If you sell to buyers in the UK, the India–UK Comprehensive Economic and Trade Agreement (CETA) is the biggest change to your price conversation in years. For most Indian goods, UK import duty can now be zero. The catch is that nothing happens on its own. Your buyer has to claim the lower rate, your goods have to qualify, and someone has to be able to prove it.
This note covers where the agreement stands, how the saving reaches your buyer, and what to check before your next quote. It sticks to what the official texts say and links to each of them at the end.
Where the agreement stands
The UK government's collection page for the deal puts it in one line:
"The UK signed a trade deal with India on 24 July 2025 which entered into force on 15 July 2026."
GOV.UK, UK–India Trade Deal collection
India's side says the same. A Press Information Bureau release from Bengaluru, dated 15 July 2026, reports that the CETA "entered into force today", and DGFT's Bengaluru office flagged off an export consignment under the agreement that day. So this is not a future plan. Shipments arriving in the UK now can be claimed under it, provided the rules are met.
The full legal text is published on GOV.UK chapter by chapter. Two parts matter most to an exporter of goods: Chapter 3 on rules of origin, and the tariff schedules that set the duty on each product.
What the duty cut looks like
The headline numbers are large. The UK government's announcement puts it this way: "Starting 15 July, 99% of Indian goods entering the UK and 90% of UK goods entering India will either be duty free or reduced in tariffs." India's Ministry of Commerce, announcing the start date on 17 June 2026, listed the UK tariffs being removed for Indian exporters: up to 12% on textiles and clothing, up to 16% on leather and footwear, up to 18% on engineering goods and auto components, up to 21.5% on marine products, up to 70% on processed food, and up to 8% on chemicals and pharmaceutical products, all to be "reduced to zero".
Those are ceilings across whole sectors, not the rate for your product. Ninety-nine per cent is not one hundred, and a few lines are treated differently. Steel exporters in particular should read the government's 15 July backgrounder, which describes the separate UK steel measures that took effect on 1 July 2026. The only reliable answer for a given product is the UK tariff entry for its commodity code, which we come to below.
Zero duty is claimed, not given
This is the point most often missed. The lower rate is not applied to Indian goods automatically. The UK importer claims it on their customs declaration, and the claim has to rest on a proof of origin. Article 3.15 of the agreement lists what a UK importer can rely on:
- an origin declaration completed by the exporter or producer;
- a certificate of origin issued by an issuing authority in India; or
- the importer's knowledge that the good is originating.
The first two come from your side. The third sounds as though it leaves you out, but Article 3.16 says a claim on importer's knowledge is made "subject to the importer having documentation demonstrating that the good is originating", and that this documentation may have been provided by the exporter or producer. In practice, a careful buyer will ask you for the facts either way.
Behind every one of these routes sits the same question: does the product count as originating in India under Chapter 3? A product can be made in your factory and still fail that test, for example if most of its value comes from imported materials that are not transformed enough. Our plain-English guide to the rules of origin covers how that test works, and the paperwork guide covers the documents.
Small consignments
Article 3.18 lets the UK grant preference without a proof of origin where the customs value of the importation does not exceed £1,000, as long as the goods have been declared as meeting the origin rules and UK customs has no reasonable doubts. The same article says the importer is responsible for the correctness of that declaration, and it does not apply to a series of imports split up to get around the rules. It removes paperwork for low-value parcels. It does not make non-qualifying goods qualify.
The old scheme still runs until July 2028
Before the agreement, many Indian goods entered the UK at reduced rates under the UK's Developing Countries Trading Scheme (DCTS). That has not switched off overnight. The UK government's page on India's graduation from DCTS gives three dates: the FTA entered into force on 15 July 2026, the transition period ends on 14 July 2028, and India leaves DCTS on 15 July 2028.
Until then a buyer can use either scheme, but not mix them. The same page is direct about it:
"DCTS and FTA proofs of origin are not interchangeable. A DCTS origin declaration or Form A cannot be used to claim preferences under the UK-India FTA, and vice versa."
