India-UAE CEPA Advisory-India FAQs
- What does the India-UAE CEPA cover?
The India-UAE CEPA covers preferential tariff access for goods on phased reduction schedules, market access commitments for services, investment protections including fair and equitable treatment and investor-state dispute settlement, intellectual property provisions, and government procurement. It entered into force on 1 May 2022 and is jointly administered by India’s Ministry of Commerce and DPIIT, and the UAE Ministry of Economy.
- Does every product automatically qualify for zero customs duty under the India-UAE CEPA?
No. Preferential tariff rates apply only where the product satisfies the applicable Rules of Origin — confirming it genuinely originates from the exporting country. Eligibility also requires correct HS Code classification and a valid Certificate of Origin. Many product lines are on phased reduction schedules that have not yet reached zero. ATB Legal conducts a product-specific analysis before any CEPA tariff claim is structured.
- What are Rules of Origin and why do they matter for India-UAE CEPA claims?
Rules of Origin under the India-UAE CEPA determine whether a product is considered to originate from India or the UAE, entitling it to preferential tariff treatment. Qualification depends on value addition thresholds, change-in-tariff-heading tests, or wholly obtained criteria for the specific HS Code. Incorrect ROO analysis is the most common reason CEPA claims are denied. ATB Legal manages the complete ROO compliance chain.
- Can a UAE free zone entity claim CEPA tariff benefits on goods imported from India?
Yes, in many cases — but the structure requires careful analysis. Goods imported into a UAE free zone do not attract customs duty until they enter the UAE mainland customs territory. CEPA preferential treatment applies when goods clear UAE customs for mainland entry. The invoice routing, origin documentation, and consignment structure must satisfy CEPA Rules of Origin requirements. ATB Legal advises on structuring this correctly before implementation.
- What is a Certificate of Origin and how is it obtained for India-UAE CEPA claims?
A Certificate of Origin confirming that goods originate from India and satisfy the CEPA Rules of Origin is required by UAE customs to accept CEPA preferential claims. In India, CoOs are issued by the DGFT or an approved Export Promotion Council. The CoO must accompany the commercial invoice and correctly state the origin criteria satisfied. Without a valid CoO, UAE customs applies the standard MFN duty rate. ATB Legal advises on procurement.
- What investor protections does the India-UAE CEPA provide?
The CEPA investment chapter provides qualifying bilateral investors with fair and equitable treatment, full protection and security, national treatment, and most-favoured-nation treatment. In the event of a breach of these protections by either government, the CEPA provides access to investor-state dispute settlement mechanisms. These protections supplement the rights available under domestic Indian and UAE investment law. ATB Legal advises on CEPA-eligible investment structuring.