Anti-Dumping Duty Extended Till 27 January 2027: Key Update Under Notification No. 64/2021-Customs (ADD)

The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 19/2026-27 dated 09 July 2026, amending Para 2.92 and Appendix 2A of the Handbook of Procedure (HBP) 2023. The amendment incorporates Tariff Rate Quotas (TRQs) under the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA).

The notification establishes the framework for importing specified passenger vehicles and goods vehicles from the United Kingdom at concessional customs duty rates, subject to annual quota limits, eligibility conditions, and prescribed procedures.

What Has Changed?

The DGFT has incorporated a new framework into the Handbook of Procedure for administering TRQs under the India–UK CETA.

The amendment includes:

  • Annual TRQ allocations for specified vehicle categories.
  • Applicable tariff rates within the quota.
  • Eligible HS Codes.
  • Online application process through DGFT.
  • Eligibility criteria for importers.
  • Allocation methodology where demand exceeds available quotas.

Passenger Cars (HS 8703) – Completely Built Units (CBU)

The notification prescribes annual TRQs for Internal Combustion Engine (ICE) passenger cars under different engine capacity categories.

The quota provides reduced customs duty rates that gradually decline over the initial years before stabilizing.

The notification also specifies separate annual quota allocations for:

  • Above 3000 cc petrol / above 2500 cc diesel
  • 1500 cc to 3000 cc vehicles
  • Up to 1500 cc vehicles

Each category has its own annual quota allocation and concessional tariff schedule.

Electric, Hybrid and Hydrogen Passenger Cars

The amendment also introduces separate TRQs for:

  • Electric Vehicles (EVs)
  • Hybrid Vehicles
  • Hydrogen-powered Passenger Cars

The concessional tariff structure is linked to the vehicle’s CIF value and provides separate quotas for different price segments.

Goods Vehicles Covered Under TRQ

India–UK CETA also provides Tariff Rate Quotas for specified Goods Vehicles (HS 8704).

The notification prescribes:

  • Annual quota sizes
  • In-quota duty
  • Out-of-quota duty

The concessional rates gradually reduce over the implementation period while quota sizes remain defined for each year.

Eligibility for TRQ Authorisation

Only the following entities are eligible to apply:

Original Equipment Manufacturers (OEMs)

Vehicle manufacturers originating in the United Kingdom.

Authorised Dealers / Channel Partners

Dealers or channel partners formally authorised by UK OEMs.

Applicants must possess a pre-purchase agreement issued by the UK manufacturer specifying the quantity proposed for import during the relevant TRQ year.

Application Process

Eligible applicants must submit their applications online through:

DGFT Website → Import Management System → Tariff Rate Quota (TRQ)

The application window for each calendar year will be notified separately by DGFT.

Certificate of Origin Requirement

At the time of customs clearance, importers must produce a valid Certificate of Origin issued by the competent authority in the United Kingdom.

Without the Certificate of Origin, concessional TRQ benefits cannot be claimed.

TRQ Allocation Method

DGFT has prescribed two allocation methods:

When Applications Are Below Available Quota

Each eligible applicant will receive the quantity requested.

Any unutilized balance quota will remain available for further applications.

When Applications Exceed Available Quota

The available quota will be distributed proportionately among eligible applicants based on the quantities requested in their pre-purchase agreements.

DGFT Monitoring of TRQs

DGFT will monitor the cumulative issuance of TRQ Certificates.

Once the prescribed quota limit is exhausted, no further TRQ Certificates will be issued during that calendar year.

The notification also states that under-utilisation of previously allocated quotas may be considered while allocating quotas in subsequent years.

Note:  The concessional imports remain subject to the relevant Ministry of Finance customs notifications issued under the India–UK CETA. Importers should also ensure compliance with Certificate of Origin requirements and DGFT application timelines before planning imports.

Conclusion

The amendment marks an important operational step in implementing the India–UK Comprehensive Economic and Trade Agreement by providing a structured framework for administering Tariff Rate Quotas on eligible vehicle imports.

Businesses intending to import passenger or goods vehicles from the UK should review the applicable HS codes, quota availability, eligibility conditions, and documentation requirements before applying for TRQ authorisation. Proper planning will help importers maximize the benefits of concessional customs duties available under the India–UK CETA.

Notification Reference: DGFT
Public Notice NO.: 19/2026-27
09/07/2026

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