Customs duty from United Arab Emirates to India: Import Duty Guide

Key Takeaways

• The India-UAE Comprehensive Economic Partnership Agreement (CEPA), in force since 1 May 2022, gives preferential customs rates on qualifying UAE-origin goods.
• The agreement is actively being deepened, not left static - a Joint Committee reviewed implementation in November 2025, and a customs notification updated concessional CEPA rates as recently as May 2026.
• Both countries have reaffirmed a target of $100 billion in non-oil bilateral trade by 2030.
• India’s imports from the UAE reached roughly $63.9 billion in India’s 2026 fiscal year, with total bilateral merchandise trade around $101.3 billion.
• The relationship is dominated by gold, precious stones, and crude oil - the UAE functions partly as a bullion and re-export hub in this trade flow, not primarily a source of manufactured consumer goods.

UAE-India Trade at a Glance

India’s imports from the UAE reached roughly $63.9 billion in India’s 2026 fiscal year, with total bilateral merchandise trade around $101.3 billion - making the UAE consistently one of India’s top import sources, alongside China and Russia (CEPA Council). Precious stones and pearls alone accounted for roughly $26 billion of this trade in a recent year, reflecting the UAE’s role as a major gold and jewelry trading hub rather than a manufacturing exporter.

Is There a Trade Deal Between the UAE and India?

Yes - the India-UAE Comprehensive Economic Partnership Agreement (CEPA), in force since 1 May 2022, gives preferential customs treatment on qualifying UAE-origin goods. The agreement is being actively maintained and deepened rather than left as a one-time deal: a 3rd Joint Committee Meeting reviewing implementation was held in New Delhi on 26 November 2025, and a customs notification (18/2026) updated concessional CEPA rates effective 13 May 2026 (TaxGuru). Both governments have reaffirmed a target of $100 billion in non-oil bilateral trade by 2030.

How Much Will You Pay Importing from the UAE to India?

For genuinely UAE-originating goods that meet CEPA’s rules of origin and fall under its concessional rate schedule, expect a reduced Basic Customs Duty relative to the standard MFN rate - the exact preferential rate depends on the specific tariff line and CEPA’s own schedule, which was itself updated as recently as May 2026. Outside of CEPA-qualifying goods, India’s standard stack applies: Basic Customs Duty, a Social Welfare Surcharge equal to 10% of the BCD amount, and Integrated GST at 5-28% depending on category, all calculated on the CIF customs value. India has no general duty-free threshold for commercial imports of any value - only a narrow ₹5,000 exemption for genuine personal gifts exists, and it doesn’t cover e-commerce purchases.

Frequently Asked Questions

Is CEPA still active and up to date?

Yes - it’s been continuously in force since 2022, with a Joint Committee review in November 2025 and an updated concessional rate schedule taking effect in May 2026, indicating the agreement is being actively maintained rather than left static.

Does CEPA apply to gold and jewelry imports specifically?

Gold, precious stones, and jewelry dominate this trade relationship by value, though the exact preferential treatment for any specific item depends on its tariff classification and whether it meets CEPA’s rules of origin - check the specific product category rather than assuming a blanket rate.

How big is UAE-India trade?

India’s imports from the UAE reached roughly $63.9 billion in India’s 2026 fiscal year, with total bilateral merchandise trade around $101.3 billion, making the UAE one of India’s most significant single trading partners.

What does the UAE mainly export to India?

Gold, precious stones and jewelry, and crude oil and petrochemicals dominate - reflecting the UAE’s role as both an energy exporter and a major regional trading and bullion hub, rather than a manufacturing base.