Key Takeaways
- 1The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 May 2022, with the UAE eliminating customs duties on 97% of tariff lines, 80% on Day 1 and the remainder phased over 5-10 years.
- 2China has no comparable trade agreement with the UAE. The China-GCC FTA remains under negotiation, described by trade observers as stuck in a multi-decade impasse, so Chinese-origin goods do not get equivalent preferential access.
- 3CEPA benefits apply to qualifying Indian-origin goods meeting the agreement's rules of origin, buyers should confirm the applicable duty rate for their specific HS code with their customs broker or the UAE Ministry of Economy.
- 4India's west coast ports (Nhava Sheva, Mundra) sit directly on the Arabian Sea, a structurally shorter sailing route to the Gulf than China's east-coast ports.
A Real Trade Agreement, Not a Talking Point
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 May 2022. Under it, the UAE eliminated customs duties on 97% of its tariff lines, covering 99% of India's exports to the UAE by value, with 80% of tariff lines receiving immediate duty elimination from Day 1 and the remainder phased to zero over five to ten years. This is a signed, ratified, operating agreement, not a proposal.
China Doesn't Have This
China has no comparable bilateral free trade agreement with the UAE. The broader China-GCC Free Trade Agreement has been under negotiation for an extended period without conclusion, one trade analysis describes it as stuck in a "two-decade impasse." In practice, this means Chinese-origin goods entering the UAE generally do not receive the kind of preferential duty treatment that Indian-origin goods can access under CEPA. For a UAE buyer comparing landed cost between an Indian and a Chinese refractory supplier, the applicable customs duty is a real, current variable, not a marginal one.
What This Means in Practice
Whether a specific refractory product qualifies for zero or reduced duty under CEPA, and what rules of origin apply, depends on the exact HS classification (6902/6903 for bricks and shapes, 3816 for unshaped refractories, 6806 for ceramic fibre). This is worth confirming directly with a customs broker or the UAE Ministry of Economy before finalising a sourcing decision, rather than assuming a blanket rate. An Indian exporter experienced in CEPA-qualifying trade should be able to issue the Certificate of Origin and supporting documentation as a standard part of the export process.
Geography Also Favours India
Beyond tariff treatment, India's west coast ports, Nhava Sheva (JNPT) and Mundra, sit directly on the Arabian Sea, giving a structurally shorter sailing distance to Gulf ports like Jebel Ali than China's east-coast ports. Combined with CEPA's duty treatment, this gives Indian suppliers a genuine two-part advantage on total landed cost and lead time that is worth factoring into any India-versus-China sourcing comparison for the UAE market.
SAPL Supply for the UAE
Shanker Agencies exports high alumina bricks, magnesia carbon bricks, low cement castables, ramming mass and ceramic fibre products to UAE steel, cement and aluminium plants, with export documentation prepared to support CEPA-qualifying shipments. See our Dubai and Abu Dhabi supply pages, or contact us to discuss your sourcing comparison.
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Frequently Asked Questions
What is the India-UAE CEPA and when did it start?
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE entered into force on 1 May 2022. Under it, the UAE eliminated customs duties on 97% of its tariff lines, covering 99% of India's exports to the UAE by value, with 80% of tariff lines getting immediate duty elimination and the rest phased to zero over 5 to 10 years.
Does China have a similar trade agreement with the UAE?
No. China does not currently have a comprehensive bilateral free trade agreement with the UAE. The broader China-GCC Free Trade Agreement has been under negotiation for an extended period without conclusion. This means Chinese-origin goods generally do not receive the preferential duty treatment that Indian-origin goods can access under CEPA.
Does CEPA apply to refractory materials specifically?
CEPA covers the large majority of tariff lines across goods categories, but whether a specific refractory HS code (6902, 6903, 3816, 6806) qualifies for zero or reduced duty, and under what rules of origin, should be confirmed directly with a customs broker or the UAE Ministry of Economy before finalising a purchase decision. An experienced Indian exporter will already have this documentation process in place.
How do I claim CEPA benefits when importing refractories from India to the UAE?
Importers typically need a Certificate of Origin issued under the CEPA framework, confirming the goods meet the agreement's rules of origin requirements, alongside standard commercial invoice and shipping documentation. Your Indian supplier should be able to provide this certificate as part of standard export documentation.