0% UAE Import Duty on Hotel Linen from India
India–UAE CEPA (2022) eliminates duty on bed linen & bath towels
HS 6302.21 · HS 6302.31 · HS 6302.60 · Form AI Certificate of Origin
What Is India–UAE CEPA?
The India–UAE Comprehensive Economic Partnership Agreement (CEPA) is a bilateral free trade agreement signed on 18 February 2022 and in force from 1 May 2022. It is India's most significant bilateral trade deal and the UAE's first with a major economy. Under CEPA, the UAE eliminated import duties on over 80% of Indian goods by value — including virtually all home textiles.
For hotel linen buyers, the significance is straightforward: hotel bed sheets, duvet covers, bath towels, face towels, and bathrobes manufactured in India enter the UAE at 0% customs duty, versus the standard 5% GCC common external tariff applied to the same products from Turkey, Pakistan, China, or Egypt.
On a typical annual procurement of AED 500,000 in hotel linen, CEPA saves a UAE buyer AED 25,000 in import duty every year — without compromising on product quality or certifications.
HS Codes: UAE Import Duty on Hotel Linen Under CEPA
| HS Code | Product | Standard Duty | CEPA Duty |
|---|---|---|---|
| HS 6302.10 | Bed linen, knitted or crocheted | 5% | 0% |
| HS 6302.21 | Bed linen of cotton (not knitted/crocheted, printed) | 5% | 0% |
| HS 6302.22 | Bed linen of man-made fibres (printed) | 5% | 0% |
| HS 6302.31 | Bed linen of cotton (other — plain / jacquard) | 5% | 0% |
| HS 6302.40 | Table linen of flax (linen) | 5% | 0% |
| HS 6302.51 | Table linen of cotton | 5% | 0% |
| HS 6302.60 | Toilet & kitchen linen of terry towelling (bath towels) | 5% | 0% |
| HS 6302.91 | Bath linen of cotton (other) | 5% | 0% |
| HS 6301.40 | Blankets & travelling rugs of cotton | 5% | 0% |
Rates as per India–UAE CEPA schedule. Verify with your UAE customs broker for the current applicable rate and HS classification.
How to Claim CEPA Preferential Duty — Step by Step
Confirm Indian Origin
Your supplier must manufacture in India with sufficient value addition (typically 35%+ Indian content). Anabyn manufactures entirely in Kerala, India.
Request Certificate of Origin (Form AI)
Under India–UAE CEPA, the preferential origin document is the Certificate of Origin — Form AI, issued by the Export Inspection Council (EIC) or authorised DGFT-approved body.
Declare CEPA on Commercial Invoice
The commercial invoice must include a declaration of Indian origin, the HS code, and a statement referencing India–UAE CEPA for preferential tariff treatment.
Submit to UAE Customs
Your UAE customs broker submits the Form AI Certificate of Origin together with standard import documents (Bill of Lading, packing list, invoice) to claim the CEPA preferential rate at Jebel Ali.
Retain for 3 Years
UAE Customs may audit CEPA claims retrospectively. Retain all origin documents, supplier declarations, and Form AI certificates for 3 years from import date.
CEPA Documents Anabyn Provides
CEPA Duty Savings Examples
| Order | Approx. CIF Value | Standard 5% Duty | CEPA Duty | Saving |
|---|---|---|---|---|
| 1 FCL (500 GSM towels, 5,000 pcs) | AED 120,000 | AED 6,000 (5%) | AED 0 | AED 6,000 |
| 1 FCL (bed sheets 300TC, 2,000 sets) | AED 180,000 | AED 9,000 (5%) | AED 0 | AED 9,000 |
| Annual supply (5 FCL mixed) | AED 750,000 | AED 37,500 (5%) | AED 0 | AED 37,500 |
Illustrative examples. CIF values approximate. Verify with your UAE customs broker.
CEPA vs Competitors: Duty Comparison for UAE Hotel Linen Buyers
Only major textile exporter with zero duty into UAE
Standard GCC tariff — no UAE FTA for textiles
Standard GCC tariff — no UAE FTA
Standard GCC tariff — no CEPA equivalent
Greater Arab Free Trade Area (GAFTA) — not zero
Standard GCC tariff — no UAE FTA
CEPA Hotel Linen Duty — FAQs
What is the India–UAE CEPA and when did it come into force?
The India–UAE Comprehensive Economic Partnership Agreement (CEPA) was signed on 18 February 2022 and came into force on 1 May 2022. It is a bilateral free trade agreement under which India and the UAE agreed to eliminate or reduce import duties on 80%+ of traded goods. Home textiles — including hotel bed linen (HS 6302) and bath towels (HS 6302.60) — are included in the zero-duty schedule, meaning Indian-origin textiles enter the UAE at 0% import duty.
Which HS codes for hotel linen qualify for 0% CEPA duty?
The key HS codes that qualify include: HS 6302.10 (bed linen knitted), HS 6302.21 and 6302.31 (cotton bed linen — printed and other), HS 6302.60 (bath and kitchen linen of terry towelling — the main HS code for hotel bath towels), and HS 6302.91 (other bath linen of cotton). Face towels and hand towels also fall under HS 6302.60. Check with your UAE customs broker for the current CEPA schedule as it may update annually.
What document is needed to claim CEPA preferential duty?
The Certificate of Origin — Form AI is the preferential origin document under India–UAE CEPA. It is issued by the Export Inspection Council (EIC) of India or DGFT-approved issuing bodies. The Form AI must accompany the shipment and be presented to UAE Customs (Federal Customs Authority or Abu Dhabi Customs, depending on the port of entry).
Does Anabyn provide Form AI Certificate of Origin with every shipment?
Yes. Anabyn provides all export documentation including the Certificate of Origin (Form AI under CEPA), commercial invoice with origin declaration, packing list, and Bill of Lading. We can also provide our OEKO-TEX and GOTS certificates and product test reports on request. We have experience with UAE Customs documentation requirements and work with an authorised clearing agent at Cochin Port.
Does CEPA apply if I import via Jebel Ali and re-export to Saudi Arabia?
CEPA applies to the India→UAE import leg only. The 0% duty applies at Jebel Ali. If you re-export to Saudi Arabia, the Saudi GCC common external tariff (5%) applies on the Saudi import leg — not CEPA. However, transshipment within GCC under the GCC Common Customs Law may qualify for different treatment; consult your Saudi customs broker. Direct FCL shipments India→Saudi Arabia attract 5% standard duty.
How much can I save per container load with CEPA?
A typical FCL of hotel towels (5,000 pcs at 500 GSM, CIF value AED 120,000) incurs AED 6,000 in standard 5% duty. Under CEPA, this duty is AED 0 — a saving of AED 6,000 per container. For annual programmes of 5–10 FCLs, CEPA saves AED 30,000–60,000 per year compared to non-CEPA sources (Turkey, China, Egypt, Pakistan). This makes India the clear lowest landed-cost source for UAE hotel linen buyers.
Does CEPA apply to bed linen with embroidery or special finishing?
Yes, as long as the product originates in India (meets the Rule of Origin requirements — substantial transformation in India). Embroidered hotel linen, custom-printed towels, logo-embroidered bathrobes, and other finished textiles from India all qualify under CEPA provided the manufacturing is in India. The HS classification is determined by the final product, not the embellishment method.
Import Hotel Linen from India with 0% UAE Duty
We provide Form AI Certificate of Origin with every shipment. Share your specification and we'll provide a full landed-cost calculation including CEPA-adjusted customs duty, freight, and insurance for Jebel Ali.
Get CEPA-Documented Linen Quote