Understanding Rules of Origin under the UK-India Free Trade Agreement (FTA)

Register with HMRC if you’re planning to complete origin declarations for exports under the UK-India Free Trade Agreement

The UK-India Free Trade Agreement (FTA) is creating new opportunities for Northern Ireland businesses to strengthen trade links with India. 

UK businesses that plan to complete origin declarations for exports to India under the agreement must register with HMRC before claiming preferential tariff treatment.

To benefit from the agreement’s preferential tariff rates, it is important to understand rules of origin, which determine whether goods qualify for preferential tariffs.

What are rules of origin?

Rules of origin determine whether a product is considered to originate in the UK or India for trade purposes. Only goods that meet the agreement’s rules of origin are eligible for the preferential tariff rates available under the UK-India Free Trade Agreement.

How can businesses take advantage of the UK-India FTA?

Businesses should review their supply chains, sourcing arrangements and origin documentation to ensure they are ready to trade under the agreement.

Understanding and complying with the rules of origin can help businesses access reduced or zero tariffs and improve their competitiveness in the Indian market.

If your business exports goods to India, or is exploring opportunities in the market, now is the time to check whether your products meet the rules of origin requirements and to register with HMRC if you need to complete origin declarations.

Who needs to register with HMRC?

You need to register with HMRC if both of the following apply

• you are a UK producer or exporter of goods originating in the UK that are being exported to India
• you want those goods to qualify for preferential tariff treatment under the UK-India Free Trade Agreement

How the authentication process works

• registration with HMRC is a one off process and covers all future exports under the agreement 
• HMRC shares a database of registered UK exporters with Indian customs authorities 
• each shipment, the UK exporter sends an origin declaration to the Indian importer and provides a copy to Indian customs for authentication
• Indian customs authorities check the declaration against the HMRC database before applying the preferential tariff rate.

Find out more and register with HMRC.