India Oman CEPA: Duty Benefits for Indian Exporters

The India Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on June 1 2026. Indian exporters can now claim preferential customs duty benefits in Oman across 98.08% of tariff lines, covering 99.38% of India’s exports by value. To claim these benefits, exporters must verify HS code eligibility, meet the Rules of Origin criteria and obtain a valid Certificate of Origin before shipment.

If you export to Oman or plan to, this is the most important trade update of 2026. Here is everything you need to know and exactly what you need to do.

What is the India Oman CEPA and How Does It Work?

The India Oman Comprehensive Economic Partnership Agreement is a bilateral trade agreement between India and the Sultanate of Oman. It was signed on December 18 2025 in Muscat in the presence of Prime Minister Narendra Modi and Sultan Haitham Bin Tarik. It came into force on June 1 2026.

This is only the second bilateral trade agreement Oman has signed with any country. The first was with the United States in 2006. India is now the only country besides the US to hold a comprehensive trade pact with Oman.

The agreement covers trade in goods and services, investment, professional mobility and regulatory cooperation. For goods exporters, the key benefit is preferential customs duty, which means your products face lower or zero duty at Oman customs compared to exporters from countries without a CEPA with Oman.

Before this agreement, only 15.33% of India’s exports entered Oman duty-free under the standard Most Favoured Nation (MFN) framework. Under CEPA, that jumps to 99.38% of exports by value. Exports worth $3.64 billion that previously faced duties of up to 5% now enter Oman at zero duty.

Bilateral trade between India and Oman stood at $11.18 billion in FY2025-26. This agreement is expected to significantly scale that number.

Which Indian Products Are Eligible Under India Oman CEPA?

Oman has granted immediate duty-free access across a wide range of Indian product categories. Key sectors include:

• Textiles, apparel and made-ups (all 945 textile and apparel tariff lines, eliminating the existing 5% MFN duty)
• Handicrafts
• Pharmaceuticals
• Engineering goods
• Chemicals
• Gems and jewellery
• Processed foods and agricultural products
• Leather and leather goods
• Plastics
• Marine products
• Automobiles and auto components
• Sports goods

Products excluded from preferential treatment include certain dairy products and a limited exclusion list. Always check the CEPA preferential tariff schedule on DGFT for your specific HS code before assuming eligibility.

How to check if your product is eligible:

1. Identify your product’s 8-digit HS code
2. Cross-check it against the India Oman CEPA preferential tariff schedule on the DGFT portal
3. Confirm the preferential duty rate applicable to your HS code
4. Verify that your product meets the Rules of Origin criteria for that HS code

If you are unsure about your HS code classification or tariff schedule lookup, contact RASP International for a free eligibility check.

How Do You Meet the Rules of Origin Under India Oman CEPA?

Rules of Origin determine whether your product legally qualifies as Indian-origin for the purpose of claiming CEPA benefits. This is the most critical compliance requirement. Getting this wrong means your buyer’s customs authority in Oman can reject the preferential rate and charge full MFN duty.

The Rules of Origin framework for India Oman CEPA was notified by India’s Ministry of Finance through Customs Notification No. 48/2026-Customs (N.T.), effective June 1 2026. You can also read a detailed explainer of these rules on Tax Guru if the official CBIC PDF is difficult to locate.

A product qualifies as Indian origin under two criteria:

Criterion 1: Wholly Obtained or Produced in India
This applies to goods entirely made from Indian inputs with no imported components. Examples include agricultural produce grown in India, minerals extracted in India, live animals born and raised in India and goods manufactured entirely from such materials.

Criterion 2: Product Specific Rules (PSR) with Sufficient Processing
Most manufactured goods fall under this category. The product must undergo sufficient manufacturing or processing in India such that it meets the Product Specific Rule defined for its HS code in Annexure-B of the Rules.

PSRs typically require one or both of the following:

• Change in Tariff Classification (CTC): The imported inputs used in manufacturing must result in a product with a different HS code at the 4-digit heading level or 6-digit sub-heading level. This proves substantial transformation happened in India.
• Value Addition Requirement (VA): A minimum percentage of the product’s value must be added in India. Two methods are permitted: the build-down method and the build-up method. Exporters can use whichever method best demonstrates compliance for their product.

