Dubai Customs Officials Speak Out On GCC Customs Union

by Lorys Charalambous, Tax-News.com, Cyprus

11 February 2003

The recently implemented GCC customs union has experienced some teething troubles, but is generally progressing well, according to officials from the Dubai Customs Department.

Speaking to Gulf News Online, Hamad Fadhel Al Mazrouei, director-general of Dubai Customs revealed that:

'We have explained the procedures to companies, especially those in freight forwarding and shipping. I agree some problems might occur, mostly from shipping companies, in other areas, who still cannot comprehend the procedures.'

According to the Gulf news service, despite the fact that the United Arab Emirates and Saudi Arabia are both members of the Gulf Cooperation Council, following the introduction of the customs union on January 1, Saudi customs officials continued to charge shippers who had paid the 5% import duty to the UAE a second 5% at the Kingdom's borders. However, this practice ceased earlier this month.

Reports have suggested that the under-invoicing of IT goods sent by air and sea freight to other Gulf markets has increased, as the GCC rules so far only apply to goods transported by road.

However, speaking to Gulf News Online, an unnamed senior Dubai Customs official stressed that this development could not be blamed on the introduction of the customs union:

'Under-invoicing is a continuous saga which cannot be ended easily...the whole thing has nothing to do with the customs union,' he explained.

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