DGFT Operationalises 10 Lakh MT Raw Sugar TRQ; Applications Open
Till August 28
Ø
Modalities
for the allocation of the 10 Lakh MT Tariff Rate Quota (TRQ) for Raw Sugar:
Ø
Modalities
for one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate
Quota (TRQ) Scheme:
·
TRQ
allocation: DGFT
has prescribed modalities for allocation of the 10 lakh MT Tariff Rate Quota (TRQ) for
import of Raw Sugar.
·
Eligible
applicants:
Applications are invited from sugar
millers and refiners having their own functional capacity to
convert raw sugar into white/refined sugar.
·
Application
period:
Online applications can be filed from 21
August to 28 August 2026 through the DGFT Import Management System → Tariff
Rate Quota (TRQ).
·
Refining
capacity proof:
Applicants must submit a self-declaration
of refining capacity, supported by a Consent to Operate from
the State Pollution Control Board or another document establishing refining
capacity.
·
Misdeclaration: Any misdeclaration may lead to suspension of IEC and penal action
under the FT(D&R) Act, 1992.
·
Priority: Preference will be given to applicants
undertaking to complete imports by 15
October 2026.
·
Allocation
by EFC: The Exim Facilitation Committee (EFC)
will assess applications based on factors including refining capacity, quantity
sought, import history and other relevant considerations.
·
Letter
of Credit/contract: TRQ holders must submit details of Letters of Credit or confirmed contracts
within 15 days of obtaining the TRQ authorisation.
·
Surrender
of quota:
Unutilised quota may be surrendered within 15 days of issue of the TRQ authorisation,
subject to payment of 0.5%
of the CIF value of the surrendered quantity. DGFT may
reallocate surrendered quantities.
·
Non-utilisation: Failure to utilise or surrender the quota
within the prescribed period may result in cancellation/reduction of allocation and restriction from
future TRQ allocations, besides other legal action.
Conditions on
processing and domestic sale
·
Imported
raw sugar must be processed
at the TRQ holder's own facility.
·
For
every 1.05 kg of raw sugar
imported, the holder must produce and sell 1 kg of refined sugar in the domestic
market by 31 October 2026.
·
Raw
sugar must be processed into white/refined sugar within a reasonable period and
sufficiently before 31
October 2026 to enable domestic sale.
·
Failure
to meet the output/domestic-sale obligation may result in payment of applicable Customs duty and
interest.
One-time
conversion of Advance Authorisation into TRQ
·
Holders
of Advance Authorisations
issued under SION E-52 get a one-time option to convert to the TRQ
Scheme for raw sugar actually imported under the AA up to the date of the
relevant notification.
·
The
conversion also covers refined
sugar already produced and sugar yet to be produced from the
eligible imported raw sugar.
·
Conversion
requires payment of the
exempted GST availed at import and compliance with the
domestic-sale condition by 31
October 2026.
Documents
required for AA-to-TRQ conversion
Applicants
must submit:
1.
Copy
of the valid Advance
Authorisation under SION E-52.
2.
Proof
of GST paid
against the quantity proposed for conversion.
3.
Self-certified
statement of raw sugar
imported and refined sugar exported against the AA up to the
notification date.
4.
Self-certified
statement of raw sugar
available for processing, after accounting for quantities
already used in production/export.
·
Application
window for conversion: 21–28 August 2026
through DGFT's Import Management System → TRQ.
·
Monitoring
of domestic sales: TRQ
holders under the conversion scheme must submit GST-invoice-based statements of domestic refined sugar
sales on the 1st and 15th of each month, with the final
statement due on 1
November 2026.
·
Compliance
failure:
Non-compliance or failure to furnish required documents can lead to cancellation of the conversion/TRQ
authorisation and further action under law.
·
DGFT
flexibility: DGFT
reserves the right to amend,
modify, relax or withdraw provisions of the Public Notice in
accordance with the FTP and applicable law.
Key
takeaway: The
scheme provides a 10
lakh
MT raw sugar import TRQ, but links allocation and duty benefits
tightly to domestic
refining capacity, timely import, conversion of 1.05 kg raw sugar into 1 kg
refined sugar, and domestic sale by 31 October 2026. It also
gives existing SION E-52
Advance Authorisation holders a one-time route to shift eligible imported
quantities into the TRQ framework.
[DGFT Public Notice No. 27/2026-2027 dated
20.08.2026]
Subject:
Modalities for Application and Distribution of TRQ for Import of 10 Lakh MT of
Raw Sugar and one-time conversion from Advance Authorisation (AA) Scheme to
Tariff Rate Quota (TRQ) Scheme.
In exercise of powers conferred under
Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2015-2020, the Director
General of Foreign Trade hereby prescribes the modalities for operationalisation of the TRQ Scheme for import of Raw
Sugar notified vide Notification No. --/2026-2027 dated -- August 2026:
Modalities
for the allocation of the 10 Lakh MT Tariff Rate Quota (TRQ) for Raw Sugar:
2. The criteria for eligibility and
Application process are given as under:
i.
Applications
for TRQ are invited online from millers and refiners possessing their own
functional capacity to convert raw sugar into white/refined sugar. The
Application window is from 2 1.08.2026 till 28.08.2026.
ii.
