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Core Purpose

The Directorate General of Foreign Trade amends Para 2.92 and Appendix-2A of the Handbook of Procedure, 2023 to incorporate Tariff Rate Quota (TRQ) provisions for specified vehicles under the India – United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA).

Detailed Summary

The Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade issued Public Notice No. 19/2026-27 on July 9, 2026, exercising powers under paragraph 1.03 read with 2.04 of the Foreign Trade Policy 2023. This notice amends Para 2.92 and Appendix-2A of the Handbook of Procedure, 2023, to include annual import Tariff Rate Quotas (TRQs) for items under the India – United Kingdom Comprehensive Economic and Trade Agreement (CETA). The amendments cover three categories of Completely Built Units (CBUs): (I) ICE-Passenger Cars (HS8703) with varying engine capacities (more than 3000cc petrol/2500cc diesel, 1500-2500cc diesel/3000cc petrol, and upto 1500cc) with in-quota tariffs decreasing from 30-50% to 10% over 15 years, and total quotas ranging from 20,000 to 15,000 units. (II) Electric/Hybrid/Hydrogen-Passenger Cars (HS8703) with CIF values below £40,000, £40,000-£80,000, and above £80,000, featuring in-quota tariffs decreasing from 50-40% to 10% from year 6 onwards, with total quotas ranging from 4,400 to 22,000 units. (III) ICE-Goods Vehicles (HS-8704) with in-quota duties decreasing from 37.0% to 8.8% over 10 years, and an out-of-quota duty decreasing from 41.8% to 22.0%, maintaining a quota size of 2,500 to 3,500 units. Imports are subject to relevant Ministry of Finance (Department of Revenue) Notifications, require a Certificate of Origin from UK authorities, and applications must be submitted online via the DGFT website by eligible Original Equipment Manufacturers (OEMs) or their authorized Dealers/Channel Partners with a pre-purchase agreement. TRQ allocation is based on requested quantities, with proportional distribution if demand exceeds supply, and under-utilization may affect future allocations. The TRQ year is the calendar year (January 1 to December 31), and TRQ Certificates, valid for a maximum of 12 months or till year-end, are issued electronically by DGFT and transmitted to the Indian Customs EDI System (ICES). The modalities are subject to review after 2 years from calendar year 2028, and DGFT reserves the right to modify conditions. The procedure for TRQ application under India-UK (CETA) will be inserted under Annexure VII of Appendix 2A of the Handbook of Procedures 2023. This Public Notice was signed by Lav Agarwal, Director General of Foreign Trade & Addl. Secy.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-23072026-274672 EXTRAORDINARY PART I-Section 1 PUBLISHED BY AUTHORITY No. 208] NEW DELHI, TUESDAY, JULY 14, 2026 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) PUBLIC NOTICE New Delhi, the 9th July, 2026 No. 19/2026-27 Subject: Amendments under Para 2.92 and Appendix-2A of Handbook of Procedure 2023 for inclusion of TRQs under India – United Kingdom Comprehensive Economic and Trade Agreement (CETA)-reg. F. No. 01/89/180/110/AM-25/PC-2(A)/E-45719.—In exercise of powers conferred under paragraph 1.03 read with 2.04 of the Foreign Trade Policy 2023, as amended from time to time, the Directorate General of Foreign Trade hereby amends Para 2.92 and Appendix-2A of the Handbook of Procedure, 2023 to incorporate the items mentioned and related provisions for Tariff Rate Quota (TRQ) under India – United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA) as follows – 1. Para 2.92 of the HBP, 2023 is amended to include the following annual Import TRQs under India-UK (CETA)- (I) (a) ICE-Passenger Car (HS8703)-Completely Built Units (CBU) +----------------+-------------------------------+--------------+-------------------------------+--------------+-------------------------------+--------------+--------------+ | | More than 3000 cc petrol | | From 1500 cc(petrol) to | | Upto (and incl.) 1500 cc | | | | | and more than 2500 cc diesel | | (and incl.) 2500cc | | | | | | | | | (diesel) / 3000 cc (petrol) | | | | | +----------------+-------------------------------+--------------+-------------------------------+--------------+-------------------------------+--------------+--------------+ |Year | In-quota tariff (Base rate of | Quota Size | In-quota tariff (Base rate of | Quota Size | In-quota tariff (Base rate of | Quota