Article
DAP vs DDP: Which Incoterm Should You Choose
Two of the eleven Incoterms 2020 rules look almost identical on paper. Under both DAP and DDP, the Seller arranges and pays for transport all
10 July 2026
UK–India Trade Agreement · CETA
The UK–India trade deal has an implementation date. The Comprehensive Economic and Trade Agreement (CETA) between the United Kingdom and India will enter into force on 15 July 2026 — giving UK businesses just weeks to prepare before preferential tariff rates become 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.
The UK–India CETA is the UK's most ambitious bilateral trade agreement since Brexit. When it enters force, it will open 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:
For UK importers currently sourcing from India, the picture is equally important. India's Developing Countries Trading Scheme (DCTS) enhanced preferences — which many UK importers have been using — are replaced by the CETA when the agreement enters force. You will need to transition to CETA preference codes and obtain the correct proof of origin from your Indian supplier.
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.
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.
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.
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.
If you currently import goods from India using DCTS preferences, those preferences no longer apply once the CETA enters force. From 15 July, you will need to claim preference under the CETA instead, using the correct CETA preference codes on your customs declaration in the Customs Declaration Service (CDS).
You will also need a new form of proof of origin from your Indian supplier — either an origin declaration or a certificate of origin. The GSP-style Form A or REX declarations used under the DCTS are not valid under the CETA.
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.
You can still export to India without registering, but from 15 July 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 from day one, register now.
Yes. From 15 July, DCTS enhanced preferences for India are replaced by the CETA. You will need to claim preference under the CETA using the correct preference codes, and you will need a CETA-compliant proof of origin from your Indian supplier. Speak to your customs agent or broker to ensure your import declarations are updated.
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.
The full UK–India CETA text, including Annex 3A (product-specific rules of origin) and the tariff schedules, is available on GOV.UK. Once the agreement is in force, preferential rates will also be visible on the UK Trade Tariff.
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 transition.
Upcoming dates available: 9 July 2026 · 6 August 2026
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