Agreement comes into force on July 15, opening duty-free access for 99 per cent of Indian exports to the UK and laying down rules for preferential tariff benefits….reports Asian Lite News Desk
The Centre has notified the operational rules for implementing the India-UK Comprehensive Economic and Trade Agreement (CETA), paving the way for the landmark trade pact to come into force from July 15 and granting duty-free access to 99 per cent of India’s exports to the United Kingdom.
The rules, issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Finance Ministry, lay down the framework for determining the origin of goods eligible for preferential tariff treatment under the agreement. They also specify compliance requirements for exporters and importers seeking to avail of the trade benefits.
According to the notification, the rules, titled the Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026, will come into effect from July 15, coinciding with the implementation of the trade agreement.
Under the notified framework, a product will qualify as originating in India or the UK if it is wholly obtained in either country, produced entirely using originating materials, or manufactured using non-originating inputs while satisfying the product-specific rules of origin prescribed under the agreement.
The rules also introduce a cumulative origin provision, allowing materials originating in either India or the UK to be treated as originating in the other country when used in further manufacturing. The provision is expected to facilitate greater integration of supply chains and encourage cross-border production between the two partners.
At the same time, the notification clarifies that minor processing activities—including simple repackaging, relabelling, washing, sorting, polishing, simple assembly and similar operations—will not be sufficient to confer originating status on a product or make it eligible for preferential tariff treatment.
The CBIC has also empowered customs authorities to verify claims relating to the origin of imported goods and deny tariff concessions if products fail to satisfy the prescribed conditions under the agreement.
In addition, the rules provide flexibility for importers who do not claim preferential tariff benefits at the time of import, allowing them to seek the benefits later in accordance with the prescribed procedures.
The India-UK CETA is expected to significantly boost bilateral trade by lowering market access barriers, enhancing investment flows and strengthening cooperation across sectors including manufacturing, services, technology and innovation.
Commerce and Industry Minister Piyush Goyal has described the agreement as a landmark milestone in India-UK economic relations, saying it will deepen collaboration in trade, investment and innovation while creating new opportunities for businesses and professionals in both countries.
During a recent visit to London, Goyal urged Indian businesses to strengthen partnerships with their British counterparts and leverage the opportunities created by the agreement to drive long-term business growth.
Addressing the India-UK: Partners in Progress Business Plenary, he said the trade pact would help expand bilateral commerce, encourage technology partnerships, build resilient supply chains and unlock fresh investment opportunities for both economies.
The implementation of the agreement marks a major step in India’s trade engagement with one of its key strategic partners and is expected to provide a significant boost to Indian exporters across sectors by improving market access and reducing tariff barriers in the UK.
