Introduction

When applying for your designated zone registration its mandatory to have the information presented in a suitable format for the online application. Keep in mind that not all the documents listed below may be needed for the renewal. Only the documents evident tot the amendment will be submitted as part of the application.

List of Documentation Required:

• Documents showcasing the capabilities of your stock and record management system.
• Documents describing the process that will be adopted to the entry and removal of Excise Goods to/from your Designated Zone.
• Documents explaining the measures that are put in place to control the access of personnel to your Designated Zone and the excise goods within it.
• Documents conveying to identify and monitor the entry of excise goods into your Designated Zone from which no Excise Tax has been paid.
• Documents explaining how to assess the arrival from or transfer to another Designated Zone of excise goods from which no Excise Tax has been paid.
• Documents stating information required for calculating the financial guarantee for your Designated Zone.
• Warehouse Keeper’s annual financial statements for the latest year ended.
• Copy of Ministry of Human Resources and Emiritasation (“MOHRE”) certificate as evidence for Number of persons employed by the Warehouse Keeper.

Examples of the above-mentioned documents are as follows:

• An official site plan for your warehouse, stamped and signed by the free zone authority and giving the plot number.
• Detailed warehouse design, with the engineering consultant’s and the authorized signatory’s signatures and stamps, indicating the locations and categories of items held (both excise and non-excise).
• The flow and transportation of excise goods. This describes the methodical transfer of excise goods into and out of your Designated Zone. For instance, when excise goods arrive through Gate 1, they are examined by security, enter the Designated Zone, and the documentation for any production taking place there is handled. When excise goods escape through Gate 2, the documentation for the exit is processed.
• A letter (signed and stamped by the authorized signatory) on the letterhead of your Warehouse Keeper that provides a thorough description of the inventory system in use in your Designated Zone and includes screenshots of the system.
•  A declaration outlining the specific steps used to move or shift excise items, including the entry and exit of those goods into and out of your designated zone.

The applicant must offer sufficient proof to demonstrate that each of the following physical security requirements is met:

• The physical site has adequate storage space for at least the average month-end holding stock reflected in the registration form.

• The designated zone should require that the excise goods to be kept in separate and clearly marked identifiable locations.

• The entrances and external doors of the facility should be made of rigid material and equipped with appropriate security systems such as keypad code locks or electronic locks and all access through the freight doors should be monitored by CCTV cameras or security personnel.

• Windows are fixed with barriers to prevent access and removal of the excise goods.

• Alarms or anti-theft or anti-intrusion systems are configured to detect unauthorised access outside business hours. These systems are connected to a security monitoring point such as a security office on the site.

• A health and safety certificate should be issued by the UAE Civil Defense to convey the warehouse building is fit for operations.

• The designated zone should have external fencing preventing any unauthorized access. The fencing should be of appropriate height to prevent any illegal entry through, over, or under it, and is maintained in good condition.

• Every entry/exist point such as gates are to be fixed with either barriers or security systems that prevent illegal entry.

• The premises are guarded by trained security personnel. The warehouse keeper retains information on the security guards on site, such as their duty timings and shift, job duties, and information of their supervisor overseeing the overall security of the premises. Security checks should be conducted at the gates by the security personnel for anyone exiting the premises.

• The warehouse keeper should have access to logs that convey the details of persons that accessed the premises, including authorised personnel and visitors.

• External and internal security lighting should be installed every entry and exit point, storage area, parking and holding areas. The lighting is adequate to ensure that every part of the area is illuminated to showcase a clear identification of persons through the CCTV system.

• The designated zone should be covered by a strong CCTV monitoring system that covers all the entry and exit points including all the storage areas. It’s advised that the surveillance system be capable of real-time recording, automatic archiving, night vision cameras and high-quality video recording that can store at least 60 days of recording.

• Letter stating the procedures and measures implemented in the warehouse to allow the entry of authorised employees/visitors to the Designated Zone and verifying that a governed mechanism is instilled to achieve that, in addition to graphics showing the tools used for this purpose.
• Illustrations of the goods and how they are distinguished in the Designated Zone/warehouse.
• Proof that the transactions regarding 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 the duration of 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 for each month end in the Designated Zone and the Excise Tax amount on the advertised price.
• Estimate of the amount of Excise Tax that will be suspended with relation to the excise goods entered to the 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 Warehouse Keeper of the required financial guarantee amount).
• The authorised signatory’s Passport or Emirates ID.
• The authorised signatory’s proof of authorization.
• Warehouse Keeper’s yearly financial statements for the latest year concluded.
• Copy of Ministry of Human Resources and Emiratization (“MOHRE”) certificate as a proof for Number of persons employed by the Warehouse Keeper.

In conclusion, careful attention to documentation and compliance to rules are required for the renewal process for an Excise Tax Designated Zone in the UAE. Businesses can guarantee a smooth renewal process by presenting the necessary documents that illustrate the capabilities of stock and record management systems, clarify the entry and removal processes of excise goods, highlight measures for controlling access, and specify procedures for monitoring tax compliance.

The application is made stronger yet by including the necessary financial statements and job credentials. These conditions must be met in order for firms to continue operating inside the Excise Tax Designated Zone, comply with applicable laws, and contribute to the UAE’s overall fiscal system.