Dubai Import Tax: Rates, Exemptions, and Procedures (2026 Guide)

Dubai sits at the crossroads of three continents. Every year, hundreds of billions of dirhams worth of goods pass through Jebel Ali Port, Dubai International Airport, and dozens of specialized free zones. This flow is supported by a tax and customs framework that is transparent, predictable, and highly efficient.

However, “business-friendly” does not mean there is nothing to know. If you are importing goods into Dubai in 2026, three separate charges could apply: Customs Duty, Value Added Tax (VAT), and Excise Tax. Getting these right means faster clearance and accurate pricing; getting them wrong triggers regulatory scrutiny and financial penalties.

Key Takeaways

• Customs Duty: Standard rate is 5% of the CIF (Cost, Insurance, Freight) value.
• VAT: Charged at 5% on the CIF value plus any applicable customs duty.
• Excise Tax: Features a Tiered Volumetric Model for sweetened drinks as of 2026.
• HS Codes: Transitioning to 12-digit codes for enhanced accuracy.
• Free Zones: Goods are not subject to duty or VAT until they enter the UAE mainland.

What Is Dubai Import Tax?

Import tax is the collective term for the mandatory charges levied by the government on goods brought into the UAE from abroad. In Dubai, this system is managed by two primary regulatory bodies: Dubai Customs, which oversees physical clearance and the collection of customs duties, and the Federal Tax Authority (FTA), which administers Value Added Tax (VAT) and Excise Tax across all seven emirates.

Who is Liable to Pay?

The responsibility to pay import taxes falls on any party bringing goods across the UAE border. This includes:

• Registered Businesses: Companies importing raw materials, machinery, or finished inventory for local sale.
• Commercial Traders: Wholesalers and e-commerce entities moving goods through Dubai for regional distribution.
• Individuals: Private passengers or residents receiving international shipments. If personal items or gifts exceed the duty-free allowance (typically AED 300 for courier shipments), the individual recipient is liable for the applicable charges.

The Purpose of Dubai’s Import Tax Framework

The UAE’s taxation strategy is not merely about collection; it serves three strategic pillars:

1. Revenue Diversification: It generates vital non-oil government revenue, supporting the UAE’s transition toward a sustainable, knowledge-based economy.
2. Market Regulation: By enforcing the GCC Common Customs Tariff, Dubai ensures a fair and transparent playing field for international trade while protecting the integrity of the local market.
3. Public Health & Industry Protection: Excise taxes act as a public health instrument by discouraging the consumption of harmful products. Simultaneously, certain tariffs and exemptions are designed to protect domestic industries and ensure the steady supply of essential goods.

Components of Dubai’s Import Tax System

This approach focuses on clarity and impact, ideal for a brand or a high-end service. It balances modern innovation with a grounded, reliable foundation to ensure lasting results. 

Customs Duty 

Customs duty is the fee levied by Dubai Customs on goods entering the UAE from outside the GCC. Calculated on the CIF value, the rates are standardized across the region but categorized by the nature of the product.

Product Category	Duty Rate	Key Examples
Standard Goods	5%	Electronics, apparel, furniture, and auto parts.
Alcoholic Beverages	50%	All types of spirits, wines, and beers.
Tobacco Products	100%	Traditional tobacco and cigarettes (separate from Excise).
Exempt / Essential	0%	Medicine, basic food staples, and books.

Pro Tip: In 2026, the transition to 12-digit HS codes is mandatory. A minor classification error can lead to a “Customs Suspense” status, delaying your shipment by days.

Value Added Tax (VAT) 

VAT is a federal tax managed by the FTA. For imports, the 5% VAT is not just charged on the cost of the goods; it is charged on the “taxable base,” which includes the CIF value plus any customs and excise duties already applied.

Key 2026 VAT Updates for Importers:

• End of Self-Invoicing: As of January 1, 2026, businesses are no longer required to issue self-invoices for reverse charge imports. Instead, you must maintain robust digital records and proof of value for FTA audits.
• 5-Year Refund Limit: A strict five-year hard deadline now applies to claiming input tax. Any VAT paid on imports that is not claimed within 5 years from the end of the tax period will be forfeited.
• E-Invoicing Integration: All import VAT transactions must now be reconciled through the FTA’s centralized e-invoicing platform to ensure real-time compliance.

