JAFZA logistics guide: warehouse racking and storage areas including a cold room

JAFZA logistics guideJAFZA, the Jebel Ali Free Zone, for shippers.

JAFZA, the Jebel Ali Free Zone, is a DP World free zone beside Jebel Ali Port where thousands of companies store, trade and re-export goods. Airlift Logistics, a freight forwarder in Dubai, explains how cargo moves into JAFZA in bond, how goods leave it for the UAE mainland or re-export, and which customs declarations, duty and VAT rules apply to each move.

Key facts

JAFZA at a glance

One of the oldest and largest free zones in the region, built around Jebel Ali Port.

Operator
DP World
Established
1985
Area
About 57 square kilometres
Companies
More than 11,000, according to JAFZA
Next to
Jebel Ali Port (AEJEA)
Nearest airport
Al Maktoum International (DWC)
Road
Sheikh Zayed Road (E11) runs through the zone
Type
Free zone for trading, logistics and light manufacturing
For shippers

Moving goods in and out of JAFZA

The free zone sits outside the UAE customs territory, so each move in or out needs the right declaration.

  1. 01

    Containers for a company in the zone move from the port without paying duty.

  2. 02

    Store, label and repack

    Warehouses in the zone handle storage, labelling and light assembly.

  3. 03

    Goods sold abroad leave on a re-export declaration, with no UAE duty.

  4. 04

    Goods sold in the UAE pay duty and VAT when they leave the zone.

  5. 05

    GCC road freight

    Trucks to Saudi Arabia and Oman can load directly in the zone.

  6. 06

    Air via DWC or DXB

    Air exports are trucked to Al Maktoum or Dubai International airport.

Pallet being shrink-wrapped in a Dubai free zone warehouse before re-export
Pallets prepared in a free zone warehouse for re-export.
Customs status

Free zone customs moves at a glance

Each type of movement uses its own Dubai Customs declaration.

MovementWhat happens
Port to the free zoneTransfer in bond, no duty paid
Free zone to UAE mainlandImport declaration, 5% duty on most goods plus VAT
Free zone to another countryRe-export declaration, no UAE duty
To another free zoneFree zone to free zone transfer in bond

VAT on goods inside designated zones follows Federal Tax Authority rules. Check your case with a tax adviser.

Compare

Free zone or mainland: the differences

Where your company is licensed changes how goods are cleared, taxed and sold.

PointJebel Ali Free ZoneDubai Airport Free ZoneDubai mainland
Next toJebel Ali PortDubai International AirportAnywhere in Dubai
Duty on arrivalNone while goods stayNone while goods stay5% on most goods
Selling in the UAEImport declaration on exitImport declaration on exitDirect
Best forSea freight and regional stockAir cargo and high valueLocal sales
Re-exportDuty-freeDuty-freePossible, under duty refund rules

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JAFZA questions, answered

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It stands for Jebel Ali Free Zone. It is a free zone in Dubai run by DP World, set up in 1985 beside Jebel Ali Port. Licensed companies can import, store, trade and re-export goods without paying UAE customs duty while the goods stay inside the zone.

  • It is next to Jebel Ali Port.
  • More than 11,000 companies are based there.

Only goods entering the UAE mainland pay duty. When a company in the zone sells goods to a buyer in the UAE, the goods leave on an import declaration and pay customs duty, usually 5%, plus VAT. Goods re-exported to another country leave on a re-export declaration and pay no UAE duty.

  • Transfers to other free zones stay in bond.
  • Keep records of every movement.

Yes, but the goods must clear customs first. The free zone seller or its forwarder files an import declaration, and duty and VAT are paid before the goods reach the mainland buyer. Some free zone companies sell through a mainland distributor instead. The right route depends on both companies' licences.

  • Check licence activities first.
  • We file the declaration for you.

The zone is close to Al Maktoum International Airport. DWC, the cargo-focused airport at Dubai South, is a short drive away, and Dubai International (DXB) is further, across the city. This makes sea-air routings practical, with cargo landed at Jebel Ali and flown out from DWC.

  • Check which airport your airline uses.
  • Trucks link both airports.

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Customs status

Free zone status

JAFZA is treated as outside the UAE customs territory. Goods can enter, be stored and leave again for abroad without UAE customs duty.

Duty on entry
None while goods stay in the zone
Duty on exit
Only when goods enter the UAE mainland
Licence
Companies hold a JAFZA licence

Source: JAFZA

Customs move

Release to the mainland

Goods sold from JAFZA to a buyer in the UAE leave the zone on an import declaration and pay duty and VAT.

Duty
5% on most goods, on the CIF value
VAT
5%
Buyer
Usually a mainland-licensed company

Source: Dubai Customs

Customs move

Re-export from JAFZA

Goods stored in JAFZA and sold abroad leave on a re-export declaration, without UAE duty.

Duty
None in the UAE
Routes
Sea from Jebel Ali, air from DWC or DXB, road to the GCC
Documents
Invoice, packing list, re-export declaration

Source: Dubai Customs

Tax

Designated zone VAT

Some UAE free zones, including parts of JAFZA, are designated zones for VAT, with special rules for goods moving within and between them.

Set by
Federal Tax Authority
Applies to
Goods in listed designated zones
Check
Your case with a tax adviser

Source: Federal Tax Authority

Sources

Sources for this page

We check rules and codes on this page against these official and public sources. How we check our content.

JAFZA
jafza.ae
DP World
dpworld.com
Dubai Customs
dubaicustoms.gov.ae
Federal Tax Authority
tax.gov.ae