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On 16 September 2026 the Directorate General of Foreign Trade (DGFT) approved applications from seven companies to import 642 cars from the UK at concessional duty.
This was the first allocation under the 2026 tariff rate quota (TRQ) of the India-UK Comprehensive Economic and Trade Agreement (CETA), in force since 15 July 2026.
Eight companies applied for a 2026 quota of about 5,000 vehicles; seven were approved and one got a deficiency certificate.
Within the quota, duty on UK automobiles falls from about 110% to 10%. India has committed to 3.78 lakh conventional-engine passenger cars over the first 15 years.
A two-tier tariff. Imports up to a fixed quantity pay a low in-quota duty, and anything beyond pays the normal, higher rate. It opens a market step by step while shielding domestic producers from a sudden flood.
Simple Analogy: A happy-hour discount that stops after the first 5,000 orders.
Frames and administers India's import-export policy, including TRQ allocation
Empowers the Centre, through DGFT, to regulate imports and exports and to issue the Foreign Trade Policy.
Signed July 2025, in force 15 July 2026. It sets the automobile TRQ and the 10% in-quota duty.
General Awareness > Trade policy and agreements
GS Paper III > Economy > External sector, trade agreements
Consider the following statements: 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The Government does not impose any customs duty on all the imported edible oils as a special case. Which of the statements given above is/are correct?
Answer: 1 only
Tariff rate quota: lower duty within a fixed import volume, higher duty above it
Original Equipment Manufacturer
A notice that an application falls short of eligibility or documentation