Excise Tax 

Excise tax is applied to “harmful” goods. The most significant change in 2026 is the shift from a flat tax on beverages to a Tiered Volumetric Model based on sugar density.

Product Category	Excise Rate	2026 Specifics
Tobacco & E-Cigarettes	100%	Includes all vaping devices and nicotine liquids.
Energy Drinks	100%	Any drink containing stimulants like caffeine or taurine.
High-Sugar Drinks	AED 1.09 / Litre	Beverages with 8g or more sugar per 100ml.
Moderate-Sugar Drinks	AED 0.79 / Litre	Beverages with 5g to 8g sugar per 100ml.
Low-Sugar / Diet	AED 0.00	Beverages with less than 5g sugar per 100ml.

Implication for Importers: Under the 2026 rules, carbonated drinks are no longer a separate category with a flat 50% rate. They are now taxed strictly based on their sugar content. Importers must provide certified lab analysis reports to qualify for the lower AED 0.79 or AED 0.00 tiers.

How Is Dubai Import Tax Calculated?

Calculating the total landed cost of an import in Dubai requires a step-by-step approach. Taxes are not simply added to the invoice price; they are calculated sequentially, where each tax builds upon the previous one.

Understanding CIF Value

The “Taxable Value” of any import into Dubai is its CIF Value. Even if you purchased goods on an FOB (Free on Board) or EXW (Ex-Works) basis, you must adjust the value for customs purposes to include the following three components:

1. Cost: The actual transaction price paid for the goods as per the commercial invoice.
2. Insurance: The cost of the insurance premium paid to cover the goods during their transit to the UAE.
3. Freight: The total cost of transportation (sea, air, or land) from the point of origin to the arrival port in Dubai.

Regulatory Note:Dubai Customs uses the CIF value because it represents the total value of the goods at the moment they enter the UAE’s economic zone. 

If insurance or freight costs are missing from your documentation, customs authorities may apply a “benchmarked” percentage to estimate these costs.

The Calculation Formula

To find the total tax liability for 2026, theFederal Tax Authority (FTA) and Dubai Customs require a compounding calculation:

1. Customs Duty = CIF Value × 5% (Standard Rate)
2. Excise Tax (If applicable) = (CIF Value + Customs Duty) × Excise Rate
3. VAT Base = CIF Value + Customs Duty + Excise Tax
4. VAT (5%) = VAT Base × 5%

Total Import Tax Payable = Customs Duty + Excise Tax + VAT

Worked Example (Electronics Import)

Suppose a business imports a shipment of laptops with the following details:

• Invoice Value of Goods: AED 100,000
• Shipping/Freight Costs: AED 4,000
• Insurance Premium: AED 1,000

Step	Component	Calculation	Result
A	Determine CIF Value	100,000 + 4,000 + 1,000	AED 105,000
B	Customs Duty (5%)	105,000 × 0.05	AED 5,250
C	Excise Tax	Not applicable to electronics	AED 0
D	Calculate VAT Base	105,000 (CIF) + 5,250 (Duty)	AED 110,250
E	VAT (5%)	110,250 × 0.05	AED 5,512.50
Total	Total Tax Due	5,250 + 5,512.50	AED 10,762.50

Strategic Considerations for 2026

1. VAT Recovery: If your business is VAT-registered with the FTA, the AED 5,512.50 paid in the example above is generally recoverable as “Input Tax” on your next VAT return. However, the AED 5,250 Customs Duty is a non-recoverable cost and should be factored into your product’s margin. 2. Digital MAKASA: As of early 2026, all such calculations and payments must be processed via the Dubai Trade Portal under the new Digital MAKASA initiative, which allows for real-time digital settlement of duties for direct imports. 3. 12-Digit HS Code Alignment: Ensure your calculation uses the specific duty rate tied to the mandatory 12-digit HS code. Even standard electronics can occasionally fall under “dual-use” or restricted categories that carry different duty treatments.

Dubai Import Tax Rates by Product Category

Dubai’s tax system differentiates goods based on their impact on health, the economy, and local industry. Accurate classification using the Integrated Customs Tariff is essential to avoid overpayment or legal penalties.

