India UAE CEPA certification-Cost, process & Documents required

Updated on July 06, 2024 11:51:30 PM

India UAE CEPA agreement is a bilateral free trade agreement between India and UAE. Traders may now take advantage of streamlined customs procedures and other concessions made by the CEPA when exporting products of all kinds.

The India UAE CEPA Certificate is a Certificate of Origin for preferential treatment. The Department of Commerce issues it, the Central Board of Indirect Taxes and Customs of India, and the Ministry of Economy of the United Arab Emirates.

In this article, we will briefly learn about the India-UAE CEPA agreement and Cepa certificate of origin.

CEPA Certificate [Sample]

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What is India Uae CEPA certificate of origin or CEPA certificate?

CEPA is an acronym for Comprehensive Economic partnership agreement between the govt of India and UAE. IUCEPA registration or India UAE CEPA certification is a certificate of origin for goods exported from India to UAE. The certificate is issued by the government agencies such as DGFT, spice board, and other authorized legal entities.

The CEPA Coo (Certification of origin) is necessary for clearance from the importing country's customs. One of the most significant benefits of having IUCEPA is that exported products are duty-free under the free trade agreement between India & UAE under CEPA.

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CEPA - Rules of origin requirements

Per the CEPA agreement between India-UAE, the products shall be deemed as originating in a party country per the following criteria.

  1. Wholly Obtained products
  2. Value-added Criteria for products.
  3. Change in headings & subheadings
  4. Change in headings & subheadings
  5. Change in harmonized system (HS) chapter
  6. Final manufacturing before export must be done in the exporting country.
  7. Sharing of detailed products info with authorities to comply with preferential treatment
  8. The Product has undergone sufficient working or production per the Product specific rules (PSR) as agreed by the parties under CEPA.

Note : The value addition is lower for the ornaments and jewelry sector only.

Proof of origin:

Can provide the proof of origin of the Product through any of the following means:

  1. Entirely digitized certificates issued by any of the authorized government bodies.
  2. A paper certificate of origin of CEPA registration in electronic or hard copy format issued by the authorized government body.
  3. A certificate of origin of the declaration made out by an approved exporter as per the rules.
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Documents required for CEPA certification

  • Organization based Digital Signature Certificate
  • DGFT Login ID
  • Updated Import Export Code
  • Digital Signature Certificate software
  • Mobile No. & Email address
  • Commercial Invoice
  • Purchase Bill that has details of quantity, origin of raw materials, consumables used in product meant for export
  • Manufacturer Exporter Declaration on the company’s Letterhead
  • Product Description
  • Purchase order from importer company
Documents required for IUCEPA registration
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Process for IUCEPA registration

To obtain a PSARA License in Bihar, follow the given steps as mentioned below -

Account ID creation

An account will be created on the DGFT portal with DSC or any other authorized government portal to apply for CEPA certification.

Documentation

An applicant must provide valid information and required documents with the application to prove the origin of their products.

Verification & authorization

The issuing authority will assess and conduct a full inspection through a risk management system to verify & authenticate the origin of the Product.

Certification

Once the approval is granted after the verification & inspection. Authorities will issue the India UAE cepa certificate or Certificate of origin to the respective applicants. As per agreed rules under the cepa agreement. The certificate of origin or Cepa registration must be in English language only. The issued certificate must have all the required details about the Product and the exporting entity.

Granting PSARA License

The state authority will examine the application after receiving a No objection certificate (NOC) from police may grant the PSARA License in form - IV, if the verification process turns out successfully.

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Fee & validity of CEPA Registration

The India UAE CEPA certification fee is 3,500 rupees only, including our professional charges. The Certification of origin I,e. CEPA certificate for India-UAE CEPA is valid up to 12 months from the date of issuance.

The fee can be breakdown into the following:-

Particulars Fees
Account creation fee ₹2000
Certification Fee per invoice ₹1500
Total Fee ₹3500
Validity of CEPA 12 months from the date of issuance

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Eligibility of products under India-UAE CEPA

If the Product meets the criteria below, it will be considered to have originated in a contracting nation and be eligible for preferential treatment. Wholly Obtained Or Produced Products such as:

  1. Live animals
  2. Agri products
  3. Products made of animals
  4. Products made of Marine animals
  5. Products made of natural resources
  6. Product produced in the territory of the country exclusively
  7. Products have undergone sufficient working or production according to the Product Specific Rules.

Note:- The products mentioned above must be procured or manufactured in the party country, and exporters must produce a legal certificate of origin of products.

