Importing Indian Spices to the UAE under CEPA

CEPA changed the maths

The India-UAE Comprehensive Economic Partnership Agreement entered into force on 1 May 2022. For Indian spices it opens a preferential 0 percent duty channel into the UAE. Without the paperwork that proves origin, the shipment falls back to the standard 5 percent applied duty.

The unlock is a DGFT preferential Certificate of Origin issued in India under CEPA. Present it and duty is 0. Omit it, or file a non-preferential certificate by mistake, and you pay 5 percent. The document, not the goods, decides the rate.

VAT still applies

CEPA removes the customs duty; it does not remove UAE VAT. The standard 5 percent VAT applies to the import regardless of the preferential route. Model landed cost as 0 percent duty plus 5 percent VAT when you use CEPA, not as a fully tax-free entry.

Dubai as a re-export hub

A large share of spice volume that lands in the UAE does not stay there. Dubai is a re-export platform into the wider Gulf, East Africa and beyond. If you are buying to re-export, structure your documentation and free-zone handling with that onward leg in mind from the first order, because it changes how origin and duty are treated downstream.

Getting the preferential certificate right

• —Confirm the product meets CEPA rules of origin for the specific tariff line
• —Have the exporter apply for the DGFT preferential CoO, not a generic chamber certificate
• —Match invoice, packing list and CoO exactly (descriptions, weights, HS codes)
• —Keep the phytosanitary certificate and standard commercial set alongside

How YouPals helps

YouPals runs the desk, not a factory. We vet the exporter, pull samples to your spec and coordinate lab testing at third parties. On the UAE lane we make sure the exporter files the correct DGFT preferential Certificate of Origin so your shipment actually lands at 0 percent duty rather than 5, and we keep the document set aligned to your customs broker and, where relevant, your onward re-export plan.

Frequently asked

How do I get 0 percent duty into the UAE?

Ship under India-UAE CEPA with a DGFT preferential Certificate of Origin. Without it you pay the standard 5 percent. Either way, 5 percent UAE VAT still applies to the import.

Is a normal chamber-of-commerce certificate enough?

No. A generic non-preferential certificate does not unlock CEPA. You need the DGFT preferential Certificate of Origin issued specifically under the agreement.