Tax Rate Summary Table (2026)

Category	Customs Duty	VAT Rate	Excise Tax	Examples
General Goods	5%	5%	None	Electronics, Apparel, Furniture
Alcohol	50%	5%	None	Spirits, Wine, Beer
Tobacco Products	100%	5%	100%	Cigarettes, Cigars, Raw Tobacco
E-Smoking Devices	5%	5%	100%	Vapes, E-liquids, Heating Tools
Energy Drinks	5%	5%	100%	Stimulant-based beverages
High-Sugar Drinks	5%	5%	AED 1.09/L	>8g sugar per 100ml
Essential Goods	0%	0% or 5%	None	Medicine, Basic Food Staples

General Goods (5% Duty)

Most commercial items, such as household appliances, textiles, and industrial spare parts, fall under the standard 5% rate. As of February 2026, all such goods must be declared using the new 12-digit HS Code system. 

This provides “extreme accuracy” in categorization, which Dubai Customs uses to speed up the clearance process through the Mirsal 2 system.

Alcoholic Beverages (50% Duty)

Alcohol remains one of the highest-taxed categories. While the customs duty is a steep 50%, it is important to note that VAT (5%) is calculated on the total value after the duty is added.

Tobacco and E-Smoking Devices (100% Excise)

Tobacco carries a double layer of tax: 100% Customs Duty and 100% Excise Tax.

• Vaping Products: Unlike traditional tobacco, electronic smoking devices typically attract the standard 5% customs duty but are hit with a 100% Excise Tax on both the hardware and the liquids.

Sweetened Beverages (Tiered Volumetric Model)

Effective January 1, 2026, the flat 50% excise tax on sugary drinks has been replaced. The new tax is calculated per litre:

• Tier 1 (High Sugar): AED 1.09 per litre for drinks with 8g+ sugar per 100ml.
• Tier 2 (Standard): AED 0.79 per litre for drinks with 5g to 8g sugar per 100ml.
• Tier 3 (Low/No Sugar): AED 0 per litre for drinks with under 5g sugar.

Prohibited and Restricted Goods

Before importing, businesses must consult the Federal Tax Authority (FTA) and the Customs prohibited lists to ensure compliance.

• Prohibited Goods: Items that are strictly banned from entry. Examples include forged currency, ivory, gambling tools, and publications that contradict Islamic teachings.
• Restricted Goods: Items that require a “NOC” (No Objection Certificate) or permit from a specific ministry before they can be cleared.
  • Medicines/Medical Equipment: Requires Ministry of Health 408 approval.
  • Plants/Live Animals/Food: Requires Ministry of Climate Change and Environment permits.
  • Telecommunications: Requires TDRA approval.

Free Zone Treatment (Duty Suspension)

Dubai’s Free Zones (e.g., JAFZA, DAFZA, DMCC) operate as “Designated Zones” for tax purposes. This offers a major cash-flow advantage for international traders:

1. Duty Suspension: Goods entering a Free Zone from abroad are not subject to customs duty or VAT immediately.
2. Tax Trigger: Taxes only become payable if the goods move from the Free Zone into the UAE Mainland.
3. Re-export Benefits: If goods are imported into a Free Zone and then exported to a country outside the GCC, they remain entirely tax-free.
4. 2026 Compliance: Under Federal Decree-Law No. 16 of 2025, Designated Zones must maintain strict physical fencing and access controls. If a zone fails these “outside the state” conditions, it may lose its tax-free status, making all inventory subject to 5% VAT.

Expert Insight: For businesses moving goods between two Designated Zones, you must maintain digitally indexed gate passes and transport logs. In 2026, the FTA considers these “critical audit artifacts.” 

If you lack proof that the goods stayed outside the mainland, a 5% VAT charge plus a 14% annual interest penalty can be applied.

Specific Exemptions and Relief Categories

Dubai offers several strategic exemptions that go beyond basic commodities. These categories are designed to facilitate humanitarian work, support GCC economic integration, and assist residents relocating to the emirate.

Goods for Re-export (Duty Suspension)

Under the Re-export Suspension regime, goods brought into Dubai with the intention of being shipped to a third country (outside the GCC) are exempt from customs duties and VAT.

• Mechanism: Importers must provide a “Security Deposit” or a bank guarantee equivalent to the duty amount.
• Condition: The goods must be re-exported within a specified timeframe (typically 6 months, extendable under Customs Policy No. DCP20). Once the exit from the UAE border is verified digitally, the deposit is refunded.

