India Grants Customs Duty Concessions on Imports from New Zealand

The Ministry of Finance, Department of Revenue, has issued Notification No. 32/2026-Customs dated 16 October 2026, providing customs duty concessions on specified goods imported from New Zealand. The notification covers Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), Health Cess, and tariff rate quotas (TRQs), subject to applicable conditions and proof of New Zealand origin. The notification comes into force on 20

1. Purpose of the Notification

The Central Government has issued this notification under Section 25(1) of the Customs Act, 1962, to provide customs duty exemptions or concessions on specified goods imported into India from New Zealand.

The notification specifies the applicable duty rates for listed goods and provides separate arrangements for certain products subject to tariff rate quotas. The concessions are not automatically available to every import from New Zealand; the goods must fall within the specified tariff classifications and satisfy the relevant conditions.

2. Key Details at a Glance

3. Types of Customs Duty Concessions

The notification contains four tables, each dealing with a different category of goods and duty treatment.

Table I — Basic Customs Duty, AIDC and Health Cess

For listed goods, the notification prescribes rates for:

• Basic Customs Duty (BCD)

• Agriculture Infrastructure and Development Cess (AIDC)

• Health Cess

For example, fresh, chilled or frozen sheep meat under tariff heading 0204 is listed with a BCD rate of 0%, AIDC of 0% and Health Cess of 0%. Other listed goods have different prescribed rates, so importers must check the applicable tariff entry.

cst-32-2026.pdf

Table II — Customs Duty and AIDC Concessions

This table specifies prescribed BCD and AIDC rates for another category of eligible goods. The applicable rate depends on the relevant tariff classification and product description.

Table III — Product-Specific Conditions

This table includes product-specific concessions subject to stated conditions. Examples include:

These are the rates stated in the notification, not necessarily reductions from every product's previous effective rate.

cst-32-2026.pdf

Table IV — Tariff Rate Quota (TRQ)

The notification provides specified annual import quantities for certain goods at the prescribed in-quota rates.

These quota benefits are conditional and subject to the requirements in the notification's annexure.

cst-32-2026.pdf

4. Conditions for Claiming the Benefit

Importers must pay particular attention to the following requirements.

1. Proof of origin: The importer must establish that the goods originate in New Zealand under the applicable Customs Rules of Origin.

2. Correct tariff classification: The goods must match the relevant chapter, heading, sub-heading or tariff item specified in the notification.

3. TRQ authorisation: For imports under the tariff rate quota, the Directorate General of Foreign Trade (DGFT) must allot the quota in accordance with the applicable procedure.

4. Electronic processing: TRQ authorisations are issued electronically and transmitted to the Indian Customs EDI System (ICES). Imports against the quota are allowed after the required electronic debit.

5. Mānuka honey certificate: Where condition 2 applies, the importer must produce a certificate from New Zealand's Ministry for Primary Industries certifying that the imported goods are Mānuka honey.

The conditions applicable to each product should be checked against the corresponding entry in the tables and annexure.

cst-32-2026.pdf

5. Effective Date and Practical Impact

The notification takes effect on 20 October 2026.

Its practical implications include:

• Importers: May benefit from the prescribed customs duty treatment when eligible goods are imported from New Zealand.

• Customs brokers: Should verify tariff codes, origin documents, applicable rates and any TRQ authorisation before filing import declarations.

• Businesses and finance teams: Should review landed-cost calculations and import documentation for affected products.

• Compliance professionals: Should ensure that claims for concessions are supported by the required documents and that quota limits and conditions are followed.

Important clarification: A prescribed BCD rate of 0% does not, by itself, establish that every tax or charge on an import is nil. The applicable treatment must be assessed using the relevant table entry and other applicable provisions.

Conclusion

Customs Notification No. 32/2026-Customs introduces a framework of specified customs duty concessions for eligible goods originating in New Zealand, including product-specific rates and quota-based arrangements for Mānuka honey and albumins. The benefit depends on tariff classification, proof of origin and compliance with the applicable conditions, and the notification becomes effective on 20 October 2026.

Editorial note: Since the notification contains 713 pages and extensive tariff schedules, this explanation highlights its principal provisions and selected examples. For a particular product, the exact tariff entry should be checked before publishing a specific duty-saving claim or applying the concession. CASansaar