In an effort to promote transparency and encourage compliance, Dubai Customs has issued Customs Policy No. (58/2024) on the Voluntary Disclosure System for businesses registered with Dubai Customs. This system allows businesses, to correct customs errors and violations on their own initiative (suo-motu), potentially benefiting from full or partial penalty waivers.
Below are the key points for businesses to note:
- Objective:
- Encourage businesses to self-report customs compliance errors.
- Implement new streamlined rules to promote good customs practices.
- Types of violations covered under the disclosure:
- Import and export violations
- Customs declaration violations
- Transit violations
- Warehouse violations
- Violations in areas supervised by customs
- Temporary import violations
- Re-export violations
- Any other customs violation
- Submission process:
- Submit requests electronically via Dubai Customs or Dubai Trade systems.
- Include supporting documents and records of the error.
- Settle any due customs duties within 30 days of approval.
- Benefits:
- Potential partial or full exemption from penalties.
- Promote transparency and trust between businesses and Dubai Customs.
- Restrictions:
- Not accepted for businesses under post-clearance audits or active investigations.
READ THE FULL NOTIFICATION HERE
Action required
Businesses are advised to proactively review their historical customs compliance and identify any shortcomings to rectify discovered errors or violations.
One best practice we emphasize for businesses is to conduct a diagnostic review of their customs compliance and historic filings. This aims to benefit from potential penalty waivers in the event of any identified errors and provides an opportunity to revisit the supply chain model to achieve both operational and cost efficiency.
Originally Published 26 July 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.