Some products require both CTC and VA. Some require only one. The requirement is product-specific, defined at the HS code level.

Localized Example, Leather Footwear from Agra:
Agra-based leather footwear exporters are among the most eligible beneficiaries under this agreement. If an Agra manufacturer imports raw leather hides (HS Chapter 41) and processes them into finished footwear (HS Chapter 64), the change in tariff classification from Chapter 41 to Chapter 64 satisfies the CTC requirement. Additionally, if the value added in India exceeds the prescribed threshold, the product qualifies as Indian origin. This means an Agra footwear exporter shipping to an Oman distributor can now offer a zero-duty landed cost that a Chinese or Vietnamese competitor simply cannot match.

Localized Example, Textiles from Surat:
A Surat textile manufacturer using imported yarn (HS Chapter 54 or 55) to produce woven fabric or garments (HS Chapter 58 or 62) satisfies the CTC criterion. The manufacturing process transforms the input at the HS heading level, demonstrating sufficient Indian processing. If value addition rules also apply to the specific HS code, the manufacturer must calculate the domestic value content using either the build-down or build-up method.

If you use imported raw materials or components, you must calculate whether sufficient transformation has occurred to meet your product’s PSR. This is where many exporters make errors. A wrong declaration on the Certificate of Origin can lead to penalties, duty recovery and suspension of preferential treatment. Use RASP International’s export compliance support to get this right before your first shipment.

Certificate of Origin Under India Oman CEPA: What It Is and How to Get It

A Certificate of Origin (CoO) is the official document that certifies your goods meet the Rules of Origin under India Oman CEPA. Without a valid CoO, your Omani buyer cannot claim the preferential duty rate at customs. They will be charged the standard MFN duty instead.

Key facts about CoO under India Oman CEPA:

• Valid for 12 months from the date of issuance
• Can be issued electronically or in physical form
• CEPA incorporates a fully digitalized CoO framework enabling electronic exchange of origin certificates between Indian and Omani customs authorities
• DGFT Trade Notice 06/2026-27 notifies electronic filing and issuance of Preferential Certificate of Origin under India Oman CEPA from June 1 2026
• The Preferential Certificate of Origin circular from DGFT details the process for electronic issuance

Who can issue the Certificate of Origin in India:

• DGFT offices
• Export Promotion Councils (depending on product category)
• Chambers of Commerce authorized by DGFT

Where to apply:

• DGFT Common Digital Platform for Certificate of Origin, single-point access platform for CoO for all FTAs and PTAs
• Trade Connect ePlatform, referred to in DGFT notices for eCoO rollout

Documents typically required:

• IEC (Import Export Code)
• GST registration details
• Commercial invoice
• Packing list
• Shipping bill or export declaration
• Manufacturing process description or cost statement
• Declaration of origin by the exporter

Need help with your Certificate of Origin application? RASP International handles the full process.

Step-by-Step Compliance Checklist for Indian Exporters

Use this checklist before every shipment where you want to claim India Oman CEPA benefits.

Need help with any of these steps? Contact RASP International for export documentation support.

Why India Oman CEPA Matters for Your Business Right Now

Before CEPA, Indian exporters competed in Oman’s $28 billion import market on equal terms with every other country under MFN rates. Now, Indian exporters have a structural price advantage over competitors from countries without a CEPA with Oman.

Oman is also strategically positioned as a gateway to the wider GCC market. Its ports at Sohar, Duqm and Salalah offer alternative maritime routes bypassing the Strait of Hormuz, which has faced geopolitical disruptions. For Indian exporters, this means Oman is not just an end market. It is a regional distribution hub.

For MSMEs, artisans, textile manufacturers, pharmaceutical companies and food processors, this agreement directly improves price competitiveness in a market where India ranks as the third-largest supplier.

The Prime Minister’s office has also highlighted CEPA’s benefits for Indian exporters, MSMEs and professionals, reinforcing the government’s commitment to supporting exporters who use this agreement actively.

Common Mistakes to Avoid

Not checking Rules of Origin before shipment. Many exporters assume they qualify because their product is made in India. The Rules of Origin are specific to each HS code. Assuming without checking leads to non-compliant CoOs and rejected preferential claims at Oman customs.

