What is the India–Korea CEPA?

A free trade agreement between India and South Korea in force since 2010 that reduces or eliminates customs duty on about 90% of goods traded between the two countries, subject to rules of origin and a preferential Certificate of Origin.

How much duty do I save under CEPA?

Typically the Korean MFN rate of 8–13% drops to 0–5% for Indian goods, and Indian BCD of 10–20% drops to 0–10% for Korean goods. VAT (Korea 10%) and IGST (India 18%, or 5% on some toiletries) still apply.

Is a Certificate of Origin mandatory for CEPA rates?

Yes. Without a valid preferential CoO (Form KIN for India→Korea; Korea Customs/KCCI CoO for Korea→India) customs applies normal rates.

Which agencies issue the CEPA CoO in India?

Export Inspection Council/Agencies, MPEDA, Textile Committee, Spices Board, Coir Board, Tobacco Board and others via the DGFT e-CoO portal, depending on the product.

Does CEPA apply to small parcels and samples?

Yes, if a CoO accompanies the shipment. For low-value parcels the CoO fee may exceed the saving — we advise case by case.

Does the 35% value-content rule apply to all products?

Most manufactured goods use the tariff-shift + 35% regional value content test; wholly obtained agricultural and mineral products qualify automatically. Some product-specific rules exist.

Can goods routed via Singapore or Dubai still claim CEPA?

Only if they remain under customs control in transit (through airway bill, no processing). Direct routing India ↔ Incheon, as we use, avoids the problem.

Does CEPA cover services?

Yes — IT, engineering, professional and audiovisual services, plus movement of professionals; this article focuses on goods.

Does ShipKorea file the CEPA claim for me?

Yes. Under DDP we classify the HS code, verify the CoO and file the preferential claim with Korean or Indian customs so the reduced duty is reflected in your all-inclusive price.

Is CEPA being renegotiated?

India and Korea have been upgrading CEPA since 2016 to widen coverage and simplify rules of origin; current benefits remain in force and any changes will be reflected in our quotes.

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India–Korea CEPA Explained (2026): How Exporters & Importers Cut Duty to 0–5%

The India–Korea Comprehensive Economic Partnership Agreement can cut duty on your shipment from 8–13% to 0–5% — but only if the paperwork is right. Here's how it works in both directions, with examples.

21 September 2026 8 min read

By ShipKorea.in Editorial Team·Reviewed by India–Korea logistics specialists

India–Korea CEPA Explained (2026): How Exporters & Importers Cut Duty to 0–5%

Key takeaways

CEPA covers ~90% of tariff lines; most Indian exports enter Korea at 0–5% with a Form KIN Certificate of Origin.
Rules of origin: goods must be wholly obtained or meet a 35% regional value content + tariff-shift test.
Korean-origin goods entering India also get reduced BCD with a KCCI/Korea Customs CoO.
ShipKorea checks CEPA eligibility per HS code and files it under DDP so the saving lands in your price.

Quick answer

CEPA is India and South Korea's free trade agreement (in force 1 January 2010). With a valid preferential Certificate of Origin, most goods traded between the two countries face 0–5% customs duty instead of the standard 8–20%. VAT/IGST still apply. We handle eligibility checks and filing as part of every DDP shipment.

What CEPA covers

Around 90% of tariff lines have been reduced or eliminated in phases through 2020s. Indian winners: textiles and garments, leather, handicrafts, spices, tea, rice (within TRQ), marine products, pharma, engineering goods, IT services. Korean winners into India: auto parts, machinery, electronics, steel, chemicals, cosmetics (partial).

Rules of origin — the test your product must pass

Wholly obtained (grown, mined, produced entirely in India) OR substantially transformed: a change in tariff classification at the 6-digit HS level PLUS at least 35% regional value content. Simple packing, labelling or assembly does not qualify. Keep supplier invoices and a costing sheet — customs can ask for them.

Getting the Certificate of Origin (India → Korea)

Apply on the DGFT CoO e-platform (coo.dgft.gov.in) selecting the India–Korea CEPA; authorised agencies include the Export Inspection Council/EIA, MPEDA, Textile Committee, Spices Board and Coir Board. Upload invoice, packing list and origin declaration; certificates issue in 1–3 days and cost ₹200–₹800. One certificate per shipment.

Getting the Certificate of Origin (Korea → India)

Your Korean supplier applies to Korea Customs Service or the Korea Chamber of Commerce & Industry (KCCI) for a preferential CoO under the Korea–India CEPA. Most exporters do this routinely — just ask. Present it at Indian customs (we do this under DDP) to claim the reduced BCD.

Worked examples

Indian spices to Seoul, 25 kg, CIF ₩1.2M: MFN duty 8% ≈ ₩96,000 vs CEPA 0% → saving ₩96,000 (~₹6,000). Korean skincare to Mumbai, ₹50,000 CIF: MFN BCD 20% ₹10,000 vs CEPA 10% ₹5,000 → saving ₹5,000 plus lower IGST base. Both savings are built into our DDP quotes when the CoO is available.

Common mistakes that void the benefit

CoO issued after import clearance (must be available at filing); HS code on the CoO not matching the invoice; goods transhipped through a third country without a through-bill; missing origin criteria code; using a non-preferential CoO (Chamber of Commerce) instead of the CEPA form. Send us the draft documents before dispatch and we'll check them free.

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