Effective: 15th July 2026
Welcome
The UK–India Free Trade Agreement (FTA) presents a valuable opportunity to reduce import duty costs, and 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). CDS is the UK’s system for submitting import and export declarations and applying tariff measures.
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
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
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.
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
- Duty rate
- Origin rule
- Compliance status
Compliance Responsibilities
As the importer of record, you’re responsible for:
- Verifying origin claims
- Submitting accurate CDS declarations
- Maintaining full documentation
Even where agents submit declarations, legal responsibility remains with the importer.
Practical Example
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 read the UK-India Comprehensive Economic and Trade Agreement (CETA)
