INTERNATIONAL TRADE FACILITATION

BUSINESS SET-UP IN ABROAD

INTRODUCTION:

When policymakers talk about “trade facilitation”, they are referring to a specific set of measures that streamline and simplify the technical and legal procedures for products entering or leaving a country to be traded internationally. As such, trade facilitation covers the full spectrum of border procedures, from the electronic exchange of data about a shipment to the simplification and harmonization of trade documents to the possibility to appeal administrative decisions by border agencies. In a globalized world where goods often cross borders many times as both intermediate and final products, trade facilitation helps lower overall trade costs and increase economic welfare, in particular for developing and emerging economies.

The trade facilitation objectives were introduced in the international agenda basically because of four main factors-

1) The successful implementation of the trade liberalization policy within the WTO frameworks caused the significant reduction of tariff and non-tariff barriers, that is common for developed countries (the average rate of customs duty from 4,5% to 6,5%, the share of duty free HS subheadings in customs tariffs from 29,2% to 53%). This reduced the revenue functions of customs and thus, the possibility of simplifying customs procedures with a moderate level of risk for national revenue opened up for a significant number of states.

2) The reduction of customs tariffs has caused the situation where the amount of import duties has become commensurate or even lower than trade transaction costs (TTC) with regards to compliance with customs and border formalities, since the latter are estimated on various data ranging from 1.5% to 15% of the transaction value. Respectively, trade transaction costs has started to be considered as the main trade barrier in the conditions of liberalized market access.

3) The industrial development in the modern global world based on the Global Value Chains (GVC) has transformed a cross-border movement of goods. Today, up to half of the total imports and exports of developed countries are “intermediate goods”, which are components of the corresponding GVCs. Accordingly, the cost of customs borders for business has increased significantly.

4) The expansion of production processes based on the principles of Just-In-Time (JIT) and of e-commerce shipments, which increased the requirements for the speed release of goods by customs.

TRADE AGREEMENTS ENTERED INTO BY DUBAI

The UAE became a contracting party to the General Agreement on Tariffs and Trade in 1994, and subsequently became a member of the World Trade Organization in April of 1996.

The UAE has signed GCC Free Trade Agreements with several countries and trade groups across the world to enhance its position as a global trade hub and a major destination for investments. It also seeks to increase Emirati exports, improve competitiveness in foreign markets, regulate competition, reduce trade barriers facing national products, boost its investments abroad, and protect intellectual property rights. This also covers tariff barriers, trade services, investments, intellectual property rights, dispute settlement, investment in manufacturing sectors, and protection of property rights to prevent the trafficking of counterfeit products. 

The UAE is party to several multilateral and bilateral trade agreements, including with partner countries in the GCC (Gulf Cooperation Council).  As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain and Oman, meaning the UAE shares a common market and a customs union with these nations.  Under the Greater Arab Free Trade Area Agreement (GAFTA), the UAE has free trade access to Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia, and Yemen

In addition, the UAE has signed free trade agreements with Singapore (through the GCCs agreement with the nation) and New Zealand, and has engaged in  talks about the establishment of similar arrangements with the Argentina, Australia, Brazil, China, European Union, India, Japan, Pakistan, Paraguay, South Korea, Turkey, and Uruguay.  It has also entered into a number of agreements on the protection and promotion of investment and the prevention of double taxation. 

Start typing to see posts you are looking for.
en English
X

YOU ARE WELCOME!

We, the LegalLands LLP , are a family of exceptional professionals with expertise in the fields of law, taxation, business administration, consultation services, etc. We understand your problems and work to the best of our abilities, tailoring our knowledge and expertise to your specific interests and needs, to arrive at the best suitable solutions to your problems. Our aims are to cater to your needs rather than viewing these needs as opportunities to enrich ourselves at your cost!
We have a great and enthusiastic work culture that promotes and invests in our Human resources, turning them into our assets, by carefully nurturing them in a process of symbiosis, thereby deriving benefits to the firm, the personnel, and the clients.
LegalLands LLP, and its team of professionals over a very short span of time, have amassed a huge plethora of achievements, knowledge base, expertise, and client base that stands second to none in the varied fields in which we offer our professional services. We thank all those who were part of our journey and progress through these years and we especially thank our client base for their continuous and unwavering faith in us.
We look forward to many more engagements with you which keep adding value to your lives.
Together and onwards we march on toward new milestones in our illustrious journey.

RAJIV TULI

Managing Partner

Legallands LLP