Intro: For years, the honest answer to "what duty will my goods pay entering the UK?" was "it depends — and often more than you'd like." The India–UK Comprehensive Economic and Trade Agreement changes that answer for almost every D2C category. Here's what the deal actually does, how to claim the benefit, and — just as important — what it does not do.
What CETA is
CETA — the India–UK Comprehensive Economic and Trade Agreement — is the bilateral free trade deal between India and the United Kingdom. It was signed in July 2025 and entered into force in 2026 after both parliaments ratified it.
In plain terms: the two governments agreed to cut or remove the customs duties charged when goods cross between them. It is the UK's largest tariff-reduction package since Brexit, and for Indian exporters it is the most significant trade development in years.
99% of Indian goods enter the UK duty-free
The headline number for an Indian D2C brand: under CETA, around 99% of Indian tariff lines can enter the UK duty-free. For the categories Indian D2C brands actually sell — apparel, textiles, leather, footwear, jewellery, food — that overwhelmingly means a 0% UK customs duty rate.
Before CETA, many of these categories carried a UK most-favoured-nation duty of several percent on the customs value. On a £50,000 shipment, even a modest rate is a four-figure cost per consignment. CETA removes it for qualifying goods — real money, on every shipment, for the life of the agreement.
Which D2C categories benefit
The categories that matter most to Indian consumer brands are squarely inside the duty-free scope:
| Category | UK duty before CETA | UK duty under CETA |
|---|---|---|
| Apparel & garments | Up to ~12% | 0% |
| Textiles & home furnishings | Up to ~8% | 0% |
| Leather goods | Up to ~8% | 0% |
| Footwear | Up to ~16% | 0% |
| Jewellery & imitation jewellery | Up to ~4% | 0% |
| Processed & packaged foods | Varies by line | 0% on most lines |
Rates above are indicative pre-CETA most-favoured-nation duties — always confirm your specific commodity code. The direction, though, is consistent: for Indian-origin consumer goods, the UK duty line goes to zero.
How to claim it — proof of origin
CETA duty relief is not automatic. UK customs will apply the standard duty rate unless your shipment actively claims preference. The mechanism is a proof of origin.
- Claim preference on the import declaration. Your UK customs entry must state that the goods are of Indian preferential origin under CETA.
- Hold a valid proof of origin. Depending on how the agreement is operated for your goods, this is either a certificate of origin from an approved Indian authority or an origin declaration made by the exporter. Confirm the current form with your customs broker.
- Meet the Rules of Origin. The goods must genuinely originate in India — wholly produced there, or substantially transformed there. A kurta cut and stitched in India qualifies. Goods merely trans-shipped through India do not.
- Keep your records. Origin evidence must be retained — customs can audit a preferential claim after clearance.
CETA isn't automatic
The duty saving is real, but only a shipment that actively claims preference, with valid origin proof, gets it. A claim left unmade is full duty paid — on every parcel, every time. Build origin proof into your standard shipping pack, not as an afterthought.
What CETA does not do
CETA is a tariff agreement. It is not a magic wand. Three things it explicitly does not change:
- It doesn't remove UK VAT. 20% VAT still applies on your UK sales. CETA cuts customs duty, not consumption tax — these are different things.
- It doesn't help you sell into the EU. CETA is India–UK only. Goods you move on from the UK into the EU are a separate problem with separate rules.
- It doesn't remove UK compliance. Product safety, labelling, and registration requirements are unaffected. Duty-free is not rule-free.
Common mistakes
The four we see most often:
- Not claiming preference at all. Assuming the deal applies automatically. It doesn't — the claim must be made on each entry.
- Wrong commodity code. Preference is claimed against a specific code. A mismatch between your invoice and the declaration breaks the claim.
- No origin evidence on file. A claim you can't substantiate in an audit is a claim that gets reversed, with duty and penalties.
- Assuming CETA covers UK→EU movement. It does not. That leg is governed by entirely different agreements.
Xeliport files UK customs entries with the CETA preference claimed and the origin proof attached as standard — so qualifying Indian goods clear the UK at 0% duty on every shipment, not just the ones someone remembered to flag. You stay an Indian company; the paperwork is ours.