The 2026 practical guide for Indian brands. From what qualifies, how to claim it, and what happens if you don't.
Quick answer: What is the India–UAE CEPA?
The India–UAE Comprehensive Economic Partnership Agreement (CEPA), in force since May 2022, eliminates or reduces customs duty on over 80% of Indian products exported to the UAE. For D2C brands in fashion, beauty, wellness, and home, this means your shipments can attract 0% import duty instead of the standard 5% — saving thousands of dirhams per consignment. To claim it, you need a Certificate of Origin from India's DGFT. Most brands don't bother. That's a costly mistake.
Most Indian D2C founders entering the UAE market know the standard number: 5% import duty on most goods coming into Dubai. What far fewer know is that a trade agreement signed in 2022 means many of them should be paying 0% — and they're leaving that saving on the table with every single shipment.
The India–UAE Comprehensive Economic Partnership Agreement (CEPA) is one of the most significant trade deals affecting Indian exporters right now. Bilateral trade crossed USD 100 billion in FY 2024–25. Yet the vast majority of Indian D2C brands expanding to UAE are shipping without claiming their CEPA entitlement — either because they don't know it exists, or because nobody has explained how to actually use it.
This guide fixes that. No policy language. No government PDFs. Just what you need to know as a brand founder: which products qualify, how much you save, and the exact steps to claim it.
1. What CEPA actually is (in plain English)
CEPA stands for Comprehensive Economic Partnership Agreement. It is a bilateral free trade deal between India and the UAE, signed on 18 February 2022 and in force from 1 May 2022. In simple terms: the two governments agreed to reduce or eliminate the taxes charged when goods cross their shared border.
For Indian brands exporting to the UAE, the headline number is this: over 6,090 Indian products — 80.3% of all tariff lines — became duty-free on day one. A further tranche of products are being phased down to zero duty over five years, with duties reducing by 20% each year.
Before CEPA, the standard UAE import duty on most goods was 5%, applied on CIF value (product cost + shipping + insurance). On a shipment worth AED 50,000, that's AED 2,500 in duty before VAT. CEPA makes that zero for qualifying Indian products.
Why the January 2026 spike in searches?
Searches for "india uae trade deal" jumped from around 30 per month to 590 in January 2026, signalling renewed attention on CEPA — likely tied to the ongoing review of the agreement's implementation and the phase-down schedule coming into full effect. Brands that aren't already claiming CEPA benefits are falling further behind those that are.
2. Which Indian D2C categories benefit most
Here is the direct answer most articles bury in a PDF attachment: the product categories that matter to Indian D2C brands are overwhelmingly covered under CEPA zero-duty provisions.
| Product category | Common HS codes | Standard duty | CEPA duty |
|---|---|---|---|
| Women's apparel (cotton, silk) | 6104, 6106, 6211 | 5% | 0% |
| Men's apparel (kurtas, shirts) | 6205, 6211 | 5% | 0% |
| Ethnic wear & sarees | 6208, 6214, 6217 | 5% | 0% |
| Leather goods & footwear | 4203, 6402–6406 | 5% | 0% |
| Beauty & skincare | 3303, 3304, 3305 | 5% | 0% |
| Ayurvedic cosmetics | 3304.99 | 5% | 0% |
| Home textiles & furnishings | 6301–6310, 6302 | 5% | 0% |
| Jewellery & accessories | 7113, 7116, 7117 | 5% | 0% |
| Candles & home fragrance | 3406 | 5% | 0% |
| Herbal supplements (non-pharma) | 2106 | 5% | Phased to 0% |
Source: India–UAE CEPA Tariff Schedule. Always verify your specific HS code on the DGFT portal before shipping.
Important: CEPA duty relief only applies if your goods genuinely originate in India and you hold a valid Certificate of Origin. Claiming CEPA without the right documentation is a customs violation.
3. How much you actually save
The 5% duty saving sounds modest until you run the numbers at shipment scale.
Example: fashion brand, first LCL shipment
500 kurtas, product value AED 45,000. Shipping + insurance: AED 3,200. CIF = AED 48,200.
Without CEPA: 5% duty = AED 2,410. VAT on (CIF + duty) = AED 2,631. Total taxes = AED 5,041.
With CEPA: 0% duty = AED 0. VAT on CIF only = AED 2,410. Total taxes = AED 2,410. Saving = AED 2,631 on a single shipment.
At four shipments a year, that is over AED 10,000 in savings — enough to fund a full month of Dubai last-mile delivery. At FCL volumes, the savings scale accordingly.
