The Motor Cycle Industry Association (MCIA) has issued a bulletin on the new trade agreement signed between the UK and India last month. The trade body has welcomed the deal as a good one for the bike industry, while offering practical advice on tariffs and duties for firms involved in import/export deals between the two countries.
The MCIA’s summary says that India has agreed to reduce import duties on select UK vehicles from over 100% to 10% within a quota system, with phased liberalisation and different timelines for some categories. UK duties on Indian components are expected to drop to zero from their current range of 4-16%.
The full scope for tariffs on motorcycles and L-category vehicles remains to be clarified. However, the MCIA has received advice from the Department for Business and Trade (DBT), including full tariff schedules. The full tariff schedule for UK exports to India (click here) has details on motorcycles and motorcycle parts from page 1314 onwards. And for Indian imports to the UK (click here), the information for bikes can be found on page 25 of the schedule. Finally, there’s an explanatory annex, which will help clarify the schedules. Fun bedtime reading for all the family!
Following the trade deal, the MCIA is planning its next steps. It’s engaging with the DBT and has written formally to the department requesting full sector-specific detail. MCIA staff are also briefing parliament and key stakeholders to highlight the potential for motorcycle and L-category exports. The association is also seeking input from members to help strengthen the evidence base and press the government for wider and faster access under the Free Trade Agreement.
The MCIA is encouraging the trade to take its own steps, including sharing the MCIA’s statement on corporate social media channels, highlighting UK manufacturing credentials and export ambitions to India, and providing feedback to the MCIA on export interests or barriers.