UAE customs duty: rates, exemptions and how it is calculated

Under the GCC common customs tariff, UAE customs duty is generally 5% of the CIF value of goods from outside the GCC: the goods’ price plus insurance and freight to the UAE. Alcohol pays 50% and cigarettes and tobacco 100%, while qualifying GCC-origin goods and goods on the GCC exemption schedule pay none. Import VAT of 5% is then charged on the CIF value plus duty and any excise tax.

Key takeaways

• The UAE applies the GCC common external tariff: generally 5% of the CIF value on goods from outside the GCC.
• Alcohol carries 50% duty and cigarettes and tobacco 100%.
• Duty is collected once, at the first point of entry into the GCC Customs Union.
• Exemptions cover qualifying GCC-origin goods, 417 goods on the GCC schedule and categories such as industrial inputs, personal effects and re-imported goods.
• The rate for each product depends on its HS code, which in the UAE can run to 12 digits.

On this page 8 sections

How customs duty works in the UAE

The UAE charges customs duty under the common tariff of the GCC Customs Union, on goods that enter the Union from outside it. The GCC is a customs union, and Dubai, like every other emirate, charges import duty at the same rates.

GCC Customs Union

Customs Union since 1 January 2003; duty paid at first point of entry

The GCC Customs Union has operated since 1 January 2003: member states apply a common external tariff, customs duty is collected once at the first point of entry into the Union, and goods on which duty was paid there move between member states without being charged again.

In practice, goods cleared in the UAE and later moved to another member state are not assessed for duty again there, as long as payment at the first point of entry can be proven (ICP). Each emirate’s customs department, such as Dubai Customs or Abu Dhabi Customs, clears shipments and collects the duty, while ICP, the Federal Authority for Identity, Citizenship, Customs and Port Security, runs the Central Customs Tariff System and its commodity search.

The government portal u.ae describes the country’s tariffs as ranging from 0 to 5%, and lists higher rates for alcohol and cigarettes. How to import goods into the UAE covers clearing a shipment, from the customs code to release; other trade and customs guides cover origin, trade agreements and exports.

Customs duty rates

The tariff has a general rate, two higher rates and two cases with no duty:

General customs duty

5% of CIF value

The general UAE customs duty on goods imported from outside the GCC is 5% of the CIF value (cost, insurance and freight up to the place of importation); some goods are exempt and some carry higher rates under the GCC common tariff.

The rate for a particular product comes from its place in the tariff, and u.ae, quoting Sharjah Customs, notes that the duty varies on some goods according to the tariff.

Customs duty on alcohol

50%

Customs duty on alcohol is 50%, instead of the general 5%.

For tobacco and its derivatives, ICP describes the GCC duty as 100% ad valorem or specific under the unified tariff schedule: either a percentage of the value or a fixed amount per quantity. The customs duty calculator applies 100% of the CIF value.

Customs duty on cigarettes and tobacco

100%

Customs duty on cigarettes and tobacco is 100%, instead of the general 5%; this is separate from, and in addition to, the 100% Excise Tax on tobacco.

Excise tax is a separate federal tax, administered by the Federal Tax Authority (FTA), that excise goods such as tobacco pay on top of customs duty; the excise tax calculator works it out. Separately, the Ministry of Economy and Tourism’s trade remedies page refers to ministerial decisions and circulars imposing anti-dumping, countervailing and safeguard measures on specific products.

How the duty is calculated

Customs duty is the duty rate multiplied by the CIF value in dirhams: duty = rate × (cost + insurance + freight).

The CIF value

CIF stands for cost, insurance and freight. Dubai Customs says the customs value is based on CIF under the Common Customs Law of the GCC States, and that it includes transport, insurance and related charges up to the place of importation. The cost is normally the transaction value: the price actually paid or payable for the goods when sold for export to the GCC.

Where customs cannot accept that price, the WTO Agreement on Customs Valuation sets the other methods, applied in order: the value of identical goods, then of similar goods, a deductive value based on the resale price in the importing country, a computed value based on production costs, and a final fallback method (Dubai Customs).

