Steps for Successful Export and Re-Export of Goods from the UAE
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The advantages and peculiarities of export and re-export in the UAE lie in a well-established logistics mechanism and broad opportunities to access international markets. Today, the Emirates are a key business hub in the Middle East with an ideal platform for trade relations.
Export and re-export through the UAE are among the popular types of businesses. The state actively supports trade relations with more than 170 countries, encompassing approximately 175 air routes and 120 maritime routes. Therefore, this country is often chosen as an intermediate warehouse. For re-export, it is best to register a company in one of the UAE's free zones. This allows full ownership of the firm and exemption from tax payments.Algorithm
The entire process of export and re-export in the UAE follows a standard algorithm and consists of several steps:
Step 1 – Determine the target market and study the requirements
Business analysis is the most critical step. A well-constructed export strategy will determine the business's development potential and help avoid mistakes at the outset. At the initial stage, it is necessary to:
- identify consumer preferences;
- adapt the product to the local market.
Properly defining the target market will allow you to capture a whole niche of goods, increase sales, reach a specific audience, and establish clear associative links with a particular product.
All business activities in the UAE are governed by clear rules and laws. Understanding them will determine legal possibilities and help take advantage of rights and benefits.
Step 2 – Find a supplier and organize the purchase of goods
The simplest and most convenient way to find a supplier is through the internet. Many consulting agencies from the UAE offer lists of companies by sector of activity. You can independently select the desired company, contact them, and negotiate via email or modern messengers.
However, the most effective and secure way to find a supplier is to turn to a company that provides services for selecting a trading company. Here, there are guarantees and specific obligations when negotiating contractual terms and making purchases.
Step 3 – Agree on terms and conclude a contract
The contract is drawn up in Russian, English, and, if necessary, Arabic. It must include:
- terms of delivery and acceptance of goods;
- rights and obligations of each party;
- unit price of the goods and total contract value;
- payment terms for contractual obligations;
- payment currency;
- supplier guarantees for the goods supplied;
- responsibilities of the parties;
- procedure for amending or terminating the contract;
- information about the parties signing the contract – company name, addresses, telephone numbers, and banking details;
actions of both parties in case of force majeure.
It is important to consider some features and conditions:
- sending goods without a contract can only be done based on an invoice, but it is still better to conclude one;
- for multi-stage contracts, it is worth attaching a delivery specification;
- for export and re-export contracts in the UAE exceeding $78,500, it is necessary to register them through a bank.
Step 4 – Obtain necessary permits and certificates
To understand which documents are required for unhindered import, one should follow the customs rules of the destination country. In any case, the main documents are:
- certificate of origin of the goods according to a specific form;
- document with product information, according to which a unique number (HS code) will be assigned;
- import document (invoice).
In the Emirates, this issue is regulated by the Cooperation Council for the Arab States of the Gulf (GCC). The organization is always open to quality partnerships. Therefore, it actively issues all the necessary certificates and permits required for legal business conduct and trade within its territory.
A Certificate of Conformity (CoC), also necessary for exporting and re-exporting goods from the UAE, is issued by centers accredited by ESMA. Each product has its own licenses.
Step 5 – Complete the export declaration
The export declaration is completed based on the final documents and mode of transport.
- List of documents for completing the export declaration:
- Contractual commitments and specifications – these are the main documents containing all data on the quantity and value of the goods, payment and delivery terms, packaging, and warranties of the parties.
- Transaction passport – if the amount exceeds $78,000. The processing time cannot exceed 15 business days.
- Invoice with details of the seller and buyer. It is important that the information in it duplicates the information from the contract and specification.
Documents for import:
- Packing list. It contains information about the quantity of goods, weight with and without packaging, volume of goods, number of cargo units, and type of packaging.
- Transport document. It should contain information about the shipper, consignee, delivery terms, and cost of goods. For road transport, a CMR – consignment note is issued. For maritime transport, an SWB – bill of lading is issued. For air transport, an AWB – air waybill is issued.
- Payment order.
- Documentation required to determine the HS code and declare the goods.
Filling out the declaration requires special attention. Any mistake can extend the processing time and, as a result, disrupt planned delivery times, delay loading, and increase expenses. Therefore, it is necessary to carefully choose a customs representative.
Step 6 – Determine the logistics route and select a logistics service provider
Transit through the UAE is very commonly used for delivering goods to Russia, North and Latin American countries. There are several transportation options. Air delivery takes 1-5 days and is often used for high-value cargo. For oversized cargo, sea transportation is preferable, although it is significantly cheaper but requires more time, typically 1-2 months.
Choose a logistics service provider based on their actual experience and availability of all necessary resources to manage supply chains. Experience in shipping the specific type of goods you need is desirable.
Step 7 – Ship the goods and track their movement
After the shipment, the logistics company issues a waybill with a unique number. This number allows tracking the path and status of the cargo on the company's website.
Step 8 – Ensure customs clearance of goods at the destination country
Each country has its own rules and duties for importing goods from other states. The type and amount of payments depend entirely on the Harmonized System (HS) code assigned to the goods. For example, much of the goods imported into the UAE are not subject to customs duties or taxes. This provides a significant advantage when re-exporting goods through the Emirates.
Step 9 – Receive payment and close the deal
Once the customs clearance is successful, the cargo is ready for release. It can be removed from the temporary storage warehouse and delivered to the recipient. Close the deal only after receiving full payment.
For many, these steps of export and re-export in the UAE may seem complex and confusing. Lack of knowledge of local laws and language often discourages businessmen. However, it is worth exploring the opportunities provided by the government of the country. To understand all the legal nuances, it is best to consult with specialists.
The Level Consulting agency has years of experience and provides comprehensive support in registering a company in the Emirates. Our managers will explain the specifics of export and re-export in the UAE in detail and find a quick and correct solution for your business.
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