Notification No. 29/2026-Customs: India-UK CETA Customs Duty Rates, Tariff Concessions & Import Conditions Explained

The Government of India has issued Notification No. 29/2026-Customs dated 14 July 2026 to implement the customs duty concessions under the India-United Kingdom Comprehensive Economic and Trade Agreement (India-UK CETA). The notification grants preferential Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), and Health Cess rates for eligible goods imported from the United Kingdom, subject to prescribed conditions.

The notification contains an extensive tariff schedule covering thousands of tariff items across multiple sectors, along with Tariff Rate Quotas (TRQs) for specified products. Importers can claim these benefits only by complying with the applicable Rules of Origin requirements.

What is Notification No. 29/2026-Customs?

Notification No. 29/2026-Customs provides preferential customs duty rates for goods imported from the United Kingdom under the India-UK CETA.

The notification specifies:

  • Preferential Basic Customs Duty (BCD)
  • Preferential AIDC rates
  • Health Cess concessions where applicable
  • Tariff Rate Quotas (TRQs)
  • Conditions for claiming preferential treatment

The notification has been issued under Section 25(1) of the Customs Act, 1962 in public interest.

Objectives of the Notification

The notification aims to:

  • Implement India’s tariff commitments under India-UK CETA.
  • Reduce import duties on eligible UK-origin goods.
  • Promote bilateral trade between India and the United Kingdom.
  • Ensure benefits are available only for qualifying originating goods.

Key Features of Notification No. 29/2026-Customs

1. Preferential Customs Duty

Eligible imports from the UK receive concessional Basic Customs Duty as specified against each tariff item.

Different products receive different rates depending on India’s commitments under the Agreement.

2. Reduced AIDC

For several products, concessional Agriculture Infrastructure and Development Cess (AIDC) has also been prescribed.

The applicable AIDC rate varies according to the tariff schedule.

3. Health Cess Concessions

Where applicable, Health Cess is also reduced under the notification.

Certain products receive complete exemption while others continue to attract the prescribed cess.

4. Tariff Rate Quotas (TRQs)

The notification introduces preferential treatment for specified products imported within approved Tariff Rate Quotas.

Imports within the quota receive lower customs duties, while imports beyond the quota are charged at higher rates specified in the notification.

Conditions for Claiming the Benefits

To claim preferential duty under Notification No. 29/2026-Customs, importers must establish that:

  • The goods originate in the United Kingdom.
  • The Rules of Origin under India-UK CETA are satisfied.
  • The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) are complied with.
  • Documentary evidence is produced before Customs authorities wherever required.

Product Coverage

The notification covers an extensive list of tariff lines across sectors including:

  • Agricultural products
  • Fisheries
  • Meat products
  • Fruits and vegetables
  • Food preparations
  • Industrial raw materials
  • Chemicals
  • Manufactured goods
  • Machinery
  • Textiles
  • Various industrial products

Each tariff item carries its own concessional duty rate under the agreement.

Who Should Review This Notification?

This notification is relevant for:

  • Importers sourcing goods from the United Kingdom
  • Customs Brokers
  • Export-Import (EXIM) businesses
  • Logistics companies
  • Manufacturers using imported inputs
  • Trade consultants
  • Compliance professionals

Business Impact

The notification is expected to:

  • Lower import costs for eligible UK-origin goods.
  • Improve competitiveness for Indian manufacturers.
  • Enhance bilateral trade under India-UK CETA.
  • Increase the importance of accurate origin documentation and customs compliance.

Note:

The concessional duty benefits under Notification No. 29/2026-Customs are not automatic. Importers must ensure that the imported goods qualify as originating goods under the India-UK CETA and satisfy the applicable Rules of Origin and CAROTAR requirements. Failure to meet these conditions may result in denial of preferential duty benefits.

Conclusion

Notification No. 29/2026-Customs marks a significant step in operationalizing the India-UK Comprehensive Economic and Trade Agreement by introducing preferential customs duty rates for eligible UK-origin goods. Businesses importing from the United Kingdom should carefully review the applicable tariff entries, verify product eligibility, and maintain complete origin documentation to fully benefit from the concessions available under the agreement while remaining compliant with Indian customs regulations.

Notification Reference:Customs

Notification No. 29/2026-Customs
14/07/2026

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