Definition

Customs Duty is a tariff charged on goods imported into the UAE. It is separate from VAT and collected at the border by UAE Customs authorities.

Key points

• Standard duty rate: 5% on most goods.
• Some goods are duty-free (e.g., raw materials, re-exports).
• Payable before goods are cleared from Customs.
• Works alongside VAT on imports.

Practical example

A trader imports clothing valued at AED 100,000. Customs duty of AED 5,000 is paid, plus import VAT of AED 5,250.

Why it matters

Businesses must account for both customs duty and VAT to calculate landed cost and pricing.