Dubai And Other Emirates Agree Uniform Customs Tariff

by Lorys Charalambous, Tax-news.com, Cyprus

23 November 2001

A planned customs union in the GCC (Gulf Co-operation Council) area came a step closer to reality recently when the UAE (United Arab Emirates) agreed to align import duties in its seven component countries.

The UAE is planning to set up a federal customs body following the agreement to unify duties and bring them in line with a planned GCC customs tariff. The Emirates have agreed on a compromise five per cent tax on foreign imports following several years of negotiations in line with a landmark economic pact they signed a year after they created a joint economic, political and defence group in 1981.

In a recent meeting, the Cabinet decided to form a joint committee, grouping officials from the ministries of economy and commerce, finance and industry, as well as the customs council to work out the proposal.

"The committee will draft a federal law establishing a unified federal customs authority," it said.

The cabinet took the decision after reviewing a memorandum on the subject by Sheikh Fahim bin Sultan Al Qasimi, UAE Minister of Economy and Commerce, who underlined the need for an autonomous customs body.

The customs union, which could pave the way for the long-sought common Gulf market, will be launched in 2003, two years ahead of schedule.

The common market project will be one of the main topics to be discussed by the GCC heads of state when they hold their summit in Oman in late December.

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