Does propene (propylene) qualify for India–UAE CEPA?

Yes, if it meets the Annex 3B Product-Specific Rule "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTSH) AND add at least 40% regional value content — both conditions are required, not either/or.

What proof is needed at import?

A preferential Certificate of Origin filed through eCoO 2.0, presented at customs before clearance. Without it, the 2.5% MFN duty applies.

Propene (propylene) (HS 29012200) under India–UAE CEPA

HS 29012200 · ACYCLIC HYDROCARBONS · Rules of Origin & preferential rate

Data last updated: 20 August 2026 · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). Rules of Origin per CEPA Annex 3B. Verify your exact HS line before filing.

CEPA eligible: Yes
Value addition (RVC): 40%
Tariff-classification change: CTSH
MFN → CEPA basic duty: 2.5% → 0%

Rule of Origin (CEPA Annex 3B, primary source): CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).

Qualifying under the Rules of Origin

To claim the CEPA preference on propene (propylene) (HS 29012200), the goods must qualify as UAE-originating: the Product-Specific Rule (Annex 3B) is "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": the goods must undergo a change of tariff sub-heading (CTSH) AND add at least 40% regional value content — both conditions, not either/or. Propylene underpins polypropylene, acrylonitrile and propylene oxide production, and India imports it to supplement domestic cracker output. The 2.5% MFN duty falls to zero under CEPA — small per tonne but meaningful across a cargo. UAE-produced propylene generally satisfies the 40% regional-value-content rule. As with ethylene, the practical burden is hazardous-goods compliance: PESO licensing, pressurised transport and terminal handling approvals. Importers should also confirm specification and polymer-grade purity contractually, since off-spec cargo creates a dispute that no tariff saving offsets. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 2.5% MFN rate instead of the preference.

Check your own figures in the Rules of Origin (RVC) qualifier.

Frequently asked questions

Does propene (propylene) qualify for India–UAE CEPA?: Yes, if it meets the Annex 3B Product-Specific Rule "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTSH) AND add at least 40% regional value content — both conditions are required, not either/or.
What is the Rule of Origin for propene (propylene)?: Per CEPA Annex 3B: CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).. RVC% = [(FOB − value of non-originating materials) / FOB] × 100 (FOB basis).
What proof is needed at import?: A preferential Certificate of Origin filed through eCoO 2.0, presented at customs before clearance. Without it, the 2.5% MFN duty applies.