India–UK Trade Deal (CETA) and Leather Goods: What Zero Duty Means for UK Brands

By Apollo Fashion International Editorial Team · Published Jul 28, 2026

Under the India–UK Comprehensive Economic and Trade Agreement (CETA), leather and footwear duties of up to 16% are removed, so qualifying originating goods from India can enter the UK at 0% duty. To benefit, a UK brand needs goods that meet the agreement's origin requirements and a valid proof of origin. CETA entered into force on 15 July 2026, so it is now live for planning and buying.

That is good news for UK brands that import jackets, bags, belts and footwear. But zero duty is only one part of your cost, and only for goods that qualify. This guide covers what changed, what proof of origin means in practice and how to think about landed cost without guessing numbers.

What CETA changes for leather and footwear

The agreement gives India duty-free access to the UK market for about 99% of its tariff lines. For leather, leather products and footwear, duties that were previously as high as 16% are removed. The 0% rate applies to qualifying originating goods, and the importer needs a valid proof of origin, such as a certificate of origin or an origin declaration from the exporter, to claim it.

The trade figure shows that UK-India leather trade already exists at scale. For goods that qualify, CETA removes the duty cost on that trade.

What zero duty means, and what it does not

Zero duty applies to the import duty line on your customs entry. It does not make the shipment free of other charges. These still apply:

• Freight and insurance from India to the UK.
• Import VAT, which is a separate tax from duty and affects cash flow. Confirm how it applies to your business with your accountant or broker.
• Customs clearance and broker fees, port or airport handling and inland delivery.
• Quality, compliance and testing costs, including labeling that your product category requires.
• Currency movements between the contract currency and pounds.

Zero duty also applies to goods that qualify. Goods that do not meet the origin requirements may still be charged the normal rate. This is the point most buyers miss when they hear that duties are removed.

Does it cover every leather product?

The agreement covers about 99% of India's tariff lines, but the practical question is how your specific product is classified. Jackets, bags, belts and footwear can fall under different commodity codes. Ask your broker to confirm the code and the duty treatment for each product before you quote retail prices.

Proof of origin, explained simply

A trade agreement gives preferential treatment to goods that originate in the partner country. Proof of origin is the paperwork that shows your goods qualify. In plain terms:

1. The goods must meet origin rules. These rules look at where materials come from and where manufacturing steps happen. They differ by product.
2. The exporter or manufacturer provides documentation. This is typically a certificate or an origin declaration, in the form the agreement requires.
3. The importer presents it at the border. Your customs broker uses it to claim 0% duty.
4. Records need to be kept. Customs authorities can ask for supporting evidence later, such as supplier documents and production records.

The detail matters. The exact wording of the rules, the format of the document and who may issue it should be confirmed with your customs broker or a trade adviser before your first CETA shipment. Do not rely on a supplier's assurance alone.

Ask any Indian manufacturer how they document material sources and production steps for origin claims. Shorter, better-documented supply chains generally make origin evidence easier to assemble than long chains of subcontractors.

Landed-cost thinking: duty is only one line

Landed cost is the full price of getting a product to your warehouse, and ultimately your margin depends on it. Think of it as a stack of lines rather than one number.

A useful habit is to calculate landed cost for each product under two scenarios: duty at 0% because goods qualify, and duty at the standard rate if documentation fails. If your margin only works in the first scenario, you need airtight origin paperwork from day one. This guide deliberately does not give sample numbers, because freight, product and currency inputs vary too much to generalize.

What to do this quarter: an action list for UK buyers

CETA is now in force, so it is worth planning now rather than waiting. Practical steps for the coming months:

1. List your products and commodity codes. Work with your broker to classify each style: jackets, bags, belts, small leather goods, footwear.
2. Check which products qualify. Ask your broker how the origin rules apply to your materials and construction.
3. Request duty-ready quotes. Ask suppliers to quote with clear Incoterms, itemized packaging and a statement of how origin documentation will be provided.
4. Rebuild your landed-cost model. Use the table above. Run both duty scenarios.
5. Ask suppliers about origin evidence. Where do materials come from, which steps are in-house and which records are kept?
6. Plan a test order. Use a smaller first shipment to verify paperwork and customs clearance before a major season order.
7. Review your supplier mix. Compare India with other sourcing countries such as Turkey, Portugal, Vietnam, Bangladesh, China or Pakistan, based on each country's current UK terms, quality and lead time. For a broader comparison, see India vs China vs Pakistan vs Turkey: Where Should You Source Leather Goods?.
8. Set a review date. Trade rules can be updated, so schedule a check with your broker before each new season.

If you also sell in the EU

India–EU free trade agreement negotiations concluded on 27 January 2026. Leather and footwear tariffs of up to 17% are due to go to zero once the agreement is ratified and implemented. At the time of writing, ratification was still pending. Separately, the EU suspended GSP preferences for many Indian product groups from 1 January 2026, so EU buyers should check the current duty for each product with their broker before ordering. Brands that also import into the US can find that position in US Tariffs on Leather Goods from India in 2026: What US Brands Need to Know.

Frequently asked questions

What is the UK import duty on leather footwear from India after CETA?

For qualifying originating goods with a valid proof of origin, the duty is 0%. Before CETA, leather and footwear duties of up to 16% applied. To claim 0%, you need proof of origin, and your broker should confirm the commodity code and the duty treatment of your product.

When did the India–UK trade deal take effect?

CETA was signed on 24 July 2025 and entered into force on 15 July 2026. It provides UK duty-free access for about 99% of India's tariff lines, including leather and footwear for qualifying goods.

Do I need a certificate of origin for India UK shipments?

Yes, you need a proof of origin to claim the preferential 0% rate. More than one form exists, such as a certificate of origin or an origin declaration made by the exporter, so confirm which applies to your shipments with your customs broker. Ask your supplier early so documents are ready before shipment.

Does zero duty mean sourcing from India is always cheaper?

No. Duty is only one part of landed cost. Freight, insurance, VAT, clearance costs, quality and lead times all affect the result. Compare suppliers on full landed cost and reliability, not duty alone.

Can UK brands buy from Indian manufacturers in small quantities?

Often yes, but MOQs vary by factory and product. Ask the manufacturer about its current minimums and sampling process, and see Leather Goods MOQ Explained: Minimum Order Quantities for Bags, Jackets, Shoes and Belts for how MOQs work in general. A smaller first shipment is also a sensible way to test your customs and origin paperwork.

Conclusion

India UK CETA leather goods trade is now operating under new rules: duties of up to 16% on leather and footwear are removed for qualifying originating goods, with proof of origin required. Treat the agreement as an opportunity to rebuild your costing, tighten supplier documentation and test a first shipment. Always confirm the rules for your products with a customs broker.