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Benefits of India uae CEPA agreement

benefits of IUCEPA Registration
  • Reducing tariffs & trade barriers in preferred countries
  • Encouraging cross- border transactions between the territories of the Contracting counties.
  • Promoting fair competition in the free trade states
  • Ensuring equitable benefits to all Contracting countries
  • Effective mechanism for joint administration & resolution of disputes
  • Framework for regional cooperation and enhance mutual benefits for trade.
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Obligations for exporter under India-UAE CEPA agreement

  • The exporter shall submit the minimum required information and supporting documents for the certificate of origin under India UAE cepa or IUCEPA registration.
  • Any exporter falsely representing any material information relevant to the determination of the origin of products shall be liable to prosecution and penalties.
  • Exporters are required to keep minimum information and supporting documents of their products for five years from the expiry date of the CEPA certificate of origin.
  • The exporter shall keep appropriate commercial accounting records for the production supply of the products.
  • The exporter shall notify the issuing authority, custom authority, and the importer of any chances that could affect the accuracy or validity.
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Non-compliance & penalties

  1. If the certificate of origin establishes the Product's non-compliance, then custom duties shall be levied under the India UAE cepa agreement.
  2. Each Party shall also adopt or maintain measures that provide for the imposition of civil and administrative laws. Where appropriate, it shall implement criminal sanctions for violations of its customs laws.
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Issuing authorities of CEPA in India

Agency Product Category
Export inspection Council & Export inspection Agencies All products
Marine Products Export Development Authority and regional offices Marine products
Development Commissioner, Handicraft & regional offices Handicraft
Spices Board Spices and Cashew Nuts
Coir Board Coir and Coir products
Textile Committee and regional offices Textiles and Clothing
Central Silk Board and regional offices Silk products
MEPZ special Economic Zone All products by Units in Madras SEZ and EOUs located within the jurisdiction.
Kandla Special Economic zone Kandla Special Economic zone
SEEPZ Special Economic Zone All products manufactured by Units in SEEPZ SEZ and EOUs located within the respective jurisdiction
Cochin Special Economic Zone All products manufactured by Units in Cochin SEZ and EOUs located within the respective jurisdiction
NOIDA Special Economic Zone All products manufactured by Units in Noida SEZ and EOUs located within the respective jurisdiction
Visakhapatnam Special Economic Zone All products manufactured by Units in Visakhapatnam SEZ and EOUs located Within the respective jurisdiction
Falta Special Economic Zone All products manufactured by Units in Falta SEZ and EOUs located within the respective jurisdiction
Directorate General of Foreign Trade and regional offices All products
Tobacco Board Tobacco and tobacco products
Agricultural and Processed Food Products Agricultural Products Export Development Authority /APEDA)
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Other free trade agreements

India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow by international expansion. Under Free or Preferential Trade Agreement there are multiple options where certificate of origin can be generated from India for import benefits to importing companies:-

ICPTA - India Chile Preferential Trade Agreement

SAFTA - South Asia Free Trade Agreement

SAPTA - SAARC Preferential Trade Agreement

IKCEPA - India Korea Comprehensive Economic Partnership Agreement

IJCEPA - India Japan Comprehensive Economic Partnership Agreements

AIFTA - ASEAN India Free Trade Agreement

ISFTA - India Sri Lanka Free Trade Agreement

APTA - Asia Pacific Trade Agreement

GSP - Generalized System of Preferences

GSTP - Global System of Trade Preferences

IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement

ISCECA - India Singapore Comprehensive Economic Cooperation Agreement

ISCECA other free trade agreements
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Who are the authorized agencies in India for issuing the certificate of origin?

The authorized agencies in India for issuing the certificate of origin are listed in Appendix 35 of the Handbook of Procedures Vol-1 under the Foreign Trade Policy.

These are:

Agreement Agencies authorized to issue Certificate of Origin
Asia Pacific Trade Agreement (APTA) Export Inspection Council (EIC); Export Development Authorities; Development Commissioners of EPZs and SEZs; FIEO
Global System of Trade Preferences (GSTP) EIC for all products; Tobacco Board, Guntur for tobacco and tobacco products
India Afghanistan PTA EIC
India ASEAN Trade in Goods Agreement EIC
India Chile PTA EIC
India JAPAN CEPA EIC
India Mercosur PTA EIC
India Singapore CECA EIC
India South Korea CEPA EIC
South Asian Free Trade Agreement (SAFTA) EIC
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Frequently Asked Questions (FAQs)

How is CEPA/CECA different from FTA?

A Comprehensive Economic Partnership Agreement (CEPA) or Comprehensive Economic Cooperation Agreement (CECA) is different from a traditional (FTA) Free Trade Agreement in two ways.

Firstly, CEPA or CECA are more comprehensive and ambitious than an FTA in terms of coverage of areas and the type of commitments. While a traditional Free Trade Agreement focuses mainly on goods; a CECA/CEPA is more ambitious in terms of a holistic coverage of many areas like services, investment, competition, government procurement, disputes etc.

