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Overview
The UK-India Free Trade Agreement (FTA), also known as the UK‑India Comprehensive Economic and Trade Agreement (CETA) and the ‘agreement’, sets out terms for trade in goods and services between the UK and India. For UK exporters, the agreement offers significant opportunities to access the Indian market on more favourable terms, including reduced or zero tariffs on qualifying goods.
To benefit from these tariff preferences, businesses must demonstrate that their goods meet the agreement’s rules of origin. These rules are essential for determining whether goods are eligible for preferential treatment and are set out in Chapter 3 of the agreement. Understanding and applying these rules correctly is critical for UK businesses that want to take full advantage of the agreement.
Understanding rules of origin
Rules of origin establish the economic nationality of goods. Under the agreement, they determine whether a good is considered to have been produced in the parties to the agreement (the UK and India). Only goods that meet the agreement’s rules of origin qualify for preferential tariffs under the agreement.
The rules are designed to ensure that the benefits of the agreement go to producers in the UK and India, rather than to goods that are simply transhipped through either country without undergoing substantial transformation. They also help customs authorities verify claims and prevent misuse of the agreement.
There are 3 main ways a good can qualify as originating under the agreement – it is:
- wholly obtained or produced in the UK or India
- made entirely from originating materials sourced from the UK or India.
- produced using non-originating materials but meets specific product-level rules known as product-specific rules
Wholly obtained or produced goods
Goods are considered wholly obtained when they are entirely sourced or produced within the territory of one or both parties as set out in Article 3.3 of Chapter 3 of the agreement. This category includes natural products such as minerals, agricultural produce, and fish, as well as goods derived from animals raised in the UK or India. For example, fresh fish caught in UK territorial waters (harmonised system code 0302) would be considered wholly obtained (there are also rules on fish caught elsewhere by British vessels). Similarly, grapes harvested in India (HS code 0806) or iron ore extracted in either country (HS code 2601) would qualify under this rule.
This route is most relevant for businesses involved in agriculture, fisheries, and extractive industries, where the origin of the product is clear and traceable. It is also the simplest route to compliance because it avoids the complexity of mixed inputs or manufacturing processes. However, businesses must still keep accurate records to demonstrate that the goods were wholly obtained in the UK or India, as this is required by law. Customs authorities may request these records.
Goods made entirely from originating materials
A good may also qualify if it is manufactured in the UK or India using only materials that themselves meet the rules of origin. For goods to qualify in this way, every input used in the production process must be originating. For instance, a blended whisky or whiskey made in the UK (HS code 2208) using whiskies from multiple producers would qualify if the blending process takes place in the UK and all component whiskies are produced entirely in the UK using originating materials.
The final production of the good must take place in one of the parties, and the inputs must be traceable and documented to demonstrate their originating status. Businesses should maintain detailed records of suppliers and production processes to comply with the record-keeping requirements set out in Article 3.24 in Chapter 3 of the agreement.
Goods produced using non-originating materials
Many manufactured goods rely on imported inputs from third countries. Under the agreement such goods can still qualify for preferential treatment if they meet the relevant product-specific rules (PSRs) set out in Annex 3A in Chapter 3 of the agreement. All goods have their own PSRs based on the Harmonised System (HS) nomenclature (a standardised numerical method of classifying traded products). These rules can allow goods containing inputs from other countries to count as originating, if those inputs have undergone certain changes.
For example, a PSR may require production in the UK or India to involve a change in tariff classification (CTC), a minimum qualifying value content (QVC), or a specific production process. Some rules include both a CTC and QVC requirement.
For example, electric motors (HS code 8501) may qualify if all of the imported inputs undergo a change in tariff heading. This means that the final product cannot contain imported inputs classified under HS 8501 (although Article 3.9 in Chapter 3 of the agreement provides some limited flexibility on this). Or, as an alternative, at least 40% of the final product’s value (depending on the method of calculation) must come from originating inputs or processing.
Similarly, tracksuits (HS code 6112) made from imported fabric (HS code 5512) may qualify if the manufacturing process results in a change from fabric to finished garments and the QVC requirement is met. These rules are designed to ensure that substantial transformation takes place and that the final product reflects meaningful economic activity in the UK or India.
