Why is the Import/Export License Essential for Your Business?

by commitbizadmin 01, Aug 2019

Why is the Import/Export License Essential for Your Business?

Dubai is a hub for all the businesses in the UAE. UAE has increased rate of import and export business. UAE is the primary holder of crude-oil and petroleum refineries in the world. UAE stands as 32nd largest exporter on a global scale. UAE also imports on a large scale; one of the most imported goods in the United Arab Emirates is machinery and equipment. Food products are imported on a large scale in the Emirates. With their economic diversification plan, UAE has successfully attracted a large number of entrepreneurs and investors to set up business in the Emirates.

Import and Export in UAE

Import means to purchase goods from outside the borders of the UAE or any other foreign country or other provinces of the Emirate. Exporting of goods means producing goods in the UAE and exporting them to other foreign countries or any country outside the borders of the UAE. The United Arab Emirate is partnered with a total of 32 countries globally. The UAE is ranked 25th largest importer in the world. The import and export business accounts to the most number of raise in the GDP of the UAE. 

According to the Economic Complexity Index (ECI), UAE is ranked 54th position. With the easy and accessible connectivity around the globe, UAE has a large market for import and export. In the past few years, the import and export business has been in the most profitable spot. There are many services provided by the government for the operation of import and export trade in the UAE.

The United Arab Emirates have continuously carried the trade business. The government has implemented various plans for the benefit of the trade and commerce business in the UAE. There are multiple trading and shipping ports in the UA, making it a perfect Strategic location to set up an Import and Export trade business.

Major export products of the UAE

  • Crude oil.
  • Petroleum.
  • Metals like aluminium and copper.
  • Diamond, gold and many pearl products.
  • Passenger and cargo ships.
  • Base metals.
  • Jewellery.
  • Plastic and rubber products.
  • Wood products.
  • Food products like raw sugar.

These are some of the significant exporting products from the UAE. According to the reports in 2017, the UAE government exported 142 billion$. These export industry works and accounts on a large scale as to the increase in the GDP of the Emirates. One of the major export partners of the Emirates is India, Singapore, Iran, Japan, South Korea, Thailand.

Major Import Products of the UAE

  • Automobiles.
  • Various types of transport equipment.
  • Broadcasting equipment.
  • Media equipment.
  • Vehicles like cars.
  • Food products.
  • Textiles and metals.
  • Cotton and fabrics.
  • Instruments.
  • Plastic products.
  • Gold and jewellery.
  • Footwear and clothing.
  • Leather.
  • Alcoholic beverages.
  •  Chemicals such as organic chemicals.

These are some of the significant imported products in the UAE. Many companies import these products throughout the Emirates. According to the reports of 2017, the UAE has imported around 175 billion$ globally. Some of the significant importing partners of the UAE are Japan, China, Germany, United States and India.

Import and Export Business License

Setting up of any business company in the UAE requires various documentation and approvals from the specified authorities. Import and export business in the UAE is one of the high growth sectors. Increase in the number of business companies and investors are investing in this sector of the country. With its high connectivity, it makes the UAE, eye-candy for all the budding entrepreneurs.

For dealing with any import and export business in the UAE, you have to take permission from the Customs registration. When you set up your business in any free zone of the UAE, you don’t have to pay any customs duty as it does not come under the customs territory of the UAE. The most important part of starting up a trade export and import business company is to obtain an import and export trade license from the UAE license Issuing Authority. A valid registration must be done with the customs registration. Without valid consent, you cannot proceed with your import and export business in the UAE.

Know-how of Import and Export Business License

  • Import and export business license gives validity to your Import and Export trade business.
  • The import and export license shall be authorised and issued by the respective emirate where the trade is carried out.
  • Permission from custom registration is mandatory with the approval of the license.
  • The license will be approved by the Department of Economic Development (DED).
  • A  trader with the approval of the license shall obtain import and export custom codes.
  • This license gives you the authority to trade business in the UAE.

To start a business in the UAE, you need to obtain the import and export license. The procedure to obtain an import and export license is quite handy and straightforward. If you are looking for setting up a trade business and getting an import and export license, our advisors are here to help you. We at commitbiz help you set up your company in a hassle free way. Contact us- we are here to help.