New Rules for Goods Origin Determination Under India-UK Trade Agreement

Introduction to New Trade Rules

The Indian government has introduced regulations to ascertain the origin of goods as part of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, which is set to take effect on July 15, 2026. The Central Board of Indirect Taxes and Customs (CBIC) has released these guidelines to establish criteria for goods to receive preferential tariff treatment under this agreement, along with compliance obligations for both exporters and importers. According to the notification, these regulations will be referred to as 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, and will be effective from July 15, 2026.

Eligibility Criteria for Products

What Products Will Qualify?

For a product to be recognized as originating from India or the UK, it must be entirely produced in either nation, made solely from originating materials, or manufactured with non-originating inputs while adhering to specific product origin criteria outlined in the agreement. The framework also permits cumulative treatment of originating materials, allowing inputs from one partner country to be considered as originating in the other when utilized in subsequent production. This aspect is anticipated to enhance integrated supply chains between India and the UK.

Moreover, goods transiting through non-signatory nations will maintain their originating status only if they are under customs supervision and are not subjected to additional production or processing, apart from necessary activities for transportation, storage, labeling, preservation, or logistics. The notification clarifies that actions such as simple repackaging, relabeling, washing, sorting, polishing, basic assembly, and other minor operations will not suffice to grant originating status to a product.