Federal Tax Authority and Abu Dhabi Quality and Conformity Council Launch Service for Measuring Natural Loss in Excise Goods to Exempt Losses Resulting from Natural Characteristics from Tax Obligations
Dubai, UAE –16 October 2025: In a new step toward enhancing product quality and the accuracy of technical inspections, the Abu Dhabi Quality and Conformity Council (QCC) announced the signing of a Service Level Agreement with the Federal Tax Authority (FTA) to launch a specialised technical consultancy service for all manufacturers in the UAE, which will measure the actual natural loss of excise goods.
The agreement was signed by H.E. Khalid Ali Al Bustani, Director-General of the FTA, and H.E. Eng. Fahad Gharib Al Shamsi, Acting Secretary-General of the QCC, on the sidelines of 45th edition of GITEX Global 2025, being held at the Dubai World Trade Centre.
This initiative implements FTA Decision No. 6 of 2025 regarding the standards, controls, and procedures for handling natural loss within designated zones, resulting from the natural properties of excise goods. Under this decision, the Central Testing Laboratory of QCC was accredited as the first independent technical entity authorised to conduct tests and technical examinations of excise goods.
The new “Actual Natural Loss Measurement Service for Excise Goods” aims to determine the rate of natural loss occurring during production, storage, or transportation – when the loss results from the nature of the goods themselves (e.g., evaporation). This is one of the key criteria required for exemption from tax obligations on excise goods that have become unfit for consumption due to their natural characteristics, within the designated zones registered with the FTA for excise tax purposes.
The service provides accurate, data-driven reports through sample collection, laboratory testing, and analysis of production, storage, and transport conditions – enhancing the reliability of data submitted to the FTA.
Relevant entities and businesses can now benefit from the service by reviewing its steps and requirements via the FTA’s official website, under the section for declaring lost or damaged excise goods. The service is also available to excise taxpayers and registered warehouse keepers within designated zones, in accordance with FTA-approved regulations, supporting tax compliance and ensuring fair and transparent application of procedures.
The signing of the agreement and launch of this new service reflects the ongoing cooperation between both entities and their shared commitment to providing distinguished services based on cutting-edge laboratory testing technologies.
This follows a visit by an FTA delegation to QCC headquarters, where they explored the council’s facilities, technologies, and testing methods – in particular, those related to the natural properties of excise goods and measurement of product loss during production, storage, and transportation.
H.E. Khalid Al Bustani emphasised the importance of today’s agreement, noting that it establishes an effective framework for cooperation, as well as an enhancement of coordination and information exchange between both entities. This is especially relevant in the areas of technical testing and analysis of excise goods.
His Excellency also noted that this initiative supports the FTA’s plans to promote voluntary compliance in line with best practices in governance and transparency and praised QCC’s vital role in strengthening the quality infrastructure, in Abu Dhabi.
His Excellency added that this step aligns with the FTA’s efforts to provide proactive and sustainable services in collaboration with its strategic partners across government and priVATe sectors, enhancing transparency and achieving the highest levels of efficiency and reliability in tax procedures. This is consistent with the government’s vision for an integrated, innoVATive, and efficient institutional ecosystem.
Commenting on today’s agreement, H.E. Eng. Fahad Gharib Al Shamsi said: “This agreement reaffirms QCC’s commitment to supporting national entities in developing innoVATive solutions based on scientific testing and precise technical analysis, thereby enhancing transparency and efficiency in tax processes and improving the quality of traded products and goods.
“This strengthens trust between manufacturers and consumers and directly supports the economies of Abu Dhabi and the UAE as a whole,” H.E. Al Shamsi added.
Providing this specialised consultancy service to manufacturers is a strategic step to enhance the competitiveness of Emirati products locally and internationally, reaffirming the leadership of QCC – and Abu Dhabi, as a whole – in implementing the highest standards of quality and conformity across markets.”
Abu Dhabi QCC is a leading government entity that aims to develop the infrastructure of quality and conformity in the emirate, ensuring the safety of locally traded products and goods. The Council operates the Central Testing Laboratory, which provides advanced testing and precise evaluations to support manufacturers and various economic sectors