Key Takeaways
- The UK-India CETA enters into force on 15 July 2026 — India’s average tariff on UK goods falls from roughly 15% to 3%, with Scotch whisky duties dropping from 150% to 75% on day one
- UK exporters must register with HMRC before making their first origin declaration — registration is free but mandatory, and you cannot backdate declarations
- Preference is not automatic — Indian importers claim the reduced rate using your Annex 3B origin declaration; without it, they pay full MFN duty
- UK importers from India must secure compliant supplier declarations — your Indian supplier must provide an Annex 3B declaration with their Importer Exporter Code (IEC) number
- 99% of UK tariff lines are now duty-free for Indian goods — textiles, footwear, food and pharmaceuticals benefit most, but you must claim the preference at import
What Changes on 15 July 2026
On 17 June 2026, the UK and Indian governments confirmed that the Comprehensive Economic and Trade Agreement (CETA) will enter into force on 15 July 2026. After years of negotiation, this deal fundamentally reshapes trade between the two countries — but the tariff savings do not apply automatically.
The headline numbers are significant. India’s average tariff on UK goods falls from approximately 15% to 3%. For specific sectors, the reductions are even more dramatic:
| Sector | Pre-CETA duty | Day-one duty | Final duty (timeline) |
|---|---|---|---|
| Scotch whisky | 150% | 75% | 40% (over 10 years) |
| Cars | 100%+ | 10% (within quota) | N/A |
| Cosmetics | Up to 22% | 0-10% | Varies by product |
| Pharmaceuticals | 10-15% | 0% | Immediate |
On the UK side, 99% of tariff lines are liberalised for Indian goods. This means cheaper access to Indian textiles, footwear, food products, and pharmaceutical ingredients for UK businesses. India, in turn, removes or reduces tariffs on 90% of its tariff lines for UK goods.
But here’s the critical point that most coverage skips: none of these savings apply automatically. The preference has to be claimed — and who claims it, and how, depends on which direction you’re trading.
For UK Exporters: Your Job Is to Enable Your Customer’s Claim
If you export goods to India, the preference is claimed by your Indian customer when they import your goods. They cannot claim it without a valid origin declaration from you. Your role is to self-certify the origin of your goods correctly — and to do that, you must register with HMRC before you make your first origin declaration.
Step 1: Register with HMRC
Registration is free and done once, but it must happen before your first shipment, not after. Without your registration, you cannot issue a valid origin declaration, and your customer pays full Most Favoured Nation (MFN) duty instead of the preferential rate — making your goods less competitive in the Indian market.
You’ll need your EORI number to register. Search GOV.UK for “Register to complete origin declarations under the UK–India Free Trade Agreement” to find the registration portal.
Step 2: Complete an Annex 3B Origin Declaration
For each consignment, you must complete an origin declaration using the prescribed Annex 3B template. This is not a certificate issued by a chamber of commerce — it’s a self-declaration that you, the exporter, complete and send to both your customer and the customs authority of India.
The declaration must be sent from your registered email address — HMRC links your registration to a specific email, and declarations from other addresses may be rejected. Keep all origin records for at least five years — HMRC can request them or verify your claims by visiting your premises.
Step 3: Understand the Rules of Origin
Not every product you export qualifies for preferential treatment. The CETA includes specific rules of origin that determine whether your goods are considered “originating” in the UK. Broadly speaking, goods qualify if they are:
- Wholly obtained in the UK (e.g., grown, mined, or manufactured entirely from UK materials)
- Sufficiently worked or processed in the UK — meaning non-originating materials have undergone a specified change in tariff classification or value-added threshold
For many manufactured goods, the rule requires that non-originating materials do not exceed a certain percentage of the ex-works price (often 40-50%, depending on the product). If you use significant imported components in your manufacturing, you need to check the product-specific rules in the CETA text before claiming origin.
For UK Importers: You Claim the Preference, So the Responsibility Is Yours
When you source goods from India, you are the one who claims the preferential rate at import. The process is straightforward in principle but requires preparation.
Step 1: Review Your Commodity Codes
Check your commodity codes against the UK–India tariff schedule to confirm whether your goods qualify for preferential treatment. The UK government has published a comprehensive tariff schedule showing the CETA rate for each commodity code — search GOV.UK for “UK-India CETA tariff schedule”.
Step 2: Secure Compliant Supplier Paperwork
Your Indian supplier must provide you with an Annex 3B origin declaration before you can claim the preference. This declaration must include their Importer Exporter Code (IEC) number — a unique identifier issued by Indian customs. If your supplier cannot or will not provide a compliant declaration, you’ll pay standard MFN rates regardless of the deal.
Confirm your suppliers are ready well before 15 July. Many Indian exporters are still preparing their systems for the new requirements, and you don’t want to be caught without paperwork when your goods arrive at a UK port.
