India-UK trade pact origin rules notified ahead of July 15 rollout

New Delhi, Jul 4, 2026

The finance ministry has notified rules for determining the origin of goods under the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), clearing the way for the trade pact to come into force on July 15.

The rules, issued by the Central Board of Indirect Taxes and Customs (CBIC), establish the framework for determining whether goods qualify for preferential tariff treatment under the agreement and lay down compliance requirements for exporters and importers.

"These rules may be called the Customs Tariff (Determination of Origin of Goods under Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026. They shall come into force on the 15th July, 2026," the notification said.

Rules define eligible goods

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 from originating materials, or manufactured using non-originating inputs while meeting the product-specific origin requirements prescribed under the agreement.

A certificate of origin remains a key document for claiming duty concessions under the pact. The rules provide that authorised entities in both countries will be permitted to issue origin certificates and declarations required for preferential tariff treatment.

The framework also allows cumulative treatment of originating materials, enabling inputs originating in one partner country to be treated as originating in the other when used in further production. This provision is expected to support integrated supply chains between India and the UK.

Safeguards against misuse

The rules include provisions aimed at preventing products from third countries from accessing tariff benefits available under the agreement.

Goods moving through non-signatory countries will retain originating status only if they remain under customs supervision and are not subjected to further production or processing, except for activities necessary for transportation, storage, labelling, preservation or logistics.

The notification also specifies that activities such as simple repackaging, relabelling, washing, sorting, polishing, simple assembly and other minor operations will not be sufficient to confer originating status on a product.

Customs authorities will have powers to verify origin claims and deny preferential treatment where products fail to meet the prescribed conditions.

Compliance and documentation requirements

Origin declarations and certificates issued under the agreement will generally remain valid for 12 months from the date of issuance or completion. The documents must contain sufficient details to identify the goods and be submitted in accordance with customs requirements.

The rules also provide flexibility for importers who fail to claim tariff benefits at the time of import. Such importers may seek refunds of excess duties paid, provided the goods were eligible for preferential treatment and the claim is filed within the prescribed period.

Importers will be required to retain records supporting preferential tariff claims for at least four years, while exporters and manufacturers must maintain origin-related documents for a minimum of five years.

Duty-free access for most Indian exports

The notification comes ahead of the implementation of CETA, which provides duty-free access for 99 per cent of India's exports to the UK, covering nearly the entire export basket.

The agreement is expected to create opportunities for labour-intensive sectors such as textiles, leather, footwear, marine products, sports goods, toys, and gems and jewellery. Fast-growing sectors including engineering goods, auto components and organic chemicals are also expected to benefit.

Trade between India and the UK rose 8.62 per cent to $25.12 billion in 2025-26 from $23.13 billion in the previous fiscal year. India's exports stood at $13.44 billion, while imports were valued at $11.68 billion, resulting in a trade surplus of $1.76 billion.

[The Business Standard]