After gold, silver & platinum, dates from UAE under scanner

New Delhi: After gold, silver and platinum, dates imported from the UAE have come under India’s scanner with the government examining the possibility of the dry fruit from third countries being imported into the country by misusing the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Officials said that industry has flagged concerns that the dry fruit from other countries, especially Pakistan, is being exported by the UAE under the pact.

The effective import duty on fresh, soft and hard dates is between 20-30% but under the CEPA, their imports are duty-free. New Delhi imposes 200% duty on direct imports of all products from Pakistan since 2019.

“Industry has flagged concerns that dates are coming from Pakistan via the UAE and undue benefiting from our trade pact,” said an official, adding that the ministries of commerce and industry, and finance are examining the issue.

The CEPA came into effect May 1, 2022. India imported $277.24 million worth dates in FY24, of which $137.8 million came from the UAE. In 2021-22, the overall imports of the dry fruit were $229.09 million of which $83.58 million came from the UAE.

India’s date imports from Pakistan were $101.19 million in FY19, $0.4 million in FY20, $0.7 million in FY21 and nil after that, according to official data.

“The rules of origin- preferential and non-preferential will be studied and if the wholly obtained criterion is being met,” the official added.

Rules of origin are the criteria which determine the national source of a product and thereby the duty concessions. Wholly obtained criterion refers to goods produced entirely in a certain country. The two sides have put in place stringent rules of origin criteria especially for agricultural goods that prevent any transhipped goods from availing the benefits under the CEPA.

“While the rules of origin exist in each FTA and CAROTAR rules can be used to examine the certificates of origin issued, some commodities are prone to misuse in each FTA and hence the need for constant review, said Bipin Sapra, partner, EY.

The UAE is India’s third largest trading partner and plugging any circumvention is crucial as New Delhi has an $8.2 billion of trade deficit with the emirates in April-July FY25.

The CEPA provides the UAE enhanced market access to India for its key exports such as petrochemicals, dates, metals and consumer products.