How to Calculate Dubai Import Duties: Complete Guide with Calculator

Introduction

Before importing goods to Dubai, you need to know exactly how much you'll pay in duties and taxes. Getting this wrong can wreck your profit margins or cause customs clearance delays.

This guide explains the complete Dubai import duty calculation process, from determining your CIF value to calculating total landed costs. Plus, use our free calculator to get instant estimates.

**What You'll Pay When Importing:**

- Customs duty (typically 5%)

- VAT (5%)

- Possibly excise tax (for certain products)

- Local charges (DO fees, handling, etc.)

The Duty Calculation Formula

Dubai import duties are calculated using this formula:

**Basic Calculation:**

```

Customs Duty = CIF Value × Duty Rate

VAT = (CIF Value + Customs Duty) × 5%

Total Tax = Customs Duty + VAT

```

**With Excise Tax (for applicable products):**

```

Excise Tax = CIF Value × Excise Rate

VAT = (CIF Value + Customs Duty + Excise Tax) × 5%

Total Tax = Customs Duty + Excise Tax + VAT

```

**Key Point:** The tax base for VAT includes all previous duties and taxes. This means you pay VAT on your duty, not just on the goods value.

Understanding CIF Value

CIF (Cost, Insurance, Freight) is the basis for all Dubai customs calculations.

**CIF Components:**

- **C - Cost:** The price paid for the goods (from commercial invoice)

- **I - Insurance:** Cost of cargo insurance

- **F - Freight:** Shipping cost to Dubai port

**CIF Calculation:**

```

CIF = Product Cost + Insurance + Freight

```

**Example:**

- Product cost (FOB): USD 10,000

- Freight to Dubai: USD 800

- Insurance (0.5% of value): USD 54

- CIF Value: USD 10,854

**Important Notes:**

- Always use CIF, not FOB (Free on Board)

- Include ALL costs to get goods to Dubai port

- Use the actual insurance cost, or if self-insured, calculate at standard rate

**Common CIF Mistakes:**

- Using FOB value (forgetting freight and insurance)

- Not including inland freight to origin port

- Omitting insurance cost

- Using wrong currency conversion rate

Customs Duty Rates

**Standard Rate:** 5%

Most goods imported into the UAE are subject to 5% customs duty. This applies to:

- Consumer goods

- Electronics

- Machinery

- Textiles

- Food products

- Most manufactured goods

**0% Duty Categories:**

- Goods from GCC countries (with certificate of origin)

- Certain essential items

- Raw materials for manufacturing (some categories)

- Diplomatic imports

- Some agricultural inputs

**Higher Duty Categories:**

While rare, some products may have different rates. Always verify with the actual HS code.

**How to Find Your Duty Rate:**

1. Determine correct HS code using [AI HS Search](/ai-hs-search)

2. Look up rate in UAE customs tariff

3. Or use our [Duty Calculator](/calculator) which has rates built-in

**Rate Determination:**

The duty rate is determined by the HS code, not the product name. Same product from different countries pays the same rate (unless FTA applies).

VAT (Value Added Tax)

**UAE VAT Rate:** 5%

**VAT Calculation Base:**

VAT is calculated on: CIF Value + Customs Duty (+ Excise Tax if applicable)

**Formula:**

```

VAT = (CIF + Customs Duty + Excise) × 5%

```

**Example:**

- CIF Value: AED 10,000

- Customs Duty (5%): AED 500

- VAT Base: AED 10,500

- VAT (5%): AED 525

**VAT Recovery:**

- Businesses registered for VAT can recover import VAT

- Individual/personal imports: VAT is final cost

- Free zone companies: Different rules apply

**VAT on Services:**

In addition to import VAT, you'll pay VAT on:

- Customs broker fees

- Freight forwarding services

- Inspection services

- Warehouse charges

Excise Tax (Selective Tax)

Some products attract excise tax IN ADDITION to customs duty:

**100% Excise Tax:**

- Tobacco and tobacco products

- Energy drinks

- Electronic smoking devices

- Liquids used in e-cigarettes

**50% Excise Tax:**

- Carbonated drinks (soft drinks)

- Sweetened drinks

**Excise Calculation:**

```

Excise Tax = CIF Value × Excise Rate

```

**Example - Energy Drinks:**

- CIF Value: AED 10,000

- Customs Duty (5%): AED 500

- Excise Tax (100%): AED 10,000

- VAT Base: AED 20,500

- VAT (5%): AED 1,025

- **Total Tax: AED 11,525** (115% of CIF)

**Important:** Excise tax significantly increases import costs. Factor this into product pricing!

Complete Calculation Examples

**Example 1: Standard Electronics Import**

Product: Laptop computers

CIF Value: AED 50,000

HS Code: 847130100000

Duty Rate: 5%

Calculation:

