India-UK Trade Pact to Take Effect from July 15 as Government Notifies Origin Rules

New Delhi - The India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, with the Centre notifying the rules that will govern the determination of the origin of goods and eligibility for preferential tariff benefits under the landmark trade pact.

The agreement is expected to provide duty-free access to 99 per cent of India's exports to the UK, giving a major boost to bilateral trade.

According to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), a product will qualify as originating in India or the UK if it is wholly obtained in either country, produced entirely using originating materials, or manufactured with non-originating inputs while meeting the product-specific rules of origin laid down under the agreement.

The notification states that the new regulations, titled the *Customs Tariff (Determination of Origin of Goods under Comprehensive Economic and Trade Agreement between India and the United Kingdom of Great Britain and Northern Ireland) Rules, 2026*, will come into effect on July 15, 2026.

The rules allow cumulative treatment of originating materials, enabling inputs from one partner country to be treated as originating in the other when used in further manufacturing. This provision is expected to make supply chains more flexible and efficient for businesses in both countries.

However, the notification makes it clear that minor processes such as simple repackaging, relabelling, washing, sorting, polishing, basic assembly and similar operations will not be sufficient to qualify a product for originating status.

Customs authorities will also have the power to verify claims regarding the origin of goods and deny preferential tariff benefits if the prescribed conditions are not met. At the same time, the framework offers flexibility by allowing importers to claim tariff benefits even if they were not claimed at the time of import.

Recently, Commerce and Industry Minister Piyush Goyal said the India-UK CETA would strengthen cooperation in trade, investment and innovation while creating fresh opportunities for professionals and businesses in both countries.

Speaking at the 'India-UK: Partners in Progress Business Plenary' in London, Goyal said the landmark agreement would help expand bilateral trade, boost investments, encourage technology partnerships and innovation, and build more resilient supply chains between the two nations.

With inputs from IANS