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    Indirect Tax

    Dubai Customs –Economic Stimulus Package – 20% Duty Refund in response to Coronavirus

    To reduce the cost of commercial activities and boost the trading sector in Dubai, Dubai Customs Department has announced an economic stimulus package. 20% Customs Duty Refund will be effective from 15/03/2020 till 30/06/2020.

    Mechanism of Refund

    Refund of Custom Duty will be automatically processed on 30th day from the declaration date

    Eligible Activity

    Below mentioned declarations will be eligible for refund:

    • Import to Local from Rest Of World (ROW)
    • Import to Local from Free Zone
    • Import to Local from Customs Warehouse

    5% Customs Duty Rate items only be eligible for Duty Refund.

    Only those Declarations which will be processed during the period 15/03/2020 to 30/06/2020 will qualify for the refund.

    At the time of Makasa issuance, if 20% of duty has already been refunded for the reference declaration, then the full refunded amount should be collected prior to issuance of the Makasa, irrespective of whether full or partial quantities are exported to GCC Countries.

    Non Eligible Refunds for below mentioned activity

    Declarations with GCC destination:

    • If Makasa is already issued for same Declaration
    • If any Duty drawback is claimed for same Declaration
    • If eligible refund amount is less than AED 100
    • If Makasa is cancelled

    If Duty Paid through

    CDR or Debit Card

    E-Payment or Cash

    Refund

    In CDR or Debit Card

    In Bank account registered with Customs

    Important Note:

    For those customer who did not register bank account with customs, kindly register using www.dubaitrade.ae for getting refunds on time.

    *This article is contributed by CA Priyanka Garg- Manager Taxation

    Vipin Kumar Ahuja

    Designation: Associate Director

    About Author:

    Associate Director – Taxation (VAT, Excise & Customs)
    Chartered Accountant, DISA, Dip. in IFRS.
    Having over 12 years of experience in advising clients on Direct & Indirect tax and regulatory issues across India, UAE, KSA and Bahrain.

    Areas of Specialization:
    – Value Added Tax (VAT)
    – Excise Tax
    – Custom
    – Transfer Pricing
    – Project Management
    – Process Improvement
    – Risk Management

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