Manufacture of knitted and crocheted apparel

Manufacturing is a Qualifying Activity under the Free Zone regime. Forensic audit focuses on the 'Substantial Transformation' test; the entity must prove that raw materials (yarn/thread) are physically converted into finished apparel within the Free Zone premises using its own or leased assets and employees.

Audit Red Flag

Outsourcing the core 'knitting' or 'crocheting' process to mainland sub-contractors while claiming 0% tax on the final sale.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.