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Amendment of Clearance Company Financial Guarantee
Page last updated:: Friday, May 24, 2024
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  • Type

    Registration

  • Service Category

    From Government to Business, From Government to Government, From Government to People

  • Service Channels

  • Obligation to Sign-up

    Applicable – Through the account previously created to register for Tax with the FTA

  • Categories of Customers

    All persons with a commercial activity falling within the category of customs clearance and freight services

  • Relevant Publications

  • Sustainable Development Goals

  • Service Card Rating

Amendment of Clearance Company Financial Guarantee
  • Service Description
    Through this service, the FTA
    Amends clearance companies financial guarantee for VAT and Excise purposes
     
  • Channels and working hours
    Phase 1
    EmaraTax Portal: 
    24 hours a day, 7 days a week

    Phase 2
    Tax payers support   center Dubai:
    https://goo.gl/maps/ZgrVzVAexoJNZJW37 
    During the specified official hours:
    Day: Monday – Friday
    Time: 7:30 a.m. – 3:30 p.m.
  • Service Fees Details
    Free of Charge
  • Estimated Time to Submit Application
    45 Minutes
  • Estimated Time to Complete Application by the FTA
    20 business days from the date the completed application was received
  • Required Documents and Forms
    Phase 1
    Registration Amendment Application in EmaraTax portal

    Phase 2

    Original Financial Guarantee (when applying for VAT clearing Company TINCO registration and Excise Clearing Company TINCE)
     
  • Procedures and Steps
    Phase 1

    1- Sign-in EmaraTax portal through FTA official website.
    2- Access your EmaraTax dashboard and click on Action button that is located under your Clearing Company registration tab.
    3- Start the Registration Amendment Application in EmaraTax portal.
    4- Edit the details related to registration and financial guarantee.
    5- Review the details related to registration and financial guarantee and submit the application. 

    Phase 2

    submit the original Financial Guarantee (when applying for VAT clearing Company TINCO registration and Excise Clearing Company TINCE)
     
  • FAQs
     1 - What is the difference between the ‘Edit’ and ‘Amendment’ functionality?

    When changes are made through the ‘Edit’ option, they are automatically reflected on the profile and FTA’s approval is not required.

    When changes are made through the ‘Amendment’ option, they are reflected on the profile only once approved by FTA

    2 - What details can be updated as part of the ‘Edit’ application?

    Your contact details can be edited as part of the application. You can add new or edit existing contact details.

    3 - What details can be updated as part of the ‘Amend’ application?

    You can update the following details as part of the ‘Amend’ application:
    • Estimated number of imports per month
    • Estimated value of goods per import
    • Estimated value of imports per month
    • Average number of days VAT tax will be suspended

    4 - Can I save the ‘Amend’ application as a draft to be updated later? If yes, for how long?

    Yes, you can save the in-progress application (as a draft) and complete it at a later point in time. However, if you do not submit your application within 60 calendar days of initiating it, it will be cancelled automatically. You will receive SMS and mail reminders. 

    5 - Who can submit the ‘Amend’ application to FTA?

    The application can be submitted to FTA by you (Clearing company), your tax agent or legal representative.


    6 - What is the estimated time to complete application review by the FTA? 

    Generally, the estimated time to complete the application by FTA is 20 business days from the date the completed application was received by FTA. However, in case where any additional information is needed, the FTA may take additional time to process the application. Then you need to provide the additional information and re-submit the application. FTA may take additional 20 business days to respond to the updated application. If the application is not resubmitted within 60 calendar days from the date you received the notification from FTA, the application will be auto-rejected.

    7 - What should I expect after submission of the ‘Amend’ application?

    Processing your application:
    Your application will now be reviewed by FTA. If we require any further details from you in order to assist with the verification of your application, you will receive an email notification setting out the information required from you.

    Application submitted first instance (Pre-Approval Stage): 

    Once we have completed our review, we will either pre-approve, or in some cases, may have to reject the application. We will notify you by email of our review or decision. 

    Where we pre-approve an application, you will be informed on the amount of the financial guarantee that you need to provide. Please refer to the details below on how to submit the financial guarantee.

    Where we reject an application, we will provide you with the reasons for doing so. You may re-apply but only once you have resolved the matters brought to your attention. 

    Application review post financial guarantee submission:

    Once we have completed our final review, we will either approve, or in some cases, may have to reject the application. We will notify you by email of our decision. 

    Where we reject an application, we will provide you with the reasons for doing so. You may re-apply but only once you have resolved the matters brought to your attention.  



    Providing a financial guarantee: 

    During the amendment process, you may be required to provide a financial guarantee issued by banks or other financial institutions in the UAE. We will determine the value of the financial guarantee to be provided and maintained by you. We will notify you by email and SMS with details of the value of the financial guarantee. 

    Follow these steps in order to provide the financial guarantee:

    Visit your bank or any other financial institution in the UAE that provides a financial guarantee. Get a financial guarantee issued in favor of “Federal Tax Authority” for the amount requested. Please note that the financial guarantee must be valid for 12 months, auto renewable and should state that it is for the purpose of clearing VAT or Excise on behalf of non-registered importers.

    Upload a scanned copy of the financial guarantee with relevant details in your amendment application and submit.

    Please note that the financial guarantee is required to be submitted in original at FTA office by scheduling an appointment with FTA representative. The person delivering the financial guarantee must also hold a letter of undertaking issued by the authorized signatory verifying the details of person. 

    Scheduling an appointment with FTA representative:

    Please note that the original financial guarantee required to be submitted in original at FTA Office by scheduling an appointment with FTA representative. Applicant can schedule a meeting by emailing Freight Forwarders Freight.Forwarders@tax.gov.ae


    Clearing Companies amendment application completion:

    Following approval of your Clearing Company amendment application you will receive a notification via email. Your updated financial guarantee will be reflected in your Clearing Company account.  Your VAT or Excise suspension limit for the import of goods into the UAE will be accordingly revised. 

    Important notes:
    The status of your application will be updated in the dashboard of your EmaraTax portal. You can view the status by logging into your account.

    How to check the status of the submitted application with the FTA? 

    The application status can be viewed on your taxpayer dashboard in EmaraTax. The following provides a summary of the application statuses:

    • Drafted: You have not completed or submitted the application form
    • In Review: Your application form has been received by FTA and is under processing
    • Awaiting Information: You need to provide additional information to FTA
    • Rejected: Your application form has been rejected by FTA
    • Pre-approved: Your application form has been reviewed by FTA and awaiting financial guarantee submission to approve the application
    • Approved: Your application form has been approved by FTA and your tax records have been successfully updated
     
  • Terms & Conditions
    1. Trade License must clearly specify that the person conducts customs clearance activities

    2. FTA may require more time if the FTA requests further info due to information not being provided with the application

    3. Financial Guarantee Should be submitted in original copy 
     

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Page last updated: : Friday, May 24,2024
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