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