Navigating Customs Regulations for Temporary Admission of Goods at Exhibitions, Fairs, Meetings, or Similar Events in the UAE
Transport & Insurance / UAE
The UAE, a hub for global events, has a robust customs framework for temporary goods admission, key for exhibitions and fairs. This includes adhering to the Istanbul Convention and GCC laws, allowing duty exemptions & defining temporary import rules.
Law Update: Issue 367 - Saudi Arabia & Competition Focus
Sakher AlaqailehSenior Counsel,Transport & Insurance
Nazly SadikParalegal,Transport & Insurance
The United Arab Emirates (UAE) has solidified its global position as a hub for exhibitions, fairs, conferences, and significant events, attracting participants from across the world. Enabling the smooth engagement of international exhibitors and contributors, the UAE's comprehensive customs regulations play a pivotal role. A common question we have been asked by various clients participating in exhibitions or conferences, typically of limited duration, is how to import goods for the event, or whether there is a way to avoid paying customs duties, considering that the imported items are intended solely for exhibition purposes. This article delves into the temporary admission of goods for display or use at these events within the UAE's customs framework, shedding light on potential challenges and restrictions that may arise.
In order to ensure the efficacy of procedures and compliance, the UAE has laid down a comprehensive legal framework. This structure, stemming from the Customs Law of 1998 (UAE Custom Laws) and in accordance with the Common Customs Law of the GCC States (GCC Common Customs Law), extends to the endorsement of international agreements, most notably the Istanbul Convention on Temporary Admission (“Istanbul Convention”), as enshrined in Federal Decree No. 59 of 2010. By adhering to this convention, the UAE demonstrates its unwavering dedication to global trade facilitation, providing temporary import goods an exemption from customs duties and taxes. This commitment provides temporary imported goods with exemptions from customs duties and taxes, underscoring the UAE's dedication to fostering economic growth, cultural exchange, and the free flow of ideas, all while adhering to customs regulations.
The Common Customs Law of the GCC States, which includes the UAE, has provisions for temporary admission of goods. Items temporarily imported for playgrounds, theaters, exhibitions, fairs, meetings, or similar events are subject to certain controls and require approval from the organizing entity. The temporary admission of goods is permitted for specific periods, generally six months, renewable for a total of one year, and extension applications can be made 30 days prior to expiry with all relevant documents. The importer must be licensed, and activities aligned with the nature of imported goods. Heavy machinery and equipment for completion of projects or for conducting experiments and tests relating to such projects are permitted for a period of six months renewable for similar periods, which shall not exceed three years at the most unless the completion of the project requires a longer period for the practical or scientific tests from the competent agencies. Foreign goods imported for completion of processing are also permitted for temporary admission for a period not exceeding one year, subject to customs administration approval.
At the heart of comprehending temporary admission lies the fundamental legislative basis it stands upon. This foundation rests upon the Convention on Temporary Admission, often referred to as the Istanbul Convention. Ratified by the Council of the World Customs Organization (WCO) on June 26, 1990, this convention officially came into effect on November 27, 1993, after remaining open for signature until June 30, 1991. This convention defines temporary admission as a customs procedure with specific conditions.
Defining Temporary Admission: The Istanbul Convention outlines "Temporary Admission" in Article 1(a) as a customs process that allows specific goods, including vehicles, to enter a customs territory with a conditional exemption from import duties and taxes, bypassing any economic-related import prohibitions or restrictions. These goods, intended for a particular purpose, must be re-exported within a predetermined timeframe and should remain unchanged, barring normal wear and tear from their usage.
General Rules for Temporary Admission: The convention governs the following set of rules regarding the admission, including:
Goods must remain unaltered
Goods must be easily identifiable
Security requirements may apply
Designated period for re-exportation
Application of import and re-export procedures
Application to Specific Event Types:According to Annex B.1, Article 1 of the Istanbul Convention, "Article 1" refers to the following type of events:Trade, industrial, agricultural, or crafts exhibitions, fairs, shows, or displays
Charitable exhibitions or meetings
Promotional exhibitions or meetings for education, art, sport, culture, religion, tourism, or friendship
Gatherings of international organization representatives
Representative meetings with official or commemorative significance
Eligibility of Goods for Temporary Admission: Goods eligible for temporary admission include those intended for display or demonstration, materials for constructing temporary stands, advertising materials, and equipment for international meetings. The quantity of each item must be reasonable, and customs authorities must be satisfied that conditions will be fulfilled.
Re-Exportation and Identification: As per the Istanbul convention the key aspects of re-exportation and identification include:
Re-exportation within the period of an applicable international carnet
Re-exportation within six months of entry, extendable under exceptional circumstances
Identification through foreign seals, marks, numbers, descriptions, photographs, or sampling
Use of customs and excise marks or seals if identification poses challenges
The ATA Carnet, often referred to as the "Passport for goods", is an international customs document that permits the tax-free and duty-free temporary export and import of nonperishable goods for up to one year The application of the ATA Carnet emerges as a pivotal tool in streamlining temporary import procedures. As an internationally recognized customs document, it facilitates duty-free and tax-free temporary import of goods to a country. The UAE's engagement in the ATA Carnet system benefits businesses and individuals by expediting customs clearance and reducing financial burdens. Serving as a global passport for goods, the ATA Carnet allows duty-free and tax-free temporary import across participating nations.
While the UAE's regulatory framework simplifies temporary import, challenges exist. Businesses seeking temporary admission must provide a cash or bank guarantee equivalent to customs duties before gaining approval. Additionally, imported goods must strictly adhere to their intended purpose and not be sold or disposed of within the UAE. Goods intended for re-export within six months are generally exempt from customs duties. Heavy machinery and equipment for projects or experiments qualify for temporary admission for six months, extendable up to three years based on project requirements.
The UAE's dedication to fostering global cooperation through exhibitions, fairs, and events stands entrenched in a robust legal infrastructure. Understanding the requisites, restrictions, and time limits associated with temporary import is crucial for businesses and individuals engaging in the dynamic event landscape of the UAE. Adhering to these regulations ensures a seamless and compliant journey, facilitating the success of exhibitions, fairs, and events in the UAE.
For further information,please contact Sakher Alaqaileh and Nazly Sadik.
Published in April 2024