Personal Effects of Returning Nationals and Residents

Relocating to Dubai is supported by a generous exemption for used household items.

• Eligible Groups: UAE nationals returning after residing abroad and foreigners moving to Dubai for the first time for residency.
• Key Requirements:
  • Items must be used and in quantities appropriate for furnishing a home.
  • New items (still in original packaging) are not exempt and will attract the 5% duty.
  • Importers must provide a detailed packing list and proof of previous residence abroad.

Items for Diplomatic Missions and International Organizations

In accordance with international treaties and the UAE Ministry of Foreign Affairs guidelines, imports by diplomatic missions, consulates, and recognized international organizations are duty-exempt.

• Scope: Includes official furniture, equipment, and a limited quota of vehicles for diplomatic use.
• Verification: Requires an official exemption certificate issued by the Ministry of Foreign Affairs.

Education, Culture, and Literacy

To support the UAE’s knowledge economy, specific cultural and educational materials are exempted from customs duties and, in many cases, are zero-rated for VAT.

• Exempt Items: Printed books, newspapers, scientific journals, and children’s picture/drawing books.
• Digital Distinction: Note that digital subscriptions or e-books may follow different VAT rules under the Electronic Services framework.

GCC-Origin Goods (Unified Customs Union)

As a member of the GCC Customs Union, goods produced within Saudi Arabia, Kuwait, Bahrain, Oman, or Qatar move into Dubai duty-free.

• The Rule of Origin: To qualify, the goods must have a Certificate of Origin proving that at least 40% of the value-added occurred within a GCC state.

Note: Simply shipping a foreign product (e.g., from China) through a GCC port does not grant this exemption; the product must be “Made in GCC.”

Charitable and Humanitarian Imports

Goods imported by registered charitable organizations for relief or non-profit purposes are exempt from customs duties.

• Examples: Food supplies, clothing, and medical aid for disaster relief.
• Procedure: The importing entity must be registered with the Community Development Authority (CDA) and obtain a specific “Duty Exemption Letter” for each shipment.

2026 Compliance Summary Table: How to Claim

Exemption Type	Required Document	Primary Regulator
Industrial Inputs	Industrial Exemption Permit	CDA 408 / IACAD
Personal Effects	Packing List & Residence Proof	Dubai Customs
GCC Goods	GCC Certificate of Origin	Exporting Country’s Chamber
Charitable Aid	Exemption Approval Letter	CDA 408 / IACAD

Pro Tip: Even for “0% Duty” items, a Customs Declaration must still be filed through theDubai Trade portal. Skipping the declaration for exempt goods is considered a technical violation and can lead to fines.

Step-by-Step Import Tax Payment Procedure

Navigating the clearance process requires precision. A single documentation error can lead to a “Customs Suspense” status, resulting in storage fees at the port. Following these steps ensures your shipment moves smoothly through the system.

Register and Obtain a Customs Client Code

Before any trade can begin, you must be a registered importer. Every business or individual engaging in commercial trade must apply for a Customs Client Code through the Dubai Customs portal. 

This code is your digital identity in the Mirsal 2 system and is used to track all your imports, exports, and duty payments. For 2026, existing codes must be linked to a valid UAE Pass for enhanced security.

Prepare Required Shipping Documents

Accuracy at this stage is the primary factor in preventing delays. You must have your digital dossier ready, which includes:

• Commercial Invoice: Must detail the unit price, total value, currency, and the mandatory 12-digit HS code.
• Packing List: A breakdown of the weight, volume, and packaging type for each item.
• Certificate of Origin: Crucial if you are claiming duty exemptions for GCC-made goods or under specific trade agreements.
• Bill of Lading or Airway Bill: The contract of carriage provided by your shipping line or airline.
• Import Permits: Necessary if you are bringing in restricted items like pharmaceuticals, food, or wireless equipment.

Submit Customs Declaration via Dubai Trade Portal

Once your documents are ready, you must file a Customs Declaration through the Dubai Trade portal. This is a centralized window that connects you to Dubai Customs and DP World. 

During this submission, you will provide the CIF value of the goods. The system will automatically calculate the applicable Customs Duty, VAT, and Excise Tax based on the HS codes you provided.

