How Customs Duty Is Calculated in the UAE in 2026: 5% on CIF, Import VAT and a Landed Cost Calculator

UAE customs duty on most goods is 5% of the CIF value, which means cost of goods plus insurance plus freight to the point of entry. Dubai Customs publishes 5% of CIF as the rate, with alcohol at 50% and cigarettes and tobacco at 100%. The Customs Union for the GCC states the common tariff as 5% on foreign goods from outside the Union. Import VAT of 5% is added on top, on a base that already includes the duty. This page shows the arithmetic, the fees, and a calculator you can edit.

How is customs duty calculated in the UAE?

Duty is a percentage of the customs value. Dubai Customs says the customs value of imported goods is based on CIF, and that the principal valuation method is the transaction value, which is the price actually paid or payable.

The calculation runs in four steps:

1. Add the goods price, the freight to the UAE and the insurance. That is the CIF value.
2. Multiply the CIF value by the duty rate for your HS code. The common rate is 5%.
3. Add the duty to the CIF value. That is the VAT base. The FTA says import VAT is calculated on the value of the goods inclusive of any customs duty and excise tax due. The UAE VAT rate is 5%.
4. Add the declaration fees your emirate charges.

Two points trip sellers up. First, your supplier's invoice is not the CIF value unless the price already includes freight and insurance. Second, the rate depends on the HS code, so a wrong code changes the duty. The GCC list has 417 goods exempt under an approved schedule, and some trade agreements cut the rate to zero. For the Turkey case, read importing from Turkey to the UAE.

Which fees does Dubai add to the duty?

Dubai Customs publishes these figures in its services guide, as of October 2026.

The guide gives an overall range of AED 15 to AED 100 for import declarations depending on type and channel. Other emirates publish their own fees, and this page does not cover them. Broker, freight, port and storage charges are separate and Dubai Customs does not publish them; see customs broker fees for UAE sellers.

Customs duty calculator

Defaults come from the figures above: 5% duty, 5% VAT, a AED 70 declaration fee and a AED 20 Knowledge and Innovation fee. Every value is editable. Change the duty rate to 0 if your goods qualify for a preferential rate or an exemption, and change the VAT rate or VAT treatment if you are a VAT-registered importer who will recover the VAT later. This tool is illustrative and does not replace the figure on your declaration.

Worked example: AED 10,000 CIF shipment

Illustrative, built from the 5% rates above. Suppose the goods cost AED 8,000, freight is AED 1,500 and insurance is AED 500, so CIF is AED 10,000.

Without the duty-on-VAT effect you would expect AED 500 for VAT. The AED 25 difference is the VAT charged on the duty. A non-registered importer pays these taxes before clearing the goods. A registered importer bringing taxable goods into the mainland accounts for the VAT in its VAT return instead. See UAE VAT registration for sellers.

When is duty different from 5%?

• Alcohol and tobacco. 50% and 100% in Dubai. Both are also excluded from Dubai's AED 1,000 e-commerce exemption.
• Small e-commerce parcels. Dubai Customs Notice 16/2026, effective 3 August 2026, exempts goods and products valued up to AED 1,000 from customs duty in the cross-border e-commerce channel. See customs on courier shipments.
• Goods from a free zone to the mainland. The GCC rule is that goods imported from free zones are subject to duty on exit from those zones. See free zone to mainland customs duty.
• Goods already cleared in another GCC state. Duties are collected at the first point of entry. See GCC customs union single duty.
• Trade agreement origin. Turkish-origin goods imported directly are exempt under the UAE-Turkiye agreement schedules.
• Re-exported goods. Duty may be refundable; see customs duty refund and re-export.

What mistakes make the calculation wrong?

• Using the invoice price as CIF. If your supplier quoted ex-works or FOB, add freight and insurance.
• Ignoring the VAT-on-duty effect. VAT applies to the duty-inclusive value.
• Using a flat 5% for everything. The 5% is the common rate, not a rule for every HS code. Dubai applies different rates to alcohol and tobacco, and exemptions exist.
• Wrong HS code. Dubai lists an AED 500 fine for a wrong HS code that does not cause a duty loss. A code that causes a duty loss is a larger issue and the fine is not stated in the guide figures used here.
• Forgetting the paperwork deadline. Declaration documents are due within 30 days of processing. The documents are listed in import documents required in Dubai.
• No importer code. You need a customs business code before you can declare; see how to get a Dubai importer code.

FAQ

What is the customs duty rate in the UAE? The common GCC rate is 5% on foreign goods imported from outside the Union. Dubai applies 5% of CIF value, with 50% on alcohol and 100% on cigarettes and tobacco. Some goods are exempt under the approved schedule and some are exempt by origin or channel.

Is customs duty calculated on the invoice value or the CIF value? On CIF value, which is cost plus insurance plus freight to the UAE. If your invoice is ex-works or FOB, you add freight and insurance. Dubai Customs names the transaction value as the principal valuation method.

Do I pay VAT on top of customs duty? Yes. Import VAT is 5% and is calculated on the value of the goods including the customs duty. A registered importer may account for it in its VAT return, while a non-registered importer pays before clearance.

How much is a Dubai customs declaration fee? Dubai Customs lists AED 70 for dutiable goods and AED 80 for non-dutiable goods on an import to the local market, plus a AED 20 Knowledge and Innovation fee on services costing AED 50 or more. The guide gives a general range of AED 15 to AED 100.

Is there duty on goods under AED 1,000? In Dubai's cross-border e-commerce channel, goods valued up to AED 1,000 are exempt from customs duty from 3 August 2026, except tobacco, e-smoking products, nicotine liquids and alcohol. The notice does not say how it treats VAT, so confirm that with Dubai Customs.

Can I recover the duty I paid? Sometimes. Dubai Customs has a refund claim service for duty on goods that are re-exported, and claims are not accepted until the declaration documents are submitted. The guide describes refunds around re-export and deposits, not for goods sold locally.

What to do next

Get the HS code and the CIF value in writing from your supplier and broker, run the numbers above, then compare the landed cost with your marketplace price. Blooprint manages marketplace ads and listings on Amazon.ae and noon for brands. More setup guides are in how to start an online business in Dubai.