Dubai Customs publishes associated application and declaration forms for the Virtual Stock Guarantee (VSG) facility

Posted on    17 July 2019
Dubai Customs publishes associated application and declaration forms for the Virtual Stock Guarantee (VSG) facility

The Dubai Customs recently published application and declaration forms for the Virtual Stock Guarantee(VSG) facility. VCG is a custom facility that has been introduced with an objective to enable the 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.  

Customs Warehouse holders and Free Zone companies are required to file the following application and declaration forms with Dubai Customs in order to use this facility. 

● 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) 

The client shall also 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. 

Experts say that the facility has been introduced to enhance Dubai’s competitiveness and maintain its leading position, create a favourable, competitive and fascinating business environment, support re-export trade activity from free zones and customs warehouses to external markets, and enhance the emirate’s solid and sustainable economic performance. The facility would also reduce financial and administrative burden and provide liquidity in the local market. 

The companies just need to do is open a New Account Opening Virtual Stock Guarantee. 

However the facility has been introduced with the following terms and conditions: 

1.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. 

2.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. 

3.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. 

4.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. 

5.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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