India has released the first list of customs duty exemptions on imports from New Zealand under the Free Trade Agreement (FTA) between the two countries. Among these, special discounted rates will apply to products such as wine, manuka honey, kiwi fruit and lamb meat, effective from October 20. The Finance Ministry’s notification dated October 16 has mentioned revised Basic Customs Duty (BCD) and cess rates for certain items. These concessions will be applicable to the items and tariff lines specified in the notification, subject to the rates and conditions specified.

Zero duty on mutton, 15% rate on kiwi fruit

As per the notification, no Basic Customs Duty (BCD) will be levied on the mutton meat involved (be it fresh, chilled or frozen). Apart from this, Agri Infra and Development Cess and Held Cess will also be zero on this. Basic Customs Duty (BCD) at the rate of 15% will be levied on importation of kiwi fruit at the rate of $2.50 per kilogram or more. This exemption will be available depending on the classification of the product and the conditions prescribed for import.

Many types of fish included in the list will attract basic customs duty (BCD) at the rate of 25.71%, while AIDC and health cess will be nil. However, BCD rates may vary for different tariff lines, so the discount available will depend on the classification of the imported product. This notification does not completely remove all types of import duties, but provides relief from certain duties and cesses. Importers must check which rate applies to each of their shipments.

Tariff Quota System

The notification also provides for a ‘tariff-rate quota’ (TRQ), under which certain products can be imported into India at concessional rates. To take advantage of this exemption, importers must meet the conditions relating to the product and prove that the product is from New Zealand.

Through these measures, imports of certain products from New Zealand are allowed in a controlled manner, while sensitive areas are excluded. This exemption does not include dairy products and major agricultural commodities.

This notification dated October 16, issued by the Department of Revenue under Section 25(1) of the Customs Act, 1962, specifies the rates and conditions applicable to the first exemption from customs duty under the India-New Zealand FTA.