Using the wrong issuing authority. Not all Chambers of Commerce are authorized to issue preferential CoOs for all product categories. Verify the correct authority for your product before applying.

Incomplete manufacturing documentation. If you use any imported inputs, you must be able to demonstrate sufficient transformation through records. Gaps in documentation lead to delayed or rejected CoO applications.

Not informing your buyer. The preferential benefit is claimed at Oman customs by your buyer. If your buyer does not know about the CEPA or does not submit the CoO correctly, the benefit is lost even if your paperwork is perfect.

Mismatched documents. Exporter name, buyer name, product description, quantity and HS code must match exactly across your invoice, packing list and Certificate of Origin. Any mismatch can result in customs rejection.

Waiting too long. The competitive advantage of being an early mover while competitors are still figuring out compliance is real. Exporters who get their CoO process in order now will close deals faster.

Frequently Asked Questions on India Oman CEPA

Is India Oman CEPA effective from June 1 2026?
Yes. India Oman CEPA entered into force on June 1 2026 after both countries completed their internal approval processes. Indian exporters can now check whether their products are eligible for preferential customs duty benefit in Oman.

What is the main benefit of India Oman CEPA for exporters?
The main benefit is preferential customs duty access in Oman for eligible Indian products. This reduces import duty impact for the Oman buyer and makes Indian products more competitive in the Oman market. CEPA provides duty-free access for 99.38% of India’s exports to Oman by value.

Do all Indian exports to Oman get duty-free benefit automatically?
No. The benefit is not automatic. It depends on HS code eligibility, Rules of Origin compliance and proper Certificate of Origin documentation. Exporters must check product-specific eligibility before promising duty benefits to buyers.

What is India Oman CEPA Certificate of Origin?
India Oman CEPA Certificate of Origin is a preferential origin document that certifies exported goods qualify as Indian-origin under the agreement. It is the document your Omani importer uses to claim preferential customs duty benefit at Oman customs.

Where can exporters apply for Certificate of Origin?
Exporters can apply through the DGFT Common Digital Platform for Certificate of Origin or the Trade Connect ePlatform. DGFT Trade Notice 06/2026-27 notifies electronic issuance of Preferential CoO under India Oman CEPA from June 1 2026.

Which sectors benefit from India Oman CEPA?
Key sectors include food and agriculture, textiles, marine products, engineering goods, pharmaceuticals, gems and jewellery, leather and footwear, plastics and auto components. Exporters should check product-specific eligibility before claiming benefit.

What documents are needed for CEPA Certificate of Origin?
Common documents include IEC, GST details, commercial invoice, packing list, shipping bill, bill of lading or airway bill, HS code details, product description and origin-related supporting documents. Requirements can vary by product.

What happens if I ship without a Certificate of Origin?
Without a valid CoO, your buyer cannot claim the preferential duty rate at Oman customs. They will be charged the full standard MFN duty. This makes your shipment more expensive for your buyer and reduces your competitiveness. Always secure the CoO before shipment.

How long is the Certificate of Origin valid?
The Certificate of Origin under India Oman CEPA is valid for 12 months from the date of issuance.

Can MSMEs and small exporters benefit from India Oman CEPA?
Yes. India Oman CEPA is particularly beneficial for MSMEs in sectors like textiles, handicrafts, processed foods, leather goods and marine products. The agreement was specifically structured to create opportunities for small businesses, artisans and manufacturers.

Get Certificate of Origin and Export Documentation Support

Navigating CEPA compliance, Rules of Origin calculations and Certificate of Origin applications requires accuracy. A wrong declaration can result in duty recovery, penalties and suspension of preferential treatment for your exports.

RASP International provides export documentation, DGFT compliance and market entry support for Indian exporters, importers, MSMEs and businesses entering global markets. Our team supports exporters with Certificate of Origin services, IEC registration, DGFT services, export documentation and export compliance support.

For India Oman CEPA Certificate of Origin support and export documentation, contact RASP International.

Written by

RASP International

RASP International is an ISO 9001:2015 certified EXIM consultancy based in Agra, India with a family legacy in international trade since 2005. We help Indian exporters and importers with DGFT licensing, export incentives, Certificate of Origin, customs clearance and end to end trade compliance.

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