Import from UAE

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Import from UAE (Challenges and Opportunities)

Without a doubt, one must not forget the geographical conditions of Iran. The UAE is a country in the south of the Persian Gulf, with access to waterways that are considered global trading hubs. More than 80% of Dubai’s population is made up of non-natives, who predominantly speak English, making communication with the sellers there easy. Additionally, many European companies are based in Dubai, and the majority of imports to Dubai are carried out by European companies, including electrical production equipment, transportation equipment, commercial machinery imports, and household goods. Ultimately, many of these quality goods are imported into Iran from Dubai.

Dubai is one of the most important cities in the United Arab Emirates and has 27 free trade zones, which provide easy trading opportunities for merchants. The most important of these areas for goods import include imports from Jebel Ali Port, imports from Rashid Port, Hamriyah, and so on. Jebel Ali Port, located in Dubai, is the closest option to the southern ports of Iran and indeed provides the shortest route for transferring goods to Iran for traders.

Clearing goods from Dubai has another advantage, and that is the Emiratis’ access to state-of-the-art equipment and facilities. For this reason, clearing in the UAE is considered a suitable option for traders.

How to Import Goods from Dubai

The principal exports of the UAE are fossil fuels and crude oil. They also export automobiles, machinery, and electrical devices as intermediary goods.

The main imports of the UAE include precious stones, automobiles, industrial machinery and their spare parts, iron, steel, and plastics.

Iran imports a wide variety of goods from Dubai, with the highest percentage of these imports being automobiles. It can be said that the UAE is Iran’s second-largest trading partner, and a diverse range of goods are imported from this country into Iran annually. Statistics show that last year, 3640 groups of goods were imported from the Emirates into Iran, with the largest volume of these imports related to the import of automobiles and motor vehicles.

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The Steps of Importing Goods from Dubai to Iran

Importing from Dubai involves 7 steps:

1- Determining the Goods

In the first step, you must select the goods you want to import from Dubai to Iran and then study the laws and regulations that exist for importing the desired goods. Next, you should examine the market for the chosen goods in Iran, understand the demand, and also know your competitors in this field. You should also be aware of the price of your selected goods in Dubai and in Iran.

2- Finding a Supplier

After selecting your goods and conducting the necessary research, you need to find suppliers of the goods in Dubai. There are two ways to do this: one is traveling to Dubai and finding suppliers in person, and the second is through internet research. The second method might be a bit risky and make it difficult to trust in a non-face-to-face manner. Also, since China exports a lot to Dubai, you should ensure that the quality of the goods you intend to purchase is high and suitable.

3- Negotiating with the Supplier

At this stage, after finding the suppliers, you can request a price list from them either in person or through correspondence. Once you have received the proforma invoice, you can negotiate with the seller about the price of the goods in Dubai, the method of shipment, and the payment terms to reach a mutual agreement.

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4- Registering the Order and Obtaining Permits

After reaching an agreement with the supplier, you must register your goods on the Ministry of Industry, Mine and Trade’s system. To register an order, you need a proforma invoice which you must upload to this system. Note that it is not possible to register orders for prohibited goods. Once you have registered your goods, you must obtain the necessary permits from the relevant government organizations. It is worth mentioning that these permits vary depending on the type and category of the goods in question, and you should be aware of the necessary permits for your desired goods before proceeding with Dubai cargo. After receiving the necessary permits, your order registration is confirmed, and you can request currency allocation from your preferred bank and be placed on the waiting list.

5- Currency Allocation, Remittance, and Purchase of Goods

At this stage, the government allocates one of the official currencies, NIMA, free market, or export-based currency to your goods. You can then remit the allocated currency to the supplier through one of the official exchange offices or banks and purchase your goods.

6- Shipping and Insurance of Goods

At this stage, you can transport your goods to Iran using one of the methods of air, sea, or land transportation. Please note that before moving the goods, you should insure them because you will need to present the insurance policy for customs clearance. Once your shipment reaches one of the customs offices in Iran, you can start the process of clearing your goods.

7- Customs Clearance of Goods in Dubai

To clear goods through customs in Dubai, you must first be aware of the customs regulations for the goods in question. For clearance, documents such as the invoice, packing list, insurance policy, bill of lading, certificate of origin, and other shipping documents are required. After the issuance of the warehouse receipt, you will receive the customs declaration, then the inspection process by customs experts begins. After all customs procedures are completed, you are obliged to pay taxes and customs duties, which vary depending on the type of goods, quantity, and tariff.

After paying the customs duties, your goods are ready to leave the customs area, and you can transport the cargo to its final destination or your own warehouse. Since the process of clearing goods from customs in Iran is somewhat complicated and requires expertise and knowledge, we recommend entrusting the clearance of goods in Dubai to one of the experienced trading companies in this field, such as Tata Trading Company, so you can comfortably remove your goods from customs.

