Our Bureau
New Delhi
India has approved the import of 642 passenger cars from the United Kingdom under the tariff-rate quota provisions of the India-UK Comprehensive Economic and Trade Agreement (CETA), marking the first allocation since the trade pact came into effect on July 15.
The Directorate General of Foreign Trade (DGFT), under the commerce ministry, cleared applications from seven companies for the remainder of 2026 out of eight companies who had applied.
The government had invited applications in July for preferential-duty imports of fully built passenger cars and goods vehicles from the UK. The 2026 quota was sought on a pro-rata basis following the agreement’s implementation midway through the year.
Under CETA, India has committed to allowing a cumulative 3.78 lakh conventional-engine passenger cars from the UK to enter at concessional customs duties over the first 15 years of the agreement. Automotive tariffs within the agreed quotas are scheduled to fall from as high as 110% to 10% over time.
The tariff-rate quota mechanism permits a specified quantity of imports at lower duties. Only original equipment manufacturers, authorised dealers and channel partners of UK-origin vehicle makers were eligible to apply.
Importers must furnish a valid UK certificate of origin and a DGFT-issued TRQ certificate to claim the concessions. Vehicles imported beyond the quota will continue to attract the applicable customs duty.
The limited initial allocation comes as manufacturers and distributors begin implementing the agreement’s automotive provisions.