The Central Government has notified the Customs (Administration of Rules of Origin under the Comprehensive Economic and Trade Agreement between the Republic of India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026.
The new framework will come into force from July 15, 2026, providing the legal mechanism for determining whether imported and exported goods qualify for preferential tariff benefits under the trade pact.
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Notification Issued Under Customs Tariff Act
The rules have been notified by the Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs (CBIC), through Notification No. 62/2026-Customs (N.T.), issued under Section 5(1) of the Customs Tariff Act, 1975. The notification lays down the detailed principles governing the origin of goods traded between India and the United Kingdom under the CETA.
Objective of the Rules
The Rules establish the conditions under which goods will be regarded as “originating” in India or the United Kingdom, thereby becoming eligible for preferential customs duty under the bilateral trade agreement.
The framework seeks to ensure that only goods genuinely produced or substantially transformed in either country receive the benefits of reduced or zero customs duty, while preventing misuse of tariff concessions through transshipment or minimal processing.
Three Categories of Originating Goods
The Rules recognise a product as originating if it falls into any of the following categories:
- Goods wholly obtained or produced in India or the United Kingdom;
- Goods produced entirely from originating materials; or
- Goods manufactured using non-originating materials but satisfying the applicable product-specific origin requirements contained in the Rules and annexures.
Detailed Origin Criteria Introduced
The notification prescribes comprehensive rules governing:
- wholly obtained products;
- regional value content calculations;
- tariff classification change requirements;
- treatment of originating and non-originating materials;
- de minimis (tolerance) provisions;
- accumulation (cumulation) between India and the UK;
- fungible goods and inventory management;
- packaging materials and accessories;
- indirect materials; and
- non-alteration requirements during transit.
These provisions are intended to create uniform standards for determining origin while ensuring compliance with the commitments made under the trade agreement.
Minimal Processing Will Not Confer Origin
The Rules also specify several operations that, by themselves, will not be sufficient to confer originating status. Activities such as simple packaging, labelling, washing, polishing, simple assembly, repacking, sorting, dilution and other minor processing operations will not qualify goods for preferential treatment unless the prescribed origin requirements are otherwise fulfilled.
Documentary Requirements for Preferential Duty
Importers seeking preferential tariff treatment will be required to support their claims with valid proof of origin.
For imports into India, the applicable proof will generally be an origin declaration completed by the exporter or manufacturer. The Rules also prescribe the validity period of origin documents, the format of declarations and certificates, documentary requirements, retrospective issuance in specified situations, and procedures governing delayed claims.
Verification and Compliance Mechanism
The Rules introduce a verification framework enabling customs authorities to verify the authenticity of origin claims before extending preferential tariff treatment. They also provide for exchange of information between Indian and UK authorities and prescribe responsibilities of exporters, manufacturers, issuing authorities and importers in establishing origin.
Importance for Businesses
The notification is expected to play a crucial role in implementing the India–UK CETA by providing legal certainty on eligibility for preferential customs duty. Exporters, importers, customs brokers and manufacturers engaged in bilateral trade will need to carefully evaluate their supply chains, sourcing patterns and documentation processes to ensure compliance with the new Rules.
With the Rules becoming effective on July 15, 2026, businesses intending to claim tariff concessions under the India–UK trade agreement will need to align their commercial and customs documentation with the newly prescribed origin requirements.
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