June 7, 2022
UAE implements Comprehensive Economic Partnership Agreement with India related to imports
On 19 May 2022, the Dubai Customs Authority issued Policy No. 54/2022 on the implementation of the Comprehensive Economic Partnership Agreement (CEPA) signed between India and the United Arab Emirates (UAE). The CEPA has been in force since 1 May 2022.
The CEPA enables traders from both countries to avail preferential treatments and customs benefits related to the importation of various goods. The Department of Commerce or the Central Board of Indirect Taxes and Customs of India, and the Ministry of Economy in the UAE, respectively, are responsible for the issuance of the certificate of origin for preferential treatment.
The CEPA between India and the UAE facilitates trade between both countries by providing immediate and progressive duty reductions on imported goods and transparency in customs procedures for preferential treatment of imported goods.
The key benefits and requirements related to the CEPA are:
Companies involved in the import and export of goods that are potentially eligible for preferential treatment will need to review and amend their products' database related to their cross-border transactions to avail customs benefits and to avoid customs compliance issues.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Consulting LLC, Dubai
Ernst & Young LLP (United States), Middle East Tax Desk, New York