Government Program for Business Relief During COVID19 in UAE
As the pandemic takes hold and new rules come into effect, we thought we would create a central resource of some of the information floating around for the supply chain, logistics, and transportation sector in UAE that is so crucial for the freight forwarding business.
You can see the update on our web site but I thought I would share it here for all our partners and customers in case you have missed some of the updates (since most of us are inundated with information).
Duty Refund of 1% via Dubai Port
In line with the His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and the Ruler of Dubai, Dubai Customs will refund 1% of Customs Duty imposed on imported goods sold locally in UAE between 5 March 2020 and 30 June 2020 that are liable to customs duty at the rate of 5% are eligible for the refund.
Customs Broker Security
Read more from the Source: Dubai Customs
Other Initiatives by Dubai Government Only (as reported in the local media)
- Suspension of 2.5% market fees, recovery of 20% of custom fees on imported products sold locally
- Cancellation of the Dh50,000 bank guarantee or cash required to exercise customs clearance activity
- 90% reduction on the fees imposed on submitting customs documents.
- Cancellation of the 25% down payment for requesting the installment of government fees for licensing and renewing licenses
- The water and electricity bills will be cut by 10% for all Dubai customers, including residential, commercial and industrial
- Postponing Rent Payment
- Facilitating Installment of Payment
- Cancellation of fines for both companies and individuals
- Refund security deposits and guarantee
Dubai South announces economic stimulus package to support its business community in 2020
This announcement is part of Dubai South Free Zone’s unwavering commitment to foster a business-friendly environment and meet the needs of its valued customers.
In addition, customers who operate in the Business Park Free Zone will have the opportunity to apply for a lease deferral request of up to six months, which will be granted on a case-by-case basis. Meanwhile, Dubai South Business Centre customers renewing their contracts between now and October 2020 will receive a reduction of up to 25 per cent on their renewal fees as well as the flexibility to settle annual rental fees in up to four installments. Furthermore, individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25 per cent.
Abu Dhabi Economic Development Department:
In a tweet, the Abu Dhabi Economic Development Department announced that commercial and industrial violations have been dropped for the establishments in Abu Dhabi. This is as per a series of initiatives announced by the Executive Council of the Emirate of Abu Dhabi.
In another Abu Dhabi recently announced a number of initiatives under Ghadan 21 to support the private sector, startups, and the residents in view of the crisis generating out of COVID-19 outbreak.
Ajman Crown Prince announces new package of economic incentives
On April 08, 2020 – H.H. Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Executive Council, announced a directive to support the sectors of foreign trade, customs, tourism and real estate and other economic establishments with a set of urgent decisions, as part of a relief program for the economy and some of the initiative includes:-
- Postponement of the payment of the fines and penalties until the end of the current year for all businesses in the emirate.
- Possibility of paying customs duties with easy payments within 90 days
- Extending the free period for storing containers from 10 to 20 days,
- Reducing container insurance fees by 50 percent for each container until the end of June 2020.
ADGM announces further incentives to support businesses
The Abu Dhabi Global Market Registration Authority, ADGM RA, today announced the enactment of several incentives for new businesses, aimed at supporting the establishment of their operations amid the COVID-19 pandemic and reinforcing the holistic offerings of ADGM’s ecosystem. Further details on the new incentives can be found on the ADGM website
ADGM has previously introduced a series of measures that aim to mitigate the implications of COVID-19 on its entities, including a 50 percent waiver on the imposed ADGM FSRA supervision fee and a 100 percent waiver on the renewal of commercial licensing fees, including the business activity renewal fees and the data protection renewal fees imposed by the ADGM RA, which will be applicable until 25 March 2021
KIZAD unveils freezone business packages with up to 36 percent savings
KIZAD’s relief package is available in three tiers, the first providing 25 percent savings on renewal or new registrations of three-years, 20 percent savings for two-year registrations and renewals, and 15 percent savings for one-year registrations.
Across all packages, new and existing customers will also benefit from having their security deposit waived.
The measures announced by Abu Dhabi Ports recently include the waiving of penalties associated with the late renewal of licenses in the second quarter of the year, as well as rent deferment and a freeze on late payment penalties.
Abu Dhabi Customs launches economic stimulus package to support importers
The incentives included postponing the payment of customs duties of importers for 90 days through facilities accounts that opened to customers of Abu Dhabi Customs,
The incentives also included pre-clearance services prior to shipment arrival through the possibility of clearing goods before they arrive in the country through the customs operations system, which would save time and costs on companies as well as self-clearance services that allow companies to clear their shipments themselves without resorting to a customs clearance under the controls Customs licences, in addition to licensing bond warehouses with no fees, companies can issue a customs warehouse licence without the need to pay licence fees at present, and they can regulate the data of bond and take out from customs warehouses without the need to pay service fees.
