As of 20 October 2026, the New Zealand–India Free Trade Agreement is in force, providing zero-duty entry for qualifying Indian garments that satisfy the agreement’s rules of origin. Consignments entering New Zealand without compliant origin documentation remain subject to the standard 10% duty rate, with import GST of 15% collected on consignments exceeding NZ$1,000. Importers must claim the agreement rate on their official import entry and confirm necessary origin paperwork with their customs broker before shipping.
Reported implementation and trade agreement timeline
The bilateral trade agreement between New Zealand and India has reached the in-force stage following bilateral signature in April 2026 and subsequent ratification by both governments. The agreement entered into force on 20 October 2026. Under the terms of the agreement, New Zealand removes customs tariffs on Indian goods from the date of entry into force, moving eligible apparel imports from the normal 10% duty rate directly to 0%.
On 21 October 2026, several trade publications reported on this implementation. India Business Trade reported that the India-New Zealand FTA comes into force and gives Indian goods zero-duty access. Fibre2Fashion reported that the agreement takes effect and opens duty-free textile access, while Manufacturing Today India reported 100% duty-free access for Indian exporters. In addition, related developments were reported by Telangana Today, Maritime Gateway, and www.nationpathindia.com regarding duty-free access, export opportunities, and the operational start of the agreement.
For garment importers, this reported entry into force means that zero-duty preferences are legally active. However, tariff changes do not apply automatically without procedural compliance. Before any consignment benefits from the 0% rate, the goods must satisfy the specific rules of origin negotiated under the agreement. Importers must formally claim the preferential rate on their New Zealand Customs import entry and present valid proof of Indian origin. If origin documents are missing or non-compliant, Customs applies the standard 10% duty rate. Importers must check with their customs broker to confirm the exact origin document required before dispatching cargo.
Garment duty rates under standard and preferential terms
New Zealand maintains a standard duty rate of 10% on imported garments from India. Under the New Zealand–India Free Trade Agreement, this duty drops to 0% for shipments accompanied by valid proof of Indian origin under the agreement’s rules of origin. This tariff treatment applies across woven and knitted women’s garments across various fibre compositions.
Dresses made from cotton, viscose or rayon, polyester, silk, and linen in woven construction carry a standard rate of 10%, reduced to 0% with proof of Indian origin. Knitted dresses made from cotton, viscose or rayon, and polyester follow the identical tariff structure of 10% standard duty and 0% under the agreement.
Kaftans in woven cotton, viscose or rayon, polyester, silk, and linen, as well as knitted cotton, viscose or rayon, and polyester, are subject to the standard 10% rate or 0% preferential duty. The same treatment applies to kaftans designed with a loose robe or cover-up cut in woven cotton, woven viscose or polyester, and woven silk or linen.
Skirts in woven cotton, viscose or rayon, polyester, silk, and linen, together with knitted cotton, viscose or rayon, and polyester skirts, enter at standard 10% or 0% under the agreement. Scarves and stoles in woven cotton, viscose or rayon, polyester, silk, wool, and linen, as well as knitted cotton and wool scarves, qualify for 0% duty when origin rules are satisfied, compared to 10% standard duty. Woven and knitted tops and blouses in cotton, viscose or rayon, polyester, silk, and linen also share this 10% standard and 0% agreement rate structure.
| Garment Description | Fibre & Construction | Standard Duty Rate | Agreement Rate (With Proof of Origin) |
|---|---|---|---|
| Dresses | Cotton, viscose / rayon, polyester, silk, linen (woven or knitted) | 10% | 0% |
| Kaftans (including loose robe/cover-up cuts) | Cotton, viscose / rayon, polyester, silk, linen (woven or knitted) | 10% | 0% |
| Skirts | Cotton, viscose / rayon, polyester, silk, linen (woven or knitted) | 10% | 0% |
| Scarves and stoles | Cotton, viscose / rayon, polyester, silk, wool, linen (woven or knitted) | 10% | 0% |
| Tops and blouses | Cotton, viscose / rayon, polyester, silk, linen (woven or knitted) | 10% | 0% |
Import GST calculation and customs clearance rules
New Zealand charges an import Goods and Services Tax (GST) of 15% on imported goods. The 15% GST is assessed on the sum of the price paid for the goods, international freight, postage and insurance, plus any applicable import duty. When goods qualify for the 0% agreement rate, no duty is added into the GST assessment base. Conversely, if an importer lacks compliant origin proof, the 10% duty is levied and included in the taxable value upon which the 15% GST is calculated.
New Zealand Customs collects customs duty, levies, and GST only when the value of the consignment exceeds NZ$1,000 (excluding alcohol and tobacco, where collection rules differ). For shipments valued at or below NZ$1,000, these charges are not collected at import entry.
For commercial importers, import GST treatment depends on tax registration. A GST-registered business claims the import GST back as input tax on its domestic GST return, supported by the official Customs import entry or statement. In addition, approved importers may apply to defer payment of import GST under standard customs procedures. Importers should check with their customs broker regarding entry clearance, deferment facilities, and documentation submission.
Check your own garment
Importers evaluating landed costs can review duty rates and import calculations across our online tools:
- New Zealand Garment Duty Calculator
- New Zealand Dress Duty Calculator
- New Zealand Scarf Duty Calculator
We manufacture women’s woven and knitted dresses, kaftans, skirts and scarves, so Talk to us regarding your production and import documentation requirements.
Sources
Indicative information from official sources, written 23 October 2026. Rates verified on against the official tariffs. It is not a customs ruling; confirm with your customs broker before you rely on it.
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