Does high-density polyethylene (hdpe), specific gravity 0.94 or more qualify for India–UAE CEPA?

Yes, but the benefit is capped: India's offer on this line is a tariff-rate quota of 3.75% basic customs duty on the first 2,22,000 MT, and the 7.5% rate beyond it. Origin still has to be proved: the Annex 3B rule is "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).".

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.

Rules of Origin for high-density polyethylene (hdpe), specific gravity 0.94 or more — Dubai (UAE) to India

HS 39012000 · I. PRIMARY FORMS POLYMERS OF ETHYLENE · Rules of Origin & preferential rate

Data last updated: 13 September 2026 · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). Rules of Origin per CEPA Annex 3B. Verify your exact HS line before filing.

CEPA benefit is quota-limited

The India–UAE CEPA concession on this line is a tariff-rate quota, not an open rate: 3.75% basic customs duty applies on the first 2,22,000 MT imported this year — and imports beyond it pay the 7.5% rate shown below. Annex 2A modality: "TR of 50% in 5 years with specified year-wise TRQs" (Annex 2A-82); Year 5 of the schedule is calendar 2026. source ↗

CEPA eligible: Yes, within quota
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% → 3.75% in quota / 7.5% beyond

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 high-density polyethylene (hdpe), specific gravity 0.94 or more (HS 39012000), 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. Qualifying on origin is necessary but not sufficient here, because India's offer on this line is a tariff-rate quota: a shipment with a valid Certificate of Origin still pays 7.5% once the year's volume is drawn, and the quota is allocated rather than claimed at the border. HDPE goes into pipes, blow-moulded containers, caps and woven sacks — high-volume Indian conversion sectors. Under CEPA this line carries its own tariff-rate quota, the largest in the polyethylene group: 3.75% basic customs duty on the first 222,000 MT a year, 7.5% above it, and unlike the LLDPE and LDPE lines the volume is not shared with another code. Pipe-grade HDPE also faces BIS certification for potable-water and gas use, which gates the application regardless of duty. The 18% IGST is recoverable. Treat the quota as a window that closes once national volume is drawn, and screen anti-dumping notifications by origin. One further point specific to this line: its quota is not shared with another code, unlike the LLDPE and LDPE lines that draw on one volume between three. That makes the allocation question simpler here, though the volume is still national and year-wise rather than reserved per importer, so the rate a consignment actually pays depends on how much the market has already drawn. 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 high-density polyethylene (hdpe), specific gravity 0.94 or more qualify for India–UAE CEPA?: Yes, but the benefit is capped: India's offer on this line is a tariff-rate quota of 3.75% basic customs duty on the first 2,22,000 MT, and the 7.5% rate beyond it. Origin still has to be proved: the Annex 3B rule is "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).".
What is the Rule of Origin for high-density polyethylene (hdpe), specific gravity 0.94 or more?: 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.