DoR Notifies BCD Exemption on Raw Sugar
Imports under Duty Free Licence TRQ of 10 Lakh MT
Ø IGST of 5 percent is Applicable on the Estimated
Value of Rs. 6000 Crs
Ø DGFT Notification is Silent on Movement from
SEZ/EOU Clearance into DTA Duty Free against TRQ Authorisation
Ø Schedule Basic Duty of 100% Reduced to Zero for
Duty Free Licence TRQ of 10 Lakh MT
·
Issuing
authority: Ministry
of Finance, Department of Revenue.
·
Purpose: Grants full exemption from
basic customs duty for specified imports under a Tariff Rate Quota (TRQ).
·
Commodity: Raw Sugar
·
Tariff
heading: 1701
·
TRQ
quantity: 10,00,000
MT (1 million metric tonnes).
·
TRQ
allocation: The
quota will be allotted to importers by DGFT in accordance with the
relevant procedure under the Handbook of Procedures, 2023.
·
TRQ authorisation: Must contain the importer’s name/address, IEC,
Customs notification number, tariff heading, quantity and validity period.
·
Electronic
processing: DGFT
will issue the TRQ authorisation electronically and
transmit it to the Indian Customs EDI System (ICES). Imports will be
permitted only after electronic debit of the authorised
quantity in ICES.
·
Validity: Effective immediately from 21
August 2026 and valid up to 31 October 2026 (inclusive).
In brief: India has allowed duty-free
import of up to 1 million MT of raw sugar under TRQ, with allocation and
electronic monitoring through DGFT/ICES, until 31 October 2026.
[Notification
No. 30/2026-Customs dated 21 August, 2026]
Seeks to exempt 10 lakh MT of raw sugar
falling under tariff heading 1701 from the whole of the customs duty leviable
thereon under the First Schedule to the Customs Tariff Act, 1975, up to 31st
October, 2026, when imported under the Tariff Rate Quota (TRQ) Scheme (Open
General Licence)
G.S.R.......(E).- In exercise of the
powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52
of 1962), the Central Government, on being satisfied that it is necessary in
the public interest so to do, hereby exempts the goods of the description
specified in column (3) of the Table below, falling under the tariff heading of
the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter
referred to as the ‘Customs Tariff Act’), as specified in the corresponding
entry in column (2) of the said Table, in such quantity of total imports of
such goods, as specified in column (4) below (herein after referred to as the
‘Tariff Rate Quota (TRQ) quantity’), when imported into India, from the whole
of the customs duty leviable thereon under the First Schedule to the Customs
Tariff Act, subject to the condition specified in the Annexure to this
notification, namely: -
|
Table |
|||
|
Sl. No. |
Tariff Heading |
Description of goods |
Tariff Rate Quota (TRQ) quantity |
|
(1) |
(2) |
(3) |
(4) |
|
1. |
1701 |
Raw Sugar |
10,00,000 MT |
Annexure
Condition
(a)
The
TRQ is allotted to the importer by the Directorate General of Foreign Trade, in
accordance with the relevant procedure as specified in the Hand Book of
Procedures, 2023;
(b)
The
TRQ authorization shall contain name and address of the importer,
Importer-Exporter Code (IEC), Customs notification number, tariff heading as
applicable, quantity and validity period of certificate;
(c)
The
TRQ authorization shall be issued electronically by the Directorate General of
Foreign Trade and transmitted to Indian Customs EDI System (ICES); and
(d)
Imports
made against the TRQ shall be allowed only upon debiting electronically in the
ICES system.
2. This notification shall come into force with immediate effect, and
shall remain in force upto and inclusive of the 31st day of October, 2026.
[F. No. CBIC-190354/105/2026-TRU]