All
applications for grant of TRQ authorisations shall be submitted online through
the DGFT website (https://dgft.gov.in) --> Import Management System -->Tariff
Rate Quota (TRQ)
iii.
Applicants
must submit a self-declaration of refining capacity, along with supporting
evidence of the same in the form of a copy of Consent to Operate issued by the
State Pollution Control Board or any other document evidencing the refining
capacity of the entity.
iv.
The
details given in the applications will be subject to scrutiny, and any
misdeclaration will entail suspension of IEC and would attract penal action
under the Foreign Trade (Development and Regulation) Act, 1992, and the rules
and orders made thereunder.
v.
Preference
in allocation shall be given to the importers who give an undertaking to
complete such import by 15th October 2026.
3. The Exim Facilitation Committee (EFC)
will evaluate applications taking into consideration various factors, inter
alia, the refining capacity of the units and the total quantity requested and
history of imports and such other relevant factors as may be deemed necessary.
4. On allocation of quota,
the TRQ holders shall submit details of Letter(s) of Credit/confirmed contract
to DGFT within 15 days of obtaining the TRQ authorisation.
The submissions are to be made by filing an amendment application against the
TRQ Authorisation.
5. All TRQ holders shall utilise the allocated TRQ quantity for import within the
prescribed period. However, a TRQ holder may surrender any unutilised
quantity within 15 days of the date of issue of the TRQ Authorisation, subject
to payment of an amount equivalent to 0.5% of the CIF value of the surrendered
quantity. Any quantity so surrendered may be reallocated by DGFT.
6. Failure to utilise
or surrender the allocated quantity within the prescribed period shall
constitute non-compliance with the conditions of the TRQ Authorisation and may,
without prejudice to any other action permissible under law, attract action
under the FT(D&R) Act, 1992, and the rules and orders made thereunder,
including cancellation/reduction of the allocation and restriction from future
TRQ allocations.
7. Other Applicable Conditions:
a.
All
imported Raw Sugar must be processed at the TRQ holder's own facility.
b.
For
every 1.05 KG of Raw Sugar covered under the TRQ Authorisation, the TRQ holder
shall produce and sell 1 KG of Refined Sugar in the domestic market by
31.10.2026. Failure to comply with the same shall result in such action as may
be permissible under law, including payment of applicable Customs duty and
interest, as applicable.
c.
The
Raw Sugar imported under the TRQ shall be processed into White/Refined Sugar
within a reasonable period after import and, in any event, sufficiently in
advance to enable its sale in the domestic market by 31October 2026.
Modalities
for one-time conversion from Advance Authorisation (AA) Scheme to Tariff Rate
Quota (TRQ) Scheme:
1.
Advance
Authorisations already issued under SION E52 are given a one-time option for
conversion from the Advance Authorisation Scheme to the TRQ Scheme in respect
of the quantity of Raw Sugar actually imported under such Advance
Authorisations up to the date of this Notification.
This will include refined sugar, already
produced and to be produced out the imported raw sugar available under the
Advance Authorisation.
The conversion is subject to payment of
the exempted GST availed at the time of import, condition that the refined
sugar manufactur ed out of the imported Raw Sugar
shall be sold in the domestic market by 31.10.2026 and such other conditions as
may be prescribed.
2. The AA holders who wish to avail the
option to convert from AA to TRQ scheme shall file a TRQ Application through
the DGFT website (https://dgft.gov.in) ® Import Management System ®Tariff Rate Quota (TRQ). The
Application window is from 21.08.2026 till 28.08.2026.
3. While filing such an application, the
AA holder should submit the following:
a.
A
copy of the valid Advance Authorisation issued for SION E52.
b.
A
copy of the proof of GST paid against the applied quantity of Raw Sugar
proposed for conversion.
c.
A
self-certifi ed statement indicating the quantity and
value of Raw Sugar imported and the quantity and value of Refined Sugar
exported against the relevant Advance Authorisation up to the date of the
Notification, i.e. -- August 2026.
d.
A
self-certified statement indicating the quantity of Raw Sugar available for
processing, after accounting for the quantity already utilised
in production/export wherever applicable.
4. For every 1.05 KG of Raw Sugar
covered under the TRQ Authorisation, the TRQ holder shall produce and sell 1 KG
of Refined Sugar in the domestic market by 31.10.2026 .
Failure to comply with the same shall result in such action as may be
permissible under law, including payment of applicable Customs duty and
interest, as per the provisions governing the Advance Authorisation Scheme,
wherever applicable.
5. A statement of GST invoices
evidencing the domestic sale of Refined Sugar, indicating the quantity of
Refined Sugar sold in the domestic market, shall be submitted by the TRQ
holders under this scheme on or before the 1st and 15th day of the month, with the
final statement to be submitted by 1 November 2026.
6. The refined sugar already produced or
subsequently produced from the eligible imported Raw Sugar shall be sold in the
domestic market within the prescribed period. Failure to comply with the
conditions of conversion or furnish the prescribed documents may result in
cancellation of the conversion/TRQ Authorisation and such further action as may
be permissible under law.
7. DGFT reserves the right to amend,
modify, relax or withdraw any provision of this Public Notice, as may be
considered necessary, subject to the Foreign Trade Policy and applicable law.
(Issued
from File No: 01/89/180/43/AM-26/PC-2(A)/ [E-47338])