Dubai Customs has issued a license for Global Shipping and Logistics (GSL) as the first Public Customs Warehouse Operator, in line with the customs procedure specified by the Common Customs Law of the GCC States for depositing imported goods by companies under customs control without payment of customs duties until sold in the local market or re-exported outside the country. These goods are subject to a bank or cash guarantee against the payable customs duties or any fees or other service charges, including fines if applicable to the deposited goods.
There are two types of customs warehouses namely: private customs warehouses and public customs warehouses.
The license was handed over at the Dubai Customs main building in the presence of Mr. Yousef Al Sahlawi, Senior Executive Director of Corporate Affairs; Khalid Al Sherawi, Chief Executive Officer of Global Shipping & Logistics; and a number of department directors at Dubai Customs.
Commenting on the issuance of the license, Mr. Sahlawi said that the services offered by GSL are in the field of shipping, clearing and warehousing operations.
“We are pleased to have GSL as the first Public Customs Warehouse Licensee, to accept goods deposited by other companies,” said Mr. Al Sahlawi.
GSL is the first-of-its-kind company to be licensed for Public Customs Warehouses System. The number of customs warehouses is expected to increase as Dubai Customs introduces the service within the business and logistics community and creates awareness about the benefits that customs warehouse operators may gain.
The Traders, shipping companies, auto agencies and import and export companies may benefit from both types of customs warehouses and submit online applications for a customs warehouse registration and license via the Dubai Trade Portal or Dubai Customs website. The licensing process will not exceed five business days subject to the required conditions.
There are 19 private customs warehouse licensees, while the number of processed customs warehouse declarations has reached 5,397 during the first quarter of 2012, collectively worth around AED 2 billion.
Dubai Customs earlier conducted an introductory workshop on customs warehouses for 100 import, export and re-export companies operating in the UAE. The workshop was organized as part of a series of workshops that focus on procedures for obtaining licenses to establish customs warehouses, and benefits provided by these warehouses.
“Such procedures are carried out under customs supervision through the Customs Warehouse Electronic Inventory. It is also conducted to validate the contents of consignments based on the customs warehouse declaration prepared for the deposited goods and the customs warehouse exit declaration for goods taken out from the warehouses as per the required customs procedure (for the local market, re-export or depositing in free zones),” said Mr. Al Sahlawi.
“Customs warehouses are important for Dubai Customs as they facilitate supervision over deposited goods where Dubai Customs may reconcile the imported goods with those being re-exported outside the country together with their role in generating revenue,” he added.
The licensing and renewal of private warehouse license fees are AED 25,000 and public customs warehouses fees are AED150,000. Wider expansion in these warehouses will boost import activities because it helps traders clear their goods at the customs ports without paying direct customs duties. It also allows them to store their goods in the customs warehouses for a period of two years subject to extending it for a third year until it is made available for local consumption or re-exported outside the country. This is in addition to many other benefits that owners of a warehouse can enjoy. Some of these benefits include discharging of goods in phases, e.g. promotion and transfer of goods during festivals and certain seasons. The warehouses also reduce the loss for traders that they may incur due to the absence of cash guarantee in the event of failure to re-export the goods within the legal grace period (6 months) in the case of goods imported for re-exportation. It also helps importers to take samples from their deposited goods to display in markets.
On his part, Khalid Al Sherawi, Chief Executive Officer of Global Shipping & Logistics, expressed his gratitude to Dubai Customs for entrusting GSL and naming it the first logistics company to operate the Public Customs Warehouses System in Dubai. This accreditation places GSL among the leading logistics companies who are satisfying the increasing supply requirements through consolidating their trade presence in the region.
“Since its inception in 1975 as a shipping agent, GSL has been keen on strengthening the relations with the trade community and Dubai Customs,” Mr. Al Sherawi added.
“GSL is a part of Al Sherawi Group, providing a series of high quality solutions to all its clients at the national and international levels by setting up chilled warehouses and others at different temperatures together with shipping management of shipping, distribution and packing requirements,” he pointed out.