The India–UAE Comprehensive Economic Partnership Agreement (CEPA) is one of the biggest opportunities Indian exporters have had in years — but the paperwork and rules stop many businesses from actually using it. This guide explains, in plain language, what CEPA gives you and the exact steps to claim it.
What CEPA is, in one paragraph
CEPA is a bilateral trade agreement between India and the UAE that came into force on 1 May 2022 — India's first CEPA in the Middle East. Its headline benefit: around 90% of India's exports (by value) became duty-free into the UAE, immediately or on a phased basis. For an exporter, that can mean the difference between winning and losing a Gulf order on price alone.
Since 2022, more than 240,000 certificates of origin have been issued under CEPA, covering roughly US$19.87 billion in preferential exports — and bilateral trade rose from about US$20.8 billion (FY2022) to US$28.1 billion (FY2024), a ~35% jump.
Who benefits most
The UAE's zero-duty access covers virtually all of India's labour-intensive sectors:
- Gems and jewellery
- Textiles, leather, footwear, sports goods
- Plastics, furniture, wood and agricultural products
- Engineering products, pharmaceuticals and medical devices
- Automobiles and components
If you export in any of these categories, CEPA likely affects your landed price in the UAE today.
The three things you must get right
CEPA benefits are not automatic — you claim them. Three requirements matter most:
1. Rules of origin (the 40% rule)
To qualify for preferential (reduced/zero) duty, your goods generally need 40% value addition in India, i.e. substantial processing so the product genuinely originates in India rather than being merely trans-shipped. Purely re-exported foreign goods do not qualify.
2. Certificate of Origin (CoO)
You need a CEPA-specific Certificate of Origin, issued online through India's DGFT portal. This document proves your goods meet the rules of origin. On the UAE side, origin is administered by the UAE Ministry of Economy.
3. Direct consignment
Goods must be directly transported from India to the UAE. Break that chain (e.g. substantial processing in a third country) and you can lose the preference.
How to claim CEPA benefits — step by step
- Confirm your HS code is covered and check the tariff concession/phase-out schedule for your product.
- Verify you meet the 40% value-addition rule and keep the costing/BOM evidence on file.
- Register and apply for the Certificate of Origin on the DGFT online CoO portal.
- Ship directly to the UAE and ensure the CoO travels with your export documentation.
- Have your UAE buyer/importer present the CoO at customs to claim the preferential duty.
- Retain records — origin documentation can be audited later.
Support that most exporters miss
- A Joint SME Committee exists to connect Indian and Emirati firms and surface commercial opportunities.
- Indian schemes like the Market Access Initiative and International Cooperation Scheme part-fund participation in UAE trade fairs and promotions.
- Bharat Mart at Jafza, Dubai becomes operational in 2026 — 2.7 million sq ft of retail, logistics and warehousing with ~1,500 showrooms built specifically for Indian exporters to hold stock close to Gulf and African buyers.
Common mistakes
- Assuming duty-free is automatic (it needs a CoO every time).
- Under-documenting value addition and failing an origin check.
- Routing goods through a third country and breaking direct-consignment rules.
- Ignoring the phase-out schedule — some lines reduce over years rather than dropping to zero on day one.
FAQ
When did India–UAE CEPA come into force? 1 May 2022. It was India's first CEPA in the Middle East.
How much of India's exports are duty-free under CEPA? Around 90% by value, immediately or on a phased basis, covering most labour-intensive sectors.
Where do I get the Certificate of Origin? Online through India's DGFT Certificate of Origin portal. It must accompany your export documentation.
What is the rules-of-origin threshold? Generally 40% value addition in India, plus direct consignment from India to the UAE.
Showmax Global runs a UAE–India trade-facilitation service line alongside our marketing work — helping Indian businesses position, present and market themselves to Gulf buyers. Ask us about entering the UAE market.