1. What is Virtual Stock Guarantee facility?
It is a customs facility that enables Dubai-based free zone companies and customs warehouses to clear goods at re-exportation from free zones/customs warehouses through sea and air ports of exit in the emirate of Dubai only or through the UAE’s land ports of exit to the ROW. The client shall sign an undertaking in lieu of cash, bank or personal guarantees to consider the company’s stock as a guarantee for any customs duty that may be accrued on goods re-exported by licensed free zone companies operating in Dubai.
2. Objectives of the facility
- Promote Dubai’s competitiveness and maintain its leading position
- Create a favourable and attractive business environment
- Support re-export trade activity from free zones and customs warehouses to external markets
- Enhance the emirate’s solid and sustainable economic performance
3. Who may use it
- Companies licensed by respective free zone authority in Dubai and registered with Dubai Customs under a business code
- Companies owning public/private customs warehouses licensed by Dubai Customs
4. What are the benefits
- Reduce financial and administrative burden
- Provide liquidity in local market
5. Steps to register for the facility
- New Account Opening Virtual Stock Guarantee
. Forms
- Application for Virtual Stock Guarantee Facility for Public and Private Customs Warehouses Registered and Licensed in the Emirates of Dubai
- Application for Virtual Stock Guarantee Facility for Free Zone Companies Registered and Licensed in the Emirates of Dubai
- Declaration and Undertaking for Using Virtual Stock Guarantee Facility (Customs Warehouses)
- Declaration and Undertaking for Using Virtual Stock Guarantee Facility (Free Zone Companies)
6. Terms and conditions
- The facility is exclusively used as a guarantee for customs duty when re-exporting goods from free zones / customs warehouses through sea and air ports of exit in Dubai only and the UAE’s land ports of exit to the ROW.
- Free zone companies should submit application for Virtual Stock Guarantee facility duly signed and approved by the respective free zone authority, along with the undertaking form to use the facility signed and stamped by the applicant company.
- Customs warehouse companies should submit application for Virtual Stock Guarantee facility for Public and Private Customs Warehouses, along with the undertaking form to use the facility duly signed by the applicant and approved by Dubai Customs.
- Companies using the facility are still required to submit customs declaration, customs inspection and entry/exit certificate after re-exporting goods and moving them out of the free zones and customs warehouses to the ROW.
- The facility excludes shipments of alcoholic beverages, tobacco and its derivatives, including cigarettes, when re-exported from free zones and customs warehouses.
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