Key Excise Terms as per the Federal Decree Law No (7) of 2017 on Excise tax.

A. What are Excise goods?

Excise Goods: Goods that will be determined as being subject to Tax by a Cabinet Decision upon the recommendation of the Minister.

  • Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
  • Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink.

Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.

B. What is a Business?

Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, which involves or may involve trading in Excise Goods.

C. What is Import and who is an importer?

Import:The arrival of Goods from abroad into territory of the State.

Importer: The Person whose name appears for customs clearance purposes as the importer of the Excise Goods on the date of Import. These would include a person who imports excise goods as defined under Excise goods.

D. What is Export?

Export: The departure of Goods from the territory of the state.

E. Who is a Taxable Person?

Any Person registered or obligated to register for Tax purposes under the provisions of this Decree-Law. This would imply any person who is engaged in activities relating to Excise goods such as:

a. Production of Excise Goods in the State, where such production was in the course of doing business.
b. Import of Excise Goods.
c. Release of Excise Goods from a Designated Zone.
d. Stockpiling of Excise Goods in the State, where such Stockpiling was in the course of doing business.

F. What is a Designated Zone?

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 Authority as being subject to the supervision of a Warehouse Keeper, in accordance with the Executive Regulation of this Decree-Law. Eg. Jebel Ali Free Zone, SAIF Free Zone.

G. Who is a Warehouse Keeper?

Any Person approved and registered at the Authority to supervise a Designated Zone in accordance with the Executive Regulation of this Decree-Law.

H. Who is Stock Piler?

The Person who owns Excise Goods and cannot demonstrate that such goods had been previously subject to Tax pursuant to the conditions stated in the Executive Regulation of this Decree-Law.

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