Govt invites applications for car imports under India-UK trade agreement
Jul 21, 2026
New Delhi [India], July 21 : The government has invited applications for importing passenger vehicles and certain goods transport vehicles from the United Kingdom under the tariff rate quota (TRQ) mechanism provided in the India-UK Comprehensive Economic and Trade Agreement (CETA), opening a two-week window for eligible importers.
According to a gazette notification issued by the Directorate General of Foreign Trade (DGFT), applications for allocation of the quota for calendar year 2026 will be accepted from July 21 to August 4, 2026.
The notification said, "the Directorate General of Foreign Trade (DGFT) hereby invites applications for Tariff Rate Quota (TRQ) allocation under the India-UK CETA for the CY 2026 on the following products from 21.07.2026 up to 04.08.2026."
The first phase of the quota covers 9,316 vehicles, with concessional customs duties available under the trade agreement.
Of the total allocation, 2,329 units have been earmarked for passenger vehicles with engine capacity of up to 1,500 cc. Another 2,329 units have been allocated for mid-segment vehicles, while 4,658 units have been reserved for higher engine-capacity or premium passenger vehicles, which will attract a concessional customs duty of 30 per cent under the agreement.
A separate quota has also been provided for certain completely built goods transport vehicles.
Under the India-UK CETA, India has agreed to allow the import of 20,000 UK-built vehicles at preferential duty rates in the first year of the agreement, with the current allocation constituting the first phase.
To be eligible, applicants must submit a pre-purchase agreement issued by the concerned UK-based OEM specifying the number of vehicles to be supplied during the relevant TRQ year.
The DGFT said imports under the quota will be governed by the operational procedures prescribed under the Foreign Trade Policy, 2023.