Ask five agents for an “import export licence” in Dubai and you will get five prices, because there is no single document with that name. You need two things: a trade licence and a customs code. Most guides quote the licence and wave at everything else. This post gives you both steps, a table of what each route really costs, and a worked landed-cost example so you can price your first shipment before you buy anything.
- Step 1: a trade licence from Dubai DET (mainland) or a free zone.
- Step 2: an Import Export Code from Dubai Customs, typically AED 120 to 500.
- Typical licence cost: AED 12,000 to 18,000 in free zones, AED 20,000 to 25,000 on the mainland in year one.
- On most goods, import taxes add roughly 10.25% of the CIF value (5% duty plus 5% VAT on duty-inclusive value).
The two-stage process
- Choose your jurisdiction and activity. Pick a trading activity that matches what you will import. Restricted goods may need extra approvals.
- Get the trade licence. Mainland through DET, or a free zone such as JAFZA, DMCC or IFZA.
- Open the company bank account. Banks may ask for supplier contracts, so allow time. See our guide on getting a business bank account approved.
- Register with Dubai Customs through the Dubai Trade portal to receive your Import Export Code. You need your licence and company documents.
- Appoint a clearing agent and have each shipment declared with the correct HS code.
Mainland vs free zone for traders
| Factor | Mainland | Free zone |
|---|---|---|
| Year-one licence cost | About AED 20,000 to 25,000 (with office and customs code) | About AED 12,000 to 18,000 plus customs code |
| Sell to UAE customers directly | Yes | Needs distributor, re-export or a mainland permit |
| Customs duty | Payable on import | Deferred until goods enter the mainland |
| Warehousing | Separate lease | Often available inside the zone |
| Customs code required | Yes | Yes |
If you want a free zone base but need to sell onshore, read our guide to the free zone mainland permit before you commit to a mainland office.
Worked example: what a US$10,000 shipment really costs
Take a shipment with a CIF value (cost, insurance and freight) of US$10,000. At the pegged rate of about AED 3.6725 per dollar, that is AED 36,725.
| Line | Calculation | Amount (AED) |
|---|---|---|
| CIF value | US$10,000 x 3.6725 | 36,725 |
| Customs duty (5% typical rate) | 36,725 x 5% | 1,836 |
| Import VAT (5%) | (36,725 + 1,836) x 5% | 1,928 |
| Taxes on import | 3,764 (about 10.25%) |
The 5% duty is the common rate for most goods, but it varies by HS code and some categories are higher, exempt or restricted, so confirm your tariff line before you quote a customer. Clearing agent fees, port charges, inspection and storage come on top. Import VAT can usually be recovered if you are VAT registered, see our VAT registration guide.
The hidden costs that triple the brochure price
- Warehouse deposits and rent if you hold stock.
- PRO and typing fees for licence amendments and renewals.
- Clearing agent fees on every consignment.
- Working capital to pay suppliers before you collect from buyers.
Some trackers estimate first-year costs at two to three times the headline licence fee once these are counted. Renewals matter too, see Dubai trade licence renewal costs and penalties. If you also sell online, check the e-commerce licence rules.
FAQ
Do free zone companies need a customs code? Yes, if they clear goods through UAE borders, ports or airports.
Is duty paid twice if I import via a free zone? No, duty is paid once, when goods move from the zone into the mainland market.
Can I run this from abroad? The licence can be set up remotely in many zones, but banking often needs a trip, see what is actually remote.
Official portals: Dubai Customs and Dubai Trade. Planning your first container? Talk to BizDaddy about licence, bank and customs setup together.
