The Finance Ministry has notified Customs Tariff Rules to determine the origin of goods under the India-UK Comprehensive Economic and Trade Agreement (CETA)
The rules enable the CETA's rollout from July 15, 2026, and define when products qualify as originating in either country
They set methods for calculating value content, and mandate certificates of origin to claim preferential tariffs, aiming to expand bilateral trade
The Union Finance Ministry on Saturday notified the rules governing the determination of the origin of goods under the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), paving the way for the agreement to take effect from July 15.
According to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC) dated July 3, the new framework of the Customs Tariff Rules will come into force on July 15.
1 June 2026
Get the latest issue of Outlook Business
"These rules may be called 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. They shall come into force on the 15th July, 2026," the notification said.
Rules Define Origin Criteria For Preferential Tariffs
The rules establish how goods will qualify as originating in India or the UK, enabling them to claim preferential tariff treatment under the bilateral trade agreement.
Under the notified framework, products will be treated as originating if they are wholly obtained in either country, manufactured entirely using originating materials, or produced using non-originating inputs while meeting the origin requirements prescribed under the agreement.
The notification also stated that the final production process must take place in the exporting country, subject to specified exceptions.
The rules outline methods for calculating the qualifying value content of goods and prescribe how the value of products and materials should be determined for assessing eligibility.
Certificate Of Origin Remains Key Requirement
A certificate of origin remains a crucial document for exporters seeking duty concessions under India's trade agreements. The notification provides that authorised entities in both India and the UK will issue these certificates in their respective jurisdictions.
Exporters and importers will have to comply with documentation requirements to support claims for preferential tariff treatment. The notification also set out an authentication mechanism for origin declarations and certificates, alongside provisions for electronic exchange of information between the two countries.
To prevent misuse of tariff concessions, the rules stipulate that goods transiting through non-signatory countries must remain under customs supervision and should not undergo processing beyond activities necessary for transportation, storage, preservation or logistical purposes.
CETA Expected To Expand Bilateral Trade
The India-UK trade agreement provides duty-free market access for 99% of India's exports to the UK, covering almost the entire export basket.
Labour-intensive sectors such as textiles, leather, footwear, marine products, sports goods, toys, gems and jewellery, as well as engineering goods, auto components and organic chemicals, are expected to benefit.
Bilateral trade between India and the UK rose 8.62% to $25.12 billion in 2025-26 from $23.13 billion in the previous financial year. India's exports stood at $13.44 billion, while imports totalled $11.68 billion, resulting in a trade surplus of $1.76 billion.
