Why Свободна зона and Mainland Trade Are Treated Differently
A Свободна зона is a geographically and legally defined business jurisdiction with its own licensing authority and operating rules.
A Свободна зона company is authorised to conduct activities under its Свободна зона лиценз. Its лиценз does not automatically become a mainland commercial лиценз.
When goods move from a Свободна зона or Designated Zone into the mainland, the movement can also trigger:
The commercial contract and physical movement of the goods must be planned together.
"Свободна зона" and "Designated Zone" are not interchangeable terms for ДДС purposes.
A Свободна зона is established under the relevant ОАЕ legal and licensing framework.
A Designated Zone is a specific area recognised under a Cabinet Decision for particular ДДС treatment, provided the applicable conditions are satisfied.
Every Designated Zone is associated with a Свободна зона framework.
- Customs clearance
- Customs duty
- Import ДДС
- Importer-of-record responsibility
- Product-registration requirements
- Municipality controls
- Conformity requirements
- Excise Tax where relevant
- Warehouse and transport documentation
- Свободна зона Does Not Always Mean Designated Zone
- Therefore:
- Route 1: Sell Through a Licensed Mainland Distributor