Customs Reconciliation and Customs Audit in Dubai
When a business entity in the UAE is identified by the Dubai Customs as high risk, the government authority is going to request for an inventory count within an audit period that is in scope. With the information provided by the business, Dubai Customs will be making a comparison on the inventory count of the entity and the declarations for import and export processed by the entity under the customs code. In the event that there’s a set of discrepancies, may it be on value, weight, or quantity, the government authority is going to request valid justification for such and for the entity to submit a customs reconciliation.
Risks that arise from the incorrect management of customs compliance and failure to comply to customs audit and customs reconciliation process include the following:
- Transactions will be considered as acts to smuggle goods into UAE jurisdiction;
- Five percent payment for customs duty;
- Penalty for the value that is irreconcilable;
- Loss of privileges with Dubai Customs; and/or
- Possible termination of customs registration
Take note: entities in the business of importing and exporting to/from UAE are subject to evaluation for company records, policies, and practices. At Farahat & Co, our team of seasoned auditors can assist in the judgment of information’s integrity, especially the information that is supplied to the government authorities for compliance with legal requirements.
An importer/exporter is legally responsible for accuracy of documents and paperwork that are furnished to Customs. This is why most entities hire professionals, specifically specialists of customs audit and customs reconciliation program, in the preparation and lodging of declarations.
For your own interests or benefit, make sure that you examine all documents that are supplied to the government authorities, retain them, check for inaccuracies, and advise an auditor of any errors. You can also inquire with an approved auditor in Dubai for common customs audit issues and customs compliance checklist.
How Our Experts Work
In order to help business entities move items quickly, Dubai Customs can’t scrutinize every single transaction. This is the reason why customs audit is utilized in confirming information’s integrity, most especially declarations supplied to the authority. The customs reconciliation program of UAE was launched in order to eliminate future errors and maximize compliance of registered entities.
Our team of approved custom auditors based in Dubai and across the UAE helps clients in sustaining and achieving compliance over time and not just improving compliance on a basis of hit and miss. What this means is you will have experts supporting your business and carefully looking at all business systems, policies, and processes that are related to customs.
An audit requested by UAE Federal Customs Authority involves
An audit requested by the UAE Federal Customs Authority involves the following:
- Customs requesting an entry interview in order to discuss a customs audit, as well as the transactions that are going to be examined with the documents that are needed for the audit team to review from a audit firms in Dubai
- Entity (importer/exporter) is required in examining transactions prior to customs audit with the help of a commissioned approved auditor in UAE as errors that are reported to the authorities voluntarily are viewed by them favorably
- Customs will perform an exit interview and review with the importer/exporter in order to discuss assessments that were made regarding the legal of compliance of the client and any further action or sanction that is imposed to the entity
Apart from providing customs audit prior to official audit of customs and assistance with customs reconciliation in UAE, our team of approved customs auditors in UAE will help resolve the most common customs issues including the following:
- Common errors – this is when the government authority has already identified common reasons that reduced compliance of the business entity;
- Failure in retaining sufficient transaction records – business entities are required to retain all relevant documents for five years starting from the transaction date;
- Imports entered incorrectly – all imported items are to be declared with the customs according to the form that was initially approved. Items are to be described accurately and classified correctly and surplus goods have to be reported. Any item not ordered, promotional goods, and samples also have to be entered. If merchandise was already received but were not included in entries with customs, application needs to be lodged in order to amend entries and it has to be done immediately. A voluntary payment for additional duty won’t be penalized. Importers are subject to fines and penalties for errors that are detected during a customs official audit. For duty that was already paid but merchandise wasn’t received, applicant should claim duty refund.
- Origin identified incorrectly – country of origin confirmation has to be provided in order for an entity to claim the preferential duties or rates
If you want to know more regarding customs audit and customs reconciliation in UAE, call us today to book a consultation!