Understanding DTS Stamps – Overview

What is DTS Stamp?

The Digital Tax Stamp (DTS) is a control solution that delivers a unique pack marking and encoding to allow product traceability from point of manufacture through to the final Emirate of distribution and to support enforcement activity targeting the reduction in illicit Tobacco & Tobacco products trading. Currently, this scheme is in place for Cigarettes, Shisha and Other Tobacco products that are manufactured or imported for sale within the UAE mainland or Duty-Free. The DTS stamp helps tax authorities and enforcement to reduce illicit trade, control the volume of products distributed and comply with international obligations.

DTS STAMPS

Requires Tax stamp

• Products for consumption in UAE require DTS stamps
• Products which are manufactured locally or internationally and are for sale in the UAE mainland & Duty-free.
• In Duty-free arrival, the products should have the local market stamps which is red in colour while duty-free departure should have stamps in green colour.

Does not require a tax stamp

• Imported products for immediate export do not require tax stamps, International manufactured products are brought into a free zone or designated zone for immediate export outside the UAE.
• Products which are manufactured locally (within the UAE) for export purposes.

Process of DTS Stamps

1. The producer/importer will place the order for the stamps through De La Rue
2. Approval/rejection of the order will be decided by the Tax Department administrator
3. The stamps will be dispatched by De La Rue to the manufacturer of the goods
4. The manufacturer will apply the stamps and activate the stamps, ready for dispatch
5. The importer or producer will make the necessary declarations to the FTA such as EX201 (import)/EX202B (Production) declarations prior to the goods’ arrival or release.
6. For import, customs clear the goods and received by the importer
7. Supply chain agents track the shipments based on the shipment ID
8. FTA Enforcement agents can authenticate and trace products.

Note

Electronic smoking devices and liquids and tools are subject to Excise tax, however, the tax stamps haven’t been implemented yet on these products. Thus, it is the duty of the person dealing in Electronic smoking devices and the liquids and tools to ensure the necessary tax is paid, regardless if you are not an importer, producer or not registered TRN holder.