India notified its first customs duty concessions for New Zealand imports starting October 20. Under the new free trade agreement, sheep meat now gets zero duty, while kiwi fruit imports face a 15% rate. The Finance Ministry issued these rules on October 16, though dairy products remain outside these changes.

India has notified its first set of customs duty concessions for imports from New Zealand under the bilateral free trade agreement, with preferential rates taking effect on October 20.

India has announced the first set of import duty concessions under its free trade agreement (FTA) with New Zealand, notifying preferential customs rates for selected products from October 20.

The Finance Ministry issued a notification on October 16 specifying revised basic customs duty (BCD) and cess rates for eligible imports. The concessions cover designated tariff lines and are subject to product-specific classifications and conditions.

The notified measures include duty relief for sheep meat and preferential rates for eligible kiwi fruit imports, alongside concessions covering products such as wine and manuka honey.

Sheep meat duty cut to zero, kiwi fruit at 15%

Under the notification, fresh, chilled and frozen sheep meat covered by the specified tariff entry will attract zero basic customs duty, Agriculture Infrastructure and Development Cess (AIDC) and health cess.

Eligible kiwi fruit imports valued at $2.50 per kg or more will be subject to a basic customs duty rate of 15%. The applicable concession depends on the product's tariff classification and compliance with the conditions prescribed for imports.

Certain fish products listed under specified tariff lines will attract BCD of 25.71%, with AIDC and health cess set at zero. The applicable basic customs duty varies across tariff classifications, meaning the rate will depend on the category under which an imported product is declared.

The notification does not eliminate import duties across all products. Instead, it establishes preferential rates for specified goods, with importers required to check the relevant tariff entries and conditions before claiming concessions.

Importers seeking to use these provisions must meet the applicable product-specific requirements and provide proof of New Zealand origin. Access to the concessions is therefore governed by the quantities and conditions prescribed for the relevant products.

The measures offer selective tariff relief for imports from New Zealand while retaining exclusions for sensitive sectors. Dairy products and key agricultural items remain outside the concessions outlined in the notification.

India-New Zealand FTA: What the notification covers

Issued by the Department of Revenue under Section 25(1) of the Customs Act, 1962, the October 16 notification sets out the rates and conditions governing the first set of customs duty concessions under the India-New Zealand FTA.

The preferential rates are scheduled to take effect on October 20. Importers will need to establish that their products fall within the notified tariff lines and satisfy the applicable origin and other requirements to qualify for the reduced duties.