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How to Claim Preferential Duty Under the UK-India FTA

How to Claim Preferential Duty Under the UK-India FTA

Effective: 15th July 2026

Welcome

At Uniexpress, we are committed to keeping our customers informed, compliant, and competitive.
The UK–India Free Trade Agreement (FTA) presents a valuable opportunity to reduce import duty costs, but it also introduces new compliance requirements that must be carefully managed.
This guide explains how to use the agreement correctly and confidently within the UK’s Customs Declaration Service (CDS).

What This Means for Your Business

The UK–India FTA allows importers to benefit from:

  • Reduced or zero customs duty
  • Improved cost control across supply chains
  • Greater flexibility when sourcing from India

However, these benefits apply only where all HMRC requirements are met, including the correct declaration procedures and origin validation.

Step-by-Step: How to Claim Preferential Duty

Step 1: Confirm Goods Meet Rules of Origin

Before claiming any duty relief, you must confirm that your goods qualify as originating in India.
This means they must either be:

  • Wholly obtained in India, OR
  • Sufficiently processed to meet the agreement’s origin rules

Rules of origin are a key condition for accessing reduced tariffs under UK trade agreements.

Step 2: Obtain Valid Proof of Origin

You must obtain and retain valid origin evidence from your supplier:

  • Statement on origin (most common)
  • Approved exporter declaration (if applicable)

Without valid proof, preference cannot be claimed.

Step 3: Complete Your CDS Declaration Correctly

Your CDS declaration must include the correct data fields to trigger preferential treatment.

Key Data Elements:

DE 1/10 – Procedure Code: 40 00 (Free circulation)
DE 4/14 – Country of Origin: IN
DE 4/17 – Preference Code: Applicable India FTA code
DE 2/3 – Document Code: Proof of origin reference

Commodity Code: Correct 10-digit tariff code

CDS is the UK’s system for submitting import and export declarations and applying tariff measures

Step 4: Submit and Retain Documentation

Once submitted:

  • Retain all supporting documentation
  • Ensure audit trail is complete
  • Be ready to provide evidence if requested by HMRC

Record keeping is a core compliance requirement for preferential trade claims.

When You Should NOT Claim Preference

You must not claim preferential duty if:

  • Origin cannot be confirmed
  • Proof of origin is unavailable
  • Goods fail origin rules

In these cases, you must pay the full UK duty rate. UK-India

Common Errors to Avoid

Incorrect Origin Claims

Failure to validate supplier origin is the most common issue in trade agreement audits

Missing or Incorrect Proof

Preferences will be rejected without valid documentation

Commodity Code Errors

Incorrect classification affects:

  • Duty rate
  • Origin rule
  • Compliance status
Compliance Responsibilities

As the importer of record, you are responsible for:

  • Verifying origin claims
  • Submitting accurate CDS declarations
  • Maintaining full documentation

Even where agents submit declarations, legal responsibility remains with the importer.

Practical Sample

Successful Claim
Origin confirmed, Proof of origin held, and CDS completed correctly results in reduced or zero duty applied.

Failed Claim
Origin declared but no proof available; this results in full duty payable and potential HMRC review

How Uniexpress Can Support You
We offer tailored support including:
– Origin validation and supplier engagement
– CDS declaration review and setup
– Duty saving opportunity analysis
– Ongoing compliance support

For further guidance or to review your imports under the UK–India FTA

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