The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on June 1, 2026, eliminating the baseline 5% import duty on over US$3.6 billion worth of Indian goods. For jewelry buyers and supply-chain professionals, this means immediate duty-free access for most gem and jewelry products into Oman, improving price competitiveness and opening new sourcing routes in the Gulf region.
Key tariff concessions
Oman will provide duty-free treatment on 98.08% of its tariff lines, covering about 99.38% of bilateral trade value. The agreement removes the prevailing 5% import duty on a substantial volume of Indian exports, effective immediately. For sensitive categories, India retains preferential duty rates of 4%, 4.5%, 9%, 24%, and 27%, reflecting a calibrated approach to trade liberalization.
Compliance and logistics signals
Importers claiming preferential duty benefits must demonstrate that goods genuinely originate from Oman, complying with India's Rules of Origin under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR). Proper supporting documentation must be provided to customs authorities. A Tariff Rate Quota (TRQ) system allows concessional duty rates up to a specified annual quantity, after which normal tariff rates apply.
What buyers should watch
For jewelry importers and distributors, the CEPA creates immediate opportunities in gems and jewelry exports from India to Oman. The agreement also covers trade in services, customs procedures, and trade facilitation measures, which can streamline cross-border logistics. Bilateral merchandise trade reached US$11.18 billion in FY 2025-26, up from US$10.61 billion the previous year, indicating growing economic ties.
China sourcing context
While the CEPA focuses on India-Oman trade, jewelry buyers sourcing from China should monitor how this agreement shifts regional competitiveness. Indian jewelry manufacturers gain a tariff advantage in Oman, potentially affecting pricing dynamics for sterling silver, gold-plated brass, and gemstone jewelry. Buyers may consider diversifying sourcing strategies to leverage duty-free access through Indian suppliers for Gulf market distribution.
Source: Read the original report | Published: June 01, 2026