The Ministry of Finance (Department of Revenue), Government of India, has issued Notification No. 32/2026-Customs dated October 16, 2026, notifying the first tranche of tariff concessions under the India–New Zealand Free Trade Agreement (Ind-NZ FTA). The notification, issued under Section 25(1) of the Customs Act, 1962, shall come into force on October 20, 2026.
The notification establishes preferential customs duty treatment for specified goods imported into India from New Zealand, covering concessions in Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC) and Health Cess, as applicable. These concessions are subject to the relevant tariff classifications, product descriptions, value thresholds, quantitative restrictions and prescribed conditions.
Comprehensive Product-Wise Tariff Concessions
Under Table I of the notification, the Government has prescribed preferential customs duty rates for a wide range of tariff lines covering specified agricultural, marine, industrial and other goods. The applicable BCD, AIDC and Health Cess rates have been specified separately for individual tariff classifications.
For instance, imports of fresh, chilled or frozen sheep meat falling under heading 0204 have been assigned a preferential BCD of Nil, AIDC of Nil and Health Cess of Nil. Several specified fish and marine product classifications are also covered by preferential rates, including certain tariff lines carrying a BCD of 25.71%, with Nil AIDC and Health Cess.
The applicable concessions vary across products and tariff lines. Accordingly, importers must examine the precise tariff classification and corresponding rate prescribed under the notification before claiming preferential treatment.
Preferential Customs Duty on Wines Based on CIF Value
Under Table II, the Government has introduced value-based preferential tariff treatment for specified wine products imported from New Zealand.
For the specified tariff classifications covering wines, including sparkling wines and other listed wine products, the notification prescribes the following concessions based on the CIF value of a 750 ml container:
- CIF value of US$5 or above but below US$15: BCD of 20% and AIDC of 75%.
- CIF value of US$15 or above: BCD of 20% and AIDC of 50%.
The preferential rates are subject to the relevant tariff classifications and product descriptions. The notification clarifies that the CIF value shall mean the assessable value determined under Section 14 of the Customs Act, 1962.
Special Preferential Duty Treatment for Kiwifruit and Mānuka Honey
Under Table III, specific preferential duty rates have been notified for New Zealand-origin kiwifruit and Mānuka honey satisfying the prescribed import value conditions.
For kiwifruit falling under HS Code 08105000, having a CIF value of US$2.50 per kg or above, the applicable preferential BCD shall be 15%, with Nil AIDC.
Similarly, Mānuka honey falling under HS Code 04090000, having a CIF value of US$30 per kg or above, shall attract a preferential BCD of 51%, with Nil AIDC, subject to the prescribed certification condition.
For Mānuka honey, the importer must produce a certificate issued by the Ministry for Primary Industries, New Zealand, certifying the imported product as Mānuka honey.
Tariff Rate Quotas Introduced for Mānuka Honey and Albumins
Under Table IV, the notification prescribes Tariff Rate Quota (TRQ) concessions for specified imports, enabling eligible quantities of goods to be imported at the notified in-quota customs duty rates, subject to DGFT authorisation and customs compliance requirements.
For Mānuka honey under HS Code 04090000, having a CIF value of US$20 per kg or above but below US$30 per kg, an initial TRQ quantity of 40 metric tonnes has been notified, with an in-quota BCD of 51% and Nil AIDC.
For albumins falling under HS Codes 35021100, 35021900, 35022000 and 35029000, a TRQ quantity of 200 metric tonnes has been prescribed, attracting an in-quota BCD of 10% and Nil AIDC.
These quantities form part of the initial tariff concession framework under the FTA, with the related quota allocation and implementation procedures governed by the Directorate General of Foreign Trade (DGFT).
Mandatory DGFT Authorisation and Electronic Customs Monitoring
The notification stipulates that importers seeking concessional benefits under the applicable TRQ provisions must obtain authorisation from DGFT in accordance with the relevant procedures prescribed under the Handbook of Procedures, 2023.
The TRQ authorisation must contain the name and address of the importer, Importer-Exporter Code (IEC), relevant Customs Notification number, applicable tariff item, authorised quantity and validity period.
Such authorisations shall be issued electronically by DGFT and transmitted to the Indian Customs EDI System (ICES). Imports against TRQ authorisations shall be permitted only after the corresponding quantities have been debited electronically through ICES.
The electronic authorisation and debit mechanism is intended to facilitate administration and monitoring of the notified tariff quotas.
Rules of Origin Compliance Mandatory to Avail FTA Benefits
A significant condition under the notification is that the preferential customs duty concessions shall be available only for qualifying goods originating in New Zealand.
Importers must establish the origin of imported goods to the satisfaction of the jurisdictional Deputy Commissioner or Assistant Commissioner of Customs, in accordance with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) and other applicable rules notified by the Central Government.
Accordingly, the mere import of goods from New Zealand shall not automatically entitle an importer to preferential customs duty treatment unless the prescribed origin requirements and relevant conditions are satisfied.
Implementation from October 20, 2026
The concessional customs duty rates and prescribed TRQ provisions under Notification No. 32/2026-Customs dated October 16, 2026 shall become applicable from October 20, 2026.
The notification operates alongside DGFT Public Notice No. 33/2026-27 dated October 17, 2026, which amends Paragraph 2.92 and Appendix 2A of the Handbook of Procedures, 2023, to prescribe the procedural framework for TRQ allocations under the India–New Zealand FTA.
Together, the customs notification and DGFT procedural amendments establish the framework for extending preferential import treatment and administering tariff quotas under the Agreement.
Significance for Indian Importers and Trade
The implementation of the first tranche of tariff concessions under the India–New Zealand FTA represents an important development in bilateral trade policy and preferential customs administration.
The concessions may create additional opportunities for eligible New Zealand-origin goods to enter the Indian market at preferential tariff rates, while the prescribed value thresholds, tariff classifications, quantitative restrictions and origin requirements provide safeguards for administering the concessions.
For Indian importers, customs brokers and businesses engaged in international trade, the notification makes it essential to carefully evaluate HS classification, applicable preferential BCD and cess rates, CIF value thresholds, origin documentation, DGFT authorisation and electronic quota compliance, wherever applicable.
The notification marks an important step in operationalising the first tranche of tariff commitments under the India–New Zealand Free Trade Agreement, with preferential customs duty benefits becoming effective from October 20, 2026.
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1010775/ENG/Notifications
