The UK-India Free Trade Agreement, known as the UK-India Comprehensive Economic and Trade Agreement (CETA), came into force on 15 July 2026. For UK businesses trading with one of the world’s fastest growing major economies, this marks a significant opportunity to reduce costs and open up new commercial routes.
If you’re already importing from or exporting to India, this agreement could deliver meaningful tariff savings. If you haven’t previously considered the Indian market, now is a good time to start.
Why this matters
India is one of the largest and fastest growing economies in the world. Total UK-India trade in goods and services reached £47.9 billion in the year to the end of 2025, up 10% on the previous year. The new agreement removes or reduces tariffs on 90% of tariff lines, covering 92% of current UK exports to India, with 64% becoming duty free immediately and rising to 85% within a decade.
In practical terms, lower import duties can mean:
- Reduced landed costs
- Improved profit margins
- More competitive pricing
- Access to new customers and suppliers
- Greater supply chain diversification
A critical step many exporters need to take
One of the most important requirements under the new agreement is that UK producers and exporters must register with HMRC before they can issue origin declarations for exports to India. This is a free, one-time registration using your EORI number.
Without this registration, any origin declaration you issue will be rejected, and your customer in India won’t be able to claim the preferential tariff rate. If you haven’t registered yet, this should be your first action before shipping under the agreement.
How the process works in practice
Once registered, exporters complete an origin declaration confirming the goods meet the agreement’s Rules of Origin, then email it to their Indian customer, copying in India’s customs authority from a registered email address. The declaration is checked against the HMRC-shared database, and a Unique Reference Number is issued, which the importer then quotes on their customs paperwork. Declarations are valid for 12 months and records should be kept for five years.
It’s a straightforward process on paper, but small errors, an unregistered email address, an incorrect subject line, or the wrong commodity code, can mean an automatic rejection and a delay to your shipment.
Where the biggest opportunities are
Tariff reductions vary by sector, and the detail matters. Some examples:
- Whisky and gin tariffs drop from 150% to 75% immediately, falling further to 40% over ten years
- Automotive tariffs fall from over 100% to 10% under an agreed quota
- Aerospace parts move from up to 11% to zero
- Cosmetics tariffs of up to 22% are removed
Sectors best placed to benefit include industrial manufacturing, engineering, automotive, food and drink, cosmetics, and healthcare. These figures are ceilings rather than guarantees, so it’s worth checking how your specific commodity code is treated.
Avoiding the common pitfalls
Businesses most likely to miss out on available savings are usually caught out by one of the following:
- Origin rules being misunderstood or misapplied
- Incomplete supporting documentation
- Missing supplier declarations
- Incorrect commodity codes
- Customs processes that haven’t been aligned with the new requirements
How XPand Logistics can help
Whether you’re already trading with India or considering the market for the first time, our team can support you with:
- International freight forwarding
- Customs clearance services
- Import and export compliance guidance
- Rules of Origin support
- Supply chain planning
- Warehousing and distribution solutions
- Duty and customs process reviews
Looking ahead
This is early days for the agreement, but the direction is clear. Businesses that register correctly and align their supply chains now will be best placed to benefit as trade between the UK and India continues to grow.
Thinking about trading with India?
If you’re looking to import from or export to India, contact XPand Logistics for an initial discussion about your supply chain requirements and customs obligations, contact us.
FAQs
The agreement came into force on 15 July 2026.
Yes. UK producers and exporters must register with HMRC before issuing origin declarations, or their customer in India won’t be able to claim preferential tariffs.
No. Tariff reductions vary by sector and product, with some staged over several years and others subject to quotas. It’s worth checking how your specific goods are treated.
