India has begun implementing its new free-trade agreement with New Zealand, cutting duties on selected imports including sheep meat, kiwifruit, wine and manuka honey, subject to origin rules and quotas.
India has begun putting its free-trade agreement with New Zealand into effect, publishing the first round of customs duty concessions for selected imports from 20 October. The Finance Ministry’s notification, issued on 16 October, sets out revised basic customs duty and cess rates for a limited group of products, marking the opening phase of the two countries’ new trade arrangement.
The biggest winners in the first tranche are sheep meat and some high-value fruit and food products. Fresh, chilled and frozen sheep meat covered by the relevant tariff entry will now face zero basic customs duty, agriculture infrastructure and development cess, and health cess. Eligible kiwi fruit imports priced at $2.50 per kilogram or more will attract a 15% basic customs duty, while wine and manuka honey also fall within the scope of the concessions, according to the notification reported by The Economic Times and LiveMint.
The relief is selective rather than broad-based. The concessions apply only to specified tariff lines and come with product-specific conditions, including proof of New Zealand origin. Certain fish products will attract a basic customs duty of 25.71%, with no agriculture or health cess, showing that the exact rate will depend on how an item is classified at the border. Importers will also need to check whether their shipments qualify under the relevant tariff-rate quotas, which limit the quantities that can enter at preferential rates.
The measures are consistent with the broader shape of the India-New Zealand pact, which was finalised earlier this year and is due to open New Zealand’s market more widely to Indian exports. According to reporting by LiveMint and industry briefings cited by other publications, the agreement is expected to give duty-free access in New Zealand to all Indian tariff lines, while keeping sensitive Indian farm products such as dairy and most meat outside the tariff cuts. Calibrated access for New Zealand apples, kiwifruit and manuka honey is expected to be managed through quotas, minimum import prices and seasonal rules, reflecting India’s effort to balance market opening with protection for domestic producers.
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