Excise Goods are treated as released from a Designated Zone (“DZ”) and entering into free circulation if they are found to be deficient, there is a shortage in their quantity within a DZ during transfer between DZ’s, or whilst held in a suspension arrangement in accordance with the Customs Legislation.
However, Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal Decree-Law No. 7 of 2017 on Excise Tax, and its amendments (“Executive Regulation”) provides an exception to the general rule, whereby a shortage in the quantity of the Excise Goods that occurs due to the natural characteristics of such goods within a DZ is not considered a release from a DZ in certain situations.
FTA Decision No. 6 of 2025 on the Standards, Controls and Procedures for Dealing with Shortage Within the Designated Zone due to the Natural Characteristics of Excise Goods (“FTA Decision”) set out the standards, controls and procedures for dealing with Natural Shortage within a DZ, effective from 1 July 2025.
This Public Clarification outlines the situations under which Natural Shortage will ...