The prime minister had been warned her Chequers deal was "dead in the water" after seemingly caving and accepting amendments by influential pro-Brexit Conservative faction the European Research Group (ERG) on tariffs and VAT policy.
Two ERG amendments were passed with a majority of just three, narrowly avoiding an embarrassing defeat for Ms May after as many as 14 Tory MPs rebelled in divisions on Monday evening.
Among them was defence minister Guto Bebb, who resigned from government after defying the whip to vote against the ERG's new clause 36, requiring HMRC not to collect tariffs for other nations without a reciprocal dealing being in place.
The third reading of the bill was approved by 318 votes to 285, meaning it will now progress to the House of Lords.
Read the recap of how our live coverage unfolded throughout the day