MD 1/2025 — Customs codes and concentrate Excise Price under CD 52/2019

Factual summary

Replaced MD 236/2019 from 3 January 2025. Liquids for electronic smoking devices are taxed under the relevant codes of Chapter 24 of the GCC common goods schedule, and electronic smoking devices under listed 12-digit Chapter 85 codes, now including electrically heated cigarette devices and parts other than batteries. The Excise Price rule for drink concentrates mixed by retailers is restated unchanged: the higher of the FTA price list and the declared selling price to the retailer less the Tax included.

What it means in practice Professional insight

Who: importers of vaping devices, heated-tobacco devices, parts and liquids, and suppliers of drink concentrates. What to check: the HS code under which each device or part is declared, the records supporting the declared selling price of concentrates, and whether CD 197/2025 changes the treatment from 1 January 2026.

Key provisions

• Art. 1 For Excise Tax on liquids used in electronic smoking devices and tools, whether or not containing nicotine, the relevant harmonized system codes of Chapter Twenty Four of the Common Schedule for Classification and Coding of Goods for the GCC countries in force in the State apply.
• Art. 2 Electronic smoking devices and tools, whether or not containing nicotine or tobacco, are taxed under Chapter Eighty Five codes: 85 43 40 10 00 00 (electronic cigarette devices for reusable use), 85 43 40 20 00 00 (electronic water pipe 'shisha'), 85 43 40 30 00 00 (electrically heated devices for cigarettes), 85 43 40 90 00 00 (other), and parts 85 43 90 91 00 00, 85 43 90 92 00 00 and 85 43 90 93 00 00 (for those devices, excluding batteries under item 85 07) and 85 43 90 98 00 00 (for other smoking electronic devices).
• Art. 3(1)–(2) The Excise Price of concentrates, powders, gel or extracts that a retailer turns into carbonated, energy or sweetened drinks by mixing is the higher of the Authority's published price list (if applicable) and the Designated Selling Price to the retailer declared by the importer or producer before any discounts or offers, less the Tax included under Art. 13(2) of Cabinet Decision No. 52 of 2019; for that mechanism the 'Designated Selling Price' is the 'Designated Retail Sales Price'.
• Art. 3(3)–(4) Other concentrates, powders, gel or extracts take the Excise Price under Art. 13(1) of Cabinet Decision No. 52 of 2019; the Taxable Person must keep records evidencing the Designated Selling Price, any deductions on it and the quantities sold.
• Art. 4 Repeals Ministerial Decision No. 236 of 2019 on the implementation of Cabinet Decision No. 52 of 2019, and every provision that violates or conflicts with this decision.
• Art. 5 Published in the Official Gazette and effective from the date of its issuance (3 January 2025).