UAE Transfers AED1 Billion Customs Duties for GCC in 2018

The Federal Customs Authority has announced that the total value of customs duties transferred by the UAE to the GCC countries amounted to about AED1 billion in 2018, as well as transfers from the GCC to local customs administrations.

The transfers were through the implementation of 168,726 transactions in the Automated Transfer Customs Duty, ATCD, system, which was launched in October 2015.

In its report, the Authority stated that the value of customs duties transferred by the UAE to the Gulf States for goods and commodities that entered the GCC countries through customs entry points in the UAE amounted to AED 866.4 million, representing 84 percent of the total amount transferred during the year 2018. This reflects the processing of 134.3 thousand transactions.

The customs duties on goods and commodities destined for the UAE transferred from the GCC countries to the local Customs Administrations in the UAE amounted to AED136.8 million. This reflects processing of 34.4 thousand transactions representing 14 percent of the total amount transferred during the year.

Commenting on the announcement, Ali Al Neyadi, Commissioner of the Authority, said that the ATCD system is one of the latest technical tools that contribute to enhancing GCC customs cooperation by shortening the time taken for dutys transfer. This took a year under the previous clearance system (Makassa) and is now only 30 days.

He emphasised that high volume of remittance reflects the UAE's key role in the GCC Customs Union in implementing the system. The country is the first gateway to the GCC countries as well as being a regional trading hub for the Middle East and neighboring regions. He added, "The ATCD reflects the positive contribution of the UAE to GCC customs work and the country’s pivotal role in supporting the GCC economic, trade and security cooperation."

"The Kingdom of Saudi Arabia has the largest share of total customs duties transferred by the UAE to the Gulf countries during 2018, its share of total transferred fees was AED456.1 million, representing 52.6 percent. Followed by Oman with a share of AED241.4 million or 27.9 percent. Kuwait came third with a share of AED118.1 million, representing 13.6 percent, and Bahrain's share of total remittances reached AED48.3 million, representing 5.6 percent," he said.

The ATCD system includes an advanced mechanism for the transfer of data on goods and commodities moving through customs entry points between the UAE and the GCC. The digital system links the systems of the Federal Customs Authority and the systems of the Local Customs Administrations in the UAE with the Information Centre of the General Secretariat of the GCC States and the Gulf Customs administrations.

Al Neyadi noted that the Federal Customs Authority ATCD system has won the Emirates Idea Award 2017 organised by the Dubai Quality Group, of innovation category in the field of Smart Government.