Agri Commodities

Exporting Food And Beverages To The United Arab Emirates

Exporting Food And Beverages

The United Arab Emirates (UAE) has the largest GDP per capita of any country in the Middle East, and it’s growing quickly. To meet the needs of its rapidly expanding population, the UAE government has made attracting business investment a top priority in recent years, and there are many opportunities to capitalize on with exports to this thriving economy. If you’re thinking about exporting food or beverages to The United Arab Emirates, here are five tips to help make your endeavours as successful as possible.

1) What Are The Regulations?

One of the most important things you need to consider when exporting food or beverages (or any type of product) is government regulations. Each country has its own unique regulations regarding what they can import from other countries, how it should be packed, how long it should stay good for, and even if there are any limits on what kinds of products can be imported at all. When you’re researching your target markets, you need to make sure that their import policies align with your intended export strategy. Otherwise, you could end up making a very expensive mistake or losing out on a lot of potential sales.

2) Are You Exempt From Import Taxes?

One common concern of exporters is whether they have to pay import taxes on their goods. In most cases, no, you don’t have to pay them! A good rule of thumb is that if you’re shipping commercial quantities of a product (anything above 1 metric ton) across international borders, then your company won’t be taxed on it. If you’re sending retail quantities from one country into another, import taxes will likely apply, but these are typically very small. However, with you don’t have to worry about anything, you can directly connect with thousands of international buyers and expand your beverage brand internationally.

3) Is Your Business VAT Registered?

If you are importing goods from overseas, you may be able to benefit from a reduced VAT rate. If your business is VAT registered, then you can claim back any VAT incurred on goods imported. This means that you could effectively import goods at zero percent VAT by offsetting your import costs against your input tax, which would allow your total revenue to remain cost-neutral. However, it’s important to note that all businesses with non-alcoholic beverage brands importing goods must also ensure they’re not competing with local businesses within their market—because if they are, then their application will be rejected. Alternatively, if your business isn’t registered for VAT purposes then you may be charged a fixed percentage of 22 percent on all goods imported regardless of whether or not they’re eligible for import relief.

4) Do You Need Additional Licenses?

According to a study by Al Rajhi Capital, The UAE is expected to grow at a CAGR of 8.34% in the food and beverage market by value during 2016–2020. Following this trend, companies dealing with beverages should consider exporting their products across seas. For example, Coca-Cola, PepsiCo, Dr. Pepper Snapple Group Inc., and Red Bull GmbH are some of those involved in promoting their beverage brands worldwide. It might be beneficial to export your beverage brand in order for you to get access not only to other regional markets but also to help you establish yourself as a well-known food or beverage brand name in countries like UAE too where competition might be strong.

5) Who Will Handle Import Permits, Inspections, And Customs Clearance?

When exporting food or beverages into a new country, you must abide by both international standards and local rules. UAE has its own sets of regulations—some of which may differ from those in your home country. For example, exporters are responsible for notifying UAE’s Ministry of Economy that they plan to export certain goods. You can either coordinate with a trade agent or customs broker or choose to handle import permits, inspections, and customs clearance yourself. Whichever route you choose, it’s important to be well-versed in your product category’s specific laws so that you avoid expensive mistakes.

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Exporters and suppliers of Food, Beverage, and Dairy Products are likely to find a good market in The United Arab Emirates. The country is already a major importer/consumer of Food, Beverage, and Dairy products (as well as a significant supplier). Government initiatives also seem to ensure that this trend continues.

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