India notifies first New Zealand FTA duty cuts; sheep meat gets zero duty, kiwi fruit at 15%

India has notified the first set of customs duty concessions for imports from New Zealand under the two countries' free trade agreement (FTA), with preferential rates for products including wine, manuka honey, kiwi fruit and sheep meat coming into effect on October 20.

The Finance Ministry's October 16 notification prescribes revised basic customs duty (BCD) and cess rates for specified goods. The concessions apply to the products and tariff lines listed in the notification, subject to the prescribed rates and conditions.

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Sheep meat gets zero duty; kiwi fruit faces 15% rate

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, according to the notification.

Eligible kiwi fruit imports valued at $2.50 per kg or more will attract BCD at 15%. The concession is subject to the applicable product classification and conditions specified for the imports.

Several listed fish tariff lines will attract BCD of 25.71%, with AIDC and health cess at zero. However, the applicable BCD rate varies across tariff lines, so the concession available will depend on the classification of the imported product.

The notification provides relief from specified duties and cesses rather than removing import duties across the board. Importers will need to check the relevant tariff entry to determine the rate applicable to each consignment.

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Tariff quotas limit access for select imports

The notification also provides for tariff-rate quotas (TRQs), under which specified quantities of selected products can enter India at preferential rates. Importers must meet product-specific requirements and furnish proof of New Zealand origin to qualify for the concessions.

The measures provide calibrated access to selected New Zealand imports while retaining exclusions for sensitive sectors. Dairy products and key agricultural items remain outside the concessions.

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