Business & Finance
India Grants Zero Duty on Sheep Meat and 15% Rate on Kiwi Fruit Under New Zealand FTA
India has issued its first set of import duty concessions under the free trade agreement with New Zealand, announcing preferential customs rates for selected products that will take effect on 20 October. The Finance Ministry released a notification on 16 October that details revised basic customs duty (BCD) and cess rates for eligible imports. The measures cover specific tariff lines and are subject to product‑specific classifications and conditions.
Under the notification, fresh, chilled and frozen sheep meat that falls under 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 kilogram or more will be subject to a basic customs duty rate of 15%. Other concessions include duty relief for wine and manuka honey. Certain fish products listed under specified tariff lines will attract a BCD of 25.71%, with AIDC and health cess set at zero.
The notification does not eliminate duties on all products; it establishes preferential rates for specified goods. Importers must verify that their products fall within the notified tariff lines and comply with the conditions, including proof of New Zealand origin, to qualify for the reduced duties. The measures also provide tariff‑rate quotas (TRQs) that allow specified quantities of eligible products to enter India at preferential rates.
Dairy products and key agricultural items remain outside the concessions outlined in the notification. The Department of Revenue issued the notification under Section 25(1) of the Customs Act, 1962, setting out the rates and conditions governing the first set of customs duty concessions under the India‑New Zealand FTA. Importers will need to establish that their products meet the notified tariff lines and satisfy the applicable origin and other requirements to benefit from the reduced duties.