For Indian importers, the India–UAE CEPA can cut or remove the customs duty on goods sourced from the UAE – but the preference belongs to the importer, and so does the risk. India places a due-diligence burden on the party claiming preference, and customs can question, verify and deny a claim, recovering duty if the origin position does not hold.
ATB Legal advises Indian importers on claiming CEPA preference correctly and defensibly – meeting the CAROTAR due-diligence obligations, holding the right proof of origin, and standing behind the claim if it is examined. Where goods are sourced from a UAE group company or supplier, we coordinate with the export side so the two ends of the claim are consistent.
1. CEPA Preference on the India Import Side
The India–UAE CEPA, in force since 1 May 2022, gives preferential – often zero – customs duty on a large share of goods imported into India from the UAE, provided they qualify under the rules of origin. For an importer, that is a direct saving on landed cost, repeated across every consignment of a qualifying product.
The saving is real but conditional: it must be claimed at import, supported by valid proof of origin, and capable of surviving scrutiny. ATB Legal advises on whether a product qualifies and on claiming the preference so it is not unwound later.
2. The Importer’s Burden – CAROTAR 2020
Preference claims into India are governed by the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR), made under Section 28DA of the Customs Act. These rules place the burden on the importer: the importer must possess sufficient origin information, exercise due diligence, and be able to demonstrate that the goods meet the origin criteria. Holding a certificate alone is not enough.
Customs may seek information, question the claim, and – if not satisfied – deny preference and recover duty. ATB Legal advises importers on meeting the CAROTAR due-diligence obligations in substance, not merely in form, so a claim is defensible from the outset.
3. Proof of Origin & the March 2025 Change
In March 2025, India amended CAROTAR to replace the term “certificate of origin” with the broader “proof of origin”, aligning with the move towards self-certification under newer trade agreements, and routing verification requests through the Directorate of International Customs. For CEPA importers, the practical point is that the documentary basis of a claim, and the way it is verified, has been modernised.
ATB Legal advises on the current proof-of-origin requirements for a CEPA claim into India and on responding to verification requests when they come.
4. Rules of Origin & Value Addition
Preference depends on the goods genuinely originating in the UAE under the CEPA rules – wholly obtained there, or sufficiently processed to meet the applicable origin rule, typically a change in tariff classification or a value-addition threshold. Goods merely trans-shipped through the UAE, or only nominally processed, do not qualify.
The origin analysis is where claims most often fail, especially for goods with third-country inputs. ATB Legal advises on whether a product meets the CEPA origin rules and on documenting the value-addition that supports the claim.
5. Gold, Silver & Precious Metals – Special Restrictions
Gold, silver and platinum-group metals are the most scrutinised category on the India side, and the rules have tightened materially. India has restricted the CEPA concession on these metals – channelling imports through nominated agencies, qualified jewellers and valid tariff-rate-quota (TRQ) holders, introducing finer HS codes for gold, silver and platinum, and limiting the platinum concession to high-purity metal – after arrangements that routed third-country metal through the UAE or used minimal alloying to claim preference.
These measures are still evolving: as of 2026 the preferential route for gold in particular is tightly constrained in practice, and the position continues to change with successive budgets and notifications. ATB Legal advises precious-metals importers, refiners and jewellery businesses on the current restrictions, on whether a genuine value-addition position can support a claim, and on responding when a precious-metal claim or certificate is challenged – and we date our advice, because this area moves.
6. Verification, Denial & Duty Recovery
Where customs questions a preference claim, it can request information, initiate verification with the exporting country, and – if unsatisfied – deny preference. The consequence is recovery of the duty foregone, often across past consignments, with interest and potential penalty. For a regular importer, a single adverse view can therefore carry a large retrospective bill.
ATB Legal advises on responding to verification and denial – the evidence, the submissions and the appeal – and on containing the retrospective exposure where a pattern of imports is affected.
7. Building a Defensible Import Position
The reliable way to use CEPA on the import side is to build a defensible position once and maintain it: confirm origin and classification, assemble and keep the origin information CAROTAR requires, and align the documentation with the UAE supplier or group company. This is far cheaper than meeting a verification unprepared.
