India New Zealand FTA: Customs Notification 32/2026 Explained
October 19, 2026 · Other News Alerts / Articles
India New Zealand FTA customs duty cuts take effect October 20, 2026 under Notification 32/2026-Customs. Origin rules, TRQs and CAROTAR compliance.
The India New Zealand FTA moves from text to practice for importers. The Central Government has issued Notification No. 32/2026-Customs dated October 16, 2026 (G.S.R. 899(E)), which grants preferential customs duty rates on specified goods imported into India from New Zealand with effect from October 20, 2026. Importers, exporters, customs brokers and finance teams dealing in New Zealand trade should review tariff lines, rules of origin and documentation before the first preferential bill of entry is filed.
What has changed under the India New Zealand FTA customs notification
Notification No. 32/2026-Customs is issued under section 25(1) of the Customs Act, 1962. It reduces basic customs duty, and in specified cases the Agriculture Infrastructure and Development Cess (AIDC) under section 124 of the Finance Act, 2021 and the Health Cess under section 141 of the Finance Act, 2020, to the rates listed in its tables, for goods imported into India from New Zealand.
The notification is organised into four tables. Table I covers concessional rates of duty, AIDC and Health Cess. Table II covers duty and AIDC. Table III covers duty and AIDC subject to conditions in the Annexure. Table IV prescribes tariff rate quotas (TRQ), where a lower in-quota rate applies only up to a fixed annual quantity.
Origin is the gateway condition
The concession is available only if the importer proves to the Deputy Commissioner or Assistant Commissioner of Customs that the goods are of New Zealand origin, in terms of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) and any rules notified for this agreement. In practice, this means the rules of origin chapter of the agreement, read with CAROTAR, decides eligibility for every consignment.
Key dates and rates
Category
Earlier position
Revised position
Effective from
Customs duty on specified goods of New Zealand origin
Standard (MFN) rates under the First Schedule to the Customs Tariff Act, 1975
Concessional rates as per Tables I to III of Notification No. 32/2026-Customs
October 20, 2026
Manuka honey (tariff item 04090000), CIF value USD 20 per kg or above but below USD 30 per kg
Standard rates
TRQ of 40 MT per year; in-quota BCD 51.0%, AIDC 0.0%; Conditions 1 and 2
October 20, 2026
Albumins (35021100, 35021900, 35022000, 35029000)
Standard rates
TRQ of 200 MT per year; in-quota BCD 10.0%, AIDC 0.0%; Condition 1
October 20, 2026
Certificate of Origin validity
Not applicable
12 months from date of issue (Article 3.15 of the Rules of Origin chapter)
October 20, 2026
De minimis non-originating materials
Not applicable
Up to 10 per cent of value or weight, as specified in Article 3.8
October 20, 2026
Rates for individual tariff lines run into thousands of entries. Importers should match their exact eight-digit tariff item against the official notification rather than relying on summaries.
India New Zealand FTA rules of origin explained
According to the Department of Commerce FAQs, the agreement uses a "wholly obtained" criterion for agricultural, animal and marine products and a "sufficient manufacturing" approach for processed food and industrial products. Product Specific Rules (PSRs) set the origin test at the six-digit HS sub-heading level.
Qualifying value content and cumulation
Qualifying Value Content (QVC) can be calculated using either the build-up method or the build-down method. The agreement allows only bilateral cumulation, so originating materials from India or New Zealand count, but third-country materials do not. The Commerce FAQs state that goods from a third country routed through New Zealand cannot obtain the concession.
Certificate of Origin and self-certification
The Certificate of Origin must state the origin criterion met, the description of goods and the six-digit HS code. The FAQs also note that Status Holders may self-certify origin from the date of entry into force, which may reduce cost and processing time for frequent shipments.
Verification and denial of benefit
Customs authorities can request information, with timelines such as 30 or 60 days for responses, and may conduct verification visits. Preferential treatment can be denied or temporarily suspended where non-compliance or misuse is suspected.
Tariff rate quota conditions for importers
For TRQ items, the quota is allotted to the importer by the Directorate General of Foreign Trade (DGFT) under the Handbook of Procedures, 2023. The TRQ authorisation carries the importer's name, IEC, notification number, tariff item, quantity and validity, and is transmitted electronically to the Indian Customs EDI System (ICES). Imports are allowed only on electronic debit against that authorisation.
For manuka honey, Condition 2 additionally requires a certificate from the Ministry for Primary Industries of New Zealand certifying the goods to be manuka honey, produced to the Deputy or Assistant Commissioner of Customs at the time of import.
Practical impact
For companies
Importers sourcing from New Zealand should map each product to its tariff item, check the concessional rate, and obtain origin documentation from suppliers before goods are shipped. Under CAROTAR, the importer must hold origin-related information and may be asked to furnish it, so supplier declarations and cost data should be kept on file.
Finance teams should update landed cost and pricing models, since a lower customs duty also reduces the IGST base on imports. Exporters to New Zealand should review the PSRs for their products, as the Commerce FAQs indicate New Zealand offers duty-free access on all tariff lines from entry into force.
For individuals
Proprietors and small importers should confirm whether their goods appear in the notification tables or fall in India's exclusion list, which covers 29.97% of tariff lines according to the Commerce FAQs. Engaging a licensed customs broker familiar with CAROTAR filings can help avoid denial of benefit at the port.
Frequently asked questions
When does the India New Zealand FTA customs concession apply?
Notification No. 32/2026-Customs comes into force on October 20, 2026. Concessional rates apply to eligible imports from that date, as of October 19, 2026.
Is a Certificate of Origin mandatory to claim the FTA rate?
Yes, origin must be proved under CAROTAR and the agreement's rules of origin. A Certificate of Origin, or self-certification by eligible Status Holders, supports the claim.
Can third-country goods shipped via New Zealand get the concession?
No. Only bilateral cumulation between India and New Zealand is permitted, and goods must meet the origin criteria.
How are TRQ items such as manuka honey and albumins handled?
The in-quota rate applies only up to the annual quota and only against a DGFT TRQ authorisation debited in ICES. Imports beyond the quota attract the normal applicable rate. (Note: For Manuka honey with a Section 14 CIF value of USD 30.00/kg or above, the 51% BCD + Nil AIDC concessional rate applies without any quota limit or DGFT TRQ authorisation under Table III; the TRQ limit applies only to the USD 20.00/kg to below USD 30.00/kg CIF slab under Table IV).
Are all goods from New Zealand covered?
No. India has offered concessions on 70.03% of tariff lines, and the rest are in the exclusion list, as per the Commerce FAQs.
Key takeaways
Notification No. 32/2026-Customs dated October 16, 2026 grants preferential duty on specified New Zealand-origin goods from October 20, 2026.
Origin must be proved under CAROTAR, 2020 and the agreement's rules of origin.
Manuka honey and albumins are subject to TRQs allotted by DGFT.
Certificates of Origin are valid for 12 months; only bilateral cumulation is allowed.
Importers should verify exact tariff items against the official notification.
For related changes to the customs and tax framework this year, see the in-depth analysis of the Finance Bill, 2026 .
Sources
CBIC /