Ministry of Finance announces rules for determining the origin of goods under the India-UK Trade Pact

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The finance ministry has announced rules for determining the origin of goods under the India-UK Comprehensive Economic and Trade Agreement (CETA), which will come into effect from July 15, according to the notification.

Certificate of Origin is a key document required for exports to avail tariff benefits under India’s trade agreements with partner countries.

It is necessary to determine the origin of goods to ensure that products from third countries do not unduly benefit from preferential tariff benefits under trade agreements between the two countries.

The Central Board of Indirect Taxes and Customs (CBIC) said in a notification that entities authorized by the two countries can issue these certificates in their respective countries.

“These rules may be called the Customs Tariff (Determination of Origin of Goods under the 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 July 15, 2026,” it said.

CETA provides duty-free access for 99% of India’s exports to the UK, covering almost the entire trade basket.

This is expected to open up new opportunities for industry-intensive sectors such as textiles, marine products, leather, footwear, sporting goods, toys and gems and jewellery, along with high-growth sectors such as engineering goods, automotive components and organic chemicals.

India-UK two-way trade to grow by 8.62% to USD 25.12 billion in 2025-26 (Export: USD 13.44 billion; Import: USD 11.68 billion) from USD 23.13 billion in 2024-25.

India posted a trade surplus of $1.76 billion in the last fiscal year.

Commenting on the announcement, Rajat Mohan, Managing Partner, AMRG Global, said the announcement prescribing the rules of origin under CETA is a crucial step towards the transparent and efficient functioning of the pact.

“While the agreement offers significant tariff benefits, these benefits will now only be available for goods that actually meet the prescribed origin criteria. The framework reinforces the integrity of the FTA by preventing abuse through routing to third countries and ensuring that relief only accrues to legitimate producers and exporters,” he said.

Mohan added that businesses should proactively review their supply chains, value addition, sourcing methods and documentation, as compliance with rules of origin will be as important as the tariff concessions themselves.

Published – 4 Jul 2026 22:22 IST