What is the import duty on handbags and leather goods from the UAE to India?

The standard MFN basic customs duty is 15%; under India–UAE CEPA the preferential rate is 0%. SWS adds 10% on the basic duty and 18% IGST applies on the CIF + BCD + SWS base.

How much can CEPA save on handbags and leather goods?

On a CIF value of ₹10,00,000, total duty falls from ₹3,74,700 (MFN) to ₹1,80,000 (CEPA) — about ₹1,94,700 saved per shipment, scaling with consignment value.

What do I need to claim the CEPA rate on handbags and leather goods?

A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 15% MFN rate.

Import duty on Handbags and leather goods (HS 42022200) from the UAE to India

HS 42022200 · UAE to India · Leather

Data last updated: 13 June 2026 · MFN & IGST from ICEGATE; CEPA rate per agreement — verify before filing

Duty breakdown on a ₹10,00,000 shipment

Component	Standard (MFN)	CEPA
Basic customs duty	₹1,50,000	₹0
Social Welfare Surcharge	₹15,000	₹0
IGST	₹2,09,700	₹1,80,000
Total duty	₹3,74,700	₹1,80,000

CEPA duty saving on this example: ₹1,94,700 . Run your own numbers in the import-duty estimator.

What drives the rate

Importing handbags and leather goods (HS 42022200) from the UAE to India attracts a standard MFN basic customs duty of 15%. Under the India–UAE CEPA the preferential basic customs duty is 0%. On a sample assessable value of ₹10,00,000, total duty falls from ₹3,74,700 at the MFN rate to ₹1,80,000 with CEPA — a saving of ₹1,94,700 per shipment. Leather handbags benefit from full CEPA elimination of the 15% duty, and the 18% IGST is the bigger cash-flow item — though that IGST is recoverable as input tax credit while the duty saving is permanent. To originate, the finished bag must change tariff heading and add 40% regional value. MFN and IGST are from ICEGATE; the CEPA preferential rate follows the agreement — verify before filing. Social Welfare Surcharge adds 10% on the basic duty and 18% IGST applies on top — though IGST is recoverable as input tax credit, so the lasting benefit is the basic-duty saving. Always confirm the live rate for HS 42022200 on ICEGATE or CBIC before filing.

Frequently asked questions

What is the import duty on handbags and leather goods from the UAE to India?: The standard MFN basic customs duty is 15%; under India–UAE CEPA the preferential rate is 0%. SWS adds 10% on the basic duty and 18% IGST applies on the CIF + BCD + SWS base.
How much can CEPA save on handbags and leather goods?: On a CIF value of ₹10,00,000, total duty falls from ₹3,74,700 (MFN) to ₹1,80,000 (CEPA) — about ₹1,94,700 saved per shipment, scaling with consignment value.
What do I need to claim the CEPA rate on handbags and leather goods?: A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 15% MFN rate.