UK–India CETA entered into force on 1 July 2026, reducing or eliminating duty on thousands of Indian-origin goods. But the savings are not evenly distributed. Some industries see dramatic reductions while others see little change.
Here is a practical guide to where the biggest opportunities lie, by HS chapter.
How to read this guide
MFN rate is what you pay without any trade agreement — the standard UK import duty for goods from countries without preferential access.
CETA rate is the preferential rate available from 1 July 2026 for qualifying Indian-origin goods with valid proof of origin. Rates vary by specific 10-digit commodity code. Always check your exact code on GOV.UK Trade Tariff before planning your supply chain around projected savings.
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Chapters 61 and 62 — Knitted and woven garments
MFN rate: 12% CETA direction: staged reduction, targeting near-zero over 5 years
Apparel is one of the highest-value categories for CETA savings. Indian garments from Tiruppur (knitwear), Surat (synthetic fabrics), and Ludhiana (wool products) face 12% MFN duty — the same rate that previously made Indian supply uncompetitive against Bangladesh, which enters at 0% under DCTS Enhanced Preferences.
CETA closes that gap. Indian garments become significantly more price-competitive once preference is claimed correctly.
Origin watch: garments must be manufactured in India from fabric stage onwards — typically a two-stage transformation rule. Fabric cut and sewn in India from Chinese fabric may not qualify. Check Annex 3 for your specific code.
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Chapter 42 — Leather goods, handbags, travel goods
MFN rate: 3.5%–3.7% CETA rate: 0%
India is the world's second-largest leather goods producer. The 3.5% duty is modest in percentage terms but on high-value goods — premium luggage, accessories, leather goods at £200+ per unit — the absolute saving is meaningful at volume. Full elimination under CETA is a clean win for this sector.
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Chapter 64 — Footwear
MFN rate: 16.9% (leather uppers) to 17% (sports shoes) CETA direction: staged reduction
Footwear carries some of the highest rates in the UK tariff schedule. India is a major exporter of leather shoes and casual footwear. Even a partial reduction in the early years of CETA represents a substantial cash saving for volume importers. Check your specific code — rates differ meaningfully between leather, rubber-soled, and sports footwear.
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Chapters 84 and 85 — Machinery and electrical equipment
MFN rate: 0%–6.5% (most codes already at 0%) CETA saving: limited
Most machinery and electrical goods from India already attract 0% MFN duty, so CETA brings minimal additional financial saving here. The exceptions are certain electrical components sitting at 3%–6.5% where CETA preference is useful. The broader benefit for this sector is supply chain confidence and the platform for future tariff negotiations.
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Chapter 09 — Coffee, tea, spices
MFN rate: 0% CETA saving: none
Tea, spices, and most food-grade agricultural products from India are already zero-rated under the UK tariff. CETA adds no duty saving. For food importers from India, the compliance focus is on certificates — phytosanitary, health, IPAFFS pre-notification — not duty rates.
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Chapter 30 — Pharmaceuticals
MFN rate: 0% CETA saving: none
Pharmaceutical products are already zero-rated. India is the world's largest generic drug exporter and a major NHS supplier, but duty is not a cost driver for this sector. Compliance focus is on MHRA licensing, Good Manufacturing Practice standards, and cold-chain logistics.
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Where CETA will not help: anti-dumping duties
Anti-dumping duties (ADD) are levied in addition to MFN tariff and are not reduced by CETA preference. If your goods are subject to ADD — common for certain Indian steel products, chemicals, and textiles — you continue paying the ADD even with a valid CETA declaration.
Example: MFN = 4%, ADD = 30.5% → total effective duty = 34.5%. CETA preference reduces the 4% to 0%, but the 30.5% ADD remains. Always verify whether ADD applies to your commodity before projecting savings.
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Check your specific savings
Use the UK Trade Tariff at trade-tariff.service.gov.uk and search your 10-digit code. Under the Duties tab, look for "India" in the preferential rates section.
If you import at volume and want a CETA savings analysis across your product range, our customs team can run this as part of a pre-shipment review. Get in touch.