India Updates Tariff Rate Quotas for Cars Under UK CETA Agreement

The Directorate General of Foreign Trade (DGFT) issued Public Notice No. 19/2026‑27 on 9 July 2026, amending Paragraph 2.92 and Appendix‑2A of the Handbook of Procedure, 2023 to incorporate Tariff Rate Quotas (TRQs) under the India‑United Kingdom Comprehensive Economic and Trade Agreement (CETA). The amendment sets annual import TRQs for internal‑combustion‑engine (ICE) passenger cars, electric/hybrid/hydrogen passenger cars (HS 8703), and ICE goods vehicles (HS 8704). It defines quota sizes, in‑quota and out‑of‑quota customs duty rates, and the applicable HS codes. Only original equipment manufacturers (OEMs) and their authorised dealers or channel partners may apply, using pre‑purchase agreements and a UK‑issued Certificate of Origin, with applications processed through the DGFT portal. The notice also outlines allocation procedures when applications exceed quotas, treatment of under‑utilisation, electronic issuance of TRQ authorisations, validity periods, and DGFT monitoring of quota utilisation, with a review of allocation modalities scheduled from the calendar year 2028.