What is a designated zone/excise warehouse?

A designated zone is a warehouse, zone or area inside the UAE where the Excise tax will not be applicable. It is also known as an excise warehouse.

Goods held in these designated zones and the transfer between them will not be subject to Excise tax. The tax will be only imposed when these goods leave the designated zone and enter free circulation in the UAE.   The FTA takes the responsibility to register and approve an area to be a designated zone. FTA will also appoint warehouse keepers for particular zones, and thus they will be in-charge over that zone.