The Ministry of Finance has officially notified the Rules of Origin under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), paving the way for the landmark trade pact to come into force on July 15, 2026. The new rules establish the framework for determining the origin of goods traded between the two countries, ensuring that only eligible products receive preferential tariff benefits under the agreement.
The notification, issued by the Central Board of Indirect Taxes and Customs (CBIC), introduces the Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026. These rules will become effective from July 15, the same day the trade agreement is scheduled to be implemented.
A key feature of the framework is the Certificate of Origin, an essential document that exporters must obtain to claim reduced or zero customs duties under the trade agreement. The certificate verifies that goods have been manufactured or substantially processed in India or the United Kingdom, preventing products originating from third countries from exploiting the preferential tariff benefits available under the bilateral pact. The notification authorises designated agencies in both countries to issue these certificates.
The implementation of CETA is expected to provide a significant boost to India’s exports by granting duty-free access to 99% of Indian goods entering the UK market, covering nearly the entire export basket. The agreement is expected to particularly benefit labour-intensive sectors such as textiles, leather, footwear, marine products, gems and jewellery, sports goods and toys, while also creating fresh opportunities for high-growth industries including engineering goods, automobile components and organic chemicals.
Trade between India and the United Kingdom has already shown strong momentum. During the 2025–26 financial year, bilateral trade increased by 8.62% to $25.12 billion, compared with $23.13 billion in the previous fiscal year. India’s exports to the UK stood at $13.44 billion, while imports reached $11.68 billion, resulting in a trade surplus of $1.76 billion for India.
Industry experts believe the notification is a crucial milestone in operationalising the agreement while safeguarding its integrity. According to Rajat Mohan, Managing Partner at AMRG Global, the Rules of Origin ensure that tariff concessions are available only to products that genuinely satisfy the prescribed origin criteria, thereby preventing misuse through third-country routing and preserving the credibility of the free trade agreement.
Experts have also advised exporters and manufacturers to review their supply chains carefully before the agreement comes into force. Businesses may need to reassess sourcing strategies, local value addition, manufacturing processes and documentation practices to ensure compliance with the new origin requirements. Failure to meet these conditions could result in products becoming ineligible for preferential tariff treatment despite being exported under the trade agreement.
The notification represents one of the final regulatory steps before the India–UK CETA becomes operational. By combining expanded market access with stricter compliance standards, the agreement is expected to strengthen bilateral trade, improve export competitiveness for Indian manufacturers and deepen economic ties between the two countries over the coming years.
Disclaimer: This report has been editorially prepared using publicly available information and agency inputs. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify critical information from official sources.
Author
About the Author
