Zero duty isn't automatic: what Indian exporters must do so UK buyers can claim it

What are the India-UK FTA benefits for Indian exporters?

The UK-India Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026. Its main benefit for Indian exporters is duty-free entry to the UK: the UK government says 99% of Indian goods entering the UK are now duty-free or at reduced tariffs.

PIB, the Indian government's press office, gives these sector figures. The projections are government forecasts, not results.

The UK side was not phased. Under Annex 2A, each UK tariff line was cut to zero on day one, put under a quota (electric, hybrid and hydrogen cars only, from year 6) or excluded. Exclusions include milled rice, among them milled basmati, and sugar. Phased cuts apply only to India's tariffs on UK goods.

• Free self-declared certificates of origin on DGFT's Trade Connect platform.
• No proof needed for UK imports with a customs value of £1,000 or less (Art 3.18).
• Faster release: both sides will endeavour to clear goods within 48 hours of arrival where documents arrive in advance, there is no physical inspection and all regulatory checks, such as food and plant checks, are complete (Art 5.5).
• Free advance origin rulings from HMRC (Art 5.8), valid for 3 years. HMRC's service requires a GB EORI, so in practice your UK importer applies.

Beyond goods, the Double Contributions Convention also took effect on 15 July 2026. PIB says it removes dual social security contributions for Indian staff on UK assignments of up to 60 months. PIB also lists wider UK access for services such as IT and professional services. This guide covers goods.

Why isn't zero duty automatic for Indian exporters?

Because the exporter does not claim it. The UK importer claims preference on the customs declaration. That claim rests on a proof of origin (Art 3.15), and the importer must correct a wrong claim and pay any duty owed (Art 3.21) and keep records (Art 3.24.1). If the buyer's customs agent never enters the claim, qualifying goods pay the standard rate, or the DCTS rate if that is claimed instead.

There are three kinds of proof: an origin declaration by the Indian exporter or producer, a certificate from an Indian issuing authority, or the importer's own knowledge. The agent enters preference code 300, origin IN and document code 9001, N954 or U112.

India also stays in the UK's Developing Countries Trading Scheme (DCTS) until 14 July 2028, so a buyer may claim either scheme where India still has a DCTS rate. The two schemes' proofs are not interchangeable, so agree the scheme before preparing paperwork. Where both apply, CETA's 0% is never worse than the DCTS rate, so DCTS mainly helps goods that fail the CETA origin rule but meet the DCTS rules.

What must Indian exporters do to get the zero-duty benefit?

Four steps happen before you ship; two protect the claim afterwards.

1. 1

   Check your line's real gain

   On the UK Trade Tariff, read the standard rate, any DCTS rate and whether India is excluded, the India preference and any suspension. If the rate is already 0% for everyone, CETA adds nothing. See the India-UK FTA zero-duty products list.

2. 2

   Meet the product rule

   From the bill of materials and a cost sheet, confirm the product is wholly obtained, made only from originating materials or meets its Annex 3A rule. See the CETA product-specific rules.

3. 3

   Issue the proof of origin

   Use a self-declared or agency certificate on Trade Connect, or an origin declaration on the Annex 3B template, and agree the UK document code with your buyer's customs agent. See the CETA certificate of origin guide.

4. 4

   Price the saving into quotes

   Agree the Incoterm and the importer of record, since that party claims, then decide how the saving is shared. The landed cost calculator shows what a missed claim costs.

5. 5

   Keep the file for five years

   Hold the proof, invoice, bill of materials, costings, supplier statements and transport documents for five years (Art 3.24.2).

6. 6

   Be ready for verification

   Name someone to answer DGFT or Department of Commerce letters, because an unanswered request can sink the claim. See how CETA origin verification works.

How much duty does the UK deal actually save on your product?

Often less than the headline. Before 15 July 2026 India used the UK's DCTS scheme, so many lines already paid a reduced rate. But from 1 January 2026 India lost DCTS in 19 chapters (11, 15, 28, 29, 42, 50 to 58, 62, 63, 68, 71 and 73) and paid the full rate there.

PIB says MSMEs will save 4% to 16% in tariffs. That range matches the UK's standard rates, but on many lines India already paid a lower DCTS rate, so check what India actually paid. The rates below were read on the UK Trade Tariff on 21 October 2026.

CTH is a change of tariff heading and CC a change of chapter. Standard QVC means at least 40% of the ex-works price or 45% of the FOB value (build-down), or 35% of either (build-up). For more lines, see the India-UK FTA zero-duty products list.

