In pictures

Explainer

Duty without the certificate (with it: 0%)

Explainer

Chart

Explainer

Check before the goods sail

In this article

What it is
What it is worth
Who does what
Five mistakes that void it
What to put in your purchase order
A note on the EU
Check your rate

Short answer: a free trade agreement does not lower your duty automatically. Your customs office charges the normal rate unless the shipment comes with valid proof that the goods originate in India under that agreement's rules. Ask for it before the goods ship, because it is hard to fix afterwards.

What it is

A preferential certificate of origin is an official statement that the goods qualify as Indian under a named trade agreement. It is issued in India, for a specific shipment, and matched to the invoice.

There is also a plain, non-preferential certificate of origin. It states where goods were made but gives no duty reduction. Make sure you ask for the preferential one under the right agreement.

What it is worth

Duty without the certificate (with it: 0%)

UAE5% to 0%

Australia5% to 0%

UK, towels8% to 0%

UK, bed linen12% to 0%

EU: no agreement in force12% either way

Market	Without valid proof of origin	With it
UAE	5 percent	0 percent on qualifying lines under the India-UAE CEPA
UK	About 8 percent on towels, 12 percent on bed linen	0 percent under the India-UK CETA
Australia	5 percent	0 percent under the India-Australia ECTA
EU	12 percent	12 percent. No agreement is in force yet
USA	MFN plus Section 301	The same. No agreement covers these goods

On a $20,000 shipment of bed linen to the UK, that one document is worth about $2,400 on the goods alone, and more once freight is counted in the customs value.

Who does what

You

Name the agreement before production ends.

The exporter

Applies in India and sends it with the documents.

Your broker

Claims the rate on the import declaration.

You tell the supplier, before production ends, which agreement you will claim under.
The exporter applies for the certificate in India and sends it with the shipping documents.
Your customs broker makes the claim on the import declaration, quoting the certificate.

Five mistakes that void it

Check before the goods sail

Details match the invoice and bill of lading

The right agreement and form

Asked for before shipping

Tariff code agreed with your broker

Goods meet the origin rule

Details that don't match. The description, quantity, invoice number or consignee differs from the invoice or bill of lading.
The wrong agreement. Each agreement has its own form and procedure.
Asking too late. Requested after the goods have sailed, it may not arrive before they do.
A tariff code mismatch. The code on the certificate must be the one your broker declares.
Goods that don't qualify. Origin rules look at where the materials came from and what was done in India. Towels and sheets made in India from Indian cotton are the simple case. Imported fabric is not.

What to put in your purchase order

*"Supplier to provide a preferential certificate of origin under [agreement name] for this shipment, with details matching the commercial invoice and bill of lading."*

Add your broker's contact so both sides can agree the tariff code in advance.

A note on the EU

You may see older advice mentioning a GSP form or a EUR.1 certificate for India. Neither helps today. India's GSP preference on textiles is withdrawn for 2026 to 2028, and the EUR.1 form is not used for India. See what 12 percent duty means for your price.

Check your rate

The import duty and FTA calculator shows the normal rate, the agreement rate and the document needed for each market. UAE buyers should also read our page on CEPA and home textile duty. When you request a quote, tell us your country and we'll list the origin document on the proforma.