The Central Board of Indirect Taxes & Customs (CBIC) has notified tariff rules for the determination of the origin of goods under India-UK trade agreement. It is coming into effect from July 15. The deal liberalises 99 per cent of UK tariffs and 90 per cent of Indian tariffs.

According to ‘Customs Tariff (Determination of Origin of Goods under Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026’, each Party shall provide that a good is originating, if it is wholly obtained or produced entirely in the territory of one or both of the Parties. The goods should be produced entirely in the territory of one or both of the Parties, exclusively from originating materials; or produced entirely in the territory of one or both of the Parties using non-originating materials.

Further, each Party shall provide that a claim for preferential tariff treatment is based on an applicable proof of origin. For importers in the United Kingdom, an applicable proof of origin shall be:an origin declaration completed by the exporter or producer; a certificate of origin issued by an issuing authority; or the importer’s knowledge that the good is originating. For importers in India, an applicable proof of origin shall be an origin declaration completed by the exporter or producer. Each Party shall provide that an origin declaration or a certificate of origin with 12 months validity.

Signed on 24 July 2025, the UK-India trade deal is forecast to increase bilateral trade by £25.5 billion annually in the long run, while boosting India’s GDP by £5.1 billion and the UK’s GDP by £4.8 billion, strengthening supply chains, supporting jobs and opening new opportunities for businesses across both countries.

The UK has also agreed to extend the benefits under the Double Contributions Convention (DCC) for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months. They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India. This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes. This is in line with the arrangements the UK holds with other countries such as Korea, Japan, and Canada. This will be achieved through the UK-India Double Contributions Convention Agreement, which will enter into force at the same time as the UK-India FTA.

According to a statement by the UK government, businesses in both countries will benefit from improved market access, lower tariffs, streamlined customs and stronger support for digital trade, making day-to-day trade more predictable and especially beneficial for small and medium-sized enterprises (SMEs).  India will remove or reduce tariffs on 90 per cent of its tariff lines for UK products; 64 per cent of products will become duty-free immediately, covering about £1.9 billion of current UK exports. Over time, 85 per cent of products will become duty-free, the statement said.

Published on July 4, 2026