Import duty on cut and polished diamonds from Dubai (UAE) to India
HS 71023900 · Dubai / UAE → India · Gems & jewellery
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 | ₹1,00,000 | ₹50,000 |
| Social Welfare Surcharge | ₹10,000 | ₹5,000 |
| IGST | ₹16,650 | ₹15,825 |
| Total duty | ₹1,26,650 | ₹70,825 |
CEPA duty saving on this example: ₹55,825 . Run your own numbers in the import-duty estimator. New to BCD, SWS and IGST? See the glossary.
What drives the rate
Importing cut and polished diamonds (HS 71023900) from the UAE to India attracts a 10% MFN basic customs duty, and the India–UAE CEPA preferential rate is 5%. Cut and polished diamonds are mid-phase, not duty-free. India scheduled them for phased elimination: the duty steps down and continues toward zero in later years, so a UAE-origin stone with a valid Certificate of Origin pays a reduced rate today rather than nothing. The origin rule is unusually light — a sub-heading change plus 6% value addition — reflecting the import-cut-re-export trade this corridor is built on. With IGST very low on diamonds, the basic duty is the main cost lever, which makes the current-year rate worth checking rather than carrying forward. One caveat on our own data: this is an HS-2022 code with no direct line in Annex 2A, which is written in HS-2017, so confirm the position against the implementing customs notification before relying on it. 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 1.5% 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 cut and polished diamonds (HS 71023900) into India requires the following regulatory clearances. The CEPA preferential rate does not waive any of these — they apply regardless of origin.
- DGFT Free; IEC required. Kimberley Process Certification applies to rough diamonds only, not cut & polished 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 cut and polished diamonds from the UAE to India?
- The standard MFN basic customs duty is 10%; under India–UAE CEPA the preferential rate is 5%. SWS adds 10% on the basic duty and 1.5% IGST applies on the CIF + BCD + SWS base.
- How much can CEPA save on cut and polished diamonds?
- On a CIF value of ₹10,00,000, total duty falls from ₹1,26,650 (MFN) to ₹70,825 (CEPA) — about ₹55,825 saved per shipment, scaling with consignment value.
- What do I need to claim the CEPA rate on cut and polished diamonds?
- A valid preferential Certificate of Origin (eCoO 2.0) proving UAE origin under the Rules of Origin. Without it, customs charges the 10% MFN rate.