India Notifies Rules for UK Vehicle Import Benefits Under CETA Effective 15 July 2026

Key facts

• India has notified the procedure for importers to claim quota-based tariff concessions on vehicle imports from the United Kingdom (UK) under the India-UK Comprehensive Economic and Trade Agreement (CETA).
• The Directorate General of Foreign Trade (DGFT) stated that only Original Equipment Manufacturers (OEMs) and their authorised dealers or channel partners are eligible to apply for tariff-rate quotas (TRQs).
• The agreement allows for the import of up to 3.78 lakh conventional-engine passenger vehicles from the UK at concessional customs duties over the first 15 years of the pact.
• In the first year, India will permit the import of 20,000 passenger cars, including 10,000 premium cars at 30% customs duty and 10,000 mid-segment and mass-market vehicles at 50% duty.
• The annual quota for conventional-engine passenger cars is set to reach 37,000 units by the fifth year, with the concessional duty eventually falling to 10%.
• Vehicles with a Cost, Insurance, and Freight (CIF) value below 40,000 British Pound Sterling (GBP) are excluded from the agreement to protect the domestic mass-market electric vehicle (EV) segment.
• No tariff concessions have been offered for electric, hybrid, or hydrogen-powered passenger cars during the first five years of the agreement.
• From the sixth year, imports of EVs and hybrid vehicles priced between 40,000 GBP and 80,000 GBP will attract 50% customs duty under a specific quota.
• To avail of the concessions, importers must produce a Certificate of Origin issued by UK authorities and a pre-purchase agreement from a UK-based OEM.
• The TRQ Certificate issued by the DGFT will remain valid for up to 12 months or until the end of the calendar year, whichever is earlier.