First Tranche of Tariff Concessions under India-UK Comprehensive Economic and Trade Agreement (CETA)

Ψ  Table I: BCD Exemption for 11106 Entries

Ψ  Table II: BCD and AIDC Exemption for 28 Entries

Ψ  Table III: Goods under TRQ – 2 Entries (27 Tariff Lines) covering Motor Vehicles

This notification grants preferential customs duty concessions on imports from the United Kingdom under the India–UK Comprehensive Economic and Trade Agreement (CETA). It is issued under Section 25(1) of the Customs Act, 1962 and replaces the normal customs duty rates with preferential rates for eligible UK-origin goods.

Key Features

·         Effective Date: 14 July 2026.

·         Legal Basis: Section 25(1) of the Customs Act, 1962.

·         Objective: Implement India's tariff commitments under the India–UK CETA by providing reduced Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), and, where applicable, Health Cess on qualifying UK-origin goods.

Structure of the Notification

The notification contains three tariff tables:

1.    Table I

o    Covers goods eligible for preferential rates of:

§  Basic Customs Duty (BCD)

§  AIDC

§  Health Cess (where applicable)

2.    Table II

o    Covers goods eligible for preferential rates of:

§  BCD

§  AIDC

o    Health Cess is not applicable.

3.    Table III

o    Covers goods subject to Tariff Rate Quotas (TRQs).

o    Specifies:

§  In-quota BCD rate

§  In-quota AIDC rate

§  Annual TRQ quantity

§  Out-of-quota BCD and AIDC rates once the quota is exhausted.

Conditions for Availing the Benefit

The concessional rates are available only if:

·         The imported goods are of UK origin.

·         The importer satisfies Customs authorities regarding origin in accordance with:

o    the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020), and

o    any additional rules notified by the Government.

·         The importer produces the prescribed proof of origin.

Coverage

The notification spans 448 pages and contains preferential tariff rates for thousands of tariff lines, including:

·         Live animals

·         Meat and fish products

·         Dairy products

·         Fruits and vegetables

·         Cereals and grains

·         Spices

·         Processed food products

·         Chemicals

·         Pharmaceuticals

·         Textiles

·         Machinery

·         Electrical and electronic goods

·         Automobiles and parts

·         Industrial products

·         Numerous other goods covered under the Customs Tariff.

Each tariff line specifies the applicable concessional BCD, AIDC and, where relevant, Health Cess.

Practical Significance

The notification:

·         Operationalises the tariff commitments under the India–UK CETA.

·         Enables UK-origin goods meeting origin requirements to enter India at preferential duty rates.

·         Includes TRQ-based concessions for specified sensitive products.

·         Is one of the principal notifications required for implementing the customs tariff commitments under the India–UK trade agreement.

A duty map

Preferential BCD Rate

Broad Product Categories

0%

Most fish and seafood, many horticultural products, seeds, medicinal plants, raw materials, industrial inputs, numerous chemicals and manufacturing inputs

4.8%

Certain live animals (breeding stock)

8%

Selected frozen fruits

9%

Certain dried fruits

12%

Cocoa beans

13.6%

Medicinal and aromatic plants

20%

Lactose and selected sugars

24%

Large number of processed foods, vegetables, fruits, cocoa products, starches and food preparations

25.8%

Sugar confectionery, chocolates, processed foods

27%

Processed fish products, preserved foods, flour products, starches and several food preparations

28.5%

Several fruits, vegetables, spices and seeds considered sensitive

36%

Wheat

40–42.9%

Infant food, starches and selected processed foods

63%

Pepper, rice and certain highly protected agricultural products

80%

Walnuts and selected poultry products

90%

Sugar

Sector-wise Duty Map

Sector

Typical Preferential Duty

Industrial raw materials

Mostly 0%

Fish & seafood

Mostly 0%

Seeds & planting material

0%

Chemicals

Predominantly 0–8%

Pharmaceuticals

Mostly 0%

Machinery & engineering goods

Generally low or zero (covered in later chapters)

Fruits & vegetables

0–28.5%

Processed foods

20–27%

Spices

0–63%

Cereals

0–63%

Sugar

90%

Key Takeaways

·         Extensive liberalisation: A substantial share of tariff lines receive 0% preferential duty, especially industrial inputs, raw materials, machinery inputs and many agricultural commodities.

·         Moderate protection: Duties in the 20–28.5% range remain for many processed foods and horticultural products.

·         High protection for sensitive sectors: Products such as sugar (90%), rice and pepper (63%), and certain poultry and walnuts (80%) continue to attract high duties, reflecting India's protection of sensitive agricultural sectors.

·         TRQ support: Some products receive preferential access through Tariff Rate Quotas (TRQs), allowing reduced duties up to specified annual quantities, with higher out-of-quota rates thereafter.

This duty map illustrates that the India–UK CETA adopts a calibrated tariff liberalisation strategy: broad duty elimination for industrial and intermediate goods while maintaining significant tariff protection for selected agricultural and food products.

[Notification No. 29/2026-Customs dated 14 July 2026]

Seeks to give effect to the first tranche of tariff concessions under India-UK Comprehensive Economic and Trade Agreement (CETA)

G.S.R...(E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, -

(i)         goods of the description as specified in column (3) of the TABLE I appended below and falling under the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entries in column (2) of the said TABLE,-

(a)        from so much of the duty of customs leviable thereon under the said Schedule, as is in excess of the amount calculated at the rate specified in the corresponding entries in column (4) of the said TABLE;

(b)        from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (5) of the said TABLE;

(c)        from so much of the Health Cess leviable under section 141 of the Finance Act, 2020 (12 of 2020), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (6) of the said TABLE;

(ii)        goods of the description as specified in column (3) of the TABLE II appended below and falling under the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entries in column (2) of the said TABLE, from so much of the duty of customs leviable thereon under the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entries in column (4) of the said TABLE and from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (5) of the said TABLE;

(iii)       goods of the description specified in column (3) of the TABLE III appended below, and falling within the tariff item of the First Schedule to the Customs Tariff Act, 1975, as are specified in the corresponding entry in column (2) of the said TABLE in such quantity of total imports of such goods in a year, as specified in column (6) of the said TABLE (hereinafter referred to as the 'tariff rate quota (TRQ) quantity'), from so much of the duty of customs leviable thereon under the said schedule as is in excess of the amount calculated at the rate as specified in the corresponding entry in column (4) of the said TABLE (hereinafter referred to as the 'In-quota BCD rate') and from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate as specified in the corresponding entry in column (5) of the said TABLE (hereinafter referred to as the 'In-quota AIDC rate'), subject to the conditions specified in the Annexure to this notification:

Provided that, in respect of such goods imported in excess of the tariff rate quota (TRQ) quantity specified in the corresponding entry in column (6) of the TABLE III in a year, the exemption shall be available from so much of the duty of customs leviable thereon under the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (7) of the said TABLE (hereinafter referred to as the ‘Out-of-quota BCD rate’) and from so much of the Agriculture Infrastructure and Development Cess leviable thereon under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entry in column (8) of the said TABLE (hereinafter referred to as the ‘Out-of-quota AIDC rate’).

when imported into Republic of India from United Kingdom:

Provided that the exemption shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of United Kingdom, in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 and rules as may be notified in this regard by the Central Government by publication in the Official Gazette.

Table I