India notifies rules for UK FTA vehicle import benefits ahead of July 15 rollout
India has finalized procedures for importing vehicles from the UK under a new trade agreement, offering significant tariff reductions. The policy sets annual quotas and specific eligibility criteria for manufacturers and authorized dealers.
Why it matters
The agreement marks a major shift in trade relations between India and the UK, potentially lowering costs for premium vehicle imports.
India has notified the procedure for importers to claim quota-based tariff concessions on vehicle imports from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into effect on July 15.Under the agreement, customs duties on eligible UK vehicle imports will be significantly reduced from about 110 per cent to 10 per cent, subject to annual tariff-rate quotas (TRQs).Who can apply and what are the conditions?The Directorate General of Foreign Trade (DGFT) said only Original Equipment Manufacturers (OEMs) and their authorised dealers or channel partners will be eligible to apply for tariff-rate quotas.To avail the concessional duty, importers must:Produce a Certificate of Origin issued by UK authorities at the time of customs clearance.Submit a pre-purchase agreement from a UK-based OEM specifying the number of vehicles to be supplied during the TRQ year.Obtain a TRQ Certificate, which will remain valid for up to 12 months or until…
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