India announces tariffs and quotas for U.K. vehicle imports under new trade deal
The Indian government has released the tariffs and quotas for automobile imports from the United Kingdom under the India-U.K. Comprehensive Economic and Trade Agreement (CETA), effective July 15. Initially, 20,000 completely built units (CBUs) of petrol and diesel passenger vehicles will be allowed at concessional rates of 30-50%, depending on engine size, down from the normal 66-110% duty. This quota will increase to 37,000 cars by year five, settling at a 10% tariff, then gradually decrease to 15,000 by year 15. Concessions for electric vehicles, hybrids, and hydrogen-based passenger vehicles will begin from year six, based on cost.
Key Points
- India has finalized tariffs and quotas for U.K. automobile imports under the India-U.K. CETA.
- Initially, 20,000 petrol and diesel CBUs will be imported at concessional rates of 30-50%.
- The quota for conventional vehicles will increase to 37,000 by year five, with tariffs settling at 10%, then decrease to 15,000 by year 15.
- Concessions for alternate fuel vehicles (EVs, hybrids, hydrogen) will commence from year six of the deal.
Exam Facts
- Agreement: India-U.K. Comprehensive Economic and Trade Agreement (CETA).
- Effective date: July 15.
- Initial quota: 20,000 completely built units (CBUs) of petrol and diesel PVs.
- Concessional rates: 30-50% (down from 66-110%).
- Quota in year five: 37,000 cars, tariff 10%. Quota in year 15: 15,000 cars.
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