What is an Exit Certificate?

An Exit Certificate for Goods is an official document issued by UAE ports to confirm that all goods being exported have met all the necessary requirements and standards for departure. It is also known as a Customs Exit Certificate or a Shipment Release Certificate, and it is mandatory for every shipment to obtain this certificate before leaving any UAE port.

The Exit Certificate serves as proof that the shipment has fulfilled all the legal and administrative requirements and has complied with all the rules and regulations of the port authorities. It confirms that the goods have been inspected, cleared for export, and that all relevant taxes, duties and fees have been paid.

Which Ports in UAE is it mandatory to have Exit Certificates? and why?

All ports in UAE require Exit Certificates for goods leaving the country. This includes all major ports, such as the Port of Jebel Ali, the Port of Abu Dhabi, the Port of Sharjah, the Port of Fujairah, and the Port of Khalifa.

The requirement for Exit Certificates is in accordance with UAE’s regulations and international trade rules and standards. It is essential for ensuring the safety and compliance of goods leaving the ports and helps to prevent the export of illegal or prohibited goods. The main reason for this is to ensure that the shipment has been examined by the relevant authorities and found to be in compliance with all relevant export regulations and standards.

For goods, the Exit Certificate ensures that the shipment has undergone customs clearance and has met all relevant export regulations and standards. It also confirms that all taxes, duties, and fees have been paid and that the shipment is ready to leave the port.

The Exit Certificate is also important for ensuring that the export process is smooth and efficient, avoiding any delays or complications that could affect trade and business operations. Additionally, it helps to prevent the export of illegal or prohibited goods and ensures that all exports comply with international trade rules and regulations.

What does the law interpret for Exit Certificates?

In UAE, the requirement for Exit Certificates for goods leaving the ports is governed by Federal Law No. 13 of 2006 on Ports. The law provides for the establishment, management, and regulation of ports in UAE and sets out the rules and procedures for the movement of ships and goods in and out of the ports.

In addition, as per clause 4 (a) of the Article No. 30 of The Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax amended by Cabinet Decision No. 99 of 2022, the Official Evidence of the goods exiting the country is an Exit Certificate. All other documents like Airway bill, Bill of lading, Consignment note, Certificate of shipment etc. constitutes Commercial Evidence.

Under the law, all ships and goods leaving the ports must comply with all relevant regulations, standards, and requirements, including obtaining the necessary permits and certificates, such as the Exit Certificate for goods.

The law also sets out the powers and responsibilities of the port authorities in regulating the movement of ships and goods, including the inspection and verification of ships and cargoes, the imposition of fees and charges, and the enforcement of penalties for non-compliance.

Overall, the law interprets the requirement for Exit Certificates in UAE ports as an essential element of ensuring the safety, security, and compliance of goods leaving the ports, and for facilitating international trade and business operations.

What is the Process of Obtaining an Exit Certificate?

Overall, the Exit Certificate is a crucial document that helps to ensure the safety and compliance of goods leaving UAE ports and plays an essential role in facilitating international trade and business operations.

The process of obtaining the Exit Certificate for Goods in UAE ports typically involves several steps, which may vary depending on the nature and type of the goods being exported. Here is a general overview of the process:

1. Submission of Export Documents: The exporter must submit all necessary documents, including the commercial invoice, packing list, bill of lading or airway bill, and any other documents required by the port or relevant authorities.
2. Customs Clearance: The goods must undergo customs clearance, which involves inspection and verification of the shipment’s details, including its value, quantity, and classification. The exporter may be required to pay customs duties, taxes, and fees.
3. Inspection and Certification: The shipment must be inspected by the relevant authorities to ensure compliance with all applicable regulations and standards. If the goods are subject to specific regulations or certifications, such as food or pharmaceutical products, they must obtain the necessary certificates from the relevant authorities.
4. Obtaining the Exit Certificate: Once the shipment has been cleared by customs and inspected by the relevant authorities, the exporter can apply for the Exit Certificate for Goods. This involves submitting the necessary documents and paying any fees or charges.
5. Issuance of the Certificate: Once all requirements have been met, the port authorities will issue the Exit Certificate for Goods, which confirms that the shipment is ready to leave the port and has met all necessary requirements and standards.

It is important to note that the process of obtaining the Exit Certificate for Goods may vary depending on the specific port and the type of goods being exported.

What happens when companies do not have Exit Certificates?

If companies do not have the Exit Certificates for ships or goods, they may face various consequences depending on the specific circumstances and the severity of the non-compliance. Here are some potential consequences:

1. Delay in Departure: The port authorities may refuse to allow the ship or goods to leave the port until all necessary requirements have been met and the Exit Certificate has been obtained.
2. Fines and Penalties: Companies may be fined or penalized for non-compliance, including failure to obtain the required documents or violating any regulations or standards.
3. Legal Action: In severe cases of non-compliance, companies may face legal action, including civil or criminal charges, depending on the nature and severity of the violation.
4. Loss of Reputation: Non-compliance can also result in a loss of reputation and credibility for the company, which could affect its ability to conduct business in the future.
5. Risk of Seizure: In some cases, non-compliance could lead to the seizure of the ship or goods by the port authorities, resulting in further delays and costs for the company.

It is essential for companies to obtain the Exit Certificates for ships and goods to avoid any potential consequences, including delays, fines, legal action, and damage to reputation. Companies should work closely with freight forwarders or customs brokers to ensure compliance with all applicable regulations and standards and to obtain all necessary documents before departing from UAE ports.

As per the current practice of the FTA, any export not supported by an Exit Certificate is treated as local sales and the same is taxed on the standard rate. FTA may make an assessment based on the same and may penalize the companies accordingly.

Summary:

In summary, the Exit Certificate for Goods is a crucial document that verifies the readiness of a shipment to leave the port and ensures compliance with all applicable regulations and standards. It is required to avoid any delays or complications during the export process and to ensure that the shipment reaches its destination without any issues. Exit Certificates are mandatory for all goods leaving UAE ports, and failure to obtain them could result in delays, fines, penalties, legal action, and damage to your reputation.

As your trusted consultant, we offer assistance in obtaining the necessary Exit Certificates for your goods. Our team of experts is well-versed in the regulations and procedures related to port operations and shipping, and we have extensive experience in dealing with the relevant authorities and obtaining the required permits and certificates.

By working with us to obtain your Exit Certificates, you can rest assured that your goods will be in compliance with all relevant regulations and standards, and that they will be able to leave the port smoothly and on time. We will handle all the paperwork and procedures on your behalf, saving you time, effort, and potential headaches.

Don’t let the lack of an Exit Certificate hold you back from exporting your goods from UAE ports. Contact us today to learn more about our services and how we can help you obtain the necessary documents and permits for your shipments.