India–UK Trade Deal: Zero Import Duty on Clothing for UK Boutiques

September 22, 2026

Since 15 July 2026, the India–UK Comprehensive Economic and Trade Agreement (CETA) has been in force. For UK boutiques, gift shops and lifestyle stores, the headline is simple: clothing and textiles made in India that meet the agreement's origin rules now enter the UK with zero customs duty.

Before the deal, most garments imported from India paid UK import duty, typically in the range of 8–12% of the goods' value. On a £1,500 wholesale order, that was often well over £100 in duty on top of freight and VAT. That cost has now gone for qualifying goods.

What changes for a boutique buying from India

No customs duty on qualifying Indian-made clothing, bags and textiles.
Import VAT still applies at the standard UK rate. If your business is VAT-registered, you can normally reclaim it on your VAT return.
Better margins or sharper retail prices. Factory-direct pricing plus zero duty leaves more room than buying through a UK middleman.

What paperwork is needed?

Under CETA, the exporter or producer declares that the goods originate in India, usually with a statement on origin on the commercial invoice. As the importer, you keep that declaration with your records in case HMRC asks to check it later.

When you order from House of Jamoti, the origin statement is included with your shipping documents, along with the commercial invoice and packing list. The carrier or your customs broker uses these to clear the goods at the preferential zero rate.

Does every product qualify?

Goods must meet the agreement's rules of origin, which set how much of the making has to happen in India. Everything we sell is designed, cut, printed, stitched and finished in our own factory in Jaipur, so our pieces are made in India from start to finish.