The Ministry of Finance, Department of Revenue, has issued Notification No. 29/2026-Customs dated 14 July 2026 to give effect to the first tranche of tariff concessions under the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA). The notification prescribes preferential customs duty treatment for specified goods imported into India from the United Kingdom and comes into force with effect from 15 July 2026.
The notification has been issued in exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962, with the Central Government granting exemptions in the public interest to specified goods covered under the First Schedule to the Customs Tariff Act, 1975. The concessions are structured through three schedules—Table I, Table II and Table III—covering different categories of goods and applicable preferential duty treatment.
Under Table I, specified goods originating in the United Kingdom are eligible for concessional rates of Basic Customs Duty (BCD) and, where applicable, reduced rates of Agriculture Infrastructure and Development Cess (AIDC) and Health Cess, as prescribed against the respective tariff lines. The extensive schedule covers a wide range of tariff items, with several products receiving zero or reduced rates under the first tranche of concessions.
Table II provides separate concessional treatment for specified products, including certain tariff lines in the alcoholic beverages and related categories, by prescribing applicable rates of BCD and AIDC subject to the product descriptions and conditions set out in the notification.
The notification also establishes a Tariff Rate Quota (TRQ) mechanism under Table III for specified motor vehicles imported from the United Kingdom. The TRQ framework provides distinct in-quota and out-of-quota rates of BCD and AIDC, thereby allowing defined quantities of eligible imports to receive the prescribed preferential tariff treatment.
For specified completely built motor vehicles covered under Table III, the notification prescribes annual TRQ quantities and differential tariff treatment based on vehicle category and engine capacity. For certain passenger vehicles imported as completely built units, the notification provides defined in-quota duty rates and specified annual quota quantities, while separate out-of-quota rates apply once the annual TRQ quantity is exceeded. It also provides a separate TRQ arrangement for specified motor vehicles for the transport of goods.
The TRQ benefit will be administered through the Directorate General of Foreign Trade (DGFT). Under the conditions specified in the Annexure, the TRQ is to be allotted to eligible importers by DGFT in accordance with the relevant procedure under the Handbook of Procedures, 2023. The TRQ authorisation will contain prescribed details, including the importer’s name and address, Importer-Exporter Code, customs notification number, applicable tariff item, quantity and validity period.
The notification further provides for electronic administration of the TRQ framework. The TRQ authorisation will be issued electronically by DGFT and transmitted to the Indian Customs EDI System (ICES), and imports against the allotted quota will be permitted only upon electronic debit in the ICES system.
The preferential tariff treatment under the notification is available only for goods imported into India from the United Kingdom. An importer claiming the benefit must establish, to the satisfaction of the jurisdictional Deputy Commissioner or Assistant Commissioner of Customs, that the goods are of UK origin, in accordance with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 and the relevant rules notified by the Central Government.
The notification therefore operationalises the first phase of India’s tariff commitments under the India-UK CETA by providing a detailed product-wise framework for preferential customs duties, cess concessions and TRQ-based market access for specified products. The measure takes effect from 15 July 2026.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/India-UK-CETA-Customs-Notification.pdf
