Tariffs gone on '99% of Indian goods', says GOV.UK. So why didn't black tea or mango duty fall?
GOV.UK says tariffs are gone on 99% of Indian goods. For a UK buyer, the saving on each product depends on what it paid before 15 July 2026, and some staples paid nothing at all.
On this page
- What will be cheaper after the UK-India trade deal?
- What does '99% of Indian goods' actually mean?
- Which Indian goods had the biggest duty cuts?
- Why didn't black tea or mango duty fall?
- Were Indian shoes and toys already duty-free before the deal?
- Which goods are excluded from the UK-India trade deal?
- How much does the duty cut save on landed cost?
- What does the trade deal not change?
- How does a UK buyer get the 0% rate?
- Questions buyers ask
- Sources
At a glance
- UK tariff lines freed of duty for Indian goods (government: 'nearly 99%')
- 99%
- Natural honey, the largest percentage cut in this guide (with a valid claim)
- 16% to 0%
- Duty on black tea and fresh mango, before and after 15 July 2026
- 0%
- Duty still due on milled basmati rice outside India's licensed quota
- £121/tonne
Bottom line: CETA took UK duty to 0% on most Indian goods from 15 July 2026 for importers who claim it, but the saving is what each line paid before. Black tea, mango and turmeric were already 0%, milled rice and sugar are excluded, and shop prices depend on pass-through.
In short
- Since 15 July 2026, most Indian goods can enter the UK at 0% duty under the UK-India Comprehensive Economic and Trade Agreement (CETA), if the importer claims it with valid proof of origin.
- Black tea, fresh mango, turmeric, whole black pepper, copper cookware and steel kitchenware were already duty-free for every country, so the deal did not change their duty.
- Large consumer cuts include natural honey (16% to 0%), woven cotton clothing and cotton bed linen (12% to 0%) and hand-made wool shawls (8% to 0%).
- India could already pay less on many lines under the Developing Countries Trading Scheme (DCTS), so cotton T-shirts fell from 9.6%, and women's leather ankle footwear and toy sets could already enter at 0%.
- Milled rice, including milled basmati, and sugar are excluded, and the government's own impact assessment says lower shop prices depend on how much of the saving is passed on.
- Under DDP (delivered duty paid) the seller pays the UK duty, so the saving stays with the seller unless the price is re-quoted.
What will be cheaper after the UK-India trade deal?
Cheaper to import: yes, on a defined set of lines. Cheaper on the shelf: that depends on whether importers and retailers pass the saving on. This board sorts Indian goods by what CETA did to their UK duty (UK Trade Tariff, checked 30 October 2026). This page covers goods entering the UK. India's cuts on UK goods, such as whisky, cosmetics and cars, are a separate schedule.
| Duty cut to 0% | Already 0% before the deal | Excluded from the deal |
|---|---|---|
| Natural honey (was 16%) | Black tea, any pack size | Milled basmati rice |
| Cotton clothing and bed linen (was up to 12%) | Fresh mango | Other milled or semi-milled rice |
| Hand-made wool shawls (was 8%) | Turmeric, whole black pepper, whole cumin | Cane or beet sugar |
| Dairy-free biscuits, earthenware tableware, textile-upper footwear | Copper cookware, brass ornaments, steel kitchenware | Pork, chicken and hens' eggs (GOV.UK's list) |
The Department for Business and Trade (DBT) estimates the yearly duty saving and puts most of it in clothing and textiles:
| Sector (DBT) | Average tariff before (trade-weighted) | Duty saving a year | Share of total |
|---|---|---|---|
| Wearing apparel | 9% | £112m | 51% |
| Textiles | 6% | £33m | 15% |
| Other food | 5% | £19m | 8% |
| Leather products | 3% | £14m | 6% |
| Chemicals | 2% | £10m | 5% |
What does '99% of Indian goods' actually mean?
The figure comes in several versions. The GOV.UK conclusion agreement summary, updated on 15 July 2026, says tariffs are being eliminated "on 99% of Indian goods". The GOV.UK announcement of 17 July 2026 says 99% of Indian goods entering the UK "will either be duty free or reduced in tariffs". DBT's impact assessment is more precise: tariffs are eliminated on "nearly 99% of tariff lines".
