Voluntary Disclosure Scheme of Dubai Customs

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Dubai Customs has launched a new initiative called the Voluntary Disclosure System (VDS) on 12 June 2024, aimed at enhancing transparency and compliance among companies governed by the customs regulations. The VDS enables companies to voluntarily report any errors or violations in their customs declarations before these discrepancies are identified by the customs authorities. This proactive approach not only fosters a culture of honesty and accountability but also allows companies to rectify mistakes without facing significant penalties.

Overview of the Voluntary Disclosure System

The VDS is designed to encourage companies to come forward with any inadvertent mistakes in their customs declarations. According to the policy outlined by Dubai Customs, companies can disclose errors related to:

• Import and export violations; 
• Customs declaration violations; 
• Transit and warehouse violations; 
• Violations in areas supervised by the customs; 
• Temporary import violations; 
• Re-export violations; and 
• Any other customs violations. 

By voluntarily reporting these errors, companies can eliminate or reduce fines that would otherwise be imposed if the discrepancies were discovered during routine inspections.

Process and Requirements

In order to take benefit of the VDS, companies must submit a voluntary disclosure form through the designated electronic channels provided by Dubai Customs or Dubai Trade. The form must be fully completed, signed by a responsible person, and stamped with the company seal. It should also include detailed information about the violation and any supporting documents.

Once a voluntary disclosure is submitted, companies have 30 days from the date of receiving the financial claim notification to settle the due customs duties. Failure to do so will render the voluntary disclosure request null and void, and the authorities may then proceed with necessary actions.

Key Considerations

While the VDS offers significant advantages, it is important for companies to adhere to certain regulations. Voluntary disclosures will not be accepted if the company is already under investigation, inspection, or audit by customs authorities. Moreover, any additional violations discovered that were not included in the voluntary disclosure will be addressed separately by Dubai Customs.

Benefits 

The VDS offers several benefits to companies. Primarily, it provides an opportunity to correct errors without facing hefty fines, thereby reducing financial burdens. Additionally, this system fosters a cooperative relationship between companies and Dubai Customs, built on trust and transparency. 

Conclusion

The introduction of the Voluntary Disclosure System by Dubai Customs marks a significant step towards promoting transparency, compliance, and trust in the trading community. By allowing companies to voluntarily report and rectify errors in their customs declarations, the VDS not only aids in avoiding fines but also enhances the integrity of customs procedures. Companies are encouraged to take advantage of this system, fostering a cooperative and efficient trading environment.

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