When trading internationally, understanding Free Trade Agreements can be instrumental in getting the most out of your supply chain. They can reduce the cost of moving goods, make products more competitive in overseas markets, and create new opportunities to grow existing trade lanes.
For UK businesses trading with India, the UK-India Comprehensive Economic and Trade Agreement (CETA) introduces new opportunities on both sides of the trade lane. From reduced tariffs to improved market access, the agreement could change the cost and commercial viability of importing from or exporting to one of the world’s largest markets.
However, to take advantage of CETA, businesses need to understand the registration, documentation, and Rules of Origin requirements.
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What is the UK-India FTA?
The UK-India Comprehensive Economic and Trade Agreement (CETA) came into force on 15 July 2026 and has introduced tariff reductions across a wide range of goods.
While some duty savings are available immediately, many of the biggest benefits will be phased in over the next 10 to 15 years.
For businesses importing from or exporting to India, the agreement could create significant opportunities through reduced tariffs, improved market access, and more competitive trade between the two countries.
For businesses exporting to India in particular, there is significant opportunity. India has committed to reducing or removing tariffs across 90% of its tariff lines, covering 92% of existing goods imports from the UK (based on 2022 trade). Tariffs on 64% of tariff lines were removed when the agreement came into force, with further reductions being introduced over time. After 10 years, 85% of tariff lines will be eligible for tariff-free entry into India.
What opportunities does the UK-India CETA create?
India is a substantial market for UK businesses, with a population of more than 1.4 billion and growing demand for high-quality international goods. The agreement is designed to give UK businesses better access to that market by reducing some of the costs and barriers associated with trade.
Depending on the goods being traded, that could mean:
- Reduced duty costs when exporting qualifying goods to India
- Greater competitiveness for British products in the Indian market
- New opportunities to grow customer bases and international supply chains
- Smoother customs processes over time
The benefits will vary significantly by commodity. The agreement includes tariff elimination or reductions across sectors including food and drink, textiles and apparel, chemicals and pharmaceuticals, and engineering and machinery.
For businesses looking beyond the immediate tariff savings, this could create long-term opportunities to rethink sourcing, pricing and international supply chains as further reductions are phased in.
Exporting from the UK to India
If you’re exporting goods from the UK to India and want to take advantage of the preferential tariffs, there are a few key details to be aware of:
Check whether your goods qualify
Preferential rates only apply when goods satisfy the agreement’s relevant rules of origin.
In simple terms, rules of origin determine the economic nationality of a product. Goods may qualify because they are wholly obtained in the UK, are produced entirely from originating materials, or have undergone sufficient processing in the UK to meet the relevant product-specific rule.
These requirements vary depending on the product. Businesses can use the UK Trade Tariff to find commodity codes and check relevant duties, reductions and other requirements.
Register with HMRC
UK businesses exporting goods from the UK to India must register with HMRC before exporting.
Registration is free and links the business and its EORI information to the CETA process. Businesses will need their EORI number, business or trading name, and the email address or addresses that will be used to send origin declarations to the Indian customs authority.
This is an important distinction from some other trade agreements. Businesses cannot assume an existing registration under another preferential trade arrangement will cover UK-India trade.
Complete the origin declaration
For every qualifying consignment, the exporter or producer must complete the specified origin declaration confirming that the goods meet CETA’s rules of origin.
The declaration must be completed in English using the designated UK-India CETA template. It should then be converted to PDF and sent for authentication before preferential tariff treatment can be claimed in India.
Once registered with HMRC, exporters must send the declaration to both the Indian customs authority and the importer in India.
Importing from India to the UK
The UK-India trade deal also creates opportunities for UK companies sourcing goods from India.
For UK importers, the process is different. Businesses do not need to register with HMRC, but instead need proof of origin from their Indian supplier.
This can be provided through an Annex 3B Origin Declaration, or Annex 3C Certificate of Origin. A product being shipped from India does not, on its own, mean that it is of Indian origin for preferential customs purposes.
Where products incorporate materials or components from other countries, businesses need to establish whether the manufacturing or processing undertaken in India is sufficient to meet the relevant origin rule.
Goods valued below £1,000 are exempt.
Why are rules of origin so important?
Only goods that genuinely originate in the UK or India can access preferential tariff rates.
For example, a UK business might manufacture a product using components sourced from several different countries before exporting the finished item to India. Whether that finished product qualifies as UK-originating will depend on the product-specific rules set out under CETA.
Without satisfying the rules of origin, the deal’s tariff reductions do not apply and the importer will instead pay the standard WTO Most Favoured Nation (MFN) rate or higher rates where appropriate.
There are three broad routes to obtaining “originating status”:
- Wholly obtained: the goods are entirely produced or sourced in the UK or Republic of India, with no non-originating inputs at all.
- Made Entirely from Originating Materials: the goods are manufactured using only materials that themselves already originate in the UK or Republic of India.
- Sufficient processing (product-specific rules): the goods use non-originating inputs from third countries but undergo sufficient transformation in the UK or Republic of India.
What is needed to stay compliant?
Businesses claiming preferential tariff treatment need to be able to demonstrate that their goods meet the relevant rules of origin. HMRC may request supporting information or visit an exporter’s premises to verify the originating status of goods exported to India. Indian customs can also request verification, with HMRC and Indian customs liaising as part of this process.
Keeping accurate records is therefore essential.
- UK exporters must retain supporting records for five years from the date of the origin declaration
- UK importers must keep proof of origin and supporting documentation for a minimum of four years.
These records could include supplier declarations, production records, purchase invoices, proof of transport, and any analysis used to determine the origin of the goods. Businesses should make sure this information is complete and readily available if a verification request is made.
If a claim for preferential treatment is found to be incorrect, the importer may be required to pay the duties that would otherwise have been due, and penalties may also apply.
Taking the complexity out of customs
Experienced customs professionals can help businesses navigate requirements, identify opportunities for simplification, and reduce the risk of costly errors. Our in-house customs team has years of experience staying up to date with changing customs requirements, helping businesses keep goods moving efficiently in and out of the UK.
If you’re looking to use the new trade agreement to optimise your supply chain, we’re here to help.