• No gain, already 0% for all: fresh mango, black tea, turmeric, mango chutney, copper and steel kitchenware, hand-made paper and brass ornaments.
• No gain yet, 0% under DCTS: toys in sets (above), some women's ankle-covering leather footwear (6403919800) and green tea in small packs (0902100000). CETA keeps them at 0% after India leaves DCTS in July 2028.
• Check the exact footwear code: other leather shoes do gain. India paid 2.5% under DCTS on women's shoes under 6403999890 (standard 6%) and 4.5% on strap-vamp shoes with sole and heel over 3 cm (6403991100, standard 8%).
• No edge: dried sweet peppers (0904211000) carry a 0% suspension for all countries until 31 December 2028.

Does your product count as Indian origin under CETA?

Under Article 3.2, a product qualifies if it is wholly obtained in India, made there only from originating materials, or meets its product-specific rule in Annex 3A. Final production must happen in India.

• Wholly obtained: honey, fresh fruit including mango, spices and rice (though milled rice, including basmati, is excluded from the CETA rate).
• Change of heading plus Standard QVC: textiles and apparel (Chapters 50 to 63), leather goods, pickles and other Chapter 20 preparations, furniture and toys.
• Change of heading only: footwear and biscuits.
• Change of chapter: ceramics and terracotta.
• Change of heading plus a higher QVC: steel articles in Chapter 73 (50% of ex-works or 55% of FOB build-down, or 45% build-up).

Only materials that are themselves originating in India or the UK count as originating (Art 3.8); there is no cumulation with third countries. There is no yarn- or fabric-forward rule either, so garments made from imported fabric can qualify if the costings meet the QVC.

Transit or storage in a third country is fine if the goods stay under customs control and undergo nothing beyond unloading, reloading, splitting, storage, labelling, marking or preservation (Art 3.14; bottling is allowed only for spirits of heading 2208). Keep the transport documents, because the importer must show this on request. A merchant exporter may declare origin relying on the producer's information (Art 3.16.3), so get it in writing from each supplier.

How do you get a certificate of origin for the UK under CETA?

Under DGFT Trade Notice 11/2026-27, certificates of origin for the UK are issued on Trade Connect at trade.gov.in from 15 July 2026, either self-declared or agency-issued. CETA also lets the exporter or producer complete an origin declaration on the Annex 3B template (Art 3.15.1).

Agencies under DGFT Public Notice 10/2026-27 include DGFT regional offices, the Export Inspection Council and its agencies, APEDA, the Spices Board, the Textiles Committee and DC (Handicrafts).

Every proof must be in English and travel with an invoice. The agreement makes it valid for 12 months; for a UK import, UK law sets the period for an origin declaration (regulation 15 of SI 2020/1457), so confirm it with the customs agent. One proof can cover identical shipments over a stated period of up to 12 months. Agree with the buyer's customs agent whether a self-declared eCoO is entered as 9001 or N954, because the official guidance we checked does not settle it.

• IEC active and annual update filed (April to June), with a DSC linked to it on Trade Connect
• UK 10-digit commodity code agreed with the buyer
• Annex 3A rule written down
• Bill of materials showing the origin of every input
• QVC worksheet, if the rule needs one
• Production in India goes beyond packing, labelling or simple assembly (Art 3.7)
• CETA or DCTS agreed, with the matching proof
• Incoterm and importer of record agreed, so you know who claims code 300
• Proof in English, matched to the invoice number

How should you price the duty saving into your UK quotes?

The saving goes to whoever pays UK duty. Under DAP the UK buyer is normally importer of record and keeps the saving unless your price reflects it. Under DDP your side handles the import, so your importer of record, with a GB EORI and a UK customs agent, makes the claim. See DAP vs DDP UK import terms.

On a line where India paid 12%, a correct claim saves £120 per £1,000 of customs value; on a 9.6% DCTS line, £96. These are calculations, not prices.

You can pass the saving on, let the buyer keep it, or use part of it to cover compliance costs. Buyers can see the 0% rate on the UK Trade Tariff, so show the code, the CETA rate and the proof in your quote.

If a buyer paid duty on a qualifying shipment, a proof can be completed retrospectively (Art 3.15.7). UK law gives the importer three years from the date HMRC accepted the import declaration to claim (regulation 16(3) of SI 2020/1457); the agreement's minimum is one year (Art 3.20.3). CETA does not change import VAT, food safety, product safety or labelling rules.

