Rules of Origin for knitted elastomeric fabric (5% or more elastomeric yarn) — Dubai (UAE) to India
HS 60041000 · KNITTED OR CROCHETED FABRICS OF A WIDTH EXCEEDING 30 CM · 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.
Import restricted
DGFT lists this line as Restricted under ITC(HS) Schedule 1 (Import Policy), so it needs an import authorisation or must meet the stated condition — it is not freely importable. DGFT condition: 1. Import is "Restricted" till 31.03.2025. 2. However, import is 'Free' if CIF value is 3.5 US Dollar and above per Kilogram. 3. MIP condition, however, shall not be applicable for imports by Advance Authorisation holders, EOUs and units in the SEZ. 4. The AA holders, EOUs and SEZ units shall not be allowed to sell the imported inputs into Domestic Tariff Area (DTA). source ↗
- CEPA eligible
- Yes
- Value addition (RVC)
- 40%
- Tariff-classification change
- CTH Annex 3B rule set at chapter level — it covers the whole chapter, not this code alone
- MFN → CEPA basic duty
- 20% → 0%
Rule of Origin (CEPA Annex 3B, primary source): CTH + 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 knitted elastomeric fabric (5% or more elastomeric yarn) (HS 60041000), the goods must qualify as UAE-originating. The Product-Specific Rule (Annex 3B) is "CTH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required)": the goods must undergo a change of tariff heading (CTH) 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. Knitted fabric containing 5% or more elastomeric yarn but no rubber thread carries a high basic customs duty that CEPA eliminates. This is the stretch fabric behind activewear and shapewear, and the 5% elastomeric threshold is a measured test rather than a marketing claim — a laboratory report on yarn composition is the document that survives a query, and fabrics containing actual rubber thread fall outside this line entirely. IGST is 5%. Origin requires a change of tariff heading plus 40% value addition, so knitting in the UAE from imported yarn qualifies. One further check: this line is Restricted under the ITC(HS) policy, so an import authorisation is required — a permission question that precedes the rate question entirely. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 20% 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 knitted elastomeric fabric (5% or more elastomeric yarn) qualify for India–UAE CEPA?
- Yes, if it meets the Annex 3B Product-Specific Rule "CTH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTH) AND add at least 40% regional value content — both conditions are required, not either/or.
- What is the Rule of Origin for knitted elastomeric fabric (5% or more elastomeric yarn)?
- Per CEPA Annex 3B: CTH + 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 20% MFN duty applies.