In short: The Ministry of Finance notified origin rules on 12 October 2026 for claiming concessional customs duty under the India-New Zealand Free Trade Agreement (FTA). The DGFT has separately notified tariff rate quotas (TRQs) for items such as apples, kiwifruit, Manuka honey and albumins. Both take effect on 20 October 2026, the day the FTA comes into force.
What has been notified?
Two sets of instruments matter for traders.
- Origin rules: The Customs Tariff (Determination of Origin of Goods under the Free Trade Agreement between India and New Zealand) Rules, 2026. They are framed under Section 5(1) of the Customs Tariff Act, 1975. They set out how to decide whether goods qualify for preferential duty, and what documents and checks apply.
- Tariff rate quotas: A DGFT public notice fixes quantities of certain goods that can be imported at concessional rates.
The origin rules decide whether goods qualify. According to the SCC Online report, they do not themselves fix the preferential duty rates. Traders must check both the tariff commitment and the product-specific origin rule.
How do goods qualify as "originating"?
Under Rule 3, goods qualify if they are wholly obtained or produced in India, New Zealand or both (as described in Rule 4). They also qualify if they meet the product-specific rules in Annexure A.
- Value content: Where a product-specific rule requires it, the qualifying value content can be worked out by a build-down method or a build-up method. The build-down formula uses the FOB value (value at the point of export) less non-originating materials. The build-up threshold is generally 10 percentage points lower than the build-down one, except for HS Chapter 71 goods.
- Other features: The rules also cover bilateral cumulation, minimal operations, packaging, accessories, spare parts, indirect materials and fungible goods.
- Tolerances: Subject to conditions, there is a 10% tolerance for certain non-originating materials in goods under HS Chapters 50 to 63, and 1% for specified materials in certain wholly obtained goods.
- Third-country invoicing: Preferential treatment can still be allowed where the invoice is issued by an entity in a non-Party country, subject to conditions.
Proof, records and verification
Preferential treatment needs a valid Proof of Origin. This can be a Certificate of Origin issued by the designated authority or an eligible origin declaration. Annexure B prescribes the Certificate of Origin requirements. Retrospective issuance is allowed in specified cases.
- Importers: They must declare originating status, hold the prescribed proof (unless an exception or waiver applies), produce documents and provide information on request.
- Refunds: Under Rule 25, a post-importation claim for refund of excess duty may generally be made within 12 months of importation, subject to conditions.
- Record-keeping: Exporters, producers, approved exporters, eligible status holders and issuing authorities must keep origin records for at least five years, or longer where the law requires.
- Verification: Customs may ask for information, check documents or make verification visits. Non-compliance or inadequate information can lead to denial of the concession. Misrepresentation may lead to suspension or penalties under domestic law.
- Clerical errors: Minor errors that do not raise doubt about origin do not, by themselves, invalidate a Proof of Origin.
Rule 35 has transitional arrangements for qualifying goods that are in transit or under customs control when the Agreement starts.
What do the tariff rate quotas say?
| Product | What the DGFT notice provides |
|---|---|
| Apples | 35,000 tonnes from New Zealand at 25% duty in 2027, against the prevailing 50%. The annual import window runs from 1 April to 31 August. |
| Kiwifruit | Zero duty under the TRQ, subject to a minimum CIF value of $1.80 per kg. No quota in the first year, then 8,000 tonnes in year two, 9,750 in year three, 11,500 in year four and 13,250 in year five. |
| Manuka honey | 40 tonnes of New Zealand-certified honey for 2026, rising to 200 tonnes a year from 2027. |
| Albumins | 200 tonnes in year one, 1,500 in year two, 2,000 in year three and 2,500 in year four. |
A TRQ authorisation is valid only for the quota year in which it is issued. Imports must fall within the quota window, and any unused quantity lapses when the authorisation expires.
The wider picture
The Commerce Minister has said India's sensitive products, such as dairy, sugar, edible oils, onions, chickpeas and almonds, stay outside tariff concessions. Apples, kiwi and honey enter only through TRQs, minimum import prices and seasonal windows. For Indian exporters, the FTA promises duty-free access to the New Zealand market.
What should businesses do?
- Identify the HS code and check the product-specific origin rule and the tariff commitment.
- Secure a valid Proof of Origin before claiming the concession.
- Maintain material-cost calculations, supplier records and production evidence.
- Keep records for at least five years and be ready for verification requests.
- For quota goods, check the authorisation, quota year and import window before shipping.
This article is general information, not legal advice. Check the notified text for your product.
Frequently asked questions
When do the new rules start?
The origin rules and the TRQ provisions both take effect on 20 October 2026, when the FTA comes into force.
Do the origin rules set the duty rate?
No. They decide whether goods are "originating". The applicable tariff commitment and the product-specific rule must both be checked.
Can unused quota be carried over?
No. A TRQ authorisation is valid only for its quota year, and any unused quantity lapses when it expires.
Sources
- SCC Online Blog: India–New Zealand FTA: Certification, Origin Criteria and Tariff Rules Notified
- Economic Times: Tariff quota notified for NZ fruits, honey
- Mint: India-New Zealand FTA to come into force on 20 Oct: Piyush Goyal
- TOI Business: India-New Zealand FTA effective from Oct 20; targets double trade to $7bn by 2030