Values in foreign currency

An invoice in another currency is converted at the exchange rate at the time the customs declaration is submitted, according to Dubai Customs. The dirham is pegged to the US dollar, as explained in the AED to USD peg, and the Central Bank of the UAE publishes the rate.

Dirham to US dollar

USD 1 = AED 3.6725

The UAE dirham is pegged to the US dollar at USD 1 = AED 3.6725; the CBUAE's published USD rate was 3.6725 on its exchange rates page last updated 20 October 2026.

The USD to AED converter turns an invoice amount into dirhams at this rate.

Import VAT on top

Import VAT is charged on a value that already includes the customs duty, so the duty itself attracts VAT.

Value of imported goods for VAT

Customs value + customs duties + Excise Tax

For VAT, the value of imported goods is their customs value under customs legislation, including insurance and freight, plus any customs duties and Excise Tax paid on the import; VAT itself is not included in the value.

Standard VAT rate

5%

UAE VAT is charged at a standard rate of 5% on taxable supplies and imports of goods and services, unless a supply is zero-rated or exempt.

A VAT-registered business that imports goods for its business generally accounts for this VAT in its own return under the reverse charge on imports, if it meets the conditions in Article 48 of the VAT Executive Regulation, such as giving the FTA its customs registration number; otherwise the VAT is paid before the goods are released (Article 50 of the same regulation). Who pays at the border and who declares it later is set out in how to import goods into the UAE, and UAE VAT rates covers the supplies taxed at 0% or exempt.

Worked example

Duty and import VAT on goods bought in US dollars

The amounts are illustrations: general goods from outside the GCC, with no excise tax. The conversion uses the peg for the illustration; customs converts at the rate on the day the declaration is submitted.

1. Cost of the goods in dirhams: USD 10,000 × 3.6725 = AED 36,725.
2. CIF value: AED 36,725 + AED 2,500 freight + AED 275 insurance = AED 39,500.
3. Customs duty at 5%: AED 39,500 × 5% = AED 1,975.
4. Value for import VAT: AED 39,500 + AED 1,975 = AED 41,475.
5. Import VAT at 5%: AED 41,475 × 5% = AED 2,073.75.
6. Duty and VAT together: AED 1,975 + AED 2,073.75 = AED 4,048.75, for a landed total, before the customs declaration fee, of AED 39,500 + AED 4,048.75 = AED 43,548.75.

Customs duty: AED 1,975; import VAT: AED 2,073.75.

HS codes and classification

An HS code is the number that places a product in the customs tariff, and it decides the duty rate, any exemption and any trade agreement benefit for that product.

HS codes in the UAE

Up to 12 digits (first 6 global)

The UAE classifies goods with Harmonized System (HS) codes of up to 12 digits: the first six digits are standardised worldwide by the World Customs Organization, and the UAE and other GCC states add national or regional digits; each HS code is linked to its duty rate, exemptions and trade agreement benefits.

The Harmonized System groups goods into sections, chapters, headings and subheadings, and customs authorities use the same codes to set tariffs and collect trade statistics (ICP).

Finding the HS code for a product

ICP’s Central Customs Tariff System page offers three public tools. Commodity Search finds a code by description or number and shows its duty rate, agreements and customs rules. The Estimated Customs Calculator estimates the duty from the HS code and value of a shipment. Commodity Lists show the goods that are restricted or prohibited in the UAE, with the permits they need.

For official classification support, ICP points to the federal customs authority or the local customs department. In Dubai, that is the Request Goods Classification service.

Dubai Customs classification request

AED 25 per item tariff

Dubai Customs' Request Goods Classification service classifies a commodity under the unified customs tariff of the GCC countries for a fee of AED 25 per item tariff, with a service completion time of 2 working days; the classification decision applies only to the submitted invoice.

8-digit and 12-digit codes

Dubai Customs is introducing an integrated customs tariff at the 12-digit level. Under its phase 1, traders could keep declaring 8-digit codes, and Customs Notice No. 02/2026, issued on 30 January 2026, extends that flexibility until further notice: during that period Dubai Customs accepts customs declarations made with 8-digit HS codes.

