India Announces Procedure for UK Car Duty Reductions

India's finance ministry has issued rules detailing how importers can claim reduced customs duties on UK‑built passenger and commercial vehicles under the India‑UK free trade agreement, which comes into force on 15 July 2026. The new Customs Tariff Rules define a vehicle as UK‑origin based on its place of manufacture and the proportion of UK content, and require a valid certificate of origin. Importers must obtain a Tariff Rate Quota (TRQ) licence through the DGFT’s e‑TRQ portal; only vehicles covered by an approved licence and the origin certificate qualify for the lower duty rates.

The duty cuts are phased: in the first year, petrol cars with engines over 3.0 L and diesel cars over 2.5 L drop to 30% from 110%, with a 10,000‑unit quota, while smaller engines fall to 50% with a 5,000‑unit quota. By the fifth year, all categories reach a 10% duty, with total annual quotas rising to about 37,000 vehicles. Electric, hybrid and hydrogen models receive no concession for the first six years. The measures mainly benefit imported premium models; Jaguar Land Rover has already reduced prices on two Range Rover variants. Importers must monitor quota availability, as vehicles beyond the quota will be taxed at the regular higher rate.