Although the free trade agreement between India and New Zealand was announced earlier, details regarding the size of customs benefits for various goods from the Indian side had not been officially published. However, India has now announced the first abolition of duties on imported goods under this Free Trade Agreement (FTA) with New Zealand.
With this announcement, preferential rates come into effect on October 20 for products such as alcohol, manuka honey, kiwis, and beef. The Ministry of Finance established revised basic customs duties and tax rates for certain goods in a notification dated October 16. These benefits apply provided that the listed goods comply with the rates and conditions set out in the notification.
According to the notification, fresh, chilled, and frozen sheep meat will be subject to a zero duty rate, but the Agricultural Infrastructure and Development Cess (AIDC) and health tax will apply. A 15% tax will be levied on the import of kiwi fruits valued at $2.50 per kilogram or more. This benefit is dependent on the conditions established for the classification and import of the respective products. A tax of 25.71% will apply to many types of fish, while AIDC and health tax will be zero.
Nevertheless, since the applicable rates vary depending on different duty categories, the available discount will depend on the classification of the imported goods. Instead of completely eliminating import duties, this notification provides relief on certain specific tariffs and levies. Importers must check the relevant tariffs to determine the applicable rate for each consignment.
This notification includes a quota system of tariffs, which allows the import of certain goods into India at reduced rates. Importers will have to meet the specific requirements for these products and provide a New Zealand certificate to claim the benefits. These measures provide limited access to imports from New Zealand while maintaining benefits for sensitive sectors. Dairy products and staple agricultural goods will remain outside the scope of the benefits.
The rates and conditions applicable to the first set of customs benefits under the Free Trade Agreement between India and New Zealand were determined by the Ministry of Revenue in accordance with Section 25(1) of the Customs Act of 1962.
