Rules of Origin for prepared binders for foundry moulds or cores — Dubai (UAE) to India
HS 38241000 · PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES · Rules of Origin & preferential rate
Data last updated: · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). Rules of Origin per CEPA Annex 3B. Verify your exact HS line before filing.
- CEPA eligible
- Yes
- Value addition (RVC)
- 40%
- Tariff-classification change
- CTSH Annex 3B rule set at chapter level — it covers the whole chapter, not this code alone
- MFN → CEPA basic duty
- 7.5% → 0%
Rule of Origin (CEPA Annex 3B, primary source): CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).
Qualifying under the Rules of Origin
To claim the CEPA preference on prepared binders for foundry moulds or cores (HS 38241000), the goods must qualify as UAE-originating. The Product-Specific Rule (Annex 3B) is "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required)": the goods must undergo a change of tariff sub-heading (CTSH) AND add at least 40% regional value content — both conditions, not either/or. Read that rule for what it is: Annex 3B supplies it at chapter level, so it governs hundreds of eight-digit codes rather than this one. It is the correct rule to apply, and it is also the place to check for a more specific carve-out before committing to a claim. Foundry binders hold sand moulds and cores together, making them essential consumables for India's large castings industry serving automotive, pumps and engineering. CEPA removes the 7.5% basic duty. The 40% value-content rule depends on whether the UAE formulated the binder system or merely drummed imported resin — and because a binder is sold as a system rather than a molecule, the formulation work is real value that a careful calculation can capture, unlike simple repacking. Foundries qualify binders through pouring trials and specification, so the supplier relationship is technical and long-term, which makes a standing origin declaration from the manufacturer practical rather than a per-shipment scramble. Resin-based binders may carry flammability or reactivity handling requirements at import, so check the classification of the specific system rather than the category. Keep the technical data sheet and the origin evidence in the same file: the data sheet identifies the producing plant, which is the fact the preference rests on. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 7.5% MFN rate instead of the preference.
Check your own figures in the Rules of Origin (RVC) qualifier. Qualifying is only half of it — the preference is claimed with a Certificate of Origin, issued in the UAE before shipment or retrospectively within 12 months.
Frequently asked questions
- Does prepared binders for foundry moulds or cores qualify for India–UAE CEPA?
- Yes, if it meets the Annex 3B Product-Specific Rule "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTSH) AND add at least 40% regional value content — both conditions are required, not either/or.
- What is the Rule of Origin for prepared binders for foundry moulds or cores?
- Per CEPA Annex 3B: CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).. RVC% = [(FOB − value of non-originating materials) / FOB] × 100 (FOB basis).
- What proof is needed at import?
- A preferential Certificate of Origin filed through eCoO 2.0, presented at customs before clearance. Without it, the 7.5% MFN duty applies.