Pay Customs Duty, VAT, and Excise Tax

After the declaration is submitted and reviewed, the total tax amount will be generated. Payments in 2026 are processed through the Digital MAKASA system, which allows for instant settlement via credit card, bank transfer, or a prepaid customs credit account.

• VAT Treatment: If you are a VAT-registered business, you may use the “Postponed Accounting” method, where the 5% VAT is not paid at the port but is instead accounted for on your regular VAT return, provided you have prior FTA approval.

Clearance and Release of Goods

Once the payment is confirmed, the system generates a Customs Release Message. Your shipping agent or PRO can then present this to the port authorities to take physical possession of the goods. 

In some cases, a physical inspection may be required if the shipment is flagged by the customs risk engine. Once cleared, the goods can be legally moved into the UAE mainland or your warehouse.

Required Documents for Import Clearance

Having your documentation ready and accurate is the difference between same-day clearance and costly port storage delays. Each document serves a specific regulatory purpose, verifying the value, origin, and safety of your shipment.

The Essential Dossier

• Commercial Invoice: This is the primary document for tax assessment. It must clearly state the transaction value, a detailed description of the goods, and the mandatory 12-digit HS Code. It should also specify the Incoterms (e.g., CIF, FOB) to ensure the taxable base is calculated correctly.
• Certificate of Origin (COO): This document proves where the goods were manufactured. It is the only way to claim GCC-origin exemptions or benefits under international trade agreements. Without a valid COO, the standard 5% duty will be applied regardless of the item’s source.
• Bill of Lading (Sea) / Airway Bill (Air): Issued by the carrier, this acts as both a receipt for the cargo and a contract of carriage. It must match the details on your invoice and packing list.
• Packing List: A detailed breakdown of the shipment’s physical characteristics, including total weight, net weight, dimensions, and the type of packaging (e.g., pallets, crates). Customs officials use this for physical inspections.
• Import Permit: Only required for Restricted Items. If you are importing food, plants, medicines, or chemicals, you must obtain prior approval from the relevant ministry (such as MOCCAE or MOHAP) and include the permit number in your digital filing.
• VAT Registration Certificate: While your Customs Client Code is linked to your Tax Registration Number (TRN), having a copy of your Federal Tax Authority registration is necessary for the initial setup and for any manual reconciliation of VAT payments.
• Insurance Certificate: To verify the CIF Value, you must provide proof of the insurance premium paid. If the shipment is not insured, Dubai Customs may apply a standard “notional” insurance value to the cost of the goods.

Penalties for Non-Compliance

Dubai’s customs and tax framework is built on trust, but it is reinforced by strict enforcement. The move toward AI-driven risk engines in 2026 means that discrepancies in value or classification are flagged almost instantly.

Financial and Administrative Penalties

• Late Declaration Fines: A penalty of AED 5 per day is applied for failing to declare goods upon arrival. While this is capped at AED 300, the secondary consequence is a lower “Compliance Rating,” which can lead to more frequent physical inspections of your future shipments.
• Underreporting of Value: If the Dubai Customs valuation engine determines that the CIF value has been intentionally understated to avoid duty, fines can reach up to three times the value of the duty evaded. In severe cases, the goods may be confiscated.
• Restricted Goods Without Permits: Attempting to clear food, medicine, or wireless equipment without the necessary “No Objection Certificate” (NOC) from the relevant ministry (e.g., MOHAP 408 or TDRA 408) will result in the shipment being blocked and a fine starting from AED 1,000 per violation.
• Legal Consequences: Serious violations, such as importing Prohibited Goods (forged currency, banned publications, etc.) or habitual tax evasion, are treated as criminal offenses. This can lead to the permanent cancellation of your Customs Client Code, heavy judicial fines, and imprisonment.

Free Zones and Import Tax Benefits

Dubai’s Free Zones remain the most powerful tool for international traders. Under the Designated Zone status defined by the FTA, these areas are technically considered “outside the state” for tax purposes.

Duty Suspension and Benefits

• Tax Deferral: Goods entering a Free Zone like JAFZA, DMCC, or DAFZA are held in a state of Duty Suspension. You do not pay the 5% Customs Duty or 5% VAT as long as the goods remain within the zone.
• When Duty Becomes Payable: Taxes only become due the moment goods leave the Free Zone to enter the UAE Mainland. This allows businesses to maintain large inventories without tying up capital in tax payments.
• Re-export Efficiency: If goods are imported from Europe into a Dubai Free Zone and then re-exported to Africa, the trader pays 0% UAE tax, as the goods never officially entered the UAE’s domestic market.

