DGFT Opens Tariff Rate Quota Applications for British Vehicle Imports for CY 2027

Importers looking to bring British-made vehicles into India at reduced duties in calendar year 2027 have a fortnight to stake their claim. The Directorate General of Foreign Trade (DGFT) opened applications for tariff rate quota (TRQ) allocations for calendar year 2027 under the India-UK Comprehensive Economic and Trade Agreement (CETA).

According to a notification issued by the DGFT, fresh applications for the allocation of TRQ under the India-UK CETA for CY 2027 are invited for specified products during the period from November 6, 2026, to November 21, 2026.

The quotas cover vehicles imported as completely built units (CBUs). In the passenger car segment, vehicles not registered anywhere prior to importation qualify for the preferential duties, with allocations split by engine capacity.

For passenger cars with engines up to 1500 cc, the quota allocation is 6,000 units. For cars with engine capacity ranging from 1500 cc to 3000 cc for petrol, or 1500 cc to 2500 cc for diesel, the quota allocation is 6,000 units. For vehicles above these engine capacities, the quota is set at 12,500 units.

Additionally, motor vehicles intended for the transport of goods—excluding electric or hydrogen fuel vehicles—receive a separate quota of 2,750 units, also imported as CBUs.

The India-UK CETA was signed in July 2025 and implemented on July 15, 2026, removing or reducing tariffs on a wide range of goods. For the UK, securing duty concessions for its auto sector was one of the major outcomes of the agreement.

A note from the UK government stated that UK car manufacturers will benefit from a quota that reduces tariffs from up to 110 percent down to 10 percent. The framework begins with internal combustion engine (ICE) cars and transitions to electric vehicles (EVs) and hybrids to reflect the evolution of manufacturing in the UK.

On the other hand, the pact resulted in the UK dismantling tariffs on 99 percent of tariff lines for India. The Commerce Ministry noted that this measure levels the playing field, enabling Indian sectors such as textiles, leather, marine, engineering, and processed food to compete without disadvantage.

"The opening of TRQ applications under the India-UK CETA marks an important operational milestone following the trade pact's implementation. For businesses engaged in international trade and automotive imports, adhering strictly to the November 21, 2026 deadline is crucial. This agreement demonstrates how structured bilateral frameworks create predictable trade pathways, allowing importers and manufacturers to plan their logistics and market entry strategies well in advance." — Dr. Shishir Gupta, Founder & CEO, StartupLanes