GOV.UK, Country graduation from the DCTS: India
If an existing buyer already claims DCTS rates on your goods, agree with them which scheme each shipment will use, and make sure the document you send matches it.
How to see the rate for your product
The UK publishes its tariff online, and it shows both the normal rate and any India preference for each commodity code.
- Get the code right. Your Indian shipping bill uses an 8-digit ITC-HS code. The UK uses a longer commodity code. The first six digits of both come from the international Harmonized System, so they are the common ground. GOV.UK's guide to finding commodity codes is the place to confirm the UK code with your buyer or their customs agent.
- Look it up on the UK Trade Tariff. Search for the code on the Trade Tariff service and set the country of origin to India. Under import measures you will see the third-country duty, the rate everyone pays, and, where one exists, a "Tariff preference" line for India.
- Open the Origin tab on the same page. It names the agreement and lists the proof-of-origin codes your buyer's declaration will need: 9001 for an origin declaration, N954 for a certificate of origin and U112 for importer's knowledge.
- Find your product-specific rule in Annex 3A of the agreement. Note that Annex 3A is written in the 2022 edition of the Harmonized System, so if your code has moved since then, check the older code as well.
A small garment unit sells a shipment worth £10,000 to a UK retailer. Suppose the Trade Tariff showed a third-country duty of 10% on the product and a 0% India preference. These numbers are invented for the example. If the goods qualify and the buyer claims the preference, the buyer saves £1,000 in duty on that shipment. If the goods do not qualify, or the paperwork does not hold up, the buyer pays the £1,000 and may come back to you about it.
What to do before your next UK quote
- Confirm the commodity code for each product with your buyer, and look up the preference on the Trade Tariff.
- Read the product-specific rule for that code in Annex 3A, and list every material you use with its supplier, country and cost.
- For each imported or unknown-origin material, ask whether the rule still lets the product qualify. If you cannot show where a material comes from, the agreement treats it as non-originating.
- Ask the buyer which proof they want: your origin declaration, a certificate of origin from DGFT's Trade Connect platform, or their own knowledge backed by your documents.
- Set up a file for each product and shipment. Under Article 3.24, exporters and producers keep origin records for five years from the date the declaration is completed or the certificate is issued.
None of this is difficult once it is written down for a product. The work is in doing it carefully for every product, keeping it current when a supplier changes, and being able to show your reasoning if UK customs asks two years later.
We are building Quoreca Origin for this job. You describe a product and its materials once; it checks the product against the published rule, explains the result in plain English, and prepares the origin paperwork with a record you can keep. It is not open yet. Write to hello@quoreca.com for early access.
This article is general information about the India–UK CETA as published by the UK and Indian governments, current at the date above. It is not legal advice. Rules, rates and procedures vary by product and can change; check the official sources for your product, and take professional advice for a specific claim.
Sources
- GOV.UK, UK–India Trade Deal (collection), last updated 15 July 2026
- GOV.UK, Historic UK-India Free Trade Agreement is now in effect, 17 July 2026
- Press Information Bureau, India–UK CETA comes into force; export consignment flagged off at Bengaluru, 15 July 2026
- Press Information Bureau, CETA and Agreement on Social Security Contributions set to enter into force on 15th July 2026, 17 June 2026
- Press Information Bureau, India–UK CETA comes into effect (backgrounder), 15 July 2026
- GOV.UK, UK–India CETA Chapter 3: Rules of Origin (PDF), Articles 3.15, 3.16, 3.18 and 3.24
- GOV.UK, UK–India CETA Annex 3A: Product Specific Rules of Origin (PDF)
- GOV.UK, Country graduation from the Developing Countries Trading Scheme: India, 4 September 2026
- UK Trade Tariff (HMRC), India Free Trade Agreement (enters into force on 15 July 2026), 13 July 2026
- UK Trade Tariff (HMRC), Look up commodity codes, duty and VAT rates
- GOV.UK, Finding commodity codes for imports or exports
- DGFT, Trade Notices (Trade Notice No. 11/2026-27, 13 July 2026, on certificates of origin under the India–UK CETA)