Does handloom silk fabric 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 20% MFN duty applies.

Handloom silk fabric (HS 50079010) under India–UAE CEPA

HS 50079010 · Woven fabrics of silk or of silk waste · Rules of Origin & preferential rate

Data last updated: 23 July 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: 20% → 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 handloom silk fabric (HS 50079010), 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. Handloom silk fabric carries a 20% MFN basic customs duty that CEPA takes to 0%, one of the larger percentage-point savings in the textile corridor. The catch is origin: a sub-heading change plus 40% value addition means the weaving itself must happen in the UAE, which rules out the common pattern of third-country silk cloth routed through Dubai on a fresh invoice. IGST is 5%. Handloom lines sit on their own eight-digit codes and are frequently mis-declared against mill-woven silk at the same 5007 heading, so match the loom type on the invoice to the code you claim. MFN and IGST are from ICEGATE; the preferential rate is India's CEPA Annex 2A schedule. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 20% MFN rate instead of the preference.

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

Frequently asked questions

Does handloom silk fabric 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 handloom silk fabric?: 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 20% MFN duty applies.