India's Press Information Bureau (PIB) speaks of "zero-duty access on nearly 99% of India's exports, covering almost 100% of the trade value". Each version counts tariff lines or trade, not the price of any one product.
The UK's tariff schedule puts each Indian line in one of three groups: 0% from 15 July 2026 (category A), excluded (category U), or a quota for electric, hybrid and hydrogen cars that opens in year six. Apart from that car quota, there are no phased or partial cuts: every line is either 0% from day one or excluded.
The catch is that category A includes lines that were already duty-free. Mango, tea and spices are all category A. They count towards the 99% even though their duty was zero before. DBT's own figures show the gap: before the deal, around 30% of final-consumption tariff lines were already tariff-free for India. After it, DBT puts the share at 97% "if preferences are fully utilised".
- Trade-weighted average of UK standard (MFN) tariffs on Indian goods, before and after (DBT)
- 2% to ~0%
- DBT's estimated yearly cut in duty on UK imports from India
- £220m
- Final-consumption tariff lines duty-free for India, before and after (DBT, if preferences are fully used)
- 30% to 97%
The £220 million figure is a model estimate on 2022 trade, assuming full use of the preferences. No data on how often importers actually claim CETA has been published. At the India-UK JETCO meeting on 12 October 2026, the two governments agreed to exchange it yearly, starting one year after entry into force.
Which Indian goods had the biggest duty cuts?
The saving is the rate a product could actually pay before 15 July 2026, not the standard rate on the tariff. India was in the Standard Preferences tier of the UK's Developing Countries Trading Scheme (DCTS), which often gave a lower rate to importers who claimed it. But the UK suspended those rates for India on its "graduated" chapters: leather goods (42), home textiles (63) and jewellery (71) since DCTS began on 19 June 2023, and woven clothing (62) from 1 January 2026. There India paid the full standard rate until CETA.
| Product (UK code) | Standard rate | Lowest rate India could pay before 15 July 2026 (now 0%) |
|---|---|---|
| Natural honey (0409000090) | 16% | 16% (no DCTS rate) |
| Woven cotton dresses (6204420090) | 12% | 12% (India excluded from DCTS) |
| Cotton bed linen (6302310000) | 12% | 12% (India excluded from DCTS) |
| Footwear, textile uppers (6404199000) | 16% | 11.9% (DCTS) |
| Cotton T-shirts (6109100010) | 12% | 9.6% (DCTS) |
| Hand-made wool shawls (6214200010) | 8% | 8% (India excluded from DCTS) |
| Dairy-free sandwich biscuits (1905319100) | 8% | 4.5% (DCTS) |
| Earthenware tableware (6912002510) | 8% | 4.5% (DCTS) |
Every line above is now 0% for Indian-origin goods with a valid claim. Honey had no DCTS rate at all. Knitted T-shirts sit in chapter 61, which was not graduated for India, so their saving is 9.6 points, not 12. A DCTS rate applied only if the importer claimed it with DCTS proof of origin; without that, the standard rate was due.
Biscuits come with a food-rule catch. The Food Standards Agency (FSA) and Food Standards Scotland say foods containing dairy ingredients from India, including composite products with dried milk, are non-compliant and subject to detention at the border. So the 0% rate only helps on biscuits made with no dairy ingredient.
More examples: roasted coffee fell from India's DCTS rate of 2.5%, instant coffee from 3.1% and dried sweet peppers from 4.5%. Leather handbags and precious-metal jewellery fell from 2%, as India was excluded from the 0% DCTS rate there. The main product lines are in the India to UK import duty guide; check any other code on the UK Trade Tariff.
Why didn't black tea or mango duty fall?
Because there was nothing to cut. The UK charged 0% on black tea and fresh mango from every country before the deal. CETA set India's rate at 0% too, so the line counts towards the 99% but saves nothing.
- Mango, fresh or dried (0804500040): 0% third-country duty since 1 January 2021, and 0% under CETA from 15 July 2026.
- Black tea in packs of 3 kg or less (0902300000) and black tea in larger packs (0902400000): 0% for every country, before and after.
- Spices and condiments: turmeric, whole black pepper, whole cumin and mango chutney were already 0%. Ground black pepper has a 4% standard rate, and India could already pay 0% under DCTS.
