Import duty from India: honey 16% to 0%, wool shawls 8% to 0%, mango unchanged, VAT untouched

What is the import duty from India to the UK now?

Import duty from India to the UK changed on 15 July 2026, when the UK-India Comprehensive Economic and Trade Agreement (CETA) entered into force. Under the UK schedule, duty on an originating Indian good in category A is eliminated on that date, with no phasing. The only staged item on the UK side is a tariff quota for electric, hybrid and hydrogen passenger cars. A short list of category U lines, including milled rice and sugar, is excluded altogether.

On the other food and consumer goods lines checked for this guide, the Trade Tariff shows a tariff preference for India at 0.00% from 15 July 2026. That 0% is a preference, not a new standard rate. It applies only to goods that meet the CETA rules of origin and are claimed on the import declaration. Without a claim, the importer pays the rate that would otherwise apply. Check primary steel line by line. The UK schedule lists chapters 72 and 73 in category A, but some lines, such as 7208519110 and 7306307790, now show a 50% third-country duty from 1 October 2026 and no 0% CETA preference on the tariff. 7306307790 has an India-only 0% quota (order 058643), and 7208519110 has a 0% quota for non-EU countries that includes India (order 058619). The current period of each ends on 31 December 2026, so ask your customs agent whether quota is left before you budget. Steel kitchenware under heading 7323 does not carry the 50% duty.

Every rate in this guide was read on the HMRC Trade Tariff on 30 October 2026. Rates change, so open the live commodity page with India selected on the day you import.

Which Indian goods got a real duty cut on 15 July 2026?

The table compares three numbers for each line: the standard (third-country) rate, the rate India actually paid on 14 July 2026, and the CETA rate. The biggest cuts sit where India had no lower rate under the UK's Developing Countries Trading Scheme (DCTS), as on honey, or had lost it, as in the suspended chapters, so it was paying the full standard rate.

The headline shawl figure applies to hand-made (6214200010) and machine-made (6214200090) shawls of wool or fine animal hair. Hand-made cotton shawls (6214900011) and hand-made silk shawls (6214100010) show the same 8% standard rate and 0% under CETA. One timing point matters. In 2025 India could still claim a 6.4% DCTS rate on these shawls, and the 8% applied only from 1 January 2026. Against a 2025 entry, the saving is 6.4 points, not 8.

Why is the saving smaller than the standard rate on some lines?

Before CETA, India was a DCTS Standard Preferences country, so on many lines it paid a reduced rate rather than the standard one. The CETA saving is the gap between that DCTS rate and 0%. From 1 January 2026 to 31 December 2028, India's DCTS Standard rate is suspended in 19 chapters: 11, 15, 28, 29, 42, 50 to 58, 62, 63, 68, 71 and 73. In those chapters India paid the full standard rate until CETA arrived.

• Knitted clothing (chapter 61) kept its DCTS rate. Cotton T-shirts, knitted cotton dresses and babies' cotton garments have a 12% standard rate, but India paid 9.6%, so the saving is 9.6 points.
• Woven clothing (chapter 62) lost DCTS on 1 January 2026. Women's cotton dresses and men's cotton shirts paid 9.6% in 2025, 12% from January to 14 July 2026, and 0% since.
• Rugs, home textiles, leather goods and jewellery (chapters 57, 63, 42 and 71) had no DCTS rate for India in 2025 either, so the standard rate is the true before figure.
• Ceramics depend on the code. Hand-made earthenware ornaments (6913909310) and other hand-made ceramic ornaments (6913909810) are 6% standard, but India paid 2.5%. Hand-made common-pottery (terracotta) ornaments (6913901010) are 2% standard, yet India already paid 0% under DCTS, so CETA changed nothing.
• Footwear depends on the code. With insoles of 24 cm or more, women's leather shoes that do not cover the ankle (6403999890) are 6% standard and India paid 2.5%, and women's leather ankle boots (6403911890) are 8% standard and India paid 4.5%. Both are now 0%.
• Processed foods kept DCTS. Sweet sandwich biscuits (1905319100) are 8% standard, but India paid 4.5%. Vegetables preserved in vinegar without added sugar (2001909791) are 16% standard, and India paid 11.2%. Pickles in oil may classify elsewhere, so confirm the code with your customs agent.
• Some lines were 0% under DCTS already. Toys in sets (9503007000) and women's leather boots covering part of the calf (6403919800) show a 4% standard rate and electric irons (8516400000) 2%, but India paid 0% on all three.

