Question 1

What is the India-UAE CEPA and how does it help Gulf buyers?

Accepted Answer

The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE came into force in May 2022. It eliminates or significantly reduces customs duties on approximately 90% of India's exports to the UAE by value. For Gulf buyers, this means products like textiles, gems, jewellery, plastics, machinery, and many other categories can enter the UAE at zero or reduced duty. The agreement makes India a far more cost-competitive sourcing origin compared to countries without a similar trade deal with the UAE.

Question 2

Which products qualify for zero or reduced duty under the CEPA?

Accepted Answer

Most textiles and garments, leather goods, footwear, gems and jewellery, certain chemicals, plastics, engineering goods, and select food products are eligible for zero or reduced duty. The specific rate depends on the HS code of the product. Buyers should check the CEPA tariff schedule (available on India's DGFT website or the UAE Ministry of Economy portal) against the HS code of the goods they plan to import. Not every product is covered, so verifying the tariff line before placing an order is important.

Question 3

What are the rules of origin and what documentation do I need?

Accepted Answer

To claim preferential duty under the CEPA, goods must meet the rules of origin, which generally require around 35% to 40% domestic value addition in India (the exact threshold varies by product). The key document is a Certificate of Origin (CoO), which the Indian exporter obtains from an authorized body such as the Federation of Indian Export Organisations (FIEO) or a designated chamber of commerce. At the UAE customs end, the importer presents this CoO along with the commercial invoice, packing list, and bill of lading. Without a valid CoO, standard MFN duties apply.

Question 4

How does Sauda help me find the right Indian supplier under the CEPA?

Accepted Answer

Sauda works as a free sourcing concierge on WhatsApp. You send your product requirement to wa.me/9987549010, and Sauda's team finds matching Indian factories, verifies each supplier by checking their GST filings and returns (confirming the business is active and tax-compliant), then calls and negotiates with shortlisted factories on your behalf. Within 24 hours, you receive the cheapest verified live quotes. Because Sauda checks GST compliance, you also get confidence that the supplier is a legitimate manufacturer capable of issuing proper export documentation, including the invoices needed for a Certificate of Origin.

Question 5

Is Sauda really free for buyers? How does it make money?

Accepted Answer

Yes, Sauda is completely free for buyers. There are no fees, commissions, or hidden charges on the buyer side. Sauda earns from the supplier side of the transaction. This model means your interests as a buyer are aligned with getting the best price and quality, since Sauda's value to suppliers comes from connecting them with serious, qualified purchase inquiries.

Question 6

How does Sauda verify Indian suppliers, and why does that matter for CEPA imports?

Accepted Answer

Sauda verifies each supplier by reviewing their GST filings and GST return history. This confirms that the factory is a registered, active business that files taxes regularly, which is a strong indicator of legitimacy and operational stability. For CEPA imports specifically, this matters because your Indian supplier must be a bona fide manufacturer or exporter to obtain a valid Certificate of Origin. A supplier with irregular or lapsed GST filings is a red flag. Platforms like IndiaMART or TradeIndia list large numbers of suppliers and are useful for initial research, but they do not typically perform this level of financial compliance checking. Sauda adds that verification layer before you ever receive a quote.

India-UAE CEPA Sourcing Guide: How Gulf Buyers Can Import Duty-Free from India

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