- Customs Duty: 50,000 × 5% = AED 2,500

- VAT Base: 50,000 + 2,500 = AED 52,500

- VAT: 52,500 × 5% = AED 2,625

- **Total Duty + VAT: AED 5,125**

- **Landed Cost: AED 55,125**

---

**Example 2: Soft Drinks Import (with Excise)**

Product: Carbonated soft drinks

CIF Value: AED 20,000

Duty Rate: 5%

Excise Rate: 50%

Calculation:

- Customs Duty: 20,000 × 5% = AED 1,000

- Excise Tax: 20,000 × 50% = AED 10,000

- VAT Base: 20,000 + 1,000 + 10,000 = AED 31,000

- VAT: 31,000 × 5% = AED 1,550

- **Total Tax: AED 12,550**

- **Landed Cost: AED 32,550** (62.75% markup)

---

**Example 3: GCC Origin Goods**

Product: Furniture from Saudi Arabia

CIF Value: AED 30,000

Certificate of Origin: Valid GCC certificate

Duty Rate: 0% (GCC exemption)

Calculation:

- Customs Duty: AED 0 (exempt)

- VAT Base: AED 30,000

- VAT: 30,000 × 5% = AED 1,500

- **Total Tax: AED 1,500**

- **Landed Cost: AED 31,500**

Additional Import Costs

Beyond duties and VAT, budget for these costs:

**Customs Processing:**

- Customs broker fee: AED 300-800 per declaration

- Customs inspection fee: AED 150-300 (if inspected)

- Declaration amendment fee: AED 200-500

**Port Charges (Jebel Ali):**

- Delivery Order (DO): AED 250-550

- Terminal Handling (THC): AED 700-1,200 per container

- Storage (if applicable): AED 20-50 per W/M per day

**For detailed local charges, see our [Dubai Local Charges Guide](/blog/dubai-local-charges-guide-2024-2025)**

**Transport:**

- Port to warehouse: AED 500-1,500 per container

**Total Import Cost Estimate:**

For a standard FCL import, total costs typically add 10-15% to CIF value:

- 5% customs duty

- 5.25% VAT (on CIF + duty)

- 2-5% other fees and charges

Free Zone vs Mainland Import

**Importing to Free Zone:**

- Customs Duty: 0%

- VAT: 0%

- Benefit: No duties while goods remain in free zone

**Importing to Mainland:**

- Customs Duty: 5% (standard)

- VAT: 5%

- Full clearance required

**Moving from Free Zone to Mainland:**

- Treated as import

- Full duties and VAT apply

- Must clear customs

**Strategy Consideration:**

- Re-export business: Free zone saves all duties

- Domestic sales: Duties will be paid eventually

- Mixed use: Calculate based on proportion sold locally

**Use our [Duty Calculator](/calculator) to compare scenarios.**

Currency Conversion

**Currency for Customs:**

- All duties calculated in AED

- CIF may be in foreign currency

- Convert using Dubai Customs exchange rate

**Exchange Rate Source:**

Dubai Customs publishes daily exchange rates. Use the rate valid on the date of declaration.

**Conversion Example:**

- Invoice: USD 10,000

- Exchange rate: 1 USD = 3.67 AED

- CIF in AED: 36,700 AED

- Duty calculated on: 36,700 AED

**Common Currency Mistakes:**

- Using bank rate instead of customs rate

- Using rate from wrong date

- Not converting freight/insurance

**Tip:** Get the official customs exchange rate before calculating.

Using the Duty Calculator

Our free [Duty Calculator](/calculator) makes this easy:

**Step 1: Enter Product Information**

- Select or enter HS code

- Enter product description (optional)

**Step 2: Enter Values**

- Product cost (FOB or CIF)

- Freight cost (if FOB)

- Insurance cost (or use estimate)

**Step 3: Get Results**

- CIF value (calculated)

- Customs duty amount

- VAT amount

- Excise tax (if applicable)

- Total import cost

**Calculator Features:**

- Auto-looks up duty rates from HS code

- Includes excise for applicable products

- Shows breakdown of all costs

- Compare free zone vs mainland

**[Try the Calculator Now](/calculator)**

Conclusion

Calculating Dubai import duties is straightforward once you understand the formula: CIF value → Customs Duty → VAT → Total. The key is getting your CIF value right and knowing your duty rate.

**Key Formulas:**

- Customs Duty = CIF × Rate (usually 5%)

- VAT = (CIF + Duty + Excise) × 5%

- Total Cost = CIF + Duty + VAT + Fees

**Remember:**

- Always use CIF, not FOB

- VAT is calculated on the duty-inclusive amount

- Excise tax applies to beverages, tobacco, energy drinks

- Free zones defer duties until goods enter mainland

- Budget 10-15% of CIF for total import costs

**Tools to Help:**

- [Duty Calculator](/calculator) - Instant cost estimates

- [AI HS Code Search](/ai-hs-search) - Find your duty rate

- [Flat File Converter](/convert) - Prepare declarations

**Calculate your import costs now with our free [Duty Calculator](/calculator).**