Dubai Customs has amended its rules for cross-border e-commerce, raising the value threshold for duty-free goods and giving businesses more time to return already-taxed items to cut costs and boost competitiveness in the sector.
Under the revised rules, goods and products with a value not exceeding Dh1,000 will be exempt from customs duties.
However, the exemption will not apply to tobacco and tobacco products, electronic smoking devices and their equipment and accessories, liquids containing nicotine, alcoholic beverages, or food preparations containing alcohol.
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It came into effect on August 3, 2026, and companies wishing to benefit from its provisions have been told to bring their operations into compliance.
Dubai’s e-commerce sector continues to expand steadily, even as broader Gulf online retail contracted in early 2026.
The UAE’s e-commerce market kept growing in the first half of 2026, with gross merchandise value (GMV) up two per cent year-on-year, even as GCC-wide e-commerce GMV fell nine per cent over the same period. In the long term, the UAE’s broader retail sector is projected to grow from $145.3 billion to $227.1 billion by 2033, reinforcing e-commerce’s growing share of the economy.
Longer window for returned goods
The notice also extends the timeframe for duty-exempt returns.
Goods returned through companies for business-to-consumer (B2C) purposes, where customs duty has already been proven to have been paid, will now be exempt from duty if returned within 60 days of their date of exit.
The notice also amends Article 11 of the original 2021 notice, setting out administrative responsibilities. Client Happiness Management will handle the registration of companies, the addition of their activities to the customer registration system, and their enrolment on the platform.
Legal Affairs will be responsible for considering and resolving any disputes arising from or connected to the implementation of the notice.
Dubai Customs said the amendments form part of its broader push to enhance the competitiveness of the business environment, attract investment, and reduce costs for the e-commerce sector, with the aim of improving the efficiency of trade operations.
Source: Khaleej Times