UAE: More than 3.5 million illegal products hidden in clothing shipments during the major FTA raids in Dubai. world News
- The FTA smuggled over 3.5 million in Dubai.
- Hidden tobacco and beverage products did AED in 133.2 meters of tax liability.
- Advanced tracking technology and joint enforcement promoted the success of RAID.
In a decisive step to curb tax evasion and protect consumers, a team of the Federal Tax Authority (FTA) seized more than 3.5 million illegal product goods during a large -scale inspection operations in Dubai. The raid on Monday included a sophisticated plan, fraudulently packed tobacco and beverage products, which were deliberately hidden and smuggled in the UAE market, according to a report by the Emirates News Agency (WAM).
Smuggling operation hidden within clothing and shoes shipment
Illegal goods were found hidden within the labeled shipments in the form of clothes and shoes, intentionally attempted to ignore tax rules and smuggle excise products in the country. The FTA described the activity as a clear violation of the UAE tax laws, especially those who were mentioned on excise tax and subsequent amendments in the Federal Law No. 7 of 2017. All seized products are now permanently seized. A detailed tax evaluation was done, and non-transporting institutions have been fined significant fine. Legal proceedings are also going on.
Details of seized goods and financial impact
According to the FTA, the operation exposed sufficient cash of excise goods, with the total number of seized items exceeded 3.5. million. The breakdown of the seized goods is as follows:
- 1.56 million pack cigarettes
- 1.77 million packs of electronic smoking devices and accessories
- 111,360 packs of raw tobacco
- 4,000 packs of hookah tobacco
- 121 packs of nicotine pouches
- 4,600 packs of excise drink
The total tax liability on these goods was calculated at AED 133.2 million ($ 36.27 million), which reflects the scale of tax evasion attempt.
FTA technology-interacted compliance strategy
The Federal Tax Authority emphasized that this operation is part of comprehensive monitoring efforts, performed in collaboration with relevant local and federal institutions. The authority continues to adopt advanced electronic control mechanisms, including digital taxes on tobacco and tobacco related products. These tickets are embedded with electronically registered data, allowing FTA inspectors to verify that the correct excise duty has been paid. This system align with international best practices and is important for the UAE strategy to implement tax compliance. The FTA reiterated that the rules should be strictly followed by applying legal punishment, heavy fines and goods to the stockists of producers, importers, and excise goods.In the United Arab Emirates, excise items, such as cigarettes, head tobacco, electronic smoking equipment, e-liquids, are strictly regulated under the Federal Decree of Law 7 of 2017 and Cabinet Decision Number 52 of 2019, which applies 50–100 % excise tax rates on these harmful products. It is illegal to import, hide or supply them without legitimate digital tax stamp and proper registration and is subject to heavy punishment The Federal Tax Authority, a government unit established to manage tax matters in the United Arab Emirates, plays an important role in maintaining the implementation, collection and enforcement of taxes, and all the seven Enemies include promoting economic growth, effective, transparent compliance in their missions to prevent illegal activities in the field of excise duty in seven amrit.