Fujairah waives licensing and tax fees for current year
According to the Resolution’s first article, “Some activities shall be exempted for a year, starting from 1st January to 31st December 2020, from licensing fees, such as professions in the popular market, Friday market, meat and poultry stores, tailors, cinemas, gaming centres and stores located in Shopping malls, hotels, fitness centres, health clubs, wedding halls, and men’s and women’s salons.
The Resolution’s second article stipulated that resorts, hotels, and hotel apartments shall be exempted from the prescribed local tax.
UAQ Ruler issues Emiri Decree on economic incentives to support businesses
The decree stipulates a discount of 50 percent on fees related to new business licences and commercial, industrial and professional licence renewals at the Department of Economic Development, as well as the cancellation of fines for expired licences of commercial, industrial and professional companies and economic establishments in the emirate, and a 50 percent fee reduction on fees on activities related to the Umm Al Qaiwain Chamber of Commerce and Industry.
MOH (Ministry of Health) AND Dubai economic department lists Logistics, Transportation and Supply chain as essential services
Sharjah Road & Transportation Authority
Dubai Municipality Food Importers | Unverified News through LinkedIn
Dubai Municipality – it has said to allow food items to enter all Dubai ports without the mandatory Arabic labeling requirement and without having to date stamp production dates on mandatory items. Please be advised that this is valid for goods entering the UAE via Dubai ports only and for goods to be sold within the Emirate of Dubai. They have not provided an end-date to this and our assumption is that this will go on until the COVID-19 crisis/lockdowns are behind us.
Abu Dhabi Food Municipality | Unverified News through LinkedIn
Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) will now allow food items to enter all Abu Dhabi ports without the mandatory Arabic labeling requirement and without having to date stamp production dates on mandatory items. However, expiry/best by dates will need to be mentioned on all items.
COVID Air Freight Update & Prices and Capacity
Since COVID-19 Pandemic, 90% of all airlines have reduced or instead suspended their passenger flight operations. This move has resulted in significant capacity being removed from the Air Freight as 50% of Air Cargo moves in Passenger Flights. This withdrawal has put a strain on the Air Freight Prices which has been climbing amidst the capacity cut.
Now to combat that passenger airlines are morphing their passenger aircraft in Cargo Carrier to haul critical supplies, foodstuffs, and other economically essential goods.
The following are the airlines that are doing that are now catering to the Freight Forwarders from UAE for Air Freight on their passenger aircraft
Emirates Airline Cargo Only
April 1- Emirates Skycargo moves all operations to DXB Airport
1st April 2020 – Service Update for Freighter and Cargo only services
Etihad Airlines Cargo Only: March 17 – Etihad Cargo to expand Cargo freighter-only flights to key origins
Air Arabia: Sharjah based budget carrier Air Arabia will also suspend their operations from Thursday, March 26th.
Miscellaneous Air Freight News
Dnata: Import Delivery Order – Through email and through Calogi
Export AWB – Online through Calogi
B2B Contactless Payment – whereby entity has to complete the transfer of the payment through online bank transfer (ATM Cheque Deposit is not allowed as per the notice) and then sent the confirmation through email: ReceiptingDebtorspay@emirates.com to release the AWB or the Delivery order for the Air Cargo shipment
This is to signify the general trend of the Air Freight Industry
Read More here: Airfreight rates continue to increase but signs of a slowdown in March 2020
Read More here: Revenue fall for the airlines due to COVID-19 in the first two months of 2020
COVID Ocean Marine Freight Update in UAE
Ocean Freight Price and Capacity
As Trade seize up around the world, the availability of cargo containers at Hamburg, Rotterdam, and Antwerp in Europe and Long Beach and Los Angeles in the U.S. are at the lowest levels recorded and this has caused prices to soar between 55% to 70% on certain tradelines.
THE Alliance has now announced blank sailings on the Transpacific and the Transatlantic. Over a 5-week period they are removing approximately 18-20% of the capacity on the Pacific.
On the North Atlantic, THE Alliance is withdrawing some 15% of the capacity over a 5-week period whereas 2M just announced a 20% reduction over a 2-week period also on the North Atlantic.
Thus far 2M show 11% reduction and Ocean Alliance a 12% reduction on the Pacific to the West Coast for a 4-week period.
Furthermore, some of the canceled sailings are announced with a lead-time substantially shorter than usual indicating a very rapid drop in booking activity.