The government has invited the first round of applications for issue of quotas for the calendar year 2026 for import of fully built passenger cars and goods carriers on preferential duties under the India-UK Comprehensive Economic and Trade Agreement (CETA).
Under the agreement, India will allow import of 20,000 cars from the UK in the first year of the agreement on preferential duties. The applications have been invited by the Directorate General of Foreign Trade (DGFT) for allocation of quota to the importers for 9,316 units in the first phase.
Only Original Equipment Manufacturers (OEMs), dealers and channel partners duly authorised by the OEMs of vehicles originating in the UK shall be eligible to apply for the Tariff Rate Quota (TRQ). The application window is open from July 21 to August 4.
To be eligible, each applicant shall submit a pre-purchase agreement issued by an OEM 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.
The quota for cars with engine capacity of up to 1500 cc has been kept at 2329 units. These vehicles will attract a basic customs duty of 50% instead of 66%. For cars with engine capacity exceeding 1500 cc but below 3000 сc for petrol-run vehicles or exceeding 1500 сс but not exceeding 2500 cc for diesel-run vehicles the quota again has been set at 2329 units. On these vehicles also the duties will be 50%, down from 66%.
Cars with engine capacity of more than 3000 cc for petrol run vehicles and 2500 cc for a quota of 4658 units has been set. For these categories of vehicles the duties will come down to 30% from 110%.
For import of completely built motor vehicles for transport of goods quota of 1164 has been made available in the first round. Overall quote for these vehicles in the first year of the CETA coming into force is 2500 units. The units imported within quota will attract 37% duties instead of 44%.
