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We shall go over all the key points of the recently announced India-UAE CEPA Trade Agreement on this page.

You will learn everything in this, including whether the Agreement is in your best interests. Which goods are acceptable? What are the guidelines or history? How do you submit an application for CoO under this FTA? How do I apply? What kinds of documentation are needed? What responsibilities does the exporter have? Etc. Please finish reading the information.

1. The history of free trade agreements, What is the CEPA and why is it crucial for exports?

We are known that FTA (Free Trade Agreement) grants Indian export items preferential tariff access in the importing country.

The newly announced India-UAE CEPA FTA is one example. The India-UAE CEPA was ratified on February 18, 2022, and it went into effect on May 1, 2022.

Why is this FTA so significant, then? - Many other gulf nations, Europe, and 90% of India's exports in value terms would instantly become entirely duty-free because the UAE is a gateway to Africa.

So Indian exporters will greatly benefit from this.

2. Which industries or export goods qualify for a reduced duty?

ANNEX 2B contains a list of all such products organised by HS code. The PDF file's link is provided below.

(Link - https://commerce.gov.in/wp-content/uploads/2022/03/Chapter-2-Annex-2B-Final-UAE-Revised-Market-Access-Offer-2118-Dec-18-2021.pdf)

The majority of the export products on the list are given 0% duty benefits right away, however other products will receive 0% duty benefits gradually, such as after 5 years, 7 years, or 10 years.

Watch this brief overview video on the INDIA UAE CEPA TRADE AGREEMENT to learn more.

The rules of origin and product-specific rules must be understood before applying because the CoO is equivalent to a financial instrument and the UAE government has the right to post a verification of the Certificate at any time. If any rules are broken, they may also contact Indian authorities.

3. What are the Rules of origin criteria?

Therefore, the Origin rules are a crucial part of the game. A product will only be regarded as having Indian origin if it was entirely produced in India or if enough processing or work was done on the imported elements to create the final product.

We shall each be understood through an example.

The phrase "wholly obtained in India" refers to goods that are either totally produced with Indian raw materials or entirely cultivated there. Fruits and vegetables cultivated in India are an example of such products that are frequently used.

The first requirement is therefore rather straightforward and unambiguous.

Regarding the second criterion, a product will be deemed sufficiently processed if it changes its tariff classification at the Chapter Level, which corresponds to the first two digits of the Harmonised System (HS), the tariff heading level, which corresponds to the first four digits, the tariff subheading level, which corresponds to the first six digits, AND/OR it satisfies the value addition criterion. This will be covered in more detail in the section on product-specific rules.

4. Products Specific Rules (PSR)

Let us understand these rules by way of 3 Examples.

Example 1 -

The illustration demonstrates that in order for any product covered by Chapters 3 to 8 to be eligible for CEPA benefits, it must be entirely obtained (i.e. "WO") by compulsory means.

Example 2 -

As a result, in this case, the export product—a cashew kernel—will only be eligible for CEPA advantages if it has undergone a change in CTSH, which is when the first six digits of the tariff subheading level for the imported raw material differ from those of the final export product.

Example 3 -

The image demonstrates that in order for any product covered by Chapters 28 to 31 to be eligible for CEPA benefits, it must maintain both conditions, namely CTSH, which requires that the first six digits of imported raw materials differ from the first six digits of the final export product, plus 40% VA.

If the invoice contains a lot of export products, the VA for each export item should be determined separately. It's possible that some of your products don't meet the PSR requirements; in that case, you must note it in your documentation and those products shouldn't be eligible for CEPA advantages.

5. Minimal process or insufficient operations

The list of processes that are prohibited is shown in the image below. This means that if you import something, put it through any of the aforementioned processes, and then export it, it won't be eligible for CEPA advantages.

6. How to apply For CoO under CEPA?

The final query would be where and how to apply.

The shared digital platform for CoO is where applications for CoO under CEPA are to be submitted. It is a required online procedure.

[For more information about Certificate of Origin for Exports, please see this article: CoO DGFT Registration (Certificate of Origin for Exports)]

The application must be submitted to the closest Export Inspection agency or DGFT within 5 days of the export date.

The following list of documents is typically needed:

  1. Digital Signature
  2. Exports Invoice copy
  3. Packing List
  4. Bill of Lading
  5. Shipping Bill
  6. Annexure 3A
  7. Manufacturer's Declaration.

Once the application is done the CoO is issued within one to two working days.