India Notifies UK Vehicle Import Rules

India has notified the procedures for quota-based duty concessions on passenger cars and goods vehicles imported from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA). The rules and the agreement are scheduled to come into effect on 15 July 2026, and the Directorate General of Foreign Trade (DGFT) issued the public notice on 9 July 2026.

India-UK Comprehensive Economic and Trade Agreement

The India-UK Comprehensive Economic and Trade Agreement is a bilateral trade pact between India and the United Kingdom. Under the automotive chapter, India will reduce import duties on vehicle imports from about 110% to 10% in a phased manner through Tariff Rate Quotas (TRQs).

Tariff Rate Quota for Passenger Cars

In the first year, India will allow a quota of 20,000 UK-built internal combustion engine (ICE) passenger cars at concessional duty rates. The duty rate for these vehicles will range from 30% to 50%, depending on engine size. The quota for conventional-engine passenger cars will rise to 37,000 units in the fifth year, when the customs duty will settle at 10%.

Eligibility and Certification Rules

Importers must produce a Certificate of Origin issued by the concerned authorities in the United Kingdom at the time of consignment clearance. Only original equipment manufacturers (OEMs), their authorised dealers, and channel partners can apply for TRQ allocations. A pre-purchase agreement from the OEM is required for eligibility.

Important Facts for Exams

• Tariff Rate Quota is a trade mechanism that allows a fixed quantity of imports at a lower duty rate.
• Internal combustion engine vehicles use petrol or diesel as fuel and are distinct from battery electric vehicles.
• Certificate of Origin is a standard customs document used to establish the country of manufacture of goods.
• DGFT functions under the Ministry of Commerce and Industry and issues notices related to foreign trade procedures.

Electric, Hybrid and Hydrogen Vehicles

India has kept electric, hybrid, and hydrogen-powered vehicles outside the initial concession period. Duty concessions for these categories will begin only from the sixth year of the agreement. From that year, India-manufactured electric, hybrid, and hydrogen-powered vehicles priced between GBP 20,000 and GBP 80,000 will receive duty-free access to the UK market.