Issue
Every designated zone in the UAE is required to have an appointed warehouse keeper who is responsible for overseeing the operation of the designated zone and ensuring that the conditions and security requirements imposed over the designated zone continue to be met. A warehouse keeper must apply to the Federal Tax Authority ("FTA") to be authorised to oversee a designated zone.
This Public Clarification provides more details on these conditions and criteria to register as a warehouse keeper and to register or renew the registration of a designated zone, effective from 1 April 2023.
Summary
Any person who operates, or intends to operate a designated zone for Excise Tax purposes (also known as an excise), must register as a warehouse keeper and register each of the designated zones that he supervises or intends to supervise.
As part of the designated zone's registration or renewal of registration request, the warehouse keeper is required to:
Specify the types of excise goods that are or will be kept in the designated zone.
Specify the quantity of excise goods which is or will be kept in the designated zone.
Provide a financial guarantee in respect of the excise goods stored or to be stored in the designated zone.
Provide proof that adequate physical security measures in respect of the designated zone were implemented.
Provide proof that it maintains a stock and record management system which tracks goods moving into and out of the designated zone as well as transfers between designated zones.
Failure to meet these requirements may result in the rejection of a new application or suspension of the registration of a designated zone, i.e. suspension of all imports of excise goods as well as the production of goods in the designated zone.
The designated zone's registration is valid for 12 months and must be renewed before the expiry of this period.
If the warehouse keeper fails to renew the designated zone's registration before the end of the 12-month period, the designated zone registration status will become 'suspended' for 20 business days and then 'expired'.