UAE: Voluntary Disclosure Program for Customs in Dubai

Starting July 8, 2024, Dubai Customs has implemented a Voluntary Disclosure System (VDS) under Customs Policy No. (58/2024). This program is designed to enhance compliance, transparency, trust, and participation among businesses and individuals involved in customs activities.

OBJECTIVES AND BENEFITS

The VDS aims to help clients correct past errors in their customs declarations without facing heavy penalties. Based on Article 141 of the Common Customs Law, this initiative allows for partial or full exemption from fines if violations are disclosed voluntarily before being detected by Dubai Customs. The Customs Audit Department will oversee the implementation of the VDS.

APPLICABLE VIOLATIONS

The VDS covers a wide range of customs violations, including:

• Import and export violations

• Customs declaration violations

• Transit violations

• Warehouse violations

• Violations in customs-supervised areas

• Temporary import violations

• Re-export violations

• Other customs-related violations

KEY FEATURES OF THE VDS

• Eligibility:

  • The VDS is open to all registered businesses and individuals involved in import and export activities through Dubai Customs. It allows them to correct any errors or omissions in customs declarations, whether these are identified internally or through audits.

• Submission Process:

  • Businesses must submit their voluntary disclosures via the Dubai Customs portal.

  • Submissions should include details of the error, corrected information, and supporting documentation.

  • A self-audit report outlining discrepancies and corrective measures is also required.

• Duties Settlement:

  • Clients must pay the due customs duties within 30 days of receiving the financial claim notification.

  • Failure to do so will void the request, and Dubai Customs may take further action.

• Waivers:

  • Waivers of customs fines are granted only if the VDS is completed before Dubai Customs discovers the violations.

  • Any undisclosed violations found later will be handled separately by Dubai Customs.

CONCLUSION

Dubai’s VDS is a key tool for promoting transparency and compliance, helping businesses avoid financial penalties and reputational damage. This program aligns with global standards and best practices for customs compliance, supporting the broader objectives of the World Trade Organization (WTO) and the World Customs Organization (WCO).

SUMMARY

• Effective Date: July 8, 2024

• Policy Number: 58/2024

• Objectives: Promote compliance, transparency, trust, and participation

• Coverage: Import/export violations, customs declarations, transit, warehouse, supervised areas, temporary import, re-export, other violations

• Submission: Via Dubai Customs portal with error details, corrected information, supporting documents, and self-audit report

• Duties Settlement: Within 30 days of financial claim notification

• Waivers: Applicable only if disclosed before detection by Dubai Customs

This program highlights Dubai’s dedication to improving customs compliance and integrating best practices in line with international standards.

SOURCE/ RECOMMENDED READ: 

• CN58_2024.pdf (dubaicustoms.gov.ae)