CETA Is Live: What It Means for UK–India Importers

CETA entered into force on 1 July 2026

After years of negotiation, the UK–India Comprehensive Economic and Trade Agreement (CETA) came into force on 1 July 2026. This is the most significant trade agreement the UK has signed since leaving the EU, covering a bilateral trade relationship worth over £42 billion per year.

What changes immediately

Duty reductions apply to a wide range of goods from day one. Key categories:

• · Textiles and apparel: UK import duty reduced from 12% to 0% on most HS chapters 50–63 over a 5-year staging schedule (immediate reduction to 4% from 1 July 2026)
• · Engineering goods (machinery, auto parts): 0–5% reduction applied immediately on HS chapters 84–87
• · Pharmaceuticals: Most finished formulations at 0% immediately
• · Food and agricultural products: Staged reductions — check the UK Global Tariff for your specific commodity code
• · Chemicals: Most industrial chemicals at preferential rates from day one

What you need to claim preference

Preferential duty does not apply automatically. You must:

1. Confirm origin: Goods must originate in India under the CETA rules of origin. For most manufactured goods, the threshold is sufficient processing in India (change of tariff heading or value-added test).
2. Obtain a supplier declaration: Your Indian supplier must provide a REX statement or origin declaration confirming the goods meet the rules of origin.
3. Declare preference on the CDS entry: The customs declaration must reference the CETA preference code. Failing to do this means you pay the standard Most Favoured Nation (MFN) rate.
4. Retain evidence: HMRC can audit preference claims up to 4 years after import. Keep all origin documentation.

What does NOT change

• · VAT: Import VAT is unchanged. Most goods are subject to 20% import VAT on the customs value (CIF). Postponed VAT Accounting (PVA) still applies for VAT-registered importers.
• · Customs declarations: You still need a full CDS import entry for every commercial shipment.
• · SPS / BTOM checks: Agri-food, plants, and animal products still go through Border Target Operating Model checks. CETA does not remove phytosanitary requirements.
• · Anti-dumping duties: Existing anti-dumping measures on specific products (certain steel products, chemicals) are not removed by CETA.

Landed cost example: cotton yarn

For high-volume importers, the savings compound quickly.

Next steps

If you import from India and have not yet reviewed your commodity codes under CETA:

1. Use our HS Code Lookup tool to find your commodity code and check the CETA preferential rate
2. Request a supplier origin declaration from your Indian exporter
3. Contact our customs team to ensure your CDS declarations are claiming preference correctly from your next shipment

We handle the declaration — you keep the saving.