India Import Spotlight: UK–India Trade Deal Meets a Challenging Market
With the new UK–India Free Trade Agreement coming into effect on 15 July, attention is turning to India–UK imports at a time of increasingly challenging market conditions.
The UK Government says tariffs will be eliminated on 99% of Indian goods, improving access for products such as apparel, textiles, and other key imports. However, preferential tariff treatment will not apply automatically just because goods are shipped from India. Products must meet the agreement’s rules of origin, which determine whether they qualify as being produced in India.
The deal will not benefit some domestic-sensitive sectors, including sugar, milled rice, pork, chicken and eggs. The biggest UK import impact is expected to be across consumer goods, including textiles, clothing, footwear, jewellery and furniture.
While the new trade deal is encouraging for the market, its launch comes at a difficult time. Peak season demand is currently coinciding with capacity constraints, making westbound bookings increasingly hard to secure. Many carriers are now booked four to six weeks in advance.
As with other Asian markets, freight rates are rising and peak season surcharges are being applied. Further carrier increases have also been announced from 15 July. Service reliability remains inconsistent and varies significantly by carrier, with some service loops achieving below 30% on-time arrivals.
Port congestion is also increasing. Vessel waiting times at Kochi and Mangalore are approaching two weeks, while Mumbai, Nhava Sheva, Tuticorin, Kolkata and Mundra are seeing delays of around two to three days.
As the new trade deal increases the focus on origin rules, commodity codes and supporting documentation, effective customs brokerage and compliance will be essential for importers looking to take advantage of any available tariff benefits.
Atlantic Pacific are supporting customers across both Indian import services and Customs Brokerage, helping ensure shipments are correctly declared, compliant and managed smoothly from door to door. Please contact a member of the team to discuss how we can help.
