In the first phase, the government will allocate quotas for 9,316 fully built vehicles imported from the UK at concessional customs duties.India has opened the first round of applications for the allocation of import quotas for fully built passenger cars and goods vehicles from the UK under the duty concession provisions of the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15.
According to PTI, the Directorate General of Foreign Trade (DGFT) on Monday invited applications for the allocation of tariff rate quotas (TRQs) for calendar year 2026, allowing eligible importers to apply between July 21 and August 4.
Phase-wise division
In the first phase, the government will allocate quotas for 9,316 fully built vehicles imported from the UK at concessional customs duties.
Under the India-UK CETA, India has agreed to permit imports of up to 3.78 lakh conventional-engine passenger vehicles from the UK over the first 15 years of the agreement. The trade pact reduces customs duty on eligible vehicle imports from around 110 per cent to 10 per cent over a phased period, subject to annual quota limits.
According to the DGFT notification, only original equipment manufacturers (OEMs), authorised dealers and channel partners approved by UK vehicle manufacturers will be eligible to apply for the quota.
Applicants must submit a pre-purchase agreement issued by the UK-based OEM specifying the quantity of vehicles proposed to be supplied during the quota year.
For the 2026 allocation, the government has earmarked 2,329 units for passenger cars with engine capacities of up to 1,500 cc. These vehicles will attract a basic customs duty of 50 per cent instead of the prevailing 66 per cent.
A further quota of 2,329 units has been allocated for petrol vehicles with engine capacities above 1,500 cc but below 3,000 cc and diesel vehicles with engine capacities above 1,500 cc but not exceeding 2,500 cc. These vehicles will also benefit from a reduced customs duty of 50 per cent.
The largest allocation of 4,658 units has been reserved for larger passenger vehicles with petrol engines above 3,000 cc and diesel engines above 2,500 cc.
