India notifies first New Zealand FTA duty cuts on wine, manuka honey and kiwi fruit

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 selected products taking effect from October 20.

The Finance Ministry's notification, issued on October 16, specifies revised basic customs duty (BCD) and cess rates for eligible goods. The concessions cover designated products and tariff lines and are subject to the classifications, conditions and rates prescribed in the notification.

The products covered include wine, manuka honey, kiwi fruit, sheep meat and selected fish imports. The measures offer calibrated access to New Zealand goods while retaining exclusions for sensitive sectors.

Sheep meat gets zero duty, kiwi fruit attracts 15%

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 attract a BCD rate of 15%, subject to the applicable product classification and conditions.

For several specified fish tariff lines, the BCD rate will be 25.71%, while AIDC and health cess will be zero. The applicable rate varies by tariff line, meaning the concession available to an importer will depend on the classification of the product.

Wine and manuka honey are also among the products covered by the preferential duty framework, with the applicable concessions governed by the relevant tariff entries and conditions in the notification.

Tariff-rate quotas and origin rules govern concessions

The notification introduces tariff-rate quotas (TRQs), allowing specified quantities of selected products to enter India at preferential rates. Importers must comply with product-specific conditions and provide proof that the goods originate in New Zealand to qualify for the benefits.

The concessions are governed by Notification No. 32/2026-Customs, issued by the Department of Revenue under Section 25(1) of the Customs Act, 1962. The notification sets out the applicable rates and conditions for the first set of customs duty concessions under the India-New Zealand FTA.

Dairy products and key agricultural items remain outside the concessions, reflecting India's decision to retain protections for sensitive sectors.

FTA to take effect on October 20

The India-New Zealand FTA, signed on April 27, 2026, is scheduled to come into force on October 20. The agreement aims to expand bilateral trade and reduce tariffs on a wide range of goods.

Under the broader pact, New Zealand exports will receive phased tariff reductions across several sectors. Sheep meat is among the products eligible for immediate duty-free access, while concessions for wine and manuka honey are subject to their respective tariff schedules. Kiwi fruit access is governed by specific pricing conditions and quota arrangements.

The first customs notification translates part of India's commitments under the agreement into applicable import-duty rates. The benefits will depend on the product's tariff classification, compliance with origin requirements and, where relevant, the availability of quota allocations.