What records must you keep, and how does the UK check a claim?

Exporters and producers keep origin records, including supplier information, for five years from issue or completion (Art 3.24.2). UK importers keep theirs for at least four years.

1. 1

   HMRC asks the importer

   HMRC first writes to the UK importer for supporting information (Art 3.25.3).

2. 2

   The UK asks India

   Within two years of the claim, the UK can ask India's Department of Commerce. Later requests use the 2021 customs assistance agreement, and in suspected fraud cases India must answer requests made within five years (Art 3.25).

3. 3

   India checks with the exporter

   For self-declared certificates, the DGFT regional authority or SEZ office with jurisdiction verifies, using your records.

4. 4

   The UK decides

   An unanswered request can lead to denial (Art 3.19). If two separate verifications of the same exporter's goods under the same code end in denial, the UK can suspend preference on them, after at least 15 days' notice to India (Art 3.26).

The UK may not reject a proof for minor typing or formatting errors, and allows 30 days to replace a defective one (Art 3.22). Claims based on importer's knowledge are checked with the importer alone.

If you supply a merchant exporter such as Britbasket, expect to be asked for this origin information, because its declaration relies on yours.

Are exporters actually using the deal, and when will official figures appear?

Utilisation is the share of eligible trade that actually enters at the preferential rate. No CETA figure has been published yet.

For context, the Observer Research Foundation (ORF), a think tank, puts India's historical FTA utilisation at around 25%, against 70% to 80% in many developed economies. That is a general estimate, not a CETA figure, and ORF sources it to a newspaper column, not official data.

ORF, citing official DGCI&S data, says registered MSMEs made up about 40% of India's exports to the UK in 2022-23, against 28% of India's total exports, so this paperwork falls heavily on smaller firms.

The two governments have agreed to exchange data. At the 16th India-UK JETCO meeting on 12 October 2026, they agreed to do so every year, from one year after entry into force, including how often businesses claim CETA rates. The statement does not promise publication.

The next fixed date for duty is 15 July 2028, when India leaves DCTS. Lines where buyers still claim DCTS will then depend on CETA alone, so get the CETA paperwork working before then.

Questions exporters ask

Sources

1. GOV.UK: Historic UK-India Free Trade Agreement is now in effect (17 July 2026)
2. GOV.UK: UK-India CETA, Chapter 3: Rules of origin (July 2025)
3. GOV.UK: UK-India CETA, Annex 3A: Product-specific rules (July 2025)
4. GOV.UK: UK-India CETA, Annex 3B: Origin declaration (July 2025)
5. GOV.UK: UK-India CETA, Annex 2A: Tariff commitments (July 2025)
6. GOV.UK: UK-India CETA, Appendix 2A-b: UK schedule (July 2025)
7. GOV.UK: UK-India CETA, Chapter 5: Customs and trade facilitation (July 2025)
8. HMRC: Tariff Stop Press, India FTA enters into force (13 July 2026)
9. HMRC: Preference codes for Data Element 4/17 (6 May 2026)
10. GOV.UK: Country graduation from the DCTS, India (4 September 2026)
11. GOV.UK: DCTS goods graduation, 2026 to 2028 (30 September 2025)
12. HMRC: Register to complete origin declarations under the UK-India FTA (24 July 2026)
13. UK Integrated Online Tariff: rates for India (read 21 October 2026)
14. DGFT: Trade Notice 11/2026-27, eCoO for India-UK CETA (13 July 2026)
15. DGFT: Public Notice 10/2026-27, authorised agencies (11 May 2026)
16. GOV.UK: Joint Statement of 16th Meeting of the India-UK JETCO (12 October 2026)
17. PIB: India-UK CETA Comes into Effect (15 July 2026)
18. ORF: Beyond Tariff Cuts: Can the India-UK CETA Deliver for MSMEs? (7 August 2026)
19. HMRC Trade Tariff: India Origin Reference Document v1.0 (13 January 2026)
20. HMRC: How to claim a repayment of import duty and VAT if you've overpaid (1 September 2026)
21. HMRC: Apply for an Advance Origin Ruling (4 July 2023)
22. DGFT: Public Notice 02/2025-26, Appendix 2K fees (15 April 2025)
23. PIB: India-UK CETA, leather and footwear exports (28 July 2025)

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.