The India-New Zealand Free Trade Agreement came into force on 20 October 2026. From that date New Zealand has eliminated customs duty on Indian goods across all of its tariff lines, including textiles that previously carried tariffs of up to 10 per cent. For a New Zealand hotel, lodge or distributor that imports linen, the duty line in your landed-cost model has just changed.
What changed on day one
- Duty on Indian-origin goods is now zero across the schedule, with no staging period.
- The agreement was signed on 27 April 2026 and entered into force after both countries completed their approvals.
- Indian suppliers now compete on the same duty footing as suppliers from New Zealand’s other FTA partners.
Zero duty covers customs duty only. GST on imports, freight, insurance and port charges still apply as before.
How to claim the zero duty
The preference is not automatic. The goods must qualify as originating in India under the agreement’s rules of origin, and the claim must be supported by proof of origin. India has notified its origin rules, which took effect on 20 October. They recognise two forms of proof: a Certificate of Origin issued by the designated authority, or an origin declaration completed by an eligible exporter. A proof of origin is valid for 12 months from issue.
In practice, this gives you a short list of things to agree with your Indian mill before the next shipment:
- Which proof of origin the mill will supply with each consignment.
- That the commercial invoice, packing list and bill of lading match the origin document.
- That the product meets the origin rule for its commodity heading.
Your customs broker can confirm how the claim is lodged with New Zealand Customs on arrival.
Update your landed-cost model
- Take your existing landed-cost sheet for Indian-sourced linen.
- Set the duty line to zero for goods that will carry valid proof of origin.
- Keep GST, freight, insurance, port and delivery costs as they are.
- Re-run the comparison with other origins, using each origin’s own current duty position.
Think about timing
Sea freight from India to New Zealand takes longer than to the Gulf, so a first order needs to be planned around your season. Lodges with a winter peak or a summer peak should work backwards from the date they need stock on the shelf, allowing for production, inspection, loading and sea transit.
What to do this week
- Update your landed-cost model with the zero-duty position.
- Ask your current or prospective Indian suppliers for refreshed FOB quotes.
- Confirm their proof-of-origin process.
- Request samples for the lines you plan to order.
- Talk to your customs broker about the claim process.
Putting it together
The agreement lowers the cost of buying Indian hospitality linen and the benefit is largest for buyers who prepare the origin paperwork from the first order. Celeris Exim introduces New Zealand buyers to verified Indian mills at no cost to the buyer and can help you set up the first order.