The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 19/2026-27 dated July 09, 2026, amending Para 2.92 and Appendix-2A of the Handbook of Procedures, 2023 to incorporate Tariff Rate Quotas (TRQs) under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA).
The amendments provide annual import TRQs for specified categories of vehicles originating in the United Kingdom, including ICE passenger cars in Completely Built Unit (CBU) form, electric/hybrid/hydrogen passenger cars, and ICE goods vehicles. The prescribed framework sets out year-wise quota quantities and concessional in-quota customs duty rates for eligible imports.
For ICE passenger cars, the TRQ framework covers multiple engine-capacity categories, with the total annual quota beginning at 20,000 vehicles in Year 1, rising in subsequent years before gradually reducing to 15,000 vehicles from Year 15 onwards. Separate tariff concessions and quota sizes have been specified for vehicles across different engine-capacity segments.
The Public Notice also introduces TRQs for electric, hybrid and hydrogen passenger cars, with quota access beginning from Year 6 for specified CIF value categories. For ICE goods vehicles, a separate annual quota has been prescribed, starting at 2,500 vehicles in Year 1 and increasing to 3,500 vehicles from Year 5 onwards, alongside specified in-quota and out-of-quota duty rates.
All TRQ applications are required to be submitted online through the DGFT website under the Import Management System – Tariff Rate Quota module. Eligibility is restricted to Original Equipment Manufacturers (OEMs) and dealers/channel partners duly authorised by OEMs of vehicles originating in the UK. Applicants must also furnish a pre-purchase agreement issued by the concerned UK OEM, specifying the quantity proposed to be supplied during the relevant TRQ year.
At the time of customs clearance, importers must produce a valid Certificate of Origin issued by the competent authorities in the United Kingdom. The TRQ year will follow the calendar year from 1 January to 31 December, while each TRQ certificate will be valid for a maximum period of 12 months or until the end of the calendar year, whichever is earlier.
Where applications exceed the available TRQ quantity, allocation will be made among eligible applicants in proportion to the quantity requested on the basis of the pre-purchase agreement. DGFT will monitor cumulative quantities, and no further TRQ certificates will be issued once the notified quota limit is reached. The allocation mechanism may be reviewed after two years, i.e. from calendar year 2028, to ensure effective utilisation of the TRQs.
The notified procedure will be inserted as Annexure VI to Appendix 2A of the Handbook of Procedures, 2023. The Public Notice formally establishes the procedure for allocation and administration of TRQs under the India–UK CETA.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/PN-no.-19-English.pdf
