UK–India Trade Agreement · CETA
UK–India Trade Deal July 2026: What Traders Must Do Now
The UK–India trade deal is live. The Comprehensive Economic and Trade Agreement (CETA) between the United Kingdom and India entered into force on 15 July 2026 — and preferential tariff rates are now available for the first time.
For UK exporters and importers, this is not something to watch from the sidelines. The tariff reductions are significant, but they are not automatic. Businesses that understand the rules from day one will have a clear commercial advantage over those who catch up later.
Here is what you need to know.
What Changed on 15 July 2026
The UK–India CETA is the UK's most ambitious bilateral trade agreement since Brexit. It opens around 90% of Indian tariff lines to UK goods — many at zero duty from day one, others on a staged reduction schedule over 10 to 15 years.
For UK exporters, the headline changes include:
- Whisky and gin: duty cut from 150% to 75% on day one, falling to 40% by year ten.
- Lamb and cod: tariff-free from day one.
- Chocolate, biscuits and soft drinks: tariff-free after ten years of staging.
- Cars: reduced from up to 110% over ten years for internal combustion engines.
For UK importers currently sourcing from India, the picture is more nuanced — and widely misunderstood. The UK's Developing Countries Trading Scheme (DCTS) is not switched off by the CETA: India remains a DCTS Standard Preferences country, and from 15 July the two schemes run in parallel. The exception is goods graduation: since 1 January 2026, and separately from the trade deal, DCTS preferences have been suspended for India on specific product categories — including textiles, apparel, leather goods and certain chemicals — until 31 December 2028. For those graduated goods, the CETA restores a preference route that has been unavailable for six months. For everything else, importers can choose whichever scheme gives the better rate. The full list of graduated goods is set out in the DCTS goods graduation notice on GOV.UK.
Not all goods are covered. Some basic food products — including sugar, milled rice, pork, chicken and eggs — remain outside the agreement and continue to attract standard duties.
Why This Matters for UK SMEs
India is already the world's fifth largest economy, with GDP growth forecast above 6% for at least the next five years. Total UK–India trade reached £47.9 billion in the four quarters to Q4 2025, up 10% year on year. UK exports to India alone totalled £19.3 billion in the same period — up 15.4%.
The CETA aims to double bilateral trade by 2030. For UK SMEs that export to India, or source goods from India, the agreement creates a material commercial opportunity — but only for businesses that know how to use it correctly.
Three Things UK Traders Need to Do Now
1. UK exporters: register with HMRC before you ship
If you intend to enable preferential tariff rates for your goods exported to India, you must register with HMRC before making your first origin declaration. Registration is free and done once, but it must happen before the first shipment — not after.
HMRC opened registration in January 2026. If you have not yet registered, do it now. Your Indian customer cannot claim the preferential rate without a valid origin declaration from you, which means they will pay full Most Favoured Nation (MFN) duties instead.
You will need your EORI number to register. Full guidance is available on GOV.UK: Register to complete origin declarations under the UK–India Free Trade Agreement.
2. Check whether your goods actually qualify
Reduced tariffs only apply to goods that meet the CETA's rules of origin. This means your product must genuinely originate in the UK — either because it was wholly produced here, manufactured entirely from UK-originating materials, or sufficiently processed in the UK according to the product-specific rules (PSRs) in Annex 3A of the agreement.
Rules of origin are the most complex part of the CETA to apply in practice. The test varies by commodity code, and the documentation requirements are specific. Getting this wrong, and claiming preference incorrectly, can result in back-duty demands, interest charges and penalties for your Indian customer.
3. UK importers: check which preference route applies to your goods
Don't assume you must switch to the CETA. Work through three questions:
Is your commodity graduated? Check the DCTS row for your commodity code on the UK Trade Tariff. If it shows "excluding India," DCTS preferences are suspended (1 January 2026 to 31 December 2028) and the CETA is your only preference route.
If not graduated, compare the rates. Both schemes remain available. The CETA phases many tariff lines down over several years, so it is not always 0% from day one — the DCTS rate may match or beat it in the early years.
If the rates are equal, it's a paperwork decision. The two schemes use different rules of origin and different proofs of origin, and a single claim must be based on one or the other — never mixed. Under the CETA, UK importers have three options: an origin declaration from the Indian exporter, a certificate of origin from an authorised Indian body, or importer's knowledge (only where you genuinely hold the evidence — HMRC has flagged widespread problems with knowledge-based claims under other agreements). If your existing DCTS process works and the rate is the same, you are not required to change anything.
Summary: Key Dates and Actions
- Now — Register with HMRC if you are a UK exporter planning to use the CETA.
- Now — Contact your Indian supplier to confirm they can provide CETA-compliant proof of origin.
- 15 July 2026 — CETA in force; preferential rates available from this date.
- 15 July onwards — For each commodity you import from India, check whether DCTS or CETA gives the better route, and ensure your proof of origin matches the scheme you claim under.
Frequently Asked Questions
Does the UK–India trade deal apply to services as well as goods?
Yes, though this article focuses on goods trade. The CETA includes chapters on services, financial services, digital trade and business mobility. UK service exporters — particularly in telecoms, construction and financial services — will find specific provisions relevant to them in the agreement text.
What if I export to India but have not registered with HMRC yet?
You can still export to India without registering, but your Indian customer will not be able to claim the preferential tariff rate under the CETA. They will pay the full MFN duty instead, which for many products is significantly higher. Registration is free, done once, and must be completed before your first CETA shipment. If you intend to use the agreement, register now.
I currently import from India using DCTS preferences. Do I need to do anything?
Possibly, but not necessarily. India remains in the DCTS, so for most goods both schemes are now available and you can continue claiming DCTS if it suits your supply chain. The exception is graduated goods (certain textiles, apparel, leather and chemicals), where DCTS preferences were suspended from 1 January 2026 — for those, the CETA is now your only preference route and you will need CETA-compliant proof of origin from your supplier. Check your commodity codes on the UK Trade Tariff to see which applies, and speak to your customs agent or broker before changing your declarations.
Are all goods covered by the UK–India CETA?
No. Some products — including sugar, milled rice, pork, chicken and eggs — are excluded from the agreement and continue to attract standard MFN duties. Other products are subject to staged tariff reductions over 10 to 15 years rather than immediate zero-duty treatment. Check the tariff schedule for your specific commodity codes.
Where can I find the full agreement text and tariff schedules?
The full UK–India CETA text, including Annex 3A (product-specific rules of origin) and the tariff schedules, is available on GOV.UK. Now the agreement is in force, preferential rates are also visible on the UK Trade Tariff.
Want to understand exactly how the CETA applies to your business?
Knowing the deal exists is one thing. Knowing how to use it correctly — for your specific goods, your commodity codes and your supply chain — is another.
Our half-day online training course, Using the UK–India Trade Agreement, covers everything UK exporters and importers need to work through in practice: rules of origin, HMRC registration, origin declarations, preference claims, compliance obligations, and the DCTS and how it interacts with the CETA.