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Advantages of Importing from Dubai

In addition to the points mentioned, importing from Dubai is highly profitable and cost-effective. Knowing these points makes Dubai one of the main destinations for Iranian importers, and not knowing them can lead to missing out on an excellent opportunity for purchasing, importing, and making a profit. Below, we will discuss the advantages of importing from Dubai:

  • Reasonable cost of importing from Dubai to Iran
  • Importing high-quality goods from Dubai to Iran
  • Importing from various parts of the world via Dubai
  • The possibility of returning goods
  • Lower cost of clearing goods in and from Dubai

Each of the mentioned advantages has been considered by Iranian importers because there are few sources of purchase and import that provide the opportunity to buy a variety of high-quality goods and also offer reasonable import and transportation costs. We will explain each of these advantages in detail.

Importing from Dubai is cost-effective and economical

Importing from the UAE, due to its proximity to Iran, is less expensive compared to imports from other locations. Importing from Dubai and transporting goods to Iran, as well as the clearance process, are carried out with lower costs and greater speed.

Purchasing High-Quality and Diverse European Goods from Dubai

Currently, due to sanctions, the possibility of purchasing and importing many high-quality goods into the country is not available. Importing from Dubai has facilitated this process. In fact, Iranian traders can import goods by purchasing various high-quality European goods from Dubai’s markets. Popular imported goods from Dubai include automotive parts and electronic components, among others. Additionally, the entry of various goods from all over the world into the UAE has turned Dubai’s market into a hub filled with merchandise, raw materials, etc., for traders to purchase.

Importing from the Farthest Corners of the World via Dubai

Another advantage of importing from the Emirates is Dubai’s intermediary role for Iranian traders. In this way, merchants can order and then purchase their desired products, identify the destination for receiving the goods, and after the imported consignment arrives in Dubai, proceed to send it to Iran.

The Possibility of Returning Goods

An important consideration for Iranian traders is the ability to return goods. In some cases, you may not be satisfied with the quality of the purchased goods, or the goods may be defective. One of the advantages of importing from Dubai, which Pāyā Trade Solutions Company also provides, is the possibility of returning the goods to the seller if the buyer is not satisfied.

Low Cost of Importing from Dubai

The process of importing from the farthest corners of the world requires going through customs formalities and paying customs duties; importing from Dubai is no exception. However, in recent years, the trade policies established in Dubai have doubled the importance of importing and clearing goods from Dubai to Iran. These policies have made importing and clearing goods from Dubai easier and more cost-effective compared to other countries. It should be noted that the process of importing and clearing goods from Dubai is carried out according to international laws and the domestic laws of both countries, but as mentioned, the import process is less costly.

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The Importance of Import Rules from Dubai

In order to import goods from Dubai, one must study all the rules and regulations of importing from Dubai before taking any action and be aware of the details of the process. For example, the import of certain goods such as alcoholic beverages into Iran is prohibited, and the rules for different types of goods can vary in detail; therefore, it is best to have sufficient and up-to-date information on the import rules of the goods you are interested in.

Import Tariff from Dubai

The import tariff from Dubai to Iran depends on the type and category of the imported product. Each product has a different tariff based on its commodity priority and classification; therefore, before you proceed with importing from Dubai to Iran, you should be aware of the import tariff for the specific goods you are interested in. This knowledge will enable you to calculate all your final costs and ultimately the profit you will make, to avoid financial loss.

Best Goods for Import from Dubai

As mentioned, a variety of goods are imported from Dubai to Iran. Below is a list of the best goods for import from Dubai:

  • Mobile phones, laptops, and their accessories
  • Cosmetics and hygiene products
  • Fabric and various types of clothing
  • Various types of shoes
  • Digital cameras
  • Automobiles and other motor vehicles
  • Iron and steel
  • Animal feed corn
  • Sugar
  • Digital cameras

Gold Imports from Dubai

Some have called Dubai the “City of Gold.” It is a city that has been an important destination for gold traders for years. Due to the suitable economic status of the people of Dubai and its touristic nature, the gold market in this city is very prosperous. This has led to numerous sellers engaging in the gold trade, and we witness a high variety in the gold market of this city.

Furthermore, Dubai’s laws have greatly facilitated the export of gold from Dubai to other countries. So much so that gold exports are considered the second most profitable export trade after oil exports in this city. This issue, alongside Dubai’s proximity to Iran and the low transportation costs, has resulted in a significantly high profit margin for gold importers from Dubai. Considering the decree of February 9, 2023, the conditions for gold imports in Iran have been largely facilitated, which presents a very suitable opportunity for gold importers.

