Calculate Import Duty: India to UAE

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 May 2022. By June 2026 it has eliminated tariffs on the majority of Indian-origin goods entering the UAE, with the remaining staged categories reaching zero between 2026 and 2032. CEPA, plus the UAE's strategic position as a re-export hub, makes the India-UAE lane one of the highest-volume trade corridors in the Middle East.

This guide walks through the duty calculation, the CEPA preference rules, and worked examples for two big Indian export categories: cut diamonds and pharmaceuticals. Run the numbers on the calculator.

The duty layers for India to UAE

For a typical Indian-origin entry into UAE mainland in 2026:

1. GCC Common External Tariff MFN rate (default 5 percent on most goods, 0 percent on some food and capital goods).
2. India-UAE CEPA preferential rate instead of GCC CET, where the goods qualify under CEPA rules of origin.
3. UAE import VAT of 5 percent on the customs value plus duty.
4. Excise tax on tobacco (200 percent), energy drinks (100 percent), sweetened beverages (50 percent), and electronic smoking devices (100 percent).

For entries into a UAE free zone (e.g., Jebel Ali Free Zone, Dubai Airport Free Zone, RAK Free Zone), no duty and no VAT are due until the goods leave the free zone for the mainland or another GCC country.

India-UAE CEPA: how to claim the preference

CEPA Annex II contains the staged tariff schedule. Each line lists the base rate (GCC CET at entry into force) and the current rate as the schedule has progressed. Lines marked "EI" (Entry into Force, immediate) went to zero on day one. Lines marked "B5" reach zero over five years; "B7" over seven; "B10" over ten. A small number of lines are excluded permanently.

To claim CEPA preferences you need:

1. The goods must meet the CEPA rule of origin in the Annex III product-specific rules. Most rules require a tariff shift (typically CTH or CTSH) and a regional value content (commonly 35 percent). Some goods qualify as wholly obtained.
2. A certificate of origin issued by an authorized Indian agency (DGFT, or for textiles the AEPC and TEXPROCIL). Self-certification is being phased in but as of 2026 most claims still require a paper certificate.
3. The UAE importer claims the preference on the customs declaration with the CEPA preference code.

The certificate is valid for one year from issuance.

Worked example: 500,000 USD of cut and polished diamonds

You are exporting 500,000 USD of cut and polished diamonds (HTS 7102.39) from Mumbai to Dubai for sale in the UAE market. GCC CET on cut diamonds is 0 percent. CEPA does not change this because it was already 0 percent.

If sold to a UAE-resident customer through a mainland Dubai business, the 5 percent VAT is recoverable input tax. The effective cost to a B2B chain is zero. For B2C (sold directly to a private consumer), the VAT is a real cost.

Diamonds and gold for re-export typically clear through Dubai Diamond Exchange or Dubai Gold and Diamond Park in a free zone, avoiding VAT and duty entirely until the goods leave the free zone.

Worked example: 300,000 USD of pharmaceutical APIs

Indian pharma API exports to the UAE generally cover the local UAE manufacturing fill-finish plants and onward re-export to Saudi and other GCC markets. HTS 2941.xx (antibiotics), GCC CET 0 percent. CEPA does not change a 0 percent line.

Regulatory hurdles dominate: UAE Ministry of Health registration, GMP certification of the Indian manufacturing site, and labeling in Arabic. The duty calculation is secondary.

Try your own line items on the calculator.

When CEPA actually saves money: textiles and engineering goods

The categories where CEPA produces real duty savings are those where GCC CET is 5 percent and the line has cleared the staging:

• Cotton garments (HTS 6109, 6110, 6203): GCC CET 5 percent, CEPA 0 percent (immediate).
• Leather products (4202): GCC CET 5 percent, CEPA 0 percent (immediate).
• Machinery (chapter 84): GCC CET 5 percent on many lines, CEPA staged to 0 percent by 2027 or 2028.
• Auto components (8708): GCC CET 5 percent, CEPA 0 percent on most lines.

On a 100,000 USD shipment of cotton trousers, the 5 percent saving is 5,000 USD per consignment. Across an annual run of 2 million USD that is 100,000 USD of duty saved, before VAT (which is recoverable for B2B anyway).

UAE free zone considerations

A UAE free zone is a designated zone (per the VAT designated zone list) where goods can be:

• Imported without paying customs duty
• Stored, processed, and re-exported with no UAE duty
• Sold to other free zone companies without VAT
• Sold to overseas customers as exports

The economics of a free zone setup are most attractive for trader-distributors who serve regional re-export, not for those selling exclusively into the UAE mainland. If everything you import is destined for UAE mainland end consumption, the free zone deferral doesn't change the total tax bill, just the timing.

For Indian exporters acting as their own importer of record, a free zone company in Jebel Ali or DMCC can take title, hold inventory, and ship to GCC customers on demand. Each onward shipment into mainland UAE or another GCC clears separately.

High-traffic HS chapters for India to UAE

• Chapter 71 (gems, jewelry): Dubai is the world's third-largest gold trading hub. Free zone clearance dominates.
• Chapter 30 (pharmaceuticals): Indian generics fill UAE retail and re-export.
• Chapter 10 (cereals): Basmati rice flows in large volumes; CEPA 0 percent.
• Chapter 9 (spices): 0 percent GCC CET.
• Chapter 17 (sugar): special UAE excise considerations on processed sweets.
• Chapter 84/85 (machinery, electronics): re-export hub for Africa and CIS.
• Chapter 24 (tobacco): 200 percent excise tax plus 5 percent VAT plus duty.

How the calculator handles this lane

When you select Origin: India and Destination: UAE in the calculator:

1. Looks up the GCC CET MFN rate.
2. Applies India-UAE CEPA preference if the line is on the staging schedule.
3. Applies the appropriate VAT (5 percent or 0 percent on certain healthcare and education goods).
4. Flags excise tax on tobacco, energy drinks, sweetened beverages.
5. Notes free zone vs mainland clearance for the appropriate treatment.

Related guides

• Calculate Import Duty: India to USA
• Calculate Import Duty: India to UK
• FTA Preferences: Saving 5-25% on Duty
• Pharma HS Codes and FDA Requirements
• Incoterms 2020 vs Landed Cost: A Clear Guide
• How to Read a Commercial Invoice for Customs

Run a calculation on the India to UAE calculator.