Tariff-Related and Non-Tariff Based International Trade Barriers in the UAE
The United Arab Emirates is known for its world-class international trade. Hundreds of countries export millions of goods to the UAE. Whether you are a small or a large-scale exporter, you should take into consideration the International Trade Issues Dubai before exporting any goods in the UAE.
Every country follows a particular law for international trade that defines the import and export tariffs. Similarly, the Ministry of Economy in the UAE has prescribed a comprehensive law that governs international trade. So, if you are willing to do international trade in the UAE then you should also be interested in understanding the various tariff-related and non-tariff-based international trade barriers.
What are Tariffs?
“Tariff is a tax that is primarily paid to the government as a duty to import or exports goods. From the availability of a particular good to its final price, tariffs have a crucial impact on international trade”.
Why You Should Be Concerned About Tariffs?
It is one of the key variables that determine the overall business potential within importing or exporting a particular good. These are the duties that must be paid to successfully clear the good from the customs and obtain it lawfully in the country. In different countries, there are different percentages of duties applied to different types of goods due to which the prices of the goods vary in each country.
There are two types of international trade barriers namely, Tariff Based and Non-Tariff Based. Let us now take a look at both of these barriers:
Tariff Based Barriers:
Tariff based barriers are related to the import/export duties that apply to international trade. For example, import duty for most of the goods is 5% except for agricultural and pharmaceutical products in the UAE. Along with that, 50% duty is applied to alcohol and 100% on the various tobacco products.
Along with Tariff based barriers, there are several non-tariff barriers when it comes to imports and exports in the UAE. Based on the country’s international trade policies, certain goods cannot be traded and can be regarded as non-tariff barriers that often appear as one of the major International Trade Issues in Dubai.
Here are the items that you cannot trade in the UAE:
- Goods manufactured in Israel
- Pornographic Literature and Materials
And, here a few items that can be traded but with special licences:
- Alcoholic Beverages
- Agricultural Pesticides
- Methylated and Medicated Spirits
- Methyl Alcohol
- Industrial Alcohol – Denatured
- Ammunition and Explosives
There is a lot more that you will be required by the law in terms of documentation and processing of international trade. Stay with us and keep finding helpful and knowledgeable content related to International Trade Laws in the UAE.