Finance Ministry Notifies Rules of Origin for India-UK FTA, Effective July 15

New rules define eligibility for preferential tariff benefits under the India-UK Comprehensive Economic and Trade Agreement (CETA).

The Finance Ministry has issued the Rules of Origin for goods under the India-UK Comprehensive Economic and Trade Agreement (CETA), according to a notification. The rules will come into force on July 15, 2026.

A certificate of origin remains a mandatory document for exporters seeking to claim duty concessions available under India's trade agreements with partner countries. The certification establishes the origin of goods and is intended to ensure that products from third countries do not improperly receive preferential tariff benefits available under bilateral trade agreements.

The Central Board of Indirect Taxes and Customs (CBIC), through a notification, stated that entities authorised by India and the United Kingdom are permitted to issue certificates of origin within their respective countries.

The notification states: “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.”

Under the CETA, duty-free access is available for 99 per cent of India's exports to the UK, covering nearly the entire trade basket.

The agreement is expected to create opportunities for labour-intensive industries, including textiles, marine products, leather, footwear, sports goods, toys, and gems & jewellery, as well as sectors such as engineering goods, auto components, and organic chemicals.

Two-way trade between India and the United Kingdom increased by 8.62 per cent to $25.12 billion in 2025-26, comprising exports of $13.44 billion and imports of $11.68 billion, compared with $23.13 billion in 2024-25. India recorded a trade surplus of $1.76 billion during the last fiscal year.

Commenting on the notification, Rajat Mohan, Managing Partner, AMRG Global, said the notification prescribing the Rules of Origin under the CETA is a crucial step towards operationalising the agreement.

“While the agreement offers significant tariff advantages, these benefits will now be available only to goods that genuinely satisfy the prescribed origin criteria. The framework strengthens the integrity of the FTA by preventing misuse through third-country routing and ensuring that concessions accrue only to legitimate manufacturers and exporters,” he said.