Secondly, CEPA/CECA looks deeper at the regulatory aspects of trade than a Free Trade Agreement. It is on account of this that it encompasses mutual recognition agreements that cover the regulatory regimes of the partners. An MRA recognises different regulatory regimes of partners on the presumption that they achieve the same objectives.

Why are almost all the countries signing FTA's?

Countries negotiate Free trade Agreements for a number of reasons:

  1. By eliminating tariffs and some non-tariff barriers Free trade Agreement partners get easier market access into one another's markets. Countries negotiate FTA's for a number of reasons.
  2. Exporters prefer Free trade Agreement's to multilateral trade liberalization because they get preferential treatment over non-Free trade Agreement member country competitors. For Instance in the case of ASEAN, ASEAN has a Free trade Agreement with India but not with Canada. ASEAN's custom duty on leather shoes is 20% but under the Free trade Agreements with India it reduced duties to zero. Now assuming other costs being equal, an Indian exporter, because of this duty preference, will be more competitive than a Canadian exporter of shoes. Secondly, Free trade Agreement's may also protect local exporters from losing out to foreign companies that might receive preferential treatment under other FTAs.
  3. Possibility of increased foreign investment from outside the Free trade Agreement. Consider 2 countries A and B having a Free trade Agreement. Country A has a high tariff and large domestic market. The firms based in country C may decide to invest in country A to cater to A's domestic market. However, once A and B sign a Free trade Agreement and B offers a better business environment, C may decide to locate its plant in B to supply its products to A.
  4. Such occurrences are not limited to tariffs alone but it is also true in the case of non-tariff measures. Especially when a Mutual Recognition Agreement (MRA) is reached between countries A and B. Some experts are of the view that slow progress in multilateral negotiations due to complexities arising from a large number of countries to reach a consensus on polarizing issues, may have provided the impetus for FTA's.
How is India placed globally in terms of its bilateral FTAs/PTAs/ CEPAs/CECAs

India has preferential access, economic cooperation and Free Trade Agreements (FTA) with about 54 individual countries. India has signed bilateral trade deals in the form of Comprehensive Economic Cooperation Agreement (CECA) / Comprehensive Economic Partnership Agreement (CEPA) / Free Trade Agreement / Preferential Trade Agreements (PTAs) with some 18 countries. India is a late & cautious, starter in concluding comprehensive PTA covering substantially all trade with some of its trading partners.

What are (ROO) Rules of Origin ?

Country of origin / Rules of origin (ROO) are the criteria needed to determine a product for purposes of international trade. Their significance is derived from the fact that duties & restrictions in several cases depend upon the source of imports.
Rules of origin are used:

  • to implement measures and instruments of commercial policy such as antidumping duties and safeguard measures;
  • to determine whether imported products shall receive most-favored-nation (MFN) treatment or preferential treatment;
  • for the purpose of trade statistics;
  • for the application of labeling and marking requirements; and
  • for government procurement.
What are some of the criteria used in the (RoO) rules of origin?

The criteria in the (RoO) rules of origin sets out specific & detailed conditions on the level of processing that an imported item from a non Free Trade Agreement partner country must undergo in the Free Trade Agreement partner country (or other eligible countries in the region) before being eligible to be called an originating product of a Free Trade Agreement partner country. Some of the common standards used are :-

  • change in tariff class (this could be at the tariff chapter, tariff heading or tariff sub heading level)
  • regional value addition
  • substantial processing or manufacturing by excluding some minimal operations.
What are the four methods of supply under trade in services?

The four methods of supply –

Method 1: Cross border supply (supply from the territory of a Party into the territory of the other Party). For Instance an architect can send his architectural plan through electronic means; a lecturer can send teaching material to students in any other country; a doctor sitting in France can advise his patient in India through digital means. In all these cases, trade in services takes place and this is equal to cross-border movement of goods.

Method 2: Consumption abroad ( consumption in the territory of a Party by the service consumer of the other Party). For Instance a tourist using hotel or restaurant services abroad; a ship or aircraft undergoing repair or maintenance services abroad.

Method 3: Commercial presence (by a service supplier of a Party, through commercial presence in the territory of the other Party). In this case, the service supplier establishes a legal presence in the form of a representative / branch office / joint venture / subsidiary in the host country & starts supplying services. For Instance a bank opens its branch in another country.

Method 4: Presence/movement of natural persons (by a service supplier of a Party, through presence of natural persons of a Party in the territory of the other Party). For Instance Independent service suppliers (e.g. doctors, engineers, individual consultants, accountants, etc.) who provide services in another country. However, GATS covers only temporary movement & not citizenship, residence or employment on a permanent basis in the foreign country.