Customs Compliance: Document Deadlines, Audits, and Public Auction Procedures

Compliance with customs documentation requirements is crucial to avoid penalties and ensure smooth trade operations. This guide covers critical deadlines, audit procedures, and the consequences of non-compliance.

Document Submission Deadlines

Customs declarations documents must be submitted to the designated Customs Office within specific timeframes:

Standard Deadline: Documents must be submitted within 14 days from the date of processing the declaration.

Late Submission Penalty: If documents are not submitted within the 14-day grace period, a Late Fee is imposed for each day of delay, up to a maximum of 90 days.

Non-Compliance Consequences: Failure to submit documents within 90 days triggers further administrative actions, and fines and penalties may be imposed.

Refund Claims: Claims for refund of duty or deposit will not be accepted until the client completes the document submission process as required.

Post Clearance Audit

Dubai Customs conducts post-clearance audits to ensure law compliance:

Scope: All transactions with Dubai Customs may be subject to audit review.

Information Requests: Customs may demand all required information be submitted when deemed necessary to facilitate the audit process.

Record Retention Requirements

Under GCC Customs Law, businesses must maintain records:

Commercial Entities: Companies are bound to keep records of all Customs Declarations for a period of five years from the date of processing the Customs transaction.

Free Zone Companies: For businesses operating in free zones, records must be retained until the closure of their business operations.

Record Types: This includes commercial invoices, packing lists, bills of lading, certificates of origin, permits, and all correspondence related to customs transactions.

Passenger Belongings Declaration

Passengers arriving in Dubai must declare specific items to Customs Officers. Failure to declare constitutes smuggling, punishable by law:

Duty-Free Personal Effects Allowed:

Photo and video cameras with tapes, films, and accessories

Projectors with slides and films

Telescopes and portable music instruments

Radios, CD/DVD players, dictation machines with accessories

Mobile/cellular phones and portable TV sets

Laptops, PCs, and portable calculators

Baby strollers and special needs wheelchairs

Sports equipment

Cash Declaration Requirements

All passengers must declare cash or bearer monetary instruments:

Declaration Threshold: Amounts exceeding AED 60,000 or equivalent in foreign currencies and travelers' cheques must be declared.

Minors: Passengers under 18 years old cannot bring cash exceeding the permissible limit. Excess cash is added to their parent/guardian's allowance if accompanied.

Sale of Goods by Public Auction

Dubai Customs exercises the right to sell certain goods at public auction under GCC Common Customs Law:

Goods Subject to Auction:

Seized perishable goods

Goods in warehouses after expiry of permitted storage period

Un-cleared goods in port terminals and container yards

Unclaimed goods left at Customs offices or warehouses

Confiscated means of transport

Permitted Storage Periods Before Auction:

FCL/General/Bulk Cargo, Vehicles, Road Equipment (by sea), all goods by Air and Land: 3 months

FCL Refrigerated and Dangerous Cargo: 1 month

Passenger goods in Customs Store: 3 months

Auction Process

Dubai Customs announces public auctions and publishes lists of goods for sale. Interested buyers can participate in the auction process according to published procedures.

Proceeds from auctions are applied first to outstanding duties, fees, and storage charges. Any remaining balance may be returned to the original owner if claimed within the specified period.