Executive Summary

The CBIC has issued a notification granting targeted customs duty concessions on designated imports originating from New Zealand. This notification operationalizes specific bilateral trade commitments, providing Indian importers with reduced tariff barriers on specific commodities, thereby strengthening supply chain ties between the two nations.

Background

India and New Zealand have been actively engaged in bilateral trade negotiations to enhance market access. To honor specific trade understandings and reduce input costs for domestic industries reliant on specific New Zealand commodities (such as agricultural products, timber, or specialized machinery), the CBIC has operationalized concessional tariff rates under Section 25 of the Customs Act.

What Has Changed

Import Tariffs: The revised framework introduces concessional customs duty rates for eligible goods imported from New Zealand, replacing the earlier application of standard Most Favoured Nation (MFN) rates.

Documentation: Imports claiming preferential tariff benefits must be supported by a verified Certificate of Origin issued in accordance with the prescribed requirements.

Key Provisions

• Tariff Reduction: Specifies the exact Harmonized System (HS) codes and the corresponding reduced Basic Customs Duty (BCD) rates for goods imported from New Zealand.

• Rules of Origin: Strict adherence to the Rules of Origin is mandatory. Importers must produce a valid Certificate of Origin to claim the concessional rate.

• Cargo Scope: Applicable to designated goods cleared for home consumption on or after the notification date.

Applicability

• Covered Entities: Indian importers, customs brokers, and supply chain managers sourcing raw materials or finished goods from New Zealand.

Practical Implications

• Procurement Costs: Domestic manufacturers utilizing New Zealand imports will experience an immediate reduction in landed material costs, improving margin profiles.

• Customs Compliance: Importers face strict scrutiny at ICEGATE regarding the authenticity of the Origin certificates, requiring robust supplier coordination.

What Should We Do

• Audit Supply Chains: Supply chain heads should review current import volumes from New Zealand and map them against the newly notified concessional HS codes.

• Update Broker Instructions: Instruct customs brokers to claim the specific notification benefits in the Bill of Entry and ensure original Certificates of Origin are secured prior to cargo arrival.

KGS Perspective

Bilateral tariff concessions offer direct bottom-line benefits but require flawless documentation. Importers must move away from reactive customs clearance and establish proactive supplier agreements to ensure origin certificates are generated accurately at the port of loading.

Conclusion

This customs notification provides a strategic cost advantage for importers dealing with New Zealand, provided they maintain rigorous compliance with origin documentation rules.

Regulatory Reference

• Regulator: Central Board of Indirect Taxes and Customs (CBIC)

• Notification / Circular / Regulatory Reference: Customs Notification on New Zealand Concessions [Dated 17 October 2026]

• Official Document Link: [https://www.cbic.gov.in](https://www.cbic.gov.in)