Rules of Origin for motorised cycles with reciprocating internal combustion engine — Dubai (UAE) to India
HS 87111020 · MOTORCYCLES · 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)
- 45%
- Tariff-classification change
- CTH Annex 3B rule set at chapter level — it covers the whole chapter, not this code alone
- MFN → CEPA basic duty
- 70% → 0%
Rule of Origin (CEPA Annex 3B, primary source): CTH + VA 45% (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 motorised cycles with reciprocating internal combustion engine (HS 87111020), the goods must qualify as UAE-originating. The Product-Specific Rule (Annex 3B) is "CTH + VA 45% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required)": the goods must undergo a change of tariff heading (CTH) AND add at least 45% regional value content — both conditions, not either/or. Read that rule for what it is: Annex 3B supplies it at chapter level as the residual rule, applying to the chapter apart from the lines given their own, so it governs hundreds of eight-digit codes rather than this one. It is the correct rule to apply, and it is also the place to check for a more specific carve-out before committing to a claim. Motorised cycles sit alongside mopeds under the same protective treatment, reflecting India's policy of shielding domestic two-wheeler assembly. CEPA offers full removal for qualifying goods, but the Annex 3B rule for this chapter sets value addition at 45% rather than the usual 40%, alongside a change of tariff heading — a threshold that realistically excludes product merely re-exported from the UAE. Note also that this is an HS-2022 code with no direct line in Annex 2A, which is written in HS-2017, so the preferential position carried here should be confirmed against the implementing customs notification rather than assumed from the agreement text. The 40% IGST compounds the exposure on a failed claim, because both the duty and the tax reprice together. Importers should also plan for homologation and emission compliance, which gate vehicle imports independently of tariff and typically dominate the timeline and cost of bringing a model to market. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 70% MFN rate instead of the preference.
Check your own figures in the Rules of Origin (RVC) qualifier. Qualifying is only half of it — the preference is claimed with a Certificate of Origin, issued in the UAE before shipment or retrospectively within 12 months.
Frequently asked questions
- Does motorised cycles with reciprocating internal combustion engine qualify for India–UAE CEPA?
- Yes, if it meets the Annex 3B Product-Specific Rule "CTH + VA 45% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTH) AND add at least 45% regional value content — both conditions are required, not either/or.
- What is the Rule of Origin for motorised cycles with reciprocating internal combustion engine?
- Per CEPA Annex 3B: CTH + VA 45% (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 70% MFN duty applies.