India-New Zealand FTA: Mutton gets zero duty, kiwifruit 15% as tariff cuts come into effect Oct 20

India has announced the first set of import duty concessions under its Free Trade Agreement (FTA) with New Zealand, announcing preferential duty rates on select products from October 20.

On October 16, the Ministry of Finance issued a notification detailing the revised Basic Duty (BCD) and duty rates for eligible imports. Concessions relate to designated tariff items and are subject to product-specific classification and conditions.

The measures announced include duty exemptions for mutton and preferential rates for eligible kiwifruit imports, along with concessions on products such as wine and manuka honey.

Mutton tax cut to zero, kiwifruit to 15%

According to the notification, fresh, chilled and frozen mutton covered under the said Tariff Tariff item are subject to zero basic duty, Agricultural Infrastructure and Development Tax (AIDC) and Health Tax.

Eligible imports of kiwifruit valued at US$2.50 per kg or more will be subject to a basic duty rate of 15%. The applicable concession depends on the tariff classification of the product and compliance with the conditions prescribed for importation.

Certain fish products listed in specified tariff lines will attract BCD of 25.71%, with AIDC and health cess set at nil. The applicable basic duty varies according to tariff classifications, which means that the rate will depend on the category in which the imported product is declared.

The notification does not cancel import duties on all products. Instead, it introduces preferential rates for specific goods, with importers required to check relevant customs records and conditions before applying for concessions.

Access for selected imports is governed by tariff quotas

The notification also provides for tariff rate quotas (TRQs) that allow specific quantities of eligible products to enter India at preferential rates.

Importers wishing to take advantage of these provisions must meet the relevant product-specific requirements and provide proof of New Zealand origin. Access to concessions is therefore governed by the quantities and conditions prescribed for the respective products.

The measures offer selective tariff relief for imports from New Zealand while maintaining exemptions for sensitive sectors. Dairy products and key agricultural items remain outside the concessions mentioned in the notification.

India-New Zealand Free Trade Agreement: What the notification covers

A notification dated October 16, issued by the Department of Revenue under Section 25(1) of the Customs Act, 1962, sets out the rates and conditions governing the first set of tariff concessions under the India-New Zealand Free Trade Agreement.

The preferential rates are due to take effect on October 20. Importers will have to demonstrate that their products fall under the notified tariff headings and meet the relevant origin and other requirements in order to qualify for the reduced duties.