CBIC rolls out process to claim duty concessions under India-UK FTA

CBIC has outlined the operational framework for self-certification of origin under the India-UK trade pact, enabling importers to claim preferential tariff benefits from July 15

The Central Board of Indirect Taxes and Customs (CBIC) on Monday issued detailed operational guidelines for implementing a self-certification system for rules of origin under the India-UK Comprehensive Economic and Trade Agreement (Ceta), which comes into force on July 15.

 

The circular lays down the procedure for the authentication of origin declarations — documents through which UK exporters or producers self-certify that goods meet the agreement’s rules of origin and are therefore eligible for preferential Customs duty in India. The framework replaces the conventional system under which certificates of origin were issued by designated authorities.

 

“As the agreement adopts a self-declaration framework in place of the conventional system of certificates of origin issued by designated authorities, it provides for an authentication process to be implemented by the Customs authorities of India and the UK. Accordingly, the necessary arrangements have been put in place for the exchange of information and authentication of origin declarations for imports into India,” the circular said. However, exporters opting for self-certification must retain documentary evidence supporting their declarations.

 

“They have to keep all the documents handy to support the certification, as they could be challenged and required to present the documents,” said Agneshwar Sen, trade policy leader at EY India. Alternatively, exporters can obtain certificates of origin from authorised issuing agencies, including the Directorate General of Foreign Trade and notified Export Promotion Councils. The UK will accept both origin declarations and certificates of origin while extending preferential tariff treatment to eligible imports.

 

To prevent misuse while facilitating trade, India and the UK have established an authentication framework. Before an importer can claim concessional duty, the UK exporter must electronically submit the origin declaration to both the Indian importer and a designated CBIC email address. Based on information shared by UK Customs authorities, CBIC will authenticate the declaration and generate a unique reference number (URN). The importer will then quote this URN while filing the bill of entry to claim free trade agreement (FTA) benefits.

 

The CBIC has clarified that authentication only confirms that the declaration has been issued by a genuine UK exporter or producer. Customs authorities may still verify whether the imported goods actually satisfy the agreement’s rules of origin.

 

The circular also provides relief for goods that are already in transit or under Customs control when the agreement takes effect on July 15. Such consignments, including warehoused goods that have not yet been cleared for home consumption, will remain eligible for preferential tariff treatment, provided an authenticated origin declaration is furnished after the agreement comes into force. This clarification is expected to ensure that shipments moving during the transition are not denied FTA benefits merely because the agreement was not operational when they were dispatched.

 

Under the deal, the UK has committed tariff liberalisation on 99 per cent of tariff lines, while India has agreed to open 89.5 per cent of its tariff lines.

 

India is expected to gain improved access to the UK market for labour-intensive exports such as textiles, garments, footwear, carpets, seafood, automobiles, and certain agricultural products. The UK, in turn, will secure wider access to India’s large and protected market, including for automobiles, alcoholic beverages, industrial goods, and government procurement.

 

Ajay Srivastava, founder of the Global Trade Research Initiative, said there is no universal 30 per cent or 40 per cent local-content rule under the India-UK trade deal. “The real test of Ceta will be its implementation. Indian exporters must use the new preferences, meet tougher regulatory standards and improve competitiveness. At the same time, the government will need to tackle safeguard measures, carbon rules, and other non-tariff barriers if the agreement is to deliver meaningful export growth,” he added.

 

Sen said India is well placed to implement all the commitments under the trade deal from Day 1.

 

“All the processes are pretty much in place. I do not expect any procedural issue to arise,” he added.

 

Key takeaways

 

·         CBIC issues Comprehensive Economic and Trade Agreement implementation norms

·         Self-certification replaces origin certificates

·         Unique reference number mandatory to claim free trade agreement benefits

·         Customs can still verify origin claims

·         Transit, warehoused goods eligible

·         UK opens 99% of tariff lines; India 89.5%