Garments made in India enter the United Arab Emirates free of customs duty under the India–UAE Comprehensive Economic Partnership Agreement (CEPA), instead of the standard 5% GCC duty. The exemption depends on one document: a CEPA certificate of origin issued in India. This guide explains the certificate, the origin rule, and what it saves. Checked against official sources on 7 October 2026.
The rate, in one line
Standard UAE duty on imported clothing is the 5% GCC common external tariff, charged on the CIF value. Under CEPA, which has applied since 1 May 2022, UAE customs exempts goods of Indian origin from customs duty. This covers dresses, kaftans, skirts and scarves alike.
The certificate of origin
- Who issues it: an issuing agency in India, through the government’s electronic certificate-of-origin platform (Trade Connect). The certificate is electronic and carries a QR code that UAE customs can verify.
- Who uses it: the importer’s clearing agent in the UAE presents it with the import declaration to claim the exemption.
- Without it: the shipment pays the full 5% duty.
Does my garment qualify?
For garments, the CEPA origin rule is a change of tariff heading plus 40% value addition. In plain terms, the garment must be made in India from materials of a different kind, such as fabric cut and sewn into a dress, and at least 40% of its value must be added under the agreement’s rules. Garments cut and sewn in India from fabric normally meet the first test. The value-addition test depends on the cost of imported inputs, which is why the issuing agency checks it before it issues the certificate.
What it saves on a shipment
Take cotton dresses invoiced at AED 10,000, with AED 600 freight and AED 50 insurance. The customs value is CIF: AED 10,650.
| Without certificate | With CEPA certificate | |
|---|---|---|
| Customs duty | 5% = AED 532.50 | 0% = AED 0.00 |
| Import VAT, 5% of (customs value + duty) | AED 559.13 | AED 532.50 |
The duty saving is AED 532.50 on this shipment. Import VAT is usually no cost to a registered business: a UAE VAT-registered importer does not pay it at the border. It self-accounts under the reverse-charge mechanism in its VAT return and recovers the same amount as input tax.
Common mistakes that lose the 0% rate
- Shipping without the certificate, or with details that do not match the invoice.
- Assuming that another Gulf state gives the same exemption. CEPA covers imports into the UAE only. Other GCC states charge the 5% common tariff unless they have their own agreement with India; Oman’s CEPA with India has applied since 1 June 2026.
Check your own garment
- Import duty on dresses from India to the UAE, with a calculator
- Kaftans · Scarves · Skirts
We manufacture and export kaftans, dresses, skirts and scarves from India. We arrange the CEPA certificate of origin for every qualifying shipment. Talk to us about the UAE market.
Sources
- Press Information Bureau, Government of India: India–UAE CEPA entered into force (1 May 2022)
- UAE Ministry of Economy: UAE–India CEPA final text, rules of origin
- Abu Dhabi Customs: UAE–India agreement: Indian-origin goods exempt from customs duties
- UAE Government portal: Clearing the customs and paying customs duty
- Government of India: Trade Connect ePlatform (certificates of origin)
Indicative information from official sources, written 7 October 2026. Rates verified on against the official tariffs. It is not a customs ruling; confirm with your clearing agent before you rely on it.
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