For beauty brands with higher product values, the numbers are larger still. A skincare brand shipping AED 120,000 of product saves over AED 6,000 in duty per shipment alone.
4. The one thing most brands miss: Certificate of Origin
CEPA duty relief is not automatic. Dubai Customs does not apply it by default. You have to claim it — and the mechanism for claiming it is a document called a Certificate of Origin (CoO), issued by India's Directorate General of Foreign Trade (DGFT).
Without a valid CoO, your shipment is assessed at the standard 5% duty rate regardless of whether your product is on the CEPA zero-duty list.
How to get your Certificate of Origin
- Register on the DGFT CoO portal at coo.dgft.gov.in and create an exporter profile.
- File your CoO application within 5 days of the date of export.
- Declare your Rules of Origin: your product must be "made in India" — either wholly produced there, or sufficiently transformed there (using the HS classification change or value-addition criteria for your category).
- Upload supporting documents: commercial invoice, packing list, shipping bill, and manufacturing evidence if required.
- The CoO is issued within 1–2 working days. Present it to Dubai Customs at clearance.
- Keep all supporting documents for 5 years — UAE customs can conduct post-clearance audits.
Rules of Origin — the key condition. Your product must genuinely originate in India. For D2C brands this typically means manufactured or substantially transformed in India. A kurta stitched in Jaipur qualifies. A product assembled from imported components may need value-addition analysis. If you source product from China and re-export via India, it does not qualify.
5. Common mistakes Indian brands make with CEPA
Not claiming it at all
The most common mistake. Brands assume their freight forwarder handles it. They don't — the CoO is the exporter's responsibility and must be filed in India before or shortly after shipment. By the time goods reach Jebel Ali, it's too late to raise a CoO retroactively.
Wrong HS code on the CoO
Your CoO must state the same HS code as your commercial invoice and customs declaration. A mismatch between these three documents is one of the top reasons Dubai Customs rejects a CEPA claim and reverts to standard duty. Get your HS code right once, document it, and use it consistently.
Using CEPA for non-qualifying goods
Not every Indian product is on the zero-duty list. Some categories are phased (duty reduces by 20% annually over five years), and a small number are excluded entirely. Claiming zero duty on an excluded or phased product is a customs violation. Check the DGFT tariff schedule for your specific HS code before you ship.
Letting the CoO expire
A CEPA Certificate of Origin is valid for 12 months from the date of issue. If your shipment is delayed — in a warehouse, waiting for consolidation, or caught in customs — and the CoO expires, the duty relief is forfeited. For brands using LCL with longer transit times, build this into your planning.
Frequently asked questions
Does CEPA apply to ecommerce shipments and courier parcels?
CEPA applies to commercial shipments. For high-volume D2C brands shipping via air or sea freight, CEPA is fully applicable. For small individual courier parcels (B2C cross-border), the practical application depends on the courier's customs filing process — most standard courier shipments are assessed at standard duty rates. If you are warehousing in Dubai and fulfilling locally, CEPA applies to your inbound stock shipments.
Does CEPA apply if I use a third-party logistics provider or 3PL in Dubai?
Yes. CEPA applies at the point of import into UAE — your inbound shipment from India to your Dubai 3PL warehouse. The CoO is filed on export from India and presented at Dubai Customs when the shipment arrives. Who warehouses the goods after clearance does not affect your CEPA entitlement.
What if my manufacturer is in India but I am a UAE-registered company?
CEPA duty relief depends on the origin of the goods (India), not the nationality of the company buying them. If your product is made in India and exported from India with a valid CoO, it qualifies — regardless of whether your business entity is Indian or UAE-registered.
Is there a minimum shipment value to use CEPA?
No minimum value applies. However, for very small shipments the administrative overhead of filing a CoO may not justify the duty saving. For any commercial B2B shipment above AED 5,000, the saving is almost always worth claiming.
The catch: CEPA only works if the rest of your setup does too
A Certificate of Origin saves you duty. But it doesn't solve your IOR (Importer of Record) problem, your UAE trade licence requirement, your 3PL warehousing, or your last-mile delivery. These are the other pieces Indian brands get stuck on before they ever reach the point of claiming CEPA benefits.
Xeliport handles the full stack — IOR, customs clearance, Dubai warehousing, last-mile, and forex settlements — so you can focus on selling. CEPA savings are built into every shipment we manage on your behalf.
Ready to ship to UAE with zero customs duty?
We are currently onboarding a select cohort of pilot brands. Tell us about your product, your volumes, and your timeline — and we'll handle the rest. Apply for Early Access at xeliport.com.