Introduction to the Tariff Rate Quota (TRQ) Scheme for Imports

We'll look for details on a separate subject, namely the Tariff Rate Quota (TRQ) for Imports. Everyone believes they are given TRQs just for the import of agricultural commodities, however that isn't the case. This makes the topic intriguing. LLDPE, LDPE, PVC resins, gold, polypropylene, copper wire, and other materials are included in the most current India-UAE CEPA agreement. Under the TRQ programme, you can import with a reduced duty.

Consequently, we shall comprehend what TRQ is on this page. products protected by various free trade agreements' TRQs? What are the application requirements and other crucial factors? Therefore, let's begin.

1. What is Tariff Rate Quota (TRQ)

The TRQ system allows you to import specific products in a predetermined quantity for either no import duty or a minimal import duty.

As an illustration, up to 8 million articles of apparel and clothing accessories can be imported from Sri Lanka with a 5% tariff. Imports will be subject to the standard 10% tariff whenever they reach 8 million pieces for a given fiscal year.

Therefore, this is a form of import quota for 8 million pieces at a reduced rate of import duty. Because of this, it is known as a Tariff Rate Quota (TRQ).

We will talk about the list of goods that are allowed under different free trade agreements in the next part.

2. Products covered under India-Sri Lanka FTA & other neighboring countries

The products that qualify for the TRQ import plan under trade agreements with Sri Lanka and other neighbouring countries are shown in the image. For a financial year, their quantity is also shown with the product.

3. Import of Items under TRQ under India-Mauritius CECPA

The graphic shows that all of these goods are eligible for importation under the Tariff Rate Quota Scheme (TRQ) established by the India-Mauritius CECPA.

The permitted amounts are for one fiscal year.

Each TRQ for various FTAs comes with a customs notification. You must abide by Ministry of Finance (Department of Revenue) Notification No. 25/2021-Customs pertaining to India-Mauritius CECPA, issued March 31, 2021 (as amended from time to time).

The deadline for applications for allotment in the following fiscal year is February 28 of each year, and applications for TRQ authorisation must be submitted electronically through the DGFT website using a digital signature.

A valid Certificate of Origin certifying that the origin of the products falling under the TRQ is Mauritius and not from any other nation must be provided at the time of import by the Indian importer in order to clear customs.

4. Import of Items under Tariff Rate Quota (TRQ) under India-UAE CEPA

Agriculture-related products are not included in the tariff rate quota given under the India-Dubai CEPA trade agreement.

With the exception of agricultural commodities, you can observe in the graphic that India Dubai CEPA has introduced a lot of new things. For instance, LLDPE, Polypropylene, PVC resins, gold, gold-containing items, copper wire, etc.

In the graphic, we have simply explained which products are eligible, what the import duty is currently, what the duty concession of the TRQ will be, and what the quantity cap is.

The 28th of February of the prior fiscal year is the final date to submit a TRQ application under the India-Dubai CEPA. In other words, the 28th of February 2023 marked the end of the fiscal year 23–24.

TRQ applications must be submitted electronically using a digital signature on the DGFT website.

One crucial aspect of this is that, in order to clear customs, the Indian importer must present the UAE authorities' Certificate of Origin.

5. Import of Items under TRQ of India-Australia ECTA

Pulses, almonds, oranges, mandarins, pears, and extra-long staple cotton are among the items included by the Tariff Rate Quota (TRQ) of the India-Australia trade agreement.

The graphic is self-explanatory and clearly states the quota quantity and rate.

In the TRQ between India and Australia, the Australian government will provide exporters with TRQ certifications, which they will then share with DGFT.

On the DGFT website, Indian importers must additionally submit a TRQ permission application. In this TRQ, there is no deadline for applications.

It is crucial to remember that the India-Australia TRQs run from January 1 to December 31, not according to the financial year.

Additionally, there is no deadline for applications, so you can submit one at any time of the year. However, you will only be given a TRQ if there is still room for more submissions.

Therefore, we will urge you to submit an application on January 1 of every year.

The TRQ authorization granted to the Indian importer will be good for a maximum of 12 months, or until the conclusion of the importation's calendar year, whichever comes first. This indicates that the import clearance procedure must be completed within the validity time.

6. How to apply For CoO under CEPA?

The final query would be where and how to apply.

The shared digital platform for CoO is where applications for CoO under CEPA are to be submitted. It is a required online procedure.

[For more information about Certificate of Origin for Exports, please see this article: CoO DGFT Registration (Certificate of Origin for Exports)]

The application must be submitted to the closest Export Inspection agency or DGFT within 5 days of the export date.

The following list of documents is typically needed:

1. Digital Signature
2. Exports Invoice copy
3. Packing List
4. Bill of Lading
5. Shipping Bill
6. Annexure 3A
7. Manufacturer's Declaration.

Once the application is done the CoO is issued within one to two working days.