Rules of Origin for non-agglomerated metal carbides mixed together or with metallic binders — Dubai (UAE) to India
HS 38243000 · 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 non-agglomerated metal carbides mixed together or with metallic binders (HS 38243000), 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. Mixed metal-carbide powders are the feedstock for cemented-carbide tooling, wear parts and hard-facing — inputs to India's tooling and engineering industry. CEPA removes the 7.5% basic duty. The 40% regional-value-content rule is demanding here and should be treated sceptically: tungsten and cobalt raw materials are globally sourced and the UAE has limited primary carbide production, so blending imported powders regionally rarely qualifies. The sub-heading change alone will not carry a claim, because Annex 3B requires both limbs. Tungsten and cobalt supply is also strategically sensitive and price-volatile, which means the invoice value moves for reasons unconnected to the transaction and a value-addition calculation done last year may not hold this year. Verify the powder's manufacturing origin rather than its shipping origin before claiming the preference, and keep the producer's batch documentation — grain size and binder content are recorded there alongside the plant, so the same record supports both the technical acceptance and the origin claim. 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 non-agglomerated metal carbides mixed together or with metallic binders 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 non-agglomerated metal carbides mixed together or with metallic binders?
- 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.