Public Policy Document

The UAE’s Policy on Customs Exemption for Industrial Production Line Inputs was issued in 2022. It serves as a unified national policy adopted by all relevant authorities in the UAE to secure common interests and fair competition for local and international suppliers and manufacturers.

The policy represents the commitment of the Ministry of Industry and Advanced Technology to implement programs and frameworks that support industrial projects, provide benefits and exemptions, and stimulate and empower industrial enterprises.
 

1. Update the customs duty exemptions mechanisms for imported industrial inputs to keep pace with industrial and economic changes in the UAE and value-added tax (VAT).
2. Stimulate industrial production growth and increase the industrial value added.
3. Encourage purchases of locally-made products over imported goods, increase demand for national raw materials, and prevent unfair competition in the local market.
4. Develop and strengthen national supply chains and support innovation of new products.
5. Standardize customs exemption services at the national level and across all local customs authorities.
    

1. Grant customs exemption to foreign products not manufactured in the UAE based on quality, quantity, and competitive price.
2. Conduct on-site inspection at the factory and grant customs exemption for quantities specified per the factory quota at the first point of entry of raw materials.
3. Require factories to submit regular reports on the manufacturing process and value-adding. If the stipulated conditions are not met, exemptions shall not be granted in future applications.
    

1. Update the customs duty exemptions mechanisms for imported industrial inputs to keep pace with industrial and economic changes in the UAE and value-added tax (VAT).
2. Boost growth of industrial production and increase the industrial value added.
3. Encourage purchases of locally made products over imported goods; increase demand for national raw materials and prevent unfair competition in the local market.
4. Develop and strengthen national supply chains and support innovation of new products.
5. Standardize customs exemption services at the national level and across all local customs authorities, by:
   • Granting customs exemption to foreign products not manufactured in the UAE based on quality, quantity, and competitive price.
   • Conducting on-site inspection at the factory and granting customs exemption for quantities specified per the factory quota at the first point of entry of raw materials.
   • Requiring factories to submit regular reports on the manufacturing process and value-adding. If the stipulated conditions are not met, exemptions shall not be granted in future applications.
      

Manufacturers, and the business sectors.