Mumbai -> London -> Manchester : Reclaim checked bags at London?

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You will clear immigration at London. Your bag will be checked through to Manchester. You will not collect or recheck your bag in London.

Where customs is "cleared" is a nuanced question. In principle your hand luggage gets "cleared" at Heathrow and your hold luggage at Manchester... but if you have anything to declare it is wise to seek advice about it immediately (immigration staff can advise) and not wait until Manchester. In Manchester BA often uses a domestic bag claim which only has a red telephone instead of a staffed customs area. Penalties can be stiff if you fail to make a declaration---even if there is no one there. If you are not carrying any items that you need to declare, then do not worry about it.

This arrangement is different to the situation in most countries, but in common with most of Europe.

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