In recent times, the cosmetics industry in the UAE has experienced a significant increase. A wide range of skincare products, including masks, oils, hair care items, and more, are being shipped both domestically and internationally. So, starting a business involving the import of skincare products from across the UAE border is a fine idea.
It’s crucial to understand the complexities involved in their importation including customs clearance, a major procedure to complete. This process involves submitting a request along with specific documents, permits, and fees.
In this article, we’ll provide you with details of the Dubai customs clearance procedure for skincare products.
What is Customs Clearance in Dubai, UAE?
Customs clearance is a crucial step for products entering or leaving the UAE. It serves as a permit allowing goods to pass through borders, requiring various legal documents and payment of duties.
The customs clearance process involves the identification and monitoring of goods at airports, seaports, and border crossings to prevent illegal importation or exportation of national or international vehicles and cargo.
This process ensures the safety of products entering or exiting the country, while also protecting the economy and contributing to revenue growth. It also ensures that all tariffs are duly paid and that goods are authorized for export.
Customs Clearance Procedure for Skincare Products in the UAE
The customs clearance procedure for skincare products in the UAE is not a task undertaken by one individual; rather, it is a comprehensive and time-consuming process.
Here is the complete step by step customs clearance procedure:
Submission of Documentation
Upon the arrival of the skincare products shipment, the importer must submit all required documentation, including the import permit, invoice, packing list, and certificate of origin, to the customs authorities. The authorities will do document reviews to verify the accuracy of the information provided about the shipment and products.
Required Documents
Typically, freight forwarders handle this responsibility, but it requires the submission of various documents to facilitate smooth customs clearance. These documents include:
- Commercial invoice
- Bill of lading
- Packing list
- Certificate of origin
- Import permit
- Product Registration Certificate
- Letter of duty exemption from the Finance Ministry
- Certificate of Conformity
- Code
Inspection and Verification
Then, Dubai customs officials will conduct physical inspections to ensure compliance with regulatory requirements set by the UAE government.
Payment of Duties and Taxes
After verification, the importer is required to pay the applicable customs duties, VAT, and excise taxes to obtain clearance for the skincare products.
Now, we will learn about the procedure to get the required licenses for customs clearance:
Certificate of Conformity from ESMA for Skincare Products in UAE
All skincare products must undergo the Emirates Conformity Assessment Scheme (ECAS) conducted by ESMA (Emirates Standardization and Metrological Authority) to obtain a Certificate of Conformity before importing skincare products from overseas suppliers or manufacturers. This certificate is essential for customs clearance and for selling products in the UAE markets.
The ESMA is the governing body for skincare products in the UAE. Importers must get the ECAS Certificate of Conformity to avoid rejection during the customs clearance process.
Shipments lacking the Certificate of Conformity will be rejected outright, and in some cases, returned to the country of origin. Therefore, importers should register their products with ESMA to avoid rejection or delays in clearance.
Additionally, the Customs Department must be informed about the ECAS approval to import specific products to the UAE and sell them to end consumers.
Required Documents for ESMA Certification
To obtain ESMA product registration in the UAE, applicants must submit the required documents along with their application. The following list outlines the necessary documents importers, businessmen, and investors should provide to get a Certificate of Conformity:
- Representative label and artwork of the skincare product
- Health and Safety report related to the skincare product
- Valid trade license
- Document from the manufacturer detailing ingredients and their percentages present in the skincare products
- Free sale certificate for the skincare products issued by the competent authority in the country of origin
- Test or certificate report of the skincare products from an accredited laboratory (Notified bodies)
Who Needs to Register Skincare Products with ESMA in the UAE?
According to regulations, only skincare companies incorporated in the UAE are permitted to register their products with ESMA. Both mainland and free zone companies are eligible to apply for a Certificate of Conformity (CoC) from ESMA, provided that their business activity, as stated on their trade license, is relevant to the import of skincare products.
Foreign skincare companies have the option to appoint a local distributor for this process. The local distributor must be a company already registered in the UAE with a valid license. Free zone companies may also appoint local distributors if they intend to sell skincare products outside the free zone.
Products to be certified by ESMA under the Emirates Conformity Assessment System (ECAS) program
The UAE has implemented mandatory regulatory control measures for energy efficiency, electrical and mechanical safety, and environmental requirements through a national program, the Emirates Conformity Assessment System (ECAS).
