any excise tax). VAT-registered businesses can usually recover import VAT through their VAT return, so it affects cash flow more than final cost; businesses that are not VAT-registered carry it as a cost.
Formula: Import VAT = 5% × (CIF value + customs duty)
Which goods pay more, or nothing?
- Exempt or 0% duty: many basic food items, some medicines and medical equipment, and goods of GCC origin moving between GCC states with a valid certificate of origin.
- Higher duty: a small set of goods, such as tobacco and alcohol, carry much higher rates.
- Excise tax: tobacco products, energy drinks, carbonated drinks, sweetened drinks and e-cigarette products pay UAE excise tax on top of duty and VAT.
Always confirm the rate for your HS code with your customs broker before ordering.
Which products need certification?
| Product type | What is usually needed | Who issues / registers |
|---|---|---|
| Electrical and electronic products, toys, some building and automotive products | Conformity certificate under ECAS (Emirates Conformity Assessment Scheme) | Ministry of Industry and Advanced Technology (MoIAT) |
| Cosmetics and personal care | Product registration/conformity before sale | MoIAT and local municipality (e.g. Dubai Municipality) |
| Food and food-contact items | Product registration and labelling approval | Local municipality food authorities |
| Goods re-exported to Saudi Arabia | SABER product and shipment certificates | SASO (Saudi Standards, Metrology and Quality Organization) |
Requirements change and depend on the exact product, so check them before production: test reports and labels are much easier to arrange at the factory than after arrival.
Which documents do customs need?
- Commercial invoice (with HS codes, values and origin)
- Packing list (quantities, weights, carton count)
- Bill of lading or air waybill
- Certificate of origin
- Product certificates where required
Mismatched quantities or descriptions between these documents are the most common cause of clearance delays.
Worked example
Goods worth AED 20,000, freight AED 2,500, insurance AED 100. CIF = AED 22,600. Duty at 5% = AED 1,130. VAT at 5% on (22,600 + 1,130) = AED 1,186.50. Total duty and VAT = AED 2,316.50, before broker fees and local delivery.
Frequently asked questions
Is customs duty charged on the product price or the total shipment value? Duty is charged on the CIF value: the product price plus insurance and international freight to the UAE. That is why freight costs affect duty, and why accurate invoices and freight documents matter.
Can I recover import VAT? VAT-registered businesses in the UAE can generally recover import VAT through their VAT return, subject to the normal rules. Ask your accountant how this applies to your company.
Do I need a certificate of origin? A certificate of origin is commonly requested by UAE customs and is required to claim lower duty under GCC or other trade agreements. Ask your supplier to arrange it before shipment.
This guide is general information, not legal or tax advice; rates and rules can change. Related: Customs & Documentation service · Landed cost guide · Import from China to UAE.