Size | Total Quota | | | customs duty 110.0%) | | customs duty 66.0%) | | customs duty - 66.0%) | | | +================+===============================+==============+===============================+==============+===============================+==============+==============+ | 1 | 30.0% | 10,000 | 50.0% | 5,000 | 50.0% | 5,000 | 20,000 | | 2 | 25.0% | 12,500 | 40.0% | 6,000 | 40.0% | 6,000 | 24,500 | | 3 | 20.0% | 15,500 | 30.0% | 7,000 | 30.0% | 7,000 | 29,500 | | 4 | 15.0% | 18,500 | 20.0% | 8,000 | 20.0% | 8,000 | 34,500 | | 5 | 10.0% | 19,000 | 10.0% | 9,000 | 10.0% | 9,000 | 37,000 | | 6 | 10.0% | 16,300 | 10.0% | 8,150 | 10.0% | 8,150 | 32,600 | | 7 | 10.0% | 15,200 | 10.0% | 7,600 | 10.0% | 7,600 | 30,400 | | 8 | 10.0% | 14,100 | 10.0% | 7,050 | 10.0% | 7,050 | 28,200 | | 9 | 10.0% | 13,000 | 10.0% | 6,500 | 10.0% | 6,500 | 26,000 | | 10 | 10.0% | 11,900 | 10.0% | 5,950 | 10.0% | 5,950 | 23,800 | | 11 | 10.0% | 10,800 | 10.0% | 5,400 | 10.0% | 5,400 | 21,600 | | 12 | 10.0% | 9,975 | 10.0% | 4,988 | 10.0% | 4,988 | 19,950 | | 13 | 10.0% | 9,150 | 10.0% | 4,575 | 10.0% | 4,575 | 18,300 | | 14 | 10.0% | 8,325 | 10.0% | 4,163 | 10.0% | 4,163 | 16,650 | | 15 and onwards | 10.0% | 7,500 | 10.0% | 3,750 | 10.0% | 3,750 | 15,000 | +----------------+-------------------------------+--------------+-------------------------------+--------------+-------------------------------+--------------+--------------+ (b) The tariff codes to which this TRQ applies are as follows: +------------+------------+------------+ | | HS Code | | +============+============+============+ | 87032110 | 87032391 | 87033199 | | 87032191 | 87032399 | 87033210 | | 87032199 | 87032410 | 87033291 | | 87032210 | 87032491 | 87033299 | | 87032291 | 87032499 | 87033310 | +------------+------------+------------+ 87032299 87032310 87033110 87033191 87033391 87033399 (II)(a) Electric/Hybrid/Hydrogen-Passenger Cars(HS8703)-CBU +--------------------+-----------------+-----------+-----------------+-----------+-----------------+-----------+-------------+ | | Below £40,000 CIF | | £40,000 CIF to | | Above £80,000 CIF | | | | | | | £80,000 CIF | | | | | | | | | (inclusive) | | | | | +--------------------+-----------------+-----------+-----------------+-----------+-----------------+-----------+-------------+ |Year | In-quota tariff | Quota Size| In-quota tariff | Quota Size| In-quota tariff | Quota Size| Total Quota | | | (Base rate of | | (Base rate of | | (Base rate of | | | | | customs duty | | customs duty | | customs duty | | | | | 110.0%) | | 110.0%) | | 110.0%) | | | +====================+=================+===========+=================+===========+=================+===========+=============+ | 6 | No | Nil | 50.0% | 400 | 40.0% | 4,000 | 4,400 | | 7 | No | Nil | 40.0% | 600 | 30.0% | 6,000 | 6,600 | | 8 | No | Nil | 30.0% | 800 | 20.0% | 8,000 | 8,800 | | 9 | No | Nil | 20.0% | 1,000 | 15.0% | 10,000 | 11,000 | | 10 | No | Nil | 10.0% | 1,200 | 10.0% | 12,000 | 13,200 | | 11 | No | Nil | 10.0% | 1,400 | 10.0% | 14,000 | 15,400 | | 12 | No | Nil | 10.0% | 1,550 | 10.0% | 15,500 | 17,050 | | 13 | No | Nil | 10.0% | 1,700 | 10.0% | 17,000 | 18,700 | | 14 | No | Nil | 10.0% | 1,850 | 10.0% | 18,500 | 20,350 | | 15 and later years | No | Nil | 10.0% | 2,000 | 10.0% | 20,000 | 22,000 | +--------------------+-----------------+-----------+-----------------+-----------+-----------------+-----------+-------------+ (b) the tariff codes to which this TRQ applies are as follows: +------------+------------+------------+------------+ | | HS Code | | | +============+============+============+============+ | 87034010 | 87035030 | 87036090 | 87038010 | | 87034030 | 87035090 | 87037010 | 87038030 | | 87034090 | 87036010 | 87037030 | 87038090 | | 87035010 | 87036030 | 87037090 | 87039000 | +------------+------------+------------+------------+ (III)(a) ICE-Goods Vehicles (HS-8704)-Completely Built Units +--------------------+-------------------+--------------------+--------------+ |Year |In-Quota Duty |Out-of-Quota Duty |Quota Size | | |(BaseRate-44.0%) |(BaseRate-44.0%) | | +====================+===================+====================+==============+ |Year1 |37.0% |41.8% |2,500 | |Year2 |29.9% |39.6% |2,750 | |Year3 |22.9% |37.4% |3,000 | |Year4 |15.8% |35.2% |3,250 | |Year5 |8.8% |33.0% |3,500 | |Year6 |8.8% |30.8% |3,500 | |Year7 |8.8% |28.6% |3,500 | |Year8 |8.8% |26.4% |3,500 | |Year9 |8.8% |24.2% |3,500 | |Year 10 and onwards |8.8% |22.0% |3,500 | +--------------------+-------------------+--------------------+--------------+ (b) the tariff codes to which this TRQ applies are as follows: +------------+------------+------------+ | | HS Code | | +============+============+============+ | 87041010 | 87042200 | 87043100 | | 87042100 | 87042300 | 87043200 | +------------+------------+------------+ 2. Import would be subject to the relevant Ministry of Finance (Department of Revenue) Notification (as amended from time to time) relating to India-UK (CETA). 