Registration of Custom Clearance in the UAE

VAT clearing companies have a special reference number known as TINCO or C/O TRN that is issued by the UAE Federal Tax Authority (FTA). This number is particularly important for Custom Clearance companies that may experience import suspensions such as temporary admissions in which a financial guarantee must be tendered to the FTA so as to be able to avail of VAT exemptions. If a Custom Clearance company/agent has a TINCO registration, he can offer a guarantee for these transactions t0 help the importer to receive back his deposit after exporting his goods out of the UAE.

Mandatory requirement For Registration of Custom Clearance: –

VAT registered companies and groups only can file applications for registration of TINCO. It is mandatory for VAT clearing companies to file an application before the Federal Tax Authority (FTA) by entering into an agreement of tax services. An amount of guarantee is also demanded while doing this registration process as well.

Key Advantages of TINCO Registration

A company with a TINCO registration can benefit from several advantages:

• Facilitating Imports: It can handle imports for non-registered person and the person who has made VAT suspension arrangements.
• VAT Suspension: The VAT payment can be paused by a company up to the guarantee value deposited to the FTA.
• VAT Release: Such situations allow stating that VAT is released when the goods leave the UAE.
• Handling VAT Payments: It means that the company can recover VAT on behalf of importers for the goods utilized in the UAE and manage the payment process.

Application Submission and Review

The application may be made by a company which is registered for VAT, a tax agent, or any legal representative. The FTA normally requires about twenty business days to review the application once it is finalized. Additional information can be submitted within 60 days from the filing of application in case any extra information is needed by the FTA or applicant himself. If one fails to complete them within this period, a default occurs which leads to the automatic rejection of the application.

Step by Step Process: – Customs Clearance Company Registration

Phase 1: Getting Started

• Apply Online: Filling out the registration form on the EmaraTax portal.
• Upload Trade License:   Trade license copy is required to upload.

Phase 2: Sending In Documents

• For VAT Clearing Company:
  • Tax Service Agreement stamp, sign and print (two copies) and its Addendum.
  • Drop off these signed documents along with the original Financial Guarantee at the FTA’s Dubai Office.
• For Excise Tax Clearing Company:
  • Simply bring the original Financial Guarantee to the FTA’s Dubai Office.

Phase 3: Finalizing Your Registration

• For VAT Clearing Company:
  • FTA will sign the Tax Service contract and its Addendum. You’ll need these signed documents to wrap up your registration.

Customs Clearance Company Registration

Phase 1: Register for VAT and Excise Tax

• VAT Clearing Company:
  1. VAT Clearing Company Registration form is required to fill out with the relevant details.
  2. Attach a copy of your updated trade license.
  3. Submit your application.
• Excise Clearing Company:
  1. Complete the registration form for Excise Clearing Company with the necessary details.
  2. Trade license copy
  3. Submit your application.

Phase 2: Document Submission

• For VAT Clearing Company:
  1. Tax Service Agreement (two copies) and its Addendum with sign & stamp.
  2. Submit these documents and the Financial Guarantee to the Dubai FTA.
• Clearing Company Excise:
  1. Submit Financial Guarantee to the Dubai FTA.

Phase 3: Start Using the Service

• Once Approved: After your Financial Guarantee is approved, you can start using the service.

Phase 4: Clearing Goods

• Use the Forms: When clearing goods for non-registered importers, make sure to use the appropriate forms.

Steps After TINCO Application Submission

1. Processing: The FTA reviews the application, and if he or she requires additional information, a request is made.
2. Financial Guarantee: The company is also expected to produce a bank financial guarantee from banks and other financial institutions in UAE.
3. Tax Services Agreement: This agreement must be in the form of the FTA Tax Services Agreement which has to be signed by its applicants.
4. Approval: The payments made must reach the relevant authorities and every other requirement to then be given the TINCO number which is posted onto the FTA.

Checking Application Status

The status of the application can be tracked via the company’s EMARATAX dashboard, where updates on the process will be shown, such as:

• Drafted: Still waiting on submitting the application.
• In Review: We are still waiting on the FTA and they are reviewing our application.
• Awaiting Information: More information is needed.
• Pre-Approved: Still this financial guarantee as well as the agreements are still to be submitted in original.
• Approved: The jobseeker submits his or her application, after which the records are changed to reflect the application has been approved.

The above systematic approach makes it a sure bet that only those competent firms benefit from the TINCO system to tackle with or manage VAT implications.

To avail the professional consultancy service of TINCO registration, FAR Consulting Middle East is ready and capable to assist the businesses to carry out the whole process with due simplicity and in the least time possible. Thus, contact us today and we shall be glad to assist you.