Designated Zone refers to a place where excise goods are stored in a secured area, without the goods immediately attracting the tax burden, and the taxes on such will be collected only at the time of removing the goods from the zone. This comprehensive guide prepared by FAR Consulting Middle East explains the step-by-step process and documentation required to register a Designated Zone successfully.
Application by the Warehouse Keeper
The businesses should, before commencing the registration of the Designated Zone, apply for the ‘Warehouse Keeper’ application at the EMARATAX Portal. It is only after the FTA has approved the said application that the company can apply for the said registration of the zone.
Instituting Aspects of Security: – The companies must ensure proper control of goods and people in motion, which requires: the installation of
- CCTV Cameras
- Biometric scanners
- Security Personnel
Proof of such control measures shall be submitted in the application and shall demonstrate that the zone complies with FTA requirements.
Record and Stock Management System: – Besides security controls, the business has to ensure that there are proper stock and record management that accounts for
- Moving of goods in and out of the Designated Zone.
- Transfers of goods between the various designated zones
This contributes a lot in ensuring that excise goods are kept under proper monitoring and auditing, therefore maintaining transparency.
Detailed Documentation: – Apart from the general Designated Zone (DZ) registration application, applicants have to submit various documents and information, such as:
- Type and quantity of the excise goods to be stored
- Projected closing stock for the next 12 months
- Tax evasion declaration letter
- Particulars of the staff as well as the assets held with the Warehouse Keeper
This comprehensive documentation ensures that the business is in compliance with all lawful regulatory requirements as set by the FTA.
Submission of Application: – Once all the required information and documents are prepared, a company can directly apply for the Designated Zone (DZ) Registration through the EMARATAX Portal, which takes approximately 45 minutes. After that, the FTA may request additional documentation or a financial guarantee, which can also be submitted online or in person at the offices of the FTA.
FTA Review and Inspection: – Upon submission, the information submitted will be reviewed by the FTA, which may:
- Request more documentation or security
- Conduct a physical tour at the Designated Zone to ascertain the security and bookkeeping measures.
Approval of Designated Zone (DZ) Registration: – Once an application is approved, the approved Designated Zone (DZ) Registration Certificate, which must include the following, shall be issued to the Warehouse Keeper via the EMARATAX Portal:
- Name with complete address of the Warehouse Keeper
- The Designated Zone Registration Number
- The type of excise goods that are allowed to be stored.
- The date of registration and the details concerning its renewal
Frequently Asked Questions
- What is a Designated Zone? A Designated Zone is an area that is secure and provides storage for excise goods with tax obligations postponed until goods are moved out of the zone.
- What is the minimum requirement of the security for a Designated Zone? The FTA requires the monitoring of people and goods transportation within the Designated Zone with CCTVs, biometric scanners, and security personnel.
- How does the processing of DZ registration take place? While using the EMARATAX Portal, only 45 minutes are required to complete the application.
- Does the Designated Zone come in the ambit of FTA’s inspection? Yes, before the issuance of approval for the Designated Zone registration, FTA may conduct an inspection for the purpose of ensuring that necessary security and record-keeping measures are in place.
Conclusively, Designated Zone registration is quite a complex process, thus, businesses are advised to seek the expert services of top Tax Consultants in UAE, such as FAR Consulting Middle East to effectively ensure seamless operation and compliance with designated zone regulations. Thus, contact us today and we shall be glad to assist you.