The UAE remains one of the most active gateways for Chinese goods entering the wider Middle East, and its cost structure is refreshingly straightforward compared to some neighboring markets.
In this guide: the standard duty and VAT rates, a worked cost example, and how free zones change the calculation.
Standard Rates
| Cost Component | Rate | Calculated On |
|---|---|---|
| Customs Duty | 5% (standard) | CIF value |
| VAT | 5% | CIF value + duty |
| Free zone (e.g. Jebel Ali) | Duty suspended | Until goods enter mainland market |
There is no special "China-specific" tariff; goods from China are treated the same as goods from most other trading partners, because the UAE does not currently have a free trade agreement with China that lowers the standard 5% rate.
Worked Example
On a shipment with a CIF value of $10,000:
- Customs duty (5%): $500
- VAT (5% of $10,500): $525
- Total duty + VAT: ~$1,025 (roughly 10% of CIF value)
Add port handling and clearance fees on top for your true landed cost.
Free Zones Change the Math
If goods enter and remain within a UAE free zone such as Jebel Ali, customs duty is suspended until the goods actually cross into the mainland market. This makes free zones attractive for businesses re-exporting goods elsewhere in the region rather than selling entirely within the UAE.
Recovering VAT
VAT-registered UAE businesses can usually reclaim import VAT through their regular VAT return, making it more of a cash-flow timing issue than a true added cost for registered companies.
FAQ
Is UAE import duty always 5%?
5% is the standard rate for most HS codes under the GCC Common External Tariff. A small number of categories — tobacco, alcohol — carry much higher rates, and some essentials are duty-exempt.
Do I pay duty on goods held in a UAE free zone?
No — duty is suspended while goods remain in the free zone and only becomes payable once goods enter the UAE mainland market.
Can I reclaim the 5% VAT I pay on imports?
If your business is VAT-registered in the UAE, yes — typically through your standard VAT return, though it remains a cash-flow item until reclaimed.
Calculate Your Real Landed Cost with Keerki Limited
Keerki Limited helps clients importing into the UAE calculate realistic landed costs before committing to an order, and advises on whether a free zone strategy makes sense for your business model. Contact our team for a cost breakdown on your specific product.
