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India sets kiwi, apples quotas under NZ FTA

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In short

India has implemented kiwi and apple quotas under the New Zealand Free Trade Agreement (FTA), starting with no quota-based apple imports in the first year and gradually increasing to 15,000 tonnes annually for kiwifruit over six years. The honey and albumins categories will also have quotas, with the honey category starting at 40 tonnes and increasing to 200 tonnes annually, and the albumins category starting at 200 tonnes and rising to 3,000 tonnes annually. Quotas will be allocated through certificates specifying the product, quantity, and designated Indian importer, with authorisations valid for the relevant quota year and quantities unused lapsing on expiry.

Key points

  • Quotas for kiwi and apples will be allocated through certificates specifying the product,…: Quotas for kiwi and apples will be allocated through certificates specifying the product, quantity, and designated Indian importer.
  • The authorisations will remain valid only for the relevant quota year, and unused quantit…: The authorisations will remain valid only for the relevant quota year, and unused quantities will lapse on expiry.

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The Directorate General of Foreign Trade (DGFT) notified the quota allocation procedure on Monday, specifying import limits, applicable duties, minimum import prices and shipment windows.

Also Read: India notifies first tariff cuts under New Zealand FTA

The framework aims to regulate imports while protecting domestic farmers.

India will allow no quota-based apple imports in the first year.

The quota is expected to reach 35,000 tonnes in the second year, 37,500 tonnes in the third, 40,000 tonnes in the fourth and 42,500 tonnes in the fifth, before reaching 45,000 tonnes annually from the sixth year.

Apple imports under the quota will attract a 25% duty, provided their cost, insurance and freight (CIF) value is at least $1.25 per kg.

Shipments will be permitted from April 1 to August 31. India currently imposes a 50% import duty on apples.

For kiwifruit, the quota will start at 8,000 tonnes in the second year, rising gradually to 15,000 tonnes annually from the sixth year.

Imports will be duty-free if their CIF value is at least $1.80 per kg. The annual import window will run from April 1 to October 15.

The quota for Manuka honey will be 40 tonnes in the first year and 200 tonnes annually from the second year. The honey must be certified by New Zealand's Ministry for Primary Industries and meet specified CIF value requirements.

Also Read: India-New Zealand FTA to kick in October 20, opening market opportunities for exporters

For albumins, a category of protein products, the quota will rise from 200 tonnes in the first year to 3,000 tonnes annually from the fifth year. These imports will attract an 11% duty and will be permitted throughout the year.

New Zealand will allocate quotas to exporters or producers through certificates specifying the product, quantity and designated Indian importer. Authorisations will remain valid only for the relevant quota year, and unused quantities will lapse on expiry, the DGFT notice said.

Original source: economictimes.indiatimes.com

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