India-U.K. trade pact rules notified: Certificate of origin key for duty benefits from July 15
The Finance Ministry has issued rules for determining the origin of goods under the India-U.K. Comprehensive Economic and Trade Agreement (CETA), which will take effect from July 15, 2026. A notification to this effect was released by the ministry.
A certificate of origin is a crucial document for exporters to claim duty benefits under India's trade agreements with partner countries. It helps ensure that products from third countries do not wrongly receive preferential tariff benefits meant for goods originating in the signatory nations.
The Central Board of Indirect Taxes and Customs (CBIC) stated in the notification that entities authorised by India and the U.K. are permitted to issue these certificates in their respective countries.
The rules, formally called the 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, will come into force on July 15, 2026.
CETA secures duty-free access for 99% of India's exports to the U.K., covering nearly the entire trade basket. This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, as well as fast-growing sectors like engineering goods, auto components, and organic chemicals.
Two-way trade between India and the U.K. grew 8.62% to $25.12 billion in the 2025-26 fiscal year, up from $23.13 billion in 2024-25. India's exports stood at $13.44 billion, while imports were $11.68 billion, resulting in a trade surplus of $1.76 billion for India.
Commenting on the notification, Rajat Mohan, Managing Partner at AMRG Global, said: “The notification prescribing the Rules of Origin under the CETA is a crucial step towards operationalising the pact in a transparent and effective manner.” He added that while the agreement offers significant tariff advantages, these benefits will now be available only to goods that genuinely satisfy the prescribed origin criteria. The framework strengthens the integrity of the free trade agreement by preventing misuse through third-country routing and ensuring that concessions accrue only to legitimate manufacturers and exporters. Mohan advised businesses to proactively review their supply chains, value addition, sourcing patterns, and documentation, as compliance with the rules of origin will be as important as the tariff concessions themselves.
