2 hrs ago
India-UK Car Import Quota Sees Slow Initial Uptake
India and the United Kingdom made a trade agreement called CETA.
It lets some cars from the UK enter India with lower import taxes.
India offered space for 5,000 cars in the first quota round.
Businesses applied to import only 642 cars.
All 642 requested cars were approved.
Some larger cars can receive a particularly large tax reduction.
A separate program for vehicles that carry goods received no applications.
The low number of applications may show that companies are using the new rules slowly.
Applications covered 642 cars, compared with 5,000 units available in the first quota round.
Eight applications were received; seven were accepted and one applicant received a deficiency letter.
The Directorate General of Foreign Trade opened applications from July 21 to August 9, after CETA took effect on July 15.
CETA allows preferential duties on UK-origin cars, including a reduction to 30% for some larger vehicles from the standard 110% rate.
No applications were received for the separate goods-transport vehicle quota, which offers a 37% duty instead of 44%.
- Who
- The Indian government, UK vehicle manufacturers, authorised dealers, and channel partners are involved.
- What
- India received applications to import 642 UK-origin cars under a preferential tariff-rate quota, against 5,000 available places.
- Where
- The imports are from the United Kingdom into India.
- When
- Applications were invited from July 21 to August 9 after CETA took effect on July 15; the quota applies during the 2026 calendar year.
- Why
- The quota implements CETA’s market-access provisions and allows eligible UK-origin vehicles to enter India at lower customs duties.
Key facts
- Applications received
- Eight applications for car imports
- Vehicles requested
- 642 cars
- First-round quota
- 5,000 cars available for the 2026 calendar year
- CETA first-year commitment
- India committed to allowing 20,000 cars at preferential duties
- Largest car-duty reduction
- 30% for petrol cars above 3,000 cc and diesel cars above 2,500 cc, down from 110%
- Goods-vehicle quota
- A 37% concessional duty instead of 44%; no applications were received
- Application outcome
- Seven applications were found in order, while one applicant received a deficiency letter
Sources
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