(Article 63 of Federal Decree-Law No. 15 of 2022)
Situation:
The Company imports men's leather shoes, HS code 64035110. Customs value (CIF): 10,000 AED.
What actions are required?
1. Determine the customs duty rate for HS code 64035110.
According to the Unified Customs Tariff for the GCC States, the customs duty for men's leather shoes (HS code 64035110) is 5% of the value of the goods.
2. Calculate the amount of customs duty.
10,000 AED × 5% = 500 AED
3. Calculate the amount of VAT.
(10,000 AED + 500 AED) × 5% = 525 AED
4. Total Payable: 500 AED (Customs Duty) + 525 AED (VAT) = 1,025 AED
Basis:
- Federal Decree-Law No. 8 of 2017
- Federal Decree-Law No. 15 of 2022
Useful to know:
- Keep supporting documents for the customs value, transport, and insurance — they may be required during an audit