A practical guide for SMEs as the FTA enters into force on 20 October 2026.
By Dr Rahul Sen, Strategic Advisor, India New Zealand Chamber of Commerce and Industry (INZCCI), and Trade Economist
Why Rules of Origin matter
The New Zealand–India Free Trade Agreement (FTA) creates new opportunities for exporters, but preferential tariffs are not automatic. To qualify for a lower tariff, goods must meet the relevant Rules of Origin and the importer must have the required proof.
In simple terms, Rules of Origin determine whether a product qualifies as originating in New Zealand or India under the Agreement. Exporters need to understand the specific rule that applies to their product and keep the evidence needed to demonstrate compliance.
Three ways goods can qualify
1. Wholly obtained or produced
Some goods qualify because they are entirely grown, raised, harvested or produced in New Zealand. Examples may include New Zealand-grown apples and kiwifruit, sheep meat from animals raised in New Zealand, raw wool and honey produced from New Zealand hives.
Farm, orchard, production and supplier records can help establish origin. However, origin alone does not guarantee a particular tariff outcome. Exporters must also check whether the product is covered by the FTA and whether a quota, exclusion or other condition applies.
2. Product-specific Rules of Origin
Processed and manufactured goods may need to satisfy a product-specific rule. These rules are set out in the Agreement and its relevant annexes and depend on the product’s Harmonised System (HS) classification. Common approaches include:
- Change in tariff classification: The finished product must meet a specified change in tariff heading or subheading compared with its non-originating inputs.
- Qualifying value content: A specified proportion of the product’s value must meet the Agreement’s requirements. The precise threshold and calculation method depend on the applicable rule.
- Specific production process: The product must undergo a specified manufacturing or processing step in New Zealand or India.
Using imported ingredients or components does not automatically disqualify a product. The finished product must, however, satisfy the rule that applies to it.
3. Bilateral cumulation
The Agreement allows qualifying materials originating in India to count towards the origin of a product made in New Zealand, subject to the Agreement’s conditions.
For example, a New Zealand manufacturer using qualifying Indian-origin components may be able to count those materials when assessing whether its finished product meets the relevant origin rule. Simple packaging, labelling or basic assembly alone will not make a product originating.
A practical checklist for exporters
Step 1: Confirm the product classification
Identify the appropriate HS code for your product and confirm the relevant Indian tariff classification with your importer or customs adviser. Incorrect classification can lead to the wrong tariff or origin rule being applied.
Step 2: Check the tariff and origin rule
Consult the official FTA resources and tariff information to establish whether the product is covered by the Agreement, the tariff rate and when any reduction applies, the product-specific Rule of Origin, and whether a quota or other condition applies. Do not rely on headline tariff figures alone — the outcome depends on the particular product and tariff line.
Step 3: Assemble your supporting evidence
Depending on the product and the applicable rule, useful records may include bills of materials and ingredient or component lists, supplier invoices and origin information for inputs, production and processing records, costing information where a value-content test applies, and shipping and transit documents where relevant. Keep records in an organised form and confirm the applicable record-retention requirements with the relevant authority or adviser.
Step 4: Arrange the required proof of origin
The Agreement provides for proof of origin, including a Certificate of Origin issued by an authorised body and origin declarations by eligible declarants under the applicable arrangements. For New Zealand exporters at the initial implementation stage, follow current New Zealand Customs guidance on the accepted proof-of-origin route. NZTE’s current guidance advises exporters to use a Certificate of Origin issued by an authorised certifying body until the approved-exporter arrangement for this FTA is available. Confirm the latest requirements before shipping.
Step 5: Coordinate with your Indian importer
Speak with your importer well before shipment. Agree on the product classification, the tariff treatment being claimed and the documentation needed for customs clearance. Make sure the importer has the required proof of origin and supporting information when making the claim.
Step 6: Keep transit records when routing through another country
If goods travel through a third country, retain relevant transport documents and check the Agreement’s consignment requirements. Additional evidence may be needed to demonstrate that the conditions for preferential treatment have been met.
Step 7: Be ready to respond to questions
Customs authorities may verify origin claims and request supporting evidence. Keep your records accessible and respond promptly to requests through the appropriate channels.
Practical advice for SMEs
- Start with one product and one importer. Confirm the requirements before expanding to more products.
- Discuss the origin rule and documentation with your buyer early.
- Check the actual tariff line, not just the general FTA tariff headlines.
- Use official resources and qualified customs or trade advisers where the requirements are complex.
- Keep a clear record of the basis on which you claim preferential origin.
How INZCCI can help
The India New Zealand Chamber of Commerce and Industry (INZCCI) aims to help businesses turn trade opportunities into practical next steps.
Through its trade information, business networks and member engagement, INZCCI can help businesses understand where to find relevant FTA information, identify the questions they need to resolve, organise their preparation and connect with appropriate official resources or specialist advisers.
Businesses should verify product-specific tariff treatment, origin requirements and customs procedures with the relevant authorities and qualified advisers before making a preferential tariff claim.
Official resources
- New Zealand–India FTA: MFAT overview
- MFAT: Key outcomes and Rules of Origin information
- NZTE: NZ–India FTA frequently asked questions
Important note: This guide provides general information and is not legal, customs or tax advice. Requirements vary by product and may change as implementation guidance develops. Exporters should check the current official requirements before shipment.