DGFT opens 2027 UK vehicle import quotas, applications close on 21 November

The Directorate General of Foreign Trade (DGFT) has opened applications for concessional imports of 27,250 vehicles from the United Kingdom under the India–UK Comprehensive Economic and Trade Agreement (CETA) for calendar year 2027. Eligible importers can apply between 6 and 21 November 2026 for allocations covering passenger cars and goods vehicles.

The exercise follows the agreement’s entry into force on 15 July 2026 and moves vehicle import allocations into the next calendar year. In September, DGFT approved applications from seven companies covering 642 cars for the remainder of 2026.

Which vehicles are covered by the 2027 quotas?

Public Notice No. 39/2026-27, dated 6 November, provides for 24,500 passenger cars and 2,750 goods vehicles, imported as Completely Built Units (CBUs).

The passenger-car allocation comprises three categories:

• 6,000 vehicles with engine capacity not exceeding 1,500 cubic centimetres (cc).
• 6,000 vehicles with petrol engines exceeding 1,500 cc but not exceeding 3,000 cc, or diesel engines exceeding 1,500 cc but not exceeding 2,500 cc.
• 12,500 vehicles with petrol engines above 3,000 cc or diesel engines above 2,500 cc.

Passenger vehicles must not have been registered anywhere before importation. The separate goods-vehicle quota excludes electric and hydrogen-fuelled vehicles.

Who can apply for an allocation?

Eligibility is restricted to Original Equipment Manufacturers (OEMs) and dealers or channel partners authorised by manufacturers of UK-origin vehicles. The application window therefore serves qualifying automotive businesses seeking access to the agreement’s vehicle import concessions.

Applicants must provide an OEM-issued pre-purchase agreement specifying quantities to be supplied under each quota. Applications are submitted through the DGFT website’s Import Management System, under the Tariff Rate Quota (TRQ) section.

Where demand exceeds availability, allocations are proportionate to eligible applicants’ requested quantities. Where demand is lower, eligible requests are met and the balance becomes available for further applications. Significant under-utilisation can affect an importer’s subsequent allocation.

How do the concessions fit into the trade agreement?

The 2027 exercise forms part of a longer programme of preferential automotive trade. Under CETA, India has provided for imports of 378,000 conventional-engine passenger cars from the UK at concessional customs duty during the agreement’s first 15 years. This includes vehicles in the mass-market segment.

The tariff schedule phases reductions over several years. Its second-year passenger-car rates are 25% for the largest engine category and 40% for the two smaller categories. The schedule reaches 10% for these categories from year five. Consequently, the agreement’s eventual 10% rate should not be treated as a uniform concession applying immediately to all eligible cars.

What must importers complete before customs clearance?

Importers must present a UK-issued Certificate of Origin at clearance. DGFT issues authorisations electronically and transmits them to the Indian Customs Electronic Data Interchange System, where imports are debited against the allocation.

Certificates remain valid for up to 12 months or until calendar year-end, whichever comes first. Customs clearance must occur within that validity period. Importers are also expected to endeavour to pass the concessional-duty benefit to final buyers.

For vehicle logistics providers, the clearance deadline makes shipment scheduling an operational consideration: an allocation must translate into imports cleared within its authorised period. Quota administration remains subject to review from 2028, while DGFT retains powers to revise its conditions.