With the India-UK trade agreement coming into force in 10 days, the Finance Ministry has notified the rules that will determine the origin of goods eligible for benefits under the Comprehensive Economic and Trade Agreement (CETA).The trade agreement is scheduled to enter into force on July 15. The notification issued by the Central Board of Indirect Taxes and Customs (CBIC) sets out the rules for determining the origin of goods eligible for tariff benefits under the agreement.To claim tariff concessions under Indian trade agreements, exporters must submit a certificate of origin. The document specifies where the product is manufactured, ensuring that goods coming from third countries do not wrongly benefit from the preferential tariff benefits offered under the India-UK trade agreement.The CBIC notification also stated that entities accredited in both India and the UK will be allowed to issue these certificates in their countries.“These rules may be called 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) Tariff Rules, 2026. They will come into force on July 15, 2026,” it said.
Once implemented, CETA will provide duty-free access to 99% of India’s exports to the UK, covering almost the entire export basket.The agreement is expected to create new opportunities for labour-intensive sectors such as textiles, marine products, leather, footwear, sporting goods, toys, gems and jewellery. Fast-growing industries including engineering goods, automotive components and organic chemicals are also expected to benefit.India-UK trade reached $25.12 billion in 2025-26, an increase of 8.62% from $23.13 billion in 2024-25. India’s exports amounted to $13.44 billion, while imports amounted to $11.68 billion during the year, leaving the country with a trade surplus of $1.76 billion.Rajat Mohan, Managing Partner, AMRG Global, said the notification on rules of origin is an important step in putting the agreement into effect in a transparent and effective manner.“While the agreement provides significant tariff benefits, these benefits will now only be available for goods that truly meet specified origin criteria,” he said. “The framework strengthens the integrity of the FTA by preventing abuse through third-country guidance and ensuring that privileges go only to legitimate manufacturers and exporters.”He also added that companies should review their supply chains, sourcing patterns, value addition and documentation, as following rules of origin will be as important as the tariff benefits provided under the agreement.