Answer:
A company registered in DMCC may purchase goods from a foreign supplier and import them into Jebel Ali Port, which is located within the Jebel Ali Free Zone (JAFZA). Since JAFZA is listed as a Designated Zone under Cabinet Decision No. 59 of 2017, pursuant to Articles 50–51 of Federal Decree-Law No. 8 of 2017 on Value Added Tax and Article 51 of Cabinet Decision No. 52 of 2017, the import of goods into its territory is not considered an import into the UAE for VAT purposes.
Provided that the goods remain under customs control and are not released for free circulation, VAT on import is not applied. A sale between DMCC companies is also not subject to VAT if the goods are physically located in JAFZA and intended for subsequent export. The export of goods outside the UAE is subject to a 0% VAT rate, provided the supporting documentation is in place.