India-New Zealand FTA Is Live: What Exporters Should Do First
On 20 October 2026 the India-New Zealand Free Trade Agreement came into force. Commerce Minister Piyush Goyal flagged off what the Press Information Bureau (PIB) called the first-ever export of a JCB machine from India to New Zealand, and the headline for Indian sellers is short: New Zealand has eliminated customs duty on every tariff line covering Indian exports. The Minister called it 100% duty-free access. The saving, though, is won or lost on paperwork.
What zero duty is worth
The Commerce Ministry factsheet puts New Zealand's earlier tariffs at 0 to 10 per cent, averaging 2.2 per cent, across 8,284 tariff lines. Peak rates applied to textiles, apparel, leather, footwear and engineering goods. On a garment consignment worth Rs 40 lakh, a 10 per cent duty would have cost Rs 4 lakh (illustration, calculated). At the 2.2 per cent average it would have cost Rs 88,000 (illustration, calculated). That is a useful margin for an MSME, but it is not a customer.
New Zealand Customs says a lower tariff does not mean a product is cleared for sale. Biosecurity, product rules and labelling still apply. The base is also modest: New Zealand's trade ministry (MFAT) puts annual two-way trade at NZ$3.95 billion, about Rs 19,750 crore (calculated, at the NZ$7 billion to Rs 35,000 crore conversion that PIB itself uses).
Origin decides who qualifies
A good qualifies if it is wholly obtained in India or New Zealand, or if it meets a product-specific rule set at six-digit HS level. CBIC Notification 82/2026-Customs (N.T.), dated 12 October and effective 20 October, carries India's import-side version of the rules. Indian exports into New Zealand are tested under the product-specific rules in Annex 3-A of the agreement, which could not be compared line by line for this article, so the samples below show the range and not a final answer. Apparel in chapters 61 and 62 needs a change of tariff heading plus 40 per cent qualifying value content. Footwear in chapter 64 needs the heading change. Excavators and similar machines under 8429 need 40 per cent. Studded jewellery under 7113 needs 6 to 7 per cent.
The value test works on the free-on-board price. Take a shirt sold at Rs 1,000 with Rs 550 of imported fabric and trims: (1,000 minus 550) divided by 1,000 is 45 per cent (illustration, calculated), which clears 40 if the heading test is also met. A build-up method is allowed too, with the required percentage 10 points lower. A 10 per cent tolerance covers minor inputs that miss the heading test, but those inputs then count against any value test. Only bilateral cumulation is allowed, so third-country content gets no help from New Zealand inputs. Rules differ line by line, and the sounder course is to read the exact line in the annexure instead of trusting a chapter summary.
Claiming the preference
Origin is proved by a certificate of origin from an issuing body, or by a declaration from a "status holder", the Indian self-certifying category in the rules. The certificate must be in English, carry a unique number, state the originating criterion and the six-digit HS code, and stays valid for 12 months. India's customs system has assigned the agreement code FTANZD from 20 October, and exporters declare it in the Shipping Bill. The New Zealand importer must then hold the certificate to claim the lower duty.
Which Indian bodies will issue certificates, and how a small exporter becomes a status holder under this agreement, could not be confirmed from published sources. DGFT's Trade Connect ePlatform is the unified portal for electronic certificates under India's trade agreements, but a DGFT notice specific to this agreement was not found. Issuing-body details are due to be exchanged within 30 days of entry into force, which is 19 November 2026 (calculated).
What New Zealand gets
India's offer is narrower. The Commerce Ministry says concessions cover 70.03% of tariff lines and about 95% of bilateral trade by value. About 30% of lines are free from day one, including wood, wool, sheep meat and raw hides. Dairy, sugar, edible oils, onions, chana, almonds, gems and jewellery, copper and aluminium stay excluded.
| Product | Base duty in schedule | Treatment |
|---|---|---|
| Wood logs (HS 4403) | 5.5% | Nil from 20 October |
| Shorn wool (HS 5101) | 2.75% | Nil from 20 October |
| Sheep meat (HS 0204) | 33% | Nil from 20 October |
| Apples | 50% | 25% in quota at US$1.25/kg or more, 1 April to 31 August |
| Kiwifruit | 33% | 0% in quota at US$1.80/kg or more, 1 April to 15 October |
| Mānuka honey | 66% | 56.1% in Year 1, 16.5% by Year 5; 200 tonne quota |
Quotas deserve a second read. The agreement text lists 32,500 tonnes of apples and 6,250 tonnes of kiwifruit for Year 1. DGFT Public Notice 33/2026-27 shows nil for both, because Year 1 ends on 31 December 2026 and the buying windows open on 1 April. The first usable season is 2027, with 35,000 tonnes of apples and 8,000 of kiwifruit. Mānuka honey gets 40 tonnes in Year 1 under the same notice, against a 200 tonne quota in the agreement table. All three quotas are linked to action plans under the Agricultural Productivity Partnership.
Services, people and money
PIB lists New Zealand access in about 118 service sectors, plus a first dedicated opening for Ayurveda, Yoga and other AYUSH services. Immigration New Zealand says two new Temporary Employment Entry visa categories began on 20 October for up to 5,000 holders at any one time, with a job offer from an accredited employer and no route to residence. A working holiday scheme for Indians aged 18 to 30, capped at 1,000 places a year, arrives within two years.
New Zealand has committed to facilitate US$20 billion of investment into India. "Facilitate" is the operative word: the factsheet pairs it with a rebalancing clause that lets India adjust if the commitment is not met.
The first 90 days
The window runs to 18 January 2027 (calculated). In month one, fix the eight-digit Indian HS code and the six-digit code the origin rule uses for each product, then turn the cost sheet into a value content figure using real purchase invoices. In month two, test the DGFT account, IEC profile and certificate route with the broker, and agree in writing with the New Zealand buyer who claims the preference and what happens if it is queried. In month three, one modest shipment is the sounder test before a large order is priced on zero duty.
Importers of New Zealand goods use e-Sanchit document code 861021 and enter the certificate number, date and criterion in the bill of entry. Goods in transit or in bond on 20 October can claim afterwards under CAROTAR Rule 25.
General information only. This is not CA, legal or customs advice.
