India’s Directorate General of Foreign Trade (DGFT) has invited applications from eligible businesses seeking Tariff Rate Quota (TRQ) allocations for importing specified categories of vehicles from the United Kingdom (UK) during Calendar Year (CY) 2027. The invitation was issued through Public Notice No. 39/2026-27 dated 6 November 2026.
The TRQ mechanism under the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) provides preferential customs duty arrangements for specified UK-origin products, subject to prescribed quantity limits and eligibility requirements.
This notice is relevant to UK vehicle manufacturers, original equipment manufacturers (OEMs), authorised dealers and channel partners seeking to import eligible vehicles into India under the agreement.
Evaluate CETA Benefits
Assess product-level tariff treatment, rules-of-origin requirements, and potential savings under the India-UK CETA.Vehicle categories and TRQ quantities for 2027
DGFT has prescribed a combined quota of 27,250 vehicles across specified passenger and goods vehicle categories for 2027.
|
Vehicle category |
TRQ quantity |
|
Petrol and diesel vehicles with engine capacity not exceeding 1,500 cc |
6,000 |
|
Petrol vehicles above 1,500 cc up to 3,000 cc; diesel vehicles above 1,500 cc up to 2,500 cc |
6,000 |
|
Petrol vehicles above 3,000 cc; diesel vehicles above 2,500 cc |
12,500 |
|
Goods transport vehicles, excluding electric and hydrogen-fuel vehicles |
2,750 |
|
Total |
27,250 |
Source: DGFT, Ministry of Commerce and Industry, Government of India
The passenger vehicle categories cover completely built units (CBUs) that have not been registered anywhere before importation. The goods transport vehicle category also covers CBUs but excludes electric and hydrogen-fuel vehicles.
These prescribed quantities establish the maximum allocations available across the respective categories. Businesses must apply for the relevant category based on the specifications of the vehicles they intend to import.
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Eligibility criteria for TRQ applications
Under the procedure prescribed by DGFT through different public notice No. 19/2026-27 dated 9 July 2026, the following entities can apply for TRQ allocations:
- OEMs of vehicles originating in the UK
- Dealers and channel partners authorised by the relevant UK vehicle manufacturers
Applicants must submit a pre-purchase agreement issued by the UK vehicle manufacturer. The agreement must specify the quantity of vehicles that the manufacturer has agreed to supply for import into India during the relevant quota year.
This requirement establishes a manufacturer-backed basis for determining the quantity requested by an applicant.
TRQ application deadlines
DGFT has opened the application window for 2027. Eligible businesses must submit their applications online through the DGFT portal.
|
Particulars |
Details |
|
Date of notification |
6 November 2026 |
|
Application opening date |
6 November 2026 |
|
Application closing date |
21 November 2026 |
|
Quota period |
1 January – 31 December 2027 |
Businesses intending to benefit from preferential customs duty arrangements should complete their applications within the prescribed period.
How India’s DGFT allocates the TRQ
The allocation process depends on the total quantity requested by eligible applicants compared with the available quota.
Where applications remain within the prescribed quota, eligible applicants may receive the quantities requested, subject to the applicable conditions. Any unallocated balance may subsequently be opened for further applications.
Where the total quantity requested exceeds the available quota, DGFT distributes the available quantity proportionately among eligible applicants. This is based on their respective requests under the pre-purchase agreements.
DGFT also monitors the utilisation of allocated quotas.
Import requirements after TRQ allocation
Receiving a TRQ allocation does not automatically complete the import process. Businesses must also fulfil the applicable customs, product eligibility and rules of origin requirements under CETA.
Key requirements include:
- Obtain DGFT authorisation: Importers must secure the relevant TRQ authorisation before claiming the preferential tariff benefit.
- Meet product eligibility requirements: Imported vehicles must satisfy the prescribed vehicle specifications and applicable conditions under the agreement.
- Provide a Certificate of Origin (CoO): Importers must produce a CoO issued by the competent UK authorities to establish that the vehicles qualify as UK-originating products.
- Comply with allocation limits: The imported quantity must remain within the quantity specified in the TRQ authorisation and its validity period.
- Complete customs formalities: Importers must ensure the electronic debit of the allocated quantity through the Indian Customs Electronic Data Interchange System (ICES).
The TRQ authorisation remains valid for a maximum of 12 months or until the end of the relevant calendar year, whichever is earlier.
Business implications for UK auto manufacturers and Indian importers
The 2027 TRQ application process provides a structured mechanism for eligible UK vehicle manufacturers and their authorised Indian dealers to access preferential customs duty arrangements under CETA.
For UK automobile manufacturers, the quota creates an opportunity to expand vehicle exports to India through eligible commercial partners. Indian importers and authorised dealers can use the allocation mechanism to plan procurement volumes, assess landed costs and organise import schedules for 2027.
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However, businesses should not assume that all vehicle imports originating in the UK automatically qualify for preferential customs treatment. Access to the tariff concession depends on obtaining the prescribed TRQ allocation and fulfilling applicable product eligibility, origin certification and customs requirements.
Companies should evaluate their expected import volumes, secure manufacturer-backed pre-purchase agreements, identify the applicable vehicle categories and submit applications within the 21 November deadline.
Conclusion
The central government’s invitation for 2027 TRQ applications establishes the application and allocation process for importing specified UK-origin vehicles into India under the India-UK CETA.
With a combined quota of 27,250 vehicles across the notified categories, the framework provides eligible manufacturers and authorised importers with an opportunity to access preferential customs duty arrangements within prescribed quantity limits.
Businesses planning vehicle imports in 2027 should prioritise application preparation, verify eligibility requirements and coordinate with UK manufacturers to complete the necessary documentation within the prescribed timeframe.