Importing gold from Dubai is also economically beneficial for our country’s economy. The reason for this is the increase in the country’s foreign currency reserves as a result of gold imports. For this reason, the regulations for gold imports are generally very simple and without much formality. The import of raw gold, such as gold bullion, only requires obtaining customs permits and the central bank’s authorization, and gold importers are exempt from other import costs.

There are two methods for importing gold from Dubai: direct and indirect. In the direct method, you can travel directly to the city of Dubai and purchase the amount of gold you need. In this method, all necessary follow-ups, including packaging the goods and obtaining the required permits from customs, are your responsibility.

In the second method of importing gold from Dubai, you can proceed through reputable commercial and importing companies such as Tata Trading Company. In this method, you don’t even need to travel to the city of Dubai, and all stages, from purchasing gold to packaging and shipping the consignments, as well as obtaining the necessary permits, will be carried out by Tata Trading Company.

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What are the costs of importing from Dubai?

You should know that the costs of importing from Dubai are not limited to the cost of purchasing goods; there are many other significant costs in the process of importing goods from Dubai that you must consider in calculating your total costs. Below are some of the costs of importing goods from Dubai:

  • Cost of purchasing goods
  • Loading and transportation costs
  • Cost of goods insurance
  • Cost of obtaining relevant permits
  • Cost of order registration
  • Costs of customs clearance and administrative and ceremonial procedures of Iran Customs
  • Tax and customs duties
  • Cost of transporting goods from Iran Customs to the final destination

Suitcase Import from Dubai

Suitcase import refers to the import of a small quantity of goods under the guise of passenger luggage into the country. That is, you use the same amount of luggage that you can carry with you on an air trip and proceed to import it into the country. Suitcase import from Dubai is a suitable method for importing with low capital and is considered a good option for novice traders. From a legal perspective, suitcase import does not have any particular problems, and you can import your luggage without paying customs duties through passenger luggage. If you import more than your quota from Dubai as suitcase import, you will also have to pay the excess baggage fee for the airplane.

Smuggling Imports from Dubai

Smuggling imports from Dubai are completely prohibited, and smugglers will face confiscation of goods and other penalties. It is obvious that smuggling of goods should not be done under any circumstances. Smuggling imports from Dubai are carried out in 5 different ways:

Dhow Importing: Annually, up to 6 times and each time goods worth 1500 dollars can be imported into the country without customs duties, provided that the goods do not leave the port. Smugglers bring the goods into the country and take them out of the port with the help of carriers for a small fee.

Container Importing: Since not all containers can be checked with X-rays, smugglers hide contraband in containers and prevent the detection of these goods with fake declarations.

Under-declaration: Similar to the container method, it is based on declaring less than the actual amount of goods.

Free Zones: Cities like Qeshm, Kish, Bandar Anzali, etc., are considered free zones, and after goods enter these areas, they are taken to other parts of the country in various ways.

Transit: Some goods are imported into the country via transit to be transferred to a third country. In this case, smugglers secretly take the goods out of transit and bring them into the country.”

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Points to Consider When Import from UAE

The UAE, due to its strong economy, hosts many prominent brands. Consequently, a significant number of non-original products are also imported from China into the UAE. For this reason, Iranian traders should pay close attention to the authenticity of the goods during purchase to avoid buying a fake product as an original.

Iranian merchants looking to avoid purchasing counterfeit goods can refer to the official dealerships of foreign brands in the UAE or visit the UAE Chamber of Commerce to obtain a list of authorized stores for purchasing products. However, it is possible that some of the merchants recommended by the UAE Chamber of Commerce may not be suitable for business.

Importing from the UAE is very cost-effective due to the country’s proximity to Iran. This allows Iranian traders to import goods into Iran more quickly and at a lower cost, encouraging them to engage in importing from the UAE.

Another advantage of importing from the UAE is that it is possible to order certain goods from countries that currently have sanctions against Iran. In such cases, an Iranian company can introduce the UAE seller as the origin of their products. After receiving the shipment in the UAE, the goods are then exported to Iran.

Import from UAE by Tata Trading Company

Tata Trading Company is one of the most reputable companies active in imports from the UAE. Given its strong trade relations with the UAE, the company can import a variety of products from the country.

Tata operates in various fields including metals, information technology, services, energy, foodstuffs, and building materials. Utilizing its extensive network, the company can effectively import these products from the UAE and offer them in various domestic and international markets.

Imports from the UAE by Tata Trading Company not only contribute to the development of the domestic market but also create job opportunities and boost economic growth. These activities can also strengthen trade relations between Iran and the UAE. Ultimately, Tata’s main goal in importing from the UAE is to provide high-quality products and services to its customers.