DGFT Notifies TRQ Procedure For UK Vehicle Imports Under India-UK CETA

New Delhi, Jul 10 (KNN) The Directorate General of Foreign Trade (DGFT) has notified the procedure for importers to obtain tariff rate quota (TRQ) certificates for availing concessional import duties on passenger cars and goods vehicles from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into effect on July 15.

DGFT Notifies TRQ Procedure Under India-UK CETA

Under the agreement, India will reduce customs duties on specified automotive imports from the UK from as high as 110 percent to 10 percent over a phased period, subject to quota limits.

The DGFT said only original equipment manufacturers (OEMs) and their authorised dealers or channel partners will be eligible to apply for TRQ allocations, reported PTI.

Applicants must submit a pre-purchase agreement issued by a UK-based OEM specifying the quantity of vehicles to be supplied during the quota year. Importers will also be required to produce a Certificate of Origin issued by the designated UK authorities at the time of customs clearance.

The quota year will run from January 1 to December 31, and TRQ certificates will remain valid for up to 12 months or until the end of the calendar year, whichever is earlier. The DGFT will stop issuing certificates once the annual quota limit is exhausted.

Phased Duty Cuts for Conventional Vehicles

Under CETA, India has agreed to allow imports of up to 3.78 lakh conventional-engine passenger cars from the UK at concessional duty over the first 15 years of the agreement. In the first year, a total of 20,000 passenger cars will be eligible for lower import duties across different engine categories.

Customs duty on large-engine vehicles will be reduced to 30 percent from 110 percent, while duties on mid-sized and mass-market conventional vehicles will be lowered to 50 percent from 66 percent.

The annual quota for conventional-engine passenger cars will gradually increase to 37,000 units by the fifth year, after which the customs duty will stabilise at 10 percent.

No Initial Concessions for EVs

India has not offered tariff concessions for electric, hybrid or hydrogen-powered passenger vehicles during the first five years of the agreement.

From the sixth year, limited quotas with reduced duties will apply to premium electric and alternative fuel vehicles priced above GBP 40,000, while the domestic mass-market EV segment remains outside the scope of the concession.

The DGFT also advised importers availing benefits under the quota system to pass on the advantage of lower customs duties to the final consumers wherever possible.

(KNN Bureau)