Legislation Details
- Full Title: Federal Law Imposing Federal Customs Duty on Imports of Tobacco
- Law Type: Federal Law
- Law Number: [No number] of 1981
- Issued Date: 14 Jun 1981
- Effective Date: 14 Jun 1981
- Official Gazette: No. 92
- Sector: Tax
- Status: Active
- Number of Articles: 20
- Chapters/Parts: 0
- Amendments: 2
Summary
This Federal Law imposes a 70% customs duty on the import of tobacco and tobacco products, including cigarettes and cigars, into the United Arab Emirates. The law aims to regulate the import and taxation of tobacco products in the country. It is significant for businesses and individuals involved in the tobacco trade, as it establishes clear customs duties and enforcement mechanisms. The law also allocates the revenue from the tax between the federal and local governments. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 1-3 BIS)
What is the scope and purpose of this law?
The law applies to the import of all tobacco and tobacco products, including cigarettes, cigars, and raw materials, into the UAE. Its purpose is to impose a federal customs duty on these imports to regulate the tobacco trade in the country. The law grants the federal government the authority to collect this tax, in cooperation with local customs departments. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 1, 4)
What are the key definitions under this law?
The law does not provide any specific definitions. It refers to "tobacco and its products including cigarettes, cigars, etc, whether manufactured or raw materials" without further defining these terms. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 1)
What are the main obligations and requirements?
The main obligations under this law are:
- Paying a 70% customs duty: Importers must pay a 70% customs duty on the price of the tobacco products at the port of arrival or on the manufacturing cost if produced in the UAE. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 2)
- Temporary exemption for re-export: Tobacco products imported for the purpose of re-export are temporarily exempted from the duty, provided the importer pays a deposit or provides a bank guarantee and re-exports the goods within one year. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 3)
- Allocation of tax revenue: 50% of the tax revenue is paid to the federal Ministry of Finance and Industry, and the remaining 50% is paid to the local government where the tax was collected or the goods were manufactured. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 3 BIS)
What are the penalties for non-compliance?
The law imposes the following penalties for non-compliance:
- Avoiding or attempting to avoid tax payment: Imprisonment for up to 6 months and/or a fine of twice the applicable tax, plus confiscation of the goods or payment of their value. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 6)
- Other violations: A fine of up to AED 500. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 6)
Which authorities or bodies are responsible for enforcement?
The law empowers the following authorities for enforcement:
- Ministry of Finance and Industry: Responsible for collecting the tax in cooperation with local customs departments. The ministry will also appoint financial controllers at ports to monitor and implement the law. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 4, 3 BIS)
- Local customs departments: Cooperate with the Ministry of Finance and Industry in collecting the tax. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 4)
How does this law interact with other UAE legislation?
The law states that the federal customs duty it imposes is without prejudice to any local customs duties and taxes levied or to be levied in the future, until federal laws on customs unity among the emirates are issued. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 5)
When did this law come into effect?
This law came into effect on the date of its issuance, 14 June 1981, and was published in the Official Gazette No. 92. (Federal Law Imposing Federal Customs Duty on Imports of Tobacco, 1981, Art. 8)
Source Documents
This article analyses Federal Law Imposing Federal Customs Duty on Imports of Tobacco for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.