Until India leaves DCTS on 15 July 2028, an importer can claim either scheme. The proofs are not interchangeable: a DCTS origin declaration or Form A cannot support a CETA claim, and the reverse is also true. Two codes that look alike can carry different rates, so check the classification before you budget.

Which goods were already duty-free, and which does the deal leave out?

Many staples of the India trade had a 0% UK rate for every country long before CETA. For them the deal changed nothing on duty, and it is wrong to say they became cheaper because of it. Fresh mango is the clearest case: 0% before 15 July 2026 and 0% after.

The same holds for cumin (0909310000), mango chutney (2001901000), copper cooking ware (7418101000), base-metal ornaments (8306290000), handmade paper (4802100000), wooden statuettes and ornaments not of tropical wood (4420190000) and hand-knotted wool rugs (5701109000, or 5701101010 if they contain more than 10% silk). Ornaments of listed tropical woods such as teak (4420111010) are 2% standard and inlaid wood (4420901000) is 4%: India could claim 0% under DCTS and can now claim 0% under CETA, but only with a claim. Husked (brown) basmati of the listed varieties (1006209813) is also 0% for every country, but only with a basmati certificate of authenticity (document code A022). Without it the rice is declared under 1006209818 at £25 per 1,000 kg, or 0% with a CETA claim. A CHED is needed as for milled basmati.

Milled rice and sugar sit in category U of the UK schedule, so no CETA preference applies. Milled basmati can still enter at 0% inside an India-only non-preferential quota (order number 054117), but only with an AGRIM import licence. Sugar has its own India-only quota (054321), also only with an AGRIM import licence.

What is the import duty on clothes, rugs, furniture and jewellery from India?

Here is the short answer for each of these groups, and for leather handbags, from the Trade Tariff on 30 October 2026.

• Clothes: 0% with a CETA claim. Cotton T-shirts (6109100010), women's woven cotton dresses (6204420090) and men's woven cotton shirts (6205200090) have a 12% standard rate. Before CETA, India paid 9.6% on the knitted items and, from 1 January 2026, 12% on the woven ones.
• Rugs: hand-knotted wool rugs (5701109000, or 5701101010 if they contain more than 10% silk) were already 0%. Kilims and similar hand-woven rugs (5702100000) went from 2% to 0%. Tufted wool rugs (5703100000) and flat-woven made-up rugs of other textiles (5702990090) went from 8% to 0%.
• Furniture: wooden bedroom (9403500000), dining and living-room (9403601000) and other wooden furniture (9403609000) were already 0% for every country. Wooden kitchen furniture (such as 9403409090) and wooden furniture parts (such as 9403910010) are 2% standard: India could claim 0% under DCTS and can now claim 0% under CETA, but only with a preference claim.
• Jewellery: hand-made imitation jewellery of base metal without glass parts (7117190010) went from 4% to 0%. Silver jewellery (7113110000) and gold or other precious-metal jewellery (7113190000) went from 2% to 0%. India had no DCTS rate on chapter 71.
• Leather handbags: hand-made leather handbags (4202210010) went from 2% to 0%.

Cotton dhurries are a classification trap. They may fall in 5702100000 or 5702990090. Both are 0% under CETA, but the fallback rate is 2% on one and 8% on the other. Ask your customs agent, or apply for an HMRC Advance Tariff Ruling, before you price a range.

How are import duty and VAT calculated on goods from India?

Duty and import VAT are separate charges, worked out in this order.

1. Customs value: the price of the goods plus transport, insurance, loading and handling up to the point where they enter the UK, converted to sterling.
2. Duty: customs value multiplied by the duty rate. That is 0% for an originating good with a valid CETA claim, and the standard or DCTS rate otherwise. Specific duties, such as £121 per 1,000 kg on milled basmati, are charged on weight instead.
3. Import VAT: customs value plus duty plus incidental costs to the first UK destination, multiplied by the VAT rate for the goods.

For air freight, delivery costs count up to the point where the UK border is first crossed. For sea freight they count up to the port of importation. Inland transport in India counts, and so do surcharges such as the bunker or fuel factor, peak season, security and war risk.

