Overview: India’s new Rules of Origin for the India-New Zealand Free Trade Agreement (FTA) will take effect on 20 October 2026. Notification No. 82/2026–Customs (N.T.), dated 12th October 2026, sets out the conditions for determining whether goods qualify for preferential customs duty. The Rules cover origin criteria, proof of origin, supporting records, customs verification and claims for preferential treatment. Exporters and importers should review these requirements before relying on the FTA’s tariff benefits.
The India-New Zealand FTA is expected to open new opportunities for Indian exporters. The Government has announced duty-free access to New Zealand for 100% of India’s exports from the agreement’s entry into force, subject to its applicable conditions. Textiles, leather, footwear, engineering goods and processed foods are among the sectors expected to benefit.
The new Customs Rules explain how businesses must establish the origin of goods before claiming preferential duty. A product does not qualify simply because it is exported from India. Businesses must meet the relevant origin criteria and maintain the required documents.
What the New Rules Establish
The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, vide Notification No. 82/2026–Customs (N.T.) on 12 October 2026 has introduced the Customs Tariff (Determination of Origin of Goods under the Free Trade Agreement between India and New Zealand) Rules, 2026.
The Rules come into force on 20th October 2026, the date on which the India-New Zealand FTA will enter into force. They provide the framework for deciding whether goods qualify as originating goods under the agreement and can receive preferential tariff treatment.
Businesses should read the notification alongside the relevant tariff schedule and product-specific origin requirements. The Rules determine eligibility for preferential treatment; they do not, by themselves, guarantee a particular duty saving on every product.
How Goods Qualify for Preferential Duty
The Rules set out different ways in which goods may qualify as originating. The applicable test depends on the product and the relevant provisions.
Goods may qualify if they are wholly obtained or produced in India or New Zealand, the two parties to the FTA. Other goods may also qualify even if they use materials sourced outside India and New Zealand, provided they meet the applicable product-specific origin rule.
These product-specific rules may require a change in tariff classification, a prescribed level of regional value content, a particular production process or another specified condition. The test must be checked against the product’s classification and the relevant provisions in the Rules and their annexures.
The Rules also provide for bilateral cumulation, which allows qualifying materials originating in India or New Zealand to be counted towards meeting the origin requirements under the FTA. They also allow limited use of certain materials from outside these countries, even when those materials do not meet the origin criteria. This is subject to specified limits and conditions. The Rules further identify operations that are too minor to make a product qualify as originating under the agreement.
Packaging, accessories, indirect materials and interchangeable or fungible goods are also covered. These provisions can affect how a business calculates origin or documents its production process.
The key point is that origin eligibility must be established product by product. Businesses should not apply a single percentage or general rule to every item they export.
Key Compliance Requirements Under the Rules
The new framework places practical responsibilities on exporters, producers and importers. The main requirements are summarised below.
Important Origin and Compliance Requirements
| Requirement | What businesses need to know |
|---|---|
| Product-specific origin criteria | Check the applicable rule for each product and its tariff classification. |
| Value content and production evidence | Maintain costing, material and production records wherever the relevant origin test requires. |
| Proof of origin | Support a preferential duty claim with an applicable Certificate of Origin or permitted origin declaration. |
| Authorised self-certification | In India, an eligible status holder may complete an origin declaration under the prescribed conditions. It is not a general facility for every exporter. |
| Validity of proof | The Rules generally provide for a 12-month validity period for a Certificate of Origin or origin declaration, as applicable. |
| Record-keeping | Maintain supporting records for the prescribed period, including the five-year retention requirement under the Rules. |
| Shipment and transit records | Retain relevant transport documents and evidence where required to establish compliance with consignment conditions. |
| Customs verification | Be ready to provide supporting information if the authorities examine an origin claim. |
| Claims after importation | A post-import claim may be possible under the applicable procedure and time limit; it should not be treated as an automatic entitlement. |
Proof of Origin and Supporting Documents
A claim for preferential tariff treatment must be supported by the proof of origin permitted under the Rules. This may be aCertificate of Origin issued by the relevant authority or an origin declaration completed by an eligible person under the prescribed conditions.
The Rules provide for origin declarations by an Indian status holder and, in New Zealand, an approved exporter. They also contain provisions for declarations by an exporter or producer, subject to the stated conditions and review arrangements. Businesses should check the applicable route before preparing their documents.
The proof of origin must contain the prescribed information, be in English and identify the goods and the basis on which they qualify to be originating. The exporter or producer must be able to support the information with relevant records.
The Rules generally require proof of origin to be issued or completed before or at the time of importation. In exceptional circumstances, retrospective issue or completion may be allowed, subject to the prescribed conditions and a maximum period of 12 months after importation.
Businesses should not assume that an invoice or an ordinary declaration will automatically meet the requirements. The document must follow the applicable FTA procedure.
