Readiness Report · Sample

Sharma Textiles Pvt. Ltd.

HS 5208.12 · India–UK CETA · Prepared by Provenance

June 2026Eligible

Executive Summary

Eligible for preferential tariff benefits.

This product qualifies for zero duty under India–UK CETA. At ₹2,00,00,000 annual export volume, the annual tariff saving is ₹24,00,000 — a reduction from 12% MFN duty to 0% preferential duty. The product satisfies the Change of Tariff Heading (CTH) test under Annex 3A of the agreement.

Tariff Benefit Analysis

MFN Duty Rate

12.00%

Preferential Rate

0.00%

Annual Saving

₹24,00,000

per year at ₹2 Cr export volume

Rules of Origin Analysis

RoO Test Applied
Change of Tariff Heading (CTH)
Product HS Code
5208.12 — Woven cotton fabric, plain weave
Input HS Code
5205 — Cotton yarn
Heading Change
5205 → 5208 (4-digit heading differs) ✓
De Minimis Tolerance
8% of ex-works value (textile products HS 50–63)

The product (HS 5208.12 — woven cotton fabric) is manufactured from cotton yarn (HS 5205). The input material (yarn, heading 5205) has a different 4-digit tariff heading than the final product (heading 5208). The CTH test is therefore satisfied. All non-Indian inputs must originate from a tariff heading other than 5208.

DeterminationPass

UK Product Standards

REACH

Mandatory

Cotton textiles must comply with REACH restrictions on azo dyes, formaldehyde, and heavy metals. Test reports from a NABL-accredited laboratory are required.

Estimated Cost

₹30,000–₹1,50,000

Timeline

8–16 weeks

OEKO-TEX Standard 100

Buyer-required

EU buyers increasingly require OEKO-TEX certification for cotton textiles. While not legally mandatory, absence of certification may affect buyer negotiations.

Estimated Cost

₹40,000–₹1,80,000

Timeline

12–20 weeks

Recommended Next Steps

1

Obtain REACH test report from a NABL-accredited laboratory for azo dyes and formaldehyde.

2

Register on DGFT eCoO 2.0 portal (trade.gov.in) with valid IEC and Class 3 DSC.

3

Obtain RCMC from TEXPROCIL or AEPC if not already registered.

4

For each shipment: submit CoO application with invoice number matching the ICEGATE Shipping Bill exactly.

5

Consider OEKO-TEX certification for EU buyer negotiation advantage.

This report is advisory only and does not constitute a legal or binding determination. Verify with a licensed trade consultant before relying on this assessment for commercial purposes. Data sourced from India–UK CETA Annex 3A (published 24 July 2025) and UK Global Tariff Schedule.

Prepared by Provenance · provenance.ryanvpatel.com · hello@provenance.trade

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