The Central Board of Indirect Taxes and Customs (CBIC) has issued a significant trade facilitation measure for companies using the India-UK Comprehensive Economic and Trade Agreement (CETA). According to a customs circular dated September 24, a valid Origin Declaration will now suffice to claim concessional duty on UK consignments, eliminating the requirement to file Form-I with every bill of entry. The Board clarified that Form-I is not required with the bill of entry and is not a precondition for the CETA duty cut. The new guidelines establish that importers can generally claim preferential tariff rates based on a valid Origin Declaration furnished by the exporter or producer in the UK, with Form-I sought only when customs identify specific origin risks.
The new guidelines represent a shift from routine, importer-led collection of origin data to targeted, risk-based checks aligned with CETA's self-certification design. As reported by multiple sources, customs authorities may still seek Form-I particulars only if the National Risk Management System (NRMS) flags the shipment for origin scrutiny and the officer has reason to believe the origin rules have not been met. The revised process means importers will not ordinarily need to obtain confidential commercial or production information from UK exporters or producers to support preferential tariff claims, and the failure to furnish such information by itself will not be sufficient grounds to deny preferential tariff treatment. The measures are expected to reduce documentation at the import stage, limit repeated requests for information from overseas suppliers and help streamline customs clearance for eligible UK-origin shipments.
Industry experts have welcomed the regulatory change as a significant improvement in trade facilitation. According to Business Standard, Gautam Khattar from Price Waterhouse & Co LLP noted that the circular shifts the regime from routine importer-led collection to targeted risk-based checks. Amit Maheshwari from AKM Global emphasized that the circular puts the CETA's Origin Declaration back in the driver's seat instead of Form-I, reducing friction around claiming concessional rates. The simplified process could be particularly useful for micro, small and medium enterprise (MSME) importers with limited resources for managing detailed customs compliance.
The new guidelines establish clearer procedures for handling disputes and repeat shipments. As reported by Business Standard, later consignments must not be treated as identical to an earlier rejected shipment merely because the description, tariff classification, or exporter looks similar. The importer must get a chance to place fresh facts on record, and if goods differ in any material way relevant to origin, the new claim must be examined on its own. Where CAROTAR clashes with the treaty's origin rules, the treaty prevails. CBIC has also clarified the treatment of "identical goods" during origin verification, providing greater clarity for customs scrutiny and potentially making the verification process more predictable for importers.
The regulatory change addresses long-standing concerns about procedural complexity in claiming CETA benefits. According to Business Standard, importers had long feared that one adverse finding would become a blanket denial for every future shipment. The new framework requires customs officers to see whether later goods are truly identical from an origin standpoint and give importers a chance to bring facts on record. Industry experts view this as a trade-friendly signal, though success will depend entirely on how consistently ports apply these new procedures. The CETA rules of origin came into force on July 15, 2026, alongside the wider trade agreement, with the revised documentation requirements taking effect shortly thereafter.