ATB Legal helps importers put this position in place and, where goods come from a UAE counterparty, coordinates with the UAE customs and trade-compliance export side so the claim is consistent end to end.
8. Our Process
A typical engagement runs in four steps: a review of the product, its origin and its classification to assess CEPA eligibility; advice on the CAROTAR due-diligence and proof-of-origin requirements; assembly of a defensible origin position and documentation; and representation if a claim is verified, questioned or denied. Precious-metal matters are handled with particular care given the current restrictions. Remote handling is available throughout.
Frequently asked questions
Can an Indian importer claim preferential duty on goods from the UAE?
Yes – where the goods originate in the UAE under the CEPA rules of origin and you meet the CAROTAR requirements, you can claim preferential, often zero, customs duty. The preference must be claimed and defended by you as the importer, and we advise on doing so.
What is CAROTAR, and what does it require of importers?
India’s Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, made under Section 28DA. They require the importer to possess origin information and exercise due diligence, and let customs verify and deny preference. A CEPA claim into India must be defensible under these rules.
What due diligence must an importer do under CAROTAR?
Under CAROTAR, the importer must hold sufficient information to satisfy itself that the goods genuinely meet the origin criteria – a certificate alone is not enough – and produce it if customs asks. We advise importers on meeting this in substance, so a claim withstands scrutiny.
What did India’s March 2025 proof-of-origin change do?
India replaced “certificate of origin” with the broader “proof of origin” in CAROTAR, reflecting the shift to self-certification under newer agreements, and routed verification through the Directorate of International Customs. We advise on the current documentary requirements for a CEPA claim.
Can gold be imported under the CEPA preference into India?
Only within tight limits. As of 2026 India restricts the CEPA concession on gold – channelling it through nominated agencies, qualified jewellers and tariff-rate-quota holders – and the preferential route is heavily constrained in practice. The position is changing with successive notifications, so we advise on the current rules before any transaction.
How are silver and platinum treated under the CEPA on import into India?
These are tightly scrutinised. India introduced finer HS codes and limited the platinum concession to high-purity metal after misuse of platinum-alloy classifications, and silver is similarly restricted. We advise precious-metals importers on whether a genuine, defensible claim is available under the current rules.
What happens if customs denies a CEPA claim on an Indian import?
Customs can deny preference and recover the duty foregone, often retrospectively across past consignments, with interest and potential penalty. We advise on responding to verification and denial and on containing the retrospective exposure.
Can a CEPA denial reach back across past shipments?
Yes – a denied claim can lead to recovery across earlier imports of the same goods, which is why a defensible position from the outset matters. We advise on both prevention and, where a demand arises, the response and appeal.
How does an importer build a defensible CEPA position?
Confirm origin and classification, assemble and keep the origin information CAROTAR requires, and align the documentation with your UAE supplier – once, and maintained – rather than scrambling at verification. We help importers put this in place.
Can you align the India import and UAE export sides of a CEPA claim?
Yes – with offices in both, we align the India-import CAROTAR position with the UAE export and proof-of-origin side of the same shipment (see our India–UAE CEPA page for the UAE side), so the claim is consistent end to end.
⭐ Representative Experience (anonymised)
An importer claiming CEPA preference on goods from a UAE supplier was advised on its CAROTAR due-diligence position and the origin documentation needed to defend the claim.
A jewellery business was advised on the current restrictions on importing gold under the CEPA concession and on whether a compliant route was available under the prevailing rules.
An importer facing a verification and proposed denial of preference was advised on the response, the origin evidence, and the retrospective duty exposure across past consignments.
🏆 How we work
- India-import focus – the CAROTAR due-diligence burden that actually decides a claim, handled for the importer who carries the risk.
- Current on the restrictions – the March 2025 proof-of-origin change and the 2025–26 tightening on gold and precious metals, advised with a date attached because the area moves.
- Defensible, not papered – origin positions built to survive verification, not merely to clear at import.
- Exposure-aware – retrospective recovery across past consignments anticipated and contained.
- Corridor coverage – the India and UAE sides of a preference claim aligned in one relationship.