Record-Keeping and Customs Verification
Businesses should retain the documents used to establish origin, including supplier details, purchase invoices, material records, production information, costing calculations and relevant shipping documents. The records should be consistent with the details declared in the proof of origin.
The Rules provide for customs verification of claims. Authorities may seek information or documents to confirm whether goods satisfy the origin conditions. Where a claim cannot be substantiated, preferential treatment may be denied. The Rules also address related consequences and procedures, including the possibility of temporary suspension of preferential treatment in the circumstances specified.
A business should therefore maintain an organised origin file for each product and shipment. It should also ensure that suppliers can provide the information needed to support the origin claim.
Sectors and Businesses That May Benefit
The Government has announced that 100% of India’s exports to New Zealand will receive zero-duty access from the FTA’s entry into force, subject to the agreement’s requirements. Textiles and apparel, leather and footwear, engineering goods, gems and jewellery, and processed foods are among the sectors expected to gain from the wider agreement. Indian manufacturers may also benefit from tariff-free access to specified inputs imported from New Zealand.
These are opportunities created by the wider FTA, not special benefits granted by the new Rules of Origin alone. The applicable tariff treatment and origin criteria must be checked for the product concerned. Other requirements, including product standards, labelling, sanitary and technical rules, may continue to apply.
MSMEs and startups exploring the New Zealand market should assess their products, expected duty savings, supply chains and documentation costs before committing to a new export arrangement. SetIndiaBiz’s coverage of the FTA Utilisation Cell and its role in helping businesses use trade agreements provides further context on the government’s wider effort to improve FTA utilisation.
What Exporters and Importers Should Do Now
Businesses should start preparing before their first shipment under the agreement. The following checklist provides a practical starting point.
Action Checklist for Businesses
| Action | Purpose |
|---|---|
| Confirm the product’s HS classification | Identify the relevant tariff treatment and origin rule. |
| Review the product-specific origin criteria | Establish whether the goods qualify under the FTA. |
| Check materials and production costs | Support the origin test where value content or production requirements apply.. |
| Collect supplier declarations and invoices | Establish the origin and value of materials used. |
| Arrange the correct proof of origin | Use the prescribed Certificate of Origin or an eligible origin declaration. |
| Match origin documents with shipment records | Reduce inconsistencies across invoices, transport documents and customs declarations. |
| Maintain records and an audit trail | Respond to verification requests and support the claim. |
| Check other export and import requirements | Address registrations, customs procedures, product standards and applicable regulatory obligations. |
Businesses that already export to other FTA markets should not assume that their existing origin documentation will be sufficient. Each agreement has its own rules, formats and procedures.
Exporters should also review the relevant registration and trade-documentation requirements. SetIndiaBiz’s guide to the Import Export Code (IEC) registration process provides background on IEC registration. Businesses handling overseas payments should separately review the applicable export and import documentation requirements under FEMA. FEMA compliance and FTA origin compliance are distinct obligations.
What Startups and MSMEs Should Know
The notification does not create a separate exemption from the Rules of Origin for startups or MSMEs. Smaller businesses must meet the applicable criteria just as other exporters do when seeking preferential duty.
However, early preparation can make compliance easier. A startup should identify its target products, confirm their classification, map its suppliers and establish a simple system for retaining invoices, material details, production records and shipping documents. Where a product uses imported inputs, the business should check how those materials are treated under the applicable origin rule.
Businesses should also compare the likely tariff saving with the cost of meeting the origin and documentation requirements. This can help them price products more accurately and avoid relying on a duty benefit that the shipment may not qualify for.
SetIndiaBiz Support
SetIndiaBiz supports businesses with export- and import-related registrations, trade documentation and ongoing regulatory compliance. Our professionals help businesses review relevant requirements, organise supporting records and address applicable business, tax and foreign exchange compliance so that owners can focus on operations and growth.
FAQs
The Rules come into force on 20th October 2026, under Notification No. 82/2026–Customs (N.T.), dated 12 October 2026.
No. Goods must meet the applicable rules of origin and other conditions under the FTA. Exporters and importers should check the relevant product-specific origin rule before claiming preferential duty.
Proof of origin is the prescribed document or declaration used to establish that goods qualify as originating under the agreement. The applicable requirements must be met to claim preferential customs duty.
Businesses must retain the relevant records for the period prescribed under the Rules. They should check the applicable provisions to confirm the retention period and the records required for their role in the transaction.
The India-New Zealand FTA offers wider market-access opportunities for Indian businesses, but preferential duty depends on meeting the agreement’s conditions. The new Rules of Origin, effective from 20th October, 2026, set out how businesses must establish eligibility and support their claims.
Exporters and importers should review the product-specific rules, arrange the correct proof of origin and maintain reliable records before relying on tariff benefits. A product-by-product compliance review is the soundest starting point for using the agreement effectively.
