Re-Export Business in UAE – Things to Know
The re-export business in the UAE has been experiencing consistent growth year after year. The trade value of re-exported goods has been showing remarkable growth rates compared to previous years in the UAE.
Re-exported goods now account for approximately 45% of the UAE’s total exports. Even in the face of a global economic slowdown and the onset of a pandemic, the re-exports from the UAE continue to hold a significant share of growth.
What are Re-Exports?
Re-exports refer to goods imported from abroad to the UAE that undergo customs procedures and are subsequently re-exported by a third party without any modifications to the product.
Free Zones play a crucial role in fostering the re-export market in the UAE. They provide appealing infrastructure, a favorable legislative environment, and support from ports, Customs departments, and logistics services. The Free Zones contribute significantly to the growth of the re-export market in the UAE.
Procedures for Importing to the UAE
To import goods into the UAE, companies are required to possess a valid trade license. This license can be obtained either from the Department of Economic Development (DED) or from the Free Trade Zones in the UAE. Foreign companies have two options: they can establish a branch office or create a new company within the UAE to conduct their business. Alternatively, they can appoint a UAE National as their agent, distributor, or sponsor to facilitate their business setup in the UAE.
Required Documents for Importing Goods to UAE
To import goods, a UAE-based company (agent) must follow a few steps. First, they need to obtain a delivery order from the shipping agent. Next, they must submit several trade documents to the customs. These documents include:
1. Commercial Invoice: This document, provided by the exporting company, includes consignment details such as quantity and goods description. It also specifies the total value of each imported item.
2. Certificate of Origin: This certificate indicates the country of origin and is approved by the chamber of commerce of the exporting country.
3. Detailed Packaging List: This list includes information about the weight, method of packing, and HS code for each item.
4. Import Code: The company must obtain an import code from the authorities, such as the Port & Customs in the UAE. Special approvals are required for importing restricted goods or duty exempted goods.
Additionally, for importing food products, there are additional permits and documentation required:
1. Original Health Certificate: This certificate is issued by the Government Agency in the exporting country and attests to the product’s fitness for human consumption.
2. Original Halal Slaughter Certificate: For meat and poultry products, an original Halal Slaughter Certificate is required.
To ensure successful importation of goods into the UAE, the company must adhere to the specified procedures and provide the required documentation. Goods intended for re-export will be duly notified to customs using a separate product code and permit letter.
After the imported items arrive in the UAE, they are stored in either designated Customs Warehouses or Free Zone/Mainland Warehouses. Subsequently, they are re-exported to the desired countries by the re-export company.
How to start a Re-Export Business in UAE?
To establish a Re-Export Business, a company must first obtain a trade license from UAE and subsequently apply for an import-export code from the port and customs authorities. In order to effectively manage trade operations for imports and re-exports, it is vital for the company to collaborate with a reliable freight forwarding agent or shipping company. This collaboration ensures the seamless movement of goods to and from the ports of UAE. Throughout the process, various documentation is required, depending on the nature of the re-exports and the goods being transported. It is crucial that the re-exported items are not altered or modified from their original state, as any changes would require specific permits due to customs regulations. The trader must also furnish the necessary certificates to validate the origin and other pertinent details of the products.
Where to Register a Re-Export Company in UAE?
In the UAE, a re-export company can be registered either in the Free Trade Zones or in the mainland. Each jurisdiction offers distinct advantages in terms of operations, logistics, and administration.
For businesses focusing on the GCC and North Africa regions, the UAE mainland is an ideal choice. It provides opportunities to expand into the UAE market with trading units or distribution networks, allowing for large-scale expansion. Investors can easily add branches, retail outlets, warehouse spaces, and hire more staff, while reducing maintenance costs. This seamless expansion potential makes the mainland an attractive option.
However, when it comes to international trade, Free Zones offer the best option. Importing into Free Zones incurs zero customs duty, making it favorable for companies engaged in re-exports. By utilizing a warehouse in a Free Trade Zone, businesses can efficiently manage inventory and coordinate shipping activities.
Overall, businesses in the UAE have the flexibility to choose between Free Trade Zones and the mainland, depending on their specific needs and goals.
Why should you opt for Free Zones for Re-Export instead of the Mainland?
Choosing the Free Trade Zones in UAE for establishing a Re-Export Company offers numerous advantages for investors. The key benefits include 100% foreign ownership and the ability to repatriate full profits. Additionally, the exemption from customs duty on Free Zone imports makes it an appealing option for international trading and re-export companies.
The Free Zones in UAE are well-equipped with state-of-the-art logistics and warehouse facilities, facilitating seamless trade and efficient storage of goods. Most Free Zones also offer in-house Customs clearance, enabling swift entry and exit of goods to and from the Free Zone premises.
Enabling Effortless Re-Exports through Free Zones
The strategic location of the Free Zones in close proximity to major Airports and Seaports of the country facilitates seamless trade operations. Investors gain access to state-of-the-art amenities, including office spaces and warehouse facilities. They can also secure land for manufacturing units and avail administrative services. All this comes at a cost-effective fee from the Free Zones of UAE.
Setting up and operating a company in the Free Zone is a hassle-free process, ideal for startups and new entrepreneurs.
Free Zones in the UAE are an optimal choice for entrepreneurs seeking to establish and manage a Re-Export company. They offer invaluable support for international trade and facilitate market expansion. These zones enable companies to effortlessly engage in the re-exportation of authorized goods. If you’re interested in starting a Re-Export Company in the UAE or obtaining an import-export license, don’t hesitate to connect with our team of experts today!