India–Oman CEPA Comes into Effect: Tariff Rate Quota (TRQ) Mechanism to Boost Bilateral Trade
The Directorate General of Foreign Trade (DGFT) has notified the procedure for the allocation of Tariff Rate Quotas (TRQ) under the India–Oman Comprehensive Economic Partnership Agreement (CEPA), which came into effect on 1 June 2026. Under the agreement, selected products imported within the prescribed quota will be eligible for concessional or zero customs duty. To avail these benefits, importers must submit a Certificate of Origin. This initiative is expected to strengthen bilateral trade, investment, economic cooperation, and trade facilitation between India and Oman.
The Directorate General of Foreign Trade (DGFT) has notified the procedure for the allocation of Tariff Rate Quotas (TRQ) under the India–Oman Comprehensive Economic Partnership Agreement (CEPA). The agreement came into force on 1 June 2026 and aims to promote bilateral trade, investment, and economic cooperation between the two countries.
What is the India–Oman CEPA?
The Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive Free Trade Agreement (FTA) under which both countries agree to reduce or eliminate customs duties on selected goods and services, encourage investment, facilitate trade, and strengthen economic cooperation. Its objective is to make bilateral trade more competitive, balanced, and mutually beneficial.
What is a Tariff Rate Quota (TRQ)?
A Tariff Rate Quota (TRQ) is a trade mechanism under which a specified quantity of a product can be imported at a reduced or zero customs duty, while imports exceeding the prescribed quota are subject to the normal customs duty. This mechanism helps maintain a balance between trade liberalization and the protection of domestic industries.
Major Products Covered Under CEPA
Under the India–Oman CEPA, products eligible for concessional customs duty under the TRQ mechanism include dates, marble and travertine, copper welding wire, aluminium ingots, billets and wire, ethylene glycol, Linear Alkyl Benzene (LAB), Low-Density Polyethylene (LDPE), and other selected petrochemical products. This is expected to improve the availability of raw materials for Indian industries while reducing production costs.
Role of DGFT and Certificate of Origin
Under this arrangement, importers seeking concessional customs duty must submit a Certificate of Origin issued by the competent authority in Oman. The certificate verifies that the goods have genuinely originated in Oman and comply with the rules prescribed under the CEPA. In India, the Directorate General of Foreign Trade (DGFT) is responsible for implementing the scheme, allocating quotas, and administering the country's Foreign Trade Policy.
UPSC Relevance
This topic is related to Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs), Foreign Trade Policy, Customs Duties, DGFT, Tariff and Non-Tariff Measures, Certificate of Origin, WTO Trade Principles, and India's Trade Diplomacy. In the UPSC Preliminary Examination, questions may be asked on CEPA, FTA, TRQ, DGFT, and Certificate of Origin. In the UPSC Mains Examination (GS Paper III), the topic is analytically important in the context of export promotion, trade liberalization, economic diplomacy, global value chains, and India's bilateral trade agreements.
