The Indian government has opened the application process for importing conventional-engine passenger cars from the United Kingdom under a concessional tariff rate quota (TRQ) established by the recently implemented India-UK Comprehensive Economic Trade Agreement (CETA), according to a notification from the Directorate General of Foreign Trade (DGFT).
Under the trade pact, New Delhi has allowed the import of a total of 0.378 million units of conventional-engine passenger cars, including mass-segment vehicles, from the UK at a concessional customs duty over the first 15 years of implementation. The DGFT stated that "new applications for TRQ under India-United Kingdom CETA for CY 2026 are invited from July 21, 2026 up to August 04, 2026."
Tariff Rate Quota Details
The TRQ mechanism enables a specified volume of cars to enter India at a reduced tariff rate. According to the Economic Times, tariffs on automotive imports under the pact will fall to 10% from about 110% — a dramatic reduction designed to boost bilateral trade.
| Parameter | Detail |
|---|---|
| Total quota volume | 0.378 million units |
| Vehicle type | Conventional-engine passenger cars (including mass segment) |
| Concessional duty rate | 10% |
| Standard duty rate (approx.) | 110% |
| Quota validity period | First 15 years of CETA implementation |
| Application window (CY 2026) | July 21 – August 4, 2026 |
| Governing authority | Directorate General of Foreign Trade (DGFT) |
Eligibility Criteria
Only original equipment manufacturers (OEMs), dealers, and channel partners that are duly authorised by the OEMs of vehicles originating in the UK are eligible to apply for the TRQ, the DGFT notification specified. This restriction ensures that the quota benefits are channeled through manufacturers and their authorised distribution networks.
Application Process
- Eligible entities must submit applications within the specified window: July 21, 2026 to August 4, 2026.
- The applications are for the Calendar Year 2026 quota allocation.
- The DGFT will administer the TRQ allocation, though specific allocation methodology was not detailed in the notification.
Background of the India-UK CETA
The tariff reduction on automotive imports is a key component of the broader India-UK trade pact. The agreement aims to lower barriers and increase market access across multiple sectors. For the automotive industry, the phased reduction from 110% to 10% on the first 0.378 million units is expected to significantly lower costs for importers and consumers, while the quota protects domestic manufacturers from an immediate surge in imports.
Implications for Importers and Trade Professionals
Importers and customs brokers handling UK-origin passenger cars should note the strict eligibility requirements — only OEMs, their dealers, or channel partners may apply. The July 21 to August 4 application window is relatively short, requiring prompt preparation of documentation. Exporters in the UK should coordinate with their Indian counterparts to ensure authorised representation. Trade policy analysts will watch the utilisation rate of the quota as an indicator of bilateral trade flow under the CETA.
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