What is the import duty on cut and polished diamonds from the UAE to India?

The standard MFN basic customs duty is 10%; under India–UAE CEPA the preferential rate is 5%. SWS adds 10% on the basic duty and 1.5% IGST applies on the CIF + BCD + SWS base.

How much can CEPA save on cut and polished diamonds?

On a CIF value of ₹10,00,000, total duty falls from ₹1,26,650 (MFN) to ₹70,825 (CEPA) — about ₹55,825 saved per shipment, scaling with consignment value.

What do I need to claim the CEPA rate on cut and polished diamonds?

A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 10% MFN rate.

Import duty on Cut and polished diamonds (HS 71023900) from the UAE to India

HS 71023900 · UAE to India · Gems & jewellery

Data last updated: 14 June 2026 · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). CEPA preferential rate per the India–UAE CEPA schedule. Verify your exact HS line before filing.

Duty breakdown on a ₹10,00,000 shipment

Component	Standard (MFN)	CEPA
Basic customs duty	₹1,00,000	₹50,000
Social Welfare Surcharge	₹10,000	₹5,000
IGST	₹16,650	₹15,825
Total duty	₹1,26,650	₹70,825

CEPA duty saving on this example: ₹55,825 . Run your own numbers in the import-duty estimator.

What drives the rate

Importing cut and polished diamonds (HS 71023900) from the UAE to India attracts a standard MFN basic customs duty of 10%. Under the India–UAE CEPA the preferential basic customs duty is 5%. On a sample assessable value of ₹10,00,000, total duty falls from ₹1,26,650 at the MFN rate to ₹70,825 with CEPA — a saving of ₹55,825 per shipment. Cut and polished diamonds are mid-phase, not duty-free. India scheduled HS 7102 as Tariff Elimination Phased: the 10% MFN duty steps down and sits at 5% in 2026 (year 5), continuing toward 0% in later years. A UAE-origin stone with a valid Certificate of Origin pays 5% BCD today. The origin rule is unusually light — a tariff-subheading change plus 6% value addition — reflecting the import-cut-re-export trade. With IGST at just 1.5%, the 5% BCD is the main cost lever. MFN and IGST are from ICEGATE; the 5% preferential is the year-5 rate from CEPA Annex 2A (Schedule of India). Social Welfare Surcharge adds 10% on the basic duty and 1.5% 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 71023900 on ICEGATE or CBIC before filing.

Import compliance & clearances

Beyond duty, importing cut and polished diamonds (HS 71023900) into India requires the following regulatory clearances. The CEPA preferential rate does not waive any of these — they apply regardless of origin.

DGFT Free; IEC required. Kimberley Process Certification applies to rough diamonds only, not cut & polished source ↗

Indicative and non-exhaustive — verify the current DGFT / BIS / FSSAI / CDSCO notification for your exact 8-digit HS line before importing. Not customs or legal advice.

Frequently asked questions

What is the import duty on cut and polished diamonds from the UAE to India?: The standard MFN basic customs duty is 10%; under India–UAE CEPA the preferential rate is 5%. SWS adds 10% on the basic duty and 1.5% IGST applies on the CIF + BCD + SWS base.
How much can CEPA save on cut and polished diamonds?: On a CIF value of ₹10,00,000, total duty falls from ₹1,26,650 (MFN) to ₹70,825 (CEPA) — about ₹55,825 saved per shipment, scaling with consignment value.
What do I need to claim the CEPA rate on cut and polished diamonds?: A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 10% MFN rate.