- Home and kitchen: hand-made paper, copper cookware, brass ornaments, steel kitchenware and wooden furniture were already 0%.
Green tea is the closest call. In packs of 3 kg or less it has a 2% standard rate, but India could already pay 0% under DCTS, and bulk green tea was 0% for everyone. So no tea line moved for an importer already claiming DCTS.
For these goods, landed cost moves with the crop, freight, packaging and the exchange rate, not with customs duty.
Were Indian shoes and toys already duty-free before the deal?
Some were, which is why a headline "4% to 0%" can mislead. Before CETA, India was one of only two countries in DCTS Standard Preferences, alongside Indonesia. Outside India's graduated chapters, Indian goods could enter at the DCTS rate, which was often 0%.
- Women's ankle-covering footwear with leather uppers (6403919800): standard rate 4%, DCTS 0%. India was not excluded, because the chapter 64 graduation applies to Indonesia only.
- Toys put up in sets or outfits (9503007000): standard rate 4%, DCTS 0% since 19 June 2023.
- Crushed or ground chilli (0904220090): standard rate 4%, DCTS 0%.
- Coffee or tea makers (8516710000): standard rate 2%, DCTS 0%.
For an importer already claiming DCTS on these lines, CETA changed nothing yet. It matters from 15 July 2028, when India leaves DCTS and CETA becomes what keeps them at 0%. Until 14 July 2028 either scheme can be claimed, but GOV.UK says the two sets of proofs of origin "are not interchangeable": neither a DCTS origin declaration nor a Form A can support a CETA claim, and a CETA proof cannot support a DCTS claim. If you already claim DCTS at 0%, you can carry on until 14 July 2028, but ask suppliers before then for CETA proofs of origin so there is no gap from 15 July 2028.
| Date | What happens |
|---|---|
| 19 June 2023 | DCTS begins; India's rates suspended on chapters including 42, 63 and 71 |
| 6 May 2025 | Deal concluded |
| 24 July 2025 | Deal signed |
| 1 January 2026 | New graduation list, to 31 December 2028, adds woven clothing (62) for India |
| 15 July 2026 | CETA in force: 0% on category A lines for Indian-origin goods |
| 15 July 2027 | First yearly UK-India exchange of data on CETA use is due to start |
| 14 July 2028 | DCTS transition for India ends |
| 15 July 2028 | India leaves DCTS; CETA becomes the only preference route |
More dates, including the time limit for claiming back duty, are on the UK-India trade deal key dates page.
Which goods are excluded from the UK-India trade deal?
GOV.UK says the deal "excludes domestic sectors from liberalisation, such as sugar, milled rice, pork, chicken, and eggs". In the UK schedule these are category U lines. The UK Trade Tariff shows no India preference on them.
The table adds two lines buyers often confuse with the exclusions: brown basmati, which was already 0% with a certificate of authenticity, and ghee, which is now 0% but blocked by food rules.
| Product | UK code | Duty on Indian goods now | The catch |
|---|---|---|---|
| Milled basmati rice | 1006309992 | £121 per 1,000 kg | 0% only inside India's licensed quota (054117) |
| Cane or beet sugar | 1701999000 | £35 per 100 kg | 0% only inside India's licensed quota (054321) |
| Husked (brown) basmati | 1006201713 (parboiled) or 1006209813 (other) | 0% | Already 0% before the deal, but the basmati code needs a certificate of authenticity (document A022) |
| Ghee (butterfat) | 0405901000 or 0405909000, by fat and water content | 0% under CETA | Indian dairy is non-compliant and liable to detention |
India has its own 0% non-preferential quotas for milled rice and sugar, but each needs an AGRIM import licence.
Ghee shows that a 0% rate is not market access. CETA takes its £193 per 100 kg standard duty to 0%. But the FSA and Food Standards Scotland say India has no approved veterinary residue plan for dairy. Indian dairy, and composite foods containing it, "would be considered non-compliant and subject to detention at the border".
What does the trade deal not change?