Exemptions from customs duty

Goods avoid customs duty in four ways: they qualify as GCC-origin goods, they are on the GCC exemption schedule, the import falls in an exemption category, or the goods stay in a free zone. Each route has its own conditions. Lower duty can also apply under trade agreements such as the UAE’s comprehensive economic partnership agreements (CEPAs): ICP notes that certain HS codes may qualify for reduced or zero duty under such agreements, depending on the origin of the goods. The agreements and how the preference is claimed are covered in UAE CEPA trade agreements.

GCC-origin goods

GCC-origin goods

0% duty on qualifying GCC-origin goods

Goods produced in a GCC member state are treated as national goods in every member state and move between them free of customs duty; u.ae, quoting Sharjah Customs, states that goods originating from GCC countries are treated as UAE local goods provided 40% of the raw materials used to make them originate in the GCC.

ICP states the principle as goods produced in any member state being treated as national goods in all member states. Origin is shown with a certificate of origin, which customs can ask for with the declaration under the GCC’s unified customs procedures.

The GCC exemption schedule

GCC exemption schedule

417 goods exempt

The GCC common customs tariff is 5% on all foreign goods imported from outside the Union, with exemptions for 417 goods under the approved schedule and the exemptions provided for in the Unified Customs Law; tobacco and its derivatives carry a duty of 100% (ad valorem or specific).

The schedule is a list of goods, while the exemption categories below depend on who imports the goods, for what purpose, or on the goods having been exported before. ICP’s Commodity Search shows the rate attached to each HS code.

Exemption categories

Exemption categories

Diplomatic, military, industrial, personal, charitable and re-imported goods

The GCC unified customs procedures provide customs duty exemptions for diplomatic missions, military imports, industrial projects licensed under the GCC Unified Industrial Regulation Law, personal effects and used household items, travellers' baggage and gifts, supplies for charitable organisations, goods for persons with special needs, relief materials and commercial samples, and re-imported goods.

Each category has its own conditions in the GCC’s Unified Guide for Customs Procedures at First Points of Entry. The main ones are:

Quantities above those in an industrial exemption decision pay duty, and exempt goods that are later sold or put to another use generally need the customs authority’s approval or notice, with the duty paid.

Free zones and travellers

Customs duty in a free zone

0% customs duty in the free zone; duty on entry to the mainland

Free zone companies can import, export and re-export goods, with 0% customs duty on goods imported into the free zone and no customs duty on goods stored there for re-export; goods become subject to UAE customs duty only when moved into the mainland market.

Under the GCC procedures, goods in a free zone are treated as foreign goods and can stay there without a time limit. ICP states that goods from free zones are subject to duty when they leave the zones, and Dubai Customs requires a customs declaration when a free zone company sells goods to the mainland. The wider trade-offs are compared in mainland or free zone.

Travellers' duty-free allowance

AED 3,000

Dubai Customs exempts gifts that arriving passengers carry with them from customs duty up to a value of AED 3,000, provided the baggage and gifts are of a personal nature and not in commercial quantities; customs duty is charged on quantities and values above the limits, and VAT may also apply.

Dubai Customs charges duty on quantities and values above the allowance, and VAT may also apply. Goods carried in commercial quantities go through the normal import procedures.

Other charges at import

Customs duty is not the only charge on an import: excise tax applies to excise goods, import VAT applies unless the goods are zero-rated or exempt, and the customs department charges a fee for each declaration.

Dubai Customs declaration fees

AED 15 to AED 100 per declaration

Dubai Customs charges AED 15 to AED 100 for an import or export declaration depending on the declaration type and shipping channel (transit AED 15 to AED 80, transfer AED 80, temporary admission AED 100), plus the AED 20 Knowledge and Innovation fee on service costs of AED 50 and above; the documents required are the invoice, the packing list, the certificate of origin and any permit from a restricting authority, and the service completion time is 2 working hours.

These are Dubai Customs’ own fees; each emirate’s customs department sets its own.