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Major components included sedan tires, batteries, truck and bus tires, fuel filters and clutches. The tariff for radiators and filters is 12 percent and is 5 percent for all other spare parts. 5 percent VAT is applicablefrom January 1, 2018.
Re-Manufactured/Used Auto Parts
Importation of reconditioned/used auto parts is not allowed for sale in the U.A.E., unless reconditioned by the original manufacturer. The reseller is not allowed to claim that the part is the same as an original part. There is no difference in the treatment between remanufactured and used auto parts. This treatment applies to all motor vehicle parts.
Remanufactured/rebuilt parts are generally considered used or semi-used and this is reflected in the pricing. Normally, the warranty period will not be the same as the original, if offered. Used, not remanufactured, parts usually carry no warranty.
Local industry sources believe that there could be potential as there are a number of American cars sold within the U.A.E. and also a number of used American cars are re-exported to other neighboring countries through the U.A.E. Rebuilding of parts in the U.A.E. is limited to auto mechanics offering their clients an extra service in their maintenance of cars.
The 5 percent import duty for new parts also applies to remanufactured or used parts. The use of the company logo as well as the original packing design is not allowed for reconditioned/used parts. As there is a complete difference in packing from the original, advertising costs for resellers of reconditioned/used parts are higher even though the quality of the product is similar. It will not be easy to lend credibility to reconditioned/used parts in this market and a lot of effort would need to be put into the process of establishing a brand.
For Information about exporting to United Arab Emirates contact:
Ashok Ghosh
U.S. Consulate Dubai, United Arab Emirates
Commercial Specialist - Auto & Smart Mobility Team
+971 4 309 4000
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