Dubai Customs announces temporary customs duty installment plan and 80% fine reduction

Dubai Customs permits temporary import-duty instalments and up to 80% fine reductions

Dubai Customs permits temporary import duty instalments and up to 80% reduction on eligible customs fines, with defined application windows and repayment terms.

Dubai Customs announced two temporary measures on 21 May 2026 to ease financial burdens on traders and support trade activity in Dubai. The measures introduce a time-limited instalment option for import duties and a separate scheme offering up to an 80% reduction on qualifying customs fines. Businesses and importers are being urged to review the eligibility criteria and application deadlines to benefit from the relief.

Scope of the instalment facility

The instalment option is limited to import declarations with invoices dated between 1 March 2026 and 30 July 2026. Applicants must hold a valid credit account with Dubai Customs and secure prior approval before using the facility. Approved instalment plans must be completed within one year from the date the request is accepted.

Payment under the instalment scheme may be made through approved channels, including direct debit and cheques, or other payment methods recognized by Dubai Customs. Requests to use the instalment facility are to be submitted to the Financial Department by email or in person at Dubai Customs’ headquarters in Mina Rashid, with the final submission date set at 30 September 2026.

Details of the fine-reduction programme

The second measure provides a temporary reduction of up to 80% on monetary penalties in eligible customs cases issued before 28 February 2026. The reduction applies only to fines and does not cover customs duties, service fees, administrative charges, or other monetary amounts. Cases already fully paid are excluded from the reduction scheme.

Those seeking the fine cut must apply to the Financial Department following the procedures outlined by Dubai Customs. The deadline to submit reduction requests is 31 December 2026, and approvals are conditional on meeting payment and documentation requirements.

Payment conditions and finalisation of reductions

Approvals for fine reductions require immediate settlement of 20% of the remaining fine amount after the reduction is applied. In exceptional cases, Dubai Customs may permit the 20% payment to be paid in instalments, provided the full outstanding balance is settled no later than 30 June 2027. The reduction becomes final only after full payment of all dues, including any non-fine amounts that remain payable.

Dubai Customs has retained the right to cancel an approved reduction or instalment plan if conditions are breached, including default on payments or emergence of administrative or judicial disputes. Cancellation may lead to reinstatement of full collectible amounts and reactivation of recovery procedures.

Exclusions and dispute limitations

The programmes do not apply to fines or cases already under consideration by the Dubai Government Legal Affairs Department, the courts, the public prosecution, or law enforcement bodies, unless the necessary approvals are obtained under established controls. The relief cannot be combined with amicable settlement procedures governed by Article 151 of the Unified Customs Law.

Applicants may, however, submit a reduction request after the conclusion of an administrative or judicial dispute, provided the request is lodged before the scheme’s deadline. Requests submitted after the specified dates will not be considered under these temporary measures.

Administrative procedures and oversight

Dubai Customs will process applications through its Financial Department in accordance with the published conditions and safeguards. The authority has set explicit timelines for submission and completion to ensure orderly implementation and to protect public revenue. Relevant departments within Dubai Customs are responsible for operationalising the two announcements within their areas of competence.

The authority also reserves the discretion to suspend or withdraw the measures and to take escalation actions, such as collection and recovery steps, where justified by non-compliance or other legal grounds. These controls are intended to balance facilitation for traders with the protection of fiscal and regulatory integrity.

These temporary measures form part of a broader package of economic incentives designed to support trade and business activity in Dubai. They are presented as targeted, time-bound relief to assist compliant traders facing payment pressures while preserving the customs system’s enforcement mechanisms.

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