New Delhi (TIP): : The government has notified the procedure for importers to claim quota-based tariff concessions on vehicle imports from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA), clearing the way for the implementation of the landmark trade pact from July 15.
The notification issued by the Department of Revenue lays down the operational framework for importers seeking to avail reduced customs duties on eligible UK-manufactured vehicles under the Tariff Rate Quota (TRQ) mechanism envisaged in the agreement.
Under the procedure, importers will be required to obtain a TRQ certificate before importing eligible vehicles at concessional duty rates. The certificate will be issued through a designated online portal, with tariff benefits available only within the annual quota specified under the trade agreement. Imports beyond the prescribed quota will continue to attract the standard customs duty.
The move is aimed at ensuring a smooth rollout of the India-UK CETA while maintaining a balanced approach towards liberalising automobile imports and protecting the interests of the domestic automotive industry.
The India-UK trade agreement provides for phased reductions in import duties on a range of British goods, including automobiles. However, tariff concessions for vehicles will be subject to annual quantitative limits under the TRQ system, allowing only a fixed number of eligible vehicles to be imported at reduced duty rates each year.
Officials said the notification provides clarity on the documentation requirements, application process and eligibility criteria for importers wishing to claim the preferential tariff treatment once the agreement comes into force.
The government had earlier notified the rules of origin under the trade pact, which specify the conditions that products must satisfy to qualify for preferential tariff treatment. The rules are intended to ensure that only goods genuinely originating in the UK benefit from lower duties and to prevent misuse of the agreement through third-country routing.
Industry experts said the latest notification will help automobile importers prepare for the implementation of the trade pact and provide certainty regarding the operational aspects of concessional imports. Luxury vehicle manufacturers and premium automobile brands from the UK are expected to benefit from the reduced-duty regime, while the quota mechanism is expected to prevent a sudden surge in imports.
The India-UK Comprehensive Economic and Trade Agreement is expected to strengthen bilateral trade and investment by lowering tariffs, improving market access and enhancing economic cooperation across sectors such as automobiles, engineering goods, textiles, food products and services.
The agreement is scheduled to come into effect on July 15, 2026, marking a significant milestone in India-UK economic relations.
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