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Registration of Designated Zones for Excise Tax
Page last updated:: Wednesday, February 01, 2023
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Registration of Designated Zones for Excise Tax
  • Service Description
    Use this service to register a designated zone (DZ) for Excise Tax purposes. 
  • Channels and working hours
    •EmaraTax platform:
    24 hours a day, 7 days a week
     
  • Service Fees Details
    AED 2,000 for each designated zone.
  • 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
    Required documents: 
    It will be necessary for you to prepare the following information in an appropriate format and include it in your online application:
    Official Site Plan of the warehouse, managed by the warehouse keeper, that is issued by the Free Zone Authority (stamped and signed by the Free Zone Authority). The provided plan shall include the plot number.
    Detailed warehouse plan, signed and stamped by the engineering consultant and the authorised signatory, showing the areas where the goods are stored, and the types of goods stored (both excise goods and non-excise goods).
    Excise goods flow and movement plan.
    Letter on the warehouse keeper’s printed letterhead with detailed description of the inventory system used in designated zone, along with screenshots of the system (signed and stamped by the authorised signatory).
    Declaration clarifying the details of procedures followed when moving/shifting excise goods, including the entry/exit of excise goods into/from the designated zone.
    Images proving that CCTV cameras are installed and working properly in the designated zone.
    Letter clarifying procedures and measures adopted in the warehouse to allow the entry of authorised employees/visitors to the designated zone and confirming that a governed mechanism is set in place to achieve that, in addition to images showing the tools used for this purpose.
    Images of the goods and how they are distinguished in the designated zone/warehouse.
    Evidence that the transactions relating to the stock are being logged in the system regularly and that stock reports are issued and approved by the warehouse keeper.
    Monthly financial reports for 12 months on the value of excise goods in the designated zone and the Excise Tax amount as per the advertised price.
    Monthly average of the price of the excise goods held at the end of each month in the designated zone and the Excise Tax amount on the advertised price.
    Estimate of the amount of Excise Tax which will be suspended in relation to the excise goods entered into the proposed designated zone.
    Financial guarantee and official letter of undertaking specifying the person who will deliver the financial guarantee to the FTA (only to be submitted once the FTA notifies the taxpayer of the required financial guarantee amount).
    Passport/Emirates ID of the authorised signatory.
    Proof of authorisation for the authorised signatory.
    Accepted file types are PDF, JPG, PNG and JPEG. The individual file size limit is 5 MB.
    Required Forms: 
    Below are the templates that should be used for capturing stock levels required for the Designated Zone Financial Guarantee calculation. 
    Stock of Cigarettes Produced
    Stock of Tobacco Products other than Cigarettes 
    Stock of All other Excise Finished Goods

  • Procedures and Steps
    Step 1 – Please check the eligibility criteria, required documents and Frequently Asked Questions.
    Step 2 – Complete and submit the online application form.
    Step 3 – Provide the financial guarantee required to the FTA upon request.
    Step 4 – Pay the Designated Zone registration fees upon request
     
  • FAQs
    1. Can I save the 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, your application will be automatically cancelled. There will be reminder notifications sent to your registered email/verified mobile.

    2. Who can submit the application to FTA?
    The application can be submitted to FTA by you, your tax agent or legal representative. 

    3. Can a single application be applied for registering multiple designated zones?
    No. A Designated Zone registration application can be used to register one Designated Zone application. However, you can submit a Designated Zone registration application while another Designated Zone registration application is in review with the FTA.  

    4. Should the Warehouse Keeper specify the activities related to excise goods and the excise goods that are expected to be within the designated zone(s) under their supervision? 
    Yes. Activities related to excise goods as well as the categories of excise goods which are expected to be in the designated zone(s) under the Warehouse Keeper’s supervision, should be specified in the Warehouse Keeper registration application. Note that once the activities and excise goods are specified under the Warehouse Keeper registration application, the same activities and excise goods will appear under the Designated Zone (DZ) registration application. If under the DZ registration application the Warehouse Keeper decides to add new activities or new excise goods, the Warehouse Keeper will have to go back to the Warehouse Keeper registration and make the necessary amendments there before being able to add the new activities/excise goods under the DZ registration application.
      
