Good News: Dubai Customs offers 80% discount on fines

Dubai - Step taken to ease burden on businesses amid the pandemic

By Staff Reporter

Published: Sat 5 Dec 2020, 8:57 AM

Last updated: Sat 5 Dec 2020, 8:58 AM

The Dubai Customs has launched an initiative offering 80 per cent discount on fines in customs cases and violations detected or committed before March 31. The move is part of the economic stimulus package announced by the Government of Dubai to alleviate the burden on businesses and help them navigate the challenges of Covid-19 pandemic.

The decision applies to uncollected customs fines imposed by a judicial judgment as well as the customs fines that have been paid in instalments, where reduction will apply to the remaining instalments, which will be rescheduled. The cases under execution at Dubai Courts will also benefit from the applicable fine reduction on the remaining payable amounts.

To avail of these fine reductions, businesses and individuals should first settle their customs cases and pay any charges due, including customs duties resulting from the case, if due, before December 31, 2021.

“The latest move will give a new impetus to the government’s stimulus package measures towards easing the impact of Covid-19 circumstances on the national economy and ensuring uninterrupted business continuity,” said Ahmed Mahboob Musabih, Director-General of Dubai Customs.

Musabih added: “Besides the reduction of customs fines, the trade sector has already benefited from several key incentive measures, including a 20 per cent refund of the customs duty paid for goods imported and sold locally in the UAE that are subject to the 5 per cent standard customs duty rate, refund or cancellation of the Dh50,000 bank or cash guarantee for customs brokers and clearing companies, and exemption from berthing service fees and loading fees at Dubai Creek and Hamriyah Port on traditional wooden commercial vessels. The stimulus package also includes cancellation of bank guarantees required to be submitted before resolution of customs-related grievances, and cancellation of 25 per cent down payment required for requesting instalment-based payment of government fees for obtaining and renewing licences.”

Mansoor AlMalik, executive director for Policies and Legislation, lauded the government incentives, which significantly boosted the local economic performance. “A study revealed that there are currently more than 500 companies that meet the conditions of the announced fine reduction,” he said.

Eligible businesses are required to submit an online application with all relevant information specified in the Customs Notice No. 07/2020, explained Al Malik, adding that such facilities will give a much-needed support for businesses to overcome the current challenges.

More news from