India has notified initial concessions for qualifying New Zealand imports, while eligible Indian exports will receive duty-free access to New Zealand.
The India-New Zealand FTA is set to enter into force on 20 October 2026, with India notifying its first set of customs duty concessions for specified goods from New Zealand.
The measures cover products including sheep meat, kiwifruit, mānuka honey and wine. Eligibility depends on the relevant tariff entry, product value, origin requirements and, in some cases, an allocated quota.
India’s Department of Revenue issued Notification No. 32/2026-Customs on 16 October 2026, setting out the initial rates and conditions. The notification moves the agreement towards implementation following its signing in New Delhi on 27 April 2026.
India-New Zealand FTA: What the First Concessions Cover
The initial notification sets different rates for different products. Some specified imports receive zero basic customs duty, while others qualify for reduced rates.
Selected provisions are summarised below.
| Product | Qualifying condition | Basic customs duty | Agriculture Infrastructure and Development Cess |
|---|---|---|---|
| Sheep meat | Specified fresh, chilled or frozen sheep meat | 0% | 0% |
| Kiwifruit | CIF value of at least US$2.50 per kg | 15% | 0% |
| Mānuka honey | CIF value of at least US$30 per kg; prescribed certification | 51% | 0% |
| Wine under specified tariff entries | CIF value of at least US$5 but below US$15 per 750 ml | 20% | 75% |
| Wine under specified tariff entries | CIF value of US$15 or more per 750 ml | 20% | 50% |
CIF means cost, insurance and freight: the valuation includes the goods and the cost of transporting and insuring them to the destination port.
The table identifies particular duty components. It does not represent a complete calculation of every tax or charge payable on a shipment.
Why the Wine Concession Needs a Closer Look
The wine provisions illustrate why a headline duty rate can give an incomplete picture.
Although the notified basic customs duty is 20% for the qualifying categories, a separate Agriculture Infrastructure and Development Cess also applies. Its rate depends on the shipment’s value per 750 ml.
The agreement’s wider tariff schedule provides for further reductions over time. Businesses therefore need to distinguish the rates notified for the opening period from those scheduled for later years.
The practical implication is that the concession must be assessed against the relevant price band and period, rather than treated as a single rate for all New Zealand wine.
How the Initial Import Quotas Work
A tariff-rate quota allows a specified quantity of eligible goods to enter at a preferential rate. Access depends on the quantity available and the associated conditions.
The first customs notification provides a 40-tonne quota for qualifying mānuka honey valued at US$20 or more but below US$30 per kg. Its in-quota basic customs duty is 51%.
It also provides a 200-tonne quota for specified albumins, including certain milk-derived proteins, with an in-quota basic customs duty of 10%.
These opening allocations should be distinguished from the larger quantities in the agreement’s longer-term schedules.
Under the agreement, the first year runs from entry into force until 31 December of that year. Subsequent years follow the calendar year, and first-year quotas are adjusted for the remaining period.
Why Fruit Quotas Do Not All Open Immediately
The broader agreement includes preferential quota arrangements for apples and kiwifruit, subject to minimum import values and seasonal windows.
The implementation procedure published in DGFT Public Notice No. 33/2026-27 lists no first-year quota allocation for either fruit. Their annual preferential windows have already closed before the agreement’s October commencement.
From the second year, the notified schedule provides an apple quota of 35,000 tonnes and a kiwifruit quota of 8,000 tonnes, subject to the applicable conditions.
This does not remove the separate opening concession for qualifying kiwifruit valued at US$2.50 per kg or more. That provision carries the 15% basic customs duty shown above.
What Indian Exporters Stand to Gain
The agreement also changes access in the opposite direction.
According to India’s Ministry of Commerce and Industry, New Zealand will eliminate tariffs across all tariff lines covering Indian exports when the agreement enters into force.
The ministry identifies textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods among the sectors expected to benefit.
For an exporter, removing a tariff can improve the price offered to an overseas buyer. Converting that advantage into orders will still depend on product demand, quality, delivery costs and distribution.
Preferential access applies to goods that meet the agreement’s requirements, including the relevant rules of origin.
Origin Requirements Remain Central
Goods must qualify as originating under the India-New Zealand FTA to receive its preferential treatment.
The agreement recognises goods wholly obtained or produced in the participating countries, alongside goods that satisfy the applicable product-specific origin rules.
Simply routing a shipment through New Zealand or India does not establish that it qualifies.
Importers claiming preferential treatment must have the required proof of origin and supporting information. The agreement provides for certificates of origin and specified origin declarations, subject to its procedures.
These requirements connect the tariff benefit to eligible production and help determine whether an individual shipment can use the preferential rate.
Market Access Will Expand in Stages
New Zealand’s Ministry of Foreign Affairs and Trade says approximately 95% of its current exports to India will ultimately receive tariff elimination or substantial reductions under the agreement.
More than half are set to become tariff-free immediately, with duty-free coverage rising to over 80% after the agreement is fully phased in.
The treatment varies across sectors. New Zealand identifies immediate tariff removal for sheep meat, wool and coal, while reductions for other products extend over several years.
Sensitive areas remain protected. India has retained exclusions for major dairy categories and selected agricultural goods. At the same time, the agreement contains limited or separate provisions for certain dairy-related ingredients and preparations, so the treatment should be read product by product.
Will Consumers See Lower Prices?
Lower import duties can reduce costs for qualifying shipments. How much of that benefit reaches consumers will depend on exchange rates, freight, other applicable taxes, distribution expenses and commercial pricing decisions.
The first concessions therefore create an opportunity for more competitive prices, rather than establishing an immediate retail-price reduction.
For businesses, the next practical development will be the use of the new preferences in actual shipments. The commercial impact will become clearer through trade flows, importer participation and the extent to which exporters secure repeat orders.
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