Dubai Logistics City (DLC) – Non- Designated Zone

Dubai Logistic City is home to Dubai Logistics City (DLC), world’s first multi-modal integrated logistics platform. DLC incorporates more than 25 sq. km of free zone and serves every transport mode, logistics need and value-adding operation in the supply chain, including manufacturing and assembly, all within a single-bonded, free zone environment.

With a capacity to turn over 12 million tons of air cargo annually, Dubai Logistics City is strategically located alongside the world’s biggest airport, the new DWC Al Maktoum International Airport and adjacent to one of the world’s largest container handlers, Jebel Ali Port and Free Zone.

DLC is ideal for businesses such as:

  • Companies with multi-modal transportation needs
  • Corporations seeking professional logistics environments and free trade facilities
  • Range of innovative, value-added logistics services
  • Businesses requiring speedy air freight, multi-modal transportation and complex logistics services

Companies can establish distribution centers in DLC, replenish them via land, air or sea and deliver to customers using the most cost and time effective methods.

Dubai Logistic City provides an office park as well as land along the DLC access road that can be developed to host a wide range of service businesses. The office park is located in the heart of Dubai Logistics City as part of a landscaped campus. It is part of the free zone but situated outside the customs bonded area, thus combining the free zone operational advantages with easy and unrestricted public access.

The office park provides more than 400,000 sq. m of rentable office space. DLC supplies modular office space to allow utmost flexibility. Sections of 100 sq. m can be combined to create larger integrated offices or even merged into entire floors.

This allows companies to easily set up their local operations, administrative offices, showrooms and customer facing facilities or entire head offices. Multi-level car parking ensures easy access to all 18 office blocks and a dedicated road network links the DLC office park to the Emirates Road.

Services

Destined to become another of Dubai’s outstanding commercial landmarks, Dubai Logistics City supports the emirate’s market leading position as a logistics hub for the wider Middle East and beyond. It serves the growing needs of multinational companies involved in a range of different fields such as:

  • High-tech and electronics
  • Spare parts and after-sales
  • Healthcare and life sciences
  • Consumer goods and fashion
  • Relief aid and NGOs

DLC serves every transport mode, logistics need and value-adding operation in the supply chain, including light manufacturing and assembly, all within a single-bonded free zone environment. It is a transit hub linking continents and markets such as Asia, Europe and Africa by providing:

  • Air-air transport to connect even remote sources with core world markets
  • Sea-air transport to ensure on-time delivery within intercontinental supply chains and keep costs under control
  • The option to combine transit with customization, packaging or labeling of goods and other value-adding services

The service providers, forwarders, integrators and airlines within the community provide a total package of professional logistics solutions to a wide range of industries like trading companies, light manufacturing and assembly businesses. Air cargo from the existing Dubai International Airport will be linked to DLC via bonded and professionally operated road and rail corridor. This scheduled resource will operate round-the-clock, several times an hour, delivering cargo directly to the heart of the DLC business community.

Benefits

  • 100% ownership with no taxation and 100% repatriation of capital and profits
  • World’s first truly integrated logistics and multi-nodal transport platform with the favorable tax and regulatory advantages of a free zone
  • Any type of businesses possible
  • Commercial independence and flexibility needed to deliver world-class logistics services for every kind of process and every kind of customer.

Value Added Tax (VAT):

Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.

Who should register for VAT?

A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipated  that the total value of taxable supplies exceed AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.

What is a designated zone?

A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.

a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)

What is a non-designated zone?

Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.

What transactions are subject to VAT within Designated zones?

a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.

What government/free zone fees (License/Visa/rent) are subject to VAT?

In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.

If you need additional assistance or have any questions, please contact the following:
Email: legal@jitendragroup.ae
Tel: +971 4 343 8022