3. At the time of clearance of the import consignment, the importer in India must produce a Certificate of Origin issued by concerned authorities in UK. 4. The application window for submission of TRQ applications, for each calendar year, will be intimated through a separate Public Notice from time to time. 5. All applications for grant of TRQ authorizations shall be submitted online through the DGFT website (https://dgft.gov.in)→ Import Management System → Tariff Rate Quota (TRQ). 6. Only Original Equipment Manufacturers (OEMs), Dealers/Channel Partners duly authorised by the OEMs of vehicles originating in the UK shall be eligible to apply for the TRQ. 7. To be eligible, each applicant shall submit a pre-purchase agreement issued by an Original Equipment Manufacturer of the vehicles originating in the UK setting out the quantity of vehicles agreed to be supplied to the applicant during the TRQ year for importation into India under each TRQ. 8. If the total quantities applied for are below the total available quantity under a given TRQ, each eligible applicant for that TRQ shall be allocated the requested quantity, and the remaining available quantity shall be made available for filing of applications. 9. If the total TRQ quantities applied for exceed the total number of vehicles that may be imported under the relevant TRQ, the TRQ quantities shall be allocated among all eligible applicants in proportion to the quantity that each eligible applicant has requested on the basis of the pre-purchase agreement. 10. When an importer fails to import a significant share of the quantity allocated to it in a TRQ year, the competent authority shall, in determining that importer's allocation for the subsequent TRQ yeartake such under-utilization into account so as to ensure effective utilization of TRQ. 11. The year in respect of these imports will be the period from 1st January to 31st December, i.e., calendar year in India. 12. DGFT shall monitor the cumulative quantities for TRQ Certificates issued. No TRQ Certificates shall be issued once the stated TRQ quantity limit is reached. 13. The TRQ issued by DGFT shall contain the name and address of the importer, Importer -Exporter Code (IEC), Customs notification number, tariff item as applicable, quantity and validity period of the TRQ. 14. The TRQ Authorisation shall be issued electronically by the Directorate General of Foreign Trade and transmitted to Indian Customs EDI System (ICES). 15. Imports against the TRQ shall be allowed only upon debiting electronically in the ICES system. 16. TRQ Certificate shall be valid for a maximum period of 12 months or till the end of the calendar year, whichever is earlier. The imports against a TRQ Authorisation may be cleared from Indian Customs only within the stated validity of the TRQ Authorisation. 17. Importers under TRQ shall endeavour to pass on the benefit of the concessional customs duty available under the TRQ to the final buyer or consumer. 18. The above modalities of the TRQ allocation may be subject to review after 2 years, i.e., from the calendar year 2028, and any necessary revisions may be made to ensure the effective utilisation of the TRQ. 19. Procedure for application for imports under TRQ under India-UK (CETA) as enumerated above shall be inserted under Annexure VII of Appendix 2A of the Handbook of Procedures 2023. 20. DGFT reserves the right to modify, amend, relax, or prescribe additional conditions relating to the allocation and administration of the TRQ, as may be considered necessary in the public interest. 2. Effect of this Public Notice: Procedure for allocation of Tariff Rate Quotas (TRQ) under India-UK (CETA) is notified. LAV AGARWAL, Director General of Foreign Trade & Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. Digitally signed by KUMER CHAND KUMER CHAND MEENA MEENA Date: 2026.07.23 12:21:26 +05'30'

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