UK–India Trade Deal 2026: How to Import Indian Handicrafts to the UK Duty-Free

Oct 6

3 min read

Updated: Oct 9

For UK gift shops, homeware brands and interior retailers, 2026 is the year Indian handicrafts became noticeably cheaper to land. The UK–India Comprehensive Economic and Trade Agreement (CETA) came into force on 15 July 2026, and the UK now removes tariffs on almost all goods made in India. This guide explains what changed, what you need to claim the zero tariff, and how to work with handicraft exporters from India so your paperwork is right first time. Follow these steps each time you import Indian handicrafts to the UK.

Tower Bridge in London, gateway for Indian handicraft imports into the UK

What the UK–India agreement means when you import Indian handicrafts to the UK

The UK Government’s summary of the deal states that tariffs are being eliminated on 99% of Indian goods. The House of Commons Business and Trade Committee reported that more than 99% of the value of India-to-UK trade is tariff-free from day one, and noted that UK imports of ceramics from India grew from £15 million in 2015 to £117 million in 2024. For buyers of Jaipur blue pottery, Saharanpur wood carving, hand block printed textiles, epoxy resin homeware and cotton patchwork bags, this means the UK import duty that used to sit on top of your landed cost can fall to zero, provided you claim preference correctly.

Sources: GOV.UK – UK-India FTA enters into force on 15 July · UK Parliament Business and Trade Committee report

Step 1: Get a GB EORI number

To import into England, Scotland or Wales you need an EORI number that starts with GB. Your customs agent or freight forwarder will use it on the import declaration. The commodity code on that declaration decides the duty rate, so agree the codes with your supplier before the goods ship.

Step 2: Make sure the goods qualify as Indian origin

Preference only applies to goods that are wholly obtained or sufficiently transformed in India. Handmade products such as blue pottery, carved wood and block printed cotton made in Indian workshops normally meet this test, but your exporter should confirm the rule for each product code. Goods must also travel directly; if they pass through a third country they should stay under customs control.

Step 3: Choose how origin will be proved

The UK Trade Tariff guidance lists three ways to support a preference claim on goods from India:

An origin declaration made by the exporter on the invoice or another commercial document.
A certificate of origin issued by an authorised body in India.
Importer’s knowledge, where you hold the evidence yourself.

Under the Rules of Origin chapter of the agreement, proof of origin is valid for 12 months, the UK may waive proof for consignments up to £1,000, and importers must keep records for at least four years. If you forget to claim at import, preference can generally be claimed afterwards within one year. See UK Trade Tariff – India FTA in force and the CETA Chapter 3 (Rules of Origin).

Step 4: Account for import VAT

A zero tariff does not remove VAT. Import VAT is normally charged at the same rate as if the goods were supplied in the UK. VAT-registered businesses can use postponed VAT accounting, which helps cash flow on larger container orders.

DCTS or CETA: which should you use?

India is graduating from the UK’s Developing Countries Trading Scheme (DCTS) on 15 July 2028. Until then importers may claim preference under either scheme. In practice most buyers now use CETA, because for most handicraft lines it already gives a zero rate.

What to ask your Indian handicraft supplier

The HS/commodity code proposed for each product.
Whether they will provide an origin declaration or a certificate of origin with every shipment.
Confirmation that products are made in India and shipped directly to the UK.
Food-contact test reports for ceramic or resin serveware (see our UK food-contact guide).

Kraft Bharat is a handmade handicraft manufacturer and exporter in India supplying UK retailers with GI-tagged Jaipur blue pottery, Saharanpur wood carving, Sanganeri block prints and resin homeware. Contact our export team for a UK quotation with origin documents included.

This article is general guidance, not legal or customs advice. Always confirm the duty rate for your commodity code on the UK Trade Tariff or with your customs broker.