NEW DELHI : India has invited the first round of applications for the allocation of import quotas for fully-built passenger cars and goods vehicles from the UK under the duty concession provisions of the India-UK Comprehensive Economic and Trade Agreement (CETA).
The Directorate General of Foreign Trade (DGFT) said eligible importers can submit applications from July 21 to August 4 for quota allocations applicable for calendar year 2026.
“New applications for TRQ under India – United Kingdom CETA for CY 2026 are invited from July 21, 2026 up to August 04, 2026,” the DGFT said in a notification.
The India-UK trade agreement, which came into effect on July 15, allows the import of 3.78 lakh conventional-engine passenger cars from the UK at concessional customs duties over the first 15 years of the pact. Under the agreement, tariffs on automotive imports will be reduced from around 110% to 10%, subject to quota limits on both sides.
In the first phase, applications have been invited for the allocation of quotas covering 9,316 passenger vehicles.
Only Original Equipment Manufacturers (OEMs), dealers and channel partners authorised by UK vehicle manufacturers will be eligible to apply for the tariff rate quota (TRQ). Applicants will also have to submit a pre-purchase agreement issued by a UK-based OEM specifying the number of vehicles to be supplied during the quota year.
For passenger cars with engine capacity of up to 1,500 cc, the quota has been fixed at 2,329 units, with the basic customs duty reduced to 50% from 66%.
A similar quota of 2,329 units has been earmarked for petrol vehicles with engine capacity above 1,500 cc but below 3,000 cc, and diesel vehicles with engine capacity above 1,500 cc but not exceeding 2,500 cc. These vehicles will also attract a reduced customs duty of 50% instead of 66%.
For larger vehicles with petrol engines above 3,000 cc and diesel engines above 2,500 cc, the quota has been set at 4,658 units. The import duty for this category has been lowered to 30% from 110%.
The DGFT has also invited applications for 1,164 goods vehicles in the first round. Overall, the quota for fully-built goods vehicles in the first year of the agreement is 2,500 units, with imports under the quota attracting a customs duty of 37% instead of 44%.
