22 Aug 2019
UAE: 1% Fee Waived on Re-Export Deposit Refund
Companies operating in or trading with the United Arab Emirates (UAE) will no longer have to pay a 1% fee when seeking a refund for the security deposit paid for the value of temporarily imported goods. In future, only the AED50 (US$13.6) fee stipulated by the UAE Cabinet for re-exports will be applied, irrespective of the value of goods.
The waiver was implemented on 28 July 2019 by the Abu Dhabi Executive Council in an official resolution, and is part of its efforts to further promote Abu Dhabi as a leading regional and international hub for commerce and industry. Abu Dhabi is the capital of the UAE and the richest city in the world, but its economy remains extremely reliant on petroleum.
Previously, a 1% fee was levied when refunding security deposits paid for re-exporting goods that had been imported to the UAE on a temporary basis. These typically included goods imported for exhibitions and projects, or goods brought in for assembly, manufacturing or repair.
Re-exporting activity is substantial. Statistics from the UAE Central Bank forecast the continuing growth in the trade of re-exported goods, despite the slowdown in the global economy. The value of this sector reached about US$145.1billion in 2016, rising to US$148.8 billion in 2017, when re-exported goods accounted for 47.4% of the UAE’s total exports in that year.
The trade in re-exported goods has given the UAE economy a competitive advantage over other countries in the Middle East, and promoted its stature as a major player, according to the Emirates News Agency. The agency said that waiving the fee on the re-export deposit refund should further facilitate cross-border trade and enhance the ease and efficiency of doing business in Abu Dhabi.