The Commerce Ministry has invited applications from importers seeking tariff-rate quotas under the India-UK trade agreement for 2027. The quota includes 24,500 passenger cars of different engine capacities and 2,750 transport vehicles.
New Delhi, November 6 — The Commerce Ministry has invited fresh applications from importers seeking quotas to avail concessional customs duties under the India-UK Comprehensive Economic and Trade Agreement (CETA) for calendar year 2027.
The Directorate General of Foreign Trade (DGFT) said applications for allocation of Tariff Rate Quotas (TRQs) for specified products can be submitted between November 6 and November 21, 2026.
The India-UK trade agreement came into effect on July 15, 2026.
24,500 passenger cars under quota
According to the DGFT notice, applications have been invited for a quota covering 24,500 passenger cars with different engine capacities.
A separate quota covering 2,750 transport vehicles is also available.
The mechanism allows eligible importers to bring specified UK-origin vehicles into India at concessional customs duty rates, subject to the quota and other conditions under the trade agreement.
In September, the DGFT had approved applications from seven companies to import 642 cars from Britain for the remaining part of 2026 under the TRQ provisions.
The Directorate had initially invited applications in July for the allocation of 2026 quotas covering completely built passenger cars and goods vehicles.
Auto tariffs to fall sharply
The India-UK CETA provides for a significant reduction in tariffs on automotive imports.
Under the agreement, automotive import tariffs are scheduled to decline from around 110% to 10%, subject to quotas agreed by the two countries.
India has allowed imports of a total of 3.78 lakh conventional-engine passenger cars from the UK at concessional customs duties during the first 15 years of implementation of the trade agreement.
This includes vehicles in the mass-market segment.
However, concessional imports are subject to the applicable annual quotas rather than being available without limits.
Who can apply?
The DGFT has specified that only eligible entities associated with UK-origin vehicles can apply for the tariff quota.
These include Original Equipment Manufacturers (OEMs), dealers and channel partners duly authorised by the OEMs of vehicles originating in the United Kingdom.
The latest application window represents another step in implementing the automobile-related provisions of the India-UK trade pact.
Lower tariffs could make some UK-manufactured vehicles more competitive in India, while the quota mechanism limits the number of vehicles that can enter the country at reduced customs duty.
