The UK-India trade deal has significantly lowered tariffs on a wide range of goods moving between the two countries, which is good news if you import from or export to India. Whether this changes anything for your business depends on the specific goods you move and how they’re currently classified. Our sea freight team can help you work out what it means for your shipments.
What Is the UK-India Trade Deal?
The UK-India Comprehensive Economic and Trade Agreement (CETA) is a bilateral trade deal between the UK and India that reduces or removes tariffs on a large proportion of goods traded between the two countries. It entered into force in summer 2026, after several years of negotiation.
The headline point for importers and exporters is that most tariff lines covering goods traded between the UK and India are now subject to reduced or zero tariffs, phased in over time rather than all at once.
What Does the Deal Cover?
The agreement covers a broad range of goods, though the exact tariff treatment varies by product category and commodity code. Sectors commonly discussed in relation to the deal include textiles and garments, food and drink, and various manufactured goods, alongside changes affecting services and investment more broadly.
Because tariff reductions are phased and vary by product, check the specific treatment for your commodity codes rather than assuming a blanket reduction applies.
How Does This Affect UK Importers Bringing in Goods from India?
If you import goods from India, the deal may mean a lower duty rate applies to your shipments, depending on the commodity code and whether the goods meet the relevant rules of origin. This is particularly relevant for businesses in sectors like textiles, where India is a significant sourcing market.
To benefit from a reduced tariff, your customs declaration typically needs to correctly claim the preferential origin status, supported by the right documentation. Getting this wrong can mean paying the standard rate rather than the reduced one, even where you would otherwise have qualified.
How Does This Affect UK Exporters Selling to India?
For UK businesses exporting to India, the deal is intended to make UK goods more price-competitive by reducing the tariffs Indian importers pay. This could open new opportunities for UK exporters who previously found the Indian market less attractive because of higher duty costs.
As with imports, exporters will need to ensure the correct paperwork is in place to demonstrate UK origin and claim any preferential treatment available under the deal.
What Should Businesses Do to Prepare?
If you trade with India, or are considering it, it’s worth:
- Checking the current tariff treatment for your specific commodity codes, rather than relying on general summaries of the deal
- Confirming what documentation is required to claim preferential origin
- Reviewing whether your supply chain or sourcing decisions could benefit from the new terms
- Speaking to a customs specialist if you are unsure how the rules of origin apply to your goods
Which Ports Does This Apply To?
Trade under the UK-India deal moves through the same UK ports as any other import or export. MartinTrux handles customs clearance for shipments arriving via ports including Felixstowe and Southampton, both significant gateways for trade with the Indian subcontinent.
Frequently Asked Questions
Do all goods from India now qualify for reduced tariffs?
No. Tariff treatment depends on the specific commodity code and whether you meet the rules-of-origin requirements. Not every product benefits equally, and some reductions are phased in over several years.
Do I need to do anything differently to benefit from the deal?
In most cases, yes. Your customs declaration needs to correctly claim preferential origin, supported by the right documentation, to access any reduced tariff rate.
Does the deal affect goods moving by air as well as sea?
Yes, the deal’s tariff treatment applies regardless of transport mode, though our air freight team can also advise on documentation for air shipments.
How MartinTrux Can Help
MartinTrux has supported UK importers and exporters with customs clearance since 1982, with over 500 years of combined team experience across our Dover, Heathrow, and Manchester offices. HMRC has accredited us as an Authorised Economic Operator (AEO).
This article is intended as general guidance and not formal customs or trade advice. Trade agreement details and tariff schedules can be complex and subject to change, so if you’d like help understanding how the UK-India deal applies to your specific goods, get in touch with our team, and we will help.