When importing goods into the UAE, customs duty is charged on the CIF value (Cost + Insurance + Freight). Here is a guide to calculating UAE import customs costs.
UAE Customs Duty Rates
Standard rate: 5% of CIF value. Zero duty: specified goods (medicine, medical equipment, food staples, books, agricultural equipment). Excise goods (additional excise duty on top of customs duty): tobacco products: 100% excise + 50% customs. Carbonated/energy drinks: 50% excise. Sweetened drinks: 50% excise. Alcohol (in permitted emirates): 50% customs duty. Note: UAE is part of the GCC Customs Union — the same tariff applies across all 7 UAE emirates and goods can move freely within the GCC once customs-cleared in one GCC country.
CIF Value Calculation
CIF = Cost of goods (invoice value in USD/EUR/etc.) + Insurance + Freight to UAE port/airport. Example: goods cost USD 10,000, shipped from China. Freight: USD 500. Insurance: USD 50. CIF = USD 10,550 = AED 38,746.75 (at 3.6725 AED/USD). UAE customs duty = AED 38,746.75 × 5% = AED 1,937.34. Total landed cost: AED 38,746.75 + AED 1,937.34 = AED 40,684.09.
Additional Import Costs Beyond Customs Duty
VAT on imports (5%): for UAE VAT-registered businesses importing goods. The customs value (including duty) is subject to 5% VAT. VAT is recoverable on the next VAT return if used for a taxable business purpose. Non-VAT-registered importers: 5% VAT on imports is a sunk cost. Customs clearance agent fee: AED 200–1,000 per shipment depending on complexity. Port handling charges (THC): AED 150–500/tonne for sea freight at Jebel Ali. Storage: AED 50–200/day if goods are not collected within free days (typically 5–7 free days at major UAE ports).