The Commerce Ministry has invited applications from importers seeking tariff rate quotas (TRQs) to avail concessional customs duties on specified vehicle imports from the United Kingdom during calendar year 2027 under the India-UK Comprehensive Economic and Trade Agreement (CETA).
In a public notice issued on Friday, the Directorate General of Foreign Trade (DGFT) said applications for the allocation of TRQs for 2027 would be accepted from November 6 to November 21, 2026.
The quotas cover 24,500 passenger cars across different engine-capacity categories and 2,750 transport vehicles.
Earlier, in September, the DGFT approved applications from seven companies to import 642 cars from the UK for the remainder of 2026 under the TRQ provisions of the trade agreement. The Directorate had initially invited applications in July for the allocation of 2026 import quotas covering fully built passenger cars and goods vehicles.
The India-UK CETA, which came into effect on July 15, 2026, provides for significant tariff reductions on automotive imports. Under the agreement, customs duties on vehicle imports from the UK are set to decline from around 110 per cent to 10 per cent, subject to specified annual quotas.
India has permitted the import of a total of 3.78 lakh conventional-engine passenger vehicles, including mass-market models, from the UK at concessional customs duty over the first 15 years of the agreement’s implementation.
Eligibility to apply for the TRQ is restricted to Original Equipment Manufacturers (OEMs), dealers and channel partners duly authorised by the respective OEMs for vehicles originating in the UK.
The quota-based duty concession is expected to provide greater market access for British automotive manufacturers while allowing India to regulate vehicle imports through specified quantity limits.