Dubai Customs has changed its customs procedures for cross-border e-commerce transactions. Under the regulation that entered into force on August 3, 2026, products and shipments with a value not exceeding AED 1,000 ($272) will be exempt from customs duties. The new measure aims to reduce costs in the e-commerce sector, improve the efficiency of commercial transactions, and support the competitiveness of Dubai’s business environment.

Dubai Customs Raises the Exemption Threshold to AED 1,000

The change announced by Dubai Customs was implemented under Customs Notice No. 16 of 2026. Accordingly, products imported for personal purposes through companies, cargo operators, or cross-border e-commerce channels and valued at AED 1,000 or less will not be subject to customs duties. Companies wishing to benefit from the regulation must align their registration and operational processes with the new provisions.

Tobacco, Electronic Cigarettes, and Alcoholic Products Excluded

Dubai Customs’ duty exemption will not apply to all product categories. Tobacco and tobacco derivatives, electronic cigarette devices and accessories, nicotine-containing liquids, alcoholic beverages, and food products containing alcohol have been excluded from the new regulation. Existing customs duties and related import provisions will continue to apply to these categories.

60-Day Requirement for Returned Products

Products purchased for personal purposes and returned after being sent abroad through companies will also be exempt from duties under certain conditions. It will be necessary to document that customs duties were previously paid for the product and that the shipment was returned within 60 days of the export date. If these conditions are not met, standard customs procedures will apply.

Company Registrations to Be Handled by the Customer Happiness Department

Under the new measure, the addition of companies to the customer registration system, the recording of their activities, and their inclusion on the platform will be handled by the Customer Happiness Department. Any disputes that may arise during the implementation of the regulation will fall under the responsibility of the Legal Affairs Department.

Dubai Customs stated that the change forms part of its approach to attracting investment, facilitating cross-border digital trade, and reducing the operating costs of e-commerce companies. The authority called on companies seeking to benefit from the regulation to take the necessary steps to comply with the new rules.

The new tax exemption for cross-border e-commerce came into effect on August 3, 2026, as one of the updated practices within the cross-border e-commerce infrastructure developed by Dubai Customs.