Import VAT is based on the customs value even when no duty is payable. HMRC adds commission, packing, transport and insurance to the first UK destination, transport to a further UK destination if known at import, and any duty. Incidental expenses include customs clearance charges, demurrage, handling and storage.

Convert rupee amounts at the rate in your contract. If the contract has none, use the HMRC rate published for when the entry is accepted. The HMRC monthly rate for November 2026 is ₹126.5099 to £1 (October 2026 was ₹129.0581). It changes every month, so check the current rate for your entry date.

That arithmetic is illustrative, not a price. Freight, insurance and incidentals change both lines, and a VAT-registered owner usually recovers the VAT anyway. The landed cost calculator turns the formula into numbers for your own shipment.

What VAT rate applies to goods imported from India?

HMRC charges VAT on imported goods at the same rate as if they had been supplied in the UK. The rate depends on what the goods are, not where they come from, so CETA could not change it. On every line checked, the tariff's VAT measures apply to all countries, and none is specific to India.

The tariff lists both 0% and 20% VAT on honey, shawls and T-shirts. That is not a contradiction: the liability depends on the goods. Children's clothing is zero-rated only if it is designed for young children and suitable only for them, measured against children up to the eve of their 14th birthday. A scarf qualifies only if it is held out for sale for young children, and a shawl only if it is a babies' shawl designed and held out as such, so adult shawls pay 20%.

Mixtures such as Bombay mix follow paragraph 6.2 of VAT Notice 701/14. Containers can change the answer too. Honey in a ceramic serving bowl with an obvious after-use is treated as two supplies, the honey at 0% and the bowl at 20%, subject to the linked-goods concession in paragraph 6.1 of the same notice.

Can your business defer or recover import VAT?

Import VAT can be recovered only by the owner of the goods at import, whatever the Incoterm and whoever is named as importer of record. A VAT-registered owner can use postponed VAT accounting (PVA) to account for import VAT on its VAT return instead of paying it at the border.

• Your business is registered for VAT in the UK. PVA needs no separate approval.
• The goods are for use in your business, and you have the right to dispose of them, usually as the owner.
• Your VAT registration number goes in Data Element 3/40 of the import declaration.
• Your customs agent holds your written confirmation before declaring PVA for you.
• You choose PVA before the declaration is submitted: it cannot be changed afterwards.
• You download the monthly postponed import VAT statement for your VAT return.

Without PVA, the VAT is paid at clearance or through a duty deferment account, then reclaimed on the VAT return with the Import VAT Certificate (C79). Post over £135 sent through Royal Mail Group, including Parcelforce when not acting as an express operator, cannot use PVA. Under DDP the buyer usually recovers VAT through the seller's or partner's UK VAT invoice. The DAP or DDP guide sets out who owns the goods under each structure.

Do you pay import duty or VAT on orders worth £135 or less?

In Great Britain, non-excise goods worth £135 or less in total pay no customs duty. Above £135 the UK duty rate applies to the price of the goods plus postage, packaging and insurance.

The £135 point is a duty relief, not a VAT exemption. On consignments of £135 or less sold directly to customers in Great Britain, the seller charges UK VAT at the point of sale. If a business buyer gives its UK VAT number, the seller does not charge VAT and the buyer accounts for it under the reverse charge. The limit applies to the value of the whole consignment.

The duty relief is ending. HMRC published a measure on 13 July 2026 that removes it and introduces a fiscal representative. It will start on a day the Treasury appoints in regulations, made by October 2028 at the latest.

How do you claim the 0% rate, and what if you missed it?

1. 1

   Classify the goods

   Agree the 10-digit commodity code with your customs agent. The code sets the duty rate, the origin rule and any licence.

2. 2

   Check the live tariff page

   Open the code with India selected. Note the third-country duty, the India preference, any DCTS rate, and any licence, quota or CHED condition. Save the page with the date.

3. 3

   Confirm origin and the proof

   Check the Annex 3A rule with the Indian exporter: a change of heading plus the Standard QVC for textiles, or wholly obtained for honey. Goods bought in China and repacked or labelled in India are not Indian origin. Agree the proof: origin declaration (9001), certificate of origin (N954) or importer's knowledge (U112). If the exporter sends a DGFT 'India UK CETA (Self-Declaration)' certificate, agree with your customs agent whether it is declared as 9001 or N954.

