India-UAE Comprehensive Economic Partnership Agreement: The Key Impacts and Benefits

Stringent rules of origin have been provided in CEPA to prevent the routing of products manufactured in third countries to India and to ensure that preferential tariffs can only be claimed during clearance only after the production of the certificate of origin issued by a government agency of the relevant country.

The agreement mandates up to 40% value addition on most goods and wholly-obtained criteria for Agri products to prevent misuse of the CEPA and take advantage of lower tariffs. The steel needs to be melted and cast before being shipped.

India has offered a 1% duty concession for gold imports from the UAE for up to 200 tonnes of inbound shipments. It has also given significant tariff concessions to the USE on dates, petroleum products, petrochemicals, metals, and minerals.

Preferential market access is given by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms, especially for all labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and Automobiles. India reciprocated by providing preferential access to the UAE on over 90% of its tariff lines.

Seventeen agencies from the Indian side have been listed, besides the export inspection council, to issue certificates of origin to exporters digitally which would enable speedy clearances and trade.