CETA is live. But are you claiming it correctly?
UK–India CETA entered into force on 1 July 2026. For the first time, eligible Indian-origin goods can enter the UK at preferential (lower) duty rates. But claiming those savings is not automatic. You need proof of origin from your Indian supplier — and that means understanding REX statements.
What is a REX statement?
REX stands for Registered Exporter. Under CETA rules of origin, Indian suppliers who want to issue origin declarations must be registered in India's REX system, administered by the Central Board of Indirect Taxes and Customs (CBIC).
A REX statement is a declaration the supplier adds to the commercial invoice or a separate document. It reads:
> *"The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of Indian preferential origin."*
The supplier's REX registration number must accompany this declaration for shipments over £5,000. Below that threshold, any Indian supplier can make a simple invoice declaration without being REX-registered.
What UK importers need to do
Before your shipment arrives:
- · Confirm your supplier is REX-registered. If they are not, they cannot issue a valid CETA origin declaration for consignments over £5,000 — and you cannot claim the preferential rate on the CDS entry.
- · Verify the goods genuinely originate in India. CETA rules of origin require sufficient processing in India. Goods assembled in India from Chinese components may not qualify.
- · Get the REX declaration before goods arrive at port. You cannot retroactively claim preference after the CDS declaration is submitted.
On the CDS entry:
Your customs team needs the correct preference code on the import declaration. Without it, the system defaults to the standard MFN duty rate even if the goods would otherwise qualify.
After clearance:
Retain origin documentation for 4 years. HMRC conducts post-clearance audits, and if you cannot produce the supplier's REX declaration you may face recovery of the full MFN duty plus interest.
What if my supplier is not REX-registered?
If your Indian supplier is not in the REX system you have two options:
- · Ask them to register. REX registration is free and processed through the CBIC portal. Most established Indian exporters are already registered or registering following CETA ratification.
- · Use an invoice statement for shipments under £5,000. Small consignments do not require REX registration — a standard supplier declaration on the commercial invoice suffices.
For consignments over £5,000 where the supplier cannot provide REX documentation, you pay the standard MFN rate. There is no workaround.
Common mistakes UK importers make
Assuming preference is automatic. CETA does not apply automatically. Your customs team must actively request the preference on the CDS declaration. If not instructed, you pay the full MFN rate regardless of your documentation.
Accepting a generic invoice declaration. A supplier writing "these are Indian goods" is not a REX statement. The declaration must follow the CETA format and include the REX number.
Not checking the rules of origin for their specific product. CETA Annex 3 sets origin criteria product by product. For some HS chapters the rule is "wholly obtained in India". For others it is "sufficient processing" defined by a tariff heading change or value-added test. Verify this for your specific commodity code before projecting savings.
How Taurex handles CETA preference for your shipments
When you book a shipment with Taurex, our customs team checks your commodity code against CETA Annex 3, instructs you on exactly what documentation to request from your supplier, files the correct preference code on your CDS entry, and flags any origin concerns before goods arrive at port.
CETA savings are real — but only if claimed correctly. Get in touch to review your India supply chain and calculate your annual duty saving.