Rules of Origin for emeralds (precious stones), unworked or simply sawn — Dubai (UAE) to India
HS 71031031 · PRECIOUS STONES · 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
- 10% → 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 emeralds (precious stones), unworked or simply sawn (HS 71031031), 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 as the residual rule, applying to the chapter apart from the lines given their own, 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. Emeralds are the highest-value coloured stone in this corridor, and Jaipur is India's cutting centre for them, drawing rough parcels routed through Dubai's coloured-stone trade. Unlike the diamond lines, which carry a 6% value-addition threshold, coloured precious stones must meet the standard 40% regional value content alongside a sub-heading change — a materially harder test, because rough stones carry little UAE-side processing value and the trade is largely a trading one. Model the value chain before claiming preference: if the stone was merely bought and sold in the UAE rather than worked there, it fails origin and the full MFN rate applies on assessment, after the parcel has been cut and committed. The IGST band on precious stones is very low, so the basic duty is the whole question, and the certificate is the only thing standing behind it. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 10% 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 emeralds (precious stones), unworked or simply sawn 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 emeralds (precious stones), unworked or simply sawn?
- 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 10% MFN duty applies.