Non-agglomerated metal carbides mixed together or with metallic binders (HS 38243000) under India–UAE CEPA
HS 38243000 · PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES · Rules of Origin & preferential rate
Data last updated: · 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
- 7.5% → 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 non-agglomerated metal carbides mixed together or with metallic binders (HS 38243000), 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. Mixed metal-carbide powders are the feedstock for cemented-carbide tooling, wear parts and hard-facing — inputs to India's tooling and engineering industry. CEPA removes the 7.5% basic duty. The 40% regional-value-content rule is demanding: tungsten and cobalt raw materials are globally sourced and the UAE has limited primary carbide production, so blending imported powders regionally rarely qualifies. Tungsten and cobalt supply is also strategically sensitive and price-volatile. Verify the powder's manufacturing origin rather than its shipping origin before claiming the preference. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 7.5% MFN rate instead of the preference.
Check your own figures in the Rules of Origin (RVC) qualifier.
Frequently asked questions
- Does non-agglomerated metal carbides mixed together or with metallic binders 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 non-agglomerated metal carbides mixed together or with metallic binders?
- 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 7.5% MFN duty applies.