You Ask We Answer
Q 407: We plan to export potato chips to an importer in the UAE. We would like to know whether our importer in Dubai will also require some documents/license/certificate. This is apart from Dubai Customs requirement.
A: Yes, importing food items into Dubai requires specific licenses and approvals. The importer typically needs to obtain the following:
1. Trade License: Issued by the Department of Economic Development (DED) in Dubai, this license allows the business to operate legally.
2. Food Import and Re-export License: Issued by the Dubai Municipality (DM), this license is essential for businesses involved in the import, export and re-export of food products.
3. Registration with Dubai Municipality: The importer must register with the Dubai Municipality and have their food items approved. This involves submitting product details, labels and packaging for evaluation.
4. Label Approval: Food labels must meet the UAE’s labelling requirements, including ingredients, nutritional information, expiration dates and other relevant details.
5. Health Certificates: Depending on the type of food being imported, health certificates from the country of origin may be required to ensure the products meet Dubai’s health and safety standards.
6. Halal Certification: For certain food items, especially meat products, a Halal certification may be necessary to comply with Islamic dietary laws.
It is advisable to consult with the Dubai Municipality or a local legal advisor to ensure compliance with all regulations and to facilitate a smooth import process.
Q 408
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Sr. No.
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Question |
Answer
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1 |
We are an exporter. One of our customers from Yemen has placed an order for some products. He informed us to keep the products ready as he would be coming to India. |
It should be in writing. Even a proper email is good enough. |
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2 |
The buyer came to our office during his visit to India. |
Products were ready. We prepared invoice and handed over goods to him personally. The invoice should have value in Indian rupees. You have to convert the order amount to INR.
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3 |
Since the package was not very large (one small carton), he has decided to carry with him as a part of his baggage. |
As the cargo has not passed through any Customs procedures and no shipping bill was prepared, technically your supply cannot be considered as “EXPORT”. |
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4 |
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The transaction is akin as “Sale to Foreigner in India”.
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5 |
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As you are aware, several foreigners do buy goods when they are in India. It is very common.
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6 |
Payment |
The foreigner makes payment in USD through their credit card/debit card.
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7 |
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Some of the sellers have permission from RBI to operate under “Restricted Money Changer License”. The foreigner may pay in foreign currency which he has brought with him. If required, this amount is declared at the Customs. Foreign buyers may also pay Indian rupees from the money converted by them in India. |
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8 |
GST |
You have to consider this transaction as local transaction. GST invoice in INR is to be generated. GST is to be collected and paid. |
Q 409: We have sent some goods out of India for the purpose of display at an exhibition. We will be bringing back the same to India after the exhibition. We have not followed any procedure at the time of sending the goods out of India. Please guide.
A: Technically, goods entering into India will be considered as an import at the gate of the Customs. In case there is a notification to exempt these imported goods from import duty and or IGST, you will be clearing the goods without paying any duties.
Under the GST laws, there are minimum notifications of exemption. In case you pay IGST on imported goods, the following will be the implications:
a) Your import will be considered as your purchase.
b) Calculate IGST on your import product.
c) All imports are covered under IGST.
d) The payment of IGST on import is on the basis of cash payment/immediate payment.
e) Based on this Bill of Entry, you have to take Input Tax Credit (ITC) of IGST in monthly return of GSTR 3B in appropriate Table 4A.
f) This will get added as your ITC.
g) Whenever you are selling these products/and or any other products in the local market, you will require to pay IGST at the applicable rate.
h) You can utilise this balance for paying the IGST.
i) There is no provision for cash refund/encashment.
j) The copy of invoice and Bill of Entry should be given to your accounts department/chartered accountant/the person who is preparing monthly return.
k) It is very important, that this entry is properly reflected in the proper return at appropriate table.