The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, has issued Public Notice No. 39/2026-27 dated November 06, 2026, inviting fresh applications for allocation of Tariff Rate Quota (TRQ) under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) for Calendar Year (CY) 2027. The applications are invited for specified categories of motor vehicles, including passenger cars and motor vehicles for the transport of goods, during the period November 6, 2026, to November 21, 2026.
The Public Notice has been issued in exercise of the powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP), 2023, and in continuation of Public Notice No. 19/2026-27 dated July 9, 2026, with the objective of facilitating allocation of TRQs for eligible imports covered under the India–UK CETA.
TRQ Allocation for Passenger Motor Vehicles
As per the Public Notice, DGFT has specified the following TRQ quantities for eligible motor vehicles imported as Completely Built Units (CBUs), which have not been registered anywhere prior to importation:
- Passenger Vehicles with Engine Capacity Not Exceeding 1,500 cc: A TRQ of 6,000 units has been specified for motor vehicles with engine capacity not exceeding 1,500 cc.
- Passenger Vehicles with Higher Engine Capacity: An additional TRQ of 6,000 units has been prescribed for petrol-run vehicles with engine capacity exceeding 1,500 cc but not exceeding 3,000 cc, and diesel-run vehicles with engine capacity exceeding 1,500 cc but not exceeding 2,500 cc.
- Passenger Vehicles with Large Engine Capacity: A higher TRQ of 12,500 units has been specified for petrol-run vehicles with engine capacity exceeding 3,000 cc and diesel-run vehicles with engine capacity exceeding 2,500 cc.
These passenger vehicle categories cover specified tariff items under HSN Heading 8703, as detailed in the Public Notice.
TRQ for Motor Vehicles Used for Transport of Goods
In addition to passenger vehicles, DGFT has prescribed a TRQ of 2,750 units for motor vehicles intended for the transport of goods, excluding electric or hydrogen fuel vehicles, imported as Completely Built Units (CBUs).
The specified tariff classifications include 87041010, 87042100, 87042200, 87042300, 87043100 and 87043200.
Accordingly, the aggregate TRQ quantity specified across the four categories is 27,250 units for CY 2027, comprising 24,500 passenger motor vehicles and 2,750 goods transport vehicles.
Application Procedure and Regulatory Framework
DGFT has clarified that the import procedure for the specified products shall be governed by the arrangements and procedures prescribed under Annexure-VII of Appendix 2A of the Foreign Trade Policy, 2023, as notified through Public Notice No. 19/2026-27 dated July 9, 2026.
Eligible applicants seeking TRQ allocation under the India–UK CETA for CY 2027 are therefore required to follow the prescribed procedure and submit their applications within the notified application window.
Key Implications for Automobile Importers and Trade
The notification provides an opportunity for eligible importers to seek TRQ allocations for specified categories of motor vehicles covered under the India–UK CETA. The allocation framework is expected to facilitate structured imports of eligible UK-origin vehicles under the preferential trade arrangement, subject to the applicable conditions and procedures.
Importers and automobile industry stakeholders should particularly note the November 21, 2026 application deadline, the prescribed vehicle classifications, engine-capacity-based quota categories and the applicable procedural requirements.
Effect of the Public Notice: DGFT has formally invited fresh applications for TRQ allocation for CY 2027 under the India–UK CETA, covering specified passenger motor vehicles and goods transport vehicles, with an aggregate notified quota of 27,250 units.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/11/Scan_0194.pdf
