Global Automotive Export Resource Guide | Page 237

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are especially popular in the U.A.E. and there is a high level of interest in off-road and desert driving. Larger vehicles are popular in order to accommodate large families, and the Detroit Three excel in this competitive segment, particularly the larger SUV market.

Given the U.A.E.’s (both nationals’ and expatriates’) high disposable income levels and an interest in classic, modified and luxury vehicles, there is great demand for specialty performance and appearance products. U.S. companies command a leading position in the supply of transmissions, tuning and high-performance parts and kits, steering, suspension, and brake components and parts.

All cars and buses entering UAE have to abide by safety regulations issued by the Emirates Authority for Standardization and Metrology (ESMA). In addition, the following rules must be adhered to:

-Head restraints in all seats and air bags for the driver and the front passenger are compulsory for all

passenger cars and buses with capacity up to 22 passengers.

-Safety belts and Anti Braking System (ABS) are required in all new vehicles. Extra seats in the aisles

are prohibited for any motor vehicle with a riding capacity of four people or more.

-Every vehicle must have an alarm to notify when drivers exceed speed limit of 120 km in cars and

100 km on buses.

In addition, all vehicles must be exported from the country of manufacture and steering wheels must not be modified. There must be no damages on the outer body and vehicles must be accident free.

Truck approvals are conducted at the GCC level by the GCC Standards Organization which is based in Riyadh, KSA. The product should be first approved by GSO before the truck CAN be exported to GCC countries, including the UAE. U.S. truck manufacturers or exporters may contact the office below for approval:

Conformity Assessment Department

G.C.C Standardization Organization (GSO)

Tel: +966 1 274 66 55 ext. 333; Fax: +966 1 210 53 90

E-mail: [email protected]

Tariffs: The tariff applied to cars is a 5% customs duty (on value of the vehicle plus 1% insurance plus cost of the shipment). For trucks, the customs duty is 12%.

Taxes: No Luxury Tax or special consumption tax currently exists on vehicles. However, the U.A.E. government has imposed a 5 percent VAT from January 1, 2018 on vehicles sold in the country.

Barriers: The U.A.E.’s trade policy has been consistent with its obligations under the WTO. There are few trade barriers, viz. automotive parts should not contain asbestos, and products should not have been manufactured or transited through Israel.

Local Standards Requirements:

-Technical regulation for Small Series Production Vehicles (SSPV’s) - ESMA Draft

-GSO Standards tests for motor vehicle spare parts: UAE Scheme for Automotive Spare Parts

-GSO Standards tests for multipurpose tires: http://www.gso.org.sa/

U.S. Tire suppliers must ensure that RFID labels are affixed on their tires before entering to UAE market. For more information about RFID labels, please see: UAE Tire Labeling Scheme.

Import Requirements:

UAE Ports for shipment of vehicles are Jebel Ali (in Dubai), Abu Dhabi and Sharjah.

-Original Bill of lading - make, model, chassis number, engine number, color and type of car.

-Export certificates issued by the Traffic Department (Title of ownership), Commercial Invoice

- Copy of Passport with residence permit/UAE visa endorsed on passport

-Report on Car Condition from load U.S. port

-Insurance policy

Upon arrival, vehicles are subject to inspection/evaluation by Customs Authorities in the U.A.E. Vehicle Clearance Certificate (V.C.C.) are then provided for each vehicle upon clearing customs which should be then submitted to the Traffic Police for vehicle registration.

market entry