India Notifies Origin Rules Ahead of UK Trade Pact Rollout
NEW DELHI- India has notified the rules for determining the origin of goods eligible for preferential tariff treatment under its Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, paving the way for the free trade pact to come into force on July 15.
The notification, issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Finance Ministry, establishes the framework for identifying products that qualify for duty concessions under the agreement. The rules are intended to ensure that only goods genuinely produced in India or the United Kingdom benefit from the pact’s tariff preferences.
Under the new framework, exporters seeking preferential market access must obtain a certificate of origin, a document verifying that their products satisfy the agreement’s prescribed origin requirements. The mechanism is designed to prevent goods manufactured in third countries from accessing tariff benefits through transshipment or other indirect routes.
The CBIC said authorized entities in both India and the United Kingdom would be empowered to issue certificates of origin in their respective jurisdictions.
According to the notification, formally titled 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, the regulations will take effect on July 15, the same day the trade agreement becomes operational.
Once implemented, the agreement is expected to provide duty-free access for 99 percent of India’s exports to the United Kingdom, covering nearly the country’s entire export basket and significantly expanding market opportunities for Indian manufacturers.
Labour-intensive industries, including textiles, leather products, footwear, marine products, sports goods, toys, and gems and jewellery, are expected to be among the principal beneficiaries of the agreement. Export-oriented sectors such as engineering goods, automobile components and organic chemicals are also expected to gain from improved access to the British market.
Official trade data show that bilateral trade between India and the United Kingdom reached $25.12 billion during the 2025-26 financial year, an increase of 8.62 percent from $23.13 billion recorded a year earlier.
India exported goods worth $13.44 billion to the United Kingdom during the period, while imports totaled $11.68 billion, resulting in a trade surplus of $1.76 billion.
Rajat Mohan, Managing Partner at AMRG Global, said the notification of the Rules of Origin represented a key step toward operationalizing the agreement in a transparent and credible manner.
He said the framework would ensure that tariff concessions are available only to products meeting the prescribed origin criteria, thereby protecting the integrity of the free trade agreement by preventing misuse through third-country routing.
Mohan also advised businesses to review their supply chains, sourcing strategies, value-addition processes and documentation procedures to ensure compliance with the Rules of Origin, noting that adherence to the framework would be essential for companies seeking to benefit from the agreement’s preferential tariff provisions.
The notification completes another procedural step ahead of the implementation of the India-UK trade pact, which is expected to deepen bilateral trade and expand commercial ties between the two countries.
