- 1-When should I submit EX203B – Lost And Damaged Declaration?
You should submit this declaration to apply for a waiver of tax liability on your Excisable Goods that were lost or damaged in a Designated Zone. This includes Excisable Goods lost or damaged in the production of other Excisable Goods in a Designated Zone.
- 2-What happens if I do not submit EX203B – Lost And Damaged Declaration in respect of Excisable Goods that were lost or damaged in a Designated Zone?
Loss or damage of the Excisable Goods in a Designated Zone does not result in automatic waiver of the Excise Tax liability. Without submitting this declaration, FTA will assume that you released the Excise Goods from the Designated Zone for consumption and the excise tax must be paid in full. If you submit this declaration, FTA will review it and may grant a partial of full waiver of the tax liability on the lost or damaged goods. Any tax liability that is not waived will result in a positive Excise Tax liability that will be populated in Box 3 of your Tax Return.
- 3-Do I need to know the Designated Zone number in which the goods were lost or damaged?
Yes, you need to input a valid Designated Zone number in the declaration to identify the Designated Zone in which the goods were lost or damaged. The Designated Zone must be in ‘Approved’ status. You will not be able to report consumption in a Designated Zone that is in ‘Suspended’ or ‘Expired’ status.
- 4-Is there any visit to the company after submitting the application?
FTA will notify you regarding the visit within 30 days from date of submitting the request.
- 5-Does the destruction process need direct supervision by the FTA?
Yes. Please coordinate with the FTA representative.
- 6-Is it necessary to obtain prior approval from the Authority for destruction?
Yes, FTA must be informed and prior approval obtained, prior approval by FTA is mandatory and required before the destruction process can begin.
- 7-If there are lost quantities resulting from production operations, is it necessary to inform the FTA about the quantities that are not actual and negotiable?
Yes, the FTA must be informed, and an application must be submitted, mentioning the actual quantities resulting from production differences must be kept, and documents that support these differences must be kept, such as (production equations, production reports, quantities of raw materials entered into the production process, as well as the actual production quantity during the period of realization of losses). These reports are for each stage of the production process.
- 8-If the service applicant did not prepare the destruction process needed in a proper way, is there any action that will take by the FTA?
If the destruction process did not properly prepare it will affect the destruction request this may lead to the rejection of the application.
- 9-Does the applicant have the right to destroy the goods in the event that the FTA does not respond?
Goods may be destroyed after the lapse of 30 days from notifying the FTA unless the FTA directs to keep the goods for inspection even if the mentioned period is exceeded.
- 10-In case we discovered any damage or deficiency in the excisable goods, when is the declaration required?
The FTA must be notified within 30 days from the date of discovery of the damage or any deficiency.
- 11-What are the subsequent procedures for applying?
- Setting an appointment for a visit by the representative of the FTA to verify the validity of the request and quantities
- Initial approval to complete customs and other approvals
- Determining the date for supervising the destruction by the FTA
- Completing the actual destruction procedures
- Providing the FTA with a certificate of destruction from the competent authorities
- Issuance of final approval or partial approval or reject by the FTA.
- 12-Does the Warehouse Keeper that administers the Designated Zone review the declaration after I submit it?
Yes, the Warehouse Keeper that administers the Designated Zone reviews and either approves or rejects the declaration. If the Warehouse Keeper approves, the declaration will be submitted for our review.
- 13-What happens with EX203B – Lost And Damaged Declaration after the Warehouse Keeper approves it?
We will review the declaration and we may:
•Request more information;
•Initiate an inspection of the Designated Zone where the loss or damage occurred;
•Reject the declaration; or
•Approve the declaration.
If we approve the declaration, the approval may with full, partial or no waiver of Excise Tax liability. The approval may be conditional on you producing Destruction Certificate and/or Customs Letter if the goods will need to be imported into the UAE.
- 14-What happens with Excisable Goods I reported in EX203B – Lost And Damaged Declaration?
The stock of goods will be put on-hold and you will not be able to report the stock in other declarations. If we approve the declaration, the stock is deducted from the balances under your Tax Registration Number (TRN) and the Designated Zone. If we or the Warehouse Keeper reject the declaration, the stock is released back and becomes available for reporting in other declarations
- 15-What is the filing frequency of EX203B – Lost And Damaged Declaration?
You can submit multiple EX203B – Lost And Damaged Declaration for each tax period. However you will not be able to submit a new EX203B – Lost And Damaged Declaration, if there is a pending request for a Destruction Certificate in respect of previously submitted EX203B – Lost And Damaged Declaration. Once you submit the Destruction Certificate, you will be able to submit a new EX203B – Lost And Damaged Declaration.
- 16-How do I file an EX203B – Lost And Damaged Declaration?
You must submit all Excise Tax declarations online using the EmaraTax portal.
- 17-Can I edit EX203B – Lost And Damaged Declaration after submission?
You cannot edit EX203B – Lost And Damaged Declaration after you submit it for the Warehouse Keeper review. However, if the Warehouse Keeper approves the declaration and we decide to request more information, the declaration returns to Resubmit status and you can update the declaration as required.
- 18-Can I declare loss or damage of Excisable Goods even if the goods are not available in the Designated Zone records?
No, you cannot declare Excisable Goods if the goods are not available in the Designated Zone records.
- 19-Do I need to use the required template to populate the Excise Goods Grid?
The use of the templates is optional and is provided as an aid for users that are entering items in bulk. You can directly enter items into the grid if you prefer.
- 20-Do I need to upload Documentary Proof to evidence the loss or damage of the Excisable Goods? Yes, you are required to upload Documentary Proof. The Documentary Proof should support the claims of loss and/or damage of the Excisable Goods. The nature of the evidence is open, and it may include accounting records, accident reports, statements, and photographic evidence. We encourage you to provide as much accurate and reliable evidence as possible. If the evidence is not clear or insufficient, we may request further information before we review your declaration.