Step 3: Claim the Preference on Your Customs Declaration
When you make your import declaration through the Customs Declaration Service (CDS), you’ll need to:
- Enter the correct commodity code
- Claim the preferential duty rate using the appropriate preference code (search the CDS tariff for the correct code for UK-India CETA imports)
- Retain your supplier’s Annex 3B declaration for at least four years (HMRC’s standard record-keeping requirement for customs documents)
If you currently import from India under the Developing Countries Trading Scheme (DCTS), review which arrangement now gives you the better outcome for each product. In some cases, DCTS may still offer a better rate than CETA — particularly for goods where India already had preferential access.
Which Sectors Benefit Most
The CETA’s impact varies significantly by sector. Here’s where the biggest changes land:
Scotch Whisky
Scotch whisky is one of the headline winners. Duties fall from 150% to 75% on day one, then taper to 40% over a decade. This is a transformational change for an industry that has long faced prohibitive tariffs in the Indian market. The UK government estimates this could add hundreds of millions of pounds in annual exports once the full reduction is realised.
Automotive
Car tariffs fall from over 100% to 10% within a quota. The quota mechanism means that only a certain volume of UK-manufactured cars can enter India at the preferential rate each year — but for manufacturers with strong Indian demand, this is still a step-change in market access.
Textiles and Apparel
Indian textiles and footwear gain significant access to the UK market under the reciprocal liberalisation. For UK fashion retailers and brands sourcing from India, this means lower landed costs — but you must ensure your suppliers provide compliant origin declarations.
Pharmaceuticals and Chemicals
Both sides have removed most tariffs on pharmaceutical products and chemical inputs. For UK life sciences companies importing active pharmaceutical ingredients (APIs) from India, this reduces costs and simplifies supply chains.
Common Pitfalls and What Happens If You Get It Wrong
Pitfall 1: Shipping Before Registration
If you export to India and ship before registering with HMRC, you cannot issue a valid origin declaration. Your customer pays full MFN duty, and you cannot retroactively fix this. The shipment is done — the duty is paid, and there’s no refund mechanism.
Pitfall 2: Using the Wrong Template
The Annex 3B template is prescribed in the CETA text. If you use a different format — for example, a generic certificate of origin — Indian customs may reject it. Download the official template from GOV.UK and use it exactly as specified.
Pitfall 3: Assuming All Products Qualify
Not every product qualifies for preferential treatment. If your goods don’t meet the rules of origin, claiming the preference is a false declaration — and HMRC can fine you and demand back-payments for up to three years.
Pitfall 4: Missing the IEC Number
For UK importers, an Annex 3B declaration without the supplier’s IEC number is invalid. You’ll pay the MFN rate, and there’s no easy correction once the declaration is submitted.
Checklist: What to Do Before 15 July 2026
For exporters:
- Register with HMRC to make origin declarations (search GOV.UK for “UK-India FTA origin declaration registration”)
- Download the Annex 3B template and review the completion guidance
- Check your product’s rules of origin in the CETA text
- Brief your sales and logistics teams on the new requirements
- Contact existing Indian customers to confirm they understand how to claim the preference
For importers:
- Review your commodity codes against the UK-India CETA tariff schedule
- Contact Indian suppliers to confirm they can provide Annex 3B declarations with IEC numbers
- Update your customs declaration procedures to include the correct preference codes
- Compare CETA rates against DCTS rates for your product lines
- Train your customs broker or internal team on the new preference claims
Frequently Asked Questions
When does the UK-India CETA take effect?
The agreement enters into force on 15 July 2026. Preferences can only be claimed for goods imported or exported on or after this date.
Do I need a certificate of origin from a chamber of commerce?
No. The UK-India CETA uses self-certification. UK exporters complete an Annex 3B origin declaration themselves — no chamber of commerce involvement is required. However, you must register with HMRC before making your first declaration.
What if my Indian supplier can’t provide an Annex 3B declaration?
You cannot claim the preferential rate without a compliant declaration. You’ll pay the standard MFN duty rate. Consider whether alternative suppliers can provide compliant paperwork, or factor the MFN rate into your pricing.
Can I claim preference retroactively if I missed the paperwork?
No. Preference claims must be made at the time of import (for UK importers) or export (for Indian importers using your declaration). There is no retroactive mechanism under the CETA.
How long do I need to keep origin records?
UK exporters must retain origin declaration records for at least five years. UK importers must retain supplier declarations for at least four years (the standard HMRC customs record-keeping period).
Does the CETA replace the Developing Countries Trading Scheme (DCTS) for India?
No. India remains eligible for DCTS, but you cannot claim both preferences for the same goods. Compare the CETA rate and the DCTS rate for each commodity code and claim whichever is more favourable.
The UK-India CETA represents the most significant expansion of UK market access in a decade. But like all trade agreements, the benefits flow to businesses that understand the rules and act on them early. Register now if you export. Secure your supplier paperwork if you import. And don’t let a paperwork gap turn a 15% tariff saving into a 150% mistake.