Abu Dhabi Gold Card Agreement now available on the Customs Website
For further information, please contact:
Hameeda Suleiman Al Jabri [hameeda@dof.abudhabi.ae] or Tel: 050 24443443 or 02 6734680
To download the agreement, click here
ABU DHABI CUSTOMS LAUNCHES PRE-CLEARANCE & “GOLD CARD” PROGRAM AT ADCCI SEMINAR
The Abu Dhabi Customs Administration, at a seminar hosted by the Abu Dhabi Chamber of Commerce & Industry (ADCCI) today, announced their proposed “Gold Card” program.
Explaining the concept of the program, Saeed Al Muhairi, Deputy Director of Abu Dhabi Customs Administration stated, “this new facility is a privileged service to reward compliant and well run businesses in Abu Dhabi with a fast, effective and efficient Customs clearance service. Providing an import or export business maintains the key principles of the Gold Card agreement, Customs will provide an automatic pre-clearance service in accordance with World Customs Organization standards to process customs transactions”.
This initiative is part of a broader overall modernization program that is intended to introduce new and convenient processes and procedures for the benefit of Abu Dhabi companies engaged in import and export business. Sponsored by HE Hamad Al-Hurr Al-Suweidi, the Undersecretary of the Department of Finance, as a pilot modernization program and endorsed by the Executive Council, the program aims to facilitate trade, enhance security and increase revenue from Customs duties.
At the establishment of the Customs Co-operation Committee (a sub-committee of the Trade Committee) at the ADCCI in May 2007, the signatories, HE Mohamed Al Hameli, Assistant Undersecretary of the Department of Finance and HE Hamad Al Awadhi, Chairman of the Trade Committee, confirmed that the agreement was intended to provide a forum for communication and interaction between commerce and the Customs Administration as it progressed its modernization program.
The Gold Card seminar provided an opportunity for the Customs Administration to launch the new service to existing Customs account holders who, having signed an agreement would be able to take advantage of the following:
Submission of electronic Customs clearance documentation (from their place of business) – no further need to submit hard copy documentation or stand in line at a Customs post.
ePayment facilities - electronic payment of consignment duties and or administration fees, and electronic reconciliation and refunds.
Access to a ninety (90) day rolling credit account with Customs.
On-line issuance of consignment clearance details – armed with this information you can quickly clear your consignment.
Be able to print out all clearance documentation.
Be able to maintain transaction records and archive key documents for your business.
The majority of your consignments will pass through Customs without interference and only a small percentage will be randomly inspected.
Business records will be subject to audit by Customs officials on a cyclical basis to ensure compliance with accuracy and related Customs standards.
If error rates in Customs submissions exceed 5%, Customs will agree a compliance improvement plan rather than declining the Gold Card service.
Businesses will have rights to dispute resolution.
In support of the new Customs Service a number of Abu Dhabi based banks also attended the seminar and provided demonstrations of their internet based ePayment services, an integrated part of the overall Gold Card service.
Commenting on the range of other changes at Customs the Deputy Director General encouraged businesses “to explore with Customs the benefits of the modernization program and to freely exercise the opportunity to interact with Customs through the newly formed Customs Co-ordination Committee at the ADCCI”.
New Customs Officer Classification and Uniforms
The proposal to reduce the fourteen staff levels currently used by the Customs Administration that reflect the Civil Service Salary Grades to five levels was approved by the Project Steering Committee and the Undersecretary, Department of Finance has authorized the roll-out of the new ranks.
It has been proposed that the roll-out will coincide with the issues of the proposed new uniforms for Customs Officers, around July 2008. It has been proposed that the existing insignia of rank be reviewed as part of the de-militarization of the existing Customs Officer uniform image. An idea proposed is to have Customs Officer insignia indicated on the name badge along with staff number.
The design company intends to prepare alternative designs following a visit to Abu Dhabi to examine existing uniforms (including other departments) as well as involve the Change Agent Network and other interested parties. The scope will cover male and female, field work and officer work, summer and winter seasons. They will examine appropriate materials and detail the specifications of the finally selected uniforms so that local manufacturing can proceed.
Agreement Signed with UNECE
The United Arab Emirates has signed an agreement with the United Nations Economic Commission for Europe (UNECE) authorizing traders to use in-transit cargo TIR Carnets in the UAE and other GCC countries to facilitate movement of cross-border cargo.
As such, the International Automobile and Touring Club of UAE (IATC), in conjunction with the International Road Transport Union (IRU), has signed an agreement with the Abu Dhabi Customs Administration (ADCA) to implement the system in Abu Dhabi.
Abu Dhabi traders will be able to join the TIR Carnet cargo in-transit system through the IATC which provides for quicker and simpler movement of goods across the borders of those countries which are signatories to the Agreement.
The provision also expedites import-export movements through Abu Dhabi which reduces the time and cost burden on business.
Under normal circumstances, traders will be subject to less stringent requirements in regard to documentation and financial securities and will be allowed to utilize the proposed new Abu Dhabi Customs 'Green Lane' express cargo movement facilities currently being implemented.
