Diesel generating sets, output not exceeding 75 kVA (HS 85021100) under India–UAE CEPA
HS 85021100 · ELECTRIC GENERATING SETS AND ROTARY CONVERTERS · 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
- CTH
- MFN → CEPA basic duty
- 10% → 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 diesel generating sets, output not exceeding 75 kva (HS 85021100), 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. Small diesel gensets power construction sites, telecom towers, small industry and backup supply across India, so this is a high-volume capital-goods line. CEPA takes the 10% basic duty to zero, a direct saving on equipment where margins are thin. The heading-change-plus-40%-value rule is demanding for gensets, whose value concentrates in the engine and alternator — usually imported — so a UAE assembler must add substantial local content to qualify. Importers should also factor BIS and emission-norm compliance, which apply regardless of the duty route and often gate clearance more tightly than tariff. 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.
Frequently asked questions
- Does diesel generating sets, output not exceeding 75 kva 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 diesel generating sets, output not exceeding 75 kva?
- 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 10% MFN duty applies.