UAE Import Duty & Landed Cost Calculator
CIF, customs duty, excise and the VAT that sits on top of the duty — the full landed cost, in the order customs actually applies it.
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General guidance based on the GCC Common Customs Law and Federal Decree-Law No. 8 of 2017 — not customs, tax or classification advice. It does not model anti-dumping duties, preferential rates under free trade agreements, temporary admission, or emirate-specific handling of low-value consignments. Your actual liability depends on the HS classification and origin of the goods. Confirm with a licensed clearing agent or UAE Customs.
The order the charges are applied
This sequence is where most landed-cost estimates go wrong. VAT is charged on the duty-inclusive value, so the duty itself is taxed. On a standard 5% duty item the combined burden is about 10.25%, not 10%.
| Step | Base | Rate |
|---|---|---|
| 1. CIF value | Goods + insurance + freight | — |
| 2. Customs duty | CIF | 5% standard |
| 3. Excise tax | CIF | 50% or 100%, if applicable |
| 4. Import VAT | CIF + duty + excise | 5% |
Free zones defer, they do not exempt
Goods landed in a designated zone sit outside the UAE customs territory, so duty and import VAT are suspended for as long as they stay there. That makes free zones genuinely useful for storage, consolidation and re-export. But the charges do not disappear — they fall due in full the moment the goods cross into the mainland, on the same CIF value. Budgeting as though free zone means duty-free is a common and expensive mistake.
Declare the full CIF
Customs values a shipment on its delivered cost, not the invoice price. Omitting freight and insurance from the declared value is treated as undervaluation, and fines can reach the full value of the duty involved alongside seizure and clearance delays. The few hundred dirhams saved by understating freight is never worth it.
What this tool does not model
- Anti-dumping duties — applied to goods such as car batteries, ceramic tiles and hydraulic cement, reaching 67.5% of CIF in some cases. They depend on both HS code and country of origin.
- Preferential rates under free trade agreements, which can reduce duty to zero for qualifying origin.
- Temporary admission and re-export reliefs, where duty is refundable.
- Emirate-specific low-value handling — Dubai generally applies AED 300 and Abu Dhabi AED 1,000, with different treatment for express carriers.
Frequently Asked Questions
How is UAE customs duty calculated?
Duty is charged at 5% of the CIF value for most goods, where CIF means the cost of the goods plus insurance plus freight to the UAE port of entry. Leaving freight and insurance out of the declared value is one of the most common causes of penalties for undervaluation, because customs values the shipment on the delivered cost rather than the invoice price alone.
Why is my VAT higher than 5% of the goods value?
Because import VAT is charged on the duty-inclusive value, not on the bare CIF. The calculation runs CIF, then customs duty, then excise if it applies, and only then 5% VAT on the total of all three. The practical effect is that you pay VAT on the duty as well as on the goods, which is why the combined burden on a standard 5% duty item works out at roughly 10.25% rather than 10%.
Do free zone companies pay import duty?
Not while the goods stay in the zone. A designated free zone sits outside the UAE customs territory, so duty and import VAT are suspended rather than cancelled. The moment the goods move into the mainland the full amount falls due. Free zones are genuinely useful for storage and re-export, but treating the suspension as a permanent exemption is how importers get an unexpected bill.
Which goods attract more than 5% duty?
Alcohol is charged at 50% of CIF and tobacco at 100%. Separately from customs duty, excise tax applies to tobacco products, energy drinks and electronic smoking devices at 100%, and to carbonated and sweetened drinks at 50%. Some goods also carry anti-dumping duties depending on their HS code and country of origin, which in certain cases reach 67.5% of CIF.
Can I recover the import VAT?
If your business is VAT registered, import VAT is generally self-accounted on your VAT return through the reverse charge mechanism rather than paid at the border, and it is recoverable as input tax to the extent your supplies are taxable. If you are not registered, the VAT is payable at clearance and becomes a real cost. Customs duty is never recoverable either way, so it is a permanent addition to your landed cost.
Is there a minimum value below which nothing is charged?
There is a low-value shipment threshold, but it varies by emirate rather than applying uniformly. Dubai generally uses AED 300 and Abu Dhabi AED 1,000. Treatment also differs between express courier shipments and ordinary sea or air freight, and every shipment still requires an accurate declaration regardless of value, so the threshold affects what is collected rather than whether you must declare.
What happens if I use the wrong HS code?
An incorrect classification changes the duty rate, which means either underpaying and facing penalties or overpaying and rarely noticing. The GCC moved to twelve-digit HS codes from January 2025, so older six or eight-digit references are no longer sufficient. Fines for customs violations can reach the full value of the duty involved, alongside seizure and clearance delays, so it is worth confirming the code with a licensed clearing agent rather than guessing.
Need the HS code confirmed before you ship?
The duty rate depends entirely on getting the 12-digit classification and origin right, and a wrong code means penalties or overpayment you never notice. Browse UAE customs clearing agents and documents clearing services.