For a UK buyer of goods, CETA changes the customs duty, not the rules the goods must meet. GOV.UK says "there is nothing in this agreement that will compromise the UK's high food standards". Imports must still meet the same UK food safety and biosecurity standards.
| Rule | After 15 July 2026 |
|---|---|
| Import VAT | Unchanged: charged on customs value, duty and costs to the first UK destination |
| Food standards | Unchanged: same UK food safety and biosecurity standards |
| Checks on high-risk foods | FSA: high-risk food and animal-product processes "are not affected" |
| Indian dairy, including ghee and foods with dairy ingredients | Still non-compliant and liable to detention, including composite foods such as biscuits made with milk |
| Product safety and labelling | Unchanged UK rules for footwear, toys, ceramics, electricals and textiles |
| VAT on biscuits | Set by VAT rules: chocolate sandwich biscuits zero-rated, chocolate-coated ones standard-rated |
The FSA says "all rice from India is considered High Risk Food Not of Animal Origin", with 5% physical and identity checks. The UK Trade Tariff also requires a CHED-D health entry document for Indian turmeric, with exceptions including consignments of 30 kg or less. This food control has applied since at least March 2024 and is not a duty.
How does a UK buyer get the 0% rate?
The rate is not automatic. The importer claims it on each declaration, backed by proof that the goods are Indian under the CETA rules of origin. The full mechanics are in our guide to the trade agreement for UK importers.
- 1
Find the 10-digit code
Classify the product on the UK Trade Tariff with your customs agent. A wrong code means a wrong rate and origin rule.
- 2
Compare three rates
Read the third-country rate, the DCTS rate and the "Tariff preference" for India. No India preference means CETA cannot help; a 0% standard rate means nothing to claim.
- 3
Check the origin rule
Ask the exporter to confirm the Annex 3A rule is met: fruit and spices wholly obtained in India, clothing a change of tariff heading plus minimum value content. Goods bought in China and repacked in India do not qualify.
- 4
Agree the proof of origin
Use an origin declaration by the exporter or producer, a certificate of origin from an Indian issuing authority, or importer's knowledge. Proofs are valid for 12 months, in English. Consignments of £1,000 customs value or less need none, unless split to stay under it.
- 5
Brief your customs agent
The declaration carries origin IN, the CETA preference code in the 300 series and a document code: 9001 for an origin declaration, N954 for a certificate, U112 for importer's knowledge. Agree the code for a DGFT self-declared certificate with your agent.
- 6
Plan the non-duty checks
Pre-notify high-risk foods on IPAFFS, check product safety and labelling, and account for import VAT (postponed VAT accounting if VAT-registered).
- 7
Keep the records
Keep the declaration, proof and supporting records for at least four years from import. Exporters and producers keep theirs for five.
- 8
Claim back missed duty
Paid full duty since 15 July 2026 by mistake? The agreement sets a minimum of one year, but UK law allows a claim within three years of the date HMRC accepted the import declaration, with a valid proof of origin. See how to reclaim import duty under the deal.
There is no CETA-specific HMRC registration for importers: the registration in DBT's June 2026 announcement is for UK exporters sending goods to India. You still need the GB EORI number every UK importer needs. If you buy through a merchant exporter such as Britbasket, ask before shipment which proof of origin will travel with the invoice.
Questions buyers ask
Will Indian tea be cheaper because of the trade deal?
Not because of duty. Black tea was 0% before and after 15 July 2026, in any pack size. Packed green tea has a 2% standard rate, but Indian green tea could already enter at 0% under DCTS. Tea prices will move with the crop, freight, exchange rates and margins.
Did the deal cut duty on Indian mangoes?
No. Mango (0804500040) has carried 0% duty for every country since 1 January 2021. CETA set India's rate at 0% too, so nothing changed.
Is basmati rice included in the UK-India trade deal?
Only partly. Milled rice, including milled basmati, is excluded and still pays £121 per 1,000 kg, unless it enters inside India's licensed 0% quota with an AGRIM import licence. Husked (brown) basmati was already 0% before the deal, with a basmati certificate of authenticity.
Can I import ghee from India now that the duty is 0%?
The duty on ghee is 0% under CETA, but the FSA and Food Standards Scotland say Indian dairy, including composite foods containing dairy, would be considered non-compliant and subject to detention at the border. India has no approved veterinary residue plan for dairy, and a 0% tariff does not change that.
Do UK importers need to register with HMRC to get the tariff cuts?
