Abu Dhabi to scrap customs duty for industrial imports
Exemption will take effect from January 15 as part of economic stimulus
Industrial products and materials shipped into Abu Dhabi will be exempt from customs tax from January 15, officials said.
The exempted imports include raw material, machinery, equipment and spare parts, according to the Abu Dhabi Department of Economic Development and the General Administration of Customs.
The move is part of strategic initiatives form Abu Dhabi Government’s three-year Dh50 billion stimulus package for the emirate, unveiled in June.
The exemption announcement, carried on state-run news agency Wam, did not specify to which projects the bulk of Abu Dhabi industrial imports are headed.
The capital city has several industrial free zones, including Khalifa Industrial Zone (Kizad) and Khalifa Port Free Trade Zone, generating demand for machinery and supplies, as well as the oil refineries operated by Abu Dhabi National Oil Company.
There is also a significant amount of construction activity taking place across the capital city and in the nearby emirate of Dubai – particularly in the run-up to mega-event Expo 2020 Dubai.
The tax exemption will be co-ordinated through the imports beneficiaries’ annual balance systems run by the General Administration of Customs in Abu Dhabi and the Industrial Development Bureau at the Department of Economic Development, Wam reported.
Some exemptions have already been permitted in the past, according to Ali Al Humami, director of the Industrial Organisation Department at the department.
In 2017, the bureau exempted 26,000 customs transactions for industrial inputs with a total value of Dh1.5bn, from paying duties, he said.
Updated: December 27, 2018 08:19 PM