India-New Zealand FTA Rules Clarify Origin Status for Third-Country Shipments

India has notified the Customs Tariff (Determination of Origin of Goods under the Free Trade Agreement between India and New Zealand) Rules, 2026. The dossier establishes the conditions goods must meet to qualify for preferential customs duty treatment under the India-New Zealand FTA.

Issued through Notification No. 82/2026-Customs (N.T.) on 12 October 2026, the rules come into force on 20 October 2026.

For businesses trading between India and New Zealand, products must satisfy the applicable origin criteria. Also, importers and exporters must follow proper documentation requirements and consignment conditions to qualify for preferential treatment.

What are the India-New Zealand FTA Rules of Origin 2026?

The Rules of Origin establish whether goods qualify as originating in India or New Zealand for preferential customs duty treatment under the FTA. The Central Board of Indirect Taxes and Customs (CBIC) notified the rules under Section 5(1) of the Customs Tariff Act, 1975.

The rules cover:

1. Origin criteria for wholly obtained and manufactured goods
2. Product-specific rules (PSR) based on the HS 2022 classification
3. Qualifying value content (QVC) calculations and material valuation
4. Bilateral cumulation and allowances for non-originating materials
5. Certificates of Origin and origin declarations
6. Importer obligations and post-importation refund claims
7. Record retention, customs verification, and penalties for non-compliance

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What are the product-specific rules of origin under India-New Zealand FTA?

Annexure A specifies the origin requirements for products based on their HS 2022 classification. Depending on the product, these rules may require:

1. Wholly obtained (WO): The product must be wholly obtained or produced in India or New Zealand.
2. Change in tariff classification (CC, CTH, or CTSH): Non-originating materials must undergo the specified change in HS classification during production.
3. Qualifying value content (QVC): The product must meet a minimum value-content threshold.
4. Specified process: Commodity must undergo a prescribed manufacturing process.

Some products must meet a combination of these requirements, while others may qualify by meeting one of several alternatives.

How is QVC calculated under the India-New Zealand FTA?

QVC measures the qualifying value attributable to a product under the applicable origin rule. Where a PSR prescribes a QVC threshold, Rule 6 permits two calculation methods.

1. Build-down method: The build-down method deducts the value of non-originating materials from the product’s free-on-board (FOB) value.

Formula: QVC = [(FOB value − value of non-originating materials) ÷ FOB value] × 100

2. Build-up method: The build-up method calculates the proportion of the FOB value represented by originating materials.

Formula: QVC = (Value of originating materials ÷ FOB value) × 100

Does the India-New Zealand FTA rules of origin allow bilateral cumulation?

Yes. Rule 5 permits bilateral cumulation between India and New Zealand.

Under this provision, a material that qualifies as originating in one Party may be treated as originating in the other when incorporated into a product there, provided the applicable requirements are satisfied.

For example, a New Zealand manufacturer may use a qualifying Indian-originating component in a finished product. The component may count as originating for the relevant assessment under the cumulation rules.

Cumulation does not automatically confer originating status on every imported input. Businesses must establish the material’s origin and retain supporting documentation.

What is the de minimis rule?

Rule 9 provides limited tolerance for certain non-originating materials that prevent a product from meeting a change-in-tariff-classification requirement.

The applicable limits are:

1. Goods outside HS Chapters 50-63: Relevant non-originating materials must generally not exceed 10 per cent of the product’s FOB value.
2. Goods under HS Chapters 50-63: Relevant non-originating materials must not exceed 10 per cent of the product’s total weight or value.
3. Certain wholly obtained goods: A separate 1 per cent tolerance applies in specified cases involving non-originating materials from other HS chapters.

The de minimis rule does not waive other origin requirements.

Which operations do not confer origin?

Rule 8 identifies operations that are insufficient, either individually or in combination, to establish originating status. These include:

1. Preserving goods for transport or storage
2. Packaging goods or preparing them for transportation or sale
3. Simple sorting, screening, cutting, grinding, bending, or similar operations
4. Affixing or printing labels, marks, logos, and other distinguishing signs
5. Simple dilution, assembly, disassembly, mixing, painting, or polishing
6. Certain textile finishing operations
7. Slaughtering animals, as specified in the rule

The rules require relevant operations carried out in a Party to be considered together when assessing whether processing is insufficient. Consequently, importing goods and merely packaging, labelling, or performing simple assembly in India or New Zealand does not automatically make them originating goods.

Can goods shipped through a third country retain origin?

Yes. Rule 15 allows originating goods to retain their status when transported through a third country, provided the prescribed conditions are met.

Goods must not undergo further production or other operations outside India and New Zealand, except for permitted activities such as unloading, reloading, storage, repacking, specified relabelling, splitting or consolidating loads, and operations necessary to preserve or transport them. The goods must also remain under customs control in the third country.

