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General Administration of Customs Abu Dhabi highlights new e-commerce policy

‘Goods and imports for personal purposes’ with value not exceeding AED1,000 will be exempt from duties

General Administration of Customs Abu Dhabi highlights new e-commerce policy
General Administration of Customs Abu Dhabi highlights new e-commerce policy

General Administration of Customs in Abu Dhabi highlighted a resolution regarding the e-commerce policy issued on July 26th, which will come into effect from August 15th, 2021, as part of Abu Dhabi government’s strategy for digital transformation and enhancing the capital’s position as a regional and global logistics hub.

Rashed Lahej Al Mansoori, Director General, General Administration of Customs in Abu Dhabi, voiced that e-commerce policy is correlated with directives of the wise leadership for purpose of facilitating movement of trade in all its forms, notably electronic ones. It contributes to enhancing investment environment, plus attracting more investments to Abu Dhabi.

In application of the new e-commerce policy, Al Mansoori added that General Administration of Customs in Abu Dhabi aims to provide a competitive investment environment that integrates with the private sector, simplify customs procedures and regulates movement of personal goods via e-commerce channels subject to customs procedures in force and legislation relative to this vital sector.

Provisions of e-commerce policy shall be applied to the goods imported and exported by firms to distribution centers in the domestic market and the corporations operate in the free zone or UAE customs bonded warehouses, in addition to import of goods stored in distribution centers for consumption in the local market established in the free zone or customs warehouses via electronic platforms.

The provisions of the policy shall be applied also to exports of goods from distribution centers.

Companies desiring to engage in e-commerce activity must register and add the activity in the registration system of the General Administration of Abu Dhabi Customs’ Licensing Department, apart from adding the same in the trade license.

Companies desiring to obtain the privileges set out in this policy must obtain customs registration number, while e-commerce companies must establish distribution centers for goods intended for sale through their electronic platforms to ascertain meeting the conditions prescribed by distribution centers.

E-commerce policy has set controls and provisions including exempting electronic purchases through firms’ sales platforms when “goods and imports for personal purposes” whose value does not exceed AED 1,000. The excludes tobacco and its derivatives, electronic smoking devices and tools and their accessories, nicotine liquids, alcoholic beverages and food nutrients containing alcohol.

Corporations are also granted advantage of organising unified import statement for a set of shipments ‘consolidated data’ so that value of a shipment does not exceed AED5,000 and not less than AED1,000. The total value shall be AED50,000 for all shipments in one statement, provided that number of shipments does not exceed 50, excluding the restricted goods.

The online commerce policy prohibits entry of a number of goods into the distribution centres which are ‘flammable goods except for fuels, in addition to radioactive materials, military weapons, ammunition and explosives of any kind’.

The policy also prohibits the entry of goods as per regulations relative to protection of intellectual, commercial, industrial, literary and artistic property, in addition to drugs of all and different types and kinds and their derivatives.