What if your next import from the UK… didn’t attract any customs duty?

[Pradeep Reddy]

No, this isn’t a scam.

It’s real—the India–UK Free Trade Agreement just made that possible.

And it’s packed with benefits Indian importers (actually, the UK businesses) should pay attention to. 👇

🛃 64% of UK products will be duty-free from Day 1

📉 Customs Duty on UK whisky to be reduced from 150% of sale price → 75% now, and 40% by Year 10. You’ll still pay more for the glass than the spirit.

🚗 UK cars get tariff cuts from 100 %+ to 10% under quota, starting with ICE, moving to EVs, and hybrid cars. Recently, the US has started getting such benefit (With Trump 2.0 back in power), now it's the UK's turn).

💄 Cosmetics & toiletries like nail polish, face cream, and shaving kits— get tariffs cut or removed (because smooth skin deserves smooth imports).

📦 90% of tariff lines to be reduced/removed, affecting 92% of UK imports to India.

📄 Customs clearance promised in 48 hours (one has to wait and watch this!, given such promises were made in other agreements as well), with options for duty deferral and paperless trade

And here’s the twist… Rules of Origin

Even if UK goods contain third-country inputs, they can still qualify for duty concessions under the flexible Rules of Origin ⚙️

(Yes—UK whisky using Irish barley still gets the reduced tariff!)

India- UK FTA is expected to provide an estimated annual tariff cuts of around ₹4,200 crores, projected to double to nearly ₹9,500 crores in 10 years, for the Indian importers.

That’s not just a tariff cut—it’s a margin makeover for indian importers and a negotiation window opener for the UK's exporters!

📌 What happens next? The deal isn’t in force yet.

Legal text is being finalised—once signed and ratified, the benefits will begin rolling in.

💡 Importers, Tax heads, Tax managers, CFOs—this is the time to revisit your landed cost assumptions for your imports from the UK