Under Rule 15(2) and (3), the importer must be able to demonstrate compliance when requested by the importing country’s customs administration. Evidence may include:

1. Customs documents issued by the transit country
2. Bills of lading or airway bills
3. Multimodal or combined transport documents
4. A non-manipulation certificate
5. Other relevant supporting documents requested by customs

For example, an Indian-originating product routed through Singapore to New Zealand may retain its originating status if the transit and customs-control conditions are satisfied.

What proof of origin is required under the India-New Zealand FTA?

Rule 16 recognises two forms of proof of origin:

1. Certificate of Origin issued by an authorised authority
2. Origin declaration completed by an eligible declarant.

A Certificate of Origin must include an authorised signature, an official seal, and the information prescribed in Annexure B. The declaration must include the details specified in Annexure C and a unique identification number.

The documents must also include relevant details such as the exporter, importer, HS code, goods description, shipment, origin criteria, weight, and invoice references.

Can an importer claim a refund after importation?

Yes. Rule 25 permits a post-importation claim where the importer did not claim preferential treatment at importation, but the goods qualified at that time.

The claim must include the required proof of origin, import documentation, and supporting information. The normal deadline is 12 months from importation, subject to any longer period permitted under domestic law.

If an importer discovers that a claim was incorrect, the relevant import documentation must be corrected and additional duties and applicable penalties paid.

How long must origin records be retained?

Rule 23 requires relevant origin records to be retained for at least five years, or longer where domestic law requires.

Exporters, producers, approved exporters, status holders, and issuing authorities must maintain records necessary to demonstrate originating status. Importers must retain records supporting the origin of goods for which preferential treatment was claimed.

Relevant records may include:

1. Bills of materials and supplier declarations
2. Purchase invoices and import documentation for materials
3. Production records and process descriptions
4. Material cost breakdowns and QVC calculations
5. Freight, insurance, and other valuation documents
6. Certificates of Origin or origin declarations
7. Bills of landing, airway bills, and other transport documents

Supporting records may be maintained electronically, digitally, or in writing, provided they remain retrievable and comply with applicable domestic law.

What is the customs verification process for origin claims?

Rule 26 permits customs administrations to verify origin claims at importation or after release. The process may involve requests to an issuing authority, exporter, producer, approved exporter, or status holder. Customs may also seek permission to conduct a verification visit.

Key Customs Verification Timelines under India-New Zealand FTA
Verification action	Timeline
Verification of certificate authenticity	Response within 30 days
Inquiry into a suspected inaccurate origin determination	Response within 60 days, extendable by up to 30 days
Direct information request	Response within 60 days, extendable by up to 30 days
Consent for a verification visit	Preferential treatment may be denied if consent is not obtained within 30 days after the authority receives the request
Written determination following a verification visit	Within six months from the date the visit was conducted
Comments following an adverse written determination	Within 30 days of receipt
Final determination after comments	Within 30 days of receiving the comments or additional information

Customs may require payment of duties or a guarantee while verification is pending. If verification establishes that the goods qualify, preferential treatment must be restored and excess duties refunded, or guarantees released, in accordance with applicable law.

When can preferential treatment be denied or suspended?

Under Rule 27, customs may deny preferential treatment if the goods fail the origin requirements or the available evidence does not establish their originating status. Denial may also follow a failure to provide requested information or supporting documents, non-cooperation with verification, or refusal to consent to a verification visit where required.

Rule 28 permits temporary suspension in specified circumstances involving persistent or deliberate misrepresentation of origin. The rules prescribe consultation and decision-making procedures; the normal suspension period is limited to six months unless another period is agreed.

How should businesses prepare for the India-New Zealand FTA rules of origin?

Exporters and importers should establish a product-level origin compliance process before claiming preferential tariff treatment.

1. Confirm the HS classification: Identify the correct HS 2022 classification and the applicable product-specific rule in Annexure A.
2. Verify origin eligibility: Determine whether the product is wholly obtained or meets the relevant tariff-shift, QVC, or production-process requirements.
3. Verify material sourcing and costs: Collect supplier declarations, invoices, production records, and valuation documents to support origin claims and QVC calculations.
4. Check cumulation and de minimis provisions: Determine whether bilateral cumulation or a permitted tolerance applies to the product.
5. Secure valid proof of origin: Obtain a Certificate of Origin or origin declaration from an eligible party and verify that it contains all required information for the relevant importation.
6. Maintain an audit trail: Retain proof of origin and supporting records for at least five years, or longer if domestic law requires.
7. Prepare for customs verification: Set up procedures to respond to customs information requests and verification visits within the prescribed timelines.
8. Track import declarations and refund deadlines: Document preferential tariff claims correctly and check whether the goods qualify for a post-importation refund within the applicable period.

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