Popular Free Zones for Trade

1. Jebel Ali Free Zone (JAFZA): Ideal for heavy industry and large-scale logistics due to its direct link to the world’s largest man-made harbor.
2. Dubai Airport Freezone (DAFZA): Preferred for high-value, low-weight goods like electronics and pharmaceuticals that require fast air-freight clearance.
3. Dubai Multi Commodities Centre (DMCC): The hub for precious metals (Gold/Diamond trade) and soft commodities like tea and coffee.

How HFA Consulting Can Help

The 2026 regulatory shift from the 12-digit HS code mandate to the Tiered Volumetric Excise model has made import compliance a high-stakes task. 

A single error in documentation can result in “Customs Suspense,” costly port storage fees, or FTA audits. HFA Consulting provides the specialized expertise needed to ensure your supply chain remains uninterrupted and cost-effective.

Customs Registration Assistance

We fast-track your entry into the UAE market by managing the entire Customs Client Code registration process via Dubai Customs. 

Our team ensures your code is correctly linked to your UAE Pass and Tax Registration Number (TRN), allowing for seamless digital clearance through the Mirsal 2 system.

VAT Compliance for Importers

Import VAT involves more than just payment; it requires strategic management. We assist businesses in:

• Setting up Postponed VAT Accounting allows you to defer VAT payments at the port and account for them in your periodic returns.
• Navigating the strict 5-year refund limit to ensure you never forfeit eligible input tax claims.
• Reconciling import data between the Federal Tax Authority (FTA) and Dubai Customs portals.

Documentation and HS Code Support

Underreporting or misclassification is a primary cause of penalties. We provide a comprehensive audit of your shipping documents, including:

• HS Code Verification: Mapping your products to the mandatory 12-digit codes for 2026.
• Invoice Valuations: Ensuring your CIF values meet the “market value” benchmarks used by AI-driven customs scanning engines.
• Permit Acquisition: Coordinating with MOHAP, MOCCAE, and TDRA for restricted goods.

Advisory for Exemptions and Refunds

Our tax consultants identify every opportunity for tax optimization. We provide advisory services for:

• Industrial Exemptions: Helping manufacturers secure permits for duty-free machinery and raw material imports via the Ministry of Industry and Advanced Technology.
• GCC Rule of Origin: Verifying Certificates of Origin to qualify for 0% duty movement.
• Refund Management: Managing the security deposit and refund process for goods intended for Re-export.

Optimize Your Trade Operations Today

In Dubai’s fast-paced trade environment, compliance is a competitive advantage. HFA Consulting combines local regulatory depth with a digital-first approach to protect your margins and simplify your logistics.

HFA Consulting to schedule a consultation with our trade and tax specialists and ensure your 2026 import strategy is built on solid regulatory ground.

This final section synthesizes the critical 2026 mandates and serves as the definitive reference for importers.

Conclusion

As of 2026, Dubai has firmly transitioned into a digital-first trade hub. The move to mandatory 12-digit HS codes and the integration of the Digital MAKASA payment system mean that accuracy is no longer optional; it is a technical requirement for clearance.

• The Layered Tax Model: Taxes are calculated sequentially (CIF + Duty + Excise = VAT Base).
• Mandatory 12-Digit HS Codes: Phase 2 (started Feb 2026) makes these codes mandatory for all imports from Free Zones to the local market.
• Volumetric Excise Tax: “Sugar Tax” is now calculated per litre rather than as a flat percentage.
• 5-Year VAT Limit: The window to claim input tax on imports is now strictly capped at five years.

In the current regulatory environment, Dubai Customs uses AI-driven cross-referencing to detect undervalued shipments and misclassified goods. A clean compliance record ensures you qualify for the Digital MAKASA fast-track, which allows for instant clearance without physical intervention.

Consult an Expert: With the introduction of the Federal Decree-Law No. (16) of 2025, the penalties for tax evasion and documentation errors have significantly increased. We strongly recommend consulting with a certified UAE tax expert to audit your import dossier before the arrival of your vessel.

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