    5. How can I upload the data related to the calculation of the DZ financial guarantee? 
    Data required for the DZ financial guarantee calculation may be entered manually into the system while submitting the application. However, the FTA has created standardized templates that can be used easily by the applicant to include the required data for the financial guarantee calculation and then upload these templates onto the system. Once uploaded, the system will auto-populate into the relevant fields in the application

    6. What should I expect after I submit my application?
    1. Processing your application:
    a) Your application will be reviewed by us. If additional information is required to assist the review of the application, we will contact you via email. You will be required to provide such additional information within the stipulated timeframe
    b) Upon completing the review of the application, we will either approve or, in some cases, may have to reject the application. We will notify you via email its decision on your application.
    c) Where an application is rejected, we will provide reason(s) for doing so. You may reapply but only once you have resolved the matters brought to your attention.
    2. Designated Zone Inspection: 
    a) The FTA may conduct physical inspection at your designated zone location, the inspection appointment shall be communicated via email and SMS notification informing you of the inspection details. You need to accept and confirm the inspection appointment request from your EmaraTax account.
    3. Providing a Financial Security:
    a) You will be required to provide a financial guarantee in relation to your Designated Zone registration application. The FTA will determine the value of the guarantee to be provided and maintained by you. We will notify you by email and SMS with details of the value of the guarantee required.
    b) Follow these steps in order to provide the guarantee:
    a) Visit your bank and create an electronic Guarantee, or a Bank Guarantee for the amount requested by the FTA. Upload a scanned copy of the guarantee with additional details and send it to us from your EmaraTax account. 
    b) Bank Guarantees must be delivered to FTA office in hard copy. The person delivering the bank guarantee must also hold a letter of undertaking issued by the authorized signatory of the applicant verifying their details. 
    4. Paying the Registration Fee: 
    a) Once the FTA has verified your Designated Zone registration application and bank guarantee, you will be notified to make the required payment. You can pay the registration fee for the Designated Zone you are registering from your EmaraTax account using the e-Dirham payment. On payment, you will receive an email and an SMS notification informing you of the status of the application and payment status. Once the FTA confirms acceptance of your application, you will be notified on the decision. 
    5. Designated Zone Registration Certificate and Registration Numbers: 
    a) Following approval of your Designated Zone application, a Designated Zone number shall be issued and notified to you via email.  If this is your first Designated Zone, the Warehouse Keeper number shall be issued together with your Designated Zone. You can download the below certificates from your EmaraTax account:
    • Designated Zone Registration certificate.
    • New/Updated Warehouse Keeper Registration certificate (depending on whether this is you first Designated Zone or not)
    7. What is the process for adding an already registered DZ from one Warehouse Keeper to another?
    The DZ registration application includes an option for transfer for ownership. In-order to transfer a DZ from the supervision of Warehouse Keeper 1 to Warehouse Keeper 2, the Warehouse Keeper 2 needs to input the Warehouse Keeper 1’s registration number and the registration number of the DZ that needs to be transferred. Post submission of the application, Warehouse Keeper 2 should share the application reference number with Warehouse Keeper 1. Consequently, Warehouse Keeper 1 will have to submit a DZ deregistration application mentioning the Warehouse Keeper 2’s DZ registration application reference number. 

    8. 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 the FTA
    • Rejected: Your application form has been rejected by the FTA
    • Awaiting Financial Guarantee: Your application form has been reviewed by FTA and awaiting financial guarantee submission
    • Awaiting Payment: Your application form has been reviewed by FTA and awaiting Designated Zone registration fees payment
    Approved: Your application form has been approved by the FTA and your tax records have been successfully updated
  • Terms & Conditions
    The information given below is intended to help determine your eligibility to apply for this service:
    • Warehouse Keeper (WHK) is registered with the FTA and has a valid WHK Number and WHK Certificate OR the WHK status is “Awaiting DZ Linking”.
    • WHK is supervising or is going to supervise another designated zone which requires the FTA’s approval.
    • A designated zone is any fenced area intended to be a free zone that cannot be entered or exited except through a designated road, and any area designated by the FTA as being subject to the supervision of a Warehouse Keeper. A designated zone for Excise Tax purposes can be:
    - A free zone that meets the following conditions:
    - as security measures in place to restrict entry and exit of individuals and movement of goods to and from the Designated Zone.
    - The Designated Zone is controlled and supervised by a Customs department.
      - A Warehouse Keeper has been appointed for the Designated Zone.
    - Any area specified by the Authority provided it meets the following conditions:
    - It is a specific geographic area.
    - It has security measures in place to restrict entry and exit of individuals and movement of goods to and from that area, according to controls specified by the Authority.
    - A Warehouse Keeper has been appointed for it.



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Page last updated: : Wednesday, February 01,2023
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