Besides skincare products, the ECAS program covers various sectors, including Machinery, Electrical, Automotive, Gas Appliances, Electronics, Building and Construction, and Food.
Customs Code
Obtaining a customs code for skincare products in Dubai can be done online by submitting an application on the Dubai Trade Portal.
Required Documents
Several documents are necessary to acquire a customs code, including:
- Certificate from the Chamber of Commerce
- Passport copy of the authorized person
- Copy of a valid trade license
- Undertaking letter
A code is issued by the customs administration to the company for their customs transaction clearance. This ID, issued by Dubai Customs, is allocated to importers whose trade license authorizes them to import and export skincare products.
Renewal of Custom Code
The customs client code for skincare products must be renewed annually in the UAE. To renew, the same application submission process via the Dubai Trade Portal is required, along with a copy of the trade license.
Skincare Product Registration Certificate
The registration certificate for skincare products is a crucial document that makes customs clearance easy during shipment. It is issued by the Dubai Municipality for the skincare products of the companies.
Skincare products lacking registration with the Dubai Municipality may face rejection during shipment or be removed from the market. Registration aims to provide consumers with essential product information when making purchasing decisions.
Process of Skincare Products Registration with Dubai Municipality
The process of registering skincare products with Dubai Municipality and other municipalities across the Emirates follows the same procedure. Skincare businesses must register their products with the municipality corresponding to the emirate where their trade license is issued.
For instance, if a business’s trade license is issued in Dubai, its products must be registered with Dubai Municipality. Once registered with Dubai Municipality, the business can distribute its skincare products across all Emirates in the UAE.
It’s essential to note that in the product registration process, the same product or brand must be registered multiple times if it is available in different quantities, sizes, packaging, and qualities. For example, if “XYZ oil” is available in both 250 ml and 350 ml bottles, it must be registered separately for each quantity variation.
Below is an outline of the skincare product registration process with Dubai Municipality via the Montaji portal and other municipalities in the Emirates:
1. Ensure Valid License
Dubai Municipality requires that skincare product registration must be carried out by companies operating in any free zones or the mainland within Dubai. Having a valid license is a requirement for businesses to begin the product registration process with the Municipality.
2. Register with the Municipality
Skincare companies must register with the Municipality once they have obtained a valid license. To begin the process, businesses need to submit a skincare product registration service application and pay the registration fees. A company representative must complete a separate form for each product.
Additionally, the representative must provide a copy of a valid label assessment for the skincare product being registered. Registration can only be done online in Dubai through the Dubai Municipality’s website.
3. Completion of Registration
Upon submission of the necessary documents, Dubai Municipality will review the application and verify the validity of the submitted documents. If the Municipality determines that the product complies with its regulations, the skincare product will be registered, and an electronic registration certificate will be automatically generated.
Validity of Product Registration Certificate
The registration is valid for 5 years. In case of any objections, the applicant should respond with relevant supporting documents.
In addition to the customs clearance process, skincare products imported into Dubai must undergo registration with the Dubai Municipality. This step ensures compliance with local regulations and facilitates smooth customs clearance. Learn more about the Product Registration in Dubai.
How to Link FTA TRN Number with Dubai Customs?
When importing products into the UAE, VAT payment is mandatory for customs clearance. The Federal Tax Authority (FTA) and the UAE Customs Departments collaborate to collect VAT on imported items. To clear imported goods, all VAT-registered businesses must provide their Tax Registration Number (TRN) to the customs department.
If the TRN in the customs system is verified and deemed valid, businesses can clear imported goods without paying VAT at customs. To link your TRN with Dubai Customs, follow these steps:
- Visit dubaitrade.ae
- Enter your login information.
- Select “DP World VAT Profile” from the User Management menu.
- Complete the necessary VAT information on the displayed page.
- Click submit.
- Wait for the confirmation message from Dubai Customs once you have completed the process.
Custom Clearance Departments in the UAE
In the UAE, each emirate operates its own customs compliance committee, while the federal customs authority holds centralized control. This authority oversees the enforcement of customs laws and regulations, as well as the formulation of related policies.