4. 4

   Work out the customs value

   Add freight and insurance to the UK border, and note the exchange rate used.

5. 5

   Declare the preference

   Your agent enters preference code 300 in Data Element 4/17, India as the origin and the proof code. Code 200 is DCTS and 100 is the normal third-country rate.

6. 6

   Account for the VAT

   Pay it at clearance, defer it, or use PVA if you are the VAT-registered owner.

7. 7

   Keep records and fix misses

   Keep origin records for at least four years (CETA Article 3.24) and VAT records, such as C79 certificates and postponed VAT statements, for at least six years. A missed claim can be made late, within one year of importation or longer if UK law allows.

The declaration and proof-of-origin mechanics are covered in what the India-UK trade agreement means for UK importers. If you paid duty on qualifying goods since 15 July 2026, see how to reclaim import duty under the FTA. If you buy through Britbasket, ask for the commodity code and the proof of origin type with your quote, before the goods ship.

Questions buyers ask

Sources

1. HMRC Trade Tariff: hand-made wool shawls 6214200010, origin India (checked 30 October 2026)
2. HMRC Trade Tariff: natural honey 0409000090, origin India (checked 30 October 2026)
3. HMRC Trade Tariff: cotton T-shirts 6109100010, origin India (checked 30 October 2026)
4. HMRC Trade Tariff: wholly milled basmati 1006309992, origin India (checked 30 October 2026)
5. HMRC Trade Tariff: flat-rolled non-alloy steel 7208519110, origin India (checked 30 October 2026)
6. HMRC Trade Tariff: welded steel tube 7306307790, origin India (checked 30 October 2026)
7. UK-India CETA: Annex 2A, Schedules of tariff commitments for goods (July 2025)
8. UK-India CETA: Appendix 2A-b, Schedule of tariff commitments of the United Kingdom (July 2025)
9. UK-India CETA: Chapter 3, Rules of origin (July 2025)
10. UK-India CETA: Annex 3A, Product-specific rules of origin (July 2025)
11. FCDO and DBT: DCTS goods graduation from 1 January 2026 to 31 December 2028 (30 September 2025)
12. FCDO and DBT: Country graduation from the Developing Countries Trading Scheme, India (4 September 2026)
13. HMRC Tariff Stop Press: India Free Trade Agreement enters into force on 15 July 2026 (13 July 2026)
14. HMRC: Preference codes for Data Element 4/17 of the Customs Declaration Service (8 May 2026)
15. HMRC: Delivery costs to include in the customs value (15 April 2026)
16. HMRC: Working out the VAT value using the customs value of the imported goods (26 September 2025)
17. HMRC: Converting foreign currency amounts to include in the customs value (3 November 2022)
18. HMRC Trade Tariff: exchange rates, November 2026 monthly rates
19. HMRC: Imports and VAT, VAT Notice 702 (9 October 2019)
20. GOV.UK: VAT rates
21. HMRC: VAT rates on different goods and services (10 July 2026)
22. HMRC: Food products and VAT, VAT Notice 701/14 (8 June 2026)
23. HMRC: VAT on young children's clothing and footwear, VAT Notice 714 (28 October 2022)
24. HMRC: Check when you can account for import VAT on your VAT Return (16 June 2025)
25. GOV.UK: Tax and customs for goods sent from abroad
26. HMRC: VAT and overseas goods sold directly to customers in the UK (13 May 2022)
27. HMRC: Reforming the customs treatment of low value imports into the UK (13 July 2026)
28. GOV.UK: Import goods into the UK, step by step (1 June 2026)
29. HMRC Trade Tariff: commodity lookup, for all other codes in this guide with origin India selected (checked 30 October 2026)
30. HMRC VAT Input Tax manual VIT13300: import VAT may only be claimed by the owner of the goods
31. HMRC: Record keeping for VAT, VAT Notice 700/21
32. DGFT: Trade Notice 11/2026-27, CoO under India-UK CETA (13 July 2026)
33. APHA: IPAFFS guidance (17 September 2026)
34. APHA: Authorised border control posts (1 May 2026)

Last reviewed 30 October 2026. Border, tariff and plant-health rules change. Check the sources above before relying on this guide for a specific consignment.