India–UAE CEPA basics
What the India–UAE CEPA is, when it came into force, how much duty it removes, and which products qualify.
Data last updated: · Maintained by India FTA Duty Toolkit
What is the India–UAE CEPA?
The India–UAE Comprehensive Economic Partnership Agreement (CEPA) is a free-trade agreement signed on 18 February 2022 and in force since 1 May 2022. It removed customs duty on 80.3% of tariff lines — over 6,090 products — on day one, with more cut over 5–10 years, as long as goods meet the agreement's Rules of Origin.
CEPA is India's most active bilateral trade corridor and the wedge this toolkit covers first. For an Indian importer, it means goods sourced from the UAE can clear customs at a preferential rate — often zero — instead of the standard Most-Favoured-Nation (MFN) rate, provided the paperwork is right.
How much duty does CEPA remove?
The cuts are staged rather than uniform:
- 80.3% of tariff lines (6,090+ products) became duty-free immediately on 1 May 2022.
- 4.4% (1,089 products) phase to zero over 5 years.
- 2.4% (180 products) phase to zero over 10 years.
On the UAE side, over 97% of tariff lines — covering 99% of Indian export value — are being eliminated. Because the benefit is per-HS-code, the only reliable way to know your rate is to look up the specific code with the import-duty estimator.
Which products qualify — and which don't?
Immediate zero-duty access went to labour-intensive sectors: gems and jewellery, textiles, leather, footwear, plastics, furniture, engineering goods, pharmaceuticals, and medical devices. Gems and jewellery exports alone jumped from ~USD 4.9bn to ~USD 8bn in FY2024 on the back of these cuts.
But CEPA is not blanket. Sensitive sectors are excluded — dairy, most fruits and vegetables, cereals, tea, coffee, sugar, tobacco, certain plastics, medical devices, auto and auto components, and PLI-scheme sectors. A common mistake is assuming "CEPA = zero duty" for everything; always confirm the specific HS line first.
What to do next
Qualifying for the rate is a two-part job: prove the goods originate in the UAE (Rules of Origin) and present a valid Certificate of Origin at import. Start with how to claim the CEPA benefit.
Frequently asked questions
- What is the India–UAE CEPA?
- The India–UAE Comprehensive Economic Partnership Agreement is a free-trade agreement signed on 18 February 2022 and in force since 1 May 2022. It removed customs duty on 80.3% of tariff lines (over 6,090 products) on day one, with more phased out over 5–10 years, provided goods meet the agreement's Rules of Origin.
- When did the India–UAE CEPA come into force?
- The agreement entered into force on 1 May 2022. Tariff cuts are staged: most lines went to zero immediately, while others reduce over 5-year and 10-year schedules.
- Which products get zero duty under CEPA?
- Labour-intensive sectors got immediate zero-duty access — gems and jewellery, textiles, leather, footwear, plastics, furniture, engineering goods, pharmaceuticals, and more. Over 97% of UAE tariff lines (99% of Indian export value) are being eliminated.
- Which products are excluded from CEPA?
- Sensitive sectors are carved out, including dairy, most fruits and vegetables, cereals, tea, coffee, sugar, tobacco, certain plastics, medical devices, and auto components. Always check the specific HS line before assuming a preference exists.
This guide is general information for the India–UAE CEPA corridor, not legal or customs advice. Verify rates and rules against official CBIC and DGFT sources before filing.