All the emirates have their own customs clearance procedures and policies, with seven different states in the UAE having their respective customs clearance authorities. Here is a list of customs clearance departments in the UAE:
- Dubai Customs
- Ajman Customs
- Umm Al Khaimah Customs
- Fujairah Customs
- Abu Dhabi Customs
- Sharjah Customs
Important Customs Clearance Laws in the UAE
Certain customs regulations should be kept in mind when conducting skincare products business in the UAE, as outlined by the International Trade Administration:
- Businesses that are VAT registered are not permitted to charge VAT on their sales or collect any tax-related fees on their inputs.
- Re-exports of goods from UAE Free Trade Zones to third-market destinations outside the GCC Customs Zones are duty-free.
- Goods destined for the UAE mainland are subject to duty according to the GCC’s Common Customs Laws. However, goods destined for Free Trade Zones are exempt from duty.
- The UAE government has implemented a 5% Value Added Tax (VAT) on companies operating in the UAE with taxable supplies and imports exceeding $102,000 per year.
How to Lower Custom’s Risk in UAE?
Here are some key points to consider for reducing the risk associated with customs:
- Ensure all required documents are properly arranged.
- Provide all necessary information to your customs broker to prevent any confusion.
- Thoroughly review entry paperwork to identify high-risk individuals, luggage, and vehicles.
- Establish formal import/export rules and standard operating procedures.
- Implement record-keeping procedures that comply with regulations.
How to Choose a Customs Broker?
Understanding and fulfilling all the extensive procedures and document requirements for customs clearance may eliminate the need for brokers. However, as mentioned earlier, this process can be challenging, requiring the assistance of custom brokers. Custom brokers save time and help prevent errors and delays.
Choosing a skilled customs broker not only saves time and money but also aids in completing paperwork and facilitating product inspection. Therefore, it’s advisable to seek the assistance of custom brokers.
When selecting a customs broker for your documentation process, consider the following:
- Reliability and dedication
- Relevant experience in customs matters
- Familiarity with the trade route of your cargo (origin and destination)
- Licensing
- Ability to handle your cargo volume
Get Dubai Customs Clearance Services for Skincare Products with RIZ & MONA CONSULTANCY
Starting an import business around skincare products in the UAE is surely a promising venture but requires a lot of procedures to be completed. One of the most important yet difficult procedures is the customs clearance procedure.
This process involves multiple steps and can be complex. Therefore, it’s recommended to seek assistance from a reputable consultancy firm to ensure smooth clearance of skincare products and other product shipments from Dubai Customs. At RIZ & MONA CONSULTANCY, we have the experience and expertise to help you navigate this process efficiently. Feel free to reach out to us via email at info@rizmona.com or WhatsApp at +971-54-582-1012. We’re here to assist you.
FAQs – Frequently Asked Questions
What Is a Lading Bill?
The lading bill, also known as a bill of lading, is a document provided by your freight forwarder. It contains essential information such as the shipper’s name, the discharge port, the notify party, and the lading port. Additionally, it includes details like container number and type, weight, and a description of the goods being shipped.
Is It Important to Pay Customs Duties in the UAE?
Yes, it is necessary to pay customs duties in the UAE. The amount of customs duty to be paid is determined by the product’s CIF (Cost, Insurance, and Freight) value. Typically, customs duty in the UAE is calculated at a rate of 5% of the product’s CIF value.
Is it necessary to hire a customs broker for skincare product imports?
While hiring a customs broker is not mandatory, it is highly recommended for quick and efficient customs clearance. Customs brokers have expertise in customs regulations, documentation requirements, and clearance procedures, which can help you complete the process and ensure compliance.
What are the common challenges faced during customs clearance of skincare products in Dubai?
Common challenges during customs clearance of skincare products in Dubai include incomplete or inaccurate documentation, discrepancies in product information, regulatory compliance issues, and strict inspections by customs authorities.
What is the Bill of Entry in UAE?
A Bill of Entry is a necessary document submitted by importers to customs authorities prior to importing goods into a country. It provides comprehensive information about the imported goods, such as description, quantity, value, and other essential details. This document aids in customs clearance and ensures adherence to import regulations.
How long does Dubai customs clearance take?
Customs clearance typically occurs within a timeframe of 5-10 days, though this duration may vary throughout the year. Deliveries to major cities are usually completed within 7 days after clearance.
What are the documents required to import skincare products to the UAE?
For importing skincare products into the UAE, essential documents include a commercial invoice, certificates of conformity, certificates of origin, shipper’s export declarations, bills of lading, air waybills, and packing lists. Depending on the nature of the goods, additional documents like licenses and permits may also be necessary.
