DGFT Invites Applications For 24,500 UK Car Imports Under India-UK Trade Deal

(MENAFN- KNN India) New Delhi, Nov 7 (KNN) The government has invited fresh applications for tariff-rate quota (TRQ) allocation to import 24,500 passenger vehicles from the UK at concessional duties in 2027 under the India-UK Comprehensive Economic and Trade Agreement (CETA).

DGFT Opens Applications For 24,500 UK Car Imports

The Directorate General of Foreign Trade (DGFT), through a public notice issued on November 6, has opened applications from November 6 to 21 for allocations across three engine-capacity categories.

The quota comprises 6,000 vehicles with engine capacity of up to 1,500 cc, 6,000 in the middle category and 12,500 larger vehicles. A separate quota of 2,750 completely built units (CBUs) has also been provided for goods transportation vehicles, excluding electric and
hydrogen-powered vehicles.

Six Applicants Received 2026 Import Quota

The allocation follows the first round of quota distribution for 2026, in which six of the eight applications received were approved for 642 vehicles against the 4,200 units available for the remainder of the year.

Jaguar Land Rover India secured 325 units, while BMW India and Skoda Auto Volkswagen India received 75 units each. Three dealerships also received allocations.

Under CETA, India had committed to allowing imports of 20,000 UK-made cars at preferential duties in the first year. However, the agreement came into force on July 15, 2026, limiting the available quota for the remainder of the year to 4,200 vehicles.

Larger 2027 Quota To Expand UK Market Access

The larger allocation for 2027 is expected to provide UK automobile manufacturers and their authorised Indian importers greater access to the duty concessions under the agreement.

CETA Provides Phased Reduction In Import Duties

CETA provides for a phased reduction in India's import duties on British cars. Customs duty on vehicles with engine capacity of up to 1,500 cc and specified mid-sized petrol and diesel vehicles has been reduced to 50 per cent.

For larger vehicles, the preferential duty has been reduced to 30 per cent from the standard rate of 110 per cent, offering greater concessions for premium and luxury car imports.

(KNN Bureau)

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