Import duty on argon from Dubai (UAE) to India
HS 28042100 · Dubai / UAE → India · HYDROGEN
Data last updated: · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). CEPA preferential rate per the India–UAE CEPA schedule. Verify your exact HS line before filing.
Duty breakdown on a ₹10,00,000 shipment
Enter your own value to recalculate the table below.
| Component | Standard (MFN) | CEPA |
|---|---|---|
| Basic customs duty | ₹50,000 | ₹0 |
| Social Welfare Surcharge | ₹5,000 | ₹0 |
| IGST | ₹1,89,900 | ₹1,80,000 |
| Total duty | ₹2,44,900 | ₹1,80,000 |
CEPA duty saving on this example: ₹64,900 . Run your own numbers in the import-duty estimator. New to BCD, SWS and IGST? See the glossary.
How this duty changes, year by year
India's schedule of tariff concessions (CEPA Annex 2A) sets a preferential rate for each of ten years, not one permanent figure. For HS 28042100 the modality is TEP over 5 years, reaching zero in 2026.
| Year | 2022 | 2023 | 2024 | 2025 | 2026now | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|---|---|---|---|
| CEPA BCD | 4% | 3% | 2% | 1% | 0% | 0% | 0% | 0% | 0% | 0% |
Rates as published in India's schedule; the agreement entered into force on 1 May 2022, so Year 1 is 2022. CEPA Annex 2A
What drives the rate
Importing argon (HS 28042100) from the UAE to India attracts a 5% MFN basic customs duty, and the India–UAE CEPA preferential rate is 0%. Argon is the essential shielding gas for welding, plus semiconductor, metallurgy and lighting applications, with Indian demand tracking industrial output. CEPA removes the 5% basic duty. Air-separation plants in the UAE produce argon from local atmosphere, so the 40% value-content rule is met straightforwardly here — one of the few lines where the origin question has an easy answer, because the feedstock is literally the air above the plant. The commercial picture is dominated by physical logistics instead: cylinder and cryogenic-vessel movements, cylinder-ownership arrangements, and a PESO licence covering import, storage and handling with approved cylinders or cryogenic vessels and hazardous-cargo documentation. That licence attaches to the receiving site, so it constrains the business rather than the shipment. Duty is a minor line in the landed cost of a gas that ships in steel heavier than the product, but for merchant-gas importers running regular volumes the preference is worth documenting properly once and reusing. The rate is on a published staircase, not a fixed number: Annex 2A takes this line from 4% in 2022 to zero in 2026 — TEP over 5 years — with 0% the rate for 2026. A supply contract signed across that boundary is worth pricing against the later rate. The preference is worth 5.5% of assessable value on every consignment — the 5-point basic-duty gap plus the 10% Social Welfare Surcharge that rides on it — so it scales with shipment size rather than with effort, and the Certificate of Origin costs the same either way. Social Welfare Surcharge adds 10% on the basic duty, not on the goods, and IGST of 18% then applies to the CIF + BCD + SWS total — IGST is recoverable as input tax credit, so the durable benefit is the basic duty alone. Confirm the live rate on ICEGATE before filing; ₹10,00,000 is only the worked example above.
Import compliance & clearances
Beyond duty, importing argon (HS 28042100) into India requires the following regulatory clearances. The CEPA preferential rate does not waive any of these — they apply regardless of origin.
- DGFT Valid IEC (Importer-Exporter Code) required; ITC(HS) import policy: Free source ↗
- PESO Licence from the Petroleum & Explosives Safety Organisation for import, storage and handling, with hazardous-cargo classification and approved packaging or pressure vessels. source ↗
- PESO Compressed and liquefied gases require a PESO licence for import and storage, approved cylinders or cryogenic vessels, and hazardous-cargo documentation. source ↗
Indicative and non-exhaustive — verify the current DGFT / BIS / FSSAI / CDSCO notification for your exact 8-digit HS line before importing. Not customs or legal advice.
Frequently asked questions
- What is the import duty on argon from the UAE to India?
- The standard MFN basic customs duty is 5%; under India–UAE CEPA the preferential rate is 0%. SWS adds 10% on the basic duty and 18% IGST applies on the CIF + BCD + SWS base.
- How much can CEPA save on argon?
- On a CIF value of ₹10,00,000, total duty falls from ₹2,44,900 (MFN) to ₹1,80,000 (CEPA) — about ₹64,900 saved per shipment, scaling with consignment value.
- What do I need to claim the CEPA rate on argon?
- A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 5% MFN rate.