CBIC Seeks to give effect to the first tranche of tariff concessions under India-UK Comprehensive Economic and Trade Agreement (CETA)
The content is a regulatory update. The Ministry of Finance, Department of Revenue, issued Notification No. 29/2026-Customs dated 14 July 2026 under Section 25(1) of the Customs Act, 1962, exempting specified goods imported from the United Kingdom from customs duty, Agriculture Infrastructure and Development Cess (AIDC), and Health Cess to the extent specified in Tables I, II, and III appended to the notification. The notification prescribes concessional rates for specified goods, including tariff rate quota (TRQ) quantities under Table III, with separate in-quota and out-of-quota Basic Customs Duty (BCD) and AIDC rates. The exemption for TRQ goods is subject to the conditions specified in the Annexure. The notification further provides that the exemption is available only if the importer establishes to the satisfaction of the Deputy Commissioner or Assistant Commissioner of Customs that the goods originate in the United Kingdom in accordance with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 and other notified rules. The notification comes into force on 15 July 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 29/2026-Customs | Dated: 14th July, 2026
G.S.R. 628(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, –
(i) goods of the description as specified in column (3) of the TABLE I appended below and falling under the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entries in column (2) of the said TABLE,-
(a) from so much of the duty of customs leviable thereon under the said Schedule, as is in excess of the amount calculated at the rate specified in the corresponding entries in column (4) of the said TABLE;
(b) from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (5) of the said TABLE;
(c) from so much of the Health Cess leviable under section 141 of the Finance Act, 2020 (12 of 2020), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (6) of the said TABLE;
(ii) goods of the description as specified in column (3) of the TABLE II appended below and falling under the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entries in column (2) of the said TABLE, from so much of the duty of customs leviable thereon under the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entries in column (4) of the said TABLE and from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entries in column (5) of the said TABLE;
(iii) goods of the description specified in column (3) of the TABLE III appended below, and falling within the tariff item of the First Schedule to the Customs Tariff Act, 1975, as are specified in the corresponding entry in column (2) of the said TABLE in such quantity of total imports of such goods in a year, as specified in column (6) of the said TABLE (hereinafter referred to as the ‘tariff rate quota (TRQ) quantity’), from so much of the duty of customs leviable thereon under the said schedule as is in excess of the amount calculated at the rate as specified in the corresponding entry in column (4) of the said TABLE (hereinafter referred to as the ‘In-quota BCD rate’) and from so much of the Agriculture Infrastructure and Development Cess (AIDC) leviable under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate as specified in the corresponding entry in column (5) of the said TABLE (hereinafter referred to as the ‘In-quota AIDC rate’), subject to the conditions specified in the Annexure to this notification:
Provided that, in respect of such goods imported in excess of the tariff rate quota (TRQ) quantity specified in the corresponding entry in column (6) of the TABLE III in a year, the exemption shall be available from so much of the duty of customs leviable thereon under the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (7) of the said TABLE (hereinafter referred to as the ‘Out-of-quota BCD rate’) and from so much of the Agriculture Infrastructure and Development Cess leviable thereon under section 124 of the Finance Act, 2021 (13 of 2021), as is in excess of the amount calculated at the rate specified in the corresponding entry in column (8) of the said TABLE (hereinafter referred to as the ‘Out-of-quota AIDC rate’),
when imported into Republic of India from United Kingdom:
Provided that the exemption shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of United Kingdom, in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 and rules as may be notified in this regard by the Central Government by publication in the Official Gazette.
2. This notification shall come into force with effect from 15th day of July, 2026.
[F. No. CBIC-190341/131/2025-TRU]
DHEERAJ SHARMA, Under Secy.