No. Beyond the GB EORI number every importer needs, there is no CETA registration. The HMRC registration mentioned in DBT's June 2026 announcement is for UK exporters sending goods to India. UK importers claim with an Indian origin declaration, a certificate of origin or importer's knowledge, entered on the import declaration by their customs agent.
Rahul
Director, BRITBASKET PRIVATE LIMITED
Britbasket exports from India to UK wholesale, retail and foodservice buyers, and has cleared shipments into the UK by air and by sea. Registered in India: CIN U47220HR2025PTC128831, GSTIN 06AANCB2770Q1Z2, IEC AANCB2770Q. About the company
Sources
- GOV.UK (DBT): UK-India trade deal: conclusion agreement summary (updated 15 July 2026)
- GOV.UK: Historic UK-India Free Trade Agreement is now in effect (17 July 2026)
- DBT: Impact assessment of the free trade agreement between the UK and India (updated 9 March 2026)
- DBT: UK-India CETA Annex 2A, Schedules of tariff commitments for goods (July 2025)
- DBT: UK-India CETA Appendix 2A-b, Schedule of tariff commitments of the United Kingdom (July 2025)
- DBT: UK-India CETA Chapter 3, Rules of origin (July 2025)
- HMRC Trade Tariff: India Origin Reference Document v1.0, Article 19(3) footnote (13 January 2026)
- legislation.gov.uk: SI 2020/1457, Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020, regulation 16
- DBT: The countdown begins: UK-India FTA enters into force on July 15th (17 June 2026)
- PIB Backgrounder (PIB Delhi): India-UK CETA Comes into Effect: Strengthening Bilateral Trade and Investment (15 July 2026)
- FCDO and DBT: DCTS goods graduation from 19 June 2023
- FCDO and DBT: DCTS goods graduation from 1 January 2026 to 31 December 2028 (30 September 2025)
- FCDO and DBT: Country graduation from the Developing Countries Trading Scheme: India (4 September 2026)
- FSA and FSS: Joint Section 42 advice on the UK-India free trade agreement (updated 22 September 2026)
- GOV.UK: Joint statement of the 16th meeting of the India-UK JETCO (12 October 2026)
- ICC: Incoterms 2020 rules (DAP and DDP)
- HMRC: Incoterms (customs valuation guidance)
- HMRC: Working out the VAT value using the customs value of imported goods (updated 26 September 2025)
- HMRC: Delivery costs to include in the customs value (updated 15 April 2026)
- HMRC: VAT Notice 701/14, Food products (updated 8 June 2026)
- Bank of England: Database, series XUDLBK97, Indian rupee per pound (read 30 October 2026)
- UK Trade Tariff: black tea 0902300000 (checked 30 October 2026)
- UK Trade Tariff: mango 0804500040 (checked 30 October 2026)
- UK Trade Tariff: natural honey 0409000090 (checked 30 October 2026)
- UK Trade Tariff: sandwich biscuits 1905319100 (checked 30 October 2026)
- UK Trade Tariff: women's leather ankle footwear 6403919800 (checked 30 October 2026)
- UK Trade Tariff: toys put up in sets 9503007000 (checked 30 October 2026)
- UK Trade Tariff: milled basmati rice 1006309992 (checked 30 October 2026)
- UK Trade Tariff: butterfat (other) 0405909000 (checked 30 October 2026)
- UK Trade Tariff: butterfat of 99.3% fat or more 0405901000 (checked 30 October 2026)
- UK Trade Tariff: earthenware tableware 6912002510 (checked 30 October 2026)
- UK Trade Tariff: turmeric 0910300000 (checked 30 October 2026)
- UK Trade Tariff API: turmeric 0910300000 as at 1 June 2024, India CHED-D measure from 7 March 2024 (checked 30 October 2026)
- UK Trade Tariff: whole black pepper 0904110010 (checked 30 October 2026)
- UK Trade Tariff: crushed or ground pepper 0904120000 (checked 30 October 2026)
- UK Trade Tariff: husked basmati, parboiled 1006201713, certificate A022 (checked 30 October 2026)
- UK Trade Tariff: husked basmati, other 1006209813, certificate A022 (checked 30 October 2026)
- UK Trade Tariff: commodity search for the other codes quoted (checked 30 October 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.
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