India-UK trade pact: Centre notifies rules for determination of origin of goods

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India-UK trade pact: Centre notifies rules for determination of origin of goods


India-UK trade pact: Centre notifies rules for determination of origin of goods

With the India-UK trade pact set to take effect 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 pact is set to come 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 duty concessions under India’s trade agreements, exporters must show a certificate of origin. The document establishes where a product has been made, ensuring that goods from third countries do not wrongly avail themselves of the preferential tariff benefits offered under the India-UK trade pact.The CBIC notification also said that authorised entities in both India and the UK will be allowed to issue these certificates in their respective countries.“These rules may be 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. They shall come into force on the 15th July, 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 fresh opportunities for labour-intensive sectors such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery. Fast-growing industries including engineering goods, auto components and organic chemicals are also expected to benefit.Trade between India and the UK reached $25.12 billion in 2025-26, an increase of 8.62% from $23.13 billion in 2024-25. India’s exports stood at $13.44 billion, while imports were $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 the Rules of Origin is an important step in putting the agreement into operation in a transparent and effective manner.“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 FTA by preventing misuse through third-country routing and ensuring that concessions accrue only to legitimate manufacturers and exporters,” he said.He also added that businesses should review their supply chains, sourcing patterns, value addition and documentation, as following the Rules of Origin will be just as important as the tariff benefits offered under the agreement.


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