Formation of Coordination Committee for Modernization of Customs
The Abu Dhabi Chamber of Commerce & Industry (ADCCI) announces the formation of the new Coordination Committee for the Modernization of Customs (a sub committee of the Trade Committee), that will address the specific needs and interests of the business sector in their interactions with the Abu Dhabi Customs Department.
The committee will provide representation for key interested stakeholders and provide a forum for communication and cooperation between the parties. His Excellency, Hamad Al Awadhi, ADCCI Board Member and the Chairman of the Trade Committee stated; “This declaration of the formation of the Coordination Committee provides an outstanding opportunity for the trading community to interact in a new partnership with the Customs Department”. He went on to say that; “One of our prime considerations is to simplify and streamline Customs procedures”.
The Customs Department is undergoing a modernization program as part of government-wide transformation. The program is planned to take two years and will substantially transform the Customs operations to world-class standards. In addition, the program will introduce new practices aimed at the maximizing the collection of Customs duties and related revenues, enabling the legitimate movement of goods and passengers through Customs posts and minimizing the security risks arising from legitimate international trade and travel.
The new ADCCI committee will create a partnership between the business sector and the Customs Department and provide a wide range of opportunities to discuss, adjust and promote new Customs procedures such as the payment of Customs duties by electronic means (e.g. ePayment). The committee will enable the holding of workshops, conferences and seminars to enable discussions on the simplification of Customs procedures and ensure the introduction of speedy Customs clearance of trade consignments.
A particular focus of the committee will be the provision of special opportunities through the ADCCI Training Centre and the Emirates Academy to train UAE nationals as well as the trading community on new Customs procedures and practices. The committee will also establish for the stakeholders a trade library that will contain information on the required Customs procedures and laws applicable in the GCC.
Representing the Department of Finance, the Assistant Undersecretary, His Excellency, Mohamed Al Hameli stated; “The building of this partnership between Customs and the trading community provides us with a forum for the exchange of ideas so that we can deliver on our commitment to radically improve customer service in government”. He added; “In the near future we will also announce proposed new Customs services. However these will firstly be discussed in the ADCCI forum so that can engage in a consultative process that will benefit all parties”.
DHL EDI Progress
Pre-clearance has already started with the DHL EDI in pilot operation. This means the DHL type system can be used by any other cargo consolidator once an IT link is established between the consolidator and Dhabi manifest module.
Now DHL gets a manifest from overseas about the time that the plane departs and splits it into two portions, one being high and the other low value lists (low value means AED 1000 or less). For low value items the manifest goes straight to Customs who screen it by exception (i.e. all manifest lines are cleared except those specifically held).
This means the majority of most manifests are cleared immediately. They only have to be x-rayed by police and then they can go directly to the importer. The only reasons for holding a consignment are high risk goods either:
v Customs based (consolidation, suspect commodity/supplier, valuation, random check) and this runs at about 10% of shipments,
v Other Agency restricted goods (i.e. DVDs or books must be checked by Ministry of Information, etc.)
For high value imports, if the importer can supply documents then DHL (or any other Agent), can enter and pre-clear the cargo before arrival if they want.
On arrival all pre-cleared cargo goes through the police x-ray machine and then straight out for delivery. Goods held for customs reasons (valuation/origin/etc.) are cleared once x-ray and examination are done. This is done as quickly as possible after arrival. Goods held for non-customs reasons are held pending a visit by the relevant authority for clearance. This may take some time as some authorities only work business hours. So, goods arriving pm Thursday may end up waiting until Sunday for clearance.
Al Dhabi enhancements - Electronic Refunds, Transit Vehicles and Bonded Warehouses
Refunds to Gold Card clients can now be remitted by electronic payment (e-Payment) via ADCB. Accounts section now has access to the e-Payment solution that will avoid the need to prepare and sign-off refund cheques arising from the balancing and reconciliation of duty payments.
This solution, once in full operation, will further remove paper from the current business processes and help to streamline and simplify the Customs operations for our clients.
Shortly, the Al Dhabi functionality will be enhanced with Transit Vehicle and Bonded Warehouse functionality.
Bonded Warehouses
From recent correspondence to the Abu Dhabi Customs Administration (e.g. some x80 letters) we understand that a wide range of companies have shown interest in being granted a Bonded Warehouse License for a specific and appropriate facility. We are contacting these companies to further assess what are their specific interests and needs in this respect.
Customs bonded warehouses are intended to facilitate trade and allow importers to defer payment of duty on goods until it is entered for home consumption in the UAE, or the goods are re-exported. Licensed warehouse goods may be released on duty payment or transferred without payment of Customs duty (taxes) to another Licensed warehouse or designated port, airport, land border, free zone, economic zone, or exported.
An importer, therefore, can store goods until duty (tax) is paid upon withdrawal from the licensed warehouse, or transferred elsewhere.
A Customs Licensed warehouse is "a place or facility wherein the goods are deposited under supervision of the Administration free of Customs duties (taxes) according to the provisions" of the GCC Common Customs Law 2003 (item 36 page 15).
There are two types of licensed warehouses:
Public Warehouses
Private Warehouses
Public warehouses are managed and owned by private companies but supervised by the Customs Administration and are available to any trader or broker who has the right to dispose of goods. The person can be the importer, any other person to whom the goods have been sold while in the warehouse or other persons (natural or legal ) having title to the goods or the legal right to dispose of them. If the goods are not accounted for correctly to Customs at any time then the Customs Administration deals directly with the Warehouse licensee not the owner or importer.
Private warehouses are managed and owned by private companies but supervised by the Customs Administration. Private warehouses are approved for the deposit of goods, both duty (tax) free and dutiable, but owned by the warehouse licensee only.
Companies interested in pursuing investigations on this Customs trade facilitation initiative, have been requested to respond to the following questions:
Are you interested in a Private or Public Warehouse/s?
Do you have any idea of the total warehouse special requirements? (provide size in m2)?
Would you be interested in the provision of accessible and serviced land on which you would build your own warehouse?
In terms of new build facilities do you have any preference for a particular location – indicate where?
When the Customs Administration has some idea of the demand for such facilities we will explore further the alternative methods of implementing this trade facilitation proposal.
Companies wishing to apply for a Bonded Warehouse Licence for an existing facility you should be aware of the typical security and related requirements and conditions that such a License would require. Such companies have been offered sight of the proposed draft license conditions.
“Customs Technical Projects”
In line with international best practice Customs in Abu Dhabi is now formalizing several technical projects that take advantage of the historic knowledge and experience of its staff.
This is being done to concentrate efforts on identified high risk importers and exporters while allowing those who comply with the law much quicker processing than in has occurred the past.
Quick processing is important to ensure that Abu Dhabi retains and improves on its reputation as a good place to do business because the cost to a business of delayed clearance is often higher than the customs duty paid.
Each of these projects is being introduced initially at a single site. This is done so that all of the possible problems can be worked out and solved there. Then the project can be spread across Abu Dhabi as facilities become available to do so.
The first of these projects fully operational is the successful construction of new safe and comfortable gantries for the extended implementation of “Greenlane” facilitated truck clearance at the Ghuweifat Border Post. This has enabled low risk vehicles to be quickly cleared in a separate area from other vehicles that need more intensive searching.
Another project, currently under trial involves screening air cargo manifests and bills of entry before the aircraft arrive in Abu Dhabi. By doing this customs can research and plan in advance for examinations. As an example Police Drug Dogs can be called for before suspect goods arrive ensuring much better cargo control.
The third project soon to come on line is “Goldcard” which is an extension of the “Greelane” system. In this identified reliable importers will be allowed clear their goods without always submitting their documents but still providing a Dhabi declaration. Their reliability will be confirmed by random checks and by in depth post transaction audits carried out at the importer’s premises by customs auditors.
In each case the reward for a compliant trader is quicker clearance. The reward for customs is better information and control over cargo.
Outsourcing of Document Scanning and Archiving
In January 2008 the contract for Customs document management will commence (one year contract). This will initially focus on scanning the 2006 and 2007 Customs clearance documentation – some 2,5 million pages of data. This documentation will be scanned and entered into the Customs database for use by the Audit Policy and Commercial Compliance Section (Old Audit Section) and physically stored off-site in professional environment controlled storage facilities, for four years.
All existing Customs clearance documents submitted by Traders, Brokers, Shipping Agents and Owners will be collected from Customs posts by the Archiving contractor. These documents will be scanned at a central professional scanning facility and archived in the Customs electronic database. These scanned documents will be returned to the legal owners (Traders, Brokers, Shipping Agents and Owners) within one month, and they will be required to store and manage this material for up to five years in accordance with GCC law.
Software, provided by LaserFiche will be used to search and access the Customs database and this facility will be provided to the Risk management and Commercial Compliance Section to enable electronic management of the data. Notices to Traders, Brokers, Shipping Agents and Owners will be set to Customs posts for display on counters. As the processing of Customs clearance procedures moves to the planned electronic form (Gold card pre-clearance) the volume of paper hard copy submissions will decrease and in due course the document scanning contract will no longer be required.
Customs has exceeded expectations
An independent survey (Wave III) of Abu Dhabi Customs Service Standards has been conducted by lpsos for the Ministry of Presidential Affairs that shows “the Customs Department has by fair exceeded all the expectations and was able to change all the dissatisfaction factors from waves 1 and 2 into drivers of satisfaction and delight”.
Such achievements are tangible benefits that have accrued from the Customs Modernization Program thus far and provide substantial justification for the cost, impact of doing the restructuring and benefits of such programs.
Source: (Nobody’s unpredictable, Ministry of Presidential Affairs- Public satisfaction Study with Government Services provided in the Emirate of Abu Dhabi Finance Department – Customs Administration, August 30, 2007)