Calculating QVC
Where a QVC requirement applies, businesses must calculate the percentage of originating content in the final product. There are 2 methods available:
- the build-down method, based on subtracting the value of non-originating materials from the total value of the good
- the build-up method, based on the value of originating materials
Article 3.4 i in Chapter 3 of the agreement sets out the concept of ex-works and free on board (FOB) pricing for the value of the good. Different QVC thresholds may apply depending on whether ex-works or FOB pricing is used.
There are alternative ways to determine the ex-works price, and traders may choose the option that best suits them:
- in Article 3.4, 2(a), the ex-works price may be based on the price paid or payable to the producer at the place of last production, provided that it includes the value of all materials used
- alternatively 2(b) allows traders to use the price actually paid or payable for the good when sold for export
Article 3.5 in Chapter 3 of the agreement allows certain elements such as freight, insurance and taxes to be added to the value of originating materials or deducted from the value of non-originating materials.
Businesses must keep accurate records and be prepared to provide documentation if requested by customs authorities.
Cumulation
Cumulation means that originating materials from India or the UK can be used in production in the other party and treated as originating. This means that UK manufacturers can use originating materials from India in their production and the goods they produce can qualify for preferential treatment in the same way as if those materials originated from the UK, and vice versa.
For example, a UK-made engine classified under HS code 8407 used in a vehicle assembled in India and classified under HS code 8703 can be treated as originating. Under the agreement, if all materials are originating and all processing has occurred in the UK and India, the good does not have to meet the PSR. If non-originating materials are used, the final product must meet the relevant PSR, but treating the UK-made engine as an originating material may make that easier. Cumulation supports integrated supply chains and makes it easier for businesses to meet origin requirements.
Operations that do not confer origin
The agreement specifies that certain minimal operations do not confer origin. These are set out in Article 3.7 in Chapter 3 of the agreement and include, for example, changes of packaging, cleaning, affixing of labels, dilution without altering the characteristics of the good, and various 'simple' processes such as placing in bottles, sorting, assembly, mixing and testing. 'Simple' in this context, describes an activity that needs neither special skills nor machines, apparatus or equipment specially produced or installed to carry out the activity. Businesses should refer to the wording of Article 3.7 and relevant implementing legislation and ensure that their production processes go beyond these minimal operations. Article 3.7 in Chapter 3 of the agreement includes an anti-circumvention provision: paragraph 1(r).
Proving the origin of your goods
Authentication
UK traders need to follow an authentication process before a claim for preferential tariff treatment can be made in India. This allows the Indian customs authority to check that the UK origin declaration has been completed by a genuine UK exporter or producer.
This step only applies to UK exports. It checks that the UK trader is registered with HMRC, but it does not confirm whether the goods meet the rules of origin. Origin checks may be carried out separately under the agreement’s verification procedures.
An overview of the authentication process can be found in Annex 3D in Chapter 3 of the agreement.
There are five main steps in the process.
1. Register with HMRC
As a UK producer or exporter, you must register with HMRC before completing origin declarations.
Register to complete origin declarations under the UK-India Free Trade Agreement on GOV.UK.
You only need to register your details once. You do not need to register for each shipment.
Register using your Economic Operators Registration and Identification (EORI) number. You can add up to 11 email addresses, including generic business and distribution list email addresses. These should be the email addresses that you will use to send origin declarations under step 3 below.
If you register more than one EORI number, you cannot use the same email address twice. India’s system will treat this as a duplicate and the authenticity check will fail.
HMRC will share your registered details with the customs authority of India. You should update your registration details if they change.
2. Complete an origin declaration
The exporter or producer must complete an origin declaration to show that the goods meet the rules of origin. The declaration must be completed in English.
You must use the correct origin declaration template. This will be different from the format used under other UK free trade agreements. Complete the origin declaration electronically where possible, as you must convert it to a PDF before sending it for authentication.
Use the updated origin declaration template for UK traders to help ensure the authenticity check is completed successfully. Complete the origin declaration electronically where possible – you may use the Excel or Word template.
However, you must convert the document to a PDF before sending to India for authentication.
Use the updated origin declaration template (Excel or Word) on GOV.UK.
You can include multiple different goods in one origin declaration if they are part of the same shipment.
Only include goods that meet the rules of origin. Non-originating goods that are part of the same shipment do not need to be included in the origin declaration.
Your origin declaration is valid for at least 12 months from the date of completion. The date of completion should be written in the format dd/mm/yyyy.
3. Send the declaration
You must email the origin declaration to your Indian importer, copying in India’s Central Board of Indirect Taxes and Customs (CBIC). The email must be sent from an email address that has been registered with HMRC alongside your EORI number.
You must send a separate email for each shipment.
Send your origin declaration well in advance to reduce the risk of delays or errors.
- The CBIC must be copied in. Its email address is cbic.customs.indiaukceta@CBICIndia.onmicrosoft.com
- The origin declaration must be attached as a PDF.
- The subject line should be your EORI number and the date of the origin declaration: ‘EORI-DD/MM/YYYY’. For example: GB123456789-01/07/2026.
Do not attach anything other than the origin declaration. Your email will be rejected automatically if it has multiple attachments, or if the PDF includes other documents like invoices.
4. Address any errors
If the authenticity check cannot be completed, you will receive an error message explaining what went wrong and how to fix it. This may happen if:
- the subject line does not follow the correct format
- the origin declaration is in the wrong format (for example, a Word document instead of a PDF)
- the attachment is missing or cannot be opened
- there are multiple attachments
- the Indian importer details are missing
If your email address is not registered with HMRC, or if it is associated with a different EORI number, the check will fail. You will receive an error message telling you to:
- resend the origin declaration from a registered email address
- or register your details with HMRC
5. Receive confirmation from Indian customs
If your email address is registered with HMRC and your email meets the requirements in step 3, you will receive an automatic confirmation from CBIC.
The confirmation email will be sent to your Indian importer. It will include a unique reference number for them to use when making a claim for preferential tariff treatment.
Customs procedures and compliance
Record-keeping requirements
Customs authorities in both countries may verify origin claims in accordance with the verification article. For UK exports, HMRC may verify your goods by requesting information or visiting your premises to verify the originating status of the goods. If a claim is found to be incorrect, duties must be paid by the importer and penalties may apply.
You are required to keep all records related to the exportation of your goods for at least 5 years from the date of the origin declaration. This includes origin declarations, invoices or other commercial documents, supplier information, production records, costing records used for any qualifying value content calculation, and transport or customs documents showing compliance with the non-alteration rule where relevant.
You must be able to retrieve these records promptly if requested. Record-keeping requirements also apply to importers.
Non-alteration
Your goods must remain under customs control if they transit through a non-party country and must not undergo further processing outside the UK or India. See Article 3.14 of Chapter 3 of the agreement for permitted operations.
Goods in transit or storage at entry into force
Goods that are already in transit or held in storage under customs control in India before the agreement enters into force may still benefit from preferential tariff treatment. This is provided for in Article 3.19 of the agreement.
For UK exports, preferential tariff treatment is claimed when the goods are cleared through Indian customs, not when they leave the UK.
You must ensure that:
- the goods meet the rules of origin
- the origin declaration is dated on or after 15 July 2026
- you follow the steps for authentication and receive confirmation from Indian customs before preferential tariff treatment is claimed in India
- all relevant customs procedures are completed at the point of importation
Origin declarations dated before 15 July 2026 may be rejected as they do not refer to a valid agreement at the time of signature.
Claims for preferential tariff treatment after importation
If preferential treatment is not claimed at the time of import, importers may submit a claim for preferential tariff treatment after importation, provided the good would have qualified for preferential tariff treatment at the time of importation.
For UK exports to India, a claim may be made by the importer no later than one year after the date of importation, unless India specifies a longer time period in its laws and regulations.
The importer must make a claim in accordance with Article 3.15 in Chapter 3 of the agreement and be able to provide a copy of the origin declaration to the Indian customs authority.
This provision offers flexibility for businesses who may have missed the opportunity to claim at the time of import.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
Useful resources
Prior to export, you must be aware of local regulations